RAW sends note to Department of Telecommunications on loans given by Chinese banks to RCom
The operations of Chinese telecom equipment providers Huawei Technologies and ZTE Corporation in India have again come under the scanner of law enforcement agencies and the Department of Telecommunications (DoT).
The matter now relates to Reliance Communications (RCom) getting huge loans from Chinese financial institutions with the help of the two firms.
Research and Analysis Wing (RAW), in a note to DoT, pointed to Huawei Technologies' “links” with the People's Liberation Army and the Ministry of State Security of China.
“It may be recalled that in 2010, BSNL, on security grounds, cancelled a contract awarded to Huawei and ZTE for GSM projects in the northern and eastern zones in India even though their bid was adjudged the lowest,” the note said.
Referring to the loans being provided by the Export Import Bank of China, the China Development Bank and the Industrial and Commercial Bank of China, the note states, “Influential Chinese telecom equipment makers Huawei Technologies and ZTE Corporation are understood to have helped RCom to secure loans from the State-owned Chinese banks as RCom is to buy $600 million worth of telecom gear from them.”
The note talks about how the two Chinese firms have launched an “aggressive Indianisation' drive to change their public perception in India.” “Huawei Technologies has recently decided to appoint an Indian as the Chairman of its wholly-owned subsidiary in India and has taken some Indians on the Board of Directors. ZTE also plans to revamp its five-member board in India by taking more Indians,” it said.
Notably, Huawei and ZTE have been providing equipment to various firms like Bharti Airtel and Tata Teleservices besides offering them easy payment options for such purchases.
When contacted, RCom refused to comment on the issue.
“Baseless”
However, Huawei India refuted such “allegations” as “untrue, baseless and malicious in intent.”
“Despite such continuous and repeated disinformation campaign over the past 12 years of its presence in India , the company has been serving India customers and firmly committed to being India's partner and contributor to the growth and development of the telecom/ICT Industry in India,” an official statement said.
“With more than 6,000 employees in India and dedicated R&D centre, a local manufacturing centre, operational centre, service centre and training centre across the country, Huawei has also been proactively collaborating and cooperating with the Indian government thus fully complying with all legal and regulatory requirements locally as it does internationally…Huawei is a completely transparent private global business entity and willing to communicate with any government agencies on any issues concerned,” the Huawei India spokesperson said.
Keywords: Reliance Communications, Chinese telecom equipment, Huawei Technologies, ZTE Corporation, Chinese loans, India China trade ties
What a wonder, when BSNL is barred from procuring equipment from Huwawei for security reasons, Reliance,Airtel can procure from the same vendor, with vendor recommended/sponsored finance from their own country. Really gr8. Is it that reliance will not install these equipments in restricted( north east) regions. Government need to keep vigil. Nice that atleast media publicises these info.
Greed shown by Indian Corporate at lapping up loans from Chinese Banks is totally anti-National. Whatever has been said about their telecom equipment is TRUE and no proof is required. Since the opening up of the market and Govt disinvestments the Big Corparates in India are behaving as if they own the Nation with impunity. It is high time Govt of India woke up and clamped down heavily on such deals after all the National security is at stake.
Telecom industry is running through hard time and these companies are giving such a huge amount of loan to not only to private operators but also is going to get the latest Govt run BSNL contract for GSM expansion . This certainly means they are Bribing Indian bureaucrats in BIG deals. RAW has got the clue because Chinese Telecom Vendors are the biggest suppliers to Pakistan also.
Hindi-Cheeni Bhai-Bhai! Can we forget this slogan and the history. We need to secure our nation & younger generation, from the cheap & environmentally unsafe toys, electronic items etc. being imported.
Please Email the Editor