Union Ministry sheds its fear of Chinese companies, welcomes Huawei Telecommunications to India

By July 15th, 2015 AT 12:22 PM

Union Ministry has given a nod to Huawei Telecommunications’ proposal to set up a unit in Sriperambudur, Tamil Nadu, denoting a welcome to Chinese companies which the Government earlier feared to cause security threat to the nation. Huawei’s proposal was kept pending since 2013. After Prime Minister Narendra Modi’s visit to China, the vision on strategic partnership with China changed.


Sources said that the grounds of security fear from Chinese companies cannot be accepted as the country is using more than 60 percent of equipment either manufactured or imported from China. “The only possible solution against the security threat is to raise proper firewalls and trapdoors to prevent them from attacking,” sources added.

However, Ministry has ensured to keep a few parameters to check for Huawei’s entry. The parameters include the conditions that are part of national security clauses, including the order that the key positions of the company such as Chief Technical Officer, Chief Security Officer etc. to be held by Indians. In case, if the company decided to go against this clause and appoints other nationals in key positions, the clearance from the Union Ministry will be revised again.

Ministry has also asked Department of Telecommunications (DoT) to set up state-of-the-art laboratory and certification facilities for security check of foreign equipment entering the market. DoT has also asked to devise a mechanism for testing and auditing the networks deployed in the country. DoT has been given a time period of one year for setting up the necessary requirements. Department of Industrial Policy and Promotion (DIPP) is also obliged to share the responsibilities of the case.

Huawei’s unit is worth only Rs. 25 crore and is a trial to welcome more companies to enter into Indian market.

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