The Ministry of Heavy Industries (MHI) is set to drive innovation and sustainability with the implementation of the ambitious ‘Enhancement of Competitiveness in the Indian Capital Goods Sector – Phase 2’ scheme, allocating a substantial budget of Rs. 250 crores for the Financial Year 2023-24. This initiative aims to catalyze the adoption of Industry 4.0, encourage investments in the manufacturing sector, promote technology indigenization, and bolster common service infrastructure and testing facilities.
Under the Phase 2 scheme, a total of Rs. 326.14 crores have been sanctioned thus far. These funds are actively being utilized by Project Implementing Organizations to develop niche technologies in the Capital Goods and Automotive sectors, establish Common Engineering Facility Centres, augment existing Testing & Certification Facilities, and create Qualification Packs for skill levels 6 and above.
Simultaneously, the Ministry is spearheading the Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) Scheme, a five-year initiative commencing from April 1, 2019, with a substantial budgetary support of Rs. 10,000 crores. For the Financial Year 2023-24, an allocation of Rs. 5171.97 crores has been made to further accelerate the electrification of public and shared transportation and enhance the charging infrastructure across the nation.
FAME India Phase II focuses on various aspects, including creating awareness and advocacy for Electric Vehicles (EVs) and advanced technology. A significant portion of the budget is dedicated to supporting the electrification of public and shared transportation, with a focus on developing charging infrastructure.
As of December 1, 2023, a subsidy amounting to Rs. 5228 crores has been granted to electric vehicle manufacturers, incentivizing the sale of 11,53,079 electric vehicles. Additionally, 148 Electric Vehicle Public Charging Stations (PCS) have been commissioned, contributing to the growth of the EV ecosystem.
In a landmark move on March 28, 2023, the Ministry announced the sanction of Rs. 800 crores under FAME II to PSU Oil Marketing Companies (OMC) – Indian Oil Corporation Ltd. (IOCL), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL) – for setting up 7432 public fast charging stations nationwide. Furthermore, the Ministry sanctioned 6862 electric buses to various cities, State Transport Units (STUs), and State Government entities for intracity operations, with 3491 e-buses already supplied to STUs as of the latest update.
Minister of State for Heavy Industries, Krishan Pal Gurjar, highlighted the significance of these initiatives in shaping a sustainable and technologically advanced future for India. The budget allocation for the year 2023-24 signifies the government’s commitment to fostering innovation, competitiveness, and green mobility in the country.
