The Department of Heavy Industry (DHI) has asked the Finance Ministry to create a Rs 1,000-crore corpus to fund technology upgradation of the auto components industry to make it globally competitive, a senior ministry official said today.
“We are asking for Rs 1,000-crore technology fund creation for the entire next (five year) Plan. The fund can be a revolving kind of fund. People can take out, repay it, refurbish and new participants will take it,” a DHI official said.
The DHI, in its pre-Budget recommendations, has sought Rs 1,000 crore under Technology Upgradation Scheme (TUFS), wherein companies get 5 per cent subsidy on loans for upgrading technology from the government.
At present, only the textiles sector is provided these benefits under the Technology Upgradation Scheme (TUFS).
The official said some kind of technology fund creation is required to make auto components sector, especially the SMEs, more competitive, as they are lagging behind their global peers.
Besides, the Department has also urged the Finance Ministry to continue stimulus measures such as continuation of the same rate of excise duty.
“Two per cent excise duty was increased in the last Budget. We hope it to continue and there are no further increases,” the official said.