Centre puts brakes on states' unfair bids for speed limiters

NEW DELHI: Can it be a coincidence that over half a dozen states invite identical tenders for speed governors, devices that limit speed of a vehicle? After instances of similar bid conditions surfaced across states, the transport ministry has asked governments to refrain from putting restrictive conditions while inviting bids for government vehicles and state transport buses. It said limiting this to a few vendors might result in high prices.

The ministry has also said that private vehicle owners could fit any speed governor that had got test certification from government-approved agencies.

In a circular issued last week, the transport ministry said states didn’t require to register, empanel or select vendors for speed governors to be fitted in private vehicles.


Sources said nearly 20 manufacturers of speed governors have got certification from testing agencies.

But tenders floated by Haryana, Gujarat, Karnataka, Bihar and West Bengal have put such criteria that only 2-3 companies can qualify.

Some similar bid conditions specified by these states include minimum annual turnover of Rs 50 crore for three years, minimum of 50,000 units sold in past three years and minimum installed capacity of 25,000 units a month. Officials said after the Centre flagged the issue, a couple of states dropped these conditions.

“Any such restrictive practices, including the imposition of any additional criteria for speed limiting devices manufacturers, would restrict competition, may lead to higher prices, hurt the interest of consumer and raise legitimate concerns regarding unfair trade practices,” the ministry said.