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The hype around the
compatible business gets hotter with the Central Vigilance Commission
guidelines, that clubs it with counterfeiting. With a
lobbying from the OEMs, the commission calls upon the government
organizations and PSUs to discourage compatible consumables. On the
flip side, the OEM's exorbitant pricing is incurring heavy losses to
the government exchequer on the IT procurement front. As it has been
recognized as a legitimate business, the re-manufactured compatible
cartridges have already got an acceptance worldwide, but the irony is
that the CVC has inducted it in its circular, issued on Feb 7, 2008,
that disregards counterfeit products, including fraudulently-marked
SMPS and pirated OS software.
Speaking to The DQ
Week, Sanjeev Mahajan, VP-Marketing and Exports, Navran
Advanced Nanoproducts Development International said that, when a
product is being purchased, then its a customers' right to go for any
of the available options, and there should be no compulsion. Citing
an instance of Xerox, Mahajan said, that the company has been
selling re-manufactured cartridges for more than 15 years. "Nearly
50 percent of the HP's business has gone due to refill and
re-manufactured cartridges, and that is why the printing major is
worrying and confusing the government and enterprise sector by raking
this issue," he said.
The new mold cartridges,
that are now being manufactured in China, and doing brisk business
are illegal. According to Mahajan, re-manufacturing business has
reverse economics, and the government can save money if it procures
consumables from the re-manufacturers, and he said that CVC should
act in the interest of the country. "There was a case in the
Uttar Pradesh's Lands Record Department, where all the bidders for
its annual trade contract turned out to be HP partners, and it was
challenged by a re-manufacturer, LaserTech and the contract was
subsequently terminated," said Mahajan.
Singhal, President
of Delhi-based Computer Media Dealers Association (
said that,
they did not get any response from the CVC, despite of taking the
issue with them for the interest of the reseller community. The
association is expected to contemplate a legal course of action, as
the executive members have already expressed its solidarity with
Singhal. "We will take appropriate legal path, and are
considering to file PIL soon after doing home-work on the concerned
issue. During the recent executive meeting, the association members
of CMDA, have already given an authorization to initiate further
action," added Singhal. PJ Thomas, Chief Vigilance Commissioner
could not be contacted.