BSNL scraps 4G tender as govt rethinks use of China equipment

nnnInvestments from China will not be permitted in Micro, Small and Medium Enterprises (MSMES)

Imports from China to be discouraged to focus on becoming self-reliant

Nitin Gadkari, Union minister for road transport and highways

NEWDELHI: The department of telecom (DOT) scrapped a tender for the acquisition of network equipment to upgrade state-run provider BSNL’S 4G services, according to an official who said that a new process will be started after a committee began reviewing the process last month.

The move comes against the backdrop of increased tensions with China following deadly clashes along the Line of Actual

CENTRE HAD EARLIER ASKED BSNL AND MTNL NOT TO USE EQUIPMENT FROM CHINESE MANUFACTURERS

Control in Ladakh on June 15, after which India began reviewing involvement of Chinese companies in crucial areas.

Shortly after, the Centre asked the two state-run telecommunications operators, BSNL and MTNL, not to use equipment from Chinese manufacturers.

The acquisition for components to upgrade BSNL’S network infrastructure was expected to be worth ₹7,000-₹8,000 crore. According to the DOT official the new process may allow only domestic manufacturers, possibly cutting out Chinese majors such as Huawei and ZTE. “However, any decision will only be taken after the comreport is submitted,” said the official.