Hit hard by the floods in Tamil Nadu, auto component industry body ACMA today sought a relief package for the sector while asking both the state and Centre for immediate rehabilitation to help them resume operations.
"In the wake of this unforeseen calamity, there is an urgent need to announce a relief and rehabilitation package for the industry and its employees, especially for the SME segment," Automotive Component Manufacturers Association of India (ACMA) President Arvind Balaji said in a statement.
"The industry must be facilitated to start its operations immediately so that the livelihood of thousands of employees is not adversely affected."
ACMA said Tamil Nadu accounts for close to 20 per cent of the total turnover of the Indian auto component industry and is a significant contributor to the state's economy. The auto component industry in the state employs over six lakh people -- direct and indirect.
In 2014-15, the Indian auto component industry had a turnover of Rs 2.35 lakh crore.
"Apart from adversely impacting the lives of the employees and their families, the floods have led to stalled production for more than three weeks," ACMA said while seeking deferment of sales tax by six months and waiver on electricity tax for four months.
It also called for deferring of Customs duty, service tax and excise duty for six months and extending 100 per cent depreciation on capital equipment damaged.
Further, the body has sought for immediate installation of water pumps in flooded industrial estates, providing uninterrupted power supply to the industry, besides setting up of health camps for employees and their families.
ACMA has also asked for release of long-term soft loans from banks for purchase of essential industrial equipment that have been damaged, expediting settlement of insurance claims in 10-15 days.
