Addressing reporters at the company's roadshow in Calcutta on Friday, he also suggested a simple method for the department of telecommunications (DoT) to place orders for equipment.

Around 100 employees of the 120-member workforce at SPCNL's switchgear manufacturing unit at Salt Lake near Calcutta have remained idle for the last seven to eight months owing to lack of adequate orders, according to the company.

Karl-Friedrich Hunke, vice-president of Siemens AG, the German parent company, said: "We will be able to sustain the idle capacity till the end of 1998. We are trying to take a long-term view of the problem and deal with it conservatively."

According to Hunke, the loss on the account of the idle capital at the Siemens factory is greater than the cost of maintaining an idle manpower.

Wefelscheidsaid: "The department of telecommunications has also failed to effect a growth of 6.7 million lines per year as projected. In fact, it is limited to 1.7-1.8 million lines per year only."

"In comparison, China has added 20 million lines in 1997. That itself is bigger than the total number of Indian lines -- 18.5 million. In fact, between January and April 1998 we have received orders for 5.7 million lines in China," Wefelscheid added.

He suggested a simplified system for placing orders which can be completed in three months. "There are three steps, the DoT announces specifications, the companies submit their bids and then the DoT places the order. A faster process will help India become a healthier economy," he added.

"We are expecting a decision within two to three weeks. We desperately need a decision, a push," he said.

Siemens' officers seemed pretty confident that the government would come out with a major policy decision on the subject within three weeks.

SPCNL director DK Ghosh later toldThe Financial Express: "We are expecting a new minister within this period. We have received certain signals at the level of the prime minister and the ministry of finance that measures will be taken soon to speed up the tendering process or else an alternative process might be developed for infrastructure orders."

SPCNL is also organising a seminar along with DoT on innovative technologies. Wefelscheid said: "We are also interacting with them to help DoT become a market-driven organisation."

The Siemens executives are confident, however, that the sanctions announced against India by the German government will not affect the company's business. "Telecommunications is an area that never needs to be subsidised, and all investments are self-sustaining. Therefore, cutting off aid money is not a factor," Wefelscheid said.

"However, we often feel that the German government is not the best when it comes to safeguarding the commercial interests of German companies," he added in this context.