The Union Food Processing Minister Harsimrat Kaur Badal today announced that union cabinet has approved a unique scheme on enhancement of competitiveness in the Indian capital goods sector for development of specified technologies with budgetary support of Rs. 581.22 crore.Disclosing this here today She said that the Scheme is first in the series of a number of initiatives under the Prime Minster's vision of "Make in India" enunciated at the ramparts of the Red Fort on August 15 2014. The scheme will be up-scaled based on experience gained and seeks to indigenize large imports.Adding further Mrs Badal said that capital goods or popularly known as industrial machineries are main stay of manufacturing employment and economy of the country and the sector is strategic to "Make in India" initiatives to promote local manufacturing.Mentionably it is one of the oldest industries in the country. The size of the industry is about Rs 300,000 crore per annum of which more than Rs 1,85,000 crore are produced in India and about Rs 1,15,000 crore is imported.
Union Minister informed that more than 80% units are in Small & Medium Enterprises and they have limited capabilities to develop newer technologies. The Government intervention was needed as it considers that the technology was the Achilles Heel of the sector.
She said that these technologies were mostly suffering from commercial embargo and this development was proposed with the help of IITs and other similar institutions. "To reduce cost of conversion, common facilities like testing, development and industrial area are also proposed", she added.
Badal said that the Scheme with a proposed outlay of Rs.930.96 crore aims to increase competitiveness of the Indian Capital Goods Sector through development and acquisition of latest technologies, setting up of infrastructural facilities like common engineering facility centers, sector specific integrated industrial facility centers and test & certification center.She further added that on successful implementation of this scheme it will boost development of indigenous technology and manufacturing, cost competitiveness, reduction in import, augmenting in exports and employment generation.Union Minister asserted that scheme is a first step in the larger journey of global competitiveness, particularly for our small scale sector, which is the back bone of manufacturing economy and a large employment provider over 1.5 million direct. He said that it will also benefit small scale industry of Punjab that was struggling due to the imports from China.