No alternative to China's electro chrome tape may drag India's key digital initiatives

Time of India

29-04-2025

NEW DELHI: The fate of the country's telecom connectivity initiatives boosting
Digital India
ambition, seems to hang in balance as the import of one of the crucial components— electro chromium steel tape— used to manufacture armoured optic fibre cable (OFC) locally, is restricted following the fallout of geopolitical tensions with China.
Several chromium steel tape inbound shipments by homegrown OFC manufacturers have been lying at ports pending clearance, industry executives said on the condition of anonymity.
Electro chromium-coated steel or ECCS tape is a common material used by manufacturers for shielding and armouring optical fiber cables. Armoured optic fibre cable (OFC) is used in underground deployments, and such a specification is mandatory in state-driven initiatives, including Prime Minister Narendra Modi's prestigious
BharatNet
program that aims to connect more than 6.5 lakh villages with high-speed Internet access.
The Centre, however, is yet to take decisive steps to end the fiasco.
'The issue of import of electro chrome coated steel (ECCS) tape has been examined jointly by the Ministry of Steel and the
Ministry of Communications
. It was ascertained that though presently this grade of steel is not being manufactured in the country, there is the capability in the country for manufacturing of the steel. Accordingly, in a meeting with importing companies, it was decided that a fourth of the annual requirement of the ECCS will be allowed to be imported, and in the meanwhile, the companies will explore the possibilities of domestic manufacturing,' Sandeep Pondrik, secretary, Ministry of Steel, told ETTelecom.
The companies, according to Pondrik, were asked to provide documents through the online portal in support of their claim of requirement, such as orders under the BharatNet project. 'Three companies have applied for the import of ECCS for the BharatNet project, out of which one company has given the required documents, and has been issued with a no-objection certificate.'
Industry insiders say that "a temporary arrangement for 3 months" for a critical national program— BharatNet —is insignificant, and that the component is required for making OFC for other private sector players as well as state-owned telco-led deployments.
Lately, incumbent telecom carriers—
Reliance Jio
,
Bharti Airtel
and
Vodafone Idea
(VIL) have been deploying OFC-based network aggressively on the back of fibre-to-the-home (FTTH) offering, and next-generation 5G technology-driven network rollout.
'Non availability of ECCS is severely affecting OFC manufacturers and it is likely to affect BharatNet project as well,' NK Goyal, chairman emeritus, Telecom Equipment Manufacturers Association of India (Tema) said.
With the Directorate General of Foreign Trade (DGFT) playing a crucial role in regulating and facilitating imports into India, there are abnormal delays in getting clearances, which are resulting in "no production" locally, Goyal added.
Queries to the Piyush Goyal-headed Ministry of Commerce & Industry as well as the Ministry of Communications did not elicit any response.
The third phase of the prestigious BharatNet initiative is about to take off as the state-run Bharat Sanchar Nigam Limited (
BSNL
) is in the process of awarding as many as 16 packages to successful bidders to take digital connectivity up to the last mile, in a bid to deliver multiple citizen-centric e-Services.
'The industry needs it (ECCS tape) on an immediate basis. We have been in touch with the Ministry of Steel on this issue for many months, however the solution offered seems insufficient,' RK Bhatnagar, director-general, Voice of Indian Communication Technology Enterprises (Voice) said.
Delhi-based domestic industry group Tema said that the 'ECCS tape is not manufactured anywhere,' and needs to be imported from China for the continuity of digital connectivity initiatives.
'We strongly believe that the import should be fully allowed immediately. Simultaneously, the industry would welcome any local steel manufacturer, to produce and supply domestically,' Goyal added.
Following an alarm and representations by domestic manufacturers, the
Department of Telecommunications
(DoT), according to official sources, has been monitoring the situation, and may likely seek extension beyond a 3-month period from the HD Kumaraswamy-headed Ministry of Steel.
Corrugated ECCS tethering acts as a protective material for OFC colour coating retention, exposure to extreme heat conditions and water immersion, as well as preventing damage from rodents and termites.