The Hindu Business Line : Metal makers' plea to scrap age stipulation in machinery import

DOMESTIC metal manufacturers find an excellent opportunity to replace their "obsolete" manufacturing process technology at a nominal cost by second-hand plant and machinery, currently available in Europe and the US at a cost of 10 to 20 per cent of a new plant. But the existing ban on import of such plant and machinery of more than 10 years' old is standing in the way for them to avail of the opportunity.

The Indian Non-ferrous Metal Manufacturers Association (INMMA) has thus urged the Union Government to withdraw the import restrictions on second-hand plant and machinery in view of the fact that the heavy machineries in the second-hand market are at least 15-20-year-old.

It is pointed out that due to recession in Europe and the US as also due to changes in economies of scale, lot of second-hand non-ferrous metal processing plants are for sale. But due to the age stipulation, domestic manufacturers are unable to bid for the attractive offers and thus are deprived of taking advantage of importing such machinery as the permission to import is not generally given.

The association is of the view that the import restriction may have been made with the apprehension of "obsolete technology" being dumped in the country, although it is unreal in most cases. If the Government feels the technology becomes obsolete after ten years of age, it should not ban only the imports, but also the domestic sale of more than 10-year-old plant & machinery should be banned and force the industries to discard them.It is reiterated that the metal rolling industries, in particular, are one of the biggest sufferers due to the stipulation. The technology prevailing in the metal rolling industries in the country are at least 40 to 50 years behind those prevailing in the European countries. Moreover, there is lack of sufficient capacity of capital goods manufacturers in the country who can supply plants of quality standards C.C.Line, Rolling Mills, Strech Levellers, Slitting lines and other allied equipment.

The association argued that any European machinery of about 10-20 years is far ahead in technology that those prevailing in the country and the domestic industry can benefit a lot by importing them from the second-hand market at very economical prices. It is thus suggested that it would be in the common interest that the age stipulation should be withdrawn on plant & machinery, especially used in the rolling metal industry to facilitate technological up-gradation.