Policy Update
Kiranmanonmani. Y
Background
The Ministry of Heavy Industries, Government of India, is one of the key ministries of the Government of India, which oversees the development of heavy machinery and tools, industrial machinery, and the automotive industry, as well as the establishment of heavy industries in the country. Mr. H. Kumaraswamy currently heads the ministry as the Union Minister, and Mr. Bhupathi Raju Srinivasa Varma serves as the Minister of State. There are five verticals under the Ministry, which include the automobile sector, heavy engineering equipment and machine tools, Central Public Sector Enterprises (CPSE), the Heavy Electrical Equipment industry, and innovation
Roles and Functions:
Heavy industries have always served as an accelerator of the economic growth of our country and employ a major share of people in the manufacturing sector. Previously called the Ministry of Heavy Industries and Public Enterprise, the ministry was renamed as the Ministry of Heavy Industries on 13th June,1956.
The Ministry of Heavy Industry is concerned with the development of the Heavy Engineering and Machine Tools Industry, Heavy Electrical Engineering Industry, and Automotive Industry, and administering the following 40 Central Public Sector Enterprises (CPSEs) and their subsidiaries and four autonomous bodies.
Structure:
There are four autonomous bodies under the administration of the Ministry of Heavy Industries, namely,
- The Automotive Research Association of India(ARAI), Pune, Maharashtra.
- Fluid Control Research Institute, Palakkad, Kerala.
- National Automotive Board
- Central Manufacturing Technology Institute, Bengaluru, Karnataka
The Ministry also has three sector skill councils, namely
- Infrastructure Equipment Skill Council (IESC)
- Capital Good Skill Council (CGSC)
- Automotive Skill Development Council (ASDC)
There are forty Central Public Sector Enterprises under the control of the Ministry of Heavy Industries, of which 16 are operational, 1 is non-operational, 5 industries are under closure, and 15 enterprises are under liquidation. The functional enterprises are as follows,
- Andrew Yule & Co Ltd. (AYCL)
- Bharat Heavy Electricals Limited (BHEL)
- Braithwaite, Burn & Jessop Construction Company Limited (BBJ)
- Bridge & Roof Company (India) Limited (B & R)
- Richardson & Cruddas (1972) Limited (R&C)
- Heavy Engineering Corporation Limited (HEC Limited)
- HMT Limited (HMTL)
- HMT Machine Tools Limited (HMTMTL)
- Instrumentation Limited
- HMT (International) Limited (HMTI)
- Rajasthan Electronics & Instruments Ltd. (REIL)
- Cement Corporation of India Ltd. (CCIL)
- NEPA Ltd
- Hindustan Salts Limited (HSL)
- Sambhar Salts Limited (SSL)
- Engineering Projects (India) Limited. (EPIL)
Schemes:
Scheme for the enhancement of competitiveness in the public sector, Phase II:
1. Establishing a self-sustaining ecosystem for research and innovation via Technology Innovation Portals.
2. Enhancing workforce skills and expanding the talent pool.
3. Promoting smart manufacturing and adopting technologies for Industry to improve efficiency and productivity.
4. Encouraging the indigenization of capital goods technologies.
This scheme has a financial outlay of ₹1,207 crore, comprising ₹975 crore in budgetary support and an industry contribution of ₹232 crore.
Production Linked Incentive Scheme for Automobile and Auto Components:
The Indian government has launched a Production-Linked Incentive (PLI) Scheme for the automobile and automobile components sector, with a total outlay of Rs. 25,938 crores over five years. The scheme aims to enhance manufacturing capabilities and exports by providing financial incentives for Advanced Automotive Technology (AAT) products, attracting investments, and creating a robust supply chain.
It is expected to generate employment and allow the industry to move towards higher value-added products. A total of 18 companies are categorized as ‘Champion OEMs’ and 67 as ‘Component Champions’ under this scheme, with an estimated investment of Rs. 67,690 crores from these firms. By Q2 of FY 2023-24, Rs. 11,958 crores in investments have been reported, and Tata Motors and M&M have received AAT and Domestic Value Addition (DVA) certificates.
GST Concession Certificate for Persons with disabilities
The Ministry of Finance has provided a GST concession on cars for persons with disabilities. The Ministry of Heavy Industries has launched an online portal to issue certificates, which is https://gecs.heavyindustries.gov.in/, for persons who have orthopedic disability of 40% or above. The eligible vehicles are
1. Motor vehicles not exceeding 4000 mm
2. Petrol, LPG, or compressed natural gas-driven vehicles of engine capacity not exceeding 1200 cc and diesel-driven vehicles of engine capacity not exceeding 1500 cc.
Electric Mobility Promotion Scheme (EMPS)
The Ministry of Heavy Industries has introduced the Electric mobility promotion scheme for the promotion of green vehicles such as electric two-wheelers with an outlay of Rs.. 500 crores for a period of 4 months from 1st April 2024 to 31st July 2024. The scheme mainly focuses on providing incentives to users of commercial electric vehicles. Some of the domestic EV users are also eligible to avail of incentives that are fitted with advanced batteries.
PM E-Drive Scheme
To promote the usage of electric trucks across the country, the Ministry of Heavy Industries has launched the PM E-Drive scheme by deploying 5600 trucks nationwide. The incentives are provided around Rs 9,60,000 per vehicle in the N2 and N3 category, with a special quota of 1100 electric trucks for Delhi. The eligibility criteria to avail of incentives in the scheme are:
- Compulsory scrapping of old diesel trucks
- Five years or 250,000 km of motor components
Conclusion:
The Ministry of Heavy Industries has been making remarkable achievements by initiating various schemes such as the Production Linked Incentives Scheme (PLI) for automobiles and auto components, the PM E-Drive scheme, the Electric Mobility Promotion Scheme, the GST Concession certificate, etc.
The Ministry has played a major role in promoting growth and competitiveness within India’s heavy engineering. machine tools, heavy electrical, and automotive sectors. The ministry is dedicated to boosting domestic production, reducing reliance on imports, and enhancing the overall technological capabilities of these crucial industries.
The ministry also faces significant challenges, especially in infrastructure development, red tape, administrative delays, and intense global competition. Amidst all these challenges, the Ministry, with the support of the Government of India and its policy support, funding for research and development, and skill development programmes, continues to work efficiently and aspires to achieve a primary position on the global stage.
References:
Power Line. (2025, July 15). Ministry of Heavy Industries launches incentive scheme for electric trucks under PM e-Drive. https://powerline.net.in/2025/07/15/ministry-of-heavy-industries-launches-incentive-scheme-for-electric-trucks-under-pm-e-drive/
Ministry of Heavy Industries. (n.d.). Ministry of Heavy Industries, Government of India. https://heavyindustries.gov.in/
Press Information Bureau. (2024, May 10). PM e-Bus Sewa and EV policy updates. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2085207
Press Information Bureau. (2023, August 16). MHI to support e-mobility and green initiatives. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1989854
About the Contributor:
Kiranmanonmani. Y is an Economics Hons student at Hansraj College, University of Delhi, and a research intern at the Impact and Policy Research Institute (IMPRI).
Acknowledgement:
The author would like to express sincere gratitude to Ms Aasthaba Jadeja and the IMPRI team for their guidance throughout the writing of this article.
Disclaimer:
All views expressed in the article belong solely to the author and not necessarily to the organization.
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