The Hindu Business Line : DoT objects to security clause for equipment procurement

THE Department of Telecom has expressed reservations against a proposal that would make it necessary for operators to get security clearance before importing equipment or a technology agreement with foreign companies.

The proposal being considered by the Cabinet Committee on Security seeks security scrutiny of foreign technology collaboration and projects from all countries.

DoT has raised the objection on the grounds that such "restrictive" policies will squeeze the inflow of foreign direct investment into the country.

The proposal is part of a guideline for foreign participation in projects in sensitive areas being considered by the CCS.

DoT has said that the proposed guidelines are a retrograde step and may affect genuine technology projects.

A transfer of technology agreement between Indian Telephone Industries and the China-based ZTE Ltd for manufacture of CDMA equipment in the country is awaiting the nod of the Government.

DoT has taken a view that the proposed guidelines can be enforced on public sector units such as Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd and enforcing restrictions on equipment procurement with respect to private telecom service providers may not be possible. This may put the PSUs, which have to face competition from private operators, at a disadvantageous position.

The Department has said that instead of the administrative ministry sending details of the foreign participation to the security agencies, the more practical approach would be that the security agencies keep a track and advise the ministry concerned on the supply of equipment from countries of concern.

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