In Short:
The Department of Telecommunications (DoT) has named 36 products, such as routers and ethernet switches, that must have at least 50% local content, with some needing 65%. Stakeholders can give their input until September 27, 2024. These rules apply to all government and state-run purchasing. The government is excluding some imported items from local content calculations to support the Make in India program. Suppliers with over 50% local content (Class-I) will be preferred, while those with 20-50% (Class-II) may be chosen if Class-I suppliers aren’t available. New rules also allow proof of concept (PoC) to replace experience requirements in tenders.
Exciting News for Local Telecom Manufacturing!
The **Department of Telecommunications (DoT)** has just announced a major step forward for local telecom manufacturing by identifying **36 key products**. This includes essential items like **routers**, **ethernet switches**, and **GPON equipment** that will now need to meet new public procurement norms requiring over **50% local content**—and as much as **65% for certain products**.
Stakeholder Engagement
Stakeholders, including telecom operators and manufacturers, have until **September 27, 2024** to share their insights on these new requirements. This is a crucial opportunity to shape the future of telecom procurement in the country.
Expanding the Local Market
These norms will impact all government procurement activities, including those by state-run companies and local bodies as part of central schemes. Noteworthy is the government’s commitment to the **Make in India** initiative, which excludes imported items sourced through local resellers and other associated costs from the local content calculation.
Prioritizing Local Suppliers
In a bid to encourage local manufacturing, suppliers classified as **Class-I**—those with **50% or more local content**—will be prioritized for procurement. **Class-II suppliers**, who offer between **20% to 50% local content**, will only be considered if Class-I suppliers are unavailable. Notably, manufacturers participating in the **Production-Linked Incentive (PLI)** scheme for telecom products will automatically be listed as Class-II suppliers.
Innovating with Indigenous Technologies
Additionally, the **DoT** is promoting indigenous technologies by allowing **proof of concept (PoC)** to be included in tenders and **requests for proposals (RFPs)** as a substitute for past experience. This initiative supports local innovation and paves the way for a robust telecom ecosystem.
It’s an exciting time for the telecom sector as these changes aim not just to bolster local production but also to enhance the overall quality and reliability of telecommunications in the country!
