Ministry of Heavy Industries : Year end review 2016

Heavy Industry
Heavy Industry

During the calendar year 2016 the Union Heavy Industry & Public Enterprises Ministry took following initiatives for improving its performance:

 On 30th November 2016, Union Cabinet approved the closure of Kota unit of the Instrumentation Ltd and in principle transfer of Palakkad unit of Instrumentation Ltd to the Government of Kerala. This is a continuation of our efforts to rationalize the working of CPSEs under DHI.

Minister of State for HI&PE Shri Babul Supriyo chaired a meeting with IIT,
Kharagpur and Industry in West Bengal on 30th November 2016 for developing a Centre of Excellence at IIT, Kharagpur under the Capital Goods scheme. The meeting with IIT Kharagpur was  aimed at a more spatial distribution of projects under the scheme.

An MoU has been signed between the Department of Heavy Industry and Scientific and Industrial Testing Research Centre (SITRC), Coimbatore on setting up of a Centre of Excellence (CoE) for development of Smart Submersible Pump for industrial use under the scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector. The development of these promps, which have been identified with a potential of having export capabilities by the Mb of Commerce, is an effort at greater Inter-Ministerial synergy.

INS, Chennai was equipped with BHEL supplied Super Rapid Gun Mount (SRGM) and Auxiliary Control System. It is the 31dship of the Kolkata-class stealth guided missile destroyers and amongst the largest destroyers of Indian Navy.  It was commissioned by the Hon’ble Defence Minister Shri Manohar Parrikar at Navel Dockyard, Mumbai on 21st November 2016.

BHEL received Winners Trophy at 4th Learning & Development (L&D) Summit (10­11 November 2016) organized by National Human Resource Development Network (NHRDN) in Mumbai. The Summit’s theme was — 5 A learning (Anytime, Anywhere, Anybody, Any Device, Any Content).

BHEL has achieved a provisional turnover of Rs. 16470 crore up to November 2016 as against Rs. 14215 crore for the corresponding period last year, an increase of 16 %.

A meeting of the BRICS Forum on State Owned Enterprises (SOE) Reforms and Governance was organized by the Department of Public Enterprises in consultation with Ministry of External Affairs from 18-19 November 2016 at Chennai. Joint Secretary of this Department was deputed to represent DHI in the meeting.

A 2 day workshop for the liaison officers of CPSEs regarding “Implementation of Reservation Policy in CPSEs” was organized on 17thOctober 2016 in   New Delhi wherein   Shri Madhukar Gupta, Additional Secretary in the Department of Public Enterprises, M/o Heavy Industry & Public Enterprises advised the Officers of Central Public Sector Enterprises to follow the Guidelines devised by the Deptt. of Personnel, Public Grievances and Pensions and Training (DoPT) in letter and practice.

This workshop enabled the participants to List out relaxations and concessions available to reserved category employees; Describe procedure for operations and maintenance of Roster for small cadre; Describe procedure for operation and maintenance of Roster for large cadre and List issues involved in Reservation in promotion, and direct recruitments (DR). Nearly 56 officials from 28 CPSEs out of around 80 nominations are participating in the workshop.

A meeting of the newly constituted Department related Parliamentary Standing Committee on Industry was held on 4th October, 2016 in Parliament House Annexe. The  Committee was apprised about the working of DHI.

The fourth meeting of lndo-Czech joint working group was held at Brno to coincide with MSV Brno Fair between October 3-6, 2016 wherein a review of the progress in bilateral ties was taken up and roadmap for future cooperation was finalised. The Indian delegation which was led by Secretary, DHI and India’s Ambassador to Czech Republic Mr. Krishnan Kumar was also present. With a view to enhancing greater economic engagement with the Central and Eastern Europe, the Indian delegation and Industry leaders shared with their Czech Republic counterparts a slew of measures being taken by India to encourage foreign investors, particularly in the areas of high technology, including Capital goods & Engineering, under the Government’s flagship, ‘Make in India’ programme.

A German delegation led by the Federal Minister of Transport and Digital Infrastructure of the Federal Republic of Germany, Mr. Alexander Dobrindt called on the Hon’ble Minister of Heavy Industries & Public Enterprises on 14th October, 2016. The purpose of the visit was to strengthen collaboration within the lndo-German Automobile Working Group. Several issues such as news on ban on diesel vehicles, FAME India scheme, Capital Goods Policy, implementation of Euro-VI norms in Automobile Sector by 2020 and impact of GST Bill recently passed by Parliament were discussed during the meeting.

Meeting of US-India Business Council (USIBC) with the Secretary, DHI and other officers was held on 18th October, 2016 at New Delhi.

