SME Times News Bureau | 23 Jul, 2012
State-run defence behemoth Hindustan Aeronautics Ltd (HAL) Saturday told its global vendors to become its partner in progress than remaining mere suppliers.
"Vendors have to go beyond the traditional relationship of being suppliers and become an active partner in our progress to develop the fledgling Indian aerospace industry," HAL chairman R.K. Tyagi said a day-long meeting of 83 vendors, including 26 foreign and 57 Indian.
Calling upon vendors to adhere to the integrity pact they enter into with the company to ensure transparency in contracts, he said the bidders should follow fair practices in all transactions.
"Pre-contract integrity pact is a binding agreement with us for a specific contract in which vendors promise that they will not resort to any corrupt practice," Tyagi asserted.
The company has implemented the pact with vendors for contracts exceeding Rs.20 crore.
The company has also introduced an automated web-based procurement process (e-procurement) from indents to payment, reducing scope for corruption and inefficiency.
Every tender for Rs.1 million and above value has to take the e-route. Efforts are on to reduce the threshold to Rs.500,000.
"Our vendors play a critical role in making the supply chain effective and robust," company director (finance) A.K. Mishra said on the occasion.