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Yet another BSNL tender has run into controversy with the Prime Minister's Office seeking comments from DoT on certain issues brought to its notice pertaining to the grant of 18-million line contract to ITI-Alcatel joint venture under the public sector quota system. In a note to DoT, the PMO has sought responses to a number of allegations, including that the specifications of the tender was repeatedly changed to protect the interests of some foreign firms and that the tender would not be processed in a transparent manner.

The allegations also include that ITI has incurred a loss as a result of the joint venture with Alcatel, as its plants at Mankapur and Rae Bareli were being given only a small portion of the work force. "Alcatel is getting the order on the strength of ITI. For 18 million lines, the value may be in the range of nearly Rs 5,000 crore of which Alcatel's share would be Rs 2,000 crore, even without participating in any tender," said the PMO note dated September 22. The PMO said that there were allegations that several informal instructions have been issued to BSNL from senior levels in the Ministry of Communication.

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