Forging industry seeks Technology Upgradation Fund for modernisation

Vijay C Roy

Tribune News Service

Chandigarh, August 5

Grappling with obsolete technology, the Rs 28,000-crore Indian forging industry has demanded Technology Upgradation Fund (TUF) on the lines of textile industry for the modernisation of plant and machinery. Catering to the defence, automotive, solar, aerospace, railways and wind sectors, the industry is of the view that the proposed move will not only help in increasing quality production but it would also help in reducing the input cost, making them competitive in the global market.

“The technology in the forging industry is obsolete. The industry is dependent on foreign manufacturers to import the latest technology which is highly capital intensive. Since the industry is contributing a lot in ‘Make in India’ initiative of the Central government, we request the Union government to introduce Technology Upgradation Fund on the lines of textile industry. The proposed move will help the manufacturers become competitive in the global market besides increasing efficiency and reducing input costs,” said Ranbir Singh, president, Association of Indian Forging Industry (AIFI).

He said the government should also launch interest subvention scheme for the industry opting for modernisation.

The Indian forging industry is one of the key players in the auto component manufacturing sector as it caters to 60% of the sector’s demand. The forging industry in the country is highly fragmented. The northern region forging hub concentrates around Ludhiana, Ghaziabad, Faridabad and Gurgaon with a majority of them in the SME and tiny forging space.

As per the survey conducted by the Association of Indian Forging Industry in 2016, the estimated turnover of the 384 forging units operating in FY 2014-15 was Rs 27,835 crore, providing employment to approximately 100,000 people in the country. Overall, production of forgings increased from 21.1 lakh MT to 22.5 lakh MT in 2014-15 and the production figure for 2015-16 is estimated around 24.5 lakh MT.

The industry is of the view that this year with a favourable monsoon season coupled with the government’s thrust on infrastructure, including on mining, the industry is likely to witness a growth of 8-10% this year.

Further, to commemorate the 50 years of the forging association, the AIFI is organising the biggest biennial conference-cum-exhibition, Forgetech India 2016 in Delhi on December 3-4 to discuss and share knowledge, insights, environment and economic trends and best practices to uplift and upgrade the facilities and productivity.