The forging industry, which is among the worst hit in the ongoing economic slowdown, is seeking a bailout package from the Government to avoid closure of 700 small and medium forging units in the country.

“The forging industry is struggling to survive. The economic slowdown coupled with bank’s apathy to fund struggling units affected the industry badly. The Government should take policy initiative to make soft loan and restructure the delayed loan payment without any penalty,” said Mr. Vidyashankar Krishnan, President, Association of Indian Forging Industry (AIFI). The industry had already shed 50,000 people across the country and lost Rs. 500 crore since last September. About 70 per cent of industry’s revenue comes from the auto industry. If the auto industry is not improving, the industry expects more units to close down.

The AIFI has demanded a ban on import of auto components, especially forgings.

Published in Deccan Chronicle dated. 31.3.2009.