Mumbai, Jan 14: The textile machinery and its accessories export has come down by around 49 per cent in last three years, following heavy recession in the textile industry. Even the domestic production has come down by 26 per cent in the same corrosponding three-year period to 1999-2000.Against the installed capacity of textile machinery and parts of around Rs 3,600 crore, the actual utilisation was only 30 per cent. The total production of textile machinery and parts during 1999-2000 was placed at Rs 1,111 crore, which was lower from Rs 1,500 in 1997-98 and Rs 1,138 crore in 1997-98. During the same period, the exports of textile machinery and parts have slid to Rs 170 crore from Rs 258 crore 1998-99, down from Rs 333 crore in 1997-98.
Addressing the 10th annual general meeting of the Federation of Indian Textile Engineering Industry, co-chairman, MD Vora said: "There has been a recession in the textile industry, which has contributed to a downtrend in both production and exports of textiles machinery and parts.
Its share in the supply to Indian textile mills and looms had dropped from a high of 82 per cent in 1991-92 to 40 per cent this year''. Coupled with competition of cheaper machinery from neighbouring countries with Taiwan, China and others the situation has worsened over the past three years.``These countries are able to sell its machinery at very cheap prices, which the domestic industry is not able to match''.
Commenting on the Government's plan to allow duty-free imports of new and or old machinery without export obligations, Mr Vora further warned saying that ``if accepted and implemented this will turn the domestic textile industry industry into a junkyard of discarded machinery from developed markets''. He further said that, the new textile policy announced by the textile ministry has given a severe jolt to the textile machinery industry, by simply omitting them from the policy statement. Whereas, textile policy 1985, had laid down a clear line of action for developing the textile machinery industry, in the country to meet the machinery requirements of the textile industry both for modernisation and expansion.
Minister for heavy industry and public enterprises, Manohar Joshi said that, "Our machinery manufactures particularly in the weaving sector are suffering from product obsolescence. They are losing their competitve edge vis-a-vis imported machines, such as high speed shuttleless looms etc. There is no way out but to upgrade their existing technology to produce machinery of international standard, so as to meet the demand of garment exporters who require high quality fabrics of seamless variety for meeting the export commitments".
The minister gave away awards for six different types of export of textiles machinery and parts. The highest export award for the year 1999-2000 was given to Lakshmi Machine Works ltd, for parts and accessories to M/s Precision Rubber Industries Pvt Ltd.
Absence of machinery policy to be rectified
The Union Heavy Industries and Public Enterprises Minister Manohar Joshi today expressed ``surprise'' at the absence of provisions for the textile engineering industry, in the recently announced textile policy. ``If true, it is a serious lapse and the heavy industry ministry will make an effort to include important segments in the policy," Mr Joshi said addressing the 10th annual general meeting of the Federation of Indian Textile Engineering Industry here. The Satyam committee on textiles had dwelled at length on growth of indigenous textile machinery, but the sector does not find a presence in the new textile policy, official sources said. ``The policy is a roadmap and not the last word on the topic. Amendments are always possible to incorporate provisions for textile machinery industry'' On demand to clamp restrictions on textile machinery imports, Mr Joshi said ``under the WTO regime we can not stop foreign machinery entering India but can certainly put a restriction on import of used machinery byspecifying criterion''.
(PTI)
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