Press Conference
by
HON’BLE SHRI ANANT GEETE,
MINISTER
(Heavy Industries & Public Enterprises)
Date: 25th September, 2014
Venue: PIB Conference Room, Shastri Bhawan

Progress of India and development of Heavy
Industries is synonymous since they contribute
significantly to GDP (~9%), tax revenues and
employment opportunities (over 20 million).

Ministry is aligned with the vision of Hon’ble Prime
Minister with regard to the “Make in India”
Policy, i.e. promote indigenous production with
global quality standards.

Substantial capital and technological investments
needed.

Ministry is incessantly striving to achieve this goal.
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CAPITAL GOODS SECTOR

CG Sector annual turnover ~ `2 Lakh Cr. / Export ~
`50,000 Cr

GoI has sanctioned pilot scheme for enabling
industries in Capital Goods Sector to be in line with
global competition with a provision of `930.96
crores of which:
 `581.22 crore would be provided by the GoI
through grants-in-aid; and
 The remaining would be contributed by consortium
of industries.

Features of “`930.96 crore Capital Goods Sector
Scheme” Five
Centres of Excellence for technology
development at IITs (Delhi, Mumbai, Chennai &
Kharagpur ) and CMTI, Bengaluru (` 312.5 cr)

One Integrated Industrial Infrastructure Facilities park
for Machine Tool, near Bengaluru (` 400 cr)

Two Common Engineering Facilities Centres (one of
them at Surat Gujarat) (` 61.20 cr)

Testing and Certification Centre for Construction
equipment and earthmoving machinery (` 100 cr)

Technology Acquisition Programme ( `50 cr)
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CAPITAL GOOD SKLLS DEVELOPMENT
COUNCIL
• To meet the long term demand of skilled manpower
alongside technological developments.
• Will make comprehensive plan comprising of skill gap
identification,
standardization
of
occupation
standards, selecting master trainers, training of
trainers and third party certification etc.
• DHI will also utilize manpower of its PSUs as also
skilled youth residing in and around these PSUs
purely on demand basis thereby ensuring their
employment.
Projected to cover > 1 million over
next 5 years.
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CENTRAL PUBLIC SECTOR UNDERTAKINGS
UNDER DHI
• 32 PSUs are being administered by DHI
• Some of these PSUs are getting Govt. aid as
Non-Plan loan for paying Salaries and other
Statutory dues.
• Preparing roadmap for identifying PSUs, that
are not capable of revival, for closing them
down after giving benefit of Voluntary
Separation Scheme(VSS).
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Bharat Heavy Electrical Limited (BHEL)
• BHEL, a Maharatna CPSE, is a leader in India in
developing frontier technologies in several
areas including power, renewable energy,
railway locomotives, defence etc.
• Recently, BHEL has launched totally flexible
fuel boilers, first of its kind for super critical
power plant.
• Flexible boilers can use 0-100% domestic and
imported coal
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Ultra Mega Green Solar Park
•
Proposal to establish Ultra Mega
Green Solar Power Park with an
ultimate capacity of 4000 MW in
Rajasthan, with 1000 MW Solar
Power Plant in first stage at an
estimated cost of `7950 cr through a
JV including BHEL, Sambhar Salts,
REIL etc.
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HEAVY ELECTRICAL EQUIPMENT SECTOR
• Heavy Electrical Equipment Sector
contributes to ~70% of total Capital
Goods Sector
• ¾ of India’s energy is produced through
thermal power
• Currently
facing
coal
shortage
domestically
• R&D Project initiated for Advanced Ultra
Super critical Technology through BHEL,
NTPC and IGCAR
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• Total outlay of AUSC Project ~ `1500 cr /
DHI budgetary support – Rs. 1100cr
• R&D phase to complete by mid 2017,
followed by first 800 mw power plant by
NTPC
• Approx 11% energy efficient and 18%
CO2 reduction over Super Critical level
• Will place India in top 3 or 4
technologically advanced nations.
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AUTO SECTOR
• An important Sector – contribution to National
GDP (7.1%) total turnover (approx. US $ 80 Billion
per year and employment (approx. 19 million)
• After slowdown in last 2 years, Sector now showing
good sales growth of 12 % during April – August
(2014) over previous year owing to continuation of
lower excise duty rates:
Types of Vehicles
Increase
Two-wheeler
Three-wheelers
Passenger Cars
15%
17%
4.5%
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• Ministry working to finalize Auto Mission Plan–II
for 2016-2026, to be launched in mid 2015.
• Assistance being provided for more vibrant and
strong auto sector through :
 UNIDO-ACMA Auto Cluster Scheme
(Covering 500 tier 2 and 3 units in next 3
years)
 Auto Skill Development Council (ASDC) –
over 100 job rolls developed for curriculum,
TOT, assessment, certification etc. Over 1 Lakh
trainees to be covered this year.
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Electric Vehicle Scheme
• Important Component are – Demand and Supply
incentive, public charging Infrastructure, R&D and
Pilot Projects.
• Envisages potential demand
hybrid/electric vehicles by 2020
for
6-7
million
• Anticipated fossil fuel saving of over `60,000 crore
• Anticipates considerable CO2 emission reduction
• Additional job creation of ` 2.5 – 3 lakhs
Status: Scheme with total outlay of Approx. ` 14,000 cr is
awaiting approval of EFC / Cabinet.
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DEPARTMENT
OF
PUBLIC ENTERPRISES
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Mandate of DPE

Department set up as BPE in 1965 & became a full
fledged Department in 1990.

