Govt asks industry to take benefits of 'Capital Goods Scheme'

Government today asked the industry to avail of the benefits of the 'Capital Goods Scheme' which would help in acquiring foreign technologies and also develop them within the country.
Expressing concern over increasing imports of capital goods, Heavy Industries and Public Enterprises Minister Anant Geete said the scheme would help in bridging the technology gaps in the sector.
He was addressing a workshop on 'Technology Development for Capital Goods: Constraints & the Way Forward' here.
The scheme was launched under the 'Make in India' initiative and it provides support to the industry to acquire technology, set up technology development centres in collaboration with institutes, and create common infrastructure for the capital goods industry.

"It is valued at Rs 1,000 crore and government of India is contributing around Rs 600 odd crore for the scheme for the next four years," an official statement said.
It was launched to facilitate collaboration between industry and academia.

In the capital goods sector, the technology gap is widening when compared to other countries, the Minister said adding dependence on high-end technology capital goods is increasing in the country and upgradation of technology levels, continuous R & D efforts and self sufficiency of the nation in this sector requires desired levels of investment and support by the government.
Under these circumstances, this scheme will help the "industry in acquiring technologies from abroad or to develop such technologies within the country with the support of an institute," the minister said.

Geete said "while there are some players who have technological competencies, especially in design capability, application innovation and process innovation, the technological capabilities of large number of players, especially in the SME sector, are limited".
India has become one of the largest importers of capital goods in the world importing around USD 20 billion worth of capital goods every year.
"This has adversely affected the indigenous capital goods industry," it said.
Geete also said that the government was working with countries like Germany and the US to liberalise the exports of dual use technologies that would benefit the capital goods sector.

"Transfer of technology from other developed countries has not been significant despite liberalisation of policies for technology transfer and foreign direct investments.
"Constraints imposed by developed countries on dual use items exports have restricted the technology development in our country," he said.
A unique component of the scheme is Technology Acquisition Fund where government is giving support upto 25 per cent of the cost of technology subject to the limit of Rs 10 crore.