PPMAI urges govt to ban import of used machinery

Capital goods industry body Process Plant and Machinery Association of India (PPMAI) today urged the government to ban import of used machinery in the country.

It has also requested the government to put the import of used capital equipment and machinery in the negative list of Free Trade Agreements (FTAs).

"Every ministry... finance, commerce and heavy industries is aware that capital goods sector in the country is languishing and growth is negative for past several years," Yatinder Pal Singh Suri, Chairman, PPMAI said in a statement.

"It needs support through ban of second-hand plant and equipment imports as well as concession being extended to various countries under FTAs," Suri added.

In this regard, Suri said, PPMAI has submitted memorandums to the ministries of steel, commerce, heavy industries and public enterprises.

The entry of used equipment and machinery in the country is hurting the domestic capital goods industry, he said.

Any new unit, if set up using old machinery, does not fulfil the Prime Minister's vision of 'Make In India', Suri pointed.

"New means new. Use of old machinery in any of the sector - be it steel, FMCG, white goods or ancillary and downstream industry - can raise question on the quality of the product also," he said.

Most of the sectors in the country are growing rapidly. With government support in the form of incentives and schemes, a lot if new units will be coming up in India, Suri said.

He added that the government must take steps to ensure that no compromises are made with the machinery being used to make the products.

Capital goods are products used in producing other goods; and PPMAI represents the capital goods and process equipment manufacturing industry in the country, with members including oil and gas, construction and FMCG companies.