Machine Tools Industry To Seek Infrastructure Status

The Indian Machine Tool Manufacturers Association will make a presentation before the new government seeking infrastructure status for the industry, besides reduction in excise duty and realignment of the customs duty structure.

There can be no industrial development without the machine tools industry, association president C R Swaminathan said. According to Swaminathan, the excise duty on machine tools should be reduced from 13 per cent to 5 per cent so that even small industries are able to buy sophisticated computer numerically controlled tools.

The association would also move the state governments for introduction of value-added tax on machine tools to encourage the domestic industry to go in for modern tools.

The association is opposed to the current import tariff structure on machine tools, which puts 25 per cent duty on finished tools and 30 per cent each on raw material and components.

The duty on raw material and components should ideally be lower than that on finished tools, or at least at par, Swaminathan said.

The association also wants the government to help domestic manufacturers exhibit their products in shows held in Hanover, Paris, Milan, Chicago, Osaka and Tokyo.

According to Swaminathan, the machine tools industrys woes can be attributed to the slower-than-expected growth of the automobile and auto component sectors.