PPMAI writes to PM Modi on 'excessive protectionism' to steel companies

The Process Plant and Machinery Association of India (PPMAI), the apex body of process plant manufacturers, has written to Prime Minister Narendra Modi against "excessive protectionism" being given to the steel sector in the country.

They have also raised the issue with Finance Minister Arun Jaitley and Steel Minister Narendra Singh Tomar.

The manufacturers, including L&T, Godrej, Thermax, Praj Industries, Aker Solutions, Toyo Engineering, ThyssenKrupp Industrial Solutions (India) have expressed serious concern at the "perpetual protectionist environment" in favour of the steel sector without consulting capital goods players.

"India is in the process of globalising its manufacturing base through establishment of capital equipment and downstream industries in MSME to generate employment as well as boost 'Make in India' through competitiveness of Indian products," PPMAI secretary VP Ramachandran was quoted as saying in a release.

He felt this will lead to a skewed approach. "It will end up as a burden on the economy and scare away investors in other productive capital equipment as well as downstream MSME areas which have the potential to run efficiently and most importantly, generate employment," he added.

Ramachandran pointed out that the recent proposal of the government to impose minimum import price (MIP) on steel products "without discussing all the stakeholders" will further create confusion.