New Safety Regulations for Machinery to Impact 150,000 Manufacturers

ENA Sectors 2024-09-19 15:25:11 New Delhi, Sep 19 (KNN) New safety regulations for machinery and electrical equipment, set to come into effect from August 2025, could impose significant challenges on Indias small manufacturers, industry experts have cautioned. The Machinery and Electrical Equipment Safety (Omnibus Technical Regulation) Order, 2024, was introduced by the Ministry of Heavy Industries in August to align Indian safety standards with global practices. While the new rules are a step toward enhancing safety, their rapid implementation is expected to hit micro, small, and medium enterprises (MSMEs) particularly hard. The regulations apply stringent safety standards to all machinery and electrical equipment produced or imported into India, affecting more than 150,000 manufacturers and over 50,000 types of equipment. Industry observers estimate compliance costs ranging from Rs 50,000 to Rs 50 lakh, depending on the type of machinery and required standards. Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), highlighted the steep financial and technical barriers these regulations present to MSMEs. Most small manufacturers currently adhere to ISO 9001, a management-focused standard, which doesn't address safety concerns in manufacturing. The new rules introduce a whole new set of compliance requirements, he said. Srivastava added that many smaller firms lack the advanced technology required to meet the new safety standards, complicating their ability to comply. The regulations are tiered, with machinery classified into three safety categories, but the one-year deadline for compliance leaves MSMEs scrambling for solutions. The MSME sector is already struggling, and these rules could push it further backward, said Rajnish Goenka, founder-chairman of the MSME Development Forum, which is currently in talks with the government seeking an extension. Despite exemptions for export-oriented machinery, many Indian manufacturers serve both domestic and international markets, leaving them vulnerable to regulatory burdens across their entire product range. Meanwhile, India's engineering exports rose to USD 35.76 billion between April and July 2024, while imports surged by 8.17 per cent, reaching USD 46.57 billion, as per commerce ministry data. Still, some experts remain optimistic about the long-term benefits of the regulations. Improved safety standards will enhance operational efficiency and open doors to global markets, said Mukesh Mohan Gupta, president of the Chamber of Indian Micro Small & Medium Enterprises. The Ministry of Heavy Industries has yet to respond to industry concerns over the looming compliance deadline. (KNN Bureau) 39333 https://knnindia.co.in/news/newsdetails/sectors/new-safety-regulations-for-machinery-to-impact-150000-manufacturers 2024-09-19 15:25:11 knnindia.co.in New Safety Regulations for Machinery to Impact 150,000 Manufacturers