Scheme for Enhancement of Competitiveness of the Capital Goods Sector
The Scheme for Enhancement of Competitiveness of the Capital Goods Sector was approved by Union Cabinet in September 2014. Capital Goods sector has 9-12% share in the total manufacturing by value added but the sector suffers from numerous problems. This sector has been particularly under focus of the NDA Government, which for the first time had also launched a National Capital Goods Policy 2016.
Objective
Objective of this scheme is to enhance the competitiveness in the Indian Capital Goods Sector by setting up modern common facility centers and sector specific industrial cluster parks for providing skill and technology support to industries. The scheme covers four sub-sectors of Capital Goods Industry viz. Machine Tools, Textile Machinery, Construction and Mining Machinery, and Process Plant Machinery.
Duration, Budget and Components
The scheme is to be implemented during 12th plan period i.e. 2012-17 and has total outlay of around Rs. 931 crore. The five components of the scheme are as follows:
Advance “Centres of Excellence” for R&D
Under this component, the government would create the Centres of excellence in institutes such as IIT Delhi, IIT Bombay, IIT Madras, IIT Kharagpur, CMTI Bangalore etc. for R&D in Capital Goods Sector
Integrated Industrial Infrastructure Facilities / Machine Tool Parks
Under this component, the Government plans to establish Integrated Industrial Infrastructure Facilities (Machine Tool Parks) to procvide competitive by providing an ecosystem for production. Establishment of Machine Tool Parks will cut down logistic cost substantially and would be a step forward in making the sector cost effective, having enhanced export capability and favourable for attracting more investment. The park would be established by a Special Purpose Vehicle (SPV) formed by local industries, industry associations, financial institutions, Central / State Governments, R & D Institutions, etc.
Common Engineering Facility Centre
Common Engineering Facility Centre is to be set up for Textile Machinery with active participation of the local industry. This would also be established by a Special Purpose Vehicle (SPV) formed by local industries, industry associations, financial institutions, Central/State Governments, R&D Institutions, etc.
Testing and Certification Centre
Government would establish the Testing and Certification Centre for earth moving machineries in view of the fact that it is soon going to be made a mandatory requirement and at present there is no test facility to test earthmoving machinery like that in the automobile industry. By setting up of the test centre, the import of second hand and outdated machinery could be restricted through mandatory testing and certification.
Technology Acquisition Fund
The creation of a “Technology Acquisition Fund” under the Technology ‘Acquisition Fund Programme (TAFP) in order to help the Capital Goods Industry to acquire and assimilate specific technologies, for achieving global standards and competitiveness within a short period of time.