Acts as a nodal agency for all CPSEs and formulates
policy pertaining to the role of PSEs in the economy.

Lays down policy guidelines on performance
improvement & evaluation (MoU), autonomy &
financial delegation and personnel management.
(Management,
Corporate
Governance,
CSR,
Counselling, Retraining & Redeployment)

Collects, evaluates and maintains information on
several areas in respect of PSEs. (Survey)
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CPSEs : A fact sheet (as on31.03.2013)







Out of 277 CPSEs, 229 are operating and 48 are
under construction.
Total investment in CPSEs is `8,50,599 crore.
229 operating CPSEs reported turnover of `
19,45,777 Crore.
169 CPSEs earned profit while 79 CPSEs reported
losses.
Profit of CPSEs increased by 17% from `98,246(201112)crore to Rs 1,15,298 Crore(2012-13).
Loss of 79 loss making CPSEs marginally increased by
2% from ` 27,683 Cr to Rs. 28,260 Cr.
Total employees strength in CPSEs is `14.04 lakh.
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Corporate Governance Initiatives
•
Revamp of the process of selection and
appointment of Independent Directors
currently underway.
•
Aligning DPE Guidelines such as those on
Corporate Governance and Board of
Directors with provisions of Companies Act,
2013.
•
Capacity Building of Independent Directors of
CPSEs.
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Memorandum of Understanding (MoU)
 A mutually negotiated agreement between the
management of the CPSEs and the Government of
India/ Holding CPSEs.
 Dynamic Exercise and Balanced Score Card approach
- Financial and Non Financial areas included.
 Coverage of CPSEs steadily increasing.
 Commitment
included
&
Assistance
from
Government
 Efforts to make MoUs more flexible and incorporate
national/international benchmarks and encourage
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globalization.
Corporate Social Responsibility (CSR) &
Sustainability





DPE issued the first Guidelines on CSR in April 2010.
Revised DPE guidelines on CSR & Sustainability were
effective from April 2013.
DPE guidelines have ceased to exist after CSR Rules
notified by Ministry of Corporate Affairs (MCA) under
Section 135 of Companies Act, 2013 came into effect on
1st April, 2014.
CSR Rules are applicable to all companies including CPSEs.
Several CPSEs have demanded that DPE should also issue
guidelines on CSR & Sustainability within the overall
mandate of the Companies Act, 2013. DPE drafted
guidelines for CPSEs to supplement CSR Rules. These are
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under consideration of MCA.
Policy on pay scales of Executives
& wages of Workmen





DPE issues guidelines and renders advice to Ministries /
Departments / CPSEs in matters of pay revision of
executives and wage settlement of workmen of CPSEs.
97% employees are on Industrial DA pattern of pay scales.
Rest are on Central DA pattern of pay scales.
2007 pay revision (for employees on IDA pattern of pay
scales) based on the recommendations of the 2nd PRC is
in vogue w.e.f. 01.01.2007.
Adoption of 2007 pay scales is subject to a CPSE’s ability
to afford and sustain the burden of pay revision without
budgetary support from Govt.
Most CPSEs on IDA pattern pay scales have adopted the
2007 pay scales while 47 CPSEs due to non-affordability
are still in 1997 / 1992 / 1987 pay scales.
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



CDA pattern of pay scales (based on Govt’s approval
of 6th CPC Report) extended to CPSEs w.e.f.
01.01.2006. Adoption of revised pay scales also based
on affordability criterion.
Management of CPSEs negotiate the wage structure
for the workmen with Trade Unions / Associations.
DPE only issues broad guidelines.
An important aspect of wage negotiation is to ensure
that wage revision for workmen does not come in
conflict with the pay revision of executives and non–
unionised supervisors.
The periodicity of wage settlement (7th Round) for
the workmen in CPSEs is for 10 / 5 years. The last
wage revision was from 01.01.2012 for five years.
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Board for Reconstruction of Public Sector
Enterprises (BRPSE)
 An Advisory Body to address the task of
strengthening, modernization, reviving
and
restructuring of Central Public Sector Enterprises
(CPSEs) and to advise the Government on
strategies, measures and schemes related to them.

It is proposed to strengthen this organisation.
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RECOMMENDATIONS OF BRPSE
(as on 31.08.2014)
 GOI/Holding
Companies approved revival of
48(out of 58) CPSEs and closure of 4 (out of
6)CPSEs.
 Total assistance given ` 41,140 crore from Govt. of
India/holding companies.
 Total no. of employees benefited 2,15,500.
 19 CPSEs declared turnaround.
 Scheme to incentivize top management.
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THANK YOU
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