The Cabinet, on 27th October, 2016, approved the proposal of DHI to provide budgetary support to HMT Ltd. for payment of outstanding salary / wages and other employee related dues. It also approved closure of HMT Tractor Division by offering attractive VRS / VSS at 2007 notional pay scales and clearing of outstanding dues against HMT Tractor Division.

The 1st Meeting of the Inter Ministerial Group (IMG) in Automotive Sector to discuss the dispute raised by NISSAN Motors under Comprehensive Economic Partnership /Corporation Agreement between India and Japan was held on 27.10.2016 in New Delhi.

BHEL has achieved a provisional turnover of Rs.14262 Cr. up to October, 2016 as against Rs.12418 Cr. for the corresponding period last year, an increase of 15%.

Prime Minister of India dedicated three BHEL- commissioned Hydro Power Projects to the Nation representing 1,732 MW of generating capacity on 18th October, 2016. All the three power projects Koldam NEP (4×200 MW) NTPC, Parbati NEP Stage-III (4×130 MW) NHPC and Rampur HEP (6×68.67 MW) SJVN are equipped with generating equipment supplied and commissioned by BHEL.

BHEL paid a final equity dividend of 20% for FY 2015-16. A cheque of Rs. 61.7 Cr. towards the final dividend on the equity held by the Gol, was presented to Hon’ble Minister of Heavy Industries & Public Enterprises by CMD, BHEL, in the presence of Minister of State for Heavy Industries & Public Enterprises. With this, the company has maintained its impeccable track record of rewarding investors by paying dividends uninterruptedly since 1976-77.

Department of Public Enterprises (DPE), Ministry of Heavy Industries & Public Enterprises recently issued guidelines in September, 2016 to expedite the process for closure of CPSEs so that all administrative Ministries would follow uniform procedure for closure of the CPSEs. Earlier, DPE had issued guidelines for “streamlining the mechanism for revival and restructuring of sick/ incipient sick and weak Central Public Sector Enterprises: General principles and mechanism of restricting”. As per these guidelines, the CPSEs were to be categorized into strategic and non-strategic and revival/restructuring strategy was prescribed. However, there are certain CPSEs in non-strategic sector which have no scope for revival and are to be closed in a time bound manner. Since there are employees working in these CPSEs, Government decided that closure should not cause hardship to them and has now laid down a uniform policy to give workers VRS at 2007 notional pay scale irrespective of the pay scale in which they are working.

The guidelines also prescribe the modalities for disposal of movable assets and immovable assets. The guidelines prescribe that leasehold land would be dealt as per the terms of the lease and freehold land would be offered in following order of priority:-

(i) Central Government Departments.

(ii) Central Government bodies/CPSEs.

(iii) State Government Departments.

(iv) State Government bodies/State PSEs/State authorities.

In case the above categories are not interested in taking the land for six months, then the land would be auctioned through MSTC to any entity so that it can be put to productive use.

The MoU target setting exercise entrusted now to the Department of Public Enterprises (DPE) for the year 2016-17 was  completed through consultation process with the participation of administrative Ministry, NITI Aayog and Ministry of Programme Implementation. This exercise involved holding of 518 meeting in 118 days (83 working days) by holding meetings even on holidays. The MoU target fixed included Maharatna, Navratna, Miniratna and other CPSEs totaling 234. Another 140 CPSEs were exempted due to various reasons which include being a subsidiary company where their output have been taken in the main CPSEs, CPSEs under closure, CPSEs yet to start operations and CPSEs under construction.

Cabinet, on 21st September, 2016, approved the proposal of DHI for enabling M/s Richardson & Cruddas (1972) Limited (R&C), to come out of the purview of Board for Industrial and Financial Reconstruction (BIFR). For this purpose, Cabinet approved the conversion into equity of the Government of India loan of Rs 101.78 crores given to the Company, alongwith the interest amounting to Rs 424.81 Crore accrued on this loan. The Cabinet further approved in principle, the strategic disinvestment of Nagpur and Chennai units of this Company and shifting of operations from Mumbai land to other locations of company. However, the Company’s land at Mumbai will be converted from lease hold to “Occupation Class II” so as to enable the company to identify the best use of this piece of land for optimal utilization as per Government guidelines.

Cabinet in the meeting on 28th September, 2016, approved for closure of Hindustan Cables Ltd., Kolkata as per the provisions of the Companies Act, 1956/2013, Industrial Disputes Act, 1947 and other relevant Acts. The closure of this company would be done through offering VRS/VSS to its employees and disposal of its assets in terms of the guidelines of Department of Public Enterprises.

