Interface with various Government departments. Presentation by P J - - PowerPoint PPT Presentation

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Indian Machine Tool Manufacturers’ Association Interface with various Government departments….

IMTMA policy initiatives with the Govt. and Outcome

Presentation by P J Mohanram, Sr. Advisor, IMTMA 28 August 2019

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• 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

• Govt. Policy & Advocacy

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Key Points of Interface 1.Government Departments

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Key Points of Interface

2.Institutions/Academia/R&D/Others

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i. Vision Document & Perspective Plan 2010 - 2020” (Ten-year perspective documented jointly by DHI and IMTMA)

(Link: https://www.imtma.in/userfiles/file/vision_&_pp_report-ref.pdf)

i. Report of the Sub-Group on Machine Tools - published by ‘Working Group on Capital Goods & Engineering Sector’ as part

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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

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• 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

Roadmap on Policy Advocacy

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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

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• 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

• f

key standards for various segments and features

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metalworking machine tools – in partnership with BIS as part of its key Committees.

Significant Outcome from Policy Advocacy

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Suggestions from IMTMA to GoI for transforming CG Sector

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

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Suggestions from IMTMA to GoI for transforming CG Sector

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.

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Suggestions from IMTMA to GoI for transforming CG Sector

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

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Suggestions from IMTMA to GoI for transforming CG Sector

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

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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-

• ut 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

Suggestions from IMTMA to GoK for framing Industrial Policy 2019-2024

Thank You

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