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Engineering & electrical





Evolving landscape

  • India has a strong engineering and capital goods base. The Indian engineering manufacturing sector grew at the rate of about 5.9 per cent in the 1990s. With a size of US $22 billion, the sector’s exports stood at US $6.6 billion in 2001-02 and imports at US$ 4.9 billion in the same year. The engineering manufacturing sector employs over four million skilled and semi-skilled workers (direct and indirect).
  • The range of machinery produced in India is wide and includes heavy electrical machinery, textile machinery, machine tools, earthmoving and construction equipment, including mining equipment, material handling equipment, diesel engines, electric motors, pumps, instrumentation, oil & gas equipment, sugar machinery, railway equipment, metallurgical equipment etc.
  • Many leading world class companies such as GE, Ford, Caterpillar, Sony, Honda, LG, Hyundai, Siemens, Philips, Daimler Chrysler, Fiat, Lafarge, ABB, Electrolux, Volvo have a manufacturing base in India.
Key developments post liberalization
Delicensing
34 per cent share in number of approvals and 40 per cent share in investment

FDI
36-40 per cent of total approvals went to the engineering industry (1991- 2009).

Foreign technology agreements
51 per cent of foreign technology collaborations were approved in the  engineering industry

Production
34.4 per cent share in total industrial production, up five per cent over the last decade

Exports
Eight per cent share in 1990s
14 per cent share in 1999-2000
21-24 per cent share in 2004-09 (nearly $17 billion)

Gaining momentum
  • MP has the largest plant of India’s leading engineering company, the Bharat Heavy Electricals Ltd (BHEL)
  • An engineering cluster is proposed to be established at a cost of US $15 million at the Govindpura Industrial Estate near BHEL, Bhopal. This will benefit about 445 industrial units in the area.
  • A common facility and the necessary infrastructure will be developed. Industries will have special facilities pertaining to engineering and power sector related specialization since the site will be in the vicinity of the BHEL.
  • The project will be developed at an estimated cost of US $1.53 billion with the Centre’s share placed at US $10.67 million. The project has been sanctioned in principle. A company called the Bhopal Clusters of Engineering Organization Pvt. Ltd. has been formed.
BHEL, Bhopal
  • Established in the late 1950s, the BHEL is the largest engineering and  manufacturing enterprise in India, and one of the leading international companies.
  • BHEL’s Bhopal plant is the company’s oldest unit with state-of-the-art manufacturing facilities.
  • The product range at Bhopal includes hydro, steam, marine and nuclear turbines, hydro and turbo generators, transformers, switch gears, control gears, transportation equipment, capacitors, bushings, electrical motors, rectifiers, oil drilling rig equipment, battery powered vehicles and diesel generating sets.
  • The unit was recommended for the ISO 14001 certificate for its environment management system.
Supporting Factors
  • Madhya Pradesh is trying to emerge as an engineering hub. There are many significant areas that can be tapped for setting up and scaling business operations.
  • The MP government is developing specialized infrastructure in the form of SEZ Indore and engineering cluster.
  • Being an industry of economic importance, the state government also provides special fiscal and non-fiscal incentives to units.

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25 Nov 2017
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