Jaya's 'free laptop scheme' hits TN partners?

It has been more than a year that the All India Anna Dravida Munnetra Kazhagam (AIADMK) has assumed office in Tamil Nadu. And keeping in tune with one of its election promises, the Jayalalitha government, through Electronics Corporation of Tamil Nadu (ELCOT), has floated tenders and has been distributing free laptops for the students in schools and colleges across the state.

No wonder, the initiative has been welcomed by the locals, especially youngsters, it has received a mixed response from the channel community. While few say that the move has proved to be a threat for them, some channel partners feel that the business has not been impacted since the laptops do not come with high-end configurations and have been distributed only to the education sector.

Senthil Nathan, CEO, Premier systems, Madurai said,"The impact is very huge and the computer retail is suffering much with the distribution of free laptops," he said adding that there have been no inquiries for entry level laptops. C.Arumugam, CEO, Intech Computers , Vellore, too felt that the inquiries for entry-level laptops have gone down.

However, R.Gnanasivan, CEO, Agni Microtech, Coimbatore, while talking to The DQ Week, said, "We are yet to feel the wrath. The laptops are not given in mass numbers. They are distributing in various phases in different regions. We have to wait and see what is going to happen. "

B.Kuberan, president of Confederation of Information Technology Associations (Confed-ITA) and CEO, VBK Computers, Trichy, said, "There is a dull scenario everywhere and truth is that many partners think this as a reason for that. Only by giving laptops for free, the industry cannot suffer. In fact, seeing in longer terms, it may help the industry grow further." Kuberan, however, added that the laptops should not be sold by the beneficiaries.

Few partners also feel that with a large number of students using laptops, the accessories' business will automatically emerge.

"Since the laptops come with basic features the students who have got that want to upgrade it with features, " opined Arumugam. Gnanasivan also feels same as he said,"The scheme is not applicable for students pursuing in private institutions. Distributing free laptops only to a particular set of students may induce the eagerness and desire of other set of students to purchase it. Nothing can be predicted at this point of time."