Govern­ment may waive bank guar­an­tee norms for mo­bile com­po­nent im­ports

Electronics Bazaar - - Industry News -

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.

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