Govt Scraps BSNL, MTNL 4G Upgradation Tenders Worth Crores; Fresh Tenders Likely To Exclude Chinese Firms

The Department of Telecom has decided to issue fresh specifications for the upgradation process.

Photo: AFP

The Department of Telecom (DoT) on Wednesday cancelled 4G upgradation tenders of state-owned Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL).

According to the reports, the central government has decided to issue fresh specifications for the upgradation process. DoT will soon roll out a fresh tender after the six-member committee, that was setup by the telecom department to review the upgradation requirements, submits its report.

It is to be noted that right after violent face-off between Indian and Chinese troops at Galwan valley in June, the Department of Telecom had instructed BSNL not to use Chinese equipment in its up-gradation to 4G network, which is the part of its rehabilitation package. The Department also conveyed to rework the tender in this regard. A similar message was also conveyed to Mahanagar Telephone Nigam Ltd.

The service providers of the state have been asked to change conditions in such a way that Chinese companies are not able to participate in the process of tender. They have been asked to cancel all previous tenders for telecom equipment.

The sources have stated that the government will also direct the private mobile service operators to speedily reduce their dependence on made-in-China equipment.

This comes after a violent face-off broke out between the two countries along the Line of Actual Control (LAC), in which 20 Indian soldiers were killed. The violent clashes led to pan-India protests against China calling for a boycott of Chinese products.

Earlier today, Government of India announced to ban Chinese companies from participating in Indian highway projects, including the joint venture assignments. Union Minister Nitin Gadkari on Wednesday said that India will now stop entertaining Chinese investors in various sectors like Micro, Small and Medium Enterprises (MSMEs).

The minister added that soon a policy with several relaxations will be rolled out which will allow Indian companies to expand their eligibility criteria for participation in highway projects. The government will also release decisions regarding current and future tenders while rebidding would be done if there are any Chinese joint ventures.