PCAIT Responds to the MHA Letter for Selective Opening of Lockdown

On 15th of April the Ministry of Home Affairs released a circular informing about the extension of lockdown till 3rd of May. Further, certain industries, self employed people and supply chain related activities were decided to open up after 20th of April in the areas which didn't have Corona cases.

The IT channel community however, feels that the IT hardware were not allowed to be sold in retail when lockdown was relaxed, while its manufacture in the country was allowed. Saket Kapur,Former  General Secretary, FAIITA and a member of PCAIT, released a letter addressed to the MHA apprising them of the concerns of the channels. Following is the text of the letter -

Dear Sir,

With reference to MHA guidelines dated April 15th 2020 on conditionally starting economic activity in certain business verticals and geographical locations from April 20th 2020. On bare perusal of Clause 14(ii)&(xi) of the said guideline it can be safely concluded that Retail of IT Hardware and Service rendered by organisations through B&M outlets is not permitted. However on the contrary commencement of sale of both essential and non-essential goods through rival OLS platforms from April 20th 2020 when the lockdown is relaxed, is a matter of great concern for the countrywide Brick and Mortar channel which is carrying huge unsold  inventories owing to targets based on forecasted sales for the month end and financial year end.

In wake of likelihood of the continuation of Lockdown until the transmission curve of brutal Corona Virus is flattened, more and more sectors are embracing technologies to work from home and need reliably latest IT hardware for same. It is a matter of grave concern for the B&M channel that most of the accumulated demand for fulfilment from April 20th 2020 will get diverted to rival OLS platforms thus further adding to the woebegone of B&M channel thus causing inter alia issues related to payment default and severe cash flow issues.

Further to telephonic conversation in this regard with Shri Alok Gupta, President, PCAIT, on behalf of each and every channel partner of this country, it is suggestively reiterated that orders can be aggressively booked on respective brand owner portal while the B&M channel can be used for on-site delivery/fulfilment of same. Modalities, modus operandi, and modus vivendi can be deliberated and construed with the intent to move the unsold stock of B&M Channel partners to generate adequate liquidity to trigger start the payment cycle. The B&M IT Channel is fearing the worst in these times of uncertainty and despair. Your kind consideration to aforesaid suggestion or any other initiative which can liquidate the unsold stocks and revive the business will inspire confidence and infuse much required motivation to tide over the current crisis.

Looking forward for your earliest empathetic response to foregoing distress call of the offline IT channel.

Regards

Saket Kapur

(Letters are sent to the OEMs  for their support to liquidate partners' stocks, by routing direct orders coming to OEM websites via partners)