Cycle makers laud Karnataka move

Mohit Khanna

Tribune News Service

Ludhiana, May 20

Following a series of allegations regarding corrupt practices and the resultant drubbing in the Assembly elections, the Congress party has received some accolades after its government in Karnataka tightened the noose around the cycle syndicate.

The Federation of Punjab Small Industries Associations (FOPSIA) congratulated the government of Karnataka for changing its norms for the purchase of bicycles for the upcoming tender of around 5.2 lakh bicycles to be distributed among school students.

Ludhiana Tribune had highlighted how some major cycle companies have formed a syndicate and are making huge profits by selling the same cycle at different prices in separate states.

The free bicycle scheme of Karnataka government for students of government and aided high schools had come under the scanner earlier this year after it came to light that bicycles under similar schemes had been supplied at a much lower price in many other states.

The state government had procured about 5.50 lakh bicycles at a price of Rs 3,650 per bicycle in 2015.

Following the anomaly, the state government made tender conditions rigid for the procurement of bicycles.

Karnataka was procuring per bicycle at the rate of 3,650 whereas Punjab purchased the same cycle at Rs 2,424.

Rajasthan bought the cycle for Rs 2,780 while Gujarat gave Rs 2,489 per bicycle, Himachal Pradesh Rs 2,621 for each bicycle and West Bengal Rs 3,200.

President of the FOPSIA, Badish K Jindal, stated in a communiqué, “The fact is that Punjab, Gujarat and Rajasthan governments gave away tender to smaller companies. In return, these states were offered a low price for similar quality.”

FOPSIA members said they were eagerly waiting for the opening of bicycle tenders so that the small-scale cycle maker could benefit from it.

“A wrong notion has been spread about the small companies. The small cycle manufacturer also make good quality cycles and the states purchase the bicycle only after it fulfills quality norms. For instance, the six major parts should be ISI marked and the weight should not be below 20 kg. So, it’s not true that small companies supply inferior material, a notion marketed by some companies,” said Raj Kumar Singla, general secretary, FOPSIA.

Due to the new norms of Karnataka government, the small companies this time quoted 20 per cent lower price in tenders as compared to bicycle tender procurement conducted in Karnataka last year.

“The slashing of the price to 20 per cent will quantitatively help the state government in saving a huge amount. The government will manage to procure more number of bicycles for the students, “said Singla.