\n
\nPeople aware of the developments said the three BJP-ruled states, likely to go to polls towards the end of this year, have discussed the issue with the phone makers over the last couple of months. Industry insiders said the total numbers of phones that could be ordered are likely in the range of 10-15 million.
\n
\n“There have been talks, the tender for Chhattisgarh has been out,” said Hari Om Rai, chairman of Lava International. The Chhattisgarh government has plans to hand out 5.5 million phones under the Chhattisgarh Communication Revolution Scheme over the current fiscal and the next.
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\nA financial plan of spending Rs. 230 crore on the implementation of the scheme has been chalked out.
\n
\nAccording to industry insiders Reliance Retail’s Lyf brand of smartphones is the top contender for the state’s massive order, and that the deal is likely to be closed soon. The company didn’t respond to ET’s queries as of Wednesday evening.
\n
Congress<\/a> and BJP<\/a> are to face tough contests in Rajasthan and Madhya Pradesh in assembly elections scheduled for the end of this year.
\n
\n“Some state governments are planning to bring out proposals as they have some requirements of smartphones… talks are ongoing,” said Rajesh Agarwal, co-founder of Micromax Informatics. He added that while most would be interested in such large orders, only those with capacity to supply high volumes would be contenders.
\n
A senior executive said Rajasthan was still formalising the number it would require, although it was already holding discussions with interested brands<\/a>.
\n
Analysts said the large volumes hold a lot of promise for Indian players that have been rapidly losing ground to Chinese rivals that have more than 57% of the smartphone market where 10-12 million devices<\/a> are sold each month. Indian players’ share is down to 14%, Counterpoint Research data showed.
\n
\n“Indian handset makers are looking at every possible way they can sell phones that is exclusive to them. This will be a very critical opportunity for them,” said Faisal Kawoosa, head of new initiatives at Cybermedia Research.
\n
\n
\n
\nPeople aware of the developments said the three BJP-ruled states, likely to go to polls towards the end of this year, have discussed the issue with the phone makers over the last couple of months. Industry insiders said the total numbers of phones that could be ordered are likely in the range of 10-15 million.
\n
\n“There have been talks, the tender for Chhattisgarh has been out,” said Hari Om Rai, chairman of Lava International. The Chhattisgarh government has plans to hand out 5.5 million phones under the Chhattisgarh Communication Revolution Scheme over the current fiscal and the next.
\n
\nA financial plan of spending Rs. 230 crore on the implementation of the scheme has been chalked out.
\n
\nAccording to industry insiders Reliance Retail’s Lyf brand of smartphones is the top contender for the state’s massive order, and that the deal is likely to be closed soon. The company didn’t respond to ET’s queries as of Wednesday evening.
\n
Congress<\/a> and BJP<\/a> are to face tough contests in Rajasthan and Madhya Pradesh in assembly elections scheduled for the end of this year.
\n
\n“Some state governments are planning to bring out proposals as they have some requirements of smartphones… talks are ongoing,” said Rajesh Agarwal, co-founder of Micromax Informatics. He added that while most would be interested in such large orders, only those with capacity to supply high volumes would be contenders.
\n
A senior executive said Rajasthan was still formalising the number it would require, although it was already holding discussions with interested brands<\/a>.
\n
Analysts said the large volumes hold a lot of promise for Indian players that have been rapidly losing ground to Chinese rivals that have more than 57% of the smartphone market where 10-12 million devices<\/a> are sold each month. Indian players’ share is down to 14%, Counterpoint Research data showed.
\n
\n“Indian handset makers are looking at every possible way they can sell phones that is exclusive to them. This will be a very critical opportunity for them,” said Faisal Kawoosa, head of new initiatives at Cybermedia Research.
\n
\n
\nWhile such deals would generate huge volume sales, some are wary of large, extra investments such orders would entail. Besides, payments for such bulk orders usually take time which would be a big risk for the cash-stricken Indian players.
\n
\n“The numbers are very high, but a lot of investment will be needed to supply these stocks… and I don’t think most Indian brands have the wherewithal to meet the demand within a short period of time, say around two or three months,” said a senior industry executive who did not want to be identified.
\n
\nThe executive’s company is not participating in the bids, but he said that the order would require a pool of players to meet the estimated volumes.
\n
\n“There’s also little guarantee of when the actual payments are made by the respective governments,” the executive cautioned. Offering free phones have been gaining currency in India before elections.
\n
\nIn Karnataka, the BJP said in its manifesto that women of BPL (Below Poverty Line) families will get free smartphones under ‘Mukhyamantri Smartphone Yojana.’ The Congress has promised the same for students.
\n
\nBJP leader Mukul Roy recently stirred up a controversy after he promised smartphones to first-time voters in Jalpaiguri district in Bengal, if the party emerged victorious in the Zila Parishad.
\n
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