news & trends

91INDIAN FOUNDRY JOURNAL | Vol 67 | issue 7 | jul 2021

News & Trends

Export-Import scenario of India in May 2021

Merchandise exports from India grew by 69.35% at US$ 32.27 billion in May 2021 in comparison

with US$ 19.05 billion in May 2020. Major commodity groups showing positive growth in exports in May 2021 vis-à-vis May 2020 were other cereals (847.41%), jute manufacturing including floor covering (256.29%), petroleum products (227.25%), handicrafts excluding handmade carpets (192.9%), gems & jewellery (179.13%), leather & leather products (155.08%), man-made yarn/

fabrics/made-ups etc (146.34%), cotton yarn/fabrics/made-ups, handloom products etc (137.93%), RMG of all textiles (114.21%), electronic goods (90.79%), ceramic products & glassware (81.57%), mica, coal & other ores, minerals including processed minerals (77.07%), engineering goods (53%), cereal preparations & miscellaneous processed items (52.92%), marine products (33.58%), iron ore (25.71%), plastic & linoleum (20.46%), organic & inorganic chemicals (20.05%), oil meals (8.29%) etc. Major commodity groups showing negative growth in exports in May 2021 vis-à-vis May 2020 were oil seeds (-7.09%),

drugs and pharmaceuticals (-5.36%) etc.Cumulative exports increased by 113.85% at US$ 62.89 billion during April-May 2021 compared to US$ 29.41 billion during April-May 2020.Merchandise imports in India registered a growth rate of 73.64% at US$ 38.55 billion in May 2021 against US$ 22.20 billion in May 2020. Major commodity groups showing negative growth in imports in May 2021 vis-a-vis May 2020 were silver (-95.31%), newsprint (-48.53%), pulses (-42.9%), iron & steel (-3.03%).

Trade deficit was estimated at US$ 6.28 billion in May 2021 against US$ 3.15 billion in May 2020, with an increase of 99.61%.

news & trends

92 INDIAN FOUNDRY JOURNAL | Vol 67 | issue 7 | jul 2021

Small secondary steel units to suffer from high prices of raw materialsSmall secondary steel units of various states of India including West Bengal are likely to be compelled to either shut down their plants or curb production owing to the recent hike in prices of iron ore and pellets. At least 5 micro, small and medium enterprises (MSMEs) in West Bengal have already closed down their plants and other 100-115 units have curtailed production by 15-50%, according to the Chairman of Steel Re-rolling Mills Association.

They are also surrendering power requirements from Damodar Valley Corporation (DVC) and West Bengal State Electricity Distribution Company Ltd (WBSEDCL).

In Bengal, nearly 500 units, which are engaged in sponge iron, rolling mills and steel making through induction furnaces, along with units of other states, are suffering from unprecedented hike of prices of iron ore and pellets owing to unhindered export of the minerals.

Secondary steel associations of West Bengal, Odisha, Madhya Pradesh, Chhattisgarh, Jharkhand, Karnataka, Maharashtra and Andhra Pradesh have jointly submitted an appeal to the Hon’ble Prime Minister of India and also the Minister of Steel, Government of India, for their intervention as well as imposition of 50 per cent export duty on pellets.

Price of pellet increased from Rs 4500 per

tonne in May 2020 to Rs 15000 per tonne in June 2021 with a cost impact of Rs 20,800 on a tonne of steel, as revealed by the President of West Bengal Sponge Iron Manufacturers Association. Companies with own sources of pellet and iron ore are only making profits whereas nearly 50,000 secondary steel MSMEs are going in losses.

He further pleaded the Government for making the raw materials available for the domestic industry and also for allowing a consortium of small units (containing up to 5 members) in order to bid auctions which might help in curbing dependence on open market.

Simplification of registration process of MSMEsThe registration process of micro, small and medium enterprises (MSMEs) has been simplified recently and now only Permanent Account Number (PAN) and unique identification number Aadhaar are required for registration.

After getting registered, the company would get priority of finance. According

to the Minister of MSME, small units should be given training towards entrepreneurship and other related aspects and banking as well as non-banking financial companies should provide full support to small businesses.

Extension and changes in FAME II scheme for EVs in IndiaThe Government of India (GoI) has recently extended the Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME) II scheme by two years ie by March 2024, which was supposed to be ended on March 2022. This could accelerate the demand for electric vehicles in two-wheeler, three-wheeler and bus segments.

Further, demand incentive for electric two-wheelers has been revised to Rs 15000 per kWh from earlier Rs 10000 per kWh by the Department of Heavy Industry (DHI). As per new rules, cap on incentives would be limited to 40% of the cost of vehicle instead of 20% earlier.

Energy Efficiency Services Ltd (EESL)

Auto Sales in India during April-June 2021April-June

2021 April-June

2020Growth

%April-June

2019

Passenger Vehicles 6,46,272 1,53,734 320 7,12,684

Commercial Vehicles 1,05,800 31,636 234 2,08,310

Three-Wheelers 24,376 12,760 91 1,49,797

Two-Wheelers 24,03,591 12,94,509 85.6 50,13,067

Quadricycle – – – 620

Total Domestic Sales 31,80,039 14,92,612 113 60,84,478

No of vehicles

news & trends

93INDIAN FOUNDRY JOURNAL | Vol 67 | issue 7 | jul 2021

has also been mandated by the Ministry of Heavy Industry for procuring 3 lakh electric three-wheelers for use by different authorities; would go for aggregation of demand in Mumbai, Delhi, Bengaluru, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat and Pune on operational expenditure basis, details of which would be worked out.

