India’s telecom growth hit by ECCS tape shortage challenge

By Dr Jaijit Bhattacharya & Manoj Dinne

India's telecom infrastructure boom faces an unexpected constraint. As the telecom ecosystem players race to expand 5G networks, BharatNet connecting remote villages, and the revival plans of BSNL, a critical shortage has emerged: electro-chromium co-polymer coated steel (ECCS) tape; think of it as a body armour for the fibre.

This armoured tape is needed to rust-proof, strengthen and protect the Optic Fibre Cables (OFC) from corrosion, physical damage and moisture, making it an indispensable input in India’s connectivity. 

The current shortage stems from the intersection of quality improvement initiatives and supply chain realities. In January 2025, the Ministry of Steel implemented Quality Control Orders (QCO) requiring mandatory BIS licensing to enhance steel quality across the ecosystem. While logical for standard steel products, this framework creates complexities for specialised items like ECCS tape.

The challenge lies in ECCS tape's unique position: India lacks domestic production at scale, which means no established BIS standards exist for the product. Recognising such scenarios, the Ministry had established a specialised portal in October 2023, allowing importers to secure No-Objection Certificates (NOCs) for products without existing BIS specifications.

This workaround was effective until December 2024, when NOC issuance ceased. Consignments that previously cleared through established exemption processes now face regulatory uncertainty, while industry domestic inventories have dwindled to weeks of supply.

If ECCS tape cannot be procured predictably, the domino effect will disrupt the entire OFC supply chain, similar to how the rare earth magnet shortage impacted the Indian auto industry.

The Demand-Supply Gap

Demand supply gap data reveals the scale of the challenge. Industry projections indicate India will need over 11,000 metric tonnes of ECCS tape in the second half of 2026 alone, driven by massive infrastructure deployments across public and private networks.

Current order books paint an even starker picture. C-DEP’s research revealed that between BharatNet's optical fibre cable requirements and private operators' 5G expansion plans, existing purchase orders translate into demand for more than 29,000 MT of ECCS tape in the next two to three years. 

Domestic production capacity paints a stark picture. Even the country’s leading steel producers do not make finished ECCS tape at scale, and the industry is still testing market feasibility. What is more, Indian steel presently lacks the necessary CACT or Component Approval Centre for Telecommunication certification, and with only two laminators currently certified, the supply situation remains further constrained.

While India can produce about 435 MT of raw steel coils per month (the base material for ECCS tape), actual conversion into finished ECCS tape is limited. These coils must be coated and laminated before they can be used to armour optical fibre cables.

Between January and June 2025, domestic makers supplied just over 1,000 MT of finished ECCS tape to the OFC industry, barely 22% of the requirement.

The shortfall will persist. For FY 2025–26, demand is projected at 18,000 MT, but domestic capacity can meet only around 5,000 MT. In other words, there will likely be a shortfall of 13,000 MT ECCS tape of the requirement in the next six months. 

India’s Manufacturing Reality

The supply constraint creates cascading effects throughout the telecommunications value chain. OFC cable manufacturers, like most other businesses, plan procurement months in advance, sequencing glass preforms, fibre drawing, colouring, stranding, jacketing, and armouring in tight cycles. If ECCS tape cannot be procured predictably, the domino effect will disrupt the entire supply chain, similar to how the rare earth magnet shortage impacted the Indian auto industry. 

Public projects bear significant pressure. BharatNet's village connectivity mission and BSNL's fibre-to-the-home expansion, as well as 5G rollouts, represent multi-thousand crore investments where delays could compound costs and extend deployment timelines, potentially affecting rural digital inclusion objectives.

So, what can India do? 

In the near term, the Ministry can consider allowing imports of ECCS tape until domestic capacity is scaled up. The rationale here is compelling. First, ECCS tape is not yet covered by a BIS standard, and the NOC process previously provided was stopped from December 2024. Second, domestic production cannot meet current demand; even optimistic capacity additions will take time to commission and ramp. Third, certainty on ECCS availability will stabilise factory schedules and production planning, preventing cost escalation that ultimately lands on public budgets and consumers. 

Parallelly, the Ministry of Steel could consider reopening the QCO portal for ECCS tape exemptions with clear criteria and validity periods and support the domestic ecosystem through targeted incentives so that India can achieve Atmanirbharta in ECCS tape production. 

India needs to strike a balance between addressing the immediate supply constraints while building long-term industrial capacity. The telecommunications sector's continued expansion depends on solving such component-level challenges, making the ECCS shortage both a test of policy agility and an opportunity for strategic industrial development.

Bhattacharya (left) is President and Dinne (right) is Senior Policy Consultant at the Centre for Digital Economy Policy Research (C-DEP), a think tank focused on the digital economy, policy innovation, and technology governance.