Cabinet Committee on Economic Affairs (CCEA), on 28th September, 2016, has also approved the proposal of DHI for providing financial assistance amounting to Rs. 111.59 cr. as Non-Plan to Bharat Pumps & Compressors Ltd., Allahabad. The CCEA further accorded “in principle” approval for strategic disinvestment of this company.

Secretary (HI) chaired the meeting of 4th Apex Committee to consider proposal received under the scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector on 8th September, 2016. The following proposals were approved in the meeting:

(a) Proposals for Technology Development of six inch submersible smart
pump at the proposed Centre of Excellence in SiTarc, Coimbatore.

(b)           Proposal from Common Engineering Facility Center for Textile Machinery at Bardoli, Surat.

(c)            Proposal from Allied Engineering Pvt. Limited, Delhi for manufacturing of Heavy Duty High Reliability Electrical Specialized Power Cables.

(d)        Proposals for Industrial Processors & Metallizers Pvt. Limited on Cutting Edge Robotic Laser Cladding Technology for Hydro Turbines.

 BHEL has achieved a provisional turnover of Rs.12353 Cr. up to September, 2016 as against Rs.10, 694 cr. for the corresponding period last year, an increase of 16%.

BHEL and NHPC Ltd. signed a Contract Agreement for the Renovation and Modernization (R&M) of the 180 MW Baira Siul HEP in Himachal Pradesh.

BHEL won 5 National Safety Awards for the performance year 2014 which was presented by. MoS, Labour & Employment, Shri Bhandaru Dattatreya to CMD on 16th Sep’16.

 The prestigious Vishwakarma Rashtriya Puraskar of Gol for the performance year 2014 was presented to 36 workmen of various manufacturing Units of BHEL by Hon. MoS, Labour & Employment, Shri Bandaru Dattatreya on 16th Sep’16.

Government of India approved the proposal on 10-8-2016 for financial support to BHEL for R&D Project for Development of Advanced Ultra Super Critical (AUSC) Technology for Thermal Power Plants on a Mission Mode involving an estimated expenditure of Rs.1554 crore with a contribution of Rs.270 crore from BHEL, Rs.50 crore from NTPC, Rs.234 crore from IGCAR and Rs.100 crore from Department of Science and Technology. Balance amount Rs.900 crore will be provided by Department of Heavy Industry to BHEL as Gross Budgetary Support for implementation of this R&D project spread over a period of three years commencing from 2017-18.

An Inter-Ministerial Standing Committee (IMSC) for technology development for Capital Goods sub-sectors was notified on 18.08.2016. The said IMSC will be chaired by Dr. V.K. Saraswat, Member, NITI Aayog and will identify technology gaps and upgrade technologies in the Indian Capital Goods Industry. The Committee will also review technology gaps highlighted by the Industry and suggest a technology development roadmap for Capital Goods sub-sectors.

In compliance of Cabinet Decision dated 27th January 2016, a Memorandum of Understanding (MOU) for transfer of 478.307 hectares of land of NATRAX, Pithampur by Central Government through Department of Heavy Industry to State Government of Madhya Pradesh has been signed by the officers of respective Governments on 24th August 2016, after due consultations with State Government and vetting of the same by M/o Law & Justice, Govt. of India.

Mr. Tomasz Lukaszuk, the Ambassador Extraordinary and Plenipotentiary of the Republic of Poland and the representative of JBM group (an Indian Automotive Company which has recently signed a Joint Venture Agreement with Solaris, an important bus manufacturer from Poland, met officers of this Department on 29th August, 2016 to discuss the prospective cooperation between Polish and Indian automotive industry.

Minister (HI&PE) addressed the Inaugural Session of the 56th Annual Meeting of Automotive Component Manufacturers Association (ACMA) on 30th August, 2016 at New Delhi. A Panel Discussion on “Winning with Quality & Innovation” was also held where Secretary, HI participated as a panellist.

Minister (HI&PE) also addressed the Society of Indian Automobile Manufacturers (SIAM) Annual Convention on 31st August 2016 at New Delhi. A Panel Discussion on “Policy Alignment” was also held where Secretary, HI participated as panellist.

The Joint Secretary in charge of Andrew Yule & Co., a CPSE under this Department visited Georgia at the request of Ministry of Agriculture, Georgia to assess the viability of reviving Georgian Tea Industry and explore possible avenues of cooperation between Andrew Yule & Co Ltd and Government of Georgia in Tea Sector. The visit was also intended to review and assess the market of Yule Teas including Iced Teas, the current penetration and steps required to increase the same in that part of the world. The visit was also an opportunity to assess the export of bulk/ value added Teas to some of the neighbouring countries like, Azerbaijan, Ukraine/ Kazakhstan.

