Auto component manufactures appeal to government for reliefNovember 6th, 2008 - 9:51 pm ICT by IANS
New Delhi, Nov 6 (IANS) Automotive Components Association of India (ACMA), the industry forum of automotive parts makers and ancillary units, has appealed to the government to provide a relief package in the form of a ‘bridge policy’ to help the sector cope with the current economic slowdown.”The association feels the need for an immediate redressal package comprising of a two-three year ‘bridge policy’ to enable the industry survive the current economic crises,” ACMA president J.S. Chopra said in a statement.
Waiving off of customs duty on raw materials, assured funding from banks on capital expenditure, increasing the time-period of repayment of existing loans of small and medium enterprises (SMEs), and further cutdown on the cash reserve ratio (CRR) and statutory liquidity ratio (SLR) by the country’s central bank are some of the measures ACMA has suggested.
The proposal stated that the government should take immediate steps to shore up liquidity in the financial system and evolve special loan schemes for the auto component industry at concessional rate of interest.
“In the domestic market, the crippling liquidity crunch has slowed down vehicle demand, specially in the commercial vehicle industry. Payments from OEMs (original equipment manufacturers) to vendors are getting delayed, loans for capacity expansion are difficult to secure and even disbursement of loans already approved by the banks are being deferred,” Chopra said, explaining the industry’s position.
He also asked vehicle manufacturers to make special efforts to support component manufacturers and to avoid payment delays.
Chopra, however, maintained that he was confident about the industry’s long-term prospects.
“It is necessary to provide some immediate relief to the industry to sustain their growth over the next few months to ensure that the momentum built over the last five years is continued,” he said.
- Fifty new vehicle launches at Auto Expo 2012 - Dec 21, 2011
- 'No immediate impact of Japanese tsunami on Indian auto sector' - Mar 28, 2011
- Indian industry should create 100 million jobs: Plan panel - Jan 20, 2011
- Auto component industry turnover at $22 billion in 2009-10 - Aug 18, 2010
- Auto component sector demands labour reforms - Aug 30, 2011
- RBI cuts SLR by 1 percent - Jul 31, 2012
- General Motors to source 95 percent of components locally - Aug 30, 2011
- Auto-component industry to grow to $110 bn by 2020: ACMA - Aug 27, 2010
- Hyundai to showcase multi-purpose vehicle HND-7 at Auto Expo - Dec 29, 2011
- South India now prime hub for auto components, say experts - Feb 08, 2011
- India Inc condemns Maruti Suzuki fire incident - Jul 20, 2012
- Thousands barge into Auto Expo, lead to chaos - Jan 06, 2012
- Mega-launches, big-ticket announcements at Delhi Auto Expo - Jan 03, 2012
- Maruti Suzuki unviels compact SUV - Jan 05, 2012
- Maruti Suzuki cars to cost more - Jan 05, 2012
Tags: ancillary units, cash reserve ratio, current economic slowdown, customs duty, economic crises, original equipment manufacturers, payment delays, small and medium enterprises, statutory liquidity ratio, term prospects