Govt clears capital goods policy, eyes 22 mn new jobs

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New Delhi | Updated: May 26, 2016 8:13:30 AM

The Cabinet on Wednesday cleared the country’s first-ever policy for the capital goods sector, aiming to raise annual production by more than three times and create close to 22 million new jobs by 2025.

The Cabinet on Wednesday cleared the country’s first-ever policy for the capital goods sector, aiming to raise annual production by more than three times and create close to 22 million new jobs by 2025.

The policy targets to raise the production of capital goods to Rs 7,50,000 crore in 2025 from Rs 2,30,000 crore in 2014-15 and direct and indirect employment in the sector from the current 8.4 million to 30 million, apart from making India a global hub for capital goods, according to the Cabinet proposal moved by the ministry of heavy industries.

The policy is approved at a time when the country’s capital goods production has witnessed a fall. According to the latest index of industrial production data, capital goods output saw a 2.9% contraction in 2015-16, compared with a 6.3% expansion a year earlier. Capital goods production, a gauge for corporate investment, also contracted 15.4% in March, against a 9.1% rise a year earlier.

The policy envisages increasing the share of domestic production in India’s demand from 60% to 80%, thus making the country a net exporter of capital goods. It will also play a key role in the government’s ‘Make in India’ vision.

“The policy also aims to facilitate improvement in technology depth across sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs,” an official statement said.

CCEA approves railway expansion projects worth Rs 10,736 crore

In a bid to ease congestion in the rail transport network, the CCEA on Wednesday approved doubling of three lines and tripling of two, with total investment of `10,736 crore. These lines span over a length of 1,305 km. The three doubling projects spanning over 763 km include doubling of Surendernagar-Rajkot line (116.17 km) at the cost of Rs 1,002.39 crore and the expected completion cost is pegged at `1,137 crore with 5% escalation per annum.

Govt clears financial restructuring of HSCL

The government on Wednesday approved financial restructuring of the Kolkata-based ailing PSU Hindustan Steel Works Construction (HSCL) and its takeover by state-run National Buildings Construction Corporation (NBCC).

Incorporated in 1964 for construction of modern steel plants, HSCL would now become a subsidiary of NBCC, a unit under the ministry of urban development, an official statement said after a Cabinet meeting. NBCC will hold 51% equity in the subsidiary while the remaining stake will be with the government.

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