ICEA Calls For Extension Of Nov 1 Deadline For Laptop Import Restrictions
The India Cellular and Electronics Association (ICEA) has written a letter to the IT ministry asking the government to reconsider its decision on the import permit requirement with quota, which was extended by three months till October 31, fearing that this may lead to a rise in the prices of consumer electronics products as companies are not yet prepared to manufacture computers, laptops and servers on a domestic scale.
In an August 22 letter to Alkesh Kumar Sharma, secretary of MeitY and seen by IANS, ICEA chairman Pankaj Mohindroo wrote that one overarching factor that should be considered “to avoid supply chain disruptions up to domestic production ramp-up” is that “supply reduction or even reference leads to hoarding and market distortion”.
This, in turn, can increase consumer prices, “which adversely affects not only key stakeholders such as students, but also those who are at the heart of the growth of the digital economy, i.e. start-ups, IT and ITES companies and BPO companies.” he said.
“It is important that we ensure uninterrupted supply for at least a year until we can build domestic capacity,” Mohindroo pointed out.
ICEA submitted that the industry will seek a respite of at least nine months after the release of PLI for IT equipment.
“The government may reassess the investment pipeline and supply situation before inviting the industry to discuss whether further policy action is needed at that stage. It may be premature to assess the full impact of the new regime before then,” according to the ICEA letter.
Regarding servers, ICEA has received feedback that companies in the industry want to reconsider their inclusion in the proposed measure.
“Overall, we are asking the government to smooth out all interventions in a way that works well for the industry as a whole, as individual companies are at this point in different investments, varying degrees of investment and products,” the letter reads.
The State Council previously postponed its decision to limit the import of certain laptops and computers to November 1, giving companies three months to import.
After November 1, no entity will be allowed to import laptops, computers and related products without a license.
According to ICEA, the “one size fits all approach” requires a re-evaluation by the government.
Earlier this month, leading consumer electronics companies such as HP, Apple and Dell urged the government to extend the Nov. 1 deadline for licenses needed for computers, laptops and tablets by at least a year because of the time it takes to set up and start production. /assembly of units according to the new instructions.
PLI 2.0 for IT hardware has gathered applications from 40 companies, including global and domestic ones, according to ICEA.
Union IT Minister Ashwini Vaishnaw said on Wednesday that 32 companies including HP, Dell, Lenovo, Foxconn, Acer and Thomson have applied for the IT hardware PLI 2.0 scheme.
According to the minister, the additional production under the program is expected to be around 3.35 million rupees.
Several domestic companies, such as Dixon Technologies, VVDN and Netweb, are among the applicants under the IT equipment 2.0 system.
