IMTMA policy initiatives with the Govt. and Outcome 1 Indian Machine Tool Manufacturers’ Association Interface with various Government departments…. Presentation by P J Mohanram, Sr. Advisor, IMTMA 28 August 2019
Govt. Policy & Advocacy 2 I. Why Policy Advocacy ? To Promote growth & development of Machine Tool Industry. Supportive policy initiatives are submitted and actively followed up with GoI. 2. How is Policy Advocacy pursued? (i) Driven by Secretariat (ii) Support of Past Presidents (iii) Formed a Policy Advocacy Sub Committee in EC for consultation (iv) Work with Industry Association : CII, FICCI, ACMA, SIAM
Key Points of Interface 1.Government Departments 3
Key Points of Interface 2.Institutions/ Academia/R&D/Others 4
Roadmap on Policy Advocacy 5 Vision Document & Perspective Plan 2010 - 2020” (Ten-year perspective i. documented jointly by DHI and IMTMA) (Link: https://www.imtma.in/userfiles/file/vision_&_pp_report-ref.pdf ) Report of the Sub-Group on Machine Tools - published by ‘Working Group on i. Sector’ Capital Goods & Engineering as part of the 12th Five-Year Plan (Link: https://www.imtma.in/files/IMTMA/Schemes/WG_CGES_rep_2011-17.pdf ) ii. Technology Roadmap for Machine Tools – (drafted jointly by PSA and IMTMA) (Link: https://www.imtma.in/userfiles/file/mt_technology_roadmap_ref1.pdf )
Roadmap on Policy Advocacy 6 iv. Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector (Link: https://www.imtma.in/files/IMTMA/Schemes/Indian%20Capital%20Goods%20Sector.pdf ) v. National Capital Goods Policy 2016. (Link: https://www.imtma.in/sections/81/government-schemes ) vi. Development Council for Machine Tools
Significant Outcome from Policy Advocacy 7 1) PSA supported R&D Projects (100 % Govt. funded) – { 4 Projects of apprx. Rs 9 Cr + AMMTF , Rs.7 Cr} (2009 onwards ) 2) Advanced Machine Tool Testing Facility (AMTTF) – (DIPP, MoC & I, CMTI & IMTMA support) (Est.2011 ) www.amttf.in 3) DHI Scheme for Enhancement of Competitiveness in Capital Goods sector (2015) 3.1) Technology Development : Advanced Manufacturing Technology Development Centre (AMTDC) {in partnership with IIT-M} - (DHI) - (11 projects under implementation: Total Cost Rs. 55 Cr./ DHI grant @ 80% - Rs. 44Cr.) 3.2) Industrial Infrastructure Development : Tumakuru Machine Tool Park (TMTP) - (DHI and GoK - KIADB, IMTMA support) 3.3) Technology Acquisition Fund Programme (TAFP)
Significant Outcome from Policy Advocacy 8 4. Customs Duty reduction on three critical components [CNC systems; ball- screws; & linear motion guides] – on CNC Turning Machines and Machining Centres – (MoC & I) (2015) 5. Exchange rate variation (ERV) on import content of Machine Tools and payment by LC in procurement by OFB - ( MoD) (2016) 6. Framing of key standards for various segments and features of metalworking machine tools – in partnership with BIS as part of its key Committees.
Suggestions from IMTMA to GoI for transforming CG Sector 9 Technology Depth in Machine tool and Capital Goods Sector: Weighted deduction for R&D expenditure to be continued for supporting investment in R&D by industry. Continuation of the scheme on “ Enhancement of Competitiveness in the Indian Capital Goods Sector” Recommended a system of “ Risk sharing Contract Development Order” as a long term capital goods requirement For strengthening domestic technology capabilities. Judicious waiver and relaxation of “Prior supply clause” in Tenders floated by Govt. agencies National mission mode for ‘ developing critical technologies ‘ like ball - screws, linear guides, spindle & axis motors and CNC systems
Suggestions from IMTMA to GoI for transforming CG Sector 10 Enhancing investment in Capital Goods Sector: Allow Higher Depreciation on domestically manufactured machine tools and capital goods at 25%; Faster upgradation promotes investment Implementation of Public Procurement Order-2017 - applicable across Union govt., State govt., govt. undertakings which will encourage manufacture of capital goods in India through technical collaboration & Joint Ventures & FDI Payment for MSMEs’ may be made mandatory by LC, beyond a threshold value, which prevents delayed payments leading to liquidity crisis & sickness Establishing state-of-the-art sectoral industry parks with Indian and overseas presence, for additional capacity & employment generation. New schemes to finance MSMEs’ for ensuring adequate working capital.
Suggestions from IMTMA to GoI for transforming CG Sector 11 Enhancing Market Reach of Capital Goods Sector: Universal Implementation of “Public Procurement Order- 2017” - applicable across Union govt., State govt., govt. undertakings, Union and State public sector enterprises/undertakings and govt. controlled boards. Govt. Tender terms favour imports against domestic manufacturers of capital goods. Tender terms to be modified to offer exactly the same terms to Indian manufacturers as offered to foreign manufacturers. Revisit all free and preferential trade agreements to ensure Indian machine tool industry is not disadvantaged through reduced customs duty & dumping Remove Zero customs duty imports where Domestic capacity exists Discourage import of used machine tools: Restricting imports only to actual users Increasing Customs duty to 35% on such imports Disallowing depreciation allowance on such imports
Suggestions from IMTMA to GoI for transforming CG Sector 12 Export promotion of Machine Tool and Capital Goods Sector: Setting up of “Brand India Engineering” centres at chosen foreign locations where domestic manufacturers can rent space to display, market and service capital goods and engineering products. Proposed inclusion of machine tools and capital goods in the list of Products and services eligible for “Discharge of Defence offset Obligations” which can give a thrust to exports & meeting defence offset obligations Employment and Skilling within the Machine Tool and Capital Goods Industry: Development of High-tech training centres in manufacturing – like Digital mfg., Industry 4.0, AI, Data Analytics, Virtual Reality, Augmented Reality, machine learning, Cobotics, 3D printing. Cost of training through Government schemes may be recoverd from the employer and candidate suitably once they are employed after successful completion of training
Suggestions from IMTMA to GoK for framing Industrial Policy 2019-2024 13 1) Setting up a CEFC at TMTP, Vasanthanarasapura for offering services and support to Tumakuru Industrial clusters 2) Creation and Upgradation of Industry4.0 training, demonstration and try- out Centres in Govt. funded institutions, industries and Industry Associations 3) Support for Direct Digital Manufacturing : Creation of facilities for 3D printing-plastic and Metal on pay per use basis
14 Thank You
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