Lok Sabha Question No. 2088 (UNSTARRED), answered on 2016-11-29
Subject: Assessment of Industrial Sector
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: MANOJ RAJORIA

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

## LOK SABHA UNSTARRED QUESTION NO. 2088 TO BE ANSWERED ON 29.11.2016

## Assessment of Industrial Sector

2088. DR. MANOJ RAJORIA:

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

- (a) whether the Government has made any assessment on the development and growth of heavy engineering  equipment,  machine  tools,  automotive  and  electrical  equipment  sectors  in  the country during the last three years and the current year;
- (b) if so, the details and outcome thereof;
- (c)  whether  any  target  for  development  of  the  said  industries  has  been  fixed  and  if  so,  the achievements during the said period; and
- (d)  the  steps  taken  by  the  Government  to  encourage  the  development  and  growth  of  the  said sector in the country?

## MINISTER  OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND

## ANSWER PUBLIC ENTERPRISES (SHRI  BABUL SUPRIYO)

- (a)  &  (b):  The  growth  registered  in  Machine    Tool,  Earthmoving  &  Mining  Machinery,  Heavy Electrical Equipment during the last three years is as under:-

(Rs. in crore)

| Segment                                              | 2013-14        | 2014-15       | 2015-16 (Estimated)   |
|------------------------------------------------------|----------------|---------------|-----------------------|
| Machine Tool Annual Percent Growth                   | 3,481 -10.40%  | 4,230 21.52%  | 4,727 11.75%          |
| Earthmoving & Mining Machinery Annual Percent Growth | 16,000 -3.61%  | 17,000 6.25%  | 19,375 13.97%         |
| Heavy Electrical Equipment Annual Percent Growth     | 128,823 -4.13% | 136,953 6.31% | 144,861 5.77%         |

(Source : Industry Associations)

The Growth in production for Automobile Industry as reported by Society of Indian Automobile Manufacturers (SIAM),  is as under:

| (Number in Thousands units)   | (Number in Thousands units)   | (Number in Thousands units)   | (Number in Thousands units)   |
|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
| 2013-14                       | 2014-15                       | 2015-16                       | 2016- 17 Apr. to Oct.         |
| 21,500                        | 23,358                        | 23,960                        | 15,791                        |

(c):  No such targets were fixed for Capital Goods Industry which includes its sub-sectors like Machine Tool, Earthmoving & Mining Machinery, Heavy Electrical Equipment.

No such  targets  were  fixed  for  Automobile  Industries  as  well.    However,  the  Government  in consultation with Automobile Industry envisions a growth part for the Automobile sector in the form of Automobile Mission Plan.  First such plan was launched in 2006 for the period of 10 years.  The performance of this plan is given below.

-  India  has  attracted  significant  quantum  of  local  and  global  automobile  manufacturers (OEMs)  as  well  as  component  manufacturers,  exceeding  the  target  of  Rs.  1,57,500 Crores.
-  While cumulative domestic sales volume of commercial vehicles, passenger vehicles and tractors have been achieved, 2 and 3 Wheelers have fallen short of their targets.

(d):  The  Government  has  launched  a  Scheme  in  November,  2014  for  enhancement  of competitiveness  in  the  Indian  Capital  Goods  Sector  having  infrastructural  components  like setting  up  of  (1)  Centre  of  Excellence  for  technology  development,  (2)  Integrated  Industrial Infrastructural facility i.e. industrial park (3) Common Engineering Facility Centre and (4) Test &  Certification  Centre.  The  Scheme  also  has  provision  for  financial  intervention  by  way  of Technology Acquisition Fund Programme for acquisition/ transfer of technology. Details of the Scheme are available in the Department of Heavy Industry website (dhi.nic.in).

Further,  the  Government  has  recently  launched  a  National  Policy  of  Capital  Goods  early  this year  under  'Make  in  India'  initiative  with  a  view  to  realize  the  potential  of  domestic  capital goods industry. Details of the policy may be seen at the Department of Heavy Industry website at dhi.nic.in

As  far  as  Automobile  Sector  is  concerned,  Government  has  taken  series  of  steps  for  the promotion of the industry, like launching of FAME India Scheme for promotions of Electric and Hybrid  Vehicles  and  establishment  of  state  of  the  art  vehicle  testing  centres  under  NATRIP Project.

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