Budget 2020: Telecom gear makers seek Rs 10k cr line of credit facility

Domestic telecom gear makers seek a Rs 10,000 crore line of credit facility from the government in the upcoming budget to bring them at par with foreign competitors, according to a wishlist submitted by the telecom committee at PHD Chamber of Commerce and Industry.

The industry body has also demanded up to 75 per cent quota for locally-made telecom equipment to reduce imports.

“Foreign vendors are able to provide their countries export line of credit without sovereign guarantee to Indian telcos. Therefore, even if our prices and equipment are good to buy, we are not able to supply to Indian telecom service providers, as they are always short of funds for procurement. Initially we request a Rs 10,000 crore domestic line of credit facility,” PHDCCI said in its submission to the telecom ministry.

The industry body has suggested the government to impose custom duties on imported 4G and 5G equipment and declare sales under ‘preference to Make in India’ scheme as deemed exports.

The recommendation said that the share of investment in Digital India (Telecom) is approximately Rs 3.2 lakh crore, out of which the approximate funding by the state and central government is about Rs 2.5 lakh crore.

“We request that provisions be made in the budget to ensure that wherever central, quasi or state government funds are used, PMI and preferential market access policy of the DoT, may be implemented in the right earnest to get the maximum impact of this expenditure on GDP growth and GST generation,” PHDCCI recommended.

It said that at 20 per cent of government expenditure, MSMEs should get business worth Rs 50,000 crore under existing policies.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s