Lok Sabha Question No. 683 (UNSTARRED), answered on 2024-02-06
Subject: Development of Heavy Engineering Industries
Ministry: HEAVY INDUSTRIES
Asked by: Gajanan Chandrakant Kirtikar

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 683

ANSWERED ON 06.02.2024

## DEVELOPMENT OF HEAVY ENGINEERING INDUSTRIES

## 683. SHRI GAJANAN KIRTIKAR:

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

- (a) the steps taken by the Government for development of heavy engineering industries within the country instead of importing heavy engineering equipments and plants from abroad;
- (b) the estimated amount of foreign reserves likely to be saved with the domestic development of the said industries;
- (c) the details of heavy industrial equipments and plants imported during the last five years, industry-wise;
- (d) whether the Government proposes to develop the country as a hub for export of heavy industrial equipments and plants; and
- (e) if so, the details thereof including the outcomes of the said schemes so far?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI KRISHAN PAL GURJAR)

- (a): In order to encourage the technology development and to augment the manufacturing infrastructure in the Capital Goods sector for domestic as well as export purposes, Ministry of Heavy  Industries  (MHI)  launched  a  'Scheme  for  Enhancement  of  Competitiveness  in  the Indian Capital Goods Sector' in the year 2014.  Under this Scheme, 33 projects with budgetary support of Rs. 583.312 crore were sanctioned.  These projects aimed at addressing technology gaps, infrastructural requirements and some developmental needs of the sector.

Further, on 25 th January, 2022, MHI notified the Phase-II of the Scheme to expand and enlarge the impact created by Phase-I of the Scheme with a financial outlay of Rs. 1207 crore, budgetary support of Rs.975 crore and industry contribution of Rs.232 crore.  A total of 32 projects with project cost of Rs. 1363.87 crore (due to higher contribution by Industry) and Government Contribution of Rs. 960.63 crore have been approved so far under the Phase-II of the 'Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector' and Rs. 318.49  crore has already been sanctioned for the approved projects under the Scheme.

Further,  under  the  'Atamanirbhar  Bharat'  initiative  to  provide  purchase  preference domestic  manufacturers,  Public  Procurement  Order,  (Preference  to  Make  in  India)  on Industrial Steam Generators /Boilers has been issued.

(b): No such data is maintained by this Ministry.

(c): Industry-wise Import Data of sub sectors of Capital Goods Industry for the last five years:

(Rs. in Crore)

|   S.No | Sub-Sector of Capital Goods         | 2018-19   | 2019-20   | 2020-21   | 2021-22   | 2022-23   |
|--------|-------------------------------------|-----------|-----------|-----------|-----------|-----------|
|      1 | Machine Tools-Import                | 12,390    | 10,288    | 5,965     | 7,397     | 13,671    |
|      2 | Dies, Moulds and Press Tools        | 5,500     | 6,356     | 6,000     | 6,382     | 6,701     |
|      3 | Textile Machinery                   | 13,106    | 11,233    | 8,137     | 15,002    | 23,369    |
|      4 | Printing Machinery- Import          | 8,922     | 8,969     | 6,814     | 7,724     | 10,216    |
|      5 | Earthmoving and Mining Machinery    | 5,600     | 4,812     | 1,336     | 1,345     | 1,530     |
|      6 | Plastic Processing Machinery-Import | 1,304     | 914       | 1,860     | 3,024     | 3,477     |
|      7 | Food Processing Machinery           | 4,742     | 4,487     | 1,965     | 5,610     | 7,038     |
|      8 | Process Plant Equipment             | 4,200     | 4,650     | 3,024     | 3,500     | 6,317     |

As per the inputs provided by Industry Associations, the details of imports in Heavy Electrical Equipment Sector during last five years is as under:

| Year    | Import (₹ Cr.)   |
|---------|------------------|
| 71,309  | 2018-19          |
| 67,937  | 2019-20          |
| 63,840  | 2020-21          |
| 81,422  | 2021-22          |
| 2022-23 | 1,01,180         |

Source: DGCIS, IEEMA

(d)&(e): No direct export promotion scheme is administered by MHI.  This Ministry is closely coordinating with manufacturers to boost export.

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