Lok Sabha Question No. 3407 (UNSTARRED), answered on 2016-12-06
Subject: Indian Capital Goods Sector
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: SHRIKANT EKNATH SHINDE

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES DEPARTMENT OF HEAVY INDUSTRY

## LOK SABHA UNSTARRED QUESTION NO.3407 TO BE ANSWERED ON 06.12.2016

## Indian Capital Goods Sector

## 3407. DR. SHRIKANT EKNATH SHINDE:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a)  whether  the  Government  had  launched  a  scheme  with  an  estimated  outlay  of  Rs.  930.96 crore to make the Indian capital goods sector globally competitive;
- (b)  if  so,  the  criteria/requirements  fixed  by  the  Government  for  providing  grant  under  this scheme;
- (c) the number of proposals received under the scheme during the last two years along with the details of the proposals approved by the Government;
- (d) the details of the grant disbursed so far by the Government under the scheme;
- (e)  whether  the  Government  has  fixed  any  target  for  increase  in  growth  in  capital  goods production and employment and manufacturing sector; and
- (f) if so, the details thereof and the achievements made so far in this regard?

## ANSWER MINISTER  OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  BABUL SUPRIYO)

- (a):  Yes Madam. A Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector has been notified on 5/11/2014 by the Department of Heavy Industry (DHI).
- (b):  The  Scheme  has  four  Infrastructural  Components  namely  (1)  Setting  up  Central  of Excellence for Technology Development (CoE), (2) Integrated Industrial Infrastructure Facility (IIIF), (3) Common Engineering Facility Centre (CEFC) and (4) Test and Certification Centre (T&CC). The Scheme also has a Component for Financial Intervention by way of Technology Acquisition Fund Programme (TAFP).

Different Eligibility Conditions are in place for different component of the Scheme. While for CoE Component, National Centres of Excellence in  Education and Technology such as Indian Institute  of  Technology,  Central  Manufacturing  Technology  Institute,  Bangalore  etc. are eligible,  for  IIIF  and  CEFC  Components  Special  Purpose    Vehicle  (SPV)  formed  by  local Industries, Industry  Associations  Central/  State  Government  etc  are  eligible.  For  T&CC Component SPV will be formed by DHI.  For TAFP Component, Capital Goods manufacturing Unit or their Consortium are eligible to receive financial Support for acquisition or transfer of technology. Detailed Scheme  Notification indicating, inter-alia, Eligibility Conditions is available in the Department of Heavy Industry Website (dhi.nic.in)

(c) & (d): During last two years of 28 proposals have been received under the Scheme (CoE- 7, CEFC- 4, IIIF- 1, TAFP- 16). Out of this proposals 13 Proposals under different components of the Scheme have been approved as under :

- (1) Development  of  Hi-tech  Shuttle-less  Loom  in  CMTI,  Bangalore  under  CoE  Component. Project outlay- Rs. 20.00 crore.  Government of India (GoI) Grant- Rs. 16.00 crore. Grant in Aid released so far is Rs. 5.2366 crore.
- (2) Development  of  11  Machine  Tool  Technologies  in  IIT  Madras  under  CoE  Component. Project Outlay- Rs. 56.12 crore. GoI Grant- Rs. 44.75 crore. Grant in Aid released so far is Rs. 12.2149 crore.
- (3) Development of 3 welding Technologies in PSG College of Technology, Coimbatore under CoE Component.  Project Outlay- Rs. 26.7 crore. GoI Grant- Rs. 21.1 crore. Grant in Aid released so far is Rs. 12.79crore.
- (4) Development  of  Smart  Submersible  Pumps  by  Scientific  and  Industrial  Testing  and Research Centre, Coimbatore under CoE Component.  Project Outlay- Rs. 8.41 crore. GoI Grant- Rs. 6.72 crore.  Fund is yet to be released.
- (5) Setting up a CEFC near Chakan, Maharashtra by TAGMA Centre of Excellence of Training for Tools, Moulds and Dies Industry in the region around Pune. Project Outlay- Rs. 51.91 crore. GoI Grant- Rs. 26.27 crore.  Grant in Aid released so far is Rs. 8.18 crore.
- (6) Setting  up  a  Training  Centre  for  Machine  Tools  by  HMT  Machine  Tools  Limited  in Bangalore under CEFC Component of Scheme. Project Outlay- Rs. 0.97 crore. GoI GrantRs. 0.776 crore.  Grant in Aid released so far is Rs. 77.6 lakh.
- (7) Setting  up  a  High  end  specialised  Training  Centre  for  Metallurgy,  Welding,  Gear Manufacturing  and  Non  Destructive  Testing    by  HEC  Limited    in  Ranchi  with  Russian collaboration    under  CEFC  Component  of  Scheme.  Project  Outlay-  Rs.  50.00  crore.  GoI Grant- Rs. 30.00 crore. Fund is yet to be released.
- (8) Setting up a CEFC near Surat, Gujarat by Science, Engineering & Technology Upliftment Foundation for Textile Machinery Industry. Project Outlay- Rs. 50.27 crore. GoI Grant- Rs. 27.81 crore. Fund is yet to be released.
- (9) Setting  up  a  Machine  Tool  Park  in  Tumkur,  Karnataka  under  IIIF  Component  in Collaboration with Government of Karnataka. Project Outlay- Rs.421.00 crore. GoI GrantRs. 125.00 crore. Fund is to be released.
- (10) Development of Four Guideway CNC lathe by HMT Machine Tools Limited under TAFP Component. Project Cost 4.40 crore, GoI Grant Rs. 1.10 crore. Fund is yet to be released.
- (11) Development of Four Guideway CNC lathe by HMT Machine Tools Limited under TAFP Component. Project Cost 1.52 crore, GoI Grant Rs. 0.38 crore. Fund is yet to be released.
12. Manufacturing of Allied Engineering Pvt. Ltd. under TAFP Component. Project Cost 14.98
- (12) crore, GoI Grant Rs. 3.75 crore. Fund is yet to be released.
- (13) Development  of  cutting  edge  Robotic  Laser  Cladding  Technology  for  Hydro  Power Turbines by Industrial Processors & Metallizers Pvt. Ltd. under TAFP Component. Project Cost 9.47 crore, GoI Grant Rs. 1.24 crore. Fund is yet to be released.

(e)  &  (f):  The  Government  has  not  fixed  any  target  for  Capital  Goods  production.  However, National Capital Goods Policy envisages to achieve production level of Capital Goods in excess of  Rs.  750,000  crore  and  to  direct  domestic  employment  in  the  sector  to  5  million  from  the present 1.4 million by 2025.

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