RailTel is reportedly planning to opt for locally-manufactured equipment while purchasing telecom gear, say news reports. However, while giving preference to local vendors, RailTel will invite foreign vendors to participate in the tenders as well, either directly or through their Indian units.
The gear will reportedly be used by the company to enhance the bandwidth capacity of its fibre optic network in the northern and western parts of the country.
The company’s decision is in line with the government’s preferential purchase policy, which encourages the telecom industry to opt for domestically manufactured telecom equipment.
To ensure the safety and security of the country’s communication systems, the government’s new manufacturing policy mandates operators to buy 30 per cent of their network equipment from companies which have a production unit located within India.
