After the implementation of the Trusted Source directive in the telecom sector, telecom companies are facing trouble in installing new equipment. Telecom companies’ plans to install equipment worth thousands of crores have been stuck. Giving more details on this news, Asim Manchanda of CNBC-Awaaz said that
The Trusted Sources Directive has increased the troubles of the companies and the telecom companies are seen in trouble. There is a delay in getting approvals for companies. After 4 months, equipments worth thousands of crores of companies are stuck. Let us tell you that the government has not yet released the list of trusted sources. Companies are also getting delayed in getting certificates from TEC. Notably, this directive came into force on June 15. Under this, the approval of the government is necessary before installing any equipment. Due to the delay in getting approval, the expansion plans of the companies are stuck.
Let us tell you that in order to rein in China’s networking equipment, the government has changed the rules of Telecom License. Through this move of the central government, it will help in controlling the purchase of telecom network equipment coming into the country from China and other non-friendly countries. Under this, the government will declare a list of reliable sources and products for use in the country’s telecom network.
These revised rules have been prepared in line with the guidelines of the National Security Directive. According to the provisions of the Directive, the government will issue a list of reliable sources and products for the installation of equipment for telecom networks in the country. The decision of this list will be based on the approval of the committee constituted under the chairmanship of the National Deputy Security Advisor. The committee will also have members from the concerned departments, ministries, two representatives of industry and independent experts. According to the new rules, now only government approved equipment will be installed after June 15. These equipments will be procured from a reliable source and list of products.
Meanwhile, the government has announced a PLI scheme (Production Linked Incentive) of Rs 12000 crore to promote domestic production of telecom components. Giving information about the decisions taken in the cabinet, Union IT Minister Ravi Shankar Prasad had said that the government expects that the implementation of this scheme in the telecom sector will generate Rs 244200 crore in the next 5 years and Rs 195360 crore from the country. While 40,000 new jobs will be created and the government will get Rs 17,000 crore as tax. Let us tell you that on an annual basis, telecom equipments worth Rs 50,000 crore are imported in the country. The purpose of this decision of the cabinet is to promote small and medium industries in the country and stop this expenditure on imports.
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