Year End Review 2024: Ministry of Heavy Industries

The Production Linked Incentive (PLI) scheme for Automobile and Auto Components Industry with a budgetary outlay of 25,938 crore

With an outlay of 11,500 crore the FAME II scheme launched to promote electric mobility in India

A Total of 10,900 crore- PM E-Drive scheme aims to promote green mobility and develop the EV manufacturing ecosystem

Payment Security Mechanism (PSM) scheme to support sustainable urban mobility

The key initiatives/achievements/events of Ministry of Heavy Industries (MHI) during the year are as under-

The Production Linked Incentive (PLI) Scheme for Automobile and Auto Components Industry, with a budgetary outlay of ₹25,938 crore, aims to enhance India’s manufacturing capabilities for Advanced Automotive Technology (AAT) products, overcome cost disabilities, and build a robust supply chain. Approved on 15.09.2021, the scheme covers the period FY 2023-24 to FY 2027-28, with incentive disbursements from FY 2024-25 to FY 2028-29. The scheme offers incentives of 13%-18% for Electric Vehicle and Hydrogen Fuel Cell components and 8%-13% for other AAT components. Out of 115 applications received, 82 were approved, with an estimated investment of ₹42,500 crore, incremental sales of ₹2,31,500 crore, and 1.4 lakh jobs over five years. As of September 2024, ₹20,715 crore investment and ₹10,472 crore incremental sales have been achieved, with the first incentive disbursement planned for FY 2024-25. Key features include a minimum 50% domestic value addition and eligibility for both domestic and export sales.

The FAME-II Scheme, launched in 2019 with an outlay of ₹11,500 crore, aims to promote electric mobility in India through demand incentives for e-2Ws, e-3Ws, e-4Ws, e-buses, and EV public charging stations (PCS). As of October 31, 2024, ₹8,844 crore has been spent, including ₹6,577 crore for subsidies, ₹2,244 crore for capital assets, and ₹23 crore for other expenses. A total of 16.15 lakh EVs have been incentivized: 14.27 lakh e-2Ws, 1.59 lakh e-3Ws, 22,548 e-4Ws, and 5,131 e-buses. Additionally, 10,985 EV PCS have been sanctioned, with 8,812 allocated for installation. The scheme includes a phased manufacturing program and has supported significant policy initiatives, such as reducing GST on EVs and enabling state EV policies, contributing to India’s transition to sustainable mobility.

The PM E-DRIVE Scheme, notified on September 29, 2024, with a total outlay of ₹10,900 crore, is being implemented from October 1, 2024, to March 31, 2026, to promote green mobility and develop the EV manufacturing ecosystem. The allocation includes ₹3,679 crore for subsidies to incentivize 28 lakh e-2Ws, e-3Ws, e-ambulances, and e-trucks; ₹4,391 crore for the procurement of 14,028 e-buses by public transport agencies; ₹2,000 crore for installing 22,100 fast chargers for e-4Ws, 1,800 fast chargers for e-buses, and 48,400 fast chargers for e-2Ws/3Ws; ₹780 crore for upgrading testing agencies; ₹500 crore each for deploying e-ambulances and e-trucks; and ₹50 crore for administrative expenses. As of November 20, 2024, ₹600 crore in claims have been submitted under the scheme, with ₹332 crore disbursed.

The Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC) in India, notified on March 15, 2024, aims to attract global investments, promote India as a manufacturing hub for electric vehicles (e-4Ws), and boost domestic value addition (DVA). Approved applicants are required to invest a minimum of ₹4,150 crore (USD 500 million) within three years, achieving 25% DVA during this period and 50% within five years. The scheme allows limited imports of e-4Ws at reduced customs duty, capped at 8,000 vehicles per year, with a total duty foregone per applicant limited to ₹6,484 crore or the committed investment. IFCI has been appointed as the Project Management Agency (PMA), and two stakeholder consultations have been held. Detailed guidelines are under development and will be notified in 2025. The scheme emphasizes strict DVA compliance, advanced performance criteria for e-4Ws, and coordination through an inter-ministerial sanctioning committee, with testing by accredited agencies like ARAI, ICAT, and GARC. The initiative aligns with “Make in India,” encouraging indigenous manufacturing and employment generation while integrating with the PLI-Auto scheme.

