PMO Wants Telecom Equipment Import Norms By Month-End.

The Prime Minister's Office has asked the communication and home ministries to ensure that new norms for import of telecom equipment is in place by the month-end.

The original deadline was October-end 2010, and the PMO in a May 20 communication to these ministries, a copy of which was reviewed by ET, has asked them to complete the process by May-end, and ensure no further extension becomes necessary'.

At present, India has two separate policy guidelines for import of telecom gear. Chinese vendors such as Huawei and ZTE follow the July 2010 guidelines while Western gearmakers were given the option of following the policy issued in late 2009, after they refused to operate in India under the July rules.

In August 2010, the PMO had asked the ministries to review the strict security standards unveiled during the previous month (July) after they were being labelled "too tough" by foreign telecom gearmakers.

Western vendors and business lobbies in the US, Europe and Japan have been pressuring India to overturn the July 2010 rules.

The PMO had given both ministries two months to come up with a revised code of standards more aligned to procedures being followed globally, but these are yet to be notified. In the interim period, imports of telecom gear from China resumed after its companies agreed to adhere to the stringent rules.

Telecom department officials say the new rules have been ready since the beginning of this calendar year and have been circulated to all vendors and mobile phone companies for their feedback.

ET had reported in February that India would do away with a clause that made it mandatory for foreign equipment manufacturers to share their source code.

However, the rules may be delayed beyond May-end as the industry has raised concerns about some clauses.

Source : economictimes.indiatimes.com