Executive Summary:
The Ministry of Heavy Industries (MHI) addressed initiatives to promote modernization, automation, and competitiveness in heavy industries. The ministry is implementing the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II with a financial outlay of Rs. 1207 crores. The ministry also oversees Central Public Sector Enterprises (CPSEs) and supports the development of industrial infrastructure like the Machine Tool Park in Karnataka.
Key Points / Main Content:
* **Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II:**
* Financial outlay of Rs. 1207 crores (Rs. 975 crore budgetary support and Rs. 232 crores industry contribution).
* 33 projects approved, including:
* 9 Centres of Excellence (CoEs)
* 5 Common Engineering Facility Centres (CEFCs)
* 7 Testing and Certification Centres
* 9 Industry Accelerators for Technology development
* 3 projects for Creation of Qualification Packs (QPs) for skill level 6 and above.
* **Central Public Sector Enterprises (CPSEs) Status:**
* 16 operational CPSEs
* 1 nonoperational CPSE
* 4 CPSEs under closure
* 15 CPSEs under liquidation (List of CPSEs provided in Annexure)
* **Private Sector Participation and Foreign Direct Investment (FDI):**
* Capital Goods Sector contributes approximately 1.9% to GDP.
* Significant private sector participation.
* Specific FDI data for heavy industries not maintained by DPIIT.
* **Industrial Infrastructure Development:**
* A 530-acre Machine Tool Park approved in Tumakuru, Karnataka under Phase I of the Scheme.
* Rs. 125 Crores allocated for the Machine Tool Park.
Impact Analysis:
* **Capital Goods Sector:**
* Impact: Beneficiaries of technology development, research, innovation, and augmented manufacturing infrastructure through the Scheme for Enhancement of Competitiveness.
* Action Required: Participate in and contribute to the approved projects under the Scheme.
* **Public Sector Units (PSUs) under the Ministry of Heavy Industries:**
* Impact: Subject to revival, disinvestment, strategic partnerships, closure, or liquidation, depending on their current status.
* Action Required: Follow directives related to their specific status (operational, non-operational, under closure, or under liquidation).
* **Government of Karnataka:**
* Impact: Partner in the development of the Machine Tool Park in Tumakuru and recipient of financial support for the project.
* Action Required: Collaborate with the Ministry of Heavy Industries in the establishment and operation of the Machine Tool Park.
Key Entities Referenced
Ministry of Heavy Industries: The Indian government ministry responsible for policies related to heavy industries.
Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II: A scheme implemented by the Ministry of Heavy Industries to encourage technology development, research, innovation, and manufacturing infrastructure in the Capital Goods Sector.
Make in India: An initiative by the Indian government to encourage companies to manufacture their products in India.
Aatmanirbhar Bharat: An initiative by the Indian government promoting self-reliance in various sectors.
Karnataka: A state in India where industrial clusters or green industrial corridors are being developed.
Central Public Sector Enterprises CPSEs: Enterprises owned by the Indian government, some of which are under the administrative control of the Ministry of Heavy Industries.
Foreign Direct Investment FDI: Investment from foreign entities into Indian heavy industries.
Tumakuru, Karnataka: Location of Machine Tool Park approved under Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector.
GOVERNMENT OF INDIA
MINISTRY OF HEAVY INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 3697
ANSWERED ON 12.08.2025
INITIATIVES TO PROMOTE HEAVY INDUSTRIES
3697. SHRI P C MOHAN:
Will the Minister of HEAVY INDUSTRIES be pleased to state:
(a) the major initiatives undertaken by the Government in recent years to promote modernisation,
automation and competitiveness in the heavy industries sector;
(b) whether the Government has identified priority sub-sectors (such as heavy electrical, machine tools,
industrial machinery, etc.) for targeted policy support and if so, the details thereof;
(c) the status of Public Sector Units (PSUs) under the Ministry including any proposals for revival,
disinvestment or strategic partnerships;
(d) the extent of private sector participation and Foreign Direct Investment (FDI) in heavy industries
in the last five years, particularly in relation to Make in India and Aatmanirbhar Bharat initiatives; and
(e) whether any specific industrial clusters or green industrial corridors are being developed in States
such as Karnataka and the support provided for their infrastructure and skill development?
