IEEMA urges to less excise duty on raw materils

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Mumbai, Jul 22 (UNI) Indian Electrical&Electronics Manufacturers' Association (IEEMA) has urged the Union Finance Minister to reduce excise duty on ferrous and non-ferrous metals from 14 per cent to 8 per cent.

This will substantially reduce input cost as well as reduce leakage of revenue.

IEEMA Cable Division Chairman Vijay Karia told mediapersons here last night that, ''After the submitted the memorandum to the Union government, the detail of solutions that the government would consider to reduce import duties on steel, copper and aluminum from five per cent to nil and to increase import duties on cables to ten per cent from the current rate of 7.5 per cent.'' The government should encourage local established industries to grow through proper framing of tender guidelines and discouraging usage of recycle metals and polymers through stringent quality checks, he said.

He informed, ''IEEMA is implementing a quality rating programme through CRISIL-LLOYDs. Overall electric equipment growth rate has maintained 15 per cent in the last few years. However, power cable growth rate is highest 21 per cent in all other sector like transformer, switch gear and others. Electric industry is facing acute shortage of people with engineering expertise and Managerial skills. There would be huge manpower required by utilities, equipment vendors and service providers in the sector. If there is a limiting factors here, it is 'skilled Manpower. There would be target engineering institutions for upgrading syllabus.'' Meanwhile, IEEMA Senior member M Gandhi told UNI, ''There is lack of implementation of quality standards leads to usage of recycled or commercial grades of copper, aluminum and PVC, thereby leading to higher electrical losses and higher failures. India is faces some of highest electrical losses in the world. This can be substantially reduced by usage of proper quality of cables and conductors.'' ''Indian cable industry is till facing the most unfavorable terms of payment from the local users and Electricity boards. Foreign suppliers are favoured with Letters of Credit (LC). When Indian cable companies supply cables to foreign countries, they are expected to get the testing done in the local laboratories there.

The same rules do not apply in most cases in India,'' Mr Gandhi added.


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