BHEL adopts Integrity Pact, Signs MoU with TII for increased Transparency in Procurement

In a bid to maintain complete transparency in its major contracts and procurement, Bharat Heavy Electricals Limited (BHEL) has entered into a Memorandum of Understanding (MoU) with Transparency International India (TII).

In the presence of Mr. Jairam Ramesh, Union Minister of State for Commerce and Power, the MoU was signed by Mr. K. Ravi Kumar, Chairman and Managing Director, BHEL and Admiral (Retd.) R.H. Tahiliani, Chairman, TII, at a ceremony, here today. Mr. Pratyush Sinha, Central Vigilance Commissioner and Dr. Satyanarayana Dash, Secretary, Ministry of Heavy Industries and Public Enterprises, graced the occasion. Senior officials of the Ministries of Power and Heavy Industry, Central Vigilance Commission (CVC), BHEL and TII, were also present on the occasion.

BHEL is the largest engineering and manufacturing enterprise in India in the energy-related infrastructure sector. The company conducts its business with a number of domestic and international suppliers of goods and services as per the highest ethical standards. BHEL is committed to fostering the most ethical and corruption-free business environment and values its relationship with all its stakeholders viz., Bidders, Contractors and Vendors and always deals with them in a fair and transparent manner.

Mr. Jairam Ramesh lauded both the organisations for taking this initiative and signing the MoU.

The Integrity Pact is a tool developed by the Berlin-based Transparency International for enhancing the degree of fairness and transparency in procurement and contracts, resulting in substantial improvement in systems and reduction in corruption in public dealings. This model, being followed by several corporates worldwide, binds a company and its suppliers to ethical conduct in contracts and implementation of projects.

Speaking on the occasion, Admiral Tahiliani cited examples from India and abroad as to how the signatories to the Integrity Pact could benefit in financial terms in the long run. He further said that the implementation of the Integrity Pact is observed by Independent External Monitors (IEMs) of impeccable integrity, appointed from a panel approved by the Central Vigilance Commission.

Significantly, the Central Vigilance Commission has recommended the adoption of this Pact by Secretaries to the Government of India and CMDs of PSUs in respect of all major procurement.