BSNL, MTNL 4G tenders scrapped, likely to issue fresh ones excluding Chinese companies

New Delhi: Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on Wednesday (July 1) cancelled their 4G up-gradation tenders issued in March 2020.

This decision taken by the two state-owned telecommunications service providers has come after the DoT decided to issue fresh specifications for the up-gradation process.


The statement issued for tender cancellation said: "Tender for planning, engineering, supply, installation, testing, commissioning and annual maintenance of 4G mobile network in North, South, East and West zones of BSNL and Delhi, Mumbai LSA of MTNL on turnkey basis issued on March 23, 2020, is hereby cancelled."

According to officials, a new tender will be issued in the place of the ones scrapped today and the fresh tender is likely to exclude Chinese companies from providing equipment for the up-gradation process.

After a violent face-off between Chinese and Indian troops in Galwan Valley, Ladakh last month, the DoT had asked BSNL and MTNL not to use Chinese equipment in the up-gradation of its 4G network.

With the current tender being cancelled, the DoT may also ask private telecommunication companies not to use equipment made by the Chinese companies. The cancellation of tenders is likely to have a huge impact on companies such as Huawei and ZTE.

Earlier today, Union Minister of Road Transport & Highways Nitin Gadkari said Chinese companies will not be allowed to take part in highway projects including through joint ventures.
In mid-June, the Indian Railways had also cancelled a contract of Rs 471 crore given to Beijing National Railway R & D Institute of Signal for a project on the Eastern Dedicated Freight Corridor.

In addition, India has taken a number of steps to restrict Chinese companies and investments over the last two weeks in the aftermath of the violent clashes between Indian Army and People's Liberation Army (PLA) troops in eastern Ladakh along the Line of Actual Control (LAC).

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