National Capital Goods Policy Announced
The Government of India announced the National Capital Goods Policy in 2016. The major salient features of the policy are as under:
- To increase budgetary allocation and scope of the present “Scheme on Enhancement of Competitiveness in the Capital Goods Sector”adding components i.e. skills, capacity building, advanced manufacturing and cluster development.
(ii) To launch a “Technology Development Fund” under PPP model to fund technology acquisition/ transfer, purchase of IPRs/ designs and drawings/ commercialization.
(iii) To set up regional State-of-the-Art Greenfield Centre of Excellence for skill development.
(iv) To modernize existing CG manufacturing units, especially SMEs by replacing with the modern, computer controlled and energy efficient machineries across capital goods sub-sectors.
(v) To upgrade/ develop, testing and certification infrastructure.
The National Capital Goods Policy, 2016, inter alia, recommended increasing the budgetary allocation & scope of the present ‘Scheme on Enhancement of Competitiveness of Capital Goods’ which include setting up of Centers of Excellence, Common Engineering Facility Centers, Integrated Industrial Infrastructure Park and Technology Acquisition Fund Programme.
On January 25, 2022, Ministry of Heavy Industries has notified the Scheme on “Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II” for providing assistance to Common Technology Development and Services Infrastructure. The scheme has a financial outlay of Rs.1207 crores with budgetary support of Rs.975 crore and Industry Contribution of Rs.232 crore. Under the Scheme, a total of 33 projects with project cost of Rs 1366.94 crores (due to higher contribution by Industry) have been sanctioned so far.Due to catalytic effect of MHI intervention, the production of Capital Goods Sector has increased from Rs 2,29,533 crore in 2014-15 to Rs.4,29,001 crore in 2023-24.
Ministry of Heavy Industries launched a Scheme for “Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II” on 25th January, 2022 as a part of policy implementation.