Govt saves Rs 15 crore by re-tendering services

A slew of cost optimisation measures taken up by the state power utilities over the last two years have saved Rs 2,342 crore, the power companies claimed. 
Representational image. (File Photo)
Representational image. (File Photo)

VIJAYAWADA: A slew of cost optimisation measures taken up by the state power utilities over the last two years have saved Rs 2,342 crore, the power companies claimed. The latest in the list of savings is the recent finalisation of tenders related to the SAP (System Application and Products), HANA (High performance analytic appliance) enterprise cloud services, which helped save Rs 15.96 crore by rejecting to renew the agreement made by the earlier government on nomination basis and going for open tenders, the officials said.

In a statement issued on Sunday, APTRANSCO’s joint MD K Venkateswara Rao said, “As part of its endeavour towards cost effective measures, the APTRANSCO has saved around Rs 15.96 crore in finalising SAP and HANA enterprise cloud services for a period of five years. In fact, the APTRANSCO came to an agreement with M/s SAP India five years ago for providing SAP HANA Enterprise cloud services for a period of five years for an amount of Rs 20.22 crore on nomination basis. The APTRANSCO rejected the request of the same company for renewal of their services for further five years and called open tenders for cloud services through AP E-procurement platform on June 26, 2021 to save public money.”

On August 19, 2021, the tenders were finalised for an amount of Rs 3.94 crore for cloud services for five years and Rs 31.22 lakh for one time migration activity, thus saving around Rs 15.96 crore.Energy Secretary Srikant Nagulapalli, who released a special report on reduction of losses, said that the utilities took serious measures to reduce Technical and Commercial (AT and C) losses, which reduced to 10.95 per cent in 2019-20 from 13.79 per cent in 2018-19. “All these measures will help save public money in power sector. The State has now become the best example for cost effective power,” he said.

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