Lok Sabha Question No. 246 (UNSTARRED), answered on 2019-02-05
Subject: Growth of Heavy Industries
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: ALOK SANJAR

## GOVERNMENT OF INDIA

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

## LOK SABHA UNSTARRED QUESTION No. 246 TO BE ANSWERED ON 05.02.2019

## Growth of Heavy Industries

## 246. SHRI ALOK SANJAR:

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

- (a)  the  details  of  the  growth  of  various  industries i.e. Heavy  Engineering  Equipments  and Machine Tools, Automotive, Heavy Electrical Engineering etc. in the country including the Bharat  Heavy  Electricals  Limited  during  each  of  the  last  three  years  and  the  current  year, sector-wise;
- (b)  whether  the  Government  has  reached  the  development  goals  during  the  said  period  in these sectors;
- (c) if so, the details thereof and if not, the reasons therefor; and
- (d)  the  remedial  steps  taken  by  the  Government  in  these  sectors  to  encourage  them  in achieving their respective goals?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES (SHRI BABUL SUPRIYO)

- (a) : The details of the growth of various industries i.e. Heavy Engineering Equipments and Machine Tools, Automotive, Heavy Electrical Engineering etc. in the country including the Bharat Heavy Electricals Limited during each of the last three years is as follows :

| Sector                                                | Sub sector                          | 2015-16   | 2016-17   | 2017-18   |
|-------------------------------------------------------|-------------------------------------|-----------|-----------|-----------|
| Heavy Engineering Equipments and Machine Tools Sector | 1. Machine Tools                    | 11.72%    | 22.78%    | 25.69%    |
| Heavy Engineering Equipments and Machine Tools Sector | 2. Dies, Moulds and Press Tools     | 2.41%     | (-) 1.67% | 8.93%     |
| Heavy Engineering Equipments and Machine Tools Sector | 3. Textile Machinery                | (-) 5.45% | 1.06%     | 3.75%     |
| Heavy Engineering Equipments and Machine Tools Sector | 4. Printing Machinery               | 7.41%     | (-) 2.90% | (-) 8.57% |
| Heavy Engineering Equipments and Machine Tools Sector | 5. Earthmoving and Mining Machinery | 7.44%     | 43.45%    | 14.86%    |
| Heavy Engineering Equipments and Machine Tools Sector | 6. Plastic Machinery                | 8.0%      | 11.11%    | 12.50%    |
| Heavy Engineering Equipments and Machine Tools Sector | 7. Food Processing Machinery        | 20.10%    | 15.44%    | 2.32%     |
| Automotive Sector                                     | Passenger Vehicles                  | 7.23%     | 9.26%     | 7.91%     |
| Automotive Sector                                     | Commercial Vehicles                 | 11.51%    | 4.14%     | 19.97%    |
| Automotive Sector                                     | Three Wheelers                      | 1.05%     | -4.89%    | 24.19%    |
| Automotive Sector                                     | Two Wheelers                        | 3.01%     | 6.89%     | 14.83%    |
| Heavy Electrical Engineering Sector                   |                                     | 2015-16   | 2016-17   | 2017-18   |
| Heavy Electrical Engineering Sector                   | Production (in Rs. Crores)          | 5.77%     | 9.91%     | 10.23%    |

In addition to above, the detail of Bharat Heavy Electricals Limited (BHEL) is as under :

|                            | FY 2015-16   | FY 2016-17   | FY 2017-18   | 2017-18 (upto Q2)   | 2018-19 (upto Q2)   |
|----------------------------|--------------|--------------|--------------|---------------------|---------------------|
| Turnover (Rs. Crore) #     | 25,091       | 27,740       | 27,850       | 11,523              | 12,397              |
| Growth in Turnover YoY (%) | (-) 15%      | 10.6%        | 0.4%         | N.A.                | 7.6%                |

(b) to (d) : The Government of India through the Department of Heavy Industry has launched a  scheme  for  'Enhancement  of  Competitiveness  in  the  Indian  Capital  Goods  Sector'  in November 2014. The objective of the Scheme is to address the constraints faced by the sector, such as lack of  cutting-edge technology  and R&D support, lack of involvement of reputed academia  and  research  institutes  in  the  area  of  applied  research,  absence  of  common engineering facilities, sector specific industrial cluster park and lack of test and certification centre due to which Indian capital goods sector became non-competitive at international level. Under the Scheme, financial assistance  is  provided  for  setting  up  of  Centres  of  Excellence (CoE) for research and development at reputed universities / R&D Institutes by collaborating with industry, research institutes, and the Government.  The scheme also provides financial assistance  for  technology  transfer  under  Technology  Acquisition  Fund  Program  (TAFP)  to capital  goods  manufacturing  units.  Besides,  the  scheme  provides  financial  assistance  for creating  common  Industrial  Integrated  Infrastructure  Facility  (IIIF)  such  as  Machine  Tool Industrial  parks  and  Common  Engineering  Facility  Centres  (CEFC)  and  Test  and  & Certification Centres (T& CC) for Earthmoving, Construction and Mining Machinery.

The Government of India announced the National Capital Goods Policy in May 2016. The policy aims to facilitate improvement in technology depth across sub-sectors of Capital Goods,  increase  skill  availability,  ensure  mandatory  standards  and  promote  growth  and capacity building of MSMEs. The policy will help in realizing the vision of 'Building India as the World class hub for Capital Goods.

Department of Heavy Industry, after consultation with various stakeholders and  with support from IEEMA, launched an Indian Electrical Equipment Industry Mission Plan 20122022, with a view to boost and support the domestic electrical equipment industry's  future development  and  enhance  its  global  competitiveness.  The  Vision  2022  articulated  in  the Mission Plan is 'to make India the country of choice for production of electrical equip- ment and reach an output of USD 100 billion by balancing exports and imports'. The Mission Plan identifies five key areas for action:

(i) industry competitiveness; (ii)technology up gradation; (iii)skills development; (iv)exports, and (v) conversion of latent demand.

Against each area of concern, detailed recommendations had been given for strategic and    policy  interventions  by  different  stakeholders,  including  the  Government  and  the industry.  Many  of  the  recommendations  of  the  Mission  Plan  were  addressed  by  the Government.

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