Union IT and Communications Minister Dayanidhi Maran on Monday set a target of 200 million phones by 2007 and said India would need telecom equipment worth Rs 1,000-1,250 billion to meet this target.

"We should work towards a target of at least 200 million telephones by 2007, if not 250 million, which would require 120 million lines in the next three years, translating into telecom equipment requirement of Rs 1 lakh crore-Rs 1.25 lakh crore (Rs 1,000-1,250 billion)," he said at a roundtable on telecom equipment manufacturing in New Delhi.

There are 85 million telephones at present, he said and added that the department of telecom is all set to provide an impetus to the development of telecom equipment manufacturing for meeting future demand arising out of a strong growth in telecom services.

Maran asked the industry if it would like all this value (Rs 1 lakh crore-Rs 1.25 lakh crore) to come from outside (through imports) or the country should benefit by way of indigenous manufacturing.

He asked the service providers to help in promoting indigenous manufacturing. It should be explored if service providers could confine to importing only those items that can not be manufactured in the country.

Speaking on the occasion, Planning Commission Deputy Chairman Montek Singh Ahluwalia stressed on the need for indigenous manufacturers to have a level playing field vis-a-vis imports and assured that the Commission would work to provide the requisite support in this direction.