An Expert Committee has been constituted under the chairmanship of Dr. V. K. Saraswat, Member, NITI Aayog to examine and recommend regarding the revival of HEC, Ranchi. The said Committee met twice during August, 2016 (on 9th and 13th August), for technological appraisal of the modernisation plan prepared by HEC.

A meeting chaired by Secretary, MSDE was held on 29-08-16 for reviewing the progress made by different ministries in the area of Skill Development in the sector specific to the Ministry/ Department. Department of Heavy Industry informed about skill development activities undertaken in the auto sector and capital goods sector. A meeting was also convened under the chairmanship of Addl Secretary, Heavy Industry on 29th August, 2016 with the Skill Development Councils and four important PSUs representatives to discuss the skill gap issues and to prepare a road map to bridge the same through skill development project initiatives.

BHEL has achieved a provisional turnover of Rs. 9416 crore up to August, 2016 as against Rs. 7900 crore, an increase of 19 % over the corresponding period of last year.

BHEL was conferred with Dun & Bradstreet Top PSU Award in ‘Heavy Engineering Sector’ by Secretary, Ministry of Coal on 22nd August, 2016.

A Russian delegation visited Department of Heavy Industry on 10th August, 2016 for discussion with officials and CPSEs representatives to explore prospects of cooperation with Indian CPSEs in heavy engineering sub-sector.

The Department of Heavy Industry (DHI) filed the Status Report regarding Compliance of Orders dated 18th July 2016 & 20th July 2016 of National Green Tribunal (NGT) in the matter of Vardhman Kaushik & Ors vs UOI & Ors on 28th July 2016. Through this report, the Department has also expressed the concern of the Government on ban of diesel vehicles older than 10 years as per the said Orders of the  NGT. The Department also strived  to file an Appeal in  Supreme Court against the orders of NGT.

CCEA in the meeting held on 27th July 2016 approved the Revised Cost Estimates-II of NATRIP.

INNOPROM, one of the largest Annual Industrial Exhibition Fair of Russia was held in Moscow from 9th to 13th. July, 2016. India was the partner country in the event. India’s participation at INNOPROM was led by Minister of State, Commerce & Industry Smt. Nirmala Sitaraman. The exhibition was attended by Senior Officers of DHI and also from some of important CPSEs of DHI like Heavy Engineering Corporation Ltd (HEC) and Andrew Yule & Company Ltd. (AYCL).

A meeting of ‘Project Implementation Sanctioning Committee [PISC} under FAME-India Scheme of the Department was held on 20th July 2016 under the chairmanship of Secretary, Heavy Industry to review the progress of the Scheme and for providing further directions and guidance to promote its objectives.

2nd National Workshop of Electric Mobility was organized on 15th July 2016 jointly by DHI, Auto Component Manufacturers Association (ACMA) and Society of Indian Automobile Manufacturers (SIAM).

Bharat Heavy Electricals Ltd (BHEL) was conferred with PSE Excellence Awards 2015 for Human Resource Management Excellence and R&D, Technology Development & Innovation, in the Maharatna & Navaratna CPSEs Category by the Indian Chamber of Commerce.

BHEL with Department of Public Enterprises organized a workshop on CSR for CPSEs, on Methodologies/Mechanism of CSR, on 11 July, 2016 at New Delhi. This workshop was inaugurated by Secretary, DPE and attended by 13 CPSEs including ONGC, NALCO, NBCC, Power Grid and Indian Oil.

BHEL was awarded with special appreciation award by Department of Official Language for its Hindi Magazine `Arunima’.

Budgetary support amounting to Rs.10.31 crore (Rupees Ten crore and Thirty One Lakh only), towards the first installment of non-recurring Grant-in-Aid (General) (Plan), was released to PSG College of Technology, Coimbatore, Tamilnadu, for developing two projects namely, (i) Automated Welding Systems for Specific Industrial Applications and (ii) Alloy Design for Welding Simulation & Analysis for Development of New Welding Electrodes & Filler Metals, under the Scheme for Enhancement of Global Competitiveness of Indian Capital Goods Sector during the month of June, 2016.

BHEL commissioned two units of 3×14 MW Salma Hydro Electric Project in Afghanistan which was jointly inaugurated by Hon’ble Prime Minister of India and President of Afghanistan.

