74 SOCIAL SCIENTIST Table 1 BREAK-UP PRICE FOR A TYPICAL 8-BIT COMPUTER SYSTEM, S.No. ITEMS CONTENT RS. CONTENT 1. Main unit with floppy drive $730 4,300 2. CRT Console (12") $45 500 3. Printer (130 column 50 CPS) $500 — $1275 4,700 A. Converted in Indian Rupees 15,570 B Freight &; Insurance 1,570 C. Customs Dutv 75% 12,840 D. Landed Cost of- imported components 30,110 E. Cost of Indian- components 4,700 F. Rejection (5%) 1.750 36,560 G. Software, assembly system integration 30% H. Advertising, over- heads profits etc. 60% 90% Rs. 32,904 Total manufactured cost of computer system Rs. 69,464 Indian components, software etc. ^ Rs. 15,668 SOURCE : Dataquest December, 1984. As can be seen from the Table-1, in terms of .imported content and Indian content, the costs are about equal, if Customs Duty is not taken into account. In hardware terms, the Indian content is only about 25%. The manufacture of chips in India is restricted to Semiconductor Complex Limited, Chandigarh. The manufacture of peripherals hardly exists in this country apart from certain export facilities located in SEEPZ. Further, high level of duties on raw materials in the earlier policy coupled with the extremely low volume of sales, was an effective deterrent to manufacture of peripherals. The earlier policy had earmarked the 8-bit computer market (small systems) for the small-scale sector. Despite this, ORG (Sarabhai group), DCM Data Products, NELCO (a Tata Company) had built a powerful position in this end of the market. ORG claimed only t0 "market" systems, DCM Data Products and NELCO marketed their computers as "business calculators" and were thereby able to circumvent the policy.