Government may waive bank guarantee norms for mobile component imports
Mobile handset makers may get some relief as the government is expected to ease bank guarantee norms for the import of components at concessional duty rates for local manufacturing. The Prime Minister’s Office convened a joint meeting with members from the industry and officers from the relevant ministries recently to look into the impediments being faced by mobile makers in India.
Industry players raised concerns over huge capital getting blocked in bank guarantees given as assurance to the customs that the items imported by them on concessional duty rates will not be retailed in the market and be used solely for making mobile phones. The PMO has taken note of the concerns of mobile manufacturers related to IGCR (Import of Goods at Concessional Rates) and will address them so that the bank guarantee is waived at least for companies with a good track record. Bank guarantees amounting to as much as ` 290 billion have been furnished by companies.