In recognition of BHEL’s contribution towards setting up of the ‘Salma Hydro Electric Project (renamed as Afghan-India Friendship Dam)’ in Afghanistan. BHEL was honoured with an appreciation shield by the Hon’ble Union Minister of External Affairs, Smt. Sushma Swaraj and Hon’ble Union Minister of Water Resources, River Development and Ganga rejuvenation, Ms. Uma Bharti. BHEL successfully overcame all the challenges/ obstacles in the execution of the project and synchronized both the units well within targets set out by Ministry of External Affairs.

Welding Research Institute (WRI), Trichy and Heavy Electrical Equipments Plant (HEEP), Haridwar of BHEL were conferred with ‘Scotch BSE Award, 2016’ for innovative Technology Deployment Iniatives and Nurturing creativities respectively.

The Ministry of Heavy Industry & Public Enterprises  on 10 June 2016 constituted the 3rd Pay Revision Committee for the executives of the Central Public Sector Undertakings under the chairmanship of Justice Satish Chandra (Retd.). The other members of the committee will be Shri Jugal Mohapatra, Ex-IAS Officer, Prof. Manoj Panda, Director, Institute for Economic Growth Delhi and Shri Shailendra Pal Singh, Executive Director (HR), NTPC Ltd. The Secretary Department of Public Enterprises will be the Ex-Officio Member while the Joint Secretary/Additional Secretary, DPE will be the member secretary for the committee.
The last pay revision for the executives of Central Public Sector Undertakings came into effect from 1.1.2007.

DHI participated in the 169th Session of WP-29, a World Forum for Harmonization of Vehicle Regulation, at Geneva from 21stto 24th June, 2016. A visit to was also undertaken  Volvo Plant at Gothenburg, Sweden during 18th to 21st June, 2016 in connection with National mission on Electric Mobility (NMEM), in general, and FAME India Scheme of the Government, in particular.

The Cabinet in its meeting dated 25th May, 2016 approved the National Capital Goods Policy. This is the first ever policy for Capital Goods Sector with a clear objective of 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 to 30 million.

In view of the ban imposed by Supreme Court on the registration of diesel vehicles above 2000 cc in NCR, a meeting of Group of Secretaries under the chairmanship of CEO, NITI Aayog was held on 23rd April 2016. As per the decision taken in this meeting, Department of Heavy Industry impleaded itself in the matter of M.C. Mehta & Ors vs. UOI & Ors. for the hearing fixed on 9th May 2016 so as to apprise the Hon’ble Supreme Court about the measures taken or contemplated by the Government to balance the requirements of protecting the environment and carrying out sustained economic development, which is being guided through the “Make in India” Campaign.

Shri Anant G. Geete , Minister (HI&PE) performed Ground Breaking Ceremony for construction of TAGMA Centre of Excellence and Training on 22-04-2016 at Chakan, Pune which is being funded by Department of Heavy Industry (DHI) and Tool & Gauge Manufacturers Association (TAGMA) under the scheme on “Enhancement of Competitiveness in the Indian Capital Goods Sector”. This centre is being set up with the project cost of Rs.51.92 crore wherein contribution of DHI is Rs.26.27 crore. This centre would cater to the needs of MSME Tool Rooms in and around Pune for the supply of Sheet Metal Dies, Plastic Moulds, Die Casting Dies, Jigs & Fixtures. These Tool Rooms would be able to use hi-tech manufacturing and try out facilities for the tools to be manufactured by them. This is an effort towards ‘Make in India’ initiative of the Hon’ble Prime Minister as it will help in reducing imports of Moulds and Dies. The Training Facilities at the centre would help in meeting the demand of skilled manpower in the Tooling Industry. It would enhance employment opportunities for the skilled candidates and take the country forward towards the skill development goals set by  Prime Minister.

Secretary (DHI), led an industrial delegation to Hannover Messe, 2016, which is the world’s largest platform showcasing manufacturing technologies and innovations.  The objective of participation this year was to continue the benefits from the India branding last year, register our presence and claim in the manufacturing sector at Hannover Messe, to network for technologies required by the country and at the same time explore avenues leading to technology transfers for our industries. The Department organised a workshop on the subject of Indo German Partnership for industry 4.0, which witnessed participation of Germany’s largest associations, institutions and companies. MOUs with (i) Steinbeis, world’s largest industrial technology development organisation and (ii) HMF India, Indian subsidiary of the Hannover Messe with whom Department is replicating successful organisation of Mini Hannover Messe in India named WIN India, were signed.

The Cabinet Note seeking ex post facto approval of Capital Goods Policy was sent for the consideration and approval of Cabinet.

