Heavy engineering industry comprises of textile machinery, cement machinery, sugar machinery, rubber machinery, material handling equipments, oil field equipments, metallurgical machinery, mining machinery, dairy machinery And machine tools. The major end-user industries for heavy engineering goods are power, infrastructure, steel, cement, petrochemicals, oil & gas, refineries, fertilisers, mining, railways, automobiles, textiles, etc.
- Heavy
Engineering Equipment and Machine Tools Industry sector is the backbone
of the entire engineering sector of India.
- The
capital goods sector, contributing 12%
to the manufacturing activity, represents a multi-disciplinary field with
numerous end use application areas.
- The
capital goods industry has a strong production base capable of
manufacturing the diverse range of machinery and equipments to serve a
cross section of user industry segments ranging from defence, oil and
gas, refinery, nuclear, chemical and petro chemicals, to consumer
durables, fertilizers, automobiles, textiles etc.
- It
contributes more than Rs. 25,000 crore to
the Government exchequer annually in terms of various taxes and
levies. The annual production of the capital goods industry is Rs. 1,
75,366crore in 2011-12 (including heavy electrical equipments).
However,
the potential
of the capital goods industry in India is still largely untapped.
For development of Machine Tools & Textile sector, Development Councils have been constituted by the Department of Heavy Industry,
Ministry of Heavy Industries & Public Enterprises.
The major Industry Associations associated with this
sector are Textile Machinery Manufacturers Association (TMMA), Indian Textile
Accessories and Machinery Manufacturers Association (ITAMMA) and Indian Machine
Tools Manufacturers Association (IMTMA).
Efforts
by the Planning Commission in this regard !!!!
A Working Group on ‘Capital Goods and Engineering
Sector’
had been constituted by the Planning Commission under the
Chairmanship of Secretary, Department of Heavy Industry. The Working Group has
submitted its Report. Recommendations of the
Working Group on Capital Goods and Engineering Sector are as below:
Ø Increasing value addition in India by
• Indigenous technology development
• Mandating local value addition /technology transfer
• Preference to local content in PSE purchases
• Collaboration with user sectors through inter-ministerial
coordination
Ø Import substitution by
• Banning imports of second hand goods
• Regulatory mechanism for FTAs/PTAs
• Tax structure rationalization
Ø Export promotion by
• Export financing
• Soft promotion of exports
• Counter trade in sectors where we have strong presence.
Department of Heavy
Industry will soon submit the EFC Note for the Scheme of Enhancement of
Competitiveness in Capital Goods Sector for which Rs. 510.81 crore has
been earmarked.
