In a statement on the issue, Bhaskar Ramamurthi of IIT Madras, co-developer of the CorDect system, argued that removal of concessional duty on imported WLL technology would help stem foreign exchange outflow from the country.

Welcoming the government stand of supporting indigenous technology, Ramamurthi said that availability of attractive financial package, including a moratorium on pay-back spread over several years, had been one of the primary reasons driving operators towards imported technology, even where comparable Indian-made equipment was available.

Ramamurthi argued that this would go a long way to ensure a level-playing field for local manufacturers. Driving home the advances made in R&D by the Indian telecommunication industry, Ramamurthi said that the Department ofTelecommunication had recently placed an order for four million lines of large exchanges based on indigenous C-DoT technology at Rs 2,700 per line. "However, the nearest imported switch in the tender was quoting at a 60 per cent higher price," he said. Most basic operators had not considered using C-DoT technology in their networks, Ramamurthi added.

Ramamurthi was of the view that bringing the duty on WLL on par with that of other telecom equipment did not penalise basic operators but ensured a level-playing field for the industry. "It is patently unjust to single out WLL and load indigenous WLL manufacturers with an unfair duty structure," he said. The roll back amounted to doing away with a concession, he added.

As the country was well positioned to meet the technological needs of the industry, there was no case for singling out WLL for giving a special dispensation, Ramamurthi said.

The absence of a level-playing field may sound the death-knell of indigenous technology, he said.

The issue ofindigenously developed CorDect had cropped up after the ministry of finance withdrew the concessions enjoyed by importers of telecom equipment such as WLL, SDH and DLC systems. The decision has come as shot in the arm for several Indian manufacturers.