Lok Sabha Question No. 5938 (UNSTARRED), answered on 2018-04-03
Subject: National Policy on Capital Goods
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: R. GOPALAKRISHNAN

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

## LOK SABHA UNSTARRED QUESTION NO. 5938 TO BE ANSWERED ON 03.04.2018

## National Policy on Capital Goods

## 5938. SHRI R. GOPALAKRISHNAN:

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

- (a) whether the Government has launched the National Policy on Capital Goods; and (b)  if  so,  the  details  of  the  policy  and  the  achievements  made  thereunder,  Statewise  including Tamil Nadu?

## ANSWER

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

- (a) to (b): Yes, Madam.

The Government has launched the National Capital Goods Policy in 2016.  The policy has been formulated with a view to increase the share of Capital goods contribution from 12% to 20% of total  manufacturing  activity  by  the  year  2025.    The  policy  aims  to  make  India  one  of  the  top capital  goods producing nations of the world by  raising the total production and exports level significantly.  The policy also envisages improving technology depth of the Indian Capital Goods to reach advanced level.

Major recommendations of the National Capital Goods Policy are:

- (1). Make in India initiative :    To  integrate  major  capital  goods  sub-sectors  like  machine tools, textile machinery, heavy electrical equipment, plastic machinery, process plant equipment, metallurgical machinery and dies, moulds & press tools, printing and packaging machinery and food processing machinery as priority sector to be envisaged under 'Make in India' initiative.
- (2). To  create  an  enabling  scheme  a  pilot  for  'Heavy  Industry  Export  &  Market development  Assistance  Scheme  (HIEMDA) '  with  a  view  to  enhance  the  export  of  Indian made capital goods.  This will also require developing a comprehensive branding plan for the CG sector with the support of India Brand Equity Foundation (IBEF) and other such organization
- (3). To strengthen existing capital goods scheme :    The policy recommends increasing the budgetary  allocation  &  scope  of  the  present  'Scheme  on  Enhancement  of  Competitiveness  of Capital Goods' by adding a set of components including technology, skills & capacity building, user  promotional activities,  green  engineering  and  energy  advanced  manufacturing  and  cluster development

- (4). To  Launch  a  Technology  Development  Fund  under  the  PPP  model to fund technology acquisition, transfer of technology, purchase of IPRs, designs & drawings as well as for commercialization of such technologies of capital goods
- (5). To  create  a  'Start-up  Centre  for  Capital  Goods  Sector' shared  by  DHI  and  CG industry/industry  association  in  80:20  ration  to  provide  and  array  of  technical,  business  and financial  support  resources  and  services  to  promising  start-ups  in  both  the  manufacturing  and services space.  These services Should focus on Pre-incubation, Incubation and Post-Incubation phases of a start-up's growth to ensure that a robust foundation is established.
- (6). To ensure Mandatory Standardization which included, inter alia,  defining  minimum acceptable standards for the industry and adoption of International Organization for Standardization (ISO) standards in the absence of Other standards, to institute formal development  program  for promoting  and framing Standards with Standards  Developing Organizations (SDOs) including Bureau of Indian Standards (BIS), international standard bodies, test/ research institutions a concerned industry/ industry association.
- (7). To upgrade development, testing and certification infrastructure such as    Central Power Research Institute (CPRI),  and set up  10 more  CMTI like institutes to meet the requirements of all sub-sectors of capital goods.
- (8). To  enhance  Skill  Development :    to  develop  a  comprehensive  skill  development plan/scheme with Capital Goods skill council and to upgrade existing training centres and set up 5 regional State-of-the-Art Greenfield Centres of Excellence for skill development of CG sector.
- (9). To  provide  schemes  for  enhancing  competitiveness  through  a  cluster  approach, especially  for  CG  manufacturing SMEs  with thrust on  critical components of competitiveness such  as  Quality  management,  Plant  maintenance  management,  Energy  management,  Cost management, Human Resource management and prevention of corrosion.
- (10). To Modernize the existing CG manufacturing units , especially SMEs by replacing the modern, computer controlled and energy efficient machineries across capital goods sub-sector, based on capital subsidy to promote the manufacturing of quality product

