Exclusive: Aakash tablet alive and well, says DataWind CEO

In the wake of the recent controversy over alleged delay in supply of Aakash tablets, DataWind CEO Suneet Singh Tuli seeks to clear confusion.

In this interview with Prasanto K Roy, editorial advisor to CyberMedia, he talks about how he is determined to take the Aakash project further and that nothing can dampen his spirits.

PKR: Is the Aakash dead?
Suneet: The Aakash is very much alive, even though detractors are gleeful in proclaiming the project's premature demise. The program is on track, barring a few weeks delay caused mainly by Customs issues.
PKR: The HRD ministry has been saying there were too few units received. Why is there such a gap here with your information?
Suneet: I don't think there's a gap in the statements regarding quantities received. As for the delays, see my chronology (click here to see the chronology).

PKR: The media has been quoting the MHRD suggesting they have to look at other options.
Suneet: I think the messaging from MHRD has been misinterpreted. Meanwhile, they seem to be aggressively moving forward with announcing the next tender for 5.7 million units.

PKR: How many Aakash units were supplied by March 31, 2013, to the government of India?
Suneet: To date we've supplied 42,100 to the government and by April 9, a further 24,000 units will take it to 66,000. The final 35,000 will take another three weeks, at about 12,000 a week.

PKR: How many commercial units to retail buyers - the UbiSlate models?
Suneet: Commercially we've now hit 500,000 units. The commercial product is primarily the UbiSlate 7C+ (GPRS and EDGE versions).

PKR: Was "Made in India" a good idea, in hindsight? You told me last year that "Made in India" wasn't thrust upon you by the govt, even though it would have made far more sense to make this device in China.
Suneet: You know that manufacturing in India is one of my passions. From a commercial perspective, you are right, it would have been more efficient and cost-effective to manufacture the product in China. Unfortunately the duty structure for bringing components to make product in India is higher than for finished goods. The bureaucratic processes make manufacturing in India very difficult. But that does not mean we should kill off the Indian manufacturing industries. Instead we should figure out how to solve the bureaucratic red-tape that makes Indian manufacturing uncompetitive.

PKR: But Suneet, the primary objective for the Aakash was education. Not manufacturing
Suneet: I am a big believer that local manufacturing needs to be nurtured - it is essential for long-term job growth and innovation. This is a recognition even in the US, where the Buy America act is being enforced on major government projects. You are also right that Indian manufacturing serves a different purpose than that of Aakash for education, but I believe that when governments spend tax payer's money it should use it to nurture local industries and generate jobs.

PKR: Isn't it a fact that if this tablet had been outsourced to Chinese EMS vendors it would have happened a year or more ago?
Suneet: Although manufacturing all of it in China would have certainly expedited delivery, the difference wouldn't be a year, if you see the chronology (click here to see the chronology). As with our commercial (UbiSlate) supply, if we'd decided to manufacture all the Aakash government units in China too, it is possible that would have been faster, but the logistical bureaucratic entanglements may still have been there.

PKR: Is the manufacturing ecosystem in place to make so many tablets in India?
Suneet: It is a misconception that no manufacturing industry exists in India. Manufacturing accounts for 16% of GDP. Nokia has manufactured over a half billion mobile phones in India. We now have four manufacturers in India assembling Aakash2 devices, and more importantly we've set up India's first touch-screen manufacturing facility, to be inaugurated shortly. The multi-touch projective capacitive touch-screens made in India are being used for Aakash2 devices.

PKR: So you're saying the project is on track, barring less than a month's delay?
Suneet: Yes. While the three-week delay beyond the March 31 target has created a huge uproar in the media, it should not undermine the project in any way. I keep reminding people, India is famous for handing its winning world-cup cricket team a fake trophy, since the real one couldn't be cleared from customs in time. We've not given up playing cricket because of that. So, we won't give up on our dream of improving the quality of education for the masses or developing an electronics manufacturing base in India.

• Aakash Chronology (as outlined by Datawind)
• Oct. 2011 to April 2012: Aakash1 saga with IIT-Rajasthan: Military-grade test criteria; IP breaches; circumvented relationships with our subcontract manufacturers, etc.
• May 16, 2012: Project transferred to IIT-Bombay, and orders and LC issued by IIT-Bombay.
• August 29, 2012: Final specs approved for Aakash2 after product testing
• Nov 5, 2012: IIT-Bombay accepts and issues Golden Samples
• Nov 11, 2012: Launch of Aakash2 - 14,100 devices delivered
• Nov 10 to Dec 14, 2012: Indian customs stops further clearances under IIT-Bombay's exemption certificates pending verification and reconciliation with IIT-Bombay
• Jan 2013: Datawind restarts manufacturing. After delivery of 3,000 units, by end of January, Customs again stops accepting IIT-Bombay's exemption certificates
• Feb-Mar 22, 2013: Production lines lie idle, components sit at Customs incurring huge demurrage.
• Mar 23, 2013: Customs accepts verifications/confirmations provided by IIT-Bombay and starts clearing goods.
• Mar 23-31: 25,000 units delivered (cumulatively 42,100). The rest to be delivered within April 2013