Minister (HI&PE) along with other senior officials of DHI and Secretary (HI) made a visit to BHEL’s Corporate Office to review the performance and the future readiness of the company. Following the review meeting, the Hon’ble Minister addressed a cross-section of BHEL employees during which he lauded BHEL’s achievements of attaining an all-time high Commissioning/ Synchronisation of 15,059 MW of power generating equipment and highest order booking of Rs. 43,727 Cr. in last five years achieved during the year. His visit was widely covered in the media.

BHEL was successfully commissioned Unit #3 of 660MW Lalitpur Supercritical Thermal Power Project (3X660 MW) and Commercial  Operation declared for Unit #1 of Goindwal Thermal Power Project (2X270 MW).

BHEL spent Rs. 40 Cr. on R&D initiatives and filed 23 patents/copyrights during the month including successful development of Vibration Monitoring System (VMS) for pump applications and Tooling for Investment Casting of GT Frame 5 Stage-II cutter teeth bucket.

BHEL was conferred with three prestigious awards during the month:

  • India Pride Award 2015-16 for ‘Excellence in Heavy Industries’ for the seventh consecutive year conferred by Shri Ravi Shankar Prasad, Hon’ble Union Minister of Communications and Information Technology.
  • DSIJ Award 2015 for the “Most Efficient Maharatna PSU” for the seventh consecutive year conferred by Dr. Mahesh Sharma, Hon’ble Minister of State for Tourism & Culture (I/C) and Civil Aviation.
  • BML Munjal Award for ‘Business Excellence through Learning and Development’ for the year 2016 conferred by Shri Rajyavardhan Singh Rathore, Hon’ble Union Minister of State for Information and Broadcasting.

62nd Governing Council Meeting of NATRIP Implementation Society (NATlS) was held under chairmanship of Secretary (HI) on 8th April 2016.

BBJ completed fabrication and erection of 4 km Rail cum Road Bridge over river Ganga at Munger, Bihar, The Bridge was inaugurated by the Hon”ble Prime Minister of India on 12-03-2016. Railway has started movement of Passenger Train connecting Khagaria and Munger through the bridge.

Scope Excellence Award 2010-11: – Gold Trophy in Special Institutional Category (Turnaround) has been conferred on Cement Corporation of India Limited (CCI) and Shri Manoj Mishra, CMD, CCI received this Excellence Award from Hon’ble President of India, Shri Pranab Mukherjee on 11th April, 2016 in a function held at Vigyan Bhawan on 7th Public Sector Day-2016 in the presence of Shri Anant G. Geete  Minister HI&PE and Shri G.M. Siddeshwara, the then  Minister of State for HI&PE.

In          compliance of the Cabinet decision, the Department was able           to ensure the implementation of VRS/VSS and relieving of all the 72 employees of Tungabhadra Steel Products Ltd (TSPL) as a part of the closure process of this Company. This was done within the stipulated time of 3 months given by the CCEA while approving the proposal for closure etc. of the Company. An amount of Rs.15.28 crore was also released for one time settlement of outstanding loan of SBI, thus freeing up the land of the Company for transfer as per CCEA decision.

The process of implementation of VRS/VSS in the three subsidiaries of HMT Ltd also acquired momentum during the course of the month and funds to the tune of Rs.259.60 Crore was released for payment of VRS/VSS package and other employees’ related statutory dues. In the process 819 out of total 1040 employees of the three HMT subsidiaries opted for VRS / VSS as on 31.03.2016.

The National Policy on Capital Goods was announced by  Minister (HI&PE) on 15th Feb. 2016- during the Make in India Week in Mumbai. However, after the announcement of the Policy, the Department of Revenue, Ministry of Finance has raised some issues on the Policy which were satisfactorily resolved in a meeting             chaired by the Principal Secretary to the Prime Minister. The necessary Cabinet Note being moved shortly for ex-­post- facto approval of the Cabinet.

Department of Heavy Industry was included in the delegation of the Finance Minister Travelling to Australia to promote investments into India. Joint Secretary (Heavy Engineering & Machine Tools) represented DHI and participated in the panel discussion on “Mining Equipment and Resources (Technology as Skills)”, which was the part of the ‘Make in India’ Conference held in Sydney on 30th March, 2016.

Secretary, HI attended the first Meeting of the Committee on Loss-Making/ Sick/ Non‑ Performing CPSEs held on 10th March 2016 under the Chairmanship of CEO, NITI Aayog.

On the basis of recommendations received from the Search Committee, proposals for appointment of 15 Non-official Directors in several CPSEs under DHI have been sent to DOPT in this month for ACC’s approval.

