ANNOUNCEMENT 15 Sep 2014In September 2014, the government of India announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Official press release
On 15 September 2014, the Indian Cabinet Committee of Economic Affairs approved a scheme for development of the capital goods sector "Scheme for Enhancement of Competitiveness of the Capital Goods Sector". The scheme aims to make the capital goods sector globally competitive and covers the sub sectors of Machine Tools, Textile Machinery, Construction and Mining Machinery, and Process Plant Machinery. Out of a total budget of INR 931 crores (~USD 152 million), INR 581 crores (~USD 95 million)* will be provided by the government in the form of a grant and the rest will be contributed by the stakeholder industries.
The main components of the scheme are -
1) Creating R&D and Technology Development centers (Advanced Centers of Excellence)
2) Establishing Machine Tool Parks to develop the machine tool sector
3) Establishing Common Engineering Facility Centres for Textile Machinery
4) Establishing Testing and Certification Centres for earth moving machineries
5) Creation of a "Technology Acquisition Fund" to support acquisition of relevant technologies by the Capial Goods sector
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
* Exchange rate conversion at the rate of INR 61.105 / 1 USD