Dua for foreign participation in tube industry

New Delhi, Sep 15 (UNI) Calling poor infrastructure as the main hurdle for the growth of potential tubes industry, Department of Industrial Policy and Promotion Secretary A K Dua has invited the larger players of the industry to invest in the country.

''Now with the 100 per cent FDI, the companies are free to establish their fully-owned set-up in the country, saying the Government's role will be of facilitator,'' Mr Dua told reporters at a national seminar on Tubes Industry organised by industry chamber CII here.

Since steel is the main input for the tubes industry, its growth is closely linked to sectors like steel, automobiles, oil and gas, infrastructure, construction and boilers.

He assured the Government will further liberalise coal mining sector to improve its availability and supply as a critical raw material for steel products, addressing the constraints in the import of coking coal in terms of tariffs and handling costs.

This would help the steel industry and in turn the tube industry to meet the demands from the rapidly-growing infrastructure sector in India, he said.

Other measures include clearances, filing of returns and flexibility in the legal framework. These measures would help to raise the production of steel, as well as make it cheaper, benefiting the tubes industry.

Mr Dua said these issues could be addressed through the concept of investment regions. The management of the region concerned would be responsible for legal powers for land usage, external connectivity and reduction of transactional costs.

The Secretary said the total turnover of the industry will rise from the current level of Rs 15,000 crore. Other demand drivers for tubes include the oil and gas sector.

CII Precision Tubes Division Chairman N Srikanth said the tubes industry was growing at 18 per cent per year. One of the major concerns of the industry was cost competitiveness and CII is addressing this through multi-level engagements.

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