New Delhi | Jagran Business Desk: Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) have cancelled their tenders for 4G upgrade after the Department of Telecom (DoT) asked the state-run firms not to use Chinese telecom gear.

The decision by the two state-owned telecommunications service providers has come after the DoT decided to issue fresh specifications for the upgradation process.

"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," the notice issued for tender cancellation read.

The development assumes significance in the backdrop of border standoff between India and China in Ladakh that also saw the death of 20 Indian Army personnel last month.

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

After the 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 upgradation of its 4G network.

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 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.

On Monday, the government banned 59 China-linked mobile apps, including popular ones like TikTok and UC Browser, saying that "they are engaged in activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order."

Posted By: Abhinav Gupta