Phase-II of Indian Capital Goods Scheme to Focus on Advanced R&D and Export Promotion

Under Phase- I of the Scheme for “Enhancement of Competitiveness in the Indian Capital Goods Sector”, 33 projects with budgetary support of Rs. 583.312 Cr were sanctioned. In Phase I of scheme, 30 niche indigenous technologies have been successfully developed, in the fields of machine tools, additive manufacturing. textile machinery, welding robots and alloys design, earth moving machinery, and sensor technologies.

On January 25, 2022, Ministry of Heavy Industries (MHI) has notified the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II and Phase- I was merged with the scheme. This schemeprovides assistance to Common Technology Development, Skilling and Testing Services Infrastructure. Under the Scheme, a total of 33 projects with project cost of Rs 1366.94 crores (due to higher contribution by Industry) and Government contribution of Rs 963.19 crore have been sanctioned so far.

The Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector aims to bring together Industry and Academia to jointly work together to address the critical R&D and technology gaps. This is a demand driven scheme in which, Industry in partnership with eminent Academic/Research Institutes proposes projects seeking government funding. The idea is to foster long term relationships between Industry and Academic Universities to create an environment for the critical R&D.The details of the projects sanctioned along with Academic/Research Institutes under the Phase- II of the Scheme and quantum of funds sanctioned are placed at Annexure.