Know your Ministry - No. 28 - Heavy Industries and Public Enterprises

Ministry of Heavy Industries and Public Enterprises is headed by a cabinet rank Minister as an additional portfolio ably assisted by a Minister of State. The Minister has established a long-term Vision to have Modern, Healthy and Robust Auto, Heavy Engineering, Heavy Electrical &Capital Goods Sectors through Self-reliant & Growth Oriented Public Sector Undertakings

The Ministry has put forth the following Mission:

• Striving to bolster profit making Public Sector Enterprises (PSEs) as well as restructure and revive sick and loss making PSEs under its administrative control.
• To achieve its vision of global automotive excellence through creation of state- of- the- art Research and Testing infrastructure through the National Automotive Testing and R&D Infrastructure Project (NATRIP).
• To provide necessary support to the Auto, Heavy Engineering. Heavy Electrical and Capital Goods Sector.

The Industrial sectors allotted to the Ministry are:-

1. Automotive Industry – Capital Goods Sector
2. Heavy Electrical Equipment Industry – Manufacturing Sector
3. Heavy Engineering Equipment and Machine Tools Industry – Capital Goods Industry under:
   1. Machine Tools Industry
   2. Textile Machinery Industry
   3. Plastic Processing Machinery Industry
   4. Dies, Moulds & Tools Industry
   5. Earthmoving, Construction and Mining Equipment
   6. Printing Machinery
   7. Food Processing Machinery

The Department supports the development of a range of intermediate engineering products like castings, forgings, diesel engines, industrial gears and gear boxes. The Department also administers:

• Automotive Research Association of India (ARAI) set up in 1966, and ARAI — Forging Industry Division, (ARM-HD) Pune, Maharashtra set up in 2006,
• Fluid Control Research Institute (FCRI), Palakkad, Kerala set up in July 1987, to cater to the needs of the flow industry for calibration,
• NATRIP Implementation Society (NAT'S), set up in July 2005, for guiding the implementation of the National Automotive Testing and R & D Infrastructure Project (NATRIP),
• Central Manufacturing Technology Institute (CMTI)
• National Automotive Board (NAB) set up in 2012 to steer, coordinate and synergize all efforts of the government in the automotive sector.

Roles & Functions of the Department

1. The Department maintains a constant dialogue with Industry Associations and encourages initiatives for growth of industry.
2. The Department also assists the industry in achieving their growth plans through support for policy initiatives, suitable interventions for restructuring of tariffs and trade, promotion of technological collaboration and up-gradation, and research & development activities etc.
3. The Department of Heavy industry is concerned with the development of the Heavy Engineering and Machine Tools Industry, Heavy Electrical Engineering Industry and Automotive Industry and administers the following Central Public Sector Enterprises (PSEs) and their subsidiaries and four autonomous bodies.

Schemes - Capital Goods Scheme, Industry 4.0(SAMARTH), FAME INDIA II Scheme, GST Concessions to Persons with Disabilities (PWD), Project Import Scheme.

Documents/Reports - Make In India, Annual Reports of DHI & CPSEs, Plan Documents, Outcome Budget, Expenditure, Detailed Demand for Grant,

CENTRAL PUBLIC SECTOR ENTERPRISES

(i) ENGINEERING ENTERPRISES: Andrew Yule & Co. Ltd. (AYCL), Bharat Heavy Electricals Ltd. (BHEL),BHEL Electrical Machines Ltd (BHEL-EML),Bharat Pumps and compressors Ltd. (BPCL),Heavy Engineering corporation Ltd. (HEC),HMT Ltd.(Holding Company with Tractor Division),HMT (Bearings ) Limited (subsidiary of HMT),HMT Watches (Subsidiary of HMT),HMT Chinar Watches (subsidiary of HMT), HMT Machine Tools (subsidiary of HMT),Hindustan Cables Ltd.(HCL),Instrumentation Ltd. Kota (IL),Rajasthan Electronics & Instruments Ltd.(subsidiary of ILK), Richardson & Cruddass (1972) Ltd.(R & C), Scooters India Ltd.(SIL),Tungabhadra Steel Products Ltd.(TSPL)

(ii) NON-ENGINEERING ENTERPRISES: .Cement Corporation of India Ltd.(CCI), Hindustan paper Corporation Ltd.(HPC),Hindustan Newsprint Limited (subsidiary of HPC),Hindustan Salts Ltd. (HSL),Sambhar Salts Ltd. (SSL) (Subsidiary of HSL),.Hindustan Photo Films Manufacturing Co. Ltd.(HPF),Nepa Limited (NEPA),Nagaland Pulp and Paper company Ltd. (NPPCL)

(iii) CONSULTANCY /SERVICE ENTERPRISES: Bridge & Roof Company (India) Ltd, Engineering Projects (India) Ltd.(EPI), HMT (International ) Limited (subsidiary of HMT), Hooghly Printing company Limited (subsidiary of AYCL), Braithwaite Burn and Jessop (BBJ) construction Co. Ltd.

(iv) AUTONOMOUS BODIES

Fluid Control Research Institute (FCRI),Automotive Research Association of India (ARAI),ARAI Forging Industry Division (ARAI-FID), NATRIP Implementation Society (NATIS) for the implementation of National Automotive Testing and Research and Development Infrastructure Project (NATRIP) &.Central Manufacturing Technology Institute (CMTI)

CHALLENGES BEFORE MINISTRY OF HEAVY INDUSTRIES

• Gap between Indian Market and Globally developed market: Technology Maturity
• Unavailability of Industrial Experts : Lack of Innovation in Technology
• Funding: High Interest rates and Tax framework
• Government’s failure to scale up efficiency to manage issues affecting creation of domestic demand, exports, technology depth and cost competitiveness.
• Slow paced off-take of Infrastructure projects due to global recessionary pressures.
• Dependence on foreign players for Technology support.
• Lack of professionally trained manpower graduated from the Engineering & Technology Institutions.
• Limitations in the quality of technical institutions mushrooming at large resulting in depletion of quality of manpower.
• Slow pace under Research & Development to build a globally robust indigenous technology under Heavy Industries.
• Presence of multiple foreign players to monopolize the construction equipment industry where the indigenous domestic players are unable to compete with the technology and international markets.

WAY FORWARD

• Government to expedite implementation of all the ongoing widely publicised infrastructure projects and facilitate efficient management of resources by identifying all employment avenues..
• Formulate a vibrant technical academic curriculum at all Institutions and engage the youth to gain the requisite expertise equipped with robust skillsets so that they become job worthy to deploy their indigenous talent and intelligence to contribute to the Heavy Industry sector.
• Promote and encourage domestic companies to find it easier to develop market-specific technologies oriented towards versatile and efficient solutions along with an increased focus to develop the sector.
• Revisit all the Scheme guidelines related to Credit to SME sector and eliminate all the constraints, bottlenecks, etc to unleash the true potential of domestic resources and raw materials to step up the Heavy Industries sector.
• Establish a Central Research Institute for Heavy Industries to facilitate periodical Research and Development in the field so that a globally competitive indigenous technology is developed to identify new technology to realize the Ministry’s Vision to achieve the Mission.