'OC tweaked tender to keep small players out’

NEW DELHI: Why did the Commonwealth Games organising committee cancel its original tender for fitness equipment issued almost two months ago?

If the complaint filed by an Indian manufacturer of fitness equipment with the CVC and CBI is anything to go by, then it was allegedly to keep small and medium scale Indian manufacturers of such items out of contention.

The company alleged that the OC cancelled its original tender, and reissued new and tougher conditions that disqualified the firm and several others. The new tender left the field open to very few big contenders.

In the process, the OC also went against the national policy to encourage small industries , claimed the complaint by Physique, a Gurgaon-based firm that makes gymnasium equipment. The company cited a letter from the National Small Industries Corporation (NSIC) Ltd to the OC, saying that the firm, being registered with NSIC, should be exempted from demand for tender cost, security deposit and other benefits.

NSIC said the OC was not extending benefits that were given to small industries as part of government policy.
Physique, in its complaint to both CVC and CBI, said the first tender of OC for gym equipment issued earlier was cancelled without any explanation . The company was the lowest bidder, and the OC carried out an inspection of its premises.

The new tender issued on July 8 included a demand for Rs 12 lakh as earnest money deposit and a turnover of over Rs 5 crore for three years, effectively keeping Physique and other small scale industries out of the competition.
Sports Authority of India, in the meantime, had invited tenders for Jawaharlal Nehru stadium’s gym equipment.

But SAI insisted that the winner had to be someone who had supplied to Olympics, Asiad or Commonwealth Games. “First the OC ensures that we don’t find a place, and then SAI uses OC as an excuse to shut us out,” complained Rajiv Oberoi, the owner of Physique.