National Capital Goods Policy

National Capital Goods Policy 

            A draft base paper on National Policy on Capital Goods was prepared by the Department of Heavy Industry (DHI)- Confederation of Indian Industry (CII) Joint Task Force on Capital Goods and Engineering. This draft paper containing all details has been posted on the Department’s website: under the Head: What’s new > Draft base paper for National Policy on Capital Goods and Engineering.

            Several Ministries and stakeholders have submitted responses to the draft.

            Share of India in global export in Capital Goods was 0.8% whereas that of China is 15.5% in the year 2014.
(Source: EEPC/ CII).

            A Scheme for enhancement of competitiveness in the Indian Capital Goods Sector has been launched by DHI which envisages a number of steps to improve competitiveness including development of technology through interventions like setting up Centre of Excellence for technology development and financial intervention for acquisition/ transfer of technology. The Scheme also envisages setting up of Common Engineering Facility Centre,   Integrated Industrial Infrastructure Facility and Test & Certification Centre for extending infrastructural facility to domestic capital goods industry. These measures are expected to boost competitiveness of the indigenous Capital Goods Industry in the global market. Details of the Scheme are at:    under the Head Schemes> Capital Goods Scheme> Scheme Notification containing Guidelines.

            The Department receives pre budget memoranda from different Industry Associations highlighting issues/ demands of respective sub sectors of Capital Goods Industry. The issues are examined by DHI and if found justified, are taken up with the Ministry of Finance. The Department also takes up issues with the Department of Commerce where industry reports adverse impact on domestic capital goods industry due to Preferential Trade Agreement(s)/ Free Trade Agreement(s). Apart from the above, Development Councils constituted for four sub sectors of Capital Goods Industry i.e. Machine Tools Industry, Textile Machinery  Industry, Heavy Electrical Industry and Earthmoving, Construction and Mining Machinery provide  valuable platform  for stakeholders such as Government Departments, Industry Association, Users and Academia to propose steps to develop the respective sub- sectors of domestic Capital Goods Industry to boost manufacturing and increase India’s share in the global exports in the Capital Goods Sector. 

            This information was given by Minister of Heavy Industries and Public Enterprises, Shri Anant G. Geete in a written reply in Lok Sabha today.
Violation of Emission Norms 
The information related to fines being imposed by USA is available to this Ministry only through media reports. There is no official communication received from USA in this regard.

This Ministry has ordered investigation through testing agency Automotive Research Association of India (ARAI). ARAI has submitted the preliminary report on 28th October 2015. Based on the initial findings, there is indication that the diesel vehicles fitted with E189 engine and manufactured in India by Volkswagen Group of Companies are fitted with “the defeat device”. Fitment of such a device may lead to excess NOx emissions on road. At the moment, there are no specific norms or limits for measuring on road mass emissions coming out of cars. The possible violation is with respect to fitment of defeat device on the vehicles so that it senses that the vehicle is being tested on the mandatory driving cycle and adjusts the performance of after-treatment devise accordingly to meet the regulatory emission test cycle in the laboratory.

Through ARAI, notice was issued to Volkswagen on 4th November 2015. Accordingly Volkswagen is required to respond to the notice by 30th November 2015.

Depending upon the outcome of the disclosure and test findings, possible penal/administrative action and/or recall of vehicles, as the case may be, shall be taken in accordance with applicable national laws.

This information was given by Minister of State in the Ministry of Heavy Industries and Public Enterprises, Shri G.M. Siddeshwara in a written reply in Lok Sabha today. 

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