Duty cut to enhance production in machine tools sector: Union Minister
Reduction in customs duty on machine tools components will help the industry enhance production during the current financial year, said Minister of State for Heavy Industries and Public Enterprises GM Siddeshwara. The heavy industry sector registered growth up to 8.25% during the last financial year. According to the latest data released by the government, the automobile sector registered the highest 8.25% growth. The total output of the auto sector was worth Rs 5.29 lakh crore, up from Rs 4.89 lakh crore recorded a year ago. The target fixed for this sector was Rs 5.79 lakh. The heavy engineering equipment and machine tools sector grew by 7.13 %, with total output worth Rs 64,525 crore during the last fiscal. However, the country’s output in heavy electrical and power plant equipment went southward. The sector recorded total output worth Rs 1.29 lakh crore, less than Rs1.31 lakh valued during 2013-14. Despite witnessing growth, the automobile as well as heavy engineering equipment and machine tools sectors failed to achieve their target. Against the fixed target of Rs 65,610 crore, the heavy engineering equipment and machine tools sector could achieve the annual output worth Rs 64,525 crore,while the electrical and power plant sector fell short by around Rs 30,000 crore from its annual target of Rs 1.4 lakh crore. “The targets were not achieved due to general economic slowdown leading to lower investment by user sector,” the minister said in Lok Sabha today. The government has taken several measures in the recent past to boost industrial growth. On capital goods, the government extended the reduction in excise duty from 12% to 10% till December 2014. “The reduction in customs duty from 7.5% to 2.5% on specific machine tools components during current budget would help in enhancing growth in production,” the minister said. The government has also launched a scheme to enhance competitiveness in the Indian capital goods sector. Setting up of centers of excellence for technology development, common engineering, integrated industrial infrastructural centres, and test and certification centers are part of the scheme. For automobile sector, the government had reduced excise duty on vehicles till December, 2014 to help the industry revive from slowdown. Till December last year, the government had reduced the excise duty by 4% on all vehicles including commercial.
May 5, 2015 | 5:50 pm IST.
to success.