Department of Economic Affairs secretary Aravind Mayaram, who has called for the meeting, has pointed out that the FIPB had deferred the applications of the two Chinese vendors in 2002, 2005 and 2006, but these companies continued to operate in India 'as their activities falls under the automatic route'.
Mayaram, in his communication has also listed the findings of the US report which had said that Huawei and ZTE may be linked with Chinese government and its military and must be barred from mergers and acquisitions in that country (US).
Mayaram had also asked the FIPB to take on call on 'whether foreign investment policy parameters need to be changed, and if so at what stage'.
He also said the US Congress Report should be shared with the both the telecom and science and technology department to 'assess whether the potential risks envisaged are possible' and also if India could 'take pre-emptive steps in this regard'.
Additionally, he has also said that the Congressional panel report should be provided to the Cabinet Committee on Security and the home ministry.
Huawei and ZTE have denied all allegations in the US report.
Recently, when asked on the report, the Huawei India spokesperson said: "Huawei India has a proven and unblemished track record as a stakeholder and partner in India. We are invested and committed to India and her growth story, given a level playing field and an open business policy. We have fully complied with all legal and regulatory norms since the past 12 years of our presence. Huawei was the first vendor to sign the TSP agreement and to have offered full compliances and cooperation with customers, partners and governments as part of the solution for the evolution of a robust cyber security framework."
The finance ministry has also asked the FIPB to look at the recommendations of the US panel report, such as the two Chinese network companies being kept out of government contracts, especially those related to sensitive US programmes, and also that private companies be encouraged to consider their long-term security risks associated with doing business with the Huawei and ZTE.
Last year, India had unveiled a new security framework which mandates that mobile phone companies to get their networks audited once a year by reputed international agencies for bugs and other security breaches.
Prior to the new guidelines being put in place, security concerns, especially regarding Chinese gear makers had rocked India's telecom sector for about two years, delaying the network expansion plans of several companies.
Taking cues from the US House of Representatives' Permanent Select Committee on Intelligence, the telecom department last year mandated mobile operators to keep detailed records of supply chain of products.
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