Mfrrs seek govt review of Chinese telecom imports including GeM portal

Domestic companies such as Tata Consultancy Services (TCS), Tejas Networks and smaller equipment makers have sought checks from the government on Chinese telecom gear being imported into the country.

Loopholes are enabling critical equipment such as wireless access points, routers, switches, and radio equipment to be imported from China. This also leads to challenges on the national security front. The companies have also called for a review of the GeM portal, through which a lot of Chinese products are being supplied for various orders of PSUs.

The move assumes significance in that even if the government has clear guidelines in place for sourcing equipment from trusted sources, loopholes are enabling critical equipment such as wireless access points, routers, switches, and radio equipment to be imported from China. This also leads to challenges on the national security front.

In a representation to various ministries through their association Voice of Indian Communication Technology Enterprises (VoICE), the companies said the local players including the beneficiaries of the production-linked incentive (PLI) scheme are capable of meeting the demand of such telecom equipments, and despite that there has been a continuous increase in Chinese imports.

Companies such as Cisco, TP-Link, D-Link, Hikvision, Netgear, Hewlett Packard, and Juniper, are the top importers of equipments such as access points, switches, and radio equipments, according to data presented by VoICE. Overall, 40% of the telecom imports of India come from China, the data said.

For example, out of the total traceable imports of Rs 644 crore of access points from January 1, 2020 to April 30, 2023 from China, Cisco’s import was at Rs 394 crore, followed by Ruckus Networks and TP Link at Rs 42 crore each, according to the data.

Similarly, traceable import of switches from China during the period was at Rs 396 crore. Out of that Cisco’s import was at Rs 283 crore, followed by TP Link’s import of Rs 27 crore, Netgear’s Rs 17 crore, Hikvision’s Rs 13 crore, Hewlett Packard and Juniper at Rs 6 crore each. Besides, there has been an import of close to Rs 100 crore during the period of radio equipments from China by various entities, as per the data.

“The analysis suggests that land border policy is not being adhered to strictly. The government will have to put in place a strict control on traders and investigate incorrect descriptions by importers to avoid custom duties,” said Rakesh Bhatnagar, director general of VoICE.

“We understand that the country can not stop importing critical components but these equipments are locally available, and right execution of the current make in India policy can promote Atmanirbharta,” Bhatnagar added.

Besides Tejas and TCS, companies such as Inventum, Infinity Labs, Lekha Wireless, Nivetti Systems, Amantya, Astrome, Priyaraja Electronics, HFCL, STL, C-DOT, among others, are members of VoICE.

The companies, in their note to the government, have also called for a review of the Government e Marketplace (GeM) portal, through which a lot of Chinese products are being supplied for various orders of public sector undertakings (PSUs).

Modus operandi of some of the importers of Chinese equipments is they import through indirect routes – such as other countries, give Indian names to the imported products, and register their company on the GeM portal, from where they get to participate in the government tenders.

“There are no rules in place to get rid of Chinese white label equipment. DoT will also have to notify an updated Public procurement Make in India policy to boost domestic telecom industry,” Bhatnagar said, adding that if the policy is correctly executed across sectors it could increase the countries gross domestic product (GDP) by 1-2%.

As per the policy, the ministries or PSUs have to mandatorily procure supplies from the local players, keeping in view the value addition. Financial Express