PMA Policy

Modified by telecom on 05.08.2016

Ministry of Communications and Information Technology
Department of Telecommunications

5th October,2012

Notification

Subject: Policy for Preference to domestically manufactured telecom productsin procurement due to security considerations and in Government procurement - Notifying Telecom Products for Government Procurement in furtherance of the Policy.
No. 18-0712010-lP:

Department of Information Technology (DlT) has issued a Notification No. 8(78)/2010-IPHW dated lOth February,2012 for providing preference to domestically manufactured electronic products as a part of procurement process for the electronic products that have security implications for the country, and are to be utilized in Government own use while ensuring that no commercial resale isinvolved. As per the notification, telecom products which are procured across sectors would be notified by the Department of Telecommunications (DoT).

2. In furtherance of the Policy notified vide reference cited above, theDepartment of Telecommunications has, accordingly, laid down the following policy for providing preference to domestically manufactured telecom products inGovernment procurement for its own use and not with a view to commercial resale or with a view to use in the production of goods for commercial sale and the policy shall come into force from the date of its publication in the Gazette of India and shall be in force for a period of ten years thereafter.

3.lt is hereby notified that each Ministry or Department will procure minimum percentage of their telecom product requirement fulfilling minimum value additionprescribed against each item. For all the Ministries or Departments (except theMinistry of Defence) of Government and the agencies under their administrativecontrol and for all Government funded telecom projects (e.9. NFS and projectsfunded by USOF like NOFN etc.), the list of telecom products indicating preferential market access and criteria to qualify as domestically manufactured product year-wise is given in Table-A.

4.The Preferential Market Access (PMA) and Value Addition (VA) indicatedagainst each year are minimum and efforts should be made by domestic manufacturers to achieve higher value addition" The formula for calculation of value addition for telecom products shall also be as notified by Department of Electronics and Information Technology from time to time. All the telecom products which do not meet the minimum value addition criterion for that year shall be treated as importedtelecom products and dealt accordingly.

5.Based on the availability of domestic products, the list of products as well asvalue addition for each product would be reviewed and notified by the Department of Telecommunications on periodic basis.

TABLE-A

SI. No. Telecom equipment Description Year 2012-13 & 2013-14 Subject to Periodic Review based on new industry inputs/developments)
Year 2014-15 Year 2015-16 Year 2016-17 Year 2017-18
PMA VA PMA VA PMA VA PMA VA PMA VA
1 Encryption/UTM platforms (TDM and IP) 100 45 100 50 100 55 100 60 100 65
2 Core/Edge/Enterprise routers 50 35 60 40 70 45 80 50 80 55
3 Managed Leased line Network equipment 75 35 100 40 100 45 100 50 100 55
4 Ethernet Switches (L2 and L3), Hubs, etc. 50 35 100 40 100 45 100 50 100 55
5 IP based Soft Switches,Media gateways 50 35 100 40 100 45 100 50 100 55
6 Wireless/Wireline PABXs 100 45 100 50 100 55 100 60 100 65
7 CPE(including WiFi Access points and Routers, Media Converters), 2G/3G Modems, Leased-line Modems,etc. 75 25 100 30 100 35 100 40 100 45
8 Set-Top Boxes 50 35 60 40 70 45 80 50 80 55
9 SDH/C arrier-Ethernet/Packet Optical Transport equipments 100 45 100 50 100 55 100 60 100 65
10 DWDM/CWDM systems 50 35 60 40 70 45 80 50 80 55
11 GPON equipments 75 35 100 40 100 45 100 50 100 55
12 Digital Cross-connects/MUXs 50 35 100 40 100 45 100 50 100 55
13 Small size 2 G/3 G GSM based Base Station Systems 75 35 100 40 100 45 100 50 100 55
14 LTE based broad band wireless access systems(eNodeB, EPC, etc.) 50 35 100 40 100 45 100 50 100 55
15 Wi-Fi based broadband wireless access systems (Access Point, Aggregation Block, Core Block, etc.) 100 35 100 40 100 45 100 50 100 55
16 Microwave Radio sySt ITES(IP/Hybrid) 75 35 100 40 100 45 100 50 100 55
17 Software Defined Radio,Cognitive Radio systems 50 35 100 40 100 45 100 50 100 55
18 Repeaters (RF/RF-over Optical), IBS, and Distributed Anten na system 75 35 100 40 100 45 100 50 100 55
19 Satellite based systems — Hubs, VSAT etc 50 35 100 40 100 45 100 50 100 55
20 Copper access systems(DSL/DSLA 50 35 60 40 70 45 80 50 80 55
21 Network Management systems 100 45 100 50 100 55 100 60 100 65
22 Security and surveillance communication systems(video and sensors base 100 35 100 40 100 45 100 50 100 55
23 Optical Fiber Cable 100 45 100 50 100 55 100 60 100 65

