Lok Sabha Question No. 1375 (UNSTARRED), answered on 2024-07-30
Subject: National Capital Goods Policy
Ministry: HEAVY INDUSTRIES
Asked by: Shri Shyamkumar Daulat Barve, Shri Shrirang Appa Chandu Barne, Shri Sanjay Haribhau Jadhav, Shri Arvind Ganpat Sawant

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1375

ANSWERED ON 30.07.2024

## NATIONAL CAPITAL GOODS POLICY

## 1375 SHRI SHYAMKUMAR DAULAT BARVE:

SHRI SHRIRANG APPA CHANDU BARNE:

SHRI SANJAY HARIBHAU JADHAV:

SHRI ARVIND GANPAT SAWANT:

Will the Minister of HEAVY INDUSTRIES भारी उद्योग मंत्री be pleased to state:

(a) whether the Government has implemented National Capital Goods Policy and if so, the salient features of the policy;

(b) the manner in which the policy has boosted the manufacturing sector which was not performing as per expectations during recent years;

(c) the number of employment generated under the said policy during the last three years;

- (d)  the  number  of  jobs  likely  to  be  created  in  the  coming  five  years  consequent  upon  the implementation of the said policy; and

(e) the details of the plan with the Government for implementation of the said policy?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES

## (SHRI BHUPATHIRAJU SRINIVASA VARMA)

- (a): The Government of India announced the National Capital Goods Policy in 2016.  The major salient features of the policy are as under:

(i)     To  increase  budgetary  allocation  and  scope  of  the  present  'Scheme  on  Enhancement  of Competitiveness in the Capital Goods Sector' adding components i.e. skills, capacity building, advanced manufacturing and cluster development.

(ii)  To  launch  a  'Technology  Development  Fund'  under  PPP  model  to  fund  technology acquisition/ transfer, purchase of IPRs/ designs and drawings/ commercialization.

(iii) To set up regional State-of-the-Art Greenfield Centre of Excellence for skill development.

(iv)  To  modernize  existing  CG  manufacturing  units,  especially  SMEs  by  replacing  with  the modern, computer controlled and energy efficient machineries across capital goods sub-sectors.

(v) To upgrade/ develop, testing and certification infrastructure.

(b): The  National  Capital  Goods  Policy,  2016,  inter  alia,  recommended  increasing  the budgetary allocation & scope of the present 'Scheme on Enhancement of Competitiveness of Capital Goods' which include setting up of Centers of Excellence, Common Engineering Facility Centers, Integrated Industrial Infrastructure Park and Technology Acquisition Fund Programme.

On January 25, 2022, Ministry of Heavy  Industries has notified  the  Scheme  on 'Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II' for providing assistance to Common Technology Development and Services Infrastructure.  The scheme has a financial  outlay  of  Rs.1207  crores  with  budgetary  support  of  Rs.975  crore  and  Industry Contribution of Rs.232 crore. Under the Scheme, a total of 33 projects with project cost of Rs 1366.94 crores  (due to  higher contribution  by  Industry) have been sanctioned so far.  Due to catalytic effect of MHI intervention, the production of Capital Goods Sector has increased from Rs 2,29,533 crore in 2014-15 to Rs.4,29,001 crore in 2023-24.

(c) & (d): No such data is collated at the Ministry level.

(e): Ministry of Heavy Industries launched a Scheme for 'Enhancement of Competitiveness in the  Indian  Capital  Goods  Sector-  Phase-II'  on  25 th January,  2022  as  a  part  of  policy implementation.

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