BSNL is nearing the finalization of a substantial Rs 1,000-crore deal with Nokia for optical transport network (OTN) equipment under its Phase-4 project. The comprehensive agreement encompasses installation, commissioning, and an eight-year annual maintenance contract (AMC). However, the bidding process has stirred controversy, primarily due to the disqualification of domestic vendors, such as United Telecoms Limited (UTL) and Tejas Networks.
Reports from The Economic Times reveal that the disqualification has sparked opposition from an industry body representing Indian telecom equipment manufacturers, alleging that BSNL’s actions contradict the government’s initiative to promote domestically produced telecom gear. UTL, in partnership with the Centre for Development of Telematics (C-DoT), submitted a bid featuring locally developed products. Despite this, BSNL disqualified UTL, citing a lack of ‘trusted source’ approval and failure to provide a bank guarantee, as outlined in the tender terms. The terms specify the supply of network elements only “after approval as a trusted product” from the National Security Council Secretariat (NSCS).
Adding to the complexity, C-DoT, part of the TCS-backed consortium, currently supplies core equipment for BSNL’s ongoing 4G network deployment. Tejas Networks, another domestic vendor, faced scrutiny for submitting a bid nearly 21 percent higher than its counterparts. However, companies falling under the ‘Make in India’ (PMI) framework may be eligible for a price relaxation of up to 20 percent, leading to contentious debates in the selection process.
