[Aswini Vaishnav, Minister for Telecommunications, and the Prime Minister]
On Feb 15, I posted ” Obdurate defence finance bureaucrats sinking atmnirbharta projects”. It had revealed how the Integrated Financial Adviser (IFA), Ministry of Defence had ousted two Indian defence MSMEs (Micro, Small and Medium Enterprises) — Lekha Wireless Solutions Pvt Ltd and Signaltron, both of which possess 5G patents for radiotelephony from the competition to provide the army with a mobile tactical communications (TACCOM) network, how this was done by relying on an outdated turnover criterion these firms could not meet because, well, they are small and not because they lacked the tech or couldn’t execute the contract, which fact these two companies had made known to the IFA before the bids for the TACCOM tender were opened, how this was done at the crucial tech testing stage so Lekha and Signaltron couldn’t prove their tech, and why this sort of deleterious rule-based regime is what the babus follow when it serves their purpose of furthering foreign tech purchases. The foreign technology involved is Israeli and the Indian front company — Alpha Design, is only a system integrator buying components/technologies from here and there and putting them together, it is not a technology creator or innovator. Worse, because Israel sells its advanced technologies to the Chinese military, who is to say the PLA is not conversant with this Israeli technology and this TACCOM the army is set to use on the disputed border is not fully compromised?
Disappointingly, despite my urging General Manoj Pande in the post — the first combat engineering officer to be COAS, to stop the tender process from advancing, he did nothing. However, Defence Minister Rajnath Singh, I understand, took note of my post. But instead of cancelling the trial contract and ordering the tender for TACCOM to be reissued, which is something MOD/Govt of India is entirely within its sovereign right to do at any time, for any reason, with regard to any defence or other capital acquisition deal, MOD chose the limited option of changing the revenue turnover criteria without scrapping the Alpha Design-Israeli contract. So Lekha and Signaltron are still out of the TACCOM contract, notwithstanding their superior INDIGENOUS technology!
But the ministries and bureaucrats within them not taking Prime Minister Narendra Modi’s atmanirbharta goals seriously seems to be the norm rather than an exception. Consider the Department of Telecommunications (DOT) — supposedly a sphere of special concern and interest to the PM. The minister heading it is the media savvy Ashwini Vaishnav, who pops up every other day to extol just how far and fast India is rising in the field and spews statistics about the growingly large mobile telephony coverage that facilitates the digitalisation of the economy. But, it would appear he is more interested in impressing Modi with such self-publicity shenanigans than actually doing something substantive rapidly to increase the telecommunications and related services footprint in the country, and help the economy progress by leaps and bounds.
The means for India’s potentially rocketing rise in the telecom sector are Captive Private Networks (CPNs). Without getting too technical, CPNs involve a very small part of the spectrum being directly allotted, rather than auctioned, to big companies, industrial and commercial ventures, hotel chains, and similar large economic entities, and even remote village collectives, enabling them to operate their own closed communications networks to improve their intra-company/unit communications, improve functional efficiency, resource management, labour productivity and the bottomline, rather than rely on the unreliable large telecom companies — Telcos (Jio, Airtel, Idea, Vodafone, et al) who run their businesses for profit and are not interested in investing in communications infrastructure, to meet specific, localised, needs and providing the kind of services such entities need to beat foreign competition, win contracts at home and abroad, and otherwise survive in the market. And for remote areas to be connected and escape remaining hostage to telco decisions motivated by commercial reasons.
The analogy here is the freeing of Wi-fi, which was resolutely opposed by the Telcos. But after GOI over-rode objections and freed Wi-fi, Telcos discovered how they could piggyback on it to extend applications based on it, to increase their business manifold and make lots of money. Germany, Canada are leaders in CPNs. An expert likened a CPN to an EPABX (electronic private automatic branch exchange). Any hotel can just go and pick up various components — all manufactured by MSMEs — of an EPABX that connects the reception desk to the rooms in the hotel, and each of the rooms to all the hotel services, etc., and hire an MSME specialising in integration to put the communications system together. Voila! you have an efficient all-in communications network for the unit. A CPN can be set up exactly in the same way as EPABX for any industry, financial institution, or economic entity. It will spectacularly boost the MSME sector and assist significantly in addressing the problem of millions of “educated” illiterates mass produced by hundreds of universities. Because MSMEs will be the main source of CPN technologies, components and integration services.