The Budget Estimates for the year 2015-16 in respect of Department of Heavy Industry was Rs. 1624.73 crore (Plan-Rs.669.88 crore and Non-Plan- Rs.954.85 crore). However it was subsequently revised and the Revised Estimates for the year 2015-16 was only Rs.921.00 crore (Plan-Rs.300.00 and Non-Plan-Rs.621.00 crore). Ultimately the actual expenditure against the Budget allocation was Rs.915.61 crore (Plan-Rs.298.94 crore and Non-Plan- Rs.616.66 crore) for 2015-16.

Braithwaite Burn & Jessop Construction Company Limited (BBJ) completed the supply, fabrication and erection of 4 KM long Rail-cum-Road Bridge-over river Ganga at Munger, Bihar for East Central Railway. The bridge was inaugurated by you goodself on 12.03.2016 for movement of Goods Traffic, value of works approximately Rs. 1200 crore. BBJ has also completed two bridges, i.e. first one at Silchar (Stringer re-spacing of 200 Ft span) and the second one at Jirighat for NF Railways (Re-gird ring of 150 Ft span). BBJ also won a contract for repair of wagon at Mugalsarai for an approximate amount of Rs.84 crore, first such contract for the Company.

BHEL has accomplished an unprecedented feat in the execution of projects. An all-time high of 15,059 MW of power plant Commissioned/ Synchronized in a single year, up by 26% from the previous year and an all-time high of 13061 MW power generation capacity added to the Indian utility segment, 59% more than the last year. Total Capacity Addition achieved in the month of March is 7045 MW.

BHEL also successfully renovated and modernized (R&M) 200 MW Unit-10 at Obra Thermal Power Station in UP and 110 MW Unit-7 at Barauni Thermal Power Station in Bihar. With this, the useful life of these machines, which has operated for about 30 years since first commissioning, has been further extended by another 15-20 years.

During 2015-16, BHEL spent Rs.891 crore on R&D initiatives (Rs. 115 crore in March 2016) and filed 477 patents copyrights (71 in March 2016). This is the highest ever patents filed in a single financial year. Hon’ble Minister of HI & PE reviewed the performance and future readiness of BHEL and encouraged them to leverage on the opportunities arising out of “Make in India” programme and also suggested to be more flexible in order to adapt to the changing market scenario.

Despite intense competitive pressure in the power and capital goods markets during the year, BHEL achieved the highest order booking in the last five years, at Rs.43,727 crore, a 42% leap over 2014-15. This comprises orders worth Rs.38,529 crore in the Power segment and Rs.5,125 crore in the Industry segment. The company ended the year with a total order book of over Rs.1,10,000 crore.

The inaugural session on ‘Making India a Global Manufacturing Hub for Auto and Auto Components’ was addressed by Hon’ble Minister (HI&PE) on 17th February, 2016 during ‘Make in India week’ program at Mumbai.

‘Auto Expo 2016’ was inaugurated on 4th February 2016 at India Expo Mart, Greater Noida.

Minister (HI&PE) had addressed 1st New Delhi Automotive Summit on 5th February, 2016 organized by ACMA in New Delhi.

The ‘National Capital Goods Policy 2016’ was announced on 15th February, 2016 during the ‘Make in India Week’ held in Mumbai. The policy has been formulated under ‘Make in India’ initiative in extensive consultation with the Industry, Industry Associations, concerned Ministries/ Departments and user industry at both regional and national level.

Department of Heavy Industry organized three seminars in the ‘Make in India Week’ at Mumbai. On 15th February 2016 a seminar was organized on ‘Capital Goods and Engineering: Realizing the Make in India vision’. The Seminar was inaugurated by Hon’ble Minister (HI&PE).

A meeting was held on 22.2.2016 on skill development and developing a multi-locational “National Institute of Manufacturing Technology” (NIMT) on hub & spoke model for training, education, and research in manufacturing technologies by leveraging the infrastructure and facilities of PSUs under DHI. Representatives of MSDE and Capital Goods Skill Council attended the meeting, where it was decided to conceptualize a National Institute of Manufacturing Technology (NIMT) on a hub and spoke model.

The Apex Committee, in its meeting dated 28.01.2016, under the Chairmanship of Secretary(HI) approved the proposal for engaging Global Innovation and Technology Alliance (GITA) for marketing, promotion and implementation of the “Technology Acquisition Fund Programme (TAFP)” component of the Scheme on “Enhancement of Competitiveness in the Indian Capital Goods Sector”. The Request For Proposal (RFP) under TAFP was also issued by GITA, on February 26, 2016.

