The Ministry of Home Affairs has sought information from the DoT on the timeline for implementing a new policy to promote domestic manufacturers of telecom equipment and cut down the country's reliance on imports.

Most of the equipment used in Indian telecom networks at present is imported. The government has expressed apprehensions that imported telecom equipment may contain malware or bugs that will leak sensitive communications data to third parties, which could pose a threat to the nation's security.

To ensure the long-term security of India's telecom network, the MHA has expressed its desire to increase local production of critical components -- both hardware and software -- in the country.

The Department of Telecommunications has indicated that the forthcoming National Telecom Policy 2011 will give preferential treatment to local manufacturers. In this regard, telecom regulator TRAI has already given its recommendations on a proposed Telecom Equipment Manufacturing Policy to the DoT.

The Telecom Regulatory Authority of India (TRAI) has suggested giving preferential treatment to made-in-India products -- besides incentives to telecom operators to source domestically manufactured equipment -- with the objective of ensuring that 80 per cent of India's telecom services network is based on indigenously manufactured equipment by 2020, up from just 3 per cent in the year 2009-10.

While the DoT is still studying TRAI's recommendations, the MHA's views on providing incentives to promote indigenous production have found concurrence within the DoT.

However, when Telecom Minister Kapil Sibal had held discussions on the issue with industry players in the first week of May, telecom operators criticised the need for giving preferential treatment to domestic manufacturers of telecom products.

When contacted on the issue, a senior DoT official said most of the officials in the department were busy responding to various enquiry committees set up by the government on the 2G spectrum scam and hence, a definitive timeline for implementation of the proposed National Telecom Manufacturing Policy could not be committed at this stage.