IT Hardware Industry May Lose Over Rs 1,000 cr if Govt Doesn’t Extend Compliance Deadline: MAIT

The Indian IT hardware industry is up in arms against the governments move to get every electronic product certified for compliance with the Bureau of Indian Standards (BIS) by the first week of April.

The Manufacturer’s Associattion for Information Technology (MAIT) said that the Indian electronics market is set to suffer a major slump in fiscal 2013-14 and Industry may lose over Rs 1,000 crore if the government fails to extend the April 3 deadline of Compulsory Registration Order 2012.

We aren’t sure where they pulled out the Rs 1000 cr figure from but it seems like a genuine concern about the deadline. The association said that companies are ready to comply with the order but needed more time.

The Electronics and Information Technology Goods (Requirement for Compulsory Registration) Order 2012 has banned sale of electornic products unless they meet standards specified by the BIS.

The products include video games, laptop, notebook, tablet and plasma/LCD/LED televisions, to microwave, printers and scanners, telephone answering machines and electronic music systems among others.Television

The MAIT demanded a six month extension to the deadline.

“This will eventually impact the consumers. The shortage and delays in supply will also severely hamper government and private projects, including ongoing e-Governance initiatives in India,” said Mr. J V Ramamurthy, President, MAIT.

The association alleged that since the announcement of this Order in October 2012, the government has been sending notifications and clarification from time to time and last of such clarification was issued as late as the second week of March 2013, creating absolute confusion in the Industry.  “Besides, the country does not have sufficient number of labs to test these products with the fifth (5th) such facility being notified by the government as late as the 3rd week of February 2013,” said MAIT.

Around 8,000 products are to be tested from an average five (5) factories each and these labs take around 4 to 6 weeks to test one product.

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