Details of Policy are available on the web site of the Department of Heavy Industry at dhi.nic.in

Following  is  the  list  of  projects  approved  State-wise  under  the  National  Capital  Goods Policy including Tamil Nadu:

## Delhi:

1.        Centre of Excellence (CoE) at IIT Delhi for Textile Machinery.
2.   Common Engineering Facility Centre (CEFC) of M/s. Automation Association of India and IIT Delhi for CEFC on industry 4.0 .
3.   Technology Acquisition Fund Programme (TAFP) by Allied Engineering Pvt. Ltd, Delhi on Manufacturing of Heavy Duty High Reliability Electrical Specialised Power Cables.

4.    TAFP by Industrial Processors & Metallizers Pvt. Ltd, Delhi on Cutting Edge Robotic Laser Cladding Technology for Hydro Tarbines indigenously using Tungsten Carbide Powder.

## Gujarat:

5.     Common Engineering Facility Centre (CEFC) at Bardoli, Surat by Science Engineering Technological Upliftment (SETU) Foundation.

## Haryana:

6.      Common Engineering Facility Centre (CEFC)  for skill development of design engineers by M/s Korus Engineering Solutions Private Limited, Bahadurgarh

## Jharkhand:

7.          CoE  at  HEC,  Ranchi  for  manufacturing  Hydraulic  Excavator  by  HEC  with  institutional support of ISM Dhanbad
8.     CEFC at HEC, Ranchi by CEFC Pratham Foundation

## Karnataka:

9.   Centre of Excellence (CoE) at CMTI, Bangalore by TMMA for development of shuttle less rapiers looms of 450 RPM
10.     CoE Proposal from IISc-Bangalore with Wipro 3D for design and development of 3 D Printing technologies
11.          Common  Engineering  Facility  Centre  (CEFC)  at  HMT  MTL,  Bangalore  for  Skill Development
12.   CEFC of Indian Institute of Science, Bangalore for CEFC industry 4.0
13.      CEFC of CMTI Bangalore for industry 4.0
14.       CEFC  for modernization of Precision Metrology Laboratory by CMTI Bangalore.
15.        Cost  escalation  of  Rs  18.46  for  the  Nano  Manufacturing  Technology  Centre  (NMTC) project of CMTI, Bangalore and Rs 7.75 crores for the Sensor Technology Development Facility (STDF) project of CMTI, Bangalore in addition to the pending fund requirement of Rs 6.6 crores for NMTC project and Rs 45.05 crores for the STDF project.

16.     Integrated Industrial Infrastructural Facility (IIIF) at Integrated Machine Tools Park near Tumkur, Karnataka by Govt. of Karnataka
17.    Technology Acquisition Fund Programme (TAFP) by HMT MTL on Development of Four Guideway CNC Lathe, Bangalore.
18.        TAFP  by  HMT  MTL  on  Develop  Turn  Mill  Centre,  Bangalore  with  Y  axis  SB  CNC 30TMY and integrate high precision C axis on the Main Spindle

## Maharashtra :

19.    Common  Engineering  Facility  Centre  (CEFC)  at  Chakan  near  Pune  for  Tools  &  Dies industry by TAGMA.
20.   CEFC on Industry 4.0 by M/s. SLK CSR foundation,  groups and others, Pune.

## Tamil Nadu:

21.    Centre of Excellence (CoE) at IIT, Madras for development of  11 advanced technologies for Machine Tools & Production  Technology.
22.  CoE  at  PSG  College  of  Technology,  Coimbatore  for  development  of  three  Welding Technologies.
23.    COE  at  Coimbatore  by  Sitarc  on  Smart  Submersible  (6  inch)  Pumping  Solutions  for Industrial and Water Supply Applications

## Uttar Pradesh :

24.    TAFP by PTC Industries Ltd, Lucknow on Development & & Commercialization of Titanium Casting with Ceramic Shelling Technology.

## West Bengal :

25.   Centre of Excellence (CoE) at IIT Kharagpur for Advanced Manufacturing.

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