Minutes of Meeting of the reconstituted Development Council for Textile Engineering Industry held on 26 th May 2017 at Udyog Bhawan in New Delhi List of attendance is attached. 1. Welcome by JS, NS: Shri N. Sivanand, Joint Secretary and Member Secretary of the council welcomed the participants. Self-introductions followed. In his remarks Shri Sivanand said that holding of the DC meeting provides opportunities to the industry to present challenges and opportunities. JS advised the industry to submit proposals with full details, so that processing of proposals is fast. A check list will be developed soon to help the industry. He also sought financial and functional participation of the industry in the programmes and initiative of the Department especially Industry 4.0, only then the outcome will be useful to the industry. 2. Initial Remarks by the Chair: Shri Girish Shankar, Secretary Heavy Industry and the Chairman of the council appreciated the participation of the key stakeholders. He noted that while many decisions were implemented from the last Development Council meeting held on 21 st November 2016 in Coimbatore, some are still work in progress. He outlined the need and urgency for adoption of Industry 4.0 by the industry. He also shared Department s work plan to organize awareness seminars and create institutional capacity for hand holding the transformation to Industry 4.0. He said that financial participation by the industry is necessary as on confirmation of their commitment. 3. Ratification of Last Minutes: Team DHI Shri Sanjay Chavre, Senior Development Officer, DHI, presented the Minutes of the last DC meeting. The minutes were ratified. 4. Action Taken Report: Team DHI Then Shri Chavre presented the ATR of the previous DC meeting: a) It was mentioned that the frequency of council meetings would be maintained on six monthly basis, as per recommendation. The next meeting will be organized in six months. Page 1 of 11
b) It was informed that the DHI had referred the proposal of TMMA for revision in ITC (HS) for Textile Engineering to DGFT. A coordination meeting is proposed in one month s time to press resolution of the issue. c) It was informed that the extracts of the Tariff Commission recommendations rejecting representation by Lakshmi Card Clothing on Inverted Duty Structure for special steel wire was handed over to LCC on May 12, 2017. d) It was discussed that a broader and integrated grant support may be needed by Textile Engineering clusters to transform to global technology levels. Support may also be needed for plant modernization including processes, machines, man power and the entire vendor / supply chain. SME Industry is looking towards new Scheme by DHI in this direction. e) It was informed the council that TMMA and GITA had conducted 4 seminars for the industry on Technology Acquisition Fund Program of the CG Scheme of DHI. It is understood that 3 proposals have been developed. GITA is scheduled to meet DHI on May 29 2017. Further status will be informed. f) Technology Scouting Mission report was presented by TMMA. It was informed that under the mission, a number of Indian companies (TEI) have scouted certain technologies in the past years and are negotiating the deals. However they are unwilling to share the information for two reasons. i. Sensitive information from competition point of view ii. DHI grant (25% with Rs 10 crore upper limits) is not substantial enough; therefore they wish to acquire it on their own. iii. TAFP requirement that the acquired technology could be made available for other companies after 2 years of commercialization of the product by the acquiring company, has not been considered fair enough by the industry. Their expectation is to increase it to 5 years at least. Page 2 of 11
g) It was shared that TMMA will send a proposal for formation of Export Promotion Council for Textile Engineering. It was also shared that TMMA is preparing application for MDA/MAI for ITM Istanbul 2018, and ITMA Barcelona 2019 to start with. They sought DHI s support in getting it approved from MoC or other concerned Ministry. h) It was also discussed that TMMA will send a broad based paper on import of second hand machines. i) TMMA also requested DHI to support the issue in which the Customs have stopped providing the export import data to private sources from whom it used to procure data. The DGCI&S data received on quarterly basis in not elaborate enough to do the proper analysis. JS (Commerce) clarified the system of provision of import data by the O/o DG CIS. He stated that a meeting of stakeholders will be organised to work out the best possible solution. j) Presence of MSME in Council meetings Representative of MSME said that they are not a member of the Council. He sought membership, since 85% units are in small scale. Agreeing