Budget 2020: Domestic telecom gear makers seek Rs 10,000 cr credit facility, purchase preference

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

Press Trust of India January 30, 2020 15:34:50 IST
Budget 2020: Domestic telecom gear makers seek Rs 10,000 cr credit facility, purchase preference
  • 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 percent quota for locally-made telecom equipment to reduce imports

  • 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.

New Delhi: 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 percent 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.

Budget 2020 Domestic telecom gear makers seek Rs 10000 cr credit facility purchase preference

Representative image. Reuters

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 percent of government expenditure, MSMEs should get business worth Rs 50,000 crore under existing policies.

Follow full coverage of Union Budget 2020-21 here

Updated Date:

also read

Union Budget 2023-2024: What are the new income tax slabs and how much tax will you pay?
Business

Union Budget 2023-2024: What are the new income tax slabs and how much tax will you pay?

Finance Minister Nirmala Sitharaman in her Budget 2023 speech announced changes to the tax slabs in the new regime, providing relief to the middle class. She also announced that there would be no tax on an annual income of Rs 7 lakh under this

Budget 2023 | World admires Indian economy as a ‘bright star', economic growth highest among major economies: FM
Opinion

Budget 2023 | World admires Indian economy as a ‘bright star', economic growth highest among major economies: FM

In her budget speech, Finance Minister Nirmala Sitharaman envisioned a prosperous and inclusive India, in which the fruits of development reach all regions and citizens, especially the youth, women, farmers, OBCs, Scheduled Castes and Scheduled Tribes

Budget 2023: Do you know who gave the longest Budget speech? Everything interesting about the annual financial statement
India

Budget 2023: Do you know who gave the longest Budget speech? Everything interesting about the annual financial statement

All eyes are on Finance Minister Nirmala Sitharaman as she presents her fifth Budget in Parliament. She also holds the honour of delivering the longest Budget speech to date — two hours and 42 minutes