Telecom equipment vendors that took part in BSNL’s multi-billion dollar tender for 93 million GSM lines are reported to be affected by the 25 per cent depreciation of the rupee against the dollar.

Telecom equipment vendors that took part in BSNL’s multi-billion dollar tender for 93 million GSM lines are reported to be affected by the 25 per cent depreciation of the rupee against the dollar. The bids were invited in the second week of May 2008, and accepted in early September 2008 when the dollar was around Rs 44. But the dip in the rupee’s value has altered the economics associated with electronic items that account for 30-40 per cent of the value of the equipment to be supplied to BSNL. At least one vendor has reportedly approached BSNL, stating that the currency dip was unprecedented and, hence, a force majeure clause should be invoked. This option offers a way out for a contracted party if unforeseen events beyond its control affect its ability to fulfil the contractual obligations. However, according to BSNL, it had asked for quotes in rupees and dollar parity should not, therefore, be a major issue.