Handset companies flag approval issues

Handset makers have said that their supply chain partners are still facing challenges for approvals from authorities to start operations, which will impact the manufacturing of mobile devices in the country.

In a letter to Ajay Prakash Sawhney, secretary, ministry of electronics & IT, handset makers added that non-availability of ecommerce and retail in ‘red zones’ is limiting the access of mobile devices to around 350 million people that make 80% of the value market, while availability of labour continues to be a problem. Samsung, Oppo, Vivo and Lava, and Foxconn and Wistron that make devices for Apple and Xiaomi resumed production in their respective facilities in Noida, Tamil Nadu, Karnataka and Andhra from last week, albeit with limited 15-30% capacity.

The government had recently allowed the manufacturing of IT hardware in all red, orange and green zones as per MHA and state guidelines.

“Supply chain of these companies are facing challenges for approval from authorities… without the commencement approval for supply chains, manufacturing of mobile phones cannot continue,” ICEA chairman Pankaj Mohindroo said.

—Business Journal