Capital goods policy will aid CE industry: Ministry

Capital goods policy will aid CE industry: Ministry

The government, in a bid to ignite the prosperity of the Indian construction equipment industry further, has assured CE manufacturers that they would benefit immensely from the National Capital Goods Policy.

It must be noted that the Union Cabinet approved the National Capital Goods Policy last year, aiming at increasing production of capital goods from Rs 2,30,000 crore in 2014-15, to Rs 7,50,000 crore in 2025, and raising direct and indirect employment from the current 8.4 million jobs, to 30 million jobs in the period.

Addressing delegates at the inauguration of construction equipment exhibition EXCON 2017 here on Tuesday, Union Minister for Heavy Industries and Public Enterprises, Anant G Geete said, "Under my ministry, we aim at developing the auto sector, heavy engineering sector and capital goods sector. After Independence, for the first time, the capital goods sector has a separate policy."

He continued, "There was a time, when the country played a vital role in the capital goods space. But in the last few years, we have fallen back. Today, at EXCON 2017, we notice mega global CE companies participating. While I welcome them, I want to assure all Indian companies who are into heavy industry and capital goods, that in order to stay strong in this global competition, whatever help they need, our government is willing to provide through the National Capital Goods Policy.

In order to aid the overall industry, the government has planned many developments and projects, such as a common engineering facility centre, in association with Tool and Guage Manufacturers Assiciation, in Chakan at an investment of Rs 32 crore, of which the ministry contributed Rs 26 crore. Similarly, a textile engineering centre is planned to come up near Surat, at an investment of Rs 34 crore, with the government offering Rs 27 crore. In Tumakuru, a Rs 421-crore machine tool park is planned, where the government is investing Rs 125 crore.

Niti Aayog CEO Amitabh Kant said, "I envisage the construction sector as one of the biggest drivers of the Indian economy in the coming years. Especially with the growing urbanisation in our country, there is a need to accelerate growth rate by 9-10% year after year for three decades or more to be able to move above the poverty line. In the next five decades, we aim to have very compact and dense urbanisation, as compared to what we have done in the last 5,000 years."

"If India's ambition is to grow 9-10%, the construction sector must grow at nearly 50% annually," he said.

CII EXCON 2017 Chairman Vipin Sondhi reiterated that the construction industry is headed for better days of a projected stable growth of 10% CAGR, over the next five years compared to 7% in the previous decade.

CII EXCON 2017 has 925 participants this year, and spread over 2,50,000 sq metres. The inaugural session also witnessed the release of CII-ICEMA Report on 'Indian Construction Equipment Industry'.

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