Lenovo set to play major role in TN Govt’s free laptop scheme

Chinese PC giant Lenovo India will supply major portion of laptops in the upcoming fourth and fifth phases of the Tamil Nadu government’s free laptop program from the implementing agency, Electronics Corporation of Tamil Nadu Ltd (ELCOT).

According to the Business Standard report, Lenovo will supply about 60 per cent of the 1.1 million units, worth about $150 million (Rs 950 crore), through the next two quarters. Two other vendors, Acer and HP, will supply the remaining units.

"With this big deal, we will definitely become the number one this quarter and the next. So, while our market share will get a boost with this mega contract, we track our market share with and without (such government contracts)", the news portal quoted Rahul Agarwal, managing director of Lenovo India as saying.

According to IDC’s Asia Pacific quarterly PC tracker, Lenovo was third in the overall PC market in India in the quarter ended March this year, with a share of 19.8 per cent. While HP was first (26 per cent market share), Dell was second (23.4 per cent).

Meanwhile, ICMC Corporation Ltd, has filed a petition with the Madras High Court seeking direction to quash the latest tenders awarded to three companies for supply of laptop under the free laptop scheme.

The Business Standard reported that ICMC Corporation Ltd has alleged that the major laptop manufacturers have violated the tender norms by providing misleading information in the Phase III tenders. According to the report, the court on Tuesday admitted the petition, and fixed the next date of hearing in August.

Tamil Nadu’s free laptop program for school children was one of major promises of the All India Anna Dravida Munnetra Kazhagam ahead of the 2011 Assembly elections in the state. So far, the state government has distributed about two million laptops under the program, across three phases.