On January 14, Telecommunications Consultants India Ltd. (TCIL), a central public sector enterprise under the Department of Telecommunications, issued an order blacklisting Cisco Systems India from all future tenders for a period of two years. The decision followed what TCIL described as repeated and deliberate actions by the networking giant that undermined a Karnataka government e-governance tender of strategic importance.
The order bars Cisco from participating in any future bids, requests for proposals, or procurement processes floated by TCIL during the blacklist period. Existing contracts and ongoing projects, however, will remain unaffected, according to the order.
At the heart of the dispute is a tender issued by the Karnataka Centre for e-Governance for the KSWAN 3.0 project—an ambitious plan to provide statewide network connectivity to government offices across Karnataka, along with operations and maintenance services over five years.
Allegations of Delay, Conditions, and “Artificial Barriers”
TCIL’s order alleges that Cisco engaged in “unfair, exclusionary and anti-competitive practices” aimed at sabotaging TCIL’s participation in the public procurement process for unlawful commercial gain.
According to the PSU, Cisco failed to provide mandatory bid-related documents, including technical compliance papers and a Manufacturer Authorisation Form, despite repeated reminders and follow-ups. TCIL claims it approached Cisco as early as December 18, 2025, in good faith, given the vendor’s role as an original equipment manufacturer and its prior partnerships with TCIL on projects such as ICG, AFNET, and PSB.
Despite being fully aware of the bid submission deadline, Cisco allegedly did not furnish the required documents within a reasonable timeframe. At a meeting held at TCIL’s office on January 12, Cisco executives reportedly assured TCIL that the documents would be provided by the end of the day—a commitment the PSU says was not honoured.
Instead, TCIL alleges that Cisco attempted to impose “new and extraneous” conditions at the final stage of bid submission, including an unprecedented undertaking to be signed by TCIL’s Chairman and Managing Director. The PSU said such conditions had never been part of past engagements and amounted to the creation of artificial entry barriers designed to derail the bid.
A Tender of Strategic Importance
The KSWAN 3.0 tender is not an ordinary procurement. It is a critical component of Karnataka’s digital governance infrastructure, intended to ensure secure and reliable connectivity across state government offices.
In its order, TCIL stressed that the tender was of “strategic and economic importance,” and that any conduct undermining fair competition in such projects warranted strict action. The PSU characterised Cisco’s alleged non-responsiveness and last-minute conditionality as a deliberate attempt to sabotage TCIL’s participation in the tender process.
“This conduct,” TCIL stated, “amounts to deliberate non-responsiveness and the creation of artificial entry barriers at the closing stage of bid submission.”
The order reflects a broader institutional frustration within public sector entities that increasingly rely on global technology firms while remaining vulnerable to asymmetries in power, documentation control, and timing.
Cisco Responds, but Questions Remain
Cisco Systems India, responding to queries, said in an emailed statement that it “abides by applicable local laws and regulations in all the markets we operate in” and maintains “intentionally high standards” under its Code of Business Conduct.
The company added that it remains engaged with TCIL on the matter and continues to focus on delivering industry-leading products and services to customers across India.
TCIL, however, said no official comment had been received from Cisco at the time of issuing the blacklist order.
The episode places an uncomfortable spotlight on procurement dynamics in India’s rapidly expanding digital infrastructure sector—where public agencies depend on global vendors, but also face the challenge of enforcing accountability when processes break down.
As India’s states push deeper into digital governance, the TCIL-Cisco standoff underscores a growing tension: how to ensure that large technology firms operate within the same rules of transparency, responsiveness, and competition that public institutions are bound to uphold.
