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Reverse Auction Administration in Indian Public Sector Coal Mining, its Effect on the Engineering and Unsustainable Outcomes
Coal mining is facing a number of challenges since last decade. Presently, most of the coal mining companies are compelled to outsource its unit operations at a significant lower price to cater the cost of production. These outsourcing procedures are varying from company to company. The practice of the award of outsourcing contract is mainly through tendering, e-tendering, auctioning, reverse auctioning, e-reverse auctioning, etc. Currently, Indian public sector coal mines are practicing e-reverse auctioning as the process to award outsource job. However, international literatures depict e-reverse auction as biased, one-sided and claimed unsuitable for the buyers (contractors) as it is always a loss for the contractors.
Considering the above, the e-reverse auction procedure for Indian public sector coal mines are reviewed and presented in this paper. The basis of the sample calculations for establishing base price in e-reverse auctioning is evaluated. The observations are made on the safety, health and environment of outsource workers for similar cases. Based on the same, it has been found that the e-reverse auctioning is reducing the price of the bid 20 to 30% of the base price. However, the sustainability of the outsourced organisation in this low price is difficult to cope the same, outsourcing agencies grossly disregards the issues of safety, health and environments. This paper also highlighted the need for the immediate attention of the apex bodies related to the above issues for the sustainable growth of the public sector coal mining industry along with its outsourced organisations.
Reverse Auction Administration in Indian Public Sector Coal Mining, its Effect on the Engineering and Unsustainable Outcomes
Coal mining is facing a number of challenges since last decade. Presently, most of the coal mining companies are compelled to outsource its unit operations at a significant lower price to cater the cost of production. These outsourcing procedures are varying from company to company. The practice of the award of outsourcing contract is mainly through tendering, e-tendering, auctioning, reverse auctioning, e-reverse auctioning, etc. Currently, Indian public sector coal mines are practicing e-reverse auctioning as the process to award outsource job. However, international literatures depict e-reverse auction as biased, one-sided and claimed unsuitable for the buyers (contractors) as it is always a loss for the contractors.
Considering the above, the e-reverse auction procedure for Indian public sector coal mines are reviewed and presented in this paper. The basis of the sample calculations for establishing base price in e-reverse auctioning is evaluated. The observations are made on the safety, health and environment of outsource workers for similar cases. Based on the same, it has been found that the e-reverse auctioning is reducing the price of the bid 20 to 30% of the base price. However, the sustainability of the outsourced organisation in this low price is difficult to cope the same, outsourcing agencies grossly disregards the issues of safety, health and environments. This paper also highlighted the need for the immediate attention of the apex bodies related to the above issues for the sustainable growth of the public sector coal mining industry along with its outsourced organisations.
Reverse Auction Administration in Indian Public Sector Coal Mining, its Effect on the Engineering and Unsustainable Outcomes
J. Inst. Eng. India Ser. D
Dey, Kaushik (Autor:in) / Bhattacharya, Jayanta (Autor:in)
Journal of The Institution of Engineers (India): Series D ; 102 ; 103-111
01.06.2021
9 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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