CVC questions Air India’s decision to award IBM Rs. 225 crore contract

The Central Vigilance Commission (CVC) and Air India are at loggerheads over the latter’s decision to give Rs 255-crore SAP Enterprise Resource Planning (ERP) implementation contract to IBM for five years.

The CVC sought reply from the airline’s chief vigilance officer and the management over the issue of nominating of IBM and not inviting tenders in 2011. However, the commission is not satisfied by their replies.

Moreover, the commission is also raising questions over the speed by which the airline board vetted the move to nominate IBM and sign the deal to maintain the hardware and software of the airline.

In January 2011, Air India decided to implement ERP for itself and its subsidiary companies and signed an agreement with SAP and IBM.

Arvind Jadhav was the chairman and managing director of the company at the time of signing the contact.

(Image: Indiatimes)