The PM e-Bus Sewa – Payment Security Mechanism (PSM) Scheme, notified on October 28, 2024, with a total financial outlay of ₹3,435.33 crore, aims to ensure payment security for OEMs/operators in case of default by Public Transport Authorities (PTAs) for e-bus procurement and operations under Gross Cost Contract (GCC) or similar models. Covering 38,000 or more e-buses for up to 12 years, the scheme includes mechanisms such as Escrow Accounts and Direct Debit Mandates (DDM) with RBI to recoup funds in case of non-payment. PTAs are required to repay disbursed funds within 90 days, with penalties including Late Payment Surcharge (LPS) and MCLR-based interest rates. MHI has designated CESL as the implementing agency and formed a Steering Committee for monitoring. As of now, scheme notifications, guidelines, and communications with stakeholders, including PTAs and State Governments, have been issued, and a consultation meeting was held on November 21, 2024, to finalize SOPs for implementation. The scheme supports sustainable urban mobility by fostering private investment and promoting risk management in e-bus adoption.

Production-Linked Incentive (PLI) Scheme for Advance Chemistry Cell (ACC) Battery Storage in India:

Government approved a Production Linked Incentive (PLI) Scheme for setting up manufacturing facilities for Advance Chemistry Cell (ACC), Battery Storage in India, with an outlay of Rs. 18,100 crore for 7 years. The Scheme aims to enhance India’s manufacturing capabilities and envisages incentivizing large domestic and international players in establishing a competitive ACC battery set-up in India.

The three selected beneficiary firms under the Scheme have signed the Programme Agreement to implement the PLI ACC scheme for setting up manufacturing facilities of 30 GWh ACC capacity. Total estimated investment to be made by the implementing firms is approx. Rs. 14,810 crore for 30 GWh capacity. The scheme is under gestation period till December 2024 and the beneficiary firms are setting up their manufacturing facilities. A capacity of 1 GWh is under pilot run by Ola Cell Technologies Private Limited at Krishnagiri, Tamil Nadu. Total investment of Rs. 1505 crores and employment of 863 nos. have been generated by the beneficiary companies till 31.10.2024.

As per recommendation of Empowered Group of Secretaries (EGoS), MHI initiated rebidding of 10 GWh capacity for technology agnostic ACC manufacturing. The bidding process has been completed and MHI issued Letter of Award (LoA) to Reliance Industries Limited for balance 10 GWh capacity (end-use agnostic) on 06/09/2024 and RIL accepted LoA on 09/09/2024.

Further, as per recommendation of EGoS in July 2024, MHI initiated the process for finalizing bid documents for balance 10 GWh capacity for Grid Scale Stationary Storage (GSSS) applications for Ministry of New and Renewable Energy (MNRE).

Achievements of Capital Goods Scheme

1. Sitarc, Coimbatore has indigenously developed a 6-inch BLDC submersible pump with a motor efficiency of 88% and a pump efficiency of 78% under the Capital Goods Scheme. This initiative promotes “Aatmanirbharta” by reducing the import of such pumps by 80%. This innovation was recognized as the best product in the pumps category by United Nations Industrial Development Organization (UNIDO).
2. CMTI has developed a high speed rapier loom machine capable of weaving yarns upto 450 RPM. Now production of this machine has been started by M/s Laxmi Rapier Loom Pvt. Ltd., Surat and this machine was also launched at ITMA 2023 in Milan, Italy. Under this project an Indigenous weaving controller has been developed costing Rs. 1.2 lakhs which was earlier costing Rs. 8.5 lakhs by the foreign manufacturers.
3. Under the SAMARTH centre at CMTI, Industrial Internet of Things (IIOT) technology has been implemented in Toyota Engine Manufacturing line controlling 64 machines for preventive maintenance. This further will help in enhancing the efficiency of supply chain management of our industries.
4. This is the first time in India, testing facilities for battery and Battery Management System (BMS) has been established at ARAI, Pune under the aegis of MHI. This will provide opportunity for indigenisation in the EV sector.
5. Development of Industry 4.0 Maturity & Readiness assessment tool called Industry 4.0 Maturity Model (I4MM) specific for Indian manufacturing companies. Under this program, C4i4 has conducted assessment for several manufacturing industries;
6. C4i4 Lab, Pune launched ‘Free Online Assessment Tool’ for self- assessment purpose to help the MSMEs to understand their maturity level in their Industry 4.0 journey in order to accelerate the adoption of Industry 4.0.;
7. 6 Smart Technologies, 5 Smart Tools, 14 solutions developed in digital twin, virtual reality, robotics, inspection, sustainability, additive manufacturing etc. by I-4.0 India @ IISc, Bengaluru;
8. The In house developed technology and Module, Machine Tool Condition Monitoring EDGE Device has been transferred to India MSME, M/s AMS-India Pvt Ltd. By CMTI, Bengaluru
9. Under Industry Accelerator at ARAI-Advanced Mobility Transformation & Innovation Foundation (AMTIF) a high-voltage motor controller developed, which enabled the industry partner Raptee Energy Private Limited to launch a high-voltage motorcycle with electric car DNA.
10. Under Industry Accelerator at ARAI-Advanced Mobility Transformation & Innovation Foundation (AMTIF) thermally stable sodium-ion batteries developed. These were utilized by the industry partner Recharge on Energy Private Limited during the inauguration of its pilot plant for the manufacturing of sodium-ion batteries.

