Year End Review 2024: Ministry of Heavy Industries
Year End Review 2024: Ministry of Heavy Industries
The key initiatives/achievements/events of Ministry of Heavy Industries (MHI) during the year are as under-
The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry, with a budgetary outlay of ₹25,938 crore, aims to enhance India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products, overcome cost disabilities, and build a robust supply chain. Approved on 15.09.2021, the scheme covers the period FY 2023-24 to FY 2027-28, with incentive disbursements from FY 2024-25 to FY 2028-29. The scheme offers incentives of 13%-18% for Electric Vehicle and Hydrogen Fuel Cell components and 8%-13% for other AAT components. Out of 115 applications received, 82 were approved, with an estimated investment of ₹42,500 crore, incremental sales of ₹2,31,500 crore, and 1.4 lakh jobs over five years. As of September 2024, ₹20,715 crore investment and ₹10,472 crore incremental sales have been achieved, with the first incentive disbursement planned for FY 2024-25. Key features include a minimum 50% domestic value addition and eligibility for both domestic and export sales.
The FAME-II Scheme, launched in 2019 with an outlay of ₹11,500 crore, aims to promote electric mobility in India through demand incentives for e-2Ws, e-3Ws, e-4Ws, e-buses, and EV public charging stations (PCS). As of October 31, 2024, ₹8,844 crore has been spent, including ₹6,577 crore for subsidies, ₹2,244 crore for capital assets, and ₹23 crore for other expenses. A total of 16.15 lakh EVs have been incentivized: 14.27 lakh e-2Ws, 1.59 lakh e-3Ws, 22,548 e-4Ws, and 5,131 e-buses. Additionally, 10,985 EV PCS have been sanctioned, with 8,812 allocated for installation. The scheme includes a phased manufacturing program and has supported significant policy initiatives, such as reducing GST on EVs and enabling state EV policies, contributing to India’s transition to sustainable mobility.
The PM E-DRIVE Scheme, notified on September 29, 2024, with a total outlay of ₹10,900 crore, is being implemented from October 1, 2024, to March 31, 2026, to promote green mobility and develop the EV manufacturing ecosystem. The allocation includes ₹3,679 crore for subsidies to incentivize 28 lakh e-2Ws, e-3Ws, e-ambulances, and e-trucks; ₹4,391 crore for the procurement of 14,028 e-buses by public transport agencies; ₹2,000 crore for installing 22,100 fast chargers for e-4Ws, 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-2Ws/3Ws; ₹780 crore for upgrading testing agencies; ₹500 crore each for deploying e-ambulances and e-trucks; and ₹50 crore for administrative expenses. As of November 20, 2024, ₹600 crore in claims have been submitted under the scheme, with ₹332 crore disbursed.
The Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC) in India, notified on March 15, 2024, aims to attract global investments, promote India as a manufacturing hub for electric vehicles (e-4Ws), and boost domestic value addition (DVA). Approved applicants are required to invest a minimum of ₹4,150 crore (USD 500 million) within three years, achieving 25% DVA during this period and 50% within five years. The scheme allows limited imports of e-4Ws at reduced customs duty, capped at 8,000 vehicles per year, with a total duty foregone per applicant limited to ₹6,484 crore or the committed investment. IFCI has been appointed as the Project Management Agency (PMA), and two stakeholder consultations have been held. Detailed guidelines are under development and will be notified in 2025. The scheme emphasizes strict DVA compliance, advanced performance criteria for e-4Ws, and coordination through an inter-ministerial sanctioning committee, with testing by accredited agencies like ARAI, ICAT, and GARC. The initiative aligns with “Make in India,” encouraging indigenous manufacturing and employment generation while integrating with the PLI-Auto scheme.
The PM e-Bus Sewa – Payment Security Mechanism (PSM) Scheme, notified on October 28, 2024, with a total financial outlay of ₹3,435.33 crore, aims to ensure payment security for OEMs/operators in case of default by Public Transport Authorities (PTAs) for e-bus procurement and operations under Gross Cost Contract (GCC) or similar models. Covering 38,000 or more e-buses for up to 12 years, the scheme includes mechanisms such as Escrow Accounts and Direct Debit Mandates (DDM) with RBI to recoup funds in case of non-payment. PTAs are required to repay disbursed funds within 90 days, with penalties including Late Payment Surcharge (LPS) and MCLR-based interest rates. MHI has designated CESL as the implementing agency and formed a Steering Committee for monitoring. As of now, scheme notifications, guidelines, and communications with stakeholders, including PTAs and State Governments, have been issued, and a consultation meeting was held on November 21, 2024, to finalize SOPs for implementation. The scheme supports sustainable urban mobility by fostering private investment and promoting risk management in e-bus adoption.
