PSUs defy CVC on IT procurement

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Blame it on the
unavailability of OEM cartridges and consumables or the availability
of low-cost compatibles, the printers' consumables market is raking
under market constraints. There is an apparent confusion over the IT
products procurement, primarily the printer cartridges and
consumables within the government sector. The guideline, which the
Chief Vigilance Commissioner (CVC) issued in order to curb the menace
of counterfeit and refurbished IT products on Feb 7, 2008 said that
all PSUs, government departments and ministries, and autonomous
organizations should procure such products, including cartridges and
consumables from the OEMs. The commission's style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">Chief
Technology
Examiner has also cautioned about the usage of
those IT products which are freely and readily available in the
market.

An investigati style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">on
by The DQ Week revealed that, on contrary to CVC
guidelines, the PSUs are procuring 'compatible' printers' consumables
from local manufacturers style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">.
BSNL,
Rohtak floated a tender on style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">
Aug
12, 2010 to procure such products from local manufacturers. In
addition BSNL, Kota had also invited bids for computer cassette of a
local make. West Bengal Pollution Control Board in its tender notice
expressed its desire to procure ProDot cartridge and ribbons for
Epson LQ 300+ printer. VV Giri National Labour Institute, which is an
autonomous body of the Ministry of Labour and Employment in its
recent tender has invited bids for compatible computer stationary.
Bharat Heavy Electricals Limited, Indian Oil Corporation, State Bank
of India, Videsh Sanchar Nigam Limited, Oil and Natural Gas
Commission, Mahanagar Telephone Nigam, Punjab National Bank, Steel
Authority of India and Delhi Electric Supply Undertaking are among
those, who procure compatible consumables from local manufacturers.

ProDot and SoftTree are
among those local manufacturers, who are doing a brisk style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">
business, poaching the market share of printer OEMs. The
Cartridge Refilling and Re-manufacturing (CRR) industry is buoyant
about the market potential. India is a price-sensitive market, and
over the period of last couple of years, the printer vendors have
lost around 40 percent of their market to these locally grown
refillers and manufacturers. But on the flip side, these refillers
and manufacturers are offering business opportunities to local
traders and generates employment. In addition, these low-cost
locally-available options are readily available and reduces
dependence on imports. The Computer Media Dealers Association (CMDA)
in its communication dated Aug 6, 2010 has urged CVC to take a
rethink on its IT procurement guideline so that the local
manufacturers and refillers are not reprieved of the opportunities in
the government sector, and the imports of MNCs should not be
encouraged. The association also said that the circular should be
withdrawn for the interest of trade in the country. "The cost of
OEM printer cartridges and consumables are high and therefore the
customers are looking for quality-driven compatible products, which
should be accepted by the government," said Puneet Singhal,
President, CMDA.