The Hindu Business Line : Cable producers for uniform taxation, procurement norms

Hyderabad, Jan. 6 The Cable and Conductor Manufacturers Association of India (CACMAI) has called for uniform practices to be adopted by all States for conductor procurements and taxation procedures.

“Each State follows a particular practice in respect of entry tax, price preference to local industry, quality reservation for local industry, sales tax, VAT. So we are urging the Government to put in place uniform practices across all States,” Mr D.C. Galada, President, CACMAI, said while addressing a press conference here on Tuesday.

He said power utilities should refrain from negotiations after the tenders are opened. “At present, (for) some utilities even after the bids against all India tenders are opened, the prices are negotiated. But we are calling for the lowest price of qualifying bidder should be announced and made public the next day as this will eliminate possible of mal-practices,” Mr Galada added.

Fair price

The association will also be recommending a uniform price for procuring aluminium for small and large conductor manufactures.

“When London Metal Exchange (LME) prices were sky rocketing to $3,000 a tonne, indigenous prices of aluminium ingot were Rs 1,52,750 but now when the prices are at $1,430 a tonne proportionate reduction has not been done by the three primary producers — Nalco, Hindalco and Balco,” Mr Galada said.

He added that the solution will be to announce a linkage between average LME of each fortnight with the Indian price for the next fortnight, which will also contain the transmission and distribution (T&D) costs within the budgeted limits of the Union Government.

Hurdles

Mr Galada said attention will also have to be paid to the problems being faced by the industry such as lowest bidder’s price per km in tender of power utilities as well as against enquiries of EPC contracting companies. “This is resulting in ex-factory price to be below the cost price of conductor and distress sale which reflects on the quality and quantity of conductor contributing negatively to failure of lines and increase in technical losses in T&D lines,” he said.

The solution, CACMAI feels, is to manufacture and supply conductors conforming to standards at fair prices that provide for 7-10 per cent profit after providing for cost on all inputs.

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