Question : FOCUS ON STRATEGIC AREA



(a) Whether the Government proposes to allow Public Sector to focus on strategic area such as telecom for creating indigenous capacity as the private sector has shown little interest;

(b) If so. the details thereof and the reaction of the Government thereto; and

(c) The steps taken /being taken by the Government in this regard?

Answer given by the minister


THE MINISTER OF HEAVY INDUSTRY AND PUBLIC ENTERPRISES
(SHRI PRAFUL PATEL)

(a) to (c) According to available information the Government has approved National Telecom Policy-2012 (NTP-2012), which inler-alia, has following objectives to promote Telecom Equipment Manufacturing:

# Create a corpus to promote indigenous R&D, IPR creation, entrepreneurship, manufacturing, commercialization and deployment of state-of-the-art telecom products and services during the 12lh five year plan period.

# Promote the ecosystem for design, Research and Development, IPR creation, testing, standardization and manufacturing i.e. complete value chain for domestic production of telecommunication equipment to meet Indian telecom sector demand to the extent of 60% and 80% with a minimum value addition of 45% and 65% by the year 2017 and 2020 respectively.

# Provide preference to domestically manufactured telecommunication products in procurement of those telecommunication products which have security implications for the country and in Government procurement for its own use, consistent with our World Trade Organization (WTO) commitments.

With a view to increasing the share of domestically manufactured electronic products which includes telecom equipment, the Government has laid down the policy for providing preference to domestically manufactured electronic products in Government procurement. In line with above. Department of Telecommunications has notified preferential market access for domestically manufactured telecom products for procurement by Government departments and Government projects on 5th October. 2012.