To meet the growing demand for technology development in the machine tool sector, the Indian Machine Tool Manufacturers' Association (IMTMA) today urged the Government to extend it Rs 2,000 crore grant.
"The industry will be investing Rs 2,000 crore over the next 10 years on technology development to enhance its competitiveness and the Government should provide a similar matching grant as corpus," IMTMA past president C P Rangachar said at a press conference here.
The entire investment and the corpus fund would be utilised in extending loans to manufacturers at lowest interest rate to carry out technology development, he said.
The machine tools manufacturing sector has gained the momentum of growth, he pointed out, adding, "things have changed with a bang after two year economic recession."
The demand and production of machine tool during 2011 was expected to touch an output of Rs 3,100 crore and Rs 7,560 crore mark by 2015-16, he said, painting an encouraging trend in the growth of the sector.
By 2010-20, production would witness nine fold increase to reach a level of RS 23,000 crore, he said.
On challenges facing the sector, Rangachar said getting finance for the industry was an issue, as the the machine tools industry was considered a high risk industry by banks.
He stressed on the need to increase production capacity on a wider product base to meet demands of aerospace, energy, defence, construction, health and other industries with good financing from banks.
Rangachar demanded that banks allocate a separate budget for lending to machine tool industries.
IMTMA also reiterated its plea to the government to sanction Rs 1,400 crore funds for establishing machine tool park.
Rangachar said the proposal had evoked a positive response from the Government, which now plans to set up a park on a pilot basis and upon evaluating its success, spread it to other parts of the country.
The industry also made demands like regulating import of used machines and keeping the machine tool industry out of FTA, upgradation of IITs for increasing skilled power and engineering colleges starting courses on machine tools.
The 15th IMTEX being organised by IMTMA will be held here from January 20-26, showcasing innovations and technological refinements in the machine tools sector.
Twenty three countries, besides India will participate in the event, IMTMA Media Chairman Shailesh Sheth said.
