DoT Can Now Ban Chinese Telecom Vendors from Government Telecom Tenders

The Department of Telecommunications (DoT) now gains the right to bar Chinese telecom equipment suppliers from participating in the tenders floated by state-run companies, and central and state governments, as per a government notification issued on Wednesday. The government uses telecom gear in railways, smart city missions and projects such as BharatNet, India’s mission to provide internet connectivity to rural areas. The move is a huge setback for Chinese suppliers such as Huawei, ZTE, and UTStarcom, who might be barred from taking part in government projects in the coming years.

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DoT Addresses Government Regarding Chinese Gear Makers Ban

The provision of clause 10(d) of Public Procurement (Preference to Make in India) can now “be invoked in relation to certain telecom items against any foreign government that is deemed unfair to Indian telecom suppliers”, as per a DoT letter addressed to central, state governments and PSUs dated February 19.

The telecom equipment listed in this letter includes optical fibre, 2G/3G/4G/LTE modems, routers, Wi-Fi-based broadband wireless access system and GPON equipment. Though the notification does not exactly mention China, its implications for Chinese firms are clear since the Chinese government clearly doesn’t allow Indian suppliers in telecom and power sectors.

“The Department for Promotion of Industry and Internal Trade has identified DoT as the nodal department for implementing the provisions related to the procurement of goods, services or works related to the telecommunication sector,” the letter said, according to Livemint.

Banning Chinese Gear Makers Will Hurt India Itself