MSME pump makers decry EESL tender conditions; seek govt intervention

L N Revathy Coimbatore | Updated on January 17, 2018

MSME pump manufacturers in the region have been dealt a blow by conditions laid down by EESL (Energy Efficiency Services Ltd) for participation in the tender for supply of submersible pump-sets.

Highlighting the clauses in the tender, particularly those that limit MSMEs’ participation, K K Rajan, President, The Southern India Engineering Manufacturers’ Association (SIEMA) said “the average annual turnover of the bidder over the last three years should not be less than Rs 50 cr. In case of consortium of two pump manufacturers, the combined annual average turnover of both partners would be considered.”

“To bid as a consortium, the membership is limited to two MSMEs; and to participate along with NSIC, EESL has clarified that a maximum of two MSMEs would only be allowed.”

“Further, MSME units would be eligible for up to 20 per cent of the quantity and contract performance would guarantee up to 20 per cent of the contract value. The minimum supply is 20,000 and the maximum 50,000, with a warranty of five years and a smart control panel,” the SIEMA President explained, adding “such clauses make it appear as if EESL intends to procure pump-sets from three to seven big manufacturers and from MSMEs.”

The association, along with representatives from Codissia and TAPMA, met Kalraj Mishra, Minister for Micro, Small and Medium Enterprises, to voice their grievances and seek his intervention for modification of the said clauses.

The associations have appealed to the minister for removal of the condition based on turnover, a reduction in minimum supply by a manufacturer to 1,000 (from the existing 20,000 pumps), reduction in the contract performance guarantee to 5 per cent of the total contract value and, above all, priority to MSMEs in supplies – in current and future tenders of EESL.

The members further said the smart control panel specified by EESL is not available in the market at present. “EESL has amended the design parameters at least six times so far and it is still not clear. We, therefore, request that the smart control panel be removed and a separate tender floated for it.”

Published on July 16, 2016

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