Manufacturers’ Association for Information Technology (MAIT), the apex body actively representing ICT Manufacturing, Training, IT, Design, R&D and associated services sector, has welcomed the Government initiative to recognize and endorse the Exchange Rate Variation (ERV) Clause in Government & Public Sector procurements.
The ERV clause, mentioned in the ‘Manual on Policies and Procedures for purchase of Goods’ allows an organization to quote an appropriate exchange rate on the date of tender release, to mitigate impact of component price escalation. MAIT has also requested Ministry of Finance for inclusion of the ERV clause in the upcoming Public Procurement Bill, which will give a sound direction to all procurement agencies.
Lauding the government’s move, MAIT President JV Ramamurthy said, “Ratification of Exchange Rate Variation (ERV) Clause in Government & Public Sector procurements has provided the much needed support to the industry. This was one area where we needed support from many Departments and officials and the Government has shown great resolve in taking appropriate steps for the benefit of the industry.
Ramamurthy also thanked the Secretary, Department of Economic Affairs, Joint Secretary Budget (Ministry of Finance) and Secretary Revenue for their efforts to endorse the Exchange Rate Variation Clause.MAIT had, in year 2012, urged the Government to include ERV clause in all government projects to safeguard the Indian IT Hardware Industry from pressure of constantly strengthening Dollar rate. The steep slide saw devaluation of Rupee by 24% against the US Dollar in a year and was the steepest declines among the Asian currencies.