

NEW DELHI:The government has slashed the duty on a key component of TV panel to 5% from 10% at present, giving relief to companies. TV makers said the move will drive in affordability and lead to creation of manufacturing jobs.

The 10% duty had been imposed on ‘open cell’, the most critical part in a TV panel, in the Union Budget, which had prompted companies to look for a 5-6% increase in retail price. Also, they had complained that the measure would impact job creation as import of fully-built TVs would become more lucrative than making them in India. TOI had highlighted the problems faced by TV companies in a report carried in the March 17 edition.

“This is a progressive and promising move by the government and will lead to production of panels in the country in a large way,” Ravinder Zutshi, senior director at LG India, told TOI. “Affordability of TVs will be maintained and we are hoping that TV sales will gain momentum.”

Manish Sharma, president and CEO of Panasonic India, said the government’s ambitious ‘ Make in India ’ programme will gain from the move. “This will help develop new capacities for TVs within India. Going forward, the consumer electronics industry can look forward to a developed manufacturing ecosystem, while creating job opportunities.”

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) had petitioned the government for a withdrawal of the duty. Apart from the open cell, the government had also imposed a 15% import duty on fully-built panels.

Companies said with the duty on open cell coming down, manufacturers would now look at assembling panels within the country. “Almost 90% cost of a panel is on account of the open cell. With this duty reduction, more companies will be encouraged to assemble panels here,” an industry official said, seeking anonymity.

Sunil Vachani, chairman of contract manufacturer Dixon, said companies will now go for expansion. “Making panels is a labour-intensive job. We will hire more.”

Around 1.7 crore TV sets are expected to be sold in India this fiscal, generating revenues of about Rs 25,000 crore. Nearly 11,000 people are estimated to be directly employed in TV manufacturing, while another 33,000 work indirectly.

The move to increase duty had impacted companies across the spectrum, including LG, Samsung, Panasonic, Sony, as well as contract makers such as Dixon and Super Plastronics.

