SNEA(I)/CHQ/CMD/10/7-11 Dated: 28th July ‘11
CMD , BSNL.
Sub: Repeated procurement and subsequent dumping of redundant equipment - PCMCIA 3 G Data
Cards - Vendor considerations heavily outweigh business interests and market demand.
Wasteful procurement arising out of complete lack of application and commitment towards the Company
and largely guided by vendor interests has been the way BSNL has been living with. Procurements are
being repeatedly made to finally dump the equipment as if money is flowing from charity organizations.
Fundamentally total lack of accountability and complete absence of punitive action in the Company is the
basis of such procurements. And such procurements have been quite a few.
10000 PCMCIA 3G data cards are dumped in circles as most of the laptops/computers do not have the
required PCM CIA slots. These cards are being sold at double value than 3G data cards. No action so far is
initiated by BSNL management to find ways to dispose off this redundant inventory.
In the most indiscreet manner, without assessing market demand, procurements are being made. This is
not the first time that such redundant procurement has been made, in 2008, 1X CDMA data cards were
procured to be only dumped. The officers responsible for such fatal procurements, having no market,
instead of having been sternly acted against, as would normally have happened in any business Company,
would have got outstanding grading and promotions to SAG, HAG and board level, in addition to lucrative
foreign trainings. In any private business enterprise their heads would have been chopped off.
Procurement of obsolete equipment and its then being dumped time and again raises the basic question
of professional integrity of the concerned business heads. This is one crucial area which has remained
unplugged. Wasting public money in such a thoughtless and reckless manner needs a very thorough probe
since extraneous considerations surely play a vital role into the procurement and subsequent dumping of
such obsolete equipment. It is not just the magnitude of investment made into such redundant
procurements that is important, what counts and needs a deeper probe is the way such procurements are
made, ignoring business requirements and market demand and giving utmost consideration to vendor
interests. In BSNL, it is order of the day to procure obsolete equipment and then dump it.
Lack of professional integrity has been one of the key reasons for the present debacle of BSNL. Even
when water is overflowing and the Company is sinking, no efforts whatsoever are being made to fix
accountability for such serious and repeated business lapses which are not merely based on wrong
market perceptions, evaluations and demand but where collusion with vendors is a strong factor. As head
of the Company, thus, fixing accountability and initiating appropriate and stern punitive action to arrest
this tendency assumes great significance. Otherwise, purchase of obsolete equipment and its dumping
just to meet the requirements of the vendor would continue and Company would continue to bleed.
1. Sh. Kapil Sibal, MOC&IT, for kind information & n/a please. In BSNL, there is absolutely no mechanism
of accountability and indiscriminate, indiscreet, and reckless procurements having no market relevance is
the order of the day. Public money is being recklessly squandered away and no one is held accountable.
2. Sh. R. Chandrashekar, Secy/DOT, for kind information & n/a please.
3. Sh. Pradeep kumar, CVC, for immediate n/a please. BSNL needs CVO having an in depth understanding
and expertise of working of telecom and telecom business, not babus to perpetrate babudom.
3-6. Directors, BSNL/Board, for kind information.
7. Sr DDG(V)/DOT for n/a please.
8. CVO/BSNL for n/a please.