HC extends stay on BSNL's GSM contract

Mumbai: The Delhi high court has extended the stay on Bharat Sanchar Nigam Ltd (BSNL) from awarding the contract for its 45 million lines GSM rollout project, till November 30. A bench comprising acting Chief Justice Vijender Jain and Justice Kailash Gambhir gave a week's time for BSNL to file an additional affidavit in the case. The counsel for BSNL has sought additional time to file a revised affidavit in order to respond to some new facts in the affidavit filed by the American telecom giant, Motorola.

BSNL had disqualified Motorola from the bidding process for its GSM contracts on technical parameters and this decision has been challenged by the US company. The court adjourned hearing till November 30.

BSNL in its reply has contended that Motorola was not eligible as it failed to satisfy the techno-commercial aspect of the tender. "The petitioner (Motorola) does not fulfil all the necessary techno-commercial standards prescribed by the tender document," BSNL contented citing the report of the Committee for Evaluation of Tender (CET), comprising experts in the field.

Last month, BSNL, had opened financial bids for the expansion of its GSM network adding over 45 million lines over three years, at an estimated cost of Rs 20,000 crores.

Ericsson had emerged the lowest bidder, followed by Nokia.  Ericsson was due to be awarded 60 per cent of the contract and Nokia the remaining of the 45.5 million lines expansion project.