Draft Detailed Project Report

Technology Centre Systems Program – Draft DPR for New TC at Rohtak
Limited/ slow adaptability of technology by domestic TRs duet to perception of
quality about domestically developed products
Dispersed/ unorganised industry structure.
High cost of inputs makes Indian machines costly to users as compared to those
imported.
b. Other macroeconomic factors
► High interest rates of borrowing (~14%) which discourage investments by compromising
viability.
► Spree of free trade agreements (FTAs) / preferential trade agreements (PTAs) leads to a
situation of inverted duty structure for Indian manufacturers. Customs Duty is reduced
to zero levels and therefore Imports become more attractive that does not encourage
transfer of technology and local manufacturing and / or value addition.
► Export efforts constrained by high cost of maintaining a presence in overseas markets.
► Government tender terms place Indian manufacturers at a disadvantage against
imported machine tools.
► Skill erosion in machine tools is a serious constraint; yet, no academic course exists in
mechanical engineering or even vocational training as a stream for machine tools at any
level.
Challenges faced by Indian TCs
An analysis of the existing MSME TRs in India reveals that limited efficiency in production has caused
the loss of some clients to private Tool Rooms or cheaper options from other countries. One of the
key reasons identified has been the generic nature of tool development by MSME Tool Rooms rather
than catering to a specialised category.
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