In India, 230,000 factories would benefit from CPNs, as would 3,000 mines, 130 plus airports, 13 major ports and 200 minor and intermediate ports along the coastline, the central highway construction and maintenance authorities overseeing 151,000 National Highways, nearly 160 million hectares of arable land, $227 billion software industry, and over 10,000 startups. The economic multiplier impact of CPNs using “millimetre bands for dense applications and especially for manufacturing in BRIC Countries is estimated for the period 2025-2050 by GSMA, the global association of representing the mobile telephony “ecosystem” as $84 Billion for Brazil, $102 Billion for Russia, $150 Billion for India, and a colossal $1.114 Trillion for China. How will India ever catch up with China, if DOT continues to place administrative and procedural obstacles in the way of CPNs?
In any case, even DOT which has been a tech laggard and until recently a big promoter of Chinese Huawei 4G and 5G telecom hardware and is only now trying to catch-up with the more advanced countries such as Germany and Canada, realised and formally decided in 2018 that the entire spectrum is not auctionable, that small portions of the bandwidth ranging from sub-gigahertz to high millimetre wave bands, can by “administrative assignment” be given to economic entities to run their CPNs for annual royalty/fee, and that CPNs are both necessary and make economic sense. Accordingly, 20 applications for CPNs were forwarded by major corporates, including Infosys, L&T, Tata Power, etc to lease a bandwidth. The Modi government consequently made a cabinet decision in 2019 to implement CPNs. Here the regressive-minded DOT bureaucrats rather than going ahead and implementing the cabinet decision, played spoiler. DOT formally sought an opinion about so allotting or “leasing”, not auctioning, the bandwidth for CPNs to the Law Ministry and, predictably, brought the proceedings to a shuddering halt.
Here the ghost of the 2007-2008 2G scam, involving the Congress government minister A. Raja stalking the DPT corridors ever since, intervened. Verily like the Bofors scam that has skewed defence procurement decisions for over 40 years, the 2G scam, in which Raja was charged with selling 122 2G spectrum licenses cheap resulting in revenue loss to the Exchequer, but in 2017 was exonerated by the Courts of any wrongdoing, means no DOT official wants to be involved in leasing spectrum short of a clear verdict by the Courts. The Deputy Attorney General, as clueless about the technical nuances of CPNs, took the safe and easy route and responding to DOT’s seeking legal opinion, advised the auctioning of the spectrum.
This legal view has come as a boon to the Telcos who, dog in the manger-like, neither provide the services nor are willing to let economic entities fend for themselves by establishing CPNs. Telcos moreover wield a mighty political clout. There’s Mukesh Ambani with his Jio, Sunil Mittal with his Airtel, etc. And it is rumoured the Telecom minister, Vaishnav, is “in their pocket”. But acting on a cabinet decision is a difficult spot for Vaishnav to be in. The only way he is likely to be persuaded is if PM/PMO instructs him not to waste time and to forthwith allow CPNs. Considering the scale of economic gain India needs to obtain to match China just in the CPN area, what option does Modi have? Unless he too thinks that pandering to the Ambanis and the Mittals of the world will get the country where he wants India economically to be.
Security Wise 
Dr karnad,
It is Astra Microwaves Ltd not “Alpha design” which won the SDR contract worth 150 Crores.Astra microwaves is an excellent company directly responsible for development and indigenization of various types of AESA radars ,both ground-based and airborne versions.While I agree with you about the Israeli contribution, I do not understand why you are waking up to it now.locally built Israeli SDR’s are already operating on all frontline IAF jets.
The fundamental problem is that both the uniformed and civilian babudom of MoD is very deeply penetrated by Western intel.It is they who sabotage every single pioneering local defense project.Barring highest-quality military-grade aerospace engines, our local industry can provide basically everything.Just consider ISRO, they have fully indigenized their military satellite program and even successfully developed a path-breaking 2000 KN semi-cryogenic engine and also developed the necessary testing facilities.The only reason they were able to do this was because they did not have access to imported fourth-rate American cr@p.Unless and until Western intel parasites located deep inside our establishment are eliminated with SMERSH-style ruthlessness this state of affairs will continue indefinitely.
Really? Is it true, western Intels has penetrated deep inside Indian Defense Personnel circle (both active n retd) and even in Civil Beaurocrats??
