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Explore the Textile Engineering Industry in India with insights on technological capacity, issues, actions taken, and progress on government-supported projects, contributing significantly to the competitiveness of the Indian textile sector.
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TEXTILE ENGINEERING SECTOR Mr. Prakash Bhagwati Chairman, Textile Machinery Manufacturers’ Association (INDIA) Industry Meeting with Mr. R. K. Singh, Joint Secretary, DHI MOT 21st April, 2014, UdyogBhavan, New Delhi
TEI – AN OVERVIEW • The TEI in India is one of the five key capital goods industries • Consists of more than 1400 units, with a total investment of Rs.7,800 crore* • More than 80% of the units are SMEs* • Capacity is Rs. 9350 crore* • Provides direct/indirect employment to > 250,000 people* • TEI contributes greatly to the competitiveness of the Indian Textile Industry (TI) • Meets 45-50% of the demand of the Indian textile industry* * (Source: Textiles Committee Survey & TMMA)
TEI – TECHNOLOGICAL CAPACITY • Ginning & Spinning – In general, at par with international standard. Foreign manufacturers have their presence in India • Capacity- Ginning - Adequate and there are exports • Spinning- Meets over 75% of the requirement • Items not manufactured - Auto Coner with auto feed and auto doff & high speed rotor spinning machine • Weaving Preparatory –At par with international standard. Enough capacity and production • Weaving (Shuttleless Looms) – • Old technology Rapier Looms (Crank Beat-up - WIR 450-500mpm) • New technology Air jet & Waterjet Looms (not tested commercially well) (WIR 950-1300mpm) • New technology Rapier Looms (untested commercially) (WIR 650-800mpm) • Synthetic Machinery – All kinds of synthetic machines are produced such as Draw Texturising, TFO Twister, H.S. Winder etc. except fibre/filament manufacturing chemical plant
TEI – TECHNOLOGICAL CAPACITY • Processing Machinery – Technology gaps exists • Many hi- tech machineries are being manufactured for ex. Continuous Bleaching Plant, Dyeing Plant, Washing range, Preshrinking Range, Indigo dyeing Plant etc. • Some of the special purpose machineries are not yet developed • Existing capacity meets over 50% of the requirement • Jute Machinery – India is the predominant player with obsolete technology • Parts/Components and Accessories – • Except some critical parts, most of the items are manufactured • High speed cam dobby, electronic dobby and jacquard not manufactured • Testing Equipment – At par with international standard - Limited imports • Items Not Manufactured – • High speed Garment making machinery & Knitting machinery • Machinery for technical textiles and Non-Woven and Embroidery machinery
TEI – ISSUES • Need to Encourage Policy to FDI for Capacity Expansion & Technology Up-gradation • Address Fiscal Policy Constraints & Anomalies • Unfavorable Import Duty Structure– As there is nil duty on components for shuttleless looms as well as shuttleless loom itself. • Reluctance of Scheduled Banks– In financing even deserving MSMEs despite clear instruction from Ministry; adversely affecting modernization (term loans) and growth (working capital) of TEI. • TUFS– On /OFF Problem and lack of clarity. • Used Machines Freely Imported– With all TUF benefits available.
TEI – ACTIONS • Setting up of Common Facility Centre–Near Bardoli, Surat, MOU had been signed • Loom Development Project–By consortium approach through CMTI Bangalore, consortium agreement signed • Development of Jute Machinery Industry – Assistance needed from Govt. • Skill Development Programme–Under the aegis of Capital Goods Skill Council - Under progress • Proposing tie ups/Joint ventures–With foreign manufacturers for fulfilling the technology gaps • Statistical Research– Study/survey of industry
PROGRESS ON GOVERNMENT SUPPORTED PROJECTS • Approval of the CFC Project – Total outlay of Rs. 48 Cr - Industry Consortium & an MOU is being signed for land & building. • Approval of Loom Development Project – Total outlay of Rs. 20 Cr –Industry already formed a consortium & pooled Rs. 4.0 lakh, DPR submitted • Technology Acquisition Fund – Grant required from DHI, made available for filling tech gaps identified (Europe, not China) • Statistical Research –Access to DGCIS data on import & export (daily transaction data). • Impetus from DHI – For the Skill Development initiative & RRTUF Scheme • Support Centre – Jute Machinery Development & Training Centre • Second Hand Import – Define vintage, No TUFS, No ‘0’ Import Duty. • Introduce Scheme Similar to TUF – For modernisation of TEI