ICA calls for more incentives for mobile manufacturing

New Delhi, Jan 25 (UNI) Indian Cellular Association (ICA) has called for more incentives for local manufacturing of mobile phones to make the country a sourcing hub and meet the demand of 100 million handsets by the year 2010.

The association has further urged Finance Minister P Chidambaram to include telecom services under the consumer price index (CPI) as they have become an integral part of consumer spending.

On an average, mobile phone expenditure by an Indian household has become almost five per cent of an individual's salary, particularly in lower-income groups.

''Our endeavour is to promote mobile phone as an earning tool for aam aadmi (common man). Therefore, we have very strongly recommended bringing telecom services under CPI in our pre budget recommendations (that) we have recently submitted'' said ICA National President Pankaj Mohindroo.

ICA also recommended extending fiscal holidays and capital goods depreciation for original equipment manufacturers (OEMs) for up to 10 years to make them compete with China.

Tax structure for domestic tariff areas (DTA), electronic hardware technology parks (EHTP), export-oriented units and SEZs should be streamlined, ICA suggested.

In order to make the power cost comparable to China, the association asked the finance ministry to give targeted power subsidies and make proactive efforts to market the benefits of the EHTP scheme, which would also prove useful in making the country a major manufacturing hub.

''The government should prepare a model law on mobile governance and encourage states and union territories to accept it,'' ICA said.

The law could mandate users to get information on various services like electricity, water supply and sanitation through a call or SMS.

UNI