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TMMA chief highlights issues which hamper revival of machinery sector at 44th AGM

E-Tex - Mumbai

The Union government is likely to formulate a restructuring plan for the domestic textile engineering industry (TEI) in order to meet the growing demand of the textile industry. The Working Group set up by the Development Council for textile machinery industry under the chairmanship of Mr Subodh Kumar, textile commissioner, is currently in the process deliberating on various micro and macro issues. The group is expected to make a set of recommendation based on the paper - Vision 2020, being prepared by Delloitte Haskins & Sells, to concerned ministries on fiscal aspects.

“The Working Group has already made its own recommendations on fiscal matters to the ministry of heavy industries & public enterprises, department of heavy industry. I am sure that these recommendations and those which will be included in the vision paper will guide the industry in achieving its goals,” said Mr Sanjay Jayaverthanavelu, chairman, Textile Machinery Manufacturers’ Association (TMMA) while addressing the 44th annual general meeting recently.

The TMMA chief highlighted a few issues that call for immediate deliberation to revive the machinery sector. They are, among others, non availability of exemption in excise duty on inputs and spares of specified machinery; non availability of concessional rate of imports duty on spares of specified textile machinery, need to granting weighted deduction in tax for investments made by textile machinery manufacturers on R&D activities; non availability of lines of credit on softer terms for exports and need to tackle inadequate infrastructure facilities and high transaction costs.

According to TMMA, at present imports of machinery is permitted under different slabs with or without CVD. In order to avoid multiple duties, it is suggested that a single rate of import duty for textile machines including parts and accessories, and spares should be fixed to compete equitably with foreign machines. Similarly, it is necessary to clean up the excise tax structure on the industry as has been done for the textile industry. Emphasising the need for greater R&D efforts, Mr Jayavarthanavelu asked the machinery industry to gear up to face the new technological challenges. “Tempo of R&D activities could be strengthen if manufacturers associate actively with the projects, being under taken at IIT-Mumbai,” he added.