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COINDIA seeks Govt support to help Indian foundries become more competitive
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Written by Anand   
Thursday, 17 July 2008

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Coimbatore: About 30 members belonging to the cluster project from micro and small foundry industries had visited China from 1st June to 13th June 2008.

The members visited 10 foundry units and 2 pumpset manufacturing units , covering large, medium and small scale sector located at Shanghai Industrial zone / Parks and in Venzu city. They also had a joint meeting with the China Foundry Association at Metals & Metallurgy Show 2008.

As a part of the global competency drive the Government of China creates and extends complete infrastructure support, including transportation roads, drainage, common facilities, for the foundry and other industries. Air Pollution Control equipments like dust collectors and sand reclamation plant for re-usage of sand are all provided and supplied by Government of China.

G Rajendran, president of Coimbatore industrial Infrastructure Association has written to the Prime Minister in this regard.

Based on their observations and first hand experience, Coimbatore Industrial infrastructure Association suggested a road map to successfully compete with the Chinese and get a higher global market share. Mr.G. Rajendran, president of CIIA requested the Prime Minister to consider the following points, in his letter.

1. On behalf of foundry and other Industries, COINDIA jointly with other sister Associations, will take steps to improve the productivity, to introduce new manufacturing process / techniques with the available resources and with improved safety measures under COINDIA project.

2. As the foundry industry is the mother industry for all engineering industries in our Country, Central / State Governments should extend the electricity power supply at concessional rates like Chinese Government to reduce our manufacturing cost and to improve our global competitiveness.

3. Presently, under IIUS project around 35% margin should be brought in by industries to promote common infrastructure. Central/ State Governments should create the common infrastructure like roads, common / individual environmental control equipments for MSME industries with 100% contribution.

4. The rules and regulations of environmental pollution control act may please be refined and modified as in the case of China.

5. The Duty Entitlement Pass Book (DEPB) scheme may consider a double digit concession from Government which will enable foundry exporters be competitive in the global market.

A concerted action by the Central and State governments in providing the timely support to the industry would go a long way in Indian foundries reducing their cost of production to successfully compete with the Chinese in the domestic and international market. Any reduction in casting price would also help the manufacturing industry which uses castings as raw material to grow. 

 
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