The Department of Heavy Industry has notified a scheme namely FAME – India (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) for implementation with effect from 1st April 2015, wherein it is intended to support the hybrid/electric vehicles market development and its manufacturing eco-system to achieve self-sustenance at the end of the stipulated period. This scheme is aimed at incentivizing all vehicle segments i.e. 2-Wheelers, 3-Wheeler Auto, Passenger 4-Wheeler Vehicles, Light Commercial Vehicles and Buses. This scheme aims for a cumulative fuel saving of about 9500 million litres equivalent resulting in reduction of pollution and greenhouse gas emission of 2 million tonnes with targeted market penetration of 6-7 million vehicles per year by 2020. This mission will be one of the biggest contributors in reducing pollution from road transport sector in near future.
A Memorandum of Understanding (MoU) between the Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Government of India and Fraunhofer – Gesellschaft, Germany on cooperation for technology resourcing in the field of Capital Goods was signed on 5th October, 2015 during the visit of the German Chancellor to India from 4th to 6th October, 2015. Fraunhofer Society (Gesellschaft) is a Germanapplied research organization of global repute. The objective is to support and augment the “Make in India” programme through increasing the innovation and technology prowess of Indian industry. The activities include creating a roadmap for technological development for Indian industry, identifying and plugging technology gaps, implementation of identified projects in manufacturing and working with various stakeholders in Government, Industry & Academia for increasing cooperation in applied research.
A draft ‘National Policy on Capital Goods’ has been prepared after extensive industry consultations and circulated/uploaded on the DHI Website for comments of other stakeholders/public. This is the first time that a formal policy on the crucial capital goods sector has been formulated. The policy has been drawn in fulfilment of commitment made before the PM. The policy aims to give a boost to production, demand, quality, technology and exports in the Capital Goods sector by creating appropriate mechanisms and schemes for the same.
Under the notified Scheme for Enhancement of Competiveness in the Indian Capital Goods Sector a Proposal from Indian Institute of Technology, Madras (IIT-M) for development of 11 machine tool technologies under Centre of Excellence component of the Scheme in association with six machine tool companies as Industry partners has been approved. This is a major step in industry-academia-government partnership in the capital goods sector, especially since most of the industry partners are in the MSME sector. Development of this CoEwill be the first of its kind in the machine tools sector and will help developing important technologies which are presently not available in India.
Ministry of Heavy Industries and Public Enterprises and the Ministry of Industry and Trade, Czech Republic have signed an MoU on 24.11.2015 in Mumbai between Govt. of India and Govt. of Czech Republic to promote bilateral cooperation in all areas relevant to both in the field of heavy industry. This co-operation is expected to serve the mutual interest and contribute to the enhancement of the bilateral trade and economic relations between the two countries. As a pilot project modernization of the existing facilities of the three plants of Heavy Engineering Corporation Limited, Ranchi, a Government of India Undertaking, will be taken up by way of introduction of new technologies, new equipment etc., and planned refurbishing of old plants and machinery of Czech Origin, by the Czech companies
Under the notified Scheme for Enhancement of Competiveness in the Indian Capital Goods Sector, a Proposal from Tools, Dies and Gauges Manufacturers Association (TAGMA) has been approved for setting up a TAGMA Centre of Excellence and Training (TCET). The project aim s to set up “Common Engineering Facilities Centre (CEFC) for the Tools, Moulds and Dies Industry”. The cost of the project is Rs.51.92 croreand approved DHI grant is for plant and machinery worth Rs.26.27 crore. This is the first CEFC project approved under the scheme and the facilities are to be set up at Chakan, Pune in Maharashtra. The projectwould be implemented within a year. The objective of this project is to upgrade existing Tooling Industry in and around Pune. Its main focus would be on those activities and services which are not available with the small and medium units like Tool Trial, Validation, Calibration set up, high end manufacturing facilities etc. The Centre would also run short term training courses with emphasis on practical training.
In the round-table interaction with the CEOs of India and Kazakhstan, co-chaired by Prime Minister of India and Mr. Karim Massimov, Prime Minister of Kazakhstan at Astana, Kazakhstan. BHEL signed three Strategic MoUswith Kazakh companies for setting up power projects in Kazakhstan & other countries and arranging financing for modernization of hydro and thermal power projects.
A project for upgradation & modernization of “Turkmen-India Industrial Training Centre” (TIITC), Ashgabat, Turkmenistan agreed earlier by the Governments of India and Turkmenistan and entrusted to HMT (International) Limited, has been successfully completed. The completion of the project was announced in the joint statement by the Prime Minister of India and the President of Turkmenistan on 11th July, 2015. The project was officially handed over to Ministry of Education, Government of Turkmenistan / Turkmen State Architecture and Construction Institute, Ashgabat, Turkmenistan by the Embassy of India on 12th July, 2015.
Bharat Heavy Electricals Limited (BHEL) has achieved a total order booking of Rs.22,457 crores upto October 2015 in the current financial year so far, as against Rs. 15,079 crores upto October 2014 during the last financial year.
