New Delhi: The Department of Heavy Industry (DHI) has demanded Rs 1,000-crore corpus in the next Budget to fund technology upgradation of the auto components industry to make the sector globally competitive.
"We have asked for Rs 1,000-crore technology fund creation. It 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 from the government for upgrading technology.
At present, the textiles sector is the only beneficiary of under TUFS.
The official said a technology fund creation is required to make the auto components sector, especially the SMEs, more competitive in the global market.
Besides, the department has urged the Finance Ministry not to impose higher excise duty on diesel cars along with removal of the additional duty of Rs 15,000 imposed on big diesel-run cars.
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