Global telecom vendors likely to meet local value-addition targets

wirelesstelecomgearMonday, September 01, 2014: Telecom department is set to introduce some strict norms to ensure that local value-addition targets are sincerely met by foreign telecom vendors. These norms will help the vendors getting government contracts under the preferential market access (PMA) policy.

Global vendors will have to “declare VA (value-addition) levels under a self-certification system” with “penalties in case of false declarations and incentives for compliance”. An internal government note, noticed by Economic Times, has written this point. Local value-addition will be applicable in imported telecom gear before getting tagged as ‘Made in India’. These VA levels will be supervised by DoT’s technical wing, the Telecom Engineering Centre, and the Standardisation Testing & Quality Certification directorate.

The PMA policy will have a key element – the proposed self-certification system – and it also calls for minimum 30 per cent local sourcing of security sensitive technology products. These products are meant for government contracts including all ministries except defence. Excluding the armed forces, all central ministries and departments, will obtain a “declaration from all procuring agencies within their administrative control” every year. Consultations are going on to finalise the local VA targets for 23 security-sensitive technology products, as revealed by a top DeitY official.

These targets and deadlines will be fixed after an analysis of the global network vendors and how they can handle absence of a mature local manufacturing ecosystem, the official said, on the condition of anonymity. A recommendation was made by the previous government that global vendors should meet 45 per cent target by 2017 and 65 per cent by 2020. But this suggestion was not accepted by trading bodies in the US, Europe and Japan. They have maintained that India’s local manufacturing ecosystem remains virtually non-existent for the main telecom products. This limitation restrains a foreign vendor’s ability too to meet the aggressive VA targets under the PMA policy, as suggested by the previous government.

- Advertisement -
Loading form…

Industry's Buzz

Anoop Kumar Rai Takes Charge as BEL Director (Marketing)

0
Beyond defence applications, Rai has driven BEL’s diversification into civilian infrastructure Bharat Electronics Limited (BEL) has appointed Anoop Kumar Rai as its Director (Marketing), effective...

BEL Appoints Ambrish Tripathi as Director (Human Resources)

0
Tripathi’s appointment comes as BEL continues to expand its capabilities across defence and strategic technologies Bharat Electronics Limited (BEL) has appointed Ambrish Tripathi as Director...

Suzlon Adds 250 MW Torrent Order, Crosses 1.1 GW in FY27 Orders 

0
Suzlon has secured a 250 MW wind energy order from Torrent Green Energy, taking their cumulative partnership to more than 1.3 GW across three...
Chip Making (representational Image)

India to Revise Semiconductor Rules Within Two Months, Says Piyush Goyal 

0
The planned changes aim to simplify approvals and make it easier for semiconductor manufacturers to source equipment and components from global suppliers.  India will amend...

North American EMS Book-to-Bill Ratio Rises to 1.29 in July 2026

0
The Association cautioned that month-to-month movements can be affected by seasonality and short-term volatility The North American electronics manufacturing services (EMS) sector recorded a book-to-bill...

Learn From Leaders

(L-R) Nikesh Gondchawar, Strategic & Technical Advisor – Robotics Manufacturing; Shrikrushna Kakade, Founder Partner; Nikhil Kakade, Senior Technical Advisor – Robotics & Control Systems, SlightGen Solutions LLP

“A Made-In-India Robotic PCB Soldering System That Automates The Through-Hole Soldering Process!” – Shrikrushna...

0
Electronics manufacturing is complex, and automation often comes at a high cost. To bridge this gap and offer a more affordable solution in India,...
Navdeep Narula, Executive Director, Client and Endpoint Solutions, Ingram Micro, India

“Enterprise Computing Is Shifting From CPU to GPU And Now Toward NPU-Based Systems ”...

0
The shift from CPU to GPU to NPU-based computing is redefining today’s enterprise endpoints. In an exclusive conversation, Navdeep Narula from Ingram Micro discusses...

India’s Robotics Push Opens New Hardware Opportunities

0
How do you build India’s physical AI future when critical robot components still come from overseas? Niqo Robotics reveals where the gaps remain.  India’s push...
Gadhadar Reddy, CEO and Founder, NoPo Nanotechnologies

How A Material Thinner Than Human Hair Could Transform EV Batteries And Electronics –...

0
What if a material 200,000 times thinner than a human hair could transform EV batteries, semiconductors, and advanced electronics? NoPo Nanotechnologies is making that...
Raja Rajeev Kumar, Mentor at IIT Startups, Chairman of the Board of Trustees, LaxmiRamaVarma Holdings International, and Founder and CEO, ChromoSoul Ventures

“Build Strong Startups, and Funding Will Follow”- Raja Rajeev Kumar, IIT Startups, LaxmiRamaVarma Holdings...

0
While AI and software startups attract attention and capital, electronics ventures often struggle for both. Raja Rajeev Kumar from IIT Startups, LaxmiRamaVarma Holdings International...

Startups

(L to R) C2i Semiconductors Founders—Vikram Gakhar, Founder & Director, Mixed Signal; Preetam Tadeparthy, Founder, CTO, VP, Engineering; Ram Anant, Founder & CEO; B.S. Dattatreya, Founder & Director, Power

Bengaluru Startup Targets AI Data Centre Power Delivery

0
C2i is building power systems that can help AI servers use electricity more efficiently and reliably. Two friends, Ram Anant and Preetam Tadeparthy, were working...
Akshar Vastarpara, Founder and CEO, Vicharak

“Our SBCs Are Designed As Complete Edge-Computing Platforms That Combine Everything On A Single...

0
An Indian startup builds affordable edge AI boards for robots, drones, and industry, positioning them as Raspberry Pi alternatives. In an EFY interview with...
(L-R) Sri Kusulu Devalla, Co-Founder and Hetendra Singh Rathore, Founder, Segritech

“We don’t just sort fruit; we match every quality grade with the right buyer.”...

0
An agritech startup has developed an AI-powered machine that sorts and grades fruits directly on farms, helping reduce post-harvest losses by connecting produce with...
Dr Naveen Yanduru, CEO, Axiro Semiconductor Private Limited

“India Can Lead In IP—If It BacksIts Own Builders”

0
Axiro Semiconductor designs RF and satellite chips, ships millions worldwide, and retains its startup mindset while tackling complex technical challenges. In a conversation with...
Dr Sanjay Ahuja, Founder and CEO of Cionlabs, India

“We are solving India-specific challenges rather than offering generic ‘black box’ IoT solutions.”

0
From hybrid mesh networking to AI-enabled edge devices, an Indian IoT startup is developing home-grown solutions to improve connectivity, strengthen privacy and support the...