Other Initiatives-

1. Ministry of Heavy Industries organised a PLI-Auto Conclave under chairmanship of Dr. Mahendra Nath Pandey, Minister of Heavy Industries on 16.01.2024 at Bharat Mandapam, New Delhi, highlighting the salient features of the PLI Scheme for Automobile and Auto Component Industry and undertaking stakeholder consultation. Shri Krishan Pal Gurjar, Minister of State for Heavy Industries and Power was also present during the PLI Auto Conclave. The vehicles which have been approved under the scheme were also displayed during the event. In the conclave, Minister urged the stake holders for increasing indigenization in Auto Industry paving the path for “Aatmanirbhar Bharat”.
2. Dr. Mahendra Nath Pandey, Minister of Heavy Industries, inaugurated the newly constructed ‘BHEL Sadan’ at Noida, Uttar Pradesh on the occasion of ‘BHEL Day’, in the presence of Shri Krishan Pal Gurjar, Minister of State for Heavy Industries and Power, senior officials of MHI and BHEL. On this occasion, Minister urged BHEL to continue with their diversification efforts for better services to the nation.
3. Minister of Heavy Industries chaired the meeting of ‘Consultative Committee for Ministry of Heavy Industries’ on 7^th February 2024, in Parliament House Annexe, New Delhi on the subject “Role of PSUs under MHI – In the Era of New Technology”. Selected CPSEs under MHI i.e. M/s Bharat Heavy Electricals Ltd. (BHEL), Engineering Projects (India) Ltd. (EPIL) & Instrumentation Ltd. (IL) made presentations before the committee and noted the valuable suggestions of Hon’ble members.
4. A Joint Venture (JV) Agreement between BHEL & Coal India Limited (CIL) was signed on 28^th February 2024, to jointly set up a Coal Gasification Project, utilizing BHEL’s in-house developed PFBG Technology.
5. Union Minister of Heavy Industries visited BHEL’s manufacturing unit at Tiruchirappalli, Tamil Nadu on 4^th March 2024. On this occasion, Union Minister urged BHEL to step up production activities in view of many new thermal power project orders received in the financial year 2023-24 and also to continue with the diversification efforts for growth of organization and better services to the nation.
6. On 13^th March 2024, the Ministry of Heavy Industries (MHI) and the Indian Institute of Technology, Roorkee (IIT Roorkee) signed a Memorandum of understanding (MoU) in presence of Dr. Mahendra Nath Pandey, Union Minister of Heavy Industries and Shri Pushkar Singh Dhami, Chief Minister of the State of Uttarakhand, to work together towards innovation and advanced automotive and Electric Vehicle (EV) sector. This MoU represents a joint effort to launch advanced initiatives for creating a Centre of Excellence (CoE) and an Industry Accelerator at IIT Roorkee under the Scheme for Enhancement of Competitiveness in the Indian Capital Goods Sector Phase II of MHI with a budget outlay of Rs. 25 crores (approx.).
7. NATRAX, Indore, a Testing Agency under National Automotive Board (an Autonomous Body under MHI) organized one-day Conference on “Global Presence of Indian Testing Agencies – Way Forward” on 27^th Apr 2024 at NATRAX Indore. Three MoUs were exchanged during the conference with an objective to increase global presence of testing agencies. Total 150 delegates participated in this conference.
8. BHEL signed an MoU with CSIR-IICT on 19^th April 2024 for indigenous development of CO2 capture from Coal Gasification & conversion to Di-Methyl Ether (DME).
9. BHEL has entered into a Strategic Partnership Agreement on 30^th April 2024 with M/s HIMA Middle East FZE, Dubai (A wholly owned subsidiary of HIMA Paul Hildebrandt GmbH, Germany) for Railway Signalling Business to increase its business potential in Non-Thermal sector.
10.  BHEL entered into a Technology Transfer Agreement with Bhabha Atomic Research Centre (BARC) on 27.05.2024 for 50 kW alkaline electrolyser system for Hydrogen production. This will enable BHEL to participate in SIGHT Program for Tranche – II of Hydrogen Electrolyser Manufacturing under the National Green Hydrogen Mission launched by MNRE.
