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TCS Wins Contract for Issuance of Indian Passports

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Tata Consultancy Services (TCS) has won the first ever contract for processing Indian passport applications. This is a big move in terms of outsourcing government work.

TCS will be handling all processing work in the issuance of passports which includes police verification and other procedures. However, printing of passports will continue to be still done by the Ministry of External Affairs (MEA).

The contract size of TCS could be larger than Rs 1,000 crore, considering the volume of applications processed every year.

The MEA processes approximately 80 lakh passport applications a year and it is growing at about 20% each year.

TCS claims to produce passports at about Rs 200 each, which would give them a revenue earning of about Rs 900 crore over the six-year duration of the contract.

Apart from TCS, Spanco Telesystems, Siemens and ILFS were amongst the other bidders for the contract. 3I Infotech, Wipro, Bharat Electronics and Electronics Corporation of India were also reportedly in the race as well.

The MEA contract will not have any revenue-share component. The INR 200 for the transaction will be paid by applicants directly to TCS, which will run the passport centres out of 72 locations in the country.

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