DHI hopeful of AMP, National Capital Goods Policy

National Capital Goods Policy, to be launched soon, aims to increase production of capital goods by 3 times over the next decade- from Rs.2,30,000 crore to Rs.7,50,000 crore The Dollar Business Bureau

Automobile Mission Plan (AMP) 2016-26, which has been finalised and to be launched shortly, aims to place Indian automotive industry in the world top three position in engineering and auto component segment

“Department of Heavy Industry (DHI) is taking various steps in making India a manufacturing hub as well as to implement the ‘Make in India’ campaign,” said the Union Minister of Heavy Industries & Public Enterprises on Tuesday, as he informed the media about key budgetary provisions made to his Ministry in the Budget 2016-17. DHI is taking steps for the improvement of Auto and Capital Goods sectors through government-academia-industry collaboration, MoUs with institutions and technology partners, among others, the Minister added. Speaking on the Auto sector, the Minister informed that ‘while a Rs.70,000 crore investment has been made by the industry over the last five financial years, a turnover of $124 billion was achieved in FY 2014-2015.’ “By considering modest 10% growth in the current year, turnover will clock $136 billion, which would mean the industry would achieve around 94% of the target set under Automobile Mission Plan (AMP) 2006-16 till 2016,” the Minister added. The Minister also informed that AMP 2016-26, which has been finalised and would be launched shortly, aims to place the Indian automotive industry in the world’s top three position in the engineering, manufacturing, export of vehicles and auto components market. The capital goods sector is one of the important sectors where manufacturing has enough potential, the Minister said, informing that the Department would soon launch a National Capital Goods Policy, which ‘aims to up production of capital goods by 3 times over the next decade- from Rs.2,30,000 crore to Rs.7,50,000 crore.’ The Minister welcomed a ‘10% basic customs duty hike and reduction of excise duty on certain capital goods items, among others’ announced in the Budget and expressed hope that these measures would make local manufacturers of heavy electrical equipment cost competitive against imports. Speaking on other budget announcements for his Ministry, the Minister said that a new policy has been approved towards effective management of government investment in Public Sector Enterprises (PSEs) by way of strategic sale and disinvestment. The Minister informed that the Department of Public Enterprises (DPE) would be part of the evaluation committee for strategic disinvestment, which was formed upon the guidelines by DPE to streamline mechanism for revival of weak CPSEs. “In respect of these CPSEs, a rigorous monitoring system through their administrative Ministries has been prescribed, so that potential areas of weakness can be addressed in time to avoid CPSEs going towards sickness,” the Minister added.

March 09, 2016 | 06:00pm IST

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The Dollar Business Bureau - Mar 09, 2016 12:24 IST

DHI hopeful of AMP, National Capital Goods Policy

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