Assam: AMSC's New Tender Under Fire for Favoring Larger Companies

The Assam Medical Services Corporation Limited (AMSC), which plays a vital role in procuring medical supplies and equipment for healthcare facilities across the state, is facing growing concerns over its recent procurement practices. The corporation is responsible for issuing tenders to purchase everything from medical devices to hospital equipment, but some recent developments have sparked debate about the transparency and inclusivity of these processes.

It was learned that recently senior officials within the corporation were accused of manipulating the tender system to benefit personally, with several tenders allegedly altered for commission-based kickbacks. One notable case involves the purchase of an MRI machine, where the tender process was reportedly marred by irregularities, leading to concerns about the fairness of the procurement procedures.

Now, the spotlight is on a new tender issued by the corporation for the purchase of refrigerators for blood banks. The tender, referenced as AMSC-EQUIOPRO/27/2024 EQUPPROASNC/4/ECF-478930, was published on November 21, 2024, seeking bids from suppliers for three types of refrigerators needed by blood banks across Assam.

The tender calls for companies to submit their bids by 2 PM on December 11, 2024, with a technical evaluation scheduled for later that day at 4:30 PM. The health department is looking for suppliers who can provide reagent refrigerators, domestic refrigerators, and ice-link refrigerators for various healthcare facilities in the state.

However, the conditions of the tender have raised some concerns, especially regarding the financial eligibility criteria. The tender specifies that only companies with an annual turnover exceeding Rs 20 crore in the past three years will be eligible to apply. This has effectively excluded many smaller businesses and local suppliers from participating in the bidding process.

Despite the tender’s mention of giving priority to MSMEs in accordance with the Micro, Small, and Medium Enterprises Development Act, 2006, the financial eligibility requirement makes it nearly impossible for smaller companies to compete. Many local entrepreneurs feel that the high financial threshold is discouraging for smaller companies that may not have the turnover but are well-equipped to supply the required equipment.

The tender, which includes the procurement of eight blood bank refrigerators, six reagent refrigerators, four domestic refrigerators, and two ice-link refrigerators, is valued at less than Rs 20 lakh in total. Despite this, the turnover requirement seems to favor larger companies, leaving smaller suppliers with limited options.

Local entrepreneurs and industry leaders are up in arms over the exclusionary nature of this tender, pointing out that it undermines the potential growth of the state’s small and medium enterprises. Some have even urged Chief Minister Himanta Biswa Sarma (who is also the Health Minister of the State) to look into the matter, hoping for a more inclusive approach that supports local industries. This stipulation evidently creates a barrier for local MSMEs to participate, contradicting the government’s push for "Make in India" and support for smaller industries.

If Assam is looking to foster economic growth and development, particularly for its small businesses, it is important to ensure that procurement policies are fair, transparent, and inclusive of all businesses, regardless of their size.