Fear of cyber intrusion and control by China has prompted an inter-ministerial panel to recommend a complete ban on overseas sourcing of telecom equipment for all critical networks while supporting 100 per cent domestic sourcing for such projects.
Among the projects identified for complete domestic sourcing are the national optic fibre network, network for spectrum and other defence communication networks, national knowledge network and all communication projects of all utility companies such as the Indian Railways, and oil, gas and power companies.
“Since most of the products are already available in the country or can be developed in the required timelines, it must be ensured that 100 per cent of the requirement of critical equipment for such projects should be domestically manufactured at the earliest,” the panel recommends.
However, to ensure that the preferential access to domestic firms does not violate WTO provisions, the notification—yet to be issued by the Telecom Ministry—specifies that preferential treatment would be given only for projects that have “security implications for the country” and in government purchases “for own use and not with a view to commercial resale or with a view to use in the production of commercial goods for resale”.
Read More : Foreign telecom equipment for critical networks to be banned - Indian Express
“India’s territorial boundaries are adjacent to unfriendly neighbours. If any critical network is built using equipment from hostile countries and the same is shut down for a small time period, the country’s security will be seriously compromised,” says the report on ‘Preference to Domestically Manufactured Electronic & Telecom Goods in Procurement, due to Security Considerations, and in Government Procurement’. “For this very reason, Japan, Taiwan and South Korea, who also are in close geographical proximity to hostile countries, do not allow any critical network to be built using equipment from such countries,” says the July 19 report.
Among the projects identified for complete domestic sourcing are the national optic fibre network, network for spectrum and other defence communication networks, national knowledge network and all communication projects of all utility companies such as the Indian Railways, and oil, gas and power companies.
“Since most of the products are already available in the country or can be developed in the required timelines, it must be ensured that 100 per cent of the requirement of critical equipment for such projects should be domestically manufactured at the earliest,” the panel recommends.
However, to ensure that the preferential access to domestic firms does not violate WTO provisions, the notification—yet to be issued by the Telecom Ministry—specifies that preferential treatment would be given only for projects that have “security implications for the country” and in government purchases “for own use and not with a view to commercial resale or with a view to use in the production of commercial goods for resale”.
Read More : Foreign telecom equipment for critical networks to be banned - Indian Express