AUTO POLICY ANNOUNCED
YEAR
END REVIEW-2002
The first ever an
Auto Policy was announced in March, 2002 with a vision to establish
a globally competitive Automotive Industry in India and to double
its contribution to the economy by 2010. It aims to promote integrated,
phased, enduring and self-sustained growth of the India automotive
industry. Its objectives are: Exalt the sector as a lever of industrial
growth and employment and to achieve a high degree of value addition
in the country; Promote a globally competitive automotive industry
and emerge as a global source for auto components; Establish an
international hub for manufacturing small, affordable passenger
cars and a key center for manufacturing Tractors and Two-wheelers
in the world; Ensure a balanced transition to open trade at a
minimal risk to the Indian economy and local industry; Conduce
incessant modernisation of the industry and facilitate indigenous
design, research and development; Steer India’s software industry
into automotive technology; Assist development of vehicles propelled
by alternate energy sources and Development of domestic safety
and environmental standards at par with international standards.
Forty nine PSEs under
the Department of Heavy Industry under the Ministry of Heavy Industries
and Public Enterprises achieved a production of Rs. 11,643 crore
during 2001-2002. Thirteen PSEs have made profit. Revival Plans
sanctioned by BIFR in case of 12 PSEs are under implementation.
These Plans involve fresh infusion of funds by the Government
to the extent of Rs. 654 crore and financial restructuring of
Rs. 2,106 crore. A white paper on PSEs under Department of Heavy
Industry is under preparation. This will identify the road map
depicting the future of these PSEs.
Apart from BIFR cases,
the Government on its own has approved financial/business restructuring
in case of seven other PSEs, involving fresh infusion of Rs. 531
crore and financial restructuring of Rs. 1,443 crore.
Contd….2/-
The Government has
signed a revised Joint Venture agreement with Suzuki Motor Corporation,
Japan, allowing SMC to raise its equity from 50 to 54.2 per cent,
after paying the price for rights issue, as well as the control
premium amounting to Rs. 1,000 crore. A turn around Plan was approved
by Government in July, 2000 for HMT having plants located in nine
States. Major elements of financial/organisational restructuring
include: Fresh infusion of funds to the extent of Rs. 295 crore;
Formation of subsidiaries for Machine Tools and Watch Business
Groups; Closing of five unviable units and offering VRS to all
employees and Conversion of Rs. 39.70 crore Government loan into
equity.
Cases of 17 PSUs/subsidiaries
have been referred to DOD for Disinvestment/JV. Cases of subsidiary
PSUs which have already not been sent to DOD are being dealt in
DHI.
The Department initiated
various pro-active measures to strengthen the functioning of PSUs
and capital good industry in general. An Inter-Ministerial Committee
to co-ordinate matters related to development and growth of Capital
Goods Industry has been constituted. A Task Force on Export of
Capital Goods has also been set up. Similar, Inter-Ministerial
Committees have also been set up in the case of Auto Sector and
the Wagon Industry.
The Bharat Heavy
Electricals Limited (BHEL), a Navratna Company under DHI, performed
exceptionally well during the year 2001-02 and achieved an all
time high turnover of Rs. 7,257 crore (prov.) with Profit Before
Tax at Rs. 631 crore. The Company also achieved the highest ever
inflow of orders worth Rs. 9836 crore, in a single year. It also
procured record export orders of Rs. 800 crore. BHEL, for the
first time in India, has developed a state-of-the-art package
for assessing the remaining life for power transformers and suggesting
life-enhancing measures for the same. Thirty two thermal power
stations in the country with generating equipment, built by BHEL
have been awarded Government of India’s Meritorious Productivity
Awards for excellent performance. The prestigious ISO-14001 Certification
from Det Norske Veritas, Netherlands, has been awarded to BHEL’s
Industry Sector headquarters in New Delhi, a first for India.
BHEL has achieved
a major landmark with the successful commissioning of the first
ever 124 MW ISO rated Gas Turbine based power plant for Bangladesh
Power Development Board in Baghabari Bangladesh on turn-key basis.
Engineering Projects (India) Ltd. achieved the highest ever turnover
of Rs. 396.81 crore during 2001-2002, showing a growth rate of
86.72 per cent.