Minister (HI&PE) inaugurated five facilities at GARC, NATRiP, Chennai on 27th August, 2015. With the inauguration of these facilities, more world class auto testing and homologation facilities created under the NATRiPproject are now available to the auto industry.
Minister of Heavy Industries & Public Enterprises inaugurated the new Automatic SPV Module Manufacturing Line and 100 KW Rooftop SPV Power Plant of Rajasthan Electronics & Instruments Limited (REIL) in Jaipur on 11th September, 2015. The Automatic SPV Module Manufacturing Line is setup to enhance the manufacturing capacity of REIL in line with “Make in India” Mission. During the visit, Hon’ble Union Minister also metHon’ble Chief Minister, Government of Rajasthan wherein state government expressed their desire for help to setup solar power plants including manufacturing of equipments for the same.
An MoU was signed between HMT Limited and Fraunhofer on the development of new features in existing products, new product development, analysis of designs for improvement and new technology development. Five projects will be taken up on priority basis for the first phase of implementation. This initiative will help HMT to come back as a technology leader in the machine tools industry in India.
Andrew Yule & Company Limited (AYCL) and Scooters India Limited (SIL), CPSEs under this Department, which had been under reference to BIFR, were discharged from its purview as their net worth have turned positive. As a part of e-governance initiatives an E-platform for Demand Incentive Delivery Mechanism (DIDM) was launched by Minister for HI&PE Shri Anant G. Geete on 3rd September, 2015 at the Annual Convention of Automotive Component Manufacturers Association of India (ACMA) in New Delhi. This E-Platform would facilitate online submission of claims as well as clearance of incentives for sale of hybrid and electric vehicles on a monthly basis, without any delays, under the initiative for Faster Adoption and Manufacturing of Electric Vehicles in India (FAME-India) launched by the Government under the National Mission on Electric Mobility in April this year.
Public Enterprises
(a) Public Enterprises Survey
The Public Enterprises survey 2013-14 (54th Survey) was laid in both the houses of Parliament during the opening budget Session on 26.2.2015. The compilation and processing of information for Public Enterprises Survey, 2014-15 (55th Survey) is underway, which will be laid in the Parliament during the Budget Session in February, 2016.
(b) Training of Executives of State Level Public Enterprises (SLPEs)
During the year 2015-16, nine training programmes have been planned, out of which seven programmes have already been conducted. The detail of all the nine training programmes is given below:
| S.No. | Institute | Dates | Subject |
| 1 | IIM Calcutta | 17-21 August, 2015 | Project Management |
| 2 | IIM Lucknow | 24-28 August, 2015 | Setting up Professional Goal Oriented Targets & Performance Evaluation |
| 3 | IIPA, Delhi | 07-11 Sept, 2015 | Leadership and other enablers for achieving Business Excellence |
| 4 | IIT Guwahati | 09-11 Sept, 2015 | Production Planning, Inventory Control and supply Chain management |
| 5 | IIM Shilong | 05-09 October, 2015 | Corporate Governance |
| 6 | IIM, Bangalore | 19-21 October, 2015 | Corporate Governance |
| 7 | ICWAI Management Accounting Research Foundation, Hyderabad | 02-06 November, 2015 | Financial management and Accountability |
| 8 | IIT Guwahati | 18-20 November, 2015 | Production Planning, inventory Control and supply Chain management |
| 9 | IIM Ahmedabad | 14-16, December, 2015 | Setting up Professional Goal Oriented Targets & Performance Evaluation |
(c) Scheme in respect of Research Development and Consultancies (RDC):
Under the DPE’s Plan Scheme of RDC, following two workshops have been organized during 2015-16:
| Sl. No. | Institute | Subject | date |
| 1 | Institute of Chartered Accountant of India (ICAI) | Companies Act 2013-Implications for Public Sector Enterprises | 04.09.2015 |
| 2. | ICWAI Management Accounting Research Foundation | International Financial Reporting Standards (IFRS) and Indian Accounting standards (IND AS) | 22.09.2015 |
(d) Corporate Social Responsibility:
During the current financial year till October, 2015, CSR Cell, DPE has organized following three events on Corporate Social responsibility for the executives of Central Public Sector Enterprises (CPSEs) at Guwahati, Imphal& Bangalore:
(i) DPE and Indian Chamber of Commerce, Guwahati jointly organized a ÇSR Conclave- 2015’for the executives of CPSEs and other concerned at Guwahati on 21st August, 2015 for promotion of CSR activities in North Eastern Region.
(ii)DPE and Indian Chamber of Commerce, Guwahati jointly organized another ÇSR & Sustainability Conclave-2015’ on 18th October, 2015 at Imphal, Manipur for the executives of Central PSEs, State PSEs and other concerned in Govt. Organizations on promotion of sports and Skill Development in North Eastern Region of the country.
(iii)DPE in association with Hindustan Aeronautics Ltd. Organized pone seminar on “Corporate Social responsibility” on 30th October 2015 at Bangalore for the senior executives of central PSEs concerned with implementation of CSR in CPSEs in the PSEs in Southern Region.
