Domestic Telecom Gear Maker Sees Rs 10,000 Cr Credit Facility

Domestic telecom gear makers seek a Rs 10,000 crore line of credit facility from the government in the upcoming budget to bring them at par with foreign competitors, according to a wishlist submitted by the telecom committee at PHD Chamber of Commerce and Industry. The industry body has also demanded up to 75 percent quota for locally-made telecom equipment to reduce imports.

“Foreign vendors are able to provide their countries export line of credit without sovereign guarantee to Indian telcos. Therefore, even if our prices and equipment are good to buy, we are not able to supply to Indian telecom service providers, as they are always short of funds for procurement. Initially we request a Rs 10,000 crore domestic line of credit facility,” PHDCCI said in its submission to the telecom ministry. The industry body has suggested the government to impose custom duties on imported 4G and 5G equipment and declare sales under ‘preference to Make in India’ scheme as deemed exports.

The recommendation said that the share of investment in Digital India (Telecom) is approximately Rs 3.2 lakh crore, out of which the approximate funding by the state and central government is about Rs 2.5 lakh crore. “We request that provisions be made in the budget to ensure that wherever central, quasi or state government funds are used, PMI and preferential market access policy of the DoT, may be implemented in the right earnest to get the maximum impact of this expenditure on GDP growth and GST generation,” PHDCCI recommended.

It said that at 20 percent of government expenditure, MSMEs should get business worth Rs 50,000 crore under existing policies.―Devdiscourse