Bharat Sanchar Nigam Limited (BSNL) has said that it plans to make staggered payments to equipment suppliers, under its 15 million GSM lines contract upon achievement of fixed milestones. Meanwhile, the operator has adopted a reverse auction model to select the vendors.
In a reverse auction, the company that floats the tender fixes the upper limit of the contract and interested parties participate in a series of rounds in which they submit offers lower than the ceiling contract value and those of the previous round until a single party emerges as the lowest bidder.
According to BSNL, this approach will eliminate the non-serious players and also will make it difficult for vendors to form a cartel.
