Department of Heavy Industry Ministry of Heavy Industries & Public ...

Recommendations for 12 th Five Year Plan for Capital Goods & Engineering Sector 37
machinery exports in the financial year 2009-10. Export has grown at
CAGR of 6.3% over the last six years.
Direct import of machinery by projects and mine operators and
construction contractors taking advantage of the favorable duty
structure is to the tune of Rs.7395 Cr. in 2010-11
6.3.1.34.3.1.3 Employment levels
The industry currently employs 1,00,000 people directly. It also
provides indirect employment to about 4,00,000 people.
6.3.1.44.3.1.4 Technology levels
The Mining and construction machinery sector in India has evolved
over the years and is at present in a intermediate stage of
development. The technology available in the country has the
pedigree from the international majors due to technical collaborations
in the past and is one generation behind in some product segments.
Few products manufactured in India by some of the MNC's who have
set up assembly plants in India are meeting the global standards.
The Industry is trying to bring in International levels of technology as
demand and scale of operation is increasing. The users are now not
looking at initial cost of equipment but focusing on cost per ton of
usage and it is anticipated that 5 years hence, more mechanization
and enhancement of scale may lead to change in the level of
technology in use. In India open cast mining is much more popular
than underground mining. Hence the equipment required for the open
cast mining like Dumpers, Dozers Shovels, Draglines and Excavator
are manufactured in India. The level of technology is at par with
international standards except for the usage of electronic controls,
hydraulic systems and engines, adhering to latest emission norms.
6.3.24.3.2 12 th Plan Target
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 CAGR
Market Size
(Rs Cr)
Production
(Rs Cr)
Import
(Rs Cr)
Export
(Rs Cr)
Employment
(No. of
people)
18500 27376 33558 37155 41276 45232 19.5%
10000 16826 22356 26633 30528 34924 28.5%
8880 10950 11702 11147 11558 11308 4.9%
380 400 500 625 810 1000 21.3%
300000
6.3.2.14.3.2.1 Target size and growth rate
The consumption of Mining and Construction equipment is expected
to grow to Rs.45, 232 Crore at a CAGR of 19.5%. The domestic
manufacturing output would grow to Rs 34,924 Crore at a CAGR of
28.5% and would be able to meet at least 78% of the demand.
CAPITAL GOODS AND ENGINEERING SECTOR OCTOBER, 2011