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Indian Government Gives Security Clearance to Huawei for Manufacturing Telecom Equipment in India

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Published on : Jul 17, 2015

Huawei, the Chinese giant in telecom business, has got security clearance for manufacturing telecom equipment in India. However, the telecom company will require to reserve major technical positions in the Indian unit for Indian nationals. If the firm wishes to employ a foreign national as its chairman, MD, CEO, and CFO in future, it will have to get a separate security clearances from the Home Ministry, Govt. of India.

The Prime Minister of India, Mr. Narendra Modi gave his affirmation to the setting up of Huawei’s manufacturing unit in India in his recent China visit. According to officials, the Home Ministry of India has cleared the proposal of Huawei Telecom (India) in the second week of July this year, which was submitted on December 12, 2013.

As per the MHA, the Telecom Department will draft the compulsory security parameters, which will be in addition to the quality, technical, and interface parameters, which will serve as clear security standards for technical equipment pertaining to the networking systems.

Huawei will require to construct a separate unit for telecom hardware and electronics on SEZ, Sriperumbudur, Tamil Nadu. Recently, Huawei have done an investment of around US$170 million to setup a research and development unit in Bangalore.

The memorandum recommends that Huawei should ensure the construction and setting up of a modern laboratory and other certification units for security certification of foreign devices coming into the Indian market via both, direct or indirect means. Network testing and audit should be supervised through a controlling body on a continued basis, after the installation of any such device. All these recommendations have been asked to be applied within a year, states a coverage report.