Revised scheme for capital goods sector in the works: Government

NEW DELHI: The government today said a revised scheme for enhancement of competitiveness in the capital goods sector,' which includes machine tools segment, is being formulated.

"The revised Scheme for Enhancement of Competitiveness in the Capital Goods Sector is being formulated," Minister of Heavy Industries and Public Enterprises Praful Patel said in a written reply to Rajya Sabha.

Earlier, the Department of Heavy Industry formulated the scheme and the Expenditure Finance Committee ( Ministry of Finance) considered the scheme on January 10, 2011.

However, the committee advised the department to re-submit the revised scheme for meeting the requirement of the capital goods sector for consideration in the 12th Five Year Plan.

The capital goods industry, including machine tools, contributes about 12 per cent to the total manufacturing activity and provides machinery and equipment to the remaining sectors covered under the manufacturing activity.

The growth of capital goods industry has an important bearing on the growth of the user industries.

Replying to a separate query, Patel said Burn Standard Company Ltd (BSCL) after identifying the surplus land assets has taken up with the Board for Industrial and Financial Reconstruction (BIFR) for according permission to transfer the same to Bharat Bhari Udyog Nigam Ltd, subject to conditions imposed by the BIFR.

The BIFR is an agency of the government, part of the Department of Financial Services of the Ministry of Finance.

Its objective is to determine sickness of industrial companies and to assist in reviving those that may be viable and shutting down the others.