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Our Bureau

New Delhi, Nov. 8 Faced with a downturn in passenger and commercial vehicles sales, the Automotive Components Manufacturers’ Association (ACMA) has petitioned the Centre to curb rising import of components and evolve special loan schemes for the auto component industry at concessional rate of interest to tide over the current slump.

The Government should also take immediate steps to infuse liquidity in the financial system and evolve special loan schemes for the auto-component industry at concessional rate of interest, the industry body said in a statement.

“The association feels the need for an immediate redressal package comprising of a two-three year ‘bridge policy’ to enable the industry survive the current economic crises,” the ACMA President, Mr J.S. Chopra, said in the statement.

According to the association, imports of auto-components are continuing at a growth rate of almost 50 per cent, as a result of which, India is turning into a net importer of auto-components. “Ongoing funding by the banks for capital expenditure requirements of the industry should continue without any disruption,” the industry body said.

Special precaution should be taken to ensure that infrastructure projects do not get delayed as these large projects would provide the much needed multiplier effect for the automotive industry, it said.

Waiving off of customs duty on raw materials, assured funding from banks on capital expenditure, increasing the time-period of repayment of existing loans of small and medium enterprises, and further cutdown on the cash reserve ratio and statutory liquidity ratio by the country’s central bank are some of the measures ACMA has suggested.

More Stories on : Automobile Components | Industry Associations

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