RAKESH SOOD & ASHISH SINHA
Posted online: Monday, June 26, 2006 at 0000 hours IST
The government is considering to set up an independent authority to facilitate investment in plant and machinery (P&M) segment in the textile sector as the country produces only 15% of machinery required by the textile industry at present.
The proposed body would initiate intensive consultations with the manufacturers of P&M from Germany, Korea, Japan, China- the major producers of such equipment for forming joint ventures and technical collaborations with Indian companies. The foreign machinery majors would also be encouraged to set up manufacturing facilities in India under 100% subsidiaries.
Domestic manufacturers will also be given incentives to invest in this area. ¡°The move will speed up the investment inflows through speedy clearance of the proposals. Creation of domestic P&M capacities would come as a shot in the arm for the Indian textile industry,¡± a senior official of the textile ministry told FE.
He said prior to implementing the plan, a survey on the status, annual capacity, actual production, turnover, exports and proposed investment of the textile engineering industry would be carried out.
The government, sources said, was also looking at employing the modal of public-private-partnership in the sector. Currently, domestic P&M industry is virtually discouraged by the import of second-hand machines and concessional customs duty on a large number of textile machines.
The move follows a proposal made by the National Manufacturing Competitiveness Council (NMCC) headed by chairman, V Krishnamurthy. The NMCC discussed the issue at a recent meeting attended by textile secretary DP Singh, AEPC secretary-general KK Jalan and CII textile committee chairman SP Oswal.
It may be noted that capital investments of Rs 55,000 crore have been made in the Indian textile and garment industry during the last three years.
Posted online: Monday, June 26, 2006 at 0000 hours IST
The government is considering to set up an independent authority to facilitate investment in plant and machinery (P&M) segment in the textile sector as the country produces only 15% of machinery required by the textile industry at present.
The proposed body would initiate intensive consultations with the manufacturers of P&M from Germany, Korea, Japan, China- the major producers of such equipment for forming joint ventures and technical collaborations with Indian companies. The foreign machinery majors would also be encouraged to set up manufacturing facilities in India under 100% subsidiaries.
Domestic manufacturers will also be given incentives to invest in this area. ¡°The move will speed up the investment inflows through speedy clearance of the proposals. Creation of domestic P&M capacities would come as a shot in the arm for the Indian textile industry,¡± a senior official of the textile ministry told FE.
He said prior to implementing the plan, a survey on the status, annual capacity, actual production, turnover, exports and proposed investment of the textile engineering industry would be carried out.
The government, sources said, was also looking at employing the modal of public-private-partnership in the sector. Currently, domestic P&M industry is virtually discouraged by the import of second-hand machines and concessional customs duty on a large number of textile machines.
The move follows a proposal made by the National Manufacturing Competitiveness Council (NMCC) headed by chairman, V Krishnamurthy. The NMCC discussed the issue at a recent meeting attended by textile secretary DP Singh, AEPC secretary-general KK Jalan and CII textile committee chairman SP Oswal.
It may be noted that capital investments of Rs 55,000 crore have been made in the Indian textile and garment industry during the last three years.
