Centre Pushes Capital Goods Sector Competitiveness with Rs.1,207-Crore Scheme
New Delhi, March 18: The Government of India is implementing the “Enhancement of Competitiveness in the Indian Capital Goods Sector – Phase II” scheme to strengthen domestic manufacturing capabilities and support the growth of a globally competitive capital goods industry.
The scheme, implemented by the Ministry of Heavy Industries, has a total financial outlay of ₹1,207 crore, including ₹975 crore in budgetary support from the government and ₹232 crore contribution from industry stakeholders.
The initiative aims to develop a robust ecosystem for the capital goods sector by promoting research, innovation, skill development, and advanced manufacturing technologies.
According to the ministry, the scheme focuses on five key objectives: building a strong and globally competitive capital goods sector, establishing a sustainable ecosystem for research and manufacturing innovation through technology portals, enhancing skill levels of existing manpower while expanding the pool of highly skilled professionals, promoting smart manufacturing and adoption of Industry 4.0 technologies, and encouraging progressive indigenisation of technologies used in capital goods production.
So far, 29 projects have been sanctioned under the scheme. These include seven Centres of Excellence (CoEs), four Common Engineering Facility Centres (CEFCs), six Testing and Certification Centres, nine Industry Accelerators for Technology Development, and three projects focused on creating qualification packs for skill levels six and above.
The scheme builds on the outcomes of its earlier phase. A third-party evaluation of Phase I was conducted by an expert committee chaired by S. Chaudhary. The committee observed that the first phase helped address technological and infrastructure requirements of the capital goods sector to a certain extent.
However, the committee recommended scaling up the initiative to support the broader needs of the capital goods industry across the country. Expanding the programme, it noted, would generate a stronger impact in advancing the government’s Make in India initiative and strengthening domestic manufacturing capabilities.
Following these recommendations, the government formally notified the Phase II version of the scheme on January 25, 2022, aimed at expanding its scope and impact.
To ensure effective implementation, the ministry has constituted a Project Review and Monitoring Committee (PRMC) for each approved project. These committees are responsible for regularly reviewing progress and ensuring that project objectives are achieved in line with the scheme’s goals.
The initiative is expected to play a crucial role in boosting technology development, strengthening manufacturing infrastructure, and promoting innovation within India’s capital goods sector.
This information was provided by Bhupathiraju Srinivasa Varma, Minister of State for Ministry of Heavy Industries, in a written reply in the Lok Sabha on March 17.
