New Delhi, June 7: The small-scale sector is up in arms against the finance ministry for allowing import of a large of items at zero duty by the petroleum refineries. The government had permitted refineries to import as many as 144 items at zero duty, which had created panic among indigenous manufacturers most of which are in the small or medium sector.

The Federation of Engineering Industries of India (FEII), which has taken up the cause of the small-scale sector left unattended by the high-profiled chambers of commerce and industry, has pointed out that almost 90 per cent of the items specified in the list are produced within the country by small and medium sector.

The list include items like seamless pipes, welded tubes, fire fighting systems, refrigeration system etc.

According to secretary general of FEII, H L Bhardwaj, capacities had been created over the years for producing various items and the permission to import these items at zero duty had put a question mark on the survival of these units. The government had earlier allowed import of duty-free goods by the fertiliser sector and has now extended the benefit to the refineries sector.

FEII has also registered a strong protest with finance minister P Chidambaram and stated in its memorandum that zero duty import goods concessions should be given to refineries only on those goods which are not produced in the country.

The memorandum pointed out that the notification giving details of the items to imported at zero duty by the refinery sector, "has come as a bolt from the blue to the Indian entrepreneurship as well as to the domestic units which have toiled all these years, created efficient capacities to manufacture capital years."

FEII further pointed out that, "quite a large number of the items are manufactured by units holding ISO-9000 certification".

The federation specifically pointed out that items like welded pipes and tubes and seamless pipes are manufactured by over hundred companies in the organised sector and the industry was capable of meeting the entire requirement of the country. The companies which produce seamless pipes include Bharat Heavy Electrical Ltd, Tata Steel, Remi Metals, Kalyani Seamless, Indian Seamless, Saw Pipes etc.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.