National Capital Goods Policy
The Department of Heavy Industry has introduced the National Capital Goods Policy with the object of increasing production of capital goods. The National Capital Goods policy also aims to facilitate improvement in technology, increase skill availability, encourage growth and capacity building of MSMEs . In this article, we look at the National Capital Goods Policy in detail.
Also, read about National Retail Trade Policy
Objectives of National Capital Goods Policy
The objectives of National Capital Goods Policy are listed below:
- To promote the development of new technology through indigenous sources.
- To provide technology upgrade fund support across all capital goods sectors.
- To support the availability of long and short term of financing at competitive rates to capital goods manufacturers.
- To enable skill development by setting up sub-sector specific skill councils.
- To enable participation in standard creation and developing support system to improve compliance.
- To develop a manufacturing cluster with shared facilities, especially for Small and Medium Enterprises (SMEs).
The following are the basic principles of the National Capital Goods Policy:
Promotion of Entrepreneurship
The Department of Heavy industry will develop startup centre for the capital goods sector in order to provide business, technical and financial support and services to startups in both the manufacturing and services sectors. These services include pre-incubation, incubation and post-incubation phases of a startup.
Promotion of Exports
In order to enhance the export of capital goods, Heavy Industry Export and Market Development Assistance Scheme (HIEMDA) has been created. Also, this would require developing a comprehensive branding for the capital goods sector with the support of the Indian Brand Equity Foundation (IBEF).
Human Resource Development
Under Human Resource Development, the comprehensive skill development plan or scheme under the guidelines of Capital Goods Skill Council will be developed. It intends to upgrade existing training centres and set up regional State of the Art greenfield centres of Excellence for Skill Development.
Technology and Intellectual Property Rights (IPR)
Under technology and Intellectual Property Rights (IPR) , the fund for technology development will be provided under PPP model to fund transfer of technology, technology acquisition, purchase of IPRs as well as for commercialization of such technologies of capital goods can be managed by a professional institution such as Global Innovation and Technology Alliance (GITA). Also, to enhance the competitiveness of capital goods, the centres of excellence, integrated industrial infrastructure park, common engineering facility centres will be set up.
The scheme for enhancing the competitiveness of the Indian Capital Goods industry through a cluster approach, especially for SMEs, will be developed. The components such as energy management, quality management, cost management, human resource management and prevention of corrosion. The Department of Heavy Industries would support 80% of the total fee of such cluster projects with the remaining cost borne by the SMEs.
The mechanism for reporting data of production, export and import for all capital goods sub-sector will be developed for monitoring policy effectively.
The following are the areas focused under the National Capital Goods policy:
- Machine Tools
- Textile Machinery
- Earthmoving and Mining Machinery
- Heavy Electrical Equipment
- Plastics Processing Machinery
- Process Plant Equipment
- Dies, Moulds & Press Tools
- Printing Machinery
- Metallurgical Machinery
- Food Processing Machinery
Governance Mechanism for Policy Initiative
The National Capital Goods Policy requires the stakeholders for implementation, including the State and Central Government, including ministries. Also, the following institutional arrangements are proposed to govern this policy initiative and responsibilities of stakeholders.
Roles and Responsibilities of the Central Government
- To ensure coordination with ministries and government department in order to meet with the capital goods policy.
- To provide a framework for the schemes under the capital goods sector as per this policy and providing enabling environment for all stakeholders.
- To modify policies, guidelines and practices in taxation, foreign investment, foreign trade and international relations to support the capital goods sector.
Roles and Responsibilities of the State Government
- To work with Central Government to ensure the implementation of capital goods policies in the State.
- To promote policies in the State and speedy implementation of projects.
- To actively work towards cluster development in the State.
Roles and Responsibilities of Manufacturing Industries
- To contribute India brand image in international markets by delivering high-quality products and complying with standards.
- To invest in skill development activities.
- To create an enabling environment for promoting and rewarding innovation.
- To improve performance outcomes and increasing awareness of the same.