PMA=Minimum Preferential Market Access to Domestically Manufactured TelecomProducts in indicated financial year
VA= Minimum domestic Value Addition to qualify as Domestically Manufactured Telecom Products in indicated financial year

6. Telecom has emerged as a key driver of economic and social development inan increasingly knowledge intensive global scenario, in which India will play a leadership role. The Government has targeted to increase broadband coverage in the country up to 175 million by 2017 and 600 million by 2020. Additional Spectrumof about 500 MHz is proposed to be made available by 2020. In same way, the mobile subscriber base is targeted to reach 1200 million by 2017. Based on the TRAI report on Manufacturing Policy for Telecom Equipment, the demand of various telecom equipment in India and abroad is estimated as indicated in Table-B below

TABLE-B

SI.No. Year Global Total Demand Rs. million Indian Demand Rs. million % of Global Demand
1 2012-13 16382550 769400 6.2%
2 2014-15 19108610 965140 6.6%
3 2016-17 22288280 1210670 7.1%
4 2019-20 28076820 1700910 7.9%

The demand of various verticals of telecom equipment in India is estlmated and detailed as in TABLE-C, as follows

TABLE-C

Wireless Equipment Demand (Rs. millions) 2015-16 2019-20
    Wireless Equipment 264440 444380
i) 2G Wireless 25320    
    BTS Antenna 10130    
    BSC 9110    
    MSC/GMSC/HLR/VLR/ 6080    
ii) 3G Wireless 101280 26450
    Node B 40510 10580
    RNC 36460 9520
    GGSN/SGS 24310 6350
iii) LTE/Mobile Wi-MAX/SG 126590 238100
    eNode B 75960 142860
    MME/SGW/PDG/S 50640 95240
    FAP 11250 27990
iv) Mobile Handset 384020 613100
    Total 648460 1057380
Wire-line Equipment 2015-16 2019-20
i) Switches        
    Local 1640 1480
    Transit 1840 1660
ii) STP 990 900
iii) lN Platform 500 450
    Total 4960 4480
lP & Packet Switching 2015-16 2019-20
i) Switches        
    LAN Switches 107520 130690
    Ethernet/IP Aggregation 8060 12680
    Carrier Ethernet (lncl. above) 2020 9510
ii) Routing        
    Edge lP/MPLS Routin 19350 30440
    Core lP/MPLS Routing 4840 7610
iii) Packet Voice 7130 20890
    Soft switch 2850 8360
    SGW/MGW 2140 6270
    Session Border Controll 1070 3130
    Media/Voice App Server 1070 3130
    Total 146890 201310
Broadband Equipment 2015-16 2019-20
i) FTTX 38810 208700
    ONT/ON 15520 83480
    OLT 23280 125220
ii) DLS Broadband 31040 29810
    DSL Modem 15520 14910
    DSLA 10870 7450
    MSAN 4660 7450
iii) CMTS 7760 59630
    Total 77610 298150
Backhaul and Transmission 2015-16 2019-20
1. Fibre/Opticals        
    Optical 58110 79220
    SDH 31880 35880
    DWDM 19730 34880
    POTP(lncl within SDH,DWDM/DX 27460 66770
    DXC 3300 3430
    Submarine Svstem 3200 5030
2. Microwave Backhaul 27240 39890
    PDH/SDH/Microw 1360 800
    Ethernet Microwav 25880 39090
    Total 78380 109600

7.The procuring agencies shall follow the standard procedures, subject to meeting the requirement related of procurement being made from domestically manufactured this policy

(i)aggregation of annual requirements and such other procurement practices, which facilitate the implementation of this policy, may be adopted by procuring agencies.

(ii)adhere the procurement of Telecom products by Government Ministries/Departments or agencies under their administrative control and in Government Telecom Projects.

(iii)wherever the domestically manufactured telecom products are procured under this policy by a Government Ministry or Department or an agency there of or for telecom products, such procurement shall be subject to matching of Ll price and on satisfying technical specifications of the tender.

(iv)In case of the domestic manufacturer is not lowest bidder (L1), thespecified part of the tender would be awarded to the lowest technically qualified domestic manufacturer, subject to matching with Ll price, if such bidder is available. The remaining part will be awarded to Ll bidder.

(v)lt is not necessary that each tender for the procurement of telecom product is split between domestic and non-domestic manufacturer. lf atender cannot be split, either because the unit of procurement is small or because of technical reasons, or because no domestic manufacturer is available for the product, the procuring agency may ensure that the annual requirement of procuring the specified extent of telecom products from domestically manufactured products is achieved through suitable enhancements in other tenders.

(vi) The tender conditions would ensure that domestically manufactured telecom products are encouraged and are not subjected to restrictive products specifications are mandatory requirement of prior experience. The procuring agency may also rationally identify and evaluate predatory pricing by any bidder. However, procuring Department or Agency may incorporate such stipulations as may be considered necessary to satisfy themselves of the security, production capability and product quality of the manufacturer.