Production-Linked Incentive (PLI) Scheme for Advance Chemistry Cell (ACC) Battery Storage in India:
Government approved a Production Linked Incentive (PLI) Scheme for setting up manufacturing facilities for Advance Chemistry Cell (ACC), Battery Storage in India, with an outlay of Rs. 18,100 crore for 7 years. The Scheme aims to enhance India’s manufacturing capabilities and envisages incentivizing large domestic and international players in establishing a competitive ACC battery set-up in India.
The three selected beneficiary firms under the Scheme have signed the Programme Agreement to implement the PLI ACC scheme for setting up manufacturing facilities of 30 GWh ACC capacity. Total estimated investment to be made by the implementing firms is approx. Rs. 14,810 crore for 30 GWh capacity. The scheme is under gestation period till December 2024 and the beneficiary firms are setting up their manufacturing facilities. A capacity of 1 GWh is under pilot run by Ola Cell Technologies Private Limited at Krishnagiri, Tamil Nadu. Total investment of Rs. 1505 crores and employment of 863 nos. have been generated by the beneficiary companies till 31.10.2024.
As per recommendation of Empowered Group of Secretaries (EGoS), MHI initiated rebidding of 10 GWh capacity for technology agnostic ACC manufacturing. The bidding process has been completed and MHI issued Letter of Award (LoA) to Reliance Industries Limited for balance 10 GWh capacity (end-use agnostic) on 06/09/2024 and RIL accepted LoA on 09/09/2024.
Further, as per recommendation of EGoS in July 2024, MHI initiated the process for finalizing bid documents for balance 10 GWh capacity for Grid Scale Stationary Storage (GSSS) applications for Ministry of New and Renewable Energy (MNRE).
Achievements of Capital Goods Scheme
Other Initiatives-
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- Sitarc, Coimbatore has indigenously developed a 6-inch BLDC submersible pump with a motor efficiency of 88% and a pump efficiency of 78% under the Capital Goods Scheme. This initiative promotes “Aatmanirbharta” by reducing the import of such pumps by 80%. This innovation was recognized as the best product in the pumps category by United Nations Industrial Development Organization (UNIDO).
- CMTI has developed a high speed rapier loom machine capable of weaving yarns upto 450 RPM. Now production of this machine has been started by M/s Laxmi Rapier Loom Pvt. Ltd., Surat and this machine was also launched at ITMA 2023 in Milan, Italy. Under this project an Indigenous weaving controller has been developed costing Rs. 1.2 lakhs which was earlier costing Rs. 8.5 lakhs by the foreign manufacturers.
- Under the SAMARTH centre at CMTI, Industrial Internet of Things (IIOT) technology has been implemented in Toyota Engine Manufacturing line controlling 64 machines for preventive maintenance. This further will help in enhancing the efficiency of supply chain management of our industries.
- This is the first time in India, testing facilities for battery and Battery Management System (BMS) has been established at ARAI, Pune under the aegis of MHI. This will provide opportunity for indigenisation in the EV sector.
- Development of Industry 4.0 Maturity & Readiness assessment tool called Industry 4.0 Maturity Model (I4MM) specific for Indian manufacturing companies. Under this program, C4i4 has conducted assessment for several manufacturing industries;
- C4i4 Lab, Pune launched ‘Free Online Assessment Tool’ for self- assessment purpose to help the MSMEs to understand their maturity level in their Industry 4.0 journey in order to accelerate the adoption of Industry 4.0.;
- 6 Smart Technologies, 5 Smart Tools, 14 solutions developed in digital twin, virtual reality, robotics, inspection, sustainability, additive manufacturing etc. by I-4.0 India @ IISc, Bengaluru;
- The In house developed technology and Module, Machine Tool Condition Monitoring EDGE Device has been transferred to India MSME, M/s AMS-India Pvt Ltd. By CMTI, Bengaluru
- Under Industry Accelerator at ARAI-Advanced Mobility Transformation & Innovation Foundation (AMTIF) a high-voltage motor controller developed, which enabled the industry partner Raptee Energy Private Limited to launch a high-voltage motorcycle with electric car DNA.
- Under Industry Accelerator at ARAI-Advanced Mobility Transformation & Innovation Foundation (AMTIF) thermally stable sodium-ion batteries developed. These were utilized by the industry partner Recharge on Energy Private Limited during the inauguration of its pilot plant for the manufacturing of sodium-ion batteries.