Rising input prices may cause closure of several Foundries
The chairman of IIF-SR Belgaum Chapter has expresses serious apprehensions that the frequent rise in raw material prices may cause several foundries to shut their shops & lead to unemployment if the situation is not checked immediately. The cluster members led by IIF Belgaum Chaper, Mr Ram Bhandare, marched to the Deputy Commissioner's office at Belgaum to bring to the attention of Govt the serious situatiuon for intervention
A memorandum was submitted to the Joint Director of the District Industries Centre, the IIF said the foundry sector was supporting engineering exports and domestic market & India was the fourth largest producer of castings in the world & the foundry industry of India was poised to become one of the top three producers of castings in the world by 2010, as it was witnessing an export growth rate of 15 per cent every year, the memorandum said. Exports during the year 2006-07 accounted for Rs. 4,000 crore and it was expected to touch Rs. 6,000-crore mark by 2010, it said.
The Belgaum foundries produce about 1,00,000 Tons of castings annually which is expected to increase to 1,60,000 in next 2 years & exports of castings from this region are likely to go upto Rs 300 crores from Rs 100 crores at present. The foundries employ about 10,000 persons & it is forseen that additional employment can be generated if the sector grows as envisaged but for the serious challenges which require govt's intervention. Specially to check the frequent & steep rise in the prices of raw materials such as pig iron, scrap & metcoke & the import duties on these should be reduced to nil which will help check the price increase of these key inputs to some extent.
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