New Delhi, Apr 21 (KNN) In a move with significant impact on the small and medium enterprises, the power generator NTPC has come out with a new policy that aims at weeding out fraudulent vendors. The move comes in an effort to restrain agencies that are deceptive in their dealings, according to the company.
NTPC’s policy titled – ‘Policy and Procedure for banning of business dealings’ was released last month.
The policy will have considerable bearing on the MSME sector as public sector companies like NTPC are among the biggest buyers of equipment and other items from micro, small and medium enterprises; they are governed under the MSME order of 2012 which makes it mandatory for them to procure at least 20 per cent of their requirements from the MSMEs.
NTPC is the single largest electricity generator in the country, contributing to almost 30 per cent of the country’s generation.
However, of late, owing to some vendors indulging in unprofessional approach at the time of submission of offers in NTPC and a very small value of work attributable to a few such small vendors is holding up larger delivery of projects by NTPC, according to Chairman and Managing Director, Arup Roy Choudhury.
Through the policy, NTPC hopes to send a serious signal to non-performing and frivolous vendors that they cannot make NTPC hostage due to their poor performance and unprofessional bids.
The well-defined policy is expected to weed out such vendors.
According to Chief Vigilance Officer, M R P Rao, NTPC carries out public procurement to the tune of Rs 50,000 crore every year and a pressing need was felt for a unified set of guidelines to be put in place for ensuring transparency, accountability, probity and maintaining integrity in the procurement processes.
The policy will help ensure that non-performing assets are not allowed to take up further works. In the backdrop of this policy, all agencies will strive to improve their performance in their assignments and keep themselves eligible for future business with NTPC.
The policy according to Rao espouses framework for determination, initiation and procedures for withholding or banning business dealings with defaulting agencies and will also act as a deterrent against fraud, corruption and unethical practices.
“NTPC Ltd. deals with Agencies, who are expected to adopt ethics of highest standards and a very high degree of integrity, transparency, commitments and sincerity towards the work undertaken. It is not in the interest of NTPC to deal with any Agency who commits deception, fraud or other misconduct of whatsoever nature in the tendering process and/or execution. NTPC is committed for timely completion of the projects within the awarded value without compromising on quality,” the policy said.
“Since suspension/banning of business dealings involves civil consequences for an Agency concerned it is incumbent that adequate opportunity of hearing is provided and the explanation, if tendered, is considered before passing any order in this regard keeping in view the facts and circumstances of the case,” the NTPC vendor policy added.
NTPC has wide experience in procurement of equipment and items in line with guidelines and procedures of funding agencies like World Bank, Asian Development Bank, OECF, KFW, SFD etc. for international competitive bidding.
NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. It is emerging as an ‘Integrated Power Major’, with a significant presence in the entire value chain of power generation business.
NTPC has ranked 337th in the ‘2012, Forbes Global 2000’ ranking of the World’s biggest companies. With a current generating capacity of 43,019 MW, NTPC plans to become a 128,000 MW company by 2032.
Presently, NTPC generates power from coal and gas. With an installed capacity of 43,019 MW, NTPC is the largest power generating major in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil and gas exploration, power trading and distribution. With an increasing presence in the power value chain, NTPC is well on its way to becoming an “Integrated Power Major.”