PowerGrid telecom network is being used by various government agencies such as the National Informatics Centre (NIC), Intelligence Bureau (IB), and Defence Research and Development Organisation (DRDO) for transmission of critical data and information, as mentioned by the Telecom group in a letter raising doubts over Chinese company.

May 6, 2020

As reported in a leading daily, Delhi-based group that represents homegrown companies has sought cancellation of a purchase order issued to Chinese optic fiber maker Fiberhome for enhancing national telecom backbone and access network by state-run PowerGrid Corporation of India Limited (PGCIL).

In a letter dated April 29, to PGCIL Chairman, a copy of which was also sent to the National Security Advisor (NSA), and Secretaries of Power and Home departments, the Telecom Exports Promotion Council (Tepc) said that telecom equipment coming from China could pose “serious threat” to India’s national security.

Fibrehome is a Wuhan-based producer of fibre optic and had bagged the mega pan-India fibre-based network program worth nearly Rs 3,500 crore by the state-controlled company that aims to offer broadband services and further resell bandwidth to public departments.

The domestic industry group in its letter also alleged that Fiberhome was a Chinese state-run company, spun off in 1999 after the transformation of Wuhan Research Institute of Posts & Telecommunications.

Both PowerGrid and Fiberhome India unit did not respond to e-mailed queries.

Tepc, citing unfair trade practices by Chinese companies and further inclusion of a reciprocal clause by the Department of Telecommunications (DoT) to the public procurement (Make in India) order in February 2020 has asked the state-owned company to wind up the telecom initiative, and invite bids afresh.