Tejas, TCS, STL, other domestic vendors flag concerns over Chinese telecom imports; seek govt intervention

Out of the total traceable imports of Rs 644 crore of access points from January 1, 2020, to April 30, 2023, from China

Domestic telecom equipment manufacturers have alleged that China-made telecom and networking products, including security-sensitive items, are being imported into the country without adequate checks. They have sought and urged intervention from the Indian government to halt this practice.

Home-bred vendors, through their association Voice of Indian Communication Technology Enterprises (VoICE), have already flagged the issue to various ministries. In its study, VoICE highlighted that 40 percent of India's telecom and networking gear imports come from China.

VoICE, which represents companies like Tejas Networks, Sterlite Technologies Limited, HFCL, and Tata Consultancy Services (TCS), alleged that crore-worth of equipment is being imported from China despite the Indian government's clear “trusted sources” sourcing guidelines.

The body also represents Inventum, Infinity Labs, Lekha Wireless, Nivetti Systems, Amantya, Astrome, Priyaraja Electronics and C-DOT.

Rakesh Bhatnagar, director general of VoICE, told Moneycontrol that various multinational networking and telecom gear vendors use loopholes in the trusted sources regime to import critical equipment such as wireless access points, routers, switches and radio equipment from China.

He said companies mention incorrect descriptions to avoid basic customs duty (BCDs) on these networking products. “...there are instances where China-made products are being imported with “make in India” label and supplied across government PSUs and private networks. This is done by ‘On Paper Manipulation’. We have shared evidence with Government including Finance Ministry, DPIIIT, DOT, concerned Ministries and PSUs but hardly any action is taken against defaulters,” he said.

The domestic vendors, through the body, have also called for a review of the Government e-Marketplace (GeM) portal, through which many Chinese products are supplied for various orders of public sector undertakings (PSUs).

Bhatnagar said that some Chinese equipment is brought into India through indirect channels, such as other countries. The companies are then given Indian names, and they register on the GeM portal, allowing them to participate in government tenders.

Out of the total traceable imports of Rs 644 crore of access points from January 1, 2020, to April 30, 2023, from China, he said, adding that the ongoing practice suggests that land border policy is not being adhered to strictly.

Moneycontrol has reviewed a copy of the VoICE study on Chinese imports.

“Unless strongest action is taken against erring officials as suggested in DPIIT’s Public Procurement (Make in India) Policy, violations will continue,” he said.