(e) Streamlining the Mechanism of Revival/Restructuring of sick Central Public Sector Enterprises
The Government of India has taken steps to facilitate merit based restructuring and revival of sick and incipient sick CPSEs. The Government has initiated the process of streamlining the mechanism to avoid delays and ensure time bound implementation. The Government has considered removing the multiple layers in decision making process to ensure timely revival/restructuring of sick CPSEs.
(g) Winding up of BRPSE:
In accordance with the decision of the Government (Cabinet on 7.10.2015), the BRPSE set up in Department of Public Enterprises (DPE) vide Resolution dated 6.12.2004 was wound up vide notification No.16(25)/2004-Fin. dated 9th November, 2015 to streamline the multiple mechanism for revival of sick CPSEs.
(h) Guidelines for “Streamlining the mechanism for revival and restructuring of sick/ incipient sick and weak Central Public Sector Enterprises: General principles and mechanism of restructuring:
The Government has further approved on 7.10.2015 that Department of Public Enterprises will issue guidelines for streamlining the mechanism for revival and restructuring of sick/ incipient sick and weak CPSEs and to make any change therein that may be required in future. Accordingly, DPE has issued on 29.10.2015 guidelines for “Streamlining the mechanism for revival and restructuring of sick/ incipient sick and weak Central Public Sector Enterprises: General principles and mechanism of restructuring” to be followed by the administrative Ministries /Departments of the CPSEs in preparation of proposals for revival/restructuring or closure of CPSEs in respect of CPSEs under their administrative control. The details of guidelines are available on website of Department of Public Enterprises.
(i) Roadmap for revival/closure of CPSEs: Review by Committee of Secretaries
(1) In line with the suggestions of Prime Minister’s Office (PMO), the Cabinet Secretary chaired the meeting of the Committee of Secretaries (CoS) convened on 6th, 7th, 8th and 13th July, 2015 with the Secretaries of the administrative Ministries/Departments of sick CPSEs alongwith Department of Public Enterprises, to decide on roadmap for revival/closure of sick CPSEs in a time bound manner. DPE had assisted the CoS in drawing up roadmaps for revival/restructuring of sick CPSEs. In this process, the Committee of Secretaries reviewed 49 sick CPSEs which required urgent attention of the Government and laid down the roadmaps for revival/ closure of such CPSEs. The roadmap involved business, operational, manpower and financial restructuring of the CPSEs keeping in mind the sustainability and bankability of their business operations.
(3) Pursuant to the meeting on 24.10.2015 held at Prime Minister’s Office (PMO), a Group of Secretaries (GoS) was advised to look into the restructuring of Hindustan Steelworks Construction Ltd. (HSCL). The GoS in its meeting held on 28.10.2015 made suggestions for restructuring of Hindustan Steelworks Construction Ltd. Subsequently, a meeting was held at PMO on 17.11.2015 on restructuring of HSCL in which Special Secretary, Department of Public Enterprises made presentation regarding restructuring of HSCL. In the meeting held on 24.10.2015 at PMO, anotherGroup of Secretaries (GoS) was advised to make suggestions regarding time bound implementation of decision on closure of sick CPSEs. The GoS in its meeting held on 3.11.2015 has made suggestions to stream line the process of closure in a prescribed time frame which was circulated by DPE on 13.11.2015.
(4) As per the guidelines, the administrative Ministry/Department, at the end of the each financial year, analyses the performance of its CPSEs to classify them by a specific order into sick, incipient sick and weak CPSEs within 6 months of the closure of the financial year or within one month from finalization of Annual Accounts, whichever is earlier. The concerned administrative Ministry/ Department formulate revival/ restructuring/ closure road map for sick CPSEs as per the principles outlined in the guidelines. This would be done within three months from the issue of these guidelines in case of existing sick CPSEs and within nine months from the end of the financial year for a CPSE becoming sick subsequently. DPE has written on 17.11.2015 to the administrative ministries/Departments to identify the CPSEs under their control to identify them as sick, incipient sick and weak CPSEs as per guidelines and declare them accordingly.
(j) Counselling, Retraining & Redeployment (CRR) Scheme
(1) Department of Public Enterprises DPE is implementing a Counselling, Retraining & Redeployment (CRR) Scheme to provide opportunities of self / wage employment to the employees or dependents of Central Public Sector Enterprises (CPSEs) separated under Voluntary Retirement Scheme (VRS) / Voluntary Separation Scheme (VSS) or retrenched due to closure / restructuring of the enterprise. During the year 2001-02 to 2014-15, around 1.86 lakh VRSoptees have been trained and around 85,000 have been self-employed/redeployed. During 2015-16, plan funds of Rs. 3.20 crore has been allocated and target is to train 3000 VRS optees/dependents. Against this, 1330 persons have been trained as on 20.11.2015.
(2)Under the CRR Scheme short duration skill development/entrepreneurship development training programmesare imparted to equip the beneficiaries for self/wage employment. Dependents in place of VRS/VSS optees can also be considered if they are not interested.
(4) Some of the success stories as furnished by nodal agencies in respect of beneficiaries who have been redeployed under CRR Scheme .
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