with the suggestion, SHI directed that a proposal to the effect may be mooted ASAP. k) TMMA proposal on Export Promotion Incentives - The new integrated CG Policy announced in Feb 2016 contains many initiatives for export promotion. Which is in addition to what is being done by DoC and MSME. A scheme by DHI to provide grant support for exports promotion is in offing. Meanwhile TMMA can take benefit for grants for Technology upgradation/ acquisitions, CEFC and CoEs under the existing scheme of DHI for exports promotion. l) Duty on low speed looms: It was discussed that TMMA will send a proposal with detailed justification to have customs duties on low speed looms being manufactured in India is in progress. m) Rationalization of MoT procedures certification of technology in case of domestic loom under the TUFS : TMMA was required to send a Page 3 of 11
proposal with detailed justification to seek rationalization of procedures under TUFS of Ministry of Textiles. n) Common Components standards formulation by BIS Committee headed by Shri Rajani Bachhkaniwala - TMMA was requested to share progress on the topic. o) Strong Review Mechanism for SETU - First instalment of grant released to SETU recently. Work in SETU is in progress. PR & MC will be formed as a strong mechanism in the second half of this financial year. p) TMMA proposal for limit of SSI to be enhanced - TMMA was requested to send a proposal with justification. Meanwhile M/o MSME has already sent a proposal on increasing the limits for consideration of the Parliament. q) TMMA to prepare 25 years plans - A detailed proposal by TMMA to undertake such a study is to be received in DHI. r) The proposals by the Industry to DHI for CEFC for Coir and Jute Machinery development are yet to be received. 5. Presentation on the Industry: Challenges & Action Plan for Future : Chairman, TMMA Mr. R. Rajendran, Chairman, TMMA (I) gave an overview of the industry and presented the recommendations of Gherzi Inc. about the technology gaps the Indian TEI is having. He mentioned that as per the pilot CG Scheme of DHI, the association had categorized the technological capabilities of the industry into 3 categories viz. the first one where the technology is at par with international standards, the second one where the technology is about 10-15 years behind the global standards, and the third one where the technology doesn t exist. He explained that the industry and association are working according to the recommendation for filling up these tech-gaps by utilizing the opportunities offered by the DHI s CG Scheme and MoT s R&D scheme for TEI. He cited the examples of a hi-tech loom development at CMTI Bangalore, a CEFC in Surat, and various projects under TAFP for technology acquisitions by the industry. Page 4 of 11
He then delved on to the need for export promotion by taking exhibitors, delegations and visitors in focused textile engineering shows globally and procuring MDA/MAI grants for the industry by the association itself. The EPC approach for the industry so far has been very cumbersome and didn t have focussed impact. Therefore he proposed that the Council should support TMMA in getting the MDA/ MAI for such events/ delegations directly for the TEI from MoC. On the issue of revising the ITC HS Codes for the TEI, he informed the council that a working group under the chairmanship of the Textile Commissioner was formed to suggest revised ITC (HS) Codes for Textile Machinery while implementing of CoS recommendations on import of used capital goods (18th May 2015). TMMA had proposed revisions in the existing ITC HS Codes duly vetted by the BTRA, WRA and CITI to the Textile Commissioners office (17th June 2015). A recent communication (18th May 2017) has been forwarded to DHI for following up with relevant Ministry or Department to effect the changes. The DHI in return has requested the concerned Ministry to look in to the matter for a positive outcome. The Chairman also raised the issue of Duty Drawback and Inverted Duty Structure, on which the department has assured of support. It was also deliberated, that by GST roll out, a lot of such problems should be resolved for the industry s benefit. TMMA recommended removing nil import duty on low speed shuttleless looms and unnecessary controls on import of critical components. The Chairmen also suggested doing a TEI Census, establishing more CEFC like projects in India, allocating larger percentage of grant under TAFP. Responding to the suggestions, the department requested the association to submit proposals with detailed justification to support the above recommendations and suggestions. 6. Progress of CMTI high speed loom development Project by Mr Satish Kumar, Director Page 5 of 11