8.In case of a question whether an item being procured is a telecom product to be covered under the policy, the matter would be referred to the Telecommunications Engineering Centre (TEC), Department of Telecommunications for clarification.

9.The guidelines as notified by the Department of Electronics and lnformation Technology shall be followed for this purpose. In case of any doubt in respect of Telecom Products, reference shall be made to Telecommunications Engineering Centre (TEC), Department of Telecommunications or technical auditor as accredited by the Telecommunication Engineering Centre, Department of Telecommunications for the purpose.

10. The expressions or abbreviations used in this Notification have been detailed in the list below for easy understanding.

List of Acronyms used in the notification

SI No. Acronyms Expansion
1. 2G Second Generation
2. 3G Third Generation
3. 4G Fourth Generation
4. 5G Fifth Generation
5. ADSL Asymmetrical Digital Subscriber Line
6. ATMP Assemblv,Testinq, Packaqinq And Marking
7. BOM Bill Of Material
8. BSC Base Station Controller
9. BSS Base Station Subsystem
10. BTS Base Transceiver Station
11. BWA Broadband Wireless Access
12. CDMA Code Division Multiple Access
13. CN Core Network
14. CPE Customer Premises Equipment
15. CWDM Course Wavelength Division Multiplexing
16. DAS Distributed Antenna System
17. DeitY Department of Electronicts and Information Techonology
18. DSL Digital Subscriber Line
19. DSLM Dioital Subscriber Line Access Multiplexer
20. DWDM Dense Wave Division MultiPlexing
21. DXC Digital Cross Connect
22. EIR Equipement Identity Register
23. EMS Electronic Manufacturinq Services
24. EPABX Electronic Private Automatic Branch Exchange
25. FFTH Fiber to the Home
26. GGSN Gateway GPRS Support Node
27. GMSC Gateway Mobile Switching Centre
28. GPON Gigabit Passive Optical Network
29. GPRS General Packet Radio Service
30. GSM Global Standard For Mobile
31. HLR Home Location Register
32. HSPA High Speed Packet Access
33. IMS lP Multimedia Subsystem
34. IP Internet Protocol
35. LAN Local Area Network
36. LTE Long Term Evolution
37. MGW Media Gateway
38. MME Mobility Management Entity
39. MPLS Multi-Protocol Label Switching
40. MPLS-TP MPLS- Transport Profile
41. MSAN Multi-Service Access Node
42. MSC Mobile Switching Centre
43. MUX Multiplexer
44. NGN Next Generation Network
45. NG-PON Next Generation Passive Optical Network
46. NFS Network for Spectrum
47. NOFN National Optical Fibre Network
48. OAN Optical Access Network
49. ODF Optical-fiber Distribution Frame
50. OFC Optical Fibre Cable
51. OLT Optical Line Terminal
52. ONT Optical Network Termination
53. ONU Optical Network Unit
54. OTN Optical Transport Network
55. PABX Private Auto Branch Exchange
56. PDH Plesiochronous Digital Hierarchy
57. PON Passive Optical Network
58. POTP Packet Optical Transmission Platform
59. RAN Radio Access Network
60. RLC Radio Link Control
61. RNC Radio Network Controller
62. ROADM Reconfiqurable Optical Add-Drop Multiplexer
63. SDH Synchronous Digital Hierarchy
64. SONET Synchronous Optical Networking
65. STM Synchronous Transport Modules
66. STP Signal Transfer Point
67. TDM Time Division Multiolexing
68. USOF Universal Service Obliqation Fund
69. VDSL Very High Data Rate Diqital Subscriber Line
70. VLR Virtual Location Reqister
71. VSAT Very Small Aperture Terminal
72. WCDMA Wideband Code Division Multiple Access
73. WDM Wavelenqth Division Multiplexing
74. Wi-Fi Wireless Fidelity
75. Wi-Fi AP Wireless Access Point
76. WiMAX Worldwide Interoperability For Microwave

[F.No. 18-07/2010-IP]
(Malay Shrivastava)
Joint Secretary to Government of India
Tel: +91 11 2371741

To
The Manager
Government of India Press
Mayapuri, New Delhi

Copy to:

  1. All concerned Ministries/ Departments of Government of India
  2. Cabinet secretariat
  3. PMO
  4. Planning Commission
  5. Comptroller & Auditor General of India
  6. Joint Secretary, Department of Electronics and Information Technology,New Delhi- With reference to Notification No. 8(78)/2010-IPHW dated 10.2.2012
  7. PS to Hon'ble MOC&lT/Hon'ble MOSC&IT
  8. PPS to Secretary(Telecom)/Additional Secretary(T)/Adm inistrator, USOF
  9. PPS Member(T)/Member(S)/Member(F)/Advisor(T)/Advisor(O)
  10. Sr.DDG, TEC, Khurshid Lal Bhawan, New Delhi
  11. JS(TyJS(A)/CVO/All DDsG

(Malay Shrivastava)
Joint Secretary to Government of India
Tef: +91 11 237174

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