India Rejected 5G Tender Of China On 1 july 2020

India rejected 5G tender of China 2020

NEW DELHI: In what appears to be a case of retaliation against PLA's attack on the military , the department of telecommunications (DoT) has decided to convey to Bharat Sanchar Nigam Ltd (BSNL) that no Chinese equipment should be used by the state-run company, which is expanding into the 4G business as part of its rehabilitation plan.

The public sector company is being asked to transform its tender immediately, sources told TOI. In addition, the govt is looking to impress upon private sector mobile operators to increasingly reduce their dependence on Chinese equipment.

Political and business circles saw the dual moves as a precursor to keeping Chinese vendors -- led by Huawei -- out of the 5G equipment business within the country, where bids have currently been postponed.

While official sources refused to verify whether the retaliation within the economic sphere could be further escalated, they said that the attack on the Indian Army in Ladakh is sure to strengthen the misgivings within the government about letting the Chinese companies in strategic sectors due to fears that PLA features a decisive stake in a number of these companies.

Concerns over BSNL’s Rs 9,000-crore 4G tender had been raised a couple of months ago with the department for promotion of industry and internal trade asking the public sector player to transform the terms because it was seen to be favouring foreign players and violating the domestic procurement norms. The DoT has now added a China-specific dimension to the difficulty .

The review of the telecommunication system vendors comes along side checks on investments with the govt banning all foreign direct investments from China via the automated route, a choice that was triggered by sensitivities around security.

Last year, the National Security Council Secretariat had initiated a discussion around restricting access to companies and contractors from certain countries in strategic sectors and in certain parts of the country. The proposal was on the backburner for a couple of months but could also be revived given the recent tensions.