Indian Forging Industry comes out with its wish list

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Chandigarh | Published: January 16, 2015 5:42:01 PM

The Indian Forging Industry has demanded creation of a dedicated Technology Up gradation Fund...

The Indian Forging Industry has demanded creation of a dedicated Technology Up gradation Fund, special rebate in interest rates, level playing field for forging units situated away from ports and availability of skilled manpower to make the industry competitive.

Vice-Chairman of Association of Indian Forging Industry (AIFI), Ranbir Singh and Chairman of Northern chapter of AIFI, Capt Alok Sharma at a joint press interaction told here today that the forging industry has pinned high hopes on the new government at the Centre and expects it to take necessary steps to ensure that steel prices should be in tandem with international prices. They said that Indian trade policies should be reviewed in a holistic manner to make it more competitive.

The government should take necessary steps to help companies reach out to international buyers, share relevant industry information via Indian consulates in respective countries, creating opportunities for participation in trade shows at a discounted price, participation in buyer seller meets/events and gathering of   market intelligence. The Government should also consider investments in development of power generation infrastructure and distribution mechanisms.

Ranbir Singh and Capt Alok Sharma said that the Government should help facilitate creation of shared infrastructure and capacity development for R&D and testing labs. Schemes run by institutions like National Manufacturing Competitiveness Council (NMCC)and some Ministries like Micro-Small and Medium Enterprises (SMEs) can be tapped to meet financial requirements of setting up such facilities. Awareness about such organizations and schemes is also very low which needs to be worked upon.  The Government should create awareness among SMEs about the need for getting credit worthiness rating done. There is also a need for creating awareness among the SMEs about availability of low cost institutional equity capital and risk capital funds for expansion plans of SMEs.

The AIFI is of the view that the forging industry has always been a major growth driver of the Indian manufacturing sector and is one of the important industries for the success of automobile, power sector and general engineering in the country. The AIFI is the umbrella organization of the forging Industry in India with more than 250 members across India. Its members’ products include rough forgings and/or machined parts like Crankshafts, Connecting Rods, Camshafts, Shifted Fork, Steering Components, Crown Propeller Shafts, Gear Box Components; Crown Wheel and Pinions, Front Axle Beams, Rear Axle Shafts, Earth Moving Link, Railway Tyres, Flanges/Pipe Fittings, Industrial Valves etc.

During the year 2012-13, the installed capacity of forging entities was estimated to be around 37.7 lakhs tonnes or 3.7 million tonnes. The total production of the said entities during FY 2012-13 was about 2.1 million tonnes. The estimated turnover of the 419 entities in FY 2012-13 was Rs 20,200 crore.

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