India - Domestic textile machinery makers want end to sops on imports.

Concerned over the unchecked import of second hand textile machinery, domestic manufacturers have asked the government to stop fiscal sops on imported technology, particularly from China.

"The imports of second hand or used loom and cheap Chinese looms are the greatest hurdles for indigenous development," the Textile Machinery Manufacturers' Association (TMMA) said in a pre-budget memorandum submitted to the government. It also said that the planning commission has observed no subsidy should be allowed for import of any second hand capital goods.

A TMMA delegation recently met textiles minister Dayanidhi Maran in New Delhi and suggested that unrestricted import of the textile machinery in second hand condition should be discouraged.

"The government should not be a party to the technological obsolescence as technology changes in every three-five year period," TMMA delegation further said, adding that such imports should not be given subsidy under the Technology Upgradation Fund (TUF) scheme.

The delegation, led by TMMA chairman Anuj Bhagwati, noted that second hand imported waterjet looms are at least more than 15 years old. However, these looms are being given to the TUFS for benefits, which include interest subsidy.

"We are being burdened with decades-old technology that is less productive, consumes more electricity and is high maintenance," it said.

About 1,354 second-hand looms were imported in 2008-09.

The other TMMA suggestions for the 2011-12 budget include removal of distortions in the excise duty structure.

It suggested uniform rate of 8% excise duty on all items of textile machinery. The duty on parts, components and accessories should be less than 4% to promote its indigenous development.

At present, duty on textile machinery in general is at 10% while on some specific machinery it is 4%. On raw material, parts and components, it is 8%.

Likewise, there are two levels (7.5% and 5%) of customs duty on machinery imports. The TMMA has suggested uniform rate of 7.5%. Besides, the duty on raw material, parts, components and accessories should be less than that on complete machinery.

Source : dnaindia.com