According to the Federation of Indian Chamber of Commerce & Industry (FICCI), this would likely to reduce difference in cost of ownership of internal combustion (IC) engine vehicle and electric vehicle in two-wheeler segment and would encourage consumers for adoption of electric two-wheelers.

TVS Motor to invest in a new vertical of EV TVS Motor Company, one of the largest two-wheeler makers of India, would likely to invest Rs 1000 crore for manufacturing electric vehicles (EVs) under a separate vertical. The company is preparing a portfolio of two and three-wheelers in the range of 5-25 kW, which would be available in the market within two years.

TVS foresees its transformation into a digital-age company with connected, cool

and electric brand. In order to meet market needs, 500-600 engineers are working on various concepts of new EV vertical. This new range of electric vehicles, to be designed and manufactured in India, with global research and development (R&D) ecosystem, would aim at also serving the foreign markets.

First electric vehicle offering iQube of the company, would be available in 1000 dealerships in major towns and cities by 2021-22, which is now sold in Bengaluru, Chennai, Coimbatore, Delhi and Pune. At the same time, TVS would also launch scooter based on Creon concept which is likely to be one of the most advanced electric two-wheelers in India.

Hyundai Motors to set up new facility in HaryanaManaging Director of Hyundai Motors India recently met the Hon’ble Chief Minister of Haryana and invited him to inaugurate the newly-established headquarters of Hyundai in Gurugram, Haryana. The invitation was accepted by the Chief Minister with commitment of early scheduling of time in this regard.

Photo courtesy : Asian Community News

During their meeting, the company further wished to set up a new state-of-the-art facility in the state. The Chief Minister of Haryana informed that as a fast growing state in the industrial sector, a single-window system has been created for setting up of industries in the state, on which all approvals can easily be obtained.

As per him, India is performing well in the ease-of-doing business and ease-of-living index and Haryana is one of the fastest in both these aspects. Further, Haryana is one of the favourite destinations for global investors.

Sona Comstar IRP collaboration for new electric powertrainSona Comstar, an automotive component manufacturer of Haryana, has recently partnered with IRP Nexus Group Ltd (IRP), one of the electric powertrain solution providers of Israel, for development and commercialisation of magnet-less e-motors and controllers for electric two and three-wheelers in the global market.

Photo courtesy : Car and Bike

news & trends

94 INDIAN FOUNDRY JOURNAL | Vol 67 | issue 7 | jul 2021

The International Centre for Entrepreneurship and Technology (iCreate) has started iEV powertrain project aiming at creating and owning futuristic technologies by Indian companies. Under such project, with collaboration of these two companies, IRP would give licence of its technology to Sona Comstar for

manufacturing of the system exclusively in India, in which mass production is expected to commence by 2023.

According to Chief Executive Officer (CEO) of IRP System, their technology would ensure not only cleaner air but also more environment-friendly production process and use of natural resources.

Chief Technology Officer (CTO) of Sona Comstar revealed that with this joint venture, dependence on imports of critical raw materials would be reduced and the system would give rise to cost-effective and compatible solution with security of natural resources keeping away from use of rare-earth elements.

And across the seven seasHydrogen-fuelled IC engine of Cummins Auto component maker Cummins, headquartered in Columbus, Indiana, USA has recently started testing of hydrogen-fuelled internal combustion engine (ICE). This new engine would reduce emissions and provide power and performance to its customers.

The engine would be evaluated in a variety of on-and-off-highway applications in order to accelerate decarbonisation of commercial vehicles.

The company is likely to invest across a range of technologies to support hydrogen-based transportation. Agreement of Cummins with NPROXX, one of the leading suppliers of containerised storage vessels to enable fast refuelling of hydrogen to the end-users, would enhance integration of fuel cell or hydrogen engine with high-pressure gas cylinder tanks and supply lines on the vehicle.

Suzuki Motor to move to EV market by 2025Suzuki Motor Corporation headquartered in Tokyo, Japan is likely to enter electric vehicle (EV) market by 2025, with their first marketing in India.

The company is planning for an all-electric compact model to be made available at nearly 1.5 million Yen ($13,626) after taking into account subsidies from the Government.

Arcelor-Mittal to invest in green technology

Arcelor-Mittal, one of the leading steel companies in the world, has recently signed a memorandum of understanding (MoU) with the Government of Spain

for investment of Euro 1 billion in decarbonisation technologies in their plant at Gijón.

With this investment, a 2.3 million tonnes green hydrogen direct reduced iron (DRI) facility and a 1.1 million tonnes hybrid electric arc furnace (EAF) would be constructed at their plant in order to move towards DRI-EAF route of production from the blast furnace-basic oxygen furnace steelmaking route.

Sestao steel plant of Arcelor-Mittal in Spain is likely to become the first steel plant in the world for achieving zero carbon emissions by 2025.