Monday, August 26, 2013: Falling rupee has made Manufacturers’ Association for Information Technology (MAIT), which is the apex body representing the ICT community to appeal to the government to include Exchange Rate Variation (ERV) clause with respect to the purchase of Goods. If ERV is implemented, it will provide boost to several small and large system integrators and vendors that supply to the government.
“We strongly recommend the Government to implement Exchange Rate Variation clause, as mentioned in the Manual of Policies and Procedures for the purchase of Goods. ERV should be incorporated for all government contracts under the circumstances, including DGS&D, NIC contracts as it provides a win-win solution for both the parties in these circumstances,” said J V Ramamurthy, President, MAIT, CIOL reported.
The IT hardware industry comprising products such as computers, tablets, laptop, printers are heavily depended on imports and hence, are worst affected by fall in rupee. Increase in import cost of the products has led to financial instability of the companies.
ERV clause will require tenderers’ to specify import content and the currencies used for the purpose of calculating the value of import content in their total quoted price in Indian rupees. They maybe required to indicate the Base Exchange Rate for converting foreign currencies into Indian rupee.