11.  A Joint Venture (JV) has been incorporated as “Bharat Coal Gasification and Chemicals Limited” on 28.05.2024 with the objective to engage into the business of coal gasification to produce Syn-Gas, Ammonia & Nitric acid as intermediate products and Ammonium Nitrate as end product. The JV is with Coal India Limited (CIL) in which CIL holds 51% and BHEL holds 49% equity.
12.  As a part of the 10th International Yoga Day 2024 celebrations, MHI in association with BHEL, organized a Common Yoga Protocol demonstration at BHEL, Noida premises on 2l^st June, 2024. The Union Minister (HI & Steel), Shri H.D. Kumaraswamy presided over the event. Secretary along with senior officers of the Ministry and BHEL participated in the event.
13.  MHI along with Society of Indian Automobile Manufacturers (SIAM) organized ‘Charging Ahead – Empowering an EV-Ready Workforce’ workshop on 17^th July 2024. Union Minister (HI & Steel), Shri H D Kumaraswamy presided over the event. The workshop focused on the importance of preparing a skilled workforce for the growing electric vehicle industry. Participants were encouraged to contribute to the transition towards cleaner energy solutions aligning with the nation’s long-term sustainability objectives. Union Minister reaffirmed India’s commitment to achieve Net Zero 2070 Vision as articulated by Prime Minister.
14.  As a part of Ministry’s ongoing efforts to evaluate the efficacy of CPSEs towards fulfilling their core objectives, assessing their progress and achievements, MHI organized a conference on ‘Annual Performance Review’ of its operational Central Public Sector Enterprises (CPSEs) at Vigyan Bhawan on 30^th August, 2024 under the chairmanship of Union Minister (HI & Steel), Shri H.D. Kumaraswamy. CMDs and Board of Directors (including Independent Directors) of CPSEs participated in the Conference. During the conference, all CMDs presented operational and financial performance of their CPSE for the financial year 2023-24 and 1st Quarter (i.e. April to June) of 2024-25. CMDs also briefed about significant achievements and key initiatives for efficiency improvements, profitability enhancements, business expansion, modernization and way forward for their CPSE.
15.  A Post Budget Webinar titled ‘E-Mobility, Capital Goods, and Way Forward’ bringing together the key stakeholders was chaired by the Union Minister (HI & Steel) on 22^nd August, 2024 with an objective to implement budget announcements in a time bound manner.
16.  “Har Ghar Tiranga” programme was celebrated successfully by MHI and its Central Public Sector Enterprises (CPSEs) / Autonomous Bodies (ABs) during 13^th – 15^th August, 2024 with great enthusiasm and fervour.
17.  The Swachhta Pakhwada 2024 was observed successfully by MHI and its CPSEs / ABs from 16^th – 31^st August, 2024.
18.  BHEL has successfully developed 85 KW Axial Flux Permanent Magnet (PM) based motor for e-mobility and defence applications. This technology offers substantial reduction in size & weight and is ARAI certified for e-bus. Its performance has also been demonstrated to Indian Navy at Naval Dockyard, Vizag.
19.  BHEL has supplied steam generator for nuclear power plant at Anu Vidyut Pariyojana (GHAVP), Gorakhpur, Haryana. Significantly, this is the 45^th steam generator supplied by BHEL, highest by any manufacturer in India.
20.  MHI organized an event titled “FAME’s Success in Transforming India’s EV Landscape: From Vision to Reality” at Bharat Mandapam, New Delhi on 18^th September, 2024. Union Minister (HI & Steel), Shri H. D. Kumaraswamy presided over the event and felicitated OEMs and stakeholders for their participation and contributions to the FAME-II scheme, which has been extremely successful in promoting electric vehicle adoption in the country.
