According to domestic telecom equipment makers, discouraging global companies from participating in tenders worth below Rs 2 billion would benefit domestic companies. These tenders are often floated in bidding by public sector undertakings (PSUs) under the Minister of Railways, Department of Telecommunications (DoT) and Minister of Power.
Recently, finance minister Nirmala Sitharaman announced that in order to encourage local companies, global tenders below Rs 2 billion would be waived for government supplies as Indian firms often face unfair competition from foreign companies. The move, according to her, would be a step towards a self-reliant India, support Make in India and could help micro, small and medium enterprises increase their business.
However, PHD Chambers of Commerce and Industry said that while the government’s decision might help local electronic equipment companies, tenders worth Rs 2 billion and below in the Indian Railways and DoT are very few.
Meanwhile, other industry experts stated that the demand to procure telecom equipment and hardware from PSUs which ranges from electronic PBX systems, fibre-optic cable, and Wi-Fi routers and modems, often amounts to less than Rs 2 billion. Thus, the move will enable Indian companies to bid for such projects.