In a significant development, the Auditor General (AG) has raised concerns over the quality of the cable used in the K-Phone project, following previous opposition claims. The AG’s report revealed that the optical part of the cable supplied by a company was entirely imported from China, sparking doubts about the adherence to the ‘Make in India’ criteria.
The consortium partner responsible for the project, L.S. Cable India Pvt Ltd, came under scrutiny as auditors expressed reservations about whether the optical ground wire (OPGW) provided by the company met the ‘Make in India’ standards. The cable was approved by KSITIL, the operator of the K-Phone project, raising questions about the company’s undue assistance in obtaining the contract.
According to the tender requirements, all products procured for the K-Phone project must meet the ‘Make in India’ criteria established by the central government. Approval under this criterion can only be granted if at least 55 percent of the product components are locally manufactured. However, the audit report found that the optical unit, which constitutes 60-70 percent of the cable, was imported from China as L.S. Cable’s factory in Haryana lacks the capability to produce these units. The company’s facility in Haryana only provides aluminum casing for the imported optical units.
Representatives from KSITIL visited the L.S. Cable factory and were convinced by the company’s claims. Nonetheless, the acceptance of documents provided by the cable company by KSITIL raised eyebrows and was criticized by auditors.
Interestingly, there are two companies in India capable of manufacturing such cables, but L.S. Cable has not shown readiness to procure from these local manufacturers. The company has also failed to clarify the circumstances that led to the import of the optical unit from China for the project. The audit report further highlighted that the cable purchased from China’s TGG for a 220 KV KSEB line had previously raised concerns about its quality, as it was six times more expensive than regularly purchased wire.
The AG’s findings have raised serious questions about the adherence to ‘Make in India’ guidelines and the transparency of the procurement process for the K-Phone project.
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