21.  As a part of Tree plantation campaign #एक_पेड़_माँ_के_नाम and ‘Swachhata Hi Seva’ campaign, a tree plantation drive was led by Union Minister (HI & Steel) at Cement Corporation of India Ltd. Residential Township, Bokajan, Assam on 21^st September, 2024. Notably, MHI alongwith its Central Public Sector Enterprises (CPSEs) / Autonomous Bodies (ABs) have planted more than Ninety-five thousand plants upto September, 2024 across the country. In addition, under ‘Swachhata Hi Seva’ campaign more than 333 cleanliness activities were conducted and more than 63 Cleanliness Target Units (CTUs) were taken up for cleaning by MHI and its CPSEs / ABs with an objective to transform these neglected / challenging locations, often referred to as black spots, into clean and healthy spaces.
22.  The ‘370 MW Yelahanka Combined Cycle Power Plant’, executed by BHEL on EPC basis, at Bengaluru was inaugurated by Chief Minister of Karnataka on 24^th September, 2024.
23.  CMD, BHEL presented a cheque of Rs.55 crores as dividend for the year 2023-24 to Union Minister (HI & Steel) on 18^th September, 2024.
24.  MHI launched the PM E-DRIVE Scheme at Bharat Mandapam, New Delhi on 1^st October, 2024. Union Minister (HI & Steel), Shri H. D. Kumaraswamy alongwith MoS (HI & Steel), Shri Bhupathi Raju Srinivassa Varma presided over the event in the presence of senior officials and key leaders from the automotive industry.
25.  MHI successfully completed its Special campaign 4.0 on Swachhata from 2^nd October, 2024 to 31^st October, 2024 and celebrated it as a cleanliness festival within the Ministry and across its Central Public Sector Enterprises (CPSEs) / Autonomous Bodies (ABs). During the campaign, revenue amounting to Rs.6.95 crores (approx.) has been generated through scrap disposal and 31.64 lakh sq. ft. (approx.) space has been freed leading to repurposing of new office areas, meeting halls, libraries etc. Furthermore, 42,399 physical files and 5,792 digital files have been reviewed. 13,279 physical files have been weeded out and 6,043 digital files have been closed during the campaign.
26.  BHEL participated in the International Methanol Seminar at Manekshaw Centre, New Delhi on 17^th– 18^th October 2024, held under the aegis of NITI Aayog. The company showcased its cutting-edge technologies in coal gasification and coal-to-chemicals conversion. Union Minister for Road Transport & Highways visited the BHEL pavilion and lauded the company’s efforts in supporting and furthering GoI’s initiatives towards achieving Net Zero by 2070.
27.  Under the aegis of MHI, BHEL organized ‘BHEL SAMVAAD 4.0’ – the fourth edition under the theme ‘नवाचार और सहयोग से आत्मनिर्भरता को मजबूती देना’/ ‘Strengthening self-reliance through innovation & collaboration’ to promote dialogue with domestic business partners, Industry Associations, Academia, Research Institutes, Government Organizations, other ministries, CPSEs and Institutions at Bharat Mandapam on 25^th November 2024. The event was inaugurated by Union Minister (HI & Steel), Shri H.D. Kumaraswamy, in the presence of senior officials from MHI and BHEL. During the event, Union Minister released ‘Udyog Bharati’, a Hindi magazine of MHI, along with BHEL’s engineering compendium – ‘Innovation to AatmaNirbharta’ followed by felicitation of star performers who have contributed to the cause of Aatmanirbhar Bharat.
28.  The Second India-Japan Joint Working Group (JWG) Meeting on Automotive took place on 6^th November, 2024, in New Delhi under the India-Japan Industrial Competitiveness Partnership (IJICP). It included a Japanese delegation, Indian industry associations, and government officials. Discussions centred on bilateral cooperation in hybrid vehicle incentives, automotive recycling, ADAS, cyber security, and capacity building. The meeting aimed to strengthen ties in the automotive sector.
29.  A Statement of Intent (SOI) has been signed between Ministry of Defence (India) and Ministry of Defence (UK) on 28^th November 24 for co-operation on design & development of Electric Propulsion System (EPS) for Indian Naval ships. Consequent to signing of SOI, BHEL and GE Power Conversion extended the original MoU till April 2026.

Original News Source: Press Information Bureau