Govt to invest in capital goods industry

New Delhi, Aug 25: Union Minister for Heavy Industries and Public Enterprises Santosh Mohan Deb today said Rs 2,000 crore would be invested in five years, through pilot schemes, to promote the capital goods industry.

''In order to generate employment and sustain GDP rate, the capital goods industry will play a major role. And for this, the ministry will launch pilot schemes within the next three months to boom the industry,'' Mr Deb told reporters here, adding that some more schemes would be launched in the next five-year plan.

The investments will particularly be made in textile and machine tool sectors, Mr Deb said.

Presenting the draft report on the capital goods industry, Mr Deb said the capital goods industry needed to be more global since the manufacturing sector was doing well.

However, he assured that the government would provide tax exemption to the industry. Upto two per cent inter-subsidy would also be given.

Mr Deb informed the mediapersons that the government has approved a package of Rs 1,800 crore for the revival of three cement factories in Andhra Pradesh, Asom and Himachal Pradesh. These factories were closed for the last five years.

CII President and Ashok Leyland Managing Director R Seshasayee emphasised on the innovation, development, and configuration for the major changes in the industry.

''For the industrial growth of the country, the manufacturing sector must grow by 12 per cent. It will, ultimately, lead to generating employment,'' Union Minister of State of Heavy Industries and Public Enterprises Kanti Singh said.

National Manufacturing Competitiveness Council (NMCC) Chairman V Krishnamurthy defined the capital goods industry as an instrument of growth, backbone of development.

Dr Krishnamurthy also highlighted the importance of steel for the growth of the capital goods industry.

UNI