Budget 2013: Provide low interest capital to machine tools industry, asks IMTMA
NEW DELHI: The Indian Machine Tool Manufacturers' Association (IMTMA) has asked for low interest capital to machine tools industry for capacity enhancement.
In its pre-Budget memorandum, IMTMA said economic developments in India during the past one year have been volatile, and it did not spare any of the sectors, especially the manufacturing.
"The business in user industries restricted new orders and deferred the deliveries of machine tools manufactured for them. There is a marginal deceleration in demand for metal working machine tools with about 10 percent fall in consumption during April - Sept 2012 due to sluggish demand in automotive industry which consumes about 40 percent of the machine tools in India," it said.
Factors that are hindering growth of the industry includes technology and product gaps, large dependence on imports for critical components, scarcity of specialized machining capacity and capacity constraints, IMTMA added.
It also called for an "IMTMA Machine Tool Industry Park" for capacity enhancement & synergise growth of industry, 'Common Facility Centres' to provide specialised machining facility for manufacturing industries and a 'Machine Tool Technology Development Fund' to foster greater efforts on technology and R&D.