The manufacturing sector has been upbeat over the Centre’s Make in India initiative in getting more business orders. But the composite boat building industry hardly finds any push from this campaign, especially for Indian boat builders, when it comes to procurement of boats by government agencies.
Indian boat builders have been successfully designing and delivering boats to various defence departments. However, the present procurement pattern of the government is trade unfriendly and virtually killing the industry, S.Jeevan, Secretary, Composite Boat Builders Association of Kerala (COBBAK), said.
According to him, foreign suppliers have the advantage of quoting in foreign currency and receive payments in the same currency. Since the Indian boat builders have to take a hit on account of the currency fluctuation, he has asked the government to issue floating rates for rupee fluctuation.
These issues were highlighted by the association in a representation to the Defence Minister especially with regard to the procurement conditions laid down in the tenders for boats floated by defence departments and para military forces saying “it gives unfair advantage to foreign suppliers”.