Even as it embarks on internal improvement measures, the domestic foundry industry seeks government intervention to stay competitive amid the onslaught of the Chinese imports.

The industry pointed to the growing imports in sectors such as wind turbine industry.

After getting support from the government, the domestic wind turbine industry uses imported castings from China to build their turbines.

“The difference between the cost of the castings manufactured by China and that by India is 15-20 per cent. If the Indian government provides the local industry with higher exemptions, it will help. In simple terms, cost-to-cost, we are matching the Chinese, only the subsidy portion is a challenge,” said Nithyanandan Devaraaj, Honorary Secretary of Institute of Indian Foundrymen.

Drive localisation

Industry representatives also wanted the government to put a cap on use of imported parts, while urging the industry to drive localisation. They cited the case of metro rail segment, which is indigenising parts at a rapid pace.

“The government should insist that wind turbine makers buy some portion of parts from domestic companies,” felt V Narasimhan, Executive Director, Foundry Division, Brakes India.

In 2016, the wind turbine industry’s estimated requirements were about 120,000 tonnes of castings, valued more than ₹1,500 crore. But, turbine markers imported about a lakh tonnes of castings from China.

Devaraaj stated that the government’s efforts to ensure a level-playing field through levy of CVD last year has not helped the industry. “We have already made a submission to the government on this,” he added.

Reclassify units

The foundry industry has also requested the government to effect some changes in the technology development fund scheme, which is aimed at helping MSMEs.

“Since most of the companies have moved from MSME status to a larger industry, we have requested the government to reclassify the units by increasing the cap to ₹75 crore. This will help foundries turn greener and improve productivity due to technology upgradation,” said Devaraaj.

He also pointed out that foundry production should be trebled from 10 million tonnes to help the manufacturing sector to grow its share in GDP from 15 per cent to 20 per cent. “Such expansion will attract $3 billion investments and generate several lakhs of jobs,” he added.

The foundry industry is also working on measures to reduce consumption of water, cut in use of power by up to 20 per cent and improve productivity.