Executive Summary:
This document presents the Indian government's initiatives to promote heavy industries, including modernization, automation, and competitiveness. It outlines the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II, the status of Public Sector Units (PSUs), private sector participation, FDI, and the development of industrial clusters. The information was provided in response to Lok Sabha Unstarred Question No. 3697 on August 12, 2025.
Key Points / Main Content:
Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II:
* The Ministry of Heavy Industries (MHI) is implementing the scheme with a financial outlay of Rs. 1207 crores (Rs. 975 crore budgetary support and Rs. 232 crores industry contribution).
* 33 projects have been approved, including 9 Centres of Excellence (CoEs), 5 Common Engineering Facility Centres (CEFCs), 7 Testing and Certification Centres, 9 Industry Accelerators, and 3 projects for Qualification Packs (QPs).
Status of Public Sector Enterprises (PSUs):
* There are 16 operational Central Public Sector Enterprises (CPSEs), 1 non-operational CPSE, 4 CPSEs under closure, and 15 CPSEs under liquidation under the Ministry of Heavy Industries.
* A list of CPSEs and their status is provided in the annexure.
Private Sector Participation and Foreign Direct Investment (FDI):
* The Capital Goods Sector's contribution to GDP has been consistently about 1.9% in the last five years, with significant private sector participation.
* Specific FDI data for heavy industries is not maintained by the Department for Promotion of Industry and Internal Trade (DPIIT).
Industrial Clusters and Green Industrial Corridors:
* Under Phase I of the Scheme, a 530-acre Machine Tool Park has been approved in Tumakuru, Karnataka, in partnership with the Government of Karnataka, with an allocation of Rs. 125 Crores.
Impact Analysis:
Ministry of Heavy Industries (MHI):
* Impact: Responsible for implementing and overseeing the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II and managing the CPSEs.
* Action Required: Continue implementing the scheme, monitor the progress of approved projects, and manage the CPSEs under its administrative control.
Capital Goods Sector:
* Impact: Expected to benefit from the Scheme through enhanced competitiveness, technology development, and improved manufacturing infrastructure.
* Action Required: Participate in the scheme, leverage the facilities provided by the CoEs and CEFCs, and contribute to the industry's growth.
Government of Karnataka:
* Impact: Partnering with MHI in the development of the Machine Tool Park in Tumakuru.
* Action Required: Collaborate with MHI to ensure the successful establishment and operation of the Machine Tool Park.
Central Public Sector Enterprises (CPSEs):
* Impact: CPSEs are affected based on their operational status (operational, non-operational, under closure, or under liquidation).
* Action Required: Operational CPSEs to continue operations. CPSEs under closure and liquidation to follow the prescribed procedures for closure and liquidation, respectively.
Department for Promotion of Industry and Internal Trade (DPIIT):
* Impact: Responsible for providing data on Foreign Direct Investment (FDI).
* Action Required: To consider maintaining specific FDI data related to heavy industries for better tracking and policy formulation.
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 boost technology, research, and manufacturing in the capital goods sector.
Make in India: An initiative by the Indian government to encourage domestic manufacturing and investment.
Aatmanirbhar Bharat: An initiative by the Indian government promoting self-reliance and domestic production.
Capital Goods Sector: The sector of the Indian economy involved in the production of machinery, equipment, and other capital goods.
Karnataka: A state in India where industrial clusters and a Machine Tool Park are being developed.
Tumakuru, Karnataka: A city in Karnataka where a Machine Tool Park has been approved under the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector.
Central Public Sector Enterprises CPSEs: Enterprises that are owned by the government of India.
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.