DoT to seek Defence Min nod to sync NFS tender with PMA norms

The Department of Telecom may ask the Defence Ministry o concur with the demand of domestic manufacturers to make BSNL tenders related to defence network compliant with Preferential Market Access Policy.
Industry body TEMA, which represents domestic telecom gear makers, has filed a suit against BSNL tenders, valued at over Rs 4,000 crore, saying that it does not comply with PMA rules which is mandatory for procurement by the government.
"A DoT team working on Network for Spectrum (NFS) has proposed to request Ministry of Defence to concur with domestic manufacturers demand of making BSNL tender in compliance with PMA. Following this BSNL will issue a corrigendum to remove prior experience clause from them," an official source said.

Under PMA, the central government body needs to give preference to product that are either manufactured domestically or over 25 per cent components in the product are indigenously made.
The source said that Navy has agreed to make tenders compliance with PMA but Army has suggested to obtain concurrence of the Defence Ministry.
BSNL is laying out alternate communication network for Defence forces. The DoT and MoD have signed agreement under which defence has agreed to release 5 megahertz of 3G spectrum for telecom service after the alternate communication network is in place.

The MoD has already released 20 Mhz of 3G spectrum which fetched government over 67,500 crore in 2010.

DoT is of the view that 5 Mhz of 3G spectrum can fetch it minium of Rs 5,000 crore.
The Cabinet Committee on Infrastructure in July 2012 cleared Rs 13,334 crore over and above Rs 8000 crore that was already approved by government in December 2009.
The project was to be completed in 3 years but due to various litigations it is likely to get delayed.