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New Delhi, Nov 6 : At a time when demand in the auto industry has slowed down, payments from OEMs to vendors are getting delayed, loans for capacity expansion are difficult to secure and even disbursement of those loans that have already approved by banks, is being deferred, the Automotive Component Manufacturers Association is seeking an immediate redressal package to combat the economic meltdown.
As part of its two-three year ‘bridge policy’ proposal that will enable the industry survive the current economic crises, Acma is seeking reduction in custom duty on key raw materials. According to JS Chopra, president, Acma, the customs duty on key raw materials, especially all categories of alloy and non-alloy steels, should be reduced to zero and the ongoing and approved funding by the banks for capex needs of the industry should continue without any disruption.
Acma feels that the government should take immediate steps to shore up liquidity in the financial system and evolve special loan schemes for the auto components industry at concessional rates of interest. Even loans for SMEs should be rolled over by a few quarters to allow them more time to pay back.
Since large projects would provide the much needed multiplier effect for the automotive industry, Acma is seeking special precaution to ensure that infrastructure projects do not get delayed or deferred at this time of economic crises.
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