Source: News Bharati English28 Nov 2016 15:19:37
New Delhi, November 28: Amid the ongoing cash crisis, Indian Cellular Association (ICA), mobile phone industry body has requested government to allow use of old Rs 500 and Rs 1000 notes for the purchase of mobile handsets.ICA claimed that they incurred a loss of around 50% due to cash crunch post demonetisation. The appeal about the matter was done to Finance Minister Arun Jaitley. ICA has requested government to allow use of old currency notes of Rs 500 and Rs 1000 against a valid ID proof such as Aadhaar or election card for a period of 30 days.
The association said, "The mobile handset sales have crashed and the sales are down in the brick and mortar channel, which is more than 80 per cent of our turnover the daily collection of our trade and industry, which should be around Rs 350-400 crore is down by 50 per cent."
Adverse effect is seen on cash flow which has created a negative impact on the distribution trade and manufacturing as well. The sales have already lowered and are likely to fall in coming days because of the sowing season, the limited cash is obviously essential like labour, seeds, fertiliser etc, ICA National President Pankaj Mohindroo said.
The ongoing cash crisis is expected to pull down feature phone shipments sharply by 24.6 per cent and that of smartphone by 17.5 per cent during the quarter compared to the previous three-month period.
Also the smartphone and feature phone shipment stood at 32.3 million units and 39.9 million units, respectively in the July-September 2016 quarter.