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Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II
The Ministry of Heavy Industries (MHI) has announced the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector-Phase-II for providing assistance to the common Technology Development and Services Infrastructure.
The goal of Phase II of the Scheme is to expand and enlarge the impact of the Phase I pilot scheme, thereby providing more impetus through the creation of a strong and globally competitive capital goods sector that contributes at least 25% to the manufacturing sector. In November 2014, the scheme on ‘Enhancement of Competitiveness in the Indian Capital Goods Sector was notified to encourage technology development and infrastructure creation. The scheme has budgetary support of Rs.975 crore and an industry contribution of Rs.232 crore. Technology Innovation Portals are used to identify technologies.
The establishment of four new advanced centers of excellence, as well as the expansion of existing centers of excellence. Skill development in the capital goods sector–a creation of qualification packages for skill levels six and above. The establishment of 4Common Engineering Facility Centers (CEFCs) and the augmentation of existing CEFCs.
Existing Testing and Certification Centers will be augmented. Ten Industry Accelerators for Technology Development will be set up.
The sector does not require an industrial license. On the automatic route, FDI (Foreign Direct Investment) of up to 100 percent is permissible (through RBI).
The amount of payment to the foreign collaborator for technology transfer, design and drawing, royalty, and so on has no limit. The maximum basic customs duty rate is often 7.5-10%. India has signed numerous FTAs (Free Trade Agreements) at lower duty rates. Lower duty rates are also possible through the Project Imports facility.
Exports are encouraged by allowing duty-free imports of raw materials, consumables, components, and subassemblies through various DGFT (Directorate General of Foreign Trade) schemes administered by the Ministry of Commerce and Industry.