Lok Sabha Question No. 301 (UNSTARRED), answered on 2016-04-26
Subject: Machine Tool Industry
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: PRAHLAD SINGH PATEL

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

## LOK  SABHA UNSTARRED QUESTION NO.301 TO BE ANSWERED ON 26.04.2016

Machine Tool Industry

## 301. SHRI PRAHLAD SINGH PATEL:

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

- (a) whether the Government has any proposal to expedite augmenting of the capacity of machine tool industry in the country;
- (b) if so, the details thereof;
- (c)  whether  the  Government  proposes  to  encourage  international  companies  to  start  Research  & Development (R&D) activities in  order  to  meet  the  future  requirements  of  various  industries  in  the country; and
- (d) if so, the details thereof and the steps taken so far in this regard?

## ANSWER MINISTER OF  STATE IN THE MINISTRY OF  HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI  G.M. SIDDESHWARA)

(a) & (b):    Yes.  No  license  is  required  for    setting  up  of  Machine  Tools  manufacturing  unit  in  the country.  Presently 100% Foreign Direct Investment is allowed through automatic route in Machine Tools  Industry.    Further,    keeping  in  view  the  strategic  nature  of  Capital  Goods  which  includes Machine Tools Industry as a very important sub-sector, a Scheme for enhancement of competitiveness in the Indian Capital Goods Industry has been launched by the Department of Heavy Industry. Under the said Scheme there is a component of setting up Integrated Industrial Infrastructural facilities (IIFC) for Machine Tools Industry and the proposal of Karnataka Government  for setting up the Machine Tools  Park  near  Tumkur  has  been  approved  by  the  Government.    This  is  expected  to  augment  the capacity of machine tool industry in India.

In  addition  to  IIFC,    there  is  a  component  of  Setting  up  Centre  of  Excellence  for  technology development  (CoE)  under  which  setting  up  of  a  COE  at  IIT  Madras  with  six  industry  partners  for development  of  11    Machine  Tool  technologies  has  also  been  approved  by  the  Government. Development of advance technology is likely to result in import substitution and increased capacity in domestic manufacturing of Machine Tools.

Details of the Scheme and its components are available in the Department of Heavy Industry website at dhi.nic.in.

(c) & (d): Government of India has signed a Memorandum of Understanding on 5 th October, 2015 with M/s. Fraunhofer Society, Germany - an applied research organization of global repute, on technology collaboration in the field of manufacturing including capital goods industry.  Machine Tools industry is an important sub-sector of capital goods sector.  Under the component of technology  acquisition fund programme  of  the  Scheme  on  'Enhancement  of  the  Competitiveness  in  the  Indian  Capital  Goods Sector' a proposal from HMT Machine Tools Ltd.  for joint research and development in the Machine Tool  sector  with  M/s.  Fraunhofer  Socitey,  Germany,  has  been    approved.    Two  project  namely  (a) Upgradation of four Guideway CNC Lathe and (b) Acquisition of higher C Axis accuracy of Turn mill Centre in collaboration with M/s. Fraunhofer Socitey, Germany,  with project outlays of Rs. 4.4 Crore and Rs. 1.1 Crore respectively have been approved.

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