Indian Bicycle Manufacturers Association has urged the Karnataka Government to float a new tender for procurement of about 470,000 bicycles in state for boys & girls studying in 8th standard, belonging to below poverty line for the year 2009-10.
Karnataka state ministry of education through the department of public instructions has floated a tender for the procurement of bicycle as an eye wash totally violating the Central Vigilance Commission, the World Bank Guidelines and the Karnataka Standard Tender Documents for Procurement of Goods & Equipment under the Karnataka Transparency Act has also been grossly violated.
According to IBMA, the stringent terms laid down by the government, which out rightly favors four manufacturers where as there are over 35 quality bicycle manufacturers in the country. Despite committed efforts by the Indian Bicycle Manufacturers Association to apprise the Government of their shortcomings in terms of restrictive terms & conditions which resulted in the Karnataka government paying higher price for the same bicycle compared to other states under the same Bicycle scheme last year, this time too Karnataka government is playing a mute spectator to the recommendation of the IBMA.
As done last year, this time too the procurement has been invited in four schedules and there are precisely four manufacturers who qualify to participate in this tender. Last Year the four Manufacturers had formed a cartel and divided the four packages equally amongst themselves and charged the Government INR 2470 and INR 2390 for boys and girls bicycles while open dealer price of these manufacturers for similar bicycle is less than INR 2000.
One of the bidders Ms Atlas Cycles (Haryana) Limited supplied similar bicycle to government of Rajasthan at INR 2065, INR 400 lower than government of Karnataka. Prices of other states that have open competition are INR 300 to INR 400 lower than Karnataka while specifications of Karnataka tender also have been lowered down in comparison to other states to pass on benefit to cartel members.
Even neighboring state of Tamil Nadu has kept turnover clause of INR 10 crores only for procurement of 5,32,000 bicycles while other states like Rajasthan, Jharkhand, MP are having no such restrictive clauses.
For participation tender has been divided into 4 groups so that all the four pre decided manufactures could qualify and divide quantity amongst themselves but for qualifying in participation in bid, turnover has been fixed total 100 Crores. It is learnt from the previous Bicycle procurement made by the Government of Karnataka that officials of the Department have worked hand in Glove to turn a blind eye to the representation made by the Indian Bicycle Manufacturers Association & other Quality Bicycle manufacturers.
This time too this matter has been brought to the notice of all higher authorities including concerned minister and CM and if no action is taken by the government this time too, it will be well established that the Department of Public Instructions has vested interest in this procurement and has the blessings of higher authorities.
