200 low-cost airports in next 20 years
India’s Capital Goods manufacturing industry serves as a strong base for its engagement across sectors such as Engineering, Construction, Infrastructure and Consumer goods, amongst others. The industry contributed approximately $ 9.3 bn to exports in 2014-15.
Capital Goods industry in India provides approximately 1.4 mn direct and 7 mn indirect jobs.
Market-oriented reforms such as "Power for All" along with plans to add 93 GW by 2022 will generate huge demand for power transmission and distribution (T&D) equipment.
100% FDI is allowed under the automatic route
For further details, please refer FDI Policy
Share in manufacturing
T&D equipment demand
Electrical machinery exports
Direct and indirect employment expected to reach 5 mn and 25 mn, respectively by 2025
Indian generation and T&D equipment market to reach $ 100 bn by 2022
Indian Electrical equipment is the largest sub-sector followed by Plant equipment & Earth moving/ mining machinery
The industry is divided into 10 sub-sectors where Electrical equipment is the largest sub-sector followed by Plant equipment, and Earthmoving/ Mining machinery. The market size of each of the sub-sectors are as follows:
Opportunity for Transmission & Distribution (T&D) sector
Target industry size of $ 100 bn by 2022
The Capital Goods imports to India is approximately 3X the exports
Infrastructure, Power, Mining, Oil & Gas, Steel & Automotive
Significant business opportunity
The Central government plans to spend $ 459.7 mn to implement various programs under the National Capital Goods Policy
One of the world's leading engineering machinery manufacturers, China's Sany Heavy Industry plans $ 9.8 bn of investments
200 low-cost airports in next 20 years
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To make India the country of choice for the production of el…
National Policy on Capital Goods (NPCG) 2016 envisages incre…
The objective of the policy is to enhance the share of manuf…
Generally, a group of industry beneficiaries can make a proposal. Technology developers or infrastructure SPVs could also make a proposal which includes Central/State PSUs.
The DHI Capital Goods Scheme is a pilot scheme designed to support the industry to modernize technologies from current status to global level and beyond. For this two windows are provided. For those technologies, which are commercially not available for transfer, indigenous development at IITs and like institutions by a consortium of technology seekers grants support given upto 80% of the cost of development subject to maximum of $ 15.38 million per case within a budget of $ 38.46 million. Those technologies, which are commercially available and can be acquired by a company or a group of companies the scheme provides grant support upto 25% of the technology acquisition costs or $ 1.53 million whichever is less, within an overall budget of $ 7.69 million.
The scheme also supports establishment of Common Engineering Facilities by a group of user industries. Upto 80% of the project cost could be given as grants. The Scheme also supports setting up one each of Test Centre for Earthmoving & Construction Equipments and Industrial Park. ( 100% upto $ 15.38 million and upto 80% subject to maximum of $ 19.23 million).
The expression 'unavailed CENVAT credit' means the amount that remains after subtracting the amount of CENVAT credit already availed in respect of capital goods by the taxable person under the existing law from the aggregate amount of CENVAT credit to which the said person was entitled in respect of the said capital goods under the existing law. For example, as per the existing provision of Cenvat Credit Rule, Cenvat credit on capital goods can be availed @ 50% on the year of purchase and 50% can be availed at any other subsequent year from the year of purchase. There is possibility that the unavailed cenvat credit be there on the appointment day.
As per section 2(19) of CGST Act, Capital Goods means goods, the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.
The plan aims at assured availability of quality power at competitive rate which is a sine qua non for industrial and economic development.
For an efficient and developed power sector in a country of India’s size, a strong domestic electrical equipment manufacturing base is essential.