BSNL tender allegedly breaches domestic preference norm

According to the preferential market access policy, state-owned firms should ensure a percentage of procurement is from domestic firms

At a time when the government is trying to encourage domestic manufacturing of telecom equipment with a preferential market access (PMA) policy, state-owned Bharat Sanchar Nigam Limited (BSNL) has floated a tender for Network for Spectrum keeping aside these norms.

Tejas Networks, which makes optical networking and switching equipment, has sought the department of telecommunications’ (DoT’s) intervention. It has said the tender conditions also do not support  Indian original equipment manufacturers in any form. DoT, it appears, has written to BSNL but is yet to get a reply.

In the PMA policy, the government has said state-owned companies should include a PMA, ensuring a percentage of procurement is for domestically made equipment, while formulating tender conditions for procuring telecom products for government use or in government- funded projects.

In June last year, Tejas told the government it planned to invest Rs 1,769 crore to build and expand capabilities in new-generation technologies such as long-term evolution. It also received a subsidy under the modified special incentive package scheme. Tejas was among 15 companies which received a subsidy from the government under the electronics manufacturing subsidy programme. The government announced this programme in 2012, to attract electronics manufacturing firms to invest in the country. Under the scheme, the government will give up to 25 per cent subsidy on capital expenditure.