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Enhancement of Competitiveness in the Indian Capital Goods Sector

Department Of Heavy Industry

The scheme has been launched to address the technological obsolescence, limited access to quality industrial infrastructure and common facilities. These are pre-requisites for “Make in India”. In the words of our Prime Minister “Make-In-India is a Lion's Step': Its Symbol is a Lion Made of Cogs. The Make in India logo is derived from the Ashoka Chakra. The lion in the logo stands for strength and power while the wheels are a sign of development and progress.” 

Objective Of The Scheme
  1. To encourage technology development through joint participation with Academia, Industry R&D institute and Government and facilitate transfer/acquiring the critical technologies.                                                                                                                                                                                                                                    
  2. To create common physical infrastructure for enhancing the competitiveness of the local industry, enabling it to withstand the import penetration.
Components Of The Scheme

The scheme has five components to achieve the desired result in pilot mode -                                                                                                   
(i) Creation of "Advanced Centres of Excellence" for R & D and Technology Development with National Centres of Excellence in Education and Technology such as the Indian Institute of Technology Delhi, the Indian Institute of Technology Bombay, the Indian Institute of Technology Madras, the Indian Institute of Technology Kharagpur and the Central Manufacturing Technology Institute (CMTI), Bangalore.                                                           

(ii) Establishment of "Integrated Industrial Infrastructure Facilities" popularly known as Machine Tool Parks with a basic objective of making the machine tool sector more 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.                                                                                  
(iii) Common Engineering Facility Centre" for Textile Machinery is to be set up with active participation of the local industry and the industry association, which in turn would improve facilitation to the users along with visibility. The Common Engineering Facility that can be provided within such set ups are common foundry, common heat treatment, testing laboratories, design center, common prototyping, general and specific machinery, etc. The facility would enable textile machinery and other capital goods manufacturers to develop capital goods to meet the large requirements and improve capacity utilization, thereby reducing the variable cost of operation. 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. 
(iv) 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, In addition, the centre would facilitate evaluating the performance, statutory and regulatory requirements of construction and mining machinery and equipment. The setting up of Test and Certification Centre for Earthmoving Machinery will be done by the SPV specifically created by the Department of Heavy Industry with the approval of the Cabinet. After approval of the Scheme, a separate proposal for information of SPV for implementation of this particular scheme component will be sent to the Cabinet for approval.                                                  

(v) 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. The TAFP will provide financial assistance to Indian capital goods industry to facilitate acquisition of strategic and relevant technologies, and also development of technologies through contract route, in-house route or through joint route of contract and in-house.                                                                                                                                                                                                        

Note: The above given details of the Scheme are only the highlights. The applicant is requested to see the detailed guidelines of the scheme given on the link,, before applying. 

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