Minister briefs House Panel on Heavy Electrical Equipment & incentive to EVs
By TIOL News Service
NEW DELHI, MAR 20, 2025: UNION Minister for Heavy Industries and Steel, H.D. Kumaraswamy, chaired the meeting of the Parliamentary Consultative Committee of Ministry of Heavy Industries on 19.03.2025. The meeting was attended by Union Minister of State for Heavy Industries & Steel, Bhupathiraju Srinivasa Varma, Members of the Committee, Kamran Rizvi, Secretary, MHI along with Dr. Hanif Qureshi, Additional Secretary, Vijay Mittal, Joint Secretary, MHI, S.J. Sinha, Advisor, NITI Aayog, other senior officials from the ministry.
During the meeting, presentations and discussions were held on "Manufacturing of Heavy Electrical Equipment" and "Encouragement of Electric Vehicles." The discussions focused on strategies to accelerate EV adoption, enhance the manufacturing ecosystem, and strengthen the domestic production of heavy electrical equipment to support the growing demand for sustainable transportation and infrastructure.
Addressing the meeting Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy said "Under the visionary leadership of Hon'ble Prime Minister Narendra Modi, India is making transformative strides in Amrit Kaal, aiming to become a global industrial powerhouse. The "Viksit Bharat 2047" vision positions India as a leading manufacturing and export hub, fostering economic resilience, technological leadership, and industrial self-reliance. Manufacturing contributes 17% to GDP, playing a key role in economic growth, with engineering, capital goods, automotive, and renewables among the high-impact sectors."
H.D. Kumaraswamy said The Ministry of Heavy Industries is working with the vision statement: "To have a globally competitive, green, and technology-driven heavy industry manufacturing sector, including automotive and capital goods sectors, which propels growth and job creation." Schemes such as Enhancement of Competitiveness in the Indian Capital Goods Sector (Phase I & II), FAME, PLI for Automotive & Advanced Chemistry Cell, and PM E-DRIVE have been launched with the goal of building a strong domestic manufacturing ecosystem.
During the meeting Union Ministers of State for Heavy Industries & Steel, Bhupathiraju Srinivasa Varma said "A globally competitive manufacturing sector is India's greatest potential to drive economic growth and job creation. Several key initiatives, such as the National Manufacturing Policy and PLI scheme, have been launched to enhance India's manufacturing potential."
Bhupathiraju Srinivasa Varma said "When it comes to the mobility sector, the Ministry of Heavy Industries has taken deliberate and forward-looking steps to ensure that the transition to electric mobility is seamless, sustainable, and inclusive. A series of progressive initiatives have been instrumental in shaping this transformation, including FAME-II, PM E-DRIVE, PLI schemes for Auto and Advanced Chemistry Cells, the PM e-Bus Sewa-Payment Security Mechanism, and the Scheme to Promote Manufacturing of Electric Passenger Cars in India. Each of these initiatives plays a crucial role in boosting local manufacturing, strengthening charging infrastructure, supporting public transport electrification, and fostering innovation in the EV sector."
The participants were briefed about-
Manufacturing of Heavy Electrical Equipment:
The Ministry of Heavy Industries continues to play a vital role in strengthening India's manufacturing ecosystem, particularly in the Heavy Electrical Equipment sector. Bharat Heavy Electricals Limited (BHEL), a key entity under MHI, has been at the forefront of this development, contributing significantly to indigenization and self-reliance in the sector.
Key Highlights:
The Indian manufacturing sector accounts for 17% of GDP and employs over 27.3 million workers as of FY24.
Government initiatives such as "Make in India" and the PLI Scheme have catalysed growth in the sector.
BHEL has developed a comprehensive portfolio of products, including power generation and transmission equipment, along with industrial solutions.
The company has been actively contributing to the renewable energy sector, particularly in solar and wind energy, in alignment with India's clean energy goals.
Encouragement of Electric Vehicles:
The Indian automotive industry plays a pivotal role in the nation's economy, contributing 6.8% of GDP and generating approximately 30 million jobs. The government's sustained efforts to promote electric mobility have led to remarkable progress, with over 19 lakh EVs registered in 2024, marking a significant increase from 15 lakh in 2023. India's proactive initiatives are not only accelerating the adoption of EVs domestically but also positioning the country as a key player in the global EV market.
Key Government Initiatives:
Faster Adoption and Manufacturing of Electric Vehicles (FAME) Scheme: Over 7,400 electric buses have been sanctioned under the FAME initiative, significantly enhancing sustainable urban mobility.
Production-Linked Incentive (PLI) Scheme: With a total outlay of Rs 25,938 crore over five years, the PLI scheme is driving India's manufacturing competitiveness in the automobile and auto-component sector.
Scheme to Promote Manufacturing of Electric Passenger Cars in India (SMEC): This initiative aims to attract investments from leading global EV manufacturers and establish India as a manufacturing hub for electric vehicles.
PM E-DRIVE Scheme: With an allocation of Rs 10,900 crore, this scheme promotes EV adoption while reducing greenhouse gas emissions, reinforcing India's commitment to sustainable mobility.
The meeting appreciated the government's commitment to accelerate the transition to clean energy, fostering a robust domestic manufacturing ecosystem, as well as positioning India as a global leader in EVs and heavy electrical equipment. The Ministry of Heavy Industries remains dedicated to implementing policies that drive innovation, sustainability, and economic growth.
