BSNL's Rs 1,000-Crore Nokia Deal Raises Controversy Amid Disqualification Of Indian Vendors

Bharat Sanchar Nigam Limited (BSNL) is on the verge of finalising a significant Rs 1,000-crore deal with Nokia for optical transport network (OTN) equipment.

The contract, part of BSNL's Phase-4 project, includes installation, commissioning, and a comprehensive annual maintenance contract (AMC) for eight years.

As per reports by The Economic Times, controversy surrounds the bidding process as domestic vendors, including United Telecoms Limited (UTL) and Tejas Networks, were disqualified.

An industry body, representing Indian telecom equipment makers, has expressed opposition, claiming that BSNL's actions go against the government's vision of promoting India-made telecom gear.

UTL, in collaboration with the Centre for Development of Telematics (C-DoT), submitted a bid offering locally developed products.

Despite this, BSNL disqualified UTL for lacking 'trusted source' approval and not providing a bank guarantee.

The tender terms require the supply of network elements only "after approval as a trusted product" from the National Security Council Secretariat (NSCS).

The controversy intensifies as C-DoT, a part of the TCS-backed consortium, currently supplies core equipment to BSNL's ongoing 4G network deployment.

Tejas Networks also faced scrutiny, submitting a bid nearly 21 per cent higher than its counterparts.

However, Indian companies under the 'Make in India' (PMI) framework can potentially receive a price relaxation of up to 20 per cent, making this a contentious issue in the selection process.