ANSWER
THE MINISTER OF STATE FOR HEAVY INDUSTRIES
(SHRI BHUPATHIRAJU SRINIVASA VARMA)
(a) & (b): In order to encourage the technology development, research, innovation and to augment
the manufacturing infrastructure in the Capital Goods Sector, Ministry of Heavy Industries (MHI) is
implementing the Scheme for “Enhancement of Competitiveness in the Indian Capital Goods Sector-
Phase II” with a financial outlay of Rs. 1207 crores, budgetary support of Rs.975 crore and industry
contribution of Rs.232 crores. Under the Scheme, a total of 33 projects have been approved. These
33 projects include 9 Centres of Excellence (CoEs), 5 Common Engineering Facility Centres (CEFCs),
7 Testing and Certification Centres, 9 Industry Accelerators for Technology development and 3
projects for Creation of Qualification Packs (QPs) for skill level 6 and above.
(c): There are 16 operational Central Public Sector Enterprises (CPSEs), 1 non-operational CPSE,
4 CPSEs under closure and 15 CPSEs under liquidation under the administrative control of Ministry
of Heavy Industries. The list of CPSEs is at Annexure.
(d): The contribution of Capital Goods Sector in the GDP has been consistently about 1.9% during
the last five years, in which private sector participation is significant. Further, as informed by the
Department for Promotion of Industry and Internal Trade (DPIIT), specific data on Foreign Direct
Investment (FDI) in respect of heavy industries is not maintained.
(e): Under Phase-I of the “Scheme for Enhancement of Competitiveness in the Indian Capital Goods
Sector”, a 530 acres world class Machine Tool Park has been approved in Tumakuru, Karnataka in
partnership with the Government of Karnataka. An amount of Rs. 125 Crores has been allocated under
the scheme for this Machine Tool Park.
**********Annexure
Status of Central Public Sector Enterprises (CPSEs) under Ministry of Heavy Industries
(MHI)
S. No. Name of CPSEs
Operational CPSEs
1 Andrew Yule & Co. Ltd.
2 Bridge and Roof Cp. (India) Ltd.
3 Braithwaite, Burn & Jessop Construction Co. Ltd.
4 Bharat Heavy Electricals Ltd.
5 Cement Corporation of India Ltd.
6 Engineering Projects (India) Ltd.
7 Heavy Engineering Corporation Ltd.
8 HMT (International) Ltd
9 HMT Machine Tools Limited.
10 HMT Ltd
11 Hindustan Salts Ltd.
12 Instrumentation Limited.
13 NEPA Ltd.
14 Richardson & Cruddas Ltd.
15 Rajasthan Electronics & Instruments Ltd.
16 Sambhar Salts Ltd.
Non-operational CPSE
1 National Bicycle Corporation of India Ltd.
CPSEs under Closure
1 HMT Watches Ltd.
2 Bharat Pumps & Compressors Ltd
3 Scooters India Ltd
4 Hindustan Cables Ltd
CPSEs under liquidation
1 Reyrolle Burn Ltd.
2 Tyre Corporation of India Ltd.
3 Bharat Ophthalmic Glass Ltd.
4 Mining and Allied Machinery Corporation Ltd.
5 Bharat Process and Mechanical Engineers Ltd.
6 Bharat Brakes and Valves Ltd.
7 Cycle Corporation India Ltd.
8 Rehabilitation Industries Corporation Ltd.
9 Bharat Yantra Nigam Ltd.
10 Triveni Structurals Ltd.
11 National Industrial Development Corporation Ltd.
12 Tannery and Footwear Corporation of India Ltd.
13 Hindustan Paper Corporation Ltd.
14 Nagaland Pulp and Paper Company Ltd.
15 Hindustan Photo Films Mfg. Co. Ltd.