BHEL has booked Orders worth Rs.10,570 Cr. during the month of February 2016. With this the total order booking in the current financial year up to February 2016 stands at Rs. 42,045 Cr. as against Rs. 23,416 Cr. for the corresponding period last year.

BHEL put up a pavilion in the ELECRAMA-2016 (13-17 February 2016) at Bengaluru highlighting the new clean green business solutions covering solar PV plants, e-Mobility, and water management, etc. Hon’ble Minister (HI&PE) and other senior govt. officials visited BHEL’s pavilion.

On 23rd Feb, 2016 Minister (HI&PE)  had inaugurated ICAT, Manesar with four test facilities i) Climatic Vehicle Test Cell (CVTC), ii) Computer aided design & computer aided engineering (CAD­CAE), iii) Engine test cell (ETC) and iv) Infotronics lab under NATRIP.

A list of 24 Panels for appointment of Non­-official Directors for various CPSEs under this Department to DPE was forwarded for obtaining approval of Search Committee, a Meeting for which was held on 5.2.2016. Out of the above, 18 names were recommended by the Search Committee for appointment as Non-official Directors.

Cabinet Committee on Economic Affairs which was held on 6th January, 2016 approved closure of the loss making CPSEs namely HMT Watches Ltd., HMT Chinar Watches Ltd. and HMT Bearing Ltd. by offering them attractive VRSNSS package to their employees and disposal of their movable and immovable assets as per the Government policy.

The proposal for returning of additional land of Auto Testing Track of NATRiP Project in Pithampur, lndore (NATRAX), Madhya Pradesh was considered by the Union Cabinet in its meeting held on 27th January, 2016. Cabinet approved the proposal of returning of approx. 478.307 Hectares of land, comprising approx. 461.607 Hectares private acquired land and 16.70 Hectares Government land free of cost to the Government of Madhya Pradesh.

The Apex Committee for “Enhancing the Competitiveness of Capital Goods Sector” in its 3rd Meeting held on 28th January, 2016 considered and approved the following four critical projects for the development of the country:

A joint venture between Government of India and Government of Karnataka for a first of its kind Integrated Machine Tools Park at Tumkur. When implemented fully, the park is expected to help in doubling the combined turnover of Indian machine tool industry to Rs. 9000 crore and creation of more than one lakh jobs.

A Welding Technology Centre of Excellence in PSG College of Technology, Coimbatore, in collaboration with Welding Research Institute, Manufacturers of welding equipment/products and FICCI etc. The Centre of Excellence will support Indian manufacturers by providing latest technologies developed by the Centre for home-made welding machine tools, consumables and locally trained manpower particularly in high-end welding jobs required by strategic sectors.

Collaboration by HMT Machine Tools Ltd. with M/s. Fraunhofer of Germany, the leading industrial technology development institute of the world, for modernizing its lathe and turning mill centre to supply the most modern and latest range of machines to Railways, Defence, Shipping, Aviation and Aerospace etc.

Collaboration by Heavy Engineering Corporation (HEC), Ranchi, with M/s. CNIITMASH — a Russian government Industrial Technology Research Institute for setting up a Centre of Excellence in Heavy Engineering Design to train 1350 engineers in three years in the latest technologies relating to electro slag re-melting, welding, gear box manufacturing and non-destructive testing.

The 4th Meeting of Project Implementation and Sanctioning Committee (PISC) for the FAME initiative was held under the Chairmanship of Secretary (DHI) on 22nd January, 2016 at Udyog Bhawan, New Delhi to review the progress made on decisions taken in the last three meetings and to consider given new proposals. In principal approvals were accorded to three new proposals by the Committee, i.e. (i) Proposal for xEVI, (ii) Proposal of H.P. City Transport & Bus Stands Management & Development Authority, Shimla (HP) and (iii) Guidelines for procurement of Electric Bus under Pilot Project of FAME — India Scheme.

An MOU was signed between DHI and IIT, Chennai for development of Center of Excellence for Machine Tool Technologies at IIT Chennai. The Center envisages to help the machine tool industry by providing necessary inputs for technology upgradation.

The Newly created facilities at Chakan under ARAI under NATRiP project was inaugurated by Shri Anant G. Geete, Hon’ble Minister (HI&PE) on 4th January, 2016.

BHEL bagged an order for setting up a Thermal Power Station – Stage III of 1 x 800 MW in North Chennai from Tamil Nadu Generation & Distribution Corporation. Significantly, this will be the first ever 800 MW supercritical set in the state of Tamil Nadu. Hon’ble Chief Minister of Tamil Nadu handed over the Letter of Award to CMD-BHEL, during the function held in Chennai on 29th January, 2016.

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