The Hindu Business Line : Spinning sector keen to import machinery from dismantled European plants

Many South-based textile industries are keen to import the second-hand ring spinning frames offered by textile units in Europe that are closing down in the wake of the textile quota abolition. The dismantled plant and machinery are being offered at heavily discounted price to buyers in India, where currently there is demand for new capacity creation, according to industry sources.

Indian textile houses look set to expand production capacities in spinning, weaving and processing but are strapped by the huge backlog in machinery supply from local manufacturers.

Sources wishing to remain anonymous say that many textile units, including some established ones in the region have lined up plans to import the used spinning frames from Europe. Some are even reportedly keen on importing an entire plant.

However, these prospective importers are hindered by the ambiguity in the government's guidelines related to the import of textile machinery that are also indigenously produced. Moreover, government guidelines for the technology upgradation fund scheme (TUFS), allowed for the textile industry's capital goods investment, do not cover imports of used spinning machinery such as ring spinning and spinning preparatory machinery.

Unlike weaving machinery, for which the Centre had specified the technology and vintage models allowed for imports, there are no clear guidelines in the case of spinning preparatory and spinning machines. The waiting period for delivery of spinning machinery from domestic manufacturers is currently 24-30 months. Textile industries keen on capacity building and modernisation are pressurising the government to allow import of used spinning machinery, it is said.

The Dindigul-based Tamilnadu Spinning Mills Association (TASMA) has also written to the Centre and the Textile Ministry, seeking TUFS compatibility for used spinning preparatory and spinning machinery. It also suggested keeping the vintage of used machine imports at 10 years, with minimum residual life of 10 years.

Sources in the second-hand machinery trade here said that used spinning machines from Italy, Germany, Turkey and Spain, besides Philippines and Thailand were available for sale. With 7-8 year vintage, the machines are offered at one-third the cost of new machinery. Used models from famous European machinery labels such as Rieter and Trutzschler, say the sources, can be shipped to India and begin production operation within six months from the date of booking.