Wednesday, December 18, 2013: We recently reported how the government is trying to push domestic manufacturers by making it mandatory for government departments to source a minimum percentage of gear from local manufacturers. This has been done primarily to save on the import bill. However, the local manufacturers are still seething. While the defence was clearly ruled out in the game, it is still hurting Indian hardware-makers who are not able to participate in a large defence telecommunications project that is worth Rs 130 billion. This is because eligibility rules are in favour of multinational network gear-makers.
The project is about building a nationwide, secure communication network for India’s armed forces. The responsibility of the project has been given to Bharat Sanchar Nigam Ltd by the Department of Telecommunications.
According to Indian suppliers, there are certain rules that make it difficult for them to participate in the bid. There are a number of industry lobbies who have written to BSNL, DoT and the Prime Minister’s Office seeking a solution.
Vinod Sharma, chairman of CII’s Committee on ICTE Hardware Manufacturing wrote to BSNL, “The qualification requirements towards domestic companies (including government firms) make them ineligible even to bid.”
According to an ET report, the financial eligibility criterion mandates turnover of between 25 billion and 40 billion during the last three years. On the technical front, companies should have deployed a specified quantum of equipment over a defined period of time.
Besides CII, those who have written to the DoT are the Indian Electronics and Semiconductor Association, the Telecom Equipment Manufacturers Association, Elcina Electronics Industries Association of India and the Telecom System Design & Manufacturers Association.
The industry lobbies have demanded introduction of preferential market access rules, which invited criticism from US industry lobbies recently.
The ‘Network for Spectrum’ project is aimed to be completed by 2015, so the armed forces can vacate the costly telecommunication airwaves that are being used currently.
