The Indian government has allowed Reliance Communications Ltd. and Tata Teleservices Ltd. to import telecom equipment from two Chinese manufacturers.
A source close to deal revealed, Reliance Communications and Tata Teleservices can now source equipment from China’s ZTE Corp. and Huawei Technologies respectively.
The approval shows that government is now taking the matter at ease. Recently government restricted imports of telecom equipment, particularly from China, because of security concerns. While there was no formal ban, Indian telecom operators stated their growth plans were being affected as the central authorities were rejecting their proposals to import equipment.
The products created by these Chinese companies are in demand as they are cost effective when compared to any other manufactures.
DoT’s guidelines stated that, if violation of security is perceived, equipment must be taken out of service. And in such matters, DoT can impose a penalty of US$ 10.730 million per purchase order and 100% of the contract value on service providers. DoT can also blacklist the equipment vendor.