DoT makes use of imported components in 25 telecom products eligible for public procurement

By: |
September 02, 2021 5:04 PM

The notification enables companies making telecom products to import components in public procurement projects of Bharatnet, BSNL, Railways etc in compliance with Public Procurement (preference to Make in India) order, 2017.

The move in the short run – if 5G auctions are held next year in March – would help Bharti Airtel and Reliance Jio in lowering their SUC payment. However, a similar gain may not come through Vodafone Idea's way.The move in the short run – if 5G auctions are held next year in March – would help Bharti Airtel and Reliance Jio in lowering their SUC payment. However, a similar gain may not come through Vodafone Idea's way.

The Department of Telecom (DoT) has issued a list of 25 telecom product segments, including satellite phones, broadband equipment, optical fibre cable etc, which will qualify as local products even if they use imported components for domestic manufacturing.

The notification enables companies making telecom products to import components in public procurement projects of Bharatnet, BSNL, Railways etc in compliance with Public Procurement (preference to Make in India) order, 2017.

“…it is hereby clarified that if printed circuit board assembly (PCBA) and testing from imported/domestically manufactured parts and components using surface mount technology process is done in India then imported/domestically manufactured parts and components will be qualified for the purpose of local content,” the notification dated August 31 said.

Foreign vendors Nokia, Ericsson, Cisco etc in the past have demanded that they should be treated at par with domestic telecom gear makers.

“This shall be reviewed when the semiconductor fab (electronic chip plant) in India is operational,” the notification said.

As on date, all electronic and telecom device makers import electronic chips that are used in their product.

Tata Group has shown interest in setting up a semiconductor plant.

The list of 25 telecom products include broadband modem, routers, core network routers, broadband equipment, mobile antennas etc.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Zee Entertainment to merge with Sony Pictures; Punit Goenka to remain MD, fends off ouster attempts
2Net safety: Cyber-capacity building essential for greater cyber-resilience
3Unorganised sector: 1.25 cr workers register on e-Shram portal in 26 days