Lok Sabha Question No. 255 (STARRED), answered on 2016-03-15
Subject: Performance of Heavy Industries
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: SHARAD BANSODE

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

## LOK SABHA STARRED QUESTION NO.255 TO BE ANSWERED ON 15.03.2016

## Performance of Heavy Industries

*255. ADV. SHARADKUMAR MARUTI BANSODE:

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

- (a) whether the Government has taken note of the decline in production and performance of the heavy industries sector in the country;
- (b) if so, the details thereof and the reasons therefor; and
- (c)  the  steps  taken/being  taken  by  the  Government  to  arrest  the  declining  trend  and  revamp  the Heavy Industries sector in the country for further growth?

## ANSWER

## MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI ANANT G. GEETE)

- (a) to (c):   A statement is laid on the table of House.

## STATEMENT

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (c)  OF  LOK  SABHA STARRED QUESTION NO. *255 FOR ANSWER ON 15 th  MARCH, 2016 REGARDING PERFORMANCE OF HEAVY INDUSTRIES

(a) to (c) A  Key  Component  of  Heavy  Industry  is  Capital  Goods  Industry  which  has important  sub  sectors  like  Machine  Tools,  Textile  Machinery,  Heavy  Electrical  equipment, Earthmoving & Mining Machinery, Plastic Machinery, Process Plant Equipment and Tools, Dies & Moulds, Printing machinery, Food Processing Machinery, Metallurgical Machinery. As per the information provided by Industry Associations, production of major Capital Goods Subsectors in the country stood at around Rs 2,30,000 crore, with a 3 year Compounded Annual Growth Rate (CAGR)  of  1.1%.  Major  issues  adversely  affecting  the  growth  of  the  Indian  Capital  Goods Industry are lack of cutting edge technology, lack of skilled manpower, inadequate infrastructure facility, lack of standardization and testing facility. Further global  economic slowdown in general has also affected the sector.

In  order  to  address  these  issues,  the  Government  has  launched  a  Scheme  for  enhancement  of competitiveness in the Indian Capital Goods Sector, with a budgetary outlay of 581.22 crores. The scheme has 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 & 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 on 15.2.2016 under  'Make  in  India'  initiative  with  a  view  to  realize  the  potential  of  domestic  capital  goods industry.  The  vision  of  the  policy  is  to  increase  the  share  of  capital  goods  contribution  from present  12%  to  20%  of  total  manufacturing  activity  by  2025.    Policy,  inter-alia,  envisages increasing production of capital goods from Rs. 230,000 Cr in 2014-15 to Rs. 750,000 Cr in 2025 and  raising  direct  and  indirect  employment  from  the  current  8.4  million  to  30  million.  Policy document is available on the Department of Heavy Industry website (dhi.nic.in).

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