Chinese telecom equipment major Huawei Technologies has sought the approval of the Government of India to set up a $60 million manufacturing base in the country.
"We applied in March 2005 for approval for the facility from Foreign Investment
Promotion Board and waiting for the decision," Huawei spokesperson Fu Jun told PTI.
He said the proposed manufacturing plant would meet the future bidding criteria in telecom PSUs.
The proposed centre to come up in Bangalore will focus on NGN (Next Generation Network), fixed wireless terminals, some part of 3G equipment, and designing process of Huawei's products.
Huawei is hopeful of starting the facility this year once the FIPB nod comes in, he added.
Huawei's decision on manufacturing plant in India follows the policy decision of Department of Telecom to make vendors mandatorily have a production unit in the country. Its rivals like Nokia and Ericsson have manufacturing facilities in some form or other in India.
Fu Jun also dispelled any reported controversy on Huawei's India operations like "not complying to the country's security concerns, bidding too low to under-cut rivals and not being transparent in its activities."
"All these are not true. Indian Government never asked us (for) any explanation on compliance to the law of the country. We comply with all regulations and laws when we conduct business with any country," he said.
"It is an impression that we bid usually the lowest to get the deal. That is not true.. we bid in the price range of middle or high.. it is not the practice to incur loss to get a deal."
The company is in operations in India in the last few years and it has earned a revenue of $300 million, which places India as the fourth largest revenue earner in Asia Pacific. The countries ahead of India are Thailand, Bangladesh and Pakistan, he said.
"India is a huge market. In three years, we would like India to be number one revenue earner for us in Asia Pacific," Fu Jun said.
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