Heavy Engineering

Strong growth is forecasted in the global machinery market with revenues expected to reach USD 2 trillion in 2018. India is gearing up to play a significant part in addressing the associated demands of this phenomenal growth drawing on the industrial expansion, domestic consumption requirements, the ‘Make in India’ initiative, technology and innovation drive in the country, availability of skilled resources, export demands and asset, infrastructure and technology related investment potential among others. In Karnataka, heavy engineering is a focus sector for the government. Karnataka is also among the top 3 contributing states in the heavy engineering industry in India. This sector ensures that small, medium and large scale industries are equipped with the optimum cutting edge tools and machinery to deliver world class products and services.

Key drivers for growth in the segment:

The domestic and International growth indicators project a significant demand vs. supply gap which makes the sector set for growth. Capacity additions envisaged in various sectors especially the infrastructure, telecom, automobile, aerospace and nuclear creates a demand of capital goods in the countryand will drive this sector to exponential growth. Focus on industrialization and growing urbanisation in the country is also a key growth driver for the sector.

PSUs, MNCs and MSMEs are working hand in hand to elevate the ecosystem in the manufacturing of heavy engineering in Karnataka and support a congenial environment to fulfil the FDI aspirations of the state. Presence of skilled manufacturing aligned talent pool of engineering and technical people from 1400+ ITIs, 200+ engineering colleges and 400+ R&D institutes cater across the production value chain attracting industries and investments to the state.

Karnataka nurtures one of the five prominent identified foundry clusters in the country and has initiated capacity addition plans for rapid expansion and growth in the sector. Connectivity to the biggest national and international markets via air and sea, owing to its two international airports and one major port as well as ten minor ports, makes Karnataka an ideal manufacturing hub. Availability of industrial infrastructure along with existing engineering clusters is an added advantage.

Track Record:

India is one of the top gainers in Machine Tools market at a growth rate of 12% despite global growth of 1% in FY14 with a major chunk of India's machine tools being produced in Karnataka, with Bengaluru alone contributing to about 60% of the country’s machine tools in terms of value which is estimated at USD 332 mn. Exports from Karnataka in the heavy engineering sector almost tripled between FY11 and FY15 indicating strong growth. Karnataka’s share in Heavy Electrical machinery is the 2nd highest in the country, constituting 12.5% of its output. Karnataka has also experienced phenomenal growth in Special Purpose Machinery sector at a rate of 38% CAGR, far exceeding even the country’s growth rate (11%). This positions Karnataka as the only one among the top five capital goods manufacturing states to exhibit such a unique trend.

Being a priority sector in the state’s Industrial Policy 2014-19 is a key step with single window clearance mechanisms to facilitate new investments and obtaining the principle approvals and other approvals from various departments & organizations through the e-udyami software.Location -based incentives have been formed to encourage inclusive & balanced growth.

Improvement of the Mangaluru port and of its connectivity to major industrial clusters in the state made a priority.

Dharwad and Tumakuru identified as nodes in Bengaluru-Mumbai Economic Corridor and Chennai-Bengaluru Industrial Corridor respectively and the proposal of dedicated Machine Tool Park in Vasanthnarasapura, Tumakuru are steps taken by the government to strengthen support for this sector in the state.

Foundation of India’s first Integrated Machine Tool Industry Park (IMTIP) in Bengaluru in 2012 and the establishment of General Engineering SEZ in Mangaluru are also testimonials to the government’s commitment. Joint establishment of the Advanced Machine Tool Testing Facility (AMTTF), a state-of-art equipment facility at the Central Manufacturing Technology Institute (CMTI) by machine tool industry and DIPP, Government of India is instrumental in nurturing and harnessing the sector in Karnataka.

Approximately 300 acres of land in Tumakuru district has been demarcated for dedicated Machine Tools Park.
Machine tools focused technology incubation centre in association with industry on PPP mode.
Karnataka government is keen to develop Free Trade Warehousing Zone (FTWZ) for engineering sector through PPP mode.
Housing of several precision tool units in Belagavi, Peenya Industrial Estate, and Bommasandra Industrial Estate in Bengaluru.

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