Then what agencies like IB,NIA,RAW have been doing??why are they not stopping them?
Dear Dr Karnad
Wonderful and very interesting article again from your mighty pen.
1. My question is with regards to the current situation in Manipur. Do you think that the current situation in Manipur in addition to the ongoing civil strife in Myanmar will negatively impact India’s “Act East” outlook ?
2. Will the current negative security impact in the North East negatively impact Indian security posture towards China ?
I would love your feedback on the same.
Chinese telcos have started investing in research of quantum computing , whereas good for nothing state run BSNL is getting a $10 billion bailout package . Can Indians ever think strategically. Shukracharya must be rolling in his grave.
PS: Dr Karnad are you planning to release any new books ?
Regards
Yes, have been struggling to finish my next book, this one for HarperCollins hope to have a manuscript ready by year end or thereabouts.
Look forward to it !
Regards
Let me guess, this is a follow-up to your 2015 book “Why India is not a great power(Yet)”? You will describe the progress made in military and industrial development under the Modi regime while also mentioning obvious shortcomings like the continued reluctance to carry out megaton-range thermonuclear tests ,arming Taiwan and Vietnam with nuclear-tipped Agni-P missiles and above all,the reluctance to drain off the cesspool/purgatory of a bureaucracy that we have inherited from the British,a bureaucracy which is now very deeply penetrated by western Intelligence.
Regards
you have about got it. But with more history and many surprises!
@Bharat
Out of all the problems our nation has the one that worries me the most is the extreme penetration of our bureaucracy by CIA and its related European lapdogs and even by the Russians'(They are no angels either).This,in my opinion,is undoubtedly the single-biggest existential threat to India.I am pretty certain you will concur with me.This is even a bigger threat than China.
They have till date date sabotaged the testing of ready MIRVed SLBM’s developed by DRDO.They also keep our illiterate political leadership unaware of the need to carry out high-yield fusion tests and to nuclear-arm Taiwan and Vietnam.These people have and still continue to try to sabotage pioneering local defense projects to the best of their ability.This is done to promote arms-imports which will come along with a fat “cut” and also to deny India an indigenous defense industry and thus the ability to wage war for our own national interests.It is the Russian MIC which is allowing Putin to fight the entire military stockpiles of NATO single-handedly while also firmly clinging onto to 1/5th of his enemy’s territory.It is this ability to wage war under extreme pressure from a nasty horde of enemies while also deterring any thought of external intervention which makes one a true great power.This is a feat which only the Russia and US can pull-off today.Despite their extremely bombastic propaganda nowadays,the Chinese still rely upon imported Russian or license produced aerospace engines to power their entire fighter-fleet including the supposedly “stealthy” J-20.Their nuclear build-up is also totally depended upon the provision of several tons of reactor-grade plutonium for their upcoming fast-breeder reactors.Their nascent early-warning systems were purchased off the shelf from Russia,as confirmed later by Putin.Most of their MBT’s and IFV’s are also directly reverse-engineered russian stuff.It is China which is dependant upon Russia not the other way around as the Western media tries to spin it.In any case,all of China’s industries concentrated on their East coast will be pummeled by American cruise missile salvos in any real fight,denying them the ability to prolong the war.
Eliminating the parasites inside our Establishment has to be a top national priority.This has to be done with utmost secrecy and with absolute “SMERSH-style” ruthlessness.This inquiry has to be carried under direct supervision from a board of retired and accomplished intel officers(like my gramps) and also including well-know,patriotric experts with high-integrity(like yourself).These renegades deserve to be hanged from lampposts in the crowded slums of Delhi to convey the message loud and clear.
Professor,
First it was the NGOs that were eliminated in India for peddling foreign influence. Now it’s the western moles in the bureaucracy that need to be removed. Of course, there’s also the capability of the Indian workforce, which is not yet world class. Given these kinds of constraints and road blocks, it is no wonder things can take decades in India to improve, even with the right kind of vision and leadership. Centuries of muck has to be cleared.
Sir, imagine a scenario in future…where China is contained by US with help of its other Allies n India. Even CCP has been replaced by Democratic govt of their choice.
So what’s after that? Who will be America’s new enemy? America always needs an enemy to continue its hegemonic mindset. So after China…who will be America’s enemy? India? If India becomes the enemy…then how US will contain or defeat India because by then India would be a fully developped country.
