India's largest power producer, NTPC, is to centralise its vendor procurement process and has started enlisting its vendors aiming at reducing procurement costs.
On yearly basis, NTPC awards contracts of about Rs 1,600 crore and procures materials for operation & maintenance to the tune of additional Rs 2,000 crore, in addition to the company's expansion projects.
The company said, “Till now, for operational requirement, each of NTPC thermal power stations used to procure through separate tenders resulting in participation largely from local vendors.
It would lead to increased cost of procurement, leading to chances of cartelisation, long procurement times and uncertainties over the procurement period. All these led to substantial increased costs.”
NTPC in order to address this issue, has come up with a decision to expand its vendor base and bring uniformity in procurement at all its plants.
Initially, NTPC will enlist its vendors at all power stations who would be offered the opportunity of supplying at any of NTPC plants and thereby increase its business substantially. Upon enlisting, it will be valid for three years and they will be receive all tender notices of any plants.
On yearly basis, NTPC awards contracts of about Rs 1,600 crore and procures materials for operation & maintenance to the tune of additional Rs 2,000 crore, in addition to the company's expansion projects.
The company said, “Till now, for operational requirement, each of NTPC thermal power stations used to procure through separate tenders resulting in participation largely from local vendors.
It would lead to increased cost of procurement, leading to chances of cartelisation, long procurement times and uncertainties over the procurement period. All these led to substantial increased costs.”
NTPC in order to address this issue, has come up with a decision to expand its vendor base and bring uniformity in procurement at all its plants.
Initially, NTPC will enlist its vendors at all power stations who would be offered the opportunity of supplying at any of NTPC plants and thereby increase its business substantially. Upon enlisting, it will be valid for three years and they will be receive all tender notices of any plants.