Figure 1: Sleek robotic arm assembling an industrial component in an advanced engineering lab. [AI Generated]
What changed
On 25 January 2022, the Ministry of Heavy Industries (MHI) officially notified Phase II of the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector (PIB Release). This policy update expands on the infrastructure laid down in Phase I, focusing on de-risking technology development and augmenting domestic manufacturing capability.
Who this affects
This update directly impacts Indian hardware founders, machine tool developers, automotive designers, and industrial startups looking to prototype or manufacture machinery. It also extends benefits to research institutions and Micro, Small, and Medium Enterprises (MSMEs) operating in advanced engineering sectors (PIB Release).
Figure 2: Enhancement of Competitiveness in the Indian Capital Goods Sector - Phase II funding, eligibility, and process milestone roadmap. [AI Generated]
The details
The notified Phase II has a total financial outlay of ₹1,207 crore (PIB Release). To fund this initiative, the Government of India provides ₹975 crore as budgetary support, while the remaining ₹232 crore is raised via industry contributions (PIB Release). For Research and Development (R&D) projects, the scheme offers a joint-funding mechanism: the government provides up to 80% of the project cost as a grant, requiring industry partners to contribute the remaining 20% (MHI Portal).
The scheme organizes its support across six primary components (PIB Release):
- Technology Innovation Portals: Six web-based portals serve as open collaborative platforms for identifying technology gaps and matching industrial requirements with solutions. These portals are:
- TechNovuus (operated by ARAI) for mobility and automotive systems (MHI Portal).
- SANRACHNA (operated by BHEL) for electrical equipment and heavy engineering (MHI Portal).
- DRISHTI (operated by CMTI) for advanced manufacturing and sensors (MHI Portal).
- ASPIRE (operated by iCAT) for automotive design and validation (MHI Portal).
- KITE (operated by AMTDC at IIT Madras) for robotics and machine tools (MHI Portal).
- SURGE (operated by HMT and IISc) for machine tool designs (MHI Portal).
- Advanced Centres of Excellence (CoEs): These centres partner with premier academic institutions to design, develop, and commercialize indigenous technologies (PIB Release).
- Common Engineering Facility Centres (CEFCs): Startups and MSMEs can access high-end fabrication, prototyping, and smart manufacturing setups on a low-cost, pay-per-use basis (PIB Release).
- Testing and Certification Centres: Existing national test labs are upgraded to offer affordable domestic certifications, reducing the cost of shipping hardware prototypes abroad for global compliance audits (PIB Release).
- Industry Accelerators: These accelerators help transition technologies from functional prototypes to mature, market-ready products (PIB Release).
- Skill Development: To address manpower shortages in advanced engineering, the scheme introduces Qualification Packs for skill level 6 and above (PIB Release).
What to do about it
If you are an industrial founder or MSME developer:
- Register on Portals: Sign up on the Technology Innovation Portal specific to your product segment. For example, drone and automotive startups should leverage TechNovuus, while machine-learning or robotics hardware companies should use KITE.
- Access Shared Machinery: Reach out to the nearest CEFC to book precision machining or additive manufacturing capacity, avoiding high upfront capital expenditure on machinery.
- Apply for R&D Grants: Form a consortium with academic researchers and partner with a Centre of Excellence to submit technology development proposals for the 80% government grant (MHI Portal).
What is still unclear
While the overall policy outlines the ₹1,207 crore budget and its components, the specific submission windows for technology development grants and the precise fee schedules for each Common Engineering Facility Centre are determined on a rolling basis by the project review bodies (PIB Release). Founders must track active tenders directly through the six Technology Innovation Portals.