I know its an imaginary scenario for now but who knows may be after 1 or 2 generation it may become reality. So pls dont dismiss it…pls answer.
Email from Dr V Siddhartha, former Science Adviser to Defence Minister
V Siddhartha
To:
bharat karnad
Fri, 9 June at 9:25 pm
Re: “…. both of which possess 5G patents for radiotelephony”
If they are Indian patents, then, under extant provisions of the Indian Patents (Amendments) Act, these companies can prevent the IMPORT
of any 5G systems covered by their patents.
Further, the patent holders can also legally prevent not only manufacture within the country by anyone not licensed by them to do so,
but also USE of systems with that technology.
If GoI or anyone else (e.g. Israeli companies) fights them in court, the onus is on those companies/GoI to demonstrate they are NOT in violation
of any aspect/part the patent-holder’s exclusive rights.
The legal process, once started, can take a long time. In the meantime, no action involving the technologies embedded/implicit in the patents can be taken.
Catch? There are very many ways in which MoD/GoI can screw the MSMEs.
VS
https://thewire.in/diplomacy/as-modi-goes-to-washington-india-must-not-lose-sight-of-the-choices-it-faces
Modi’s dilemma is that anything but a clear-cut “We’re with you and against China” is unlikely to go down well in the current atmosphere in DC. Other leaders confronted with the same choice have tended to wobble in the face of American carrots and sticks. Yoon Suk Yeol of South Korea agreed to allow US nuclear submarines to dock in Korea for the first time in 40 years; Anthony Albanese of Australia agreed to pay $368 billion for the privilege of participating in AUKUS and hosting the alliance’s nuclear submarines (changing Australia’s longstanding no-nukes stance); and Bongbong Marcos of the Philippines agreed to host four new US military bases. Leaders in the region who have declined to choose also offer a lesson: witness the recent US sanctions on Bangladesh, and the fate of Imran Khan.
Dr. Karnad what are your views on this article what will be our prime minister response to US carrot and stick policy in his upcoming US trip will he bow down to US pressure or stand upright because it suggest that for americans this time they want a clear cut answer either our side or against us.
Fortunately for Modi, India is in a position to consume all the carrots while warning about the ill-effects of the stick, which warning will be heeded, because, as I have argued, India is pivotal to the US in its contest with China for dominance in Asia.
Sir,
Ref – ” … unreliable large telecom companies — Telcos (Jio, Airtel, Idea, Vodafone, et al) who run their businesses for profit and are not interested in investing in communications infrastructure …”
You have advocated involvement of private companies like Tata, L&T, etc. in defence manufacturing, but our experience with telco companies is apparently less than desirable. How to avoid this kind of situation, in defence sector?
Thanks
Permit large Indian corporates in defence industry to immediately create a market for and sell derated variabts of hardware produced for the Indian militaryh, with Indian embassies in the developing world tasked for preparing the ground for pushing such export sales. Indian industry’s problem has always been limited requirement and hence lack of economies of scale. The above is the way to deal with it.
Professor,
Looks like China has developed a thorium based nuclear reactor…
https://www.scmp.com/news/china/science/article/3224183/china-gives-green-light-nuclear-reactor-burns-thorium-fuel-could-power-country-20000-years?module=lead_hero_story&pgtype=homepage
Indians have been at this same problem for sixty years. God knows how many years more are needed. India should stop complaining about why other countries don’t share tech. Just hunker down and do more real stuff and less complaining!
Dr Bhabha visualized this as early as 1960s, and proposed the famous three stage nuclear power program, where thorium may be converted to U-233 as an intermediate state. While India has <2% or world's uranium, it has over 25% of world's thorium reserves in monazite sands in coastal India. Not sure why India never went full throttle in building thorium based reactors. Possibly the breeding costs?
This would have been such a huge gamechanger where our nuclear program would have been completely independent, and would have had a cascading impact on our nuclear policy.
Prof. Karnad. Would genuinely appreciate your thoughts as it is one of your favorite topics, I am sure.
Please read 1st or 2nd editions of my 2002 (or 2005) book – Nuclear Weapons and Indian Security. It deals in extenso with the 1955 Bhabha 3-stage plan for energy self-sufficiency based the large Thorium reserves, and how it was systematically undermined by government decisions and under-investment.
Great story