HEADLINES
JOBS
COM:PORT
POLICY POLICE
ARCHIVES

Gokak call for more sops to telecom manufacturers

He announced that the DoT has already made recommendations to the ministry of finance to this effect.

T O D A Y

• Spinal discord • IT bonanza for Andhra • Pamper policy • Tetra comes to India

The duty exemption benefits and the option to get credit through the Exim Bank which will result from such a status is expected to give a major boost to indigenous manufacturers in competing with their international counterparts.

Delivering the inaugural address at the seminar organised by the Telecom Equipment Manufacturers' Association of India, Gokak elaborated on two issues vital to the growth of the telecom manufacturing industry - growth of telecom services within the country, and tariffs and other policies of the government.

"The growth of telecom services sector is the key driver for the level of demand on the manufacturing industry. The failure to meet growth targets set in the National Telecom Policy 1994 is the reason for the current woes of the telecom equipment manufacturers," Gokak said.

While assuring the telecom manufacturers that the level of demand for equipment from the DoT would not go down in the coming years, he stressed that incremental demand would have to come from the private basic services operators.

"The one consolation is that the demand for telephones is not restricted to the government alone, and the gap between projected and actual demand has kept increasing from 1992. So the telephone set manufacturers do not have to worry about demand."

On the tariff issue, Gokak cited India's commitment to the World Trade Organisation and the Information Technology Agreement. "Import duties will be reduced to zero per cent by the year 2005, and whatever corrective steps need to be taken before then will be taken," he said.

"In the interest of the consumer, the Indian industry should be forced to become competitive. Time can be given for this to happen and during that time the interests of the manufacturers will have to be protected as well. This factor is taken into consideration while framing all government policies and action plans," he added.

Gokak also announced that under the new policy of the DoT, manufacturers bidding for the switching system tenders would have to quote comprehensive, specific prices in four categories. These would be switches for new exchanges, expanding capacity in old switches (upgrading the old and new capacities), upgrading old capacities and other minor modifications. A vendor rating system is also currently being evaluated by the DoT.

- Compiled from the Indian media

Tell us what you think of this story