DoT Releases New Procurement Guidelines Favouring Local Firms

New Delhi, Oct 25 (KNN) The Department of Telecommunications (DoT) has introduced significant changes to its public procurement policy, positioning domestic manufacturers of 5G technology at the forefront of India's telecommunications future.

The revised guidelines aim to give local companies a competitive edge over international vendors in public sector contracts, particularly in the emerging 5G technology sector, reported ET.

Telecom Secretary Neeraj Mittal emphasised that the policy revision aligns with India's broader ambition to establish itself as a prominent telecom technology provider.

The updated framework ensures preferential treatment for Indian companies demonstrating the capability to manufacture 5G products at scale, reinforcing the government's commitment to domestic sourcing under the Make in India initiative.

The final guidelines address a crucial oversight in the initial draft, which had excluded 5G technology products from a list of 36 items requiring more than 50 percent local content for government procurement eligibility.

This inclusion comes as domestic companies actively test these technologies within Indian borders. The DoT has implemented a dynamic approach through Table-A, a product list subject to regular updates that may incorporate additional 5G items and virtual routers based on demonstrated manufacturing capabilities.

The Indian 5G manufacturing landscape currently features over ten local companies, including prominent names such as Tejas, Lekha Wireless, VVDN, and Galore. Several of these firms are conducting trials using BSNL spectrum, indicating growing domestic technological capabilities.

Under the current policy framework, various telecom equipment categories, including routers, ethernet switches, media gateways, GPON equipment, optical cables, and telecom batteries, must maintain a minimum local content threshold of 50 percent, with certain products requiring 65 percent.

The government has also strengthened Make in India regulations by excluding locally sourced imported goods from resellers in local content calculations, along with overseas royalties, technical charges, and repackaged or refurbished items.

The procurement hierarchy established by DoT prioritises 'Class-I' suppliers, who must demonstrate at least 50 percent local content.

In cases where Class-I suppliers cannot meet demand, 'Class-II' suppliers with a minimum of 20 percent local content become eligible.

Manufacturers participating in the production-linked incentive scheme for telecom and networking products receive Class-II supplier designation for specified items, creating a comprehensive framework to support domestic manufacturing growth.

(KNN Bureau)