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Foundry Daily News

10. July 2008

Government should support Indian companies to compete with China

COIMBATORE : Industrial delegates from the foundry Industry on Wednesday said industries in India could acquire the global competitive edge and compete with their Chinese counterparts if the government provided facilities as the Chinese government.

As part of the global competency drive, Chinese government has provided total support for developing the infrastructure for the foundry and other connected industries, Coimbatore Industrial Infrastructure Association President G Rajendran, who led the delegation, said.

Being the mother industry for all engineering industrial units in India, foundry sector should be provided with power at concessional rates as given in China, he said.

The concessional rates would help reduce manufacturing cost, leading to global competitiveness, particularly with China, Rajendran said.

As against Rs 4.75 per unit of power provided to SSI units in India, the charges were fixed according to the usage time in China, he said.

China has three different slabs such Rs 6.60 during day time, Rs 3.60 and Rs 1.20 for night and late night respectively, Rajendran claimed.

The main advantage for Chinese industries was the supply of uninterrupted, quality and stable electric power and the 'Industry there has no stand-by generator, as there is no power cuts,' Balasundaram, another member, claimed.

Though both the Centre and State governments were helping industrial units, they should emulate China's policy of enhancing infrastructure support to industries, particularly foundries, he said.

In order to offset the global price, Chinese government assisted the exporters of foundry products upto 22 per cent of value, Rajendran said.

Besides, Income tax exemption was given to micro, small and medium enterprises for the first three years by which more entrepreneurs were encouraged to start newer units, he said.

The government was supplying air pollution control equipments like dust collectors and sand reclamation point for re-usage of sand, Rajendran claimed.

The 30-member delegation, also representing MSMEs visited 10 foundries and two pumpset manufacturing units, which were in the large, medium and small scale sector situated in Shanghai industrial Zone aind Wenzhou city, he said.

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