CMTI presented progress of the project Development of Advanced Technologies for Hi-Tech Shuttleless Looms being executed by them under the DHI scheme on Enhancement of global competitiveness of Indian Capital Goods Sector. 1. Current status: Major challenges in technology development of High Speed Rapier Shuttleless loom (450 rpm) have been completed. They cover Design & Technology Innovation, Lab Testing and Machine Design. Manufacturing of parts & procurement of standard parts is currently in progress and is 90% complete. The remaining activities of Loom integration & Testing will be completed by end of July 17. Industry rollout of commercial loom is targeted for Mar 2018. 2. CMTI has also in parallel started work on Phase II objective of indigenous development of High Speed Rapier Shuttleless loom (550 rpm). CMTI, in addition to lab testing of its own innovations for operation at 550 rpm, is also proposing to partner with Institute for Textiltechnik (ITA) at RWTH Aachen University, Germany for integrating the Magnetic Weft Insertion system developed by them, which will enable high weft insertion speeds (700 rpm). The Chair appreciated the good work by CMTI and wanted that the target of July 2017 for commercial testing by the industry may not be missed. 7. Progress of SETU Project by Mr Hetal Mehta and team Mr. Hetal R. Mehta, Executive Director, SETU Foundation presented the current status of the CEFC Surat project. First instalment of grant was released recently. The design centre had been established with the purchase of Top Solid software and training of the trainers. In fact a R&D project on testing the Yarn Strength had been done at the design centre for one of the constituent member of SETU Foundation successfully. The design of the building infrastructure is ready; the cleaning of the site and road construction was done. The application for electricity installation had been made. The FETR College has offered their own newly constructed building with necessary structural changes done for the provisional basis to install the capital machineries to be procured in the coming weeks. The foundation had recently hired Page 6 of 11
support staff such as a Company Secretary, an Accountant and a Personal Assistant to carry out the day to day work at the newly prepared secretarial facility in Surat City. 8. Progress of Organizing Textile Engineering Component in Textiles India 2017: ITME/ TMMA Ms. Seema Srivastava, Executive Director, India ITME Society presented that it was agreed that 350 sq. mtrs area shall be taken for participation under DHI pavilion jointly by TMMA and ITAMMA members and a round table conference for one day shall be organised to showcase the strength and opportunities of Textile Engineering Industry of India, in the previous meeting held on 18th April 2017. Though the members are willing to showcase the industry strengths, looking at all the practicalities and the constraints faced by the industry presently, the industry members are unwilling to bear additional participation cost for this event. One of the main reasons being that Textile India 2017 is not a textile engineering focused event and shall not generate any return on expenditure incurred for participation in this exhibition. Also for the industry Associations like TMMA and ITAMMA to bear such a large cost will be impossible. Then again to transfer the total cost burden to the exhibitors will increase the cost of participation exorbitantly and make the participation impossible for the industry members especially small, medium manufacturers and component manufacturers. The industry is requesting that the venue and the space rentals cost be sponsored and supported by Government to make it feasible for them to participate. As such, request is being placed before the DHI to support the efforts of Textile Engineering Industry to show case their strength at Textile India 2017. Page 7 of 11
Ms. Seema Srivastava agreed that the total budget for participation in this event shall be presented along with the proposal and request to DHI on Monday, 29th May 2017. 9. Progress of proposing 8 technology development projects by Prof. (Dr.) S. M. Ishtiaque, IIT D Prof. Ishtiaque made a presentation about 8 technologies that the IIT Delhi had developed for the leading textile engineering companies such as LMW and Premier Evolovics. He stressed upon: - Indigenization of technologies related to Textile Machine and equipment. - To enable small, medium and heavy textile industries to develop innovative and cost effective manufacturing technologies. - Enhancement of required features on existing technologies to meet the global requirements. - Familiarization of design and production process to industry partners. - To provide engineering support to small and medium sectors of industry to develop new products. - Enhancement of knowledge of industry professional engaged in Textile Machine