Reverse Auction Of 4G Services Saves Rs 33.76 Crores To AP Govt

AMARAVATI: The Andhra Pradesh Government saves 33.76 Crore public money in the reverse auction of procurement of 4G SIM cards. Rs.199/- plan per month in the open market is now available for Rs.92.04/- per month for gram volunteers and Village/ward secretariat functionaries.The Government of Andhra Pradesh saved Rs. 33.76 Crore of Public Money in reverse tendering of procurement of 4G SIMs.

The Chief Minister YS Jagan Mohan Reddy led AP government procured 4G SIM cards to distribute among the village/ward secretariat functionaries and Gram volunteers. Rs. 199/- postpaid plan (per month) in open market is now available for Rs.92.04/- per month for gram volunteers and village/ward functionaries, there by saving an amount of Rs.107/- per month.

The Andhra Pradesh Technology Services (APTS) who floated the tenders for procuring 4G SIMs has opened the financial bids on 6th November. Reverse Auction was conducted on 7th November with lowest quoted price as opening price. The L1 price quoted for procurement of 4G SIMs is Rs.121.54 Crore(based on monthly postpaid plan for 3 years. Taking this amount as the opening price, the APTS has conducted reverse auction for the bidders.

After the reverse auction, the successful bidder quoted Rs. 87.77 Crore(based on postpaid plan for 3 years), which is Rs. 33.76 Crore less than the L1 price quoted originally. The quantity of the 4G SIMs procured stands at 2,64,920.

When translated this amount into monthly basis, the postpaid plan is available at Rs.92.04 per month. The plan offers Unlimited free national and local voice calls, 100 free SMSs per day and free data of Minimum 1 GB per day at 4G speed (After 1 GB limit FUP is applicable). In the open market, the same postpaid plan is available at Rs.199/- month.

The savings to Government w.r.t. L1 quote before reverse auction is 27.8%. and the savings to Government w.r.t. Open Market Price is 53.6%.

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