Use of such machinery to be further restricted
The 53rd AGM of the Textile Machinery Manufacturers Association (TMMA) was held in Mumbai recently. Mr. Dilip B. Jiwrajka, Managing Director, Alok Industries, was the Chief Guest, and Mr. T. Gurumurthy, Joint Director, Central Manufacturing Technology Institute (CMTI), Bangalore, was the Guest of Honor.
Mr. Hari Shankar, TMMA Chairman, addressed the gathering highlighting the activities of the association. The TMMA Export Excellence and R&D Awards were also presented to the member-companies.
In his address, Mr. Hari Shankar observed: “The Textile Engineering Industry (TEI) has currently an estimated annual installed capacity of Rs. 9,100 crores per annum. The total provisional production of textile machinery, parts & accessories during 2012-13 had recorded a slight increase of 7%, i.e., Rs. 5,650 crores, as against Rs. 5,280 crores achieved during the previous year. The utilization of capacity had slightly increased to 62% in 2012-13 as compared to 58% in the preceding year. The demand recession faced by the industry had severely affected the capacity utilization. I wish that capacity utilization would further improve during 2013-14”.
He said import of textile machinery has risen from Rs. 7,500 crores during 2011-12 to Rs. 8,558 crores (estimated) during 2012-13. Import of second-hand textile machines, specifically in the weaving sector (above 82 per cent), was always a cause for concern. Exports during 2012-13 had been estimated at Rs. 1,462 crores as against Rs. 1,523 crores achieved during 2011-12. We expect a better export during 2013-14. Demand recession affected the total production of TEI. The increase in imports has been responsible for a lower share of demand for the domestic industry. However, there are some signs of improvement now. The industry hopes that there would be improvement during 2013-14.
TMMA has been representing to the Government regarding changes in the fiscal policy, removal of hurdles facing the industry and assistance required for improving the technology, production and exports. Specific recommendations have been sent in respect of excise duty, customs duty on complete machinery as well as parts.
Mr. Hari Shankar further said: “Due to our consistent efforts we were successful in changing the Government’s approach towards import of second-hand machinery. We hope to restrict import of second-hand shuttleless looms as well as other textile machinery in the country. The Government has been considering setting up of Common Facility Centres with 80% funding under the public private partnerships (PPP) mode. Such centres will have product development, CAD/CAM facilities, testing facilities, skill development, etc., as a one-stop shop for the textile engineering industry and others.”
Consequent to the above meeting of the stakeholders, the shuttleless loom manufacturers have initiated development and manufacture of shuttleless looms through a consortium approach with the help of IIT or CMTI. A consortium is being formed and the procedure to involve CMTI for the development of a suitable high-speed hi-tech loom is under progress.