related manufacturing through regular training programs. - To provide testing and characterization support to industries. Considering the above discussed scenario in view, it is intended to establish a network based CoE at the Department of Textile Technology, Indian Institute of Technology Delhi, as technical collaborative partner with participating industries. The CoE will invite the proposal. Following 8 projects proposed by the industries and proposal of setting up Centre of Excellence for TEXTILE MACHINE AND DESIGN have been submitted to DHI for funding: 1. Development of Multiple Doffer Flat Carding System for production of Medical Application 2. Development of Roller Carding Machine for Manufacturing of Nonwovens Page 8 of 11
3. Design and Development of Computer Controlled Minimization of Electrical Energy Loss in Induction Motor Drives during Acceleration-Deceleration and Variable Load operation for Applications in Textile Industries 4. Design and Development of induction motor for Individual spindle drive at Ring Frame and Minimization of Electrical Energy Loss during Variable Load operation. 5. Design and development of Robot for sliver can transfer from one machine to designated machine 6. Development of a System for Yarn Fault Characterization and Tension Control on Yarn Winding Machine 7. Design and Development of 3D Weaving Machines for production of 3D solid, 3D spacer, 3D honeycomb and 3D profiled structures. 8. Design and Development of an integrated machine for Automation of Identification, Analysis and Feedback system for Textile fabric defects by Digital Image Processing Technology. Mr. Sachin Kumar, Secretary, TMMA (I) requested him to share the basic information about all such readily available technologies at IIT Delhi which could be adopted by the industry. He along with Mr. N. D. Mhatre, Technical Director, ITAMMA suggested that they could organize visits of the industry to the institutions to witness the R&D activities. Along with a joint platform could be created through events, seminars and workshops so that both the stakeholders join hands in adoption of the latest trends and technology from the end user s perspective. 10. Submissions of FICCI: Discussing negative list of HS Code for EPCG, Mr Nitin Patil (Head Product, Rieter India) said that : o Still most of the machine & Technology Components are not available in India, Technology such as Rotor and Air jet are still not available, In micro level there are many example e.g. Blending machine as well as Ring and Circular comb etc o In some cases the Machine or components either are in trials stage or not comparable with other International companies product wrt to performance o User Industry i.e. Textile Industry need to be competent with respect to Quality, productivity & cost if India need to achieve Page 9 of 11
Vision 2024-25 ( US$ 650 Billion ), Hence best technology should available for them to compete o Customers are still importing machines and components under EPCG in big way based on performance and satisfaction. FICCI requested resolution of the issue. 11. Conclusion : The meeting was concluded with a vote of thanks to the chair Page 10 of 11
MAY 26, 2017 AT 1100 HRS UDYOG BHAWAN, NEW DELHI ATTENDENCE SHEET other than DHI DHI : SHI, JS NS, Dir RP, SrDO SC DCTMI-24/05/2017 S.No. NAME/DESIGNATIO N ORGANISATION TELEPHO NE Mail-id 1. Nitin T. Patil, Rieter India Pvt. Ltd. 8805020970 nitin.patil@rieter.com Head Products India 2. Seema Srivastava, Textile Machinery Exh. 4045300069 seema@india-itma.com Executive Director Secretary (ITME) 3. N.D. Mhatre, ITAMMA 9820292245 info@itamma.org Director General (Tech) 4. R. Rajendran, TMMA(I) 8144921201 Rajendran.r@cmn.co.in Chairman 5. S.M.Ishaque IITD 9871692079 ishaque@iitd.ac.in 6. Schin Kumar TMMA (I) 9342592520 sachin@tmmaindia.net 7. S.Satish Kumar CMTI 9449842677 satish.cmti@nic.in 8. S. Krishna Swamy TMMA, 9717019444 NEW DELHI 9. ZAKARIA KHAN, DIPP 23062017 Mz.khn@nic.in Sr. D.O 10. Mohanraj, CMTI 9449842671 Mohanraj.cmti@nic.in JD 11. Dr. P.G.S. Road, M/o MSME 23063198 gsperni@nic.in Director 12. Padma Ganesh, Deptt of Commerce 9873249125 p.ganesh15@gov.in Deputy Secy. 13. Rakhee Gupta, CII 9910203355 rakhee.gupta@cii.in Deputy Director 14. Aditi Sharma, FICCI 981292425 aditi.sharma@ficci.com Assistant Director 15. Dr. Amit Chopra, ITATTMA 9034873753 dramitmsme@gov.in Regions Manager 9416439300 16. Vivek Plawat. NTC/MOT 9717444230 Vivek.plawat@ntcltd.org Executive Director 17. Prabhat Ranjan TIFAC 9899270005 ed@tifac.org.in ED 18. P.M.shah S.G.C.C.I Surat 9825143920 pmshah@gmail.com 19. Hetal R-Mehta SETU Foundation 9825173075 Setusurat29@gmail.com Chairman 20. JAYA BASU Sr.Dy. Director 9830260935 jbasu@eepcindia.net EEPC INDIA 21. Ajay Pandit, Director Office of the Textile 9594845040 ajaypandit@nic.in Page 11 of 11