No. 12/9/2017-HE&MTGovernment of India

Ministry of Heavy Industries & Public EnterprisesDepartment of Heavy Industry

Udyog Bhawan New DelhiDated 8th August, 2017

OFFICE MEMORANDUM

Subject: 3rd Phase of 5th Meeting of the Screening Committee held on ih August, 2017 inconnection with implementation of the Scheme for Enhancement ofCompetitiveness in the Indian Capital Goods Sector - minutes thereof.

The undersigned is directed to say that the 3rd Phase of 5th Meeting of theScreening Committee constituted in connection with implementation of the Scheme forEnhancement of Competitiveness in the Indian Capital Goods Sector was held on ih August,2017 and to forward herewith minutes of the same for Information and further necessaryaction, if any.

Enclosed: As above

(Sanjiv Kumar Gupta)Under Secretary (HE&MT)

To

(As per the enclosed list)

1. The Joint Secretary (HE&MT),Department of Heavy Industry,Udyog Bhavan, New Delhi.

2. The Economic Adviser,Department of Heavy industry,Udyog bhavan, New Delhi

3. The Director,Central Manufacturing Technology Institute,Tumkur Roaad, Bengaluru,Karnataka - 560022.

4. The SecretaryDepartment of Industrial Policy & PromotionUdyog Bhavan, New Delhi.

5. The Secretary,Department of Micro, Small & Medium Enterprises,Udyog Bhavan, New Delhi.

6. The Secretary,Department of Science & Technology,Technology Bhavan, New Mehrauli Road,New Delhi-ll0016.

7. Mr. O.P. JhaC-504, Therwani Heritage Sector -7,Kharghar Navi Murnbai - 410210

8. The Deputy Secretary (IFW),Department of Heavy Industry,

9. The Director (HE&MT),Department of Heavy Industry,

10. Sr. D.O. (SC)Department of Heavy Industry

11. Sf. D.O. (NG)Department of Heavy Industry

12. Consultant (SL)Department of Heavy Industry

13. Professional Interns(Shri Rohan Bajaj & Ms. Priya)

14. PSO to Secretary (HI)Department of Heavy Industry

Department of Heavy Industry(HE&MT Section)

MINUTES OF THE 3nl PHASE OF THE 5TH MEETING OF SCREENINGCOMMITTEE DATED 07.08.2017 CONSTITUTED UNDER THESCHEME FOR ENHANCEMENT OF COMPETITIVENESS IN THEINDIAN CAPITAL GOODS SECTOR

3I'd Phase of the 5th meeting Screening Committee in connection withimplementation of Scheme for "Enhancement of Competitiveness in the IndianCapital Goods Sector" was held on 07.08.2017 from 4.00 PM in KaustubhamUdyog Bhawan, New Delhi under the chairmanship of Sh. N. Sivanand, JointSecretary, (HE&MT), Department of Heavy Industry. The list of participants ofthe meeting is given at Annexure

2. Following proposals were discussed in the meeting:

(i) Proposal from IISC-Bangalore with Wipro 3D under the Scheme componentcentre of Excellence for design and development of 3 0 Printing technologies,systems and materials.

(ii) Proposals of funding under Enhancement of Competitiveness in the IndianCapital Goods Sector for two on-going plan projects of CMTI, approved earlier byDIPP, i.e. Nano Manufacturing Technology Centre(NMTC) and Sensor TechnologyDevelopment Facility (STDF) with enhanced cost estimates.

(iii) Tool and Gauge Manufacturers' Association, India (TAGMA).

3. Proposal from IISc-Bangalore with Wipro 3D under the Schemecomponent centre of Excellence for design and development of 3D Printingtechnologies, systems, and materials:

3.1 A presentation was made by the Professors of IISc-Bangalore. It was statedthat this is a proposal for developing Additive Manufacturing Machine for HighPerforming Alloys. The proposed machine is for producing large size components.He stated that we need to interlink Additive manufacturing at least where we arealready 20 years behind our international competitors has been proposed by IIScBangalore alongwith Wipr03D to set up a Centre of Excellence for AdditiveManufacturing which will help develop indigenous additive manufacturing capabilityspanning -High performance metallic alloy characterisation, Electronbeam/laser/plasma based configurable energy source development, Dynamicprocess control capabilities for such complex manufacturing process, processmonitoring sensors etc., which will reduce the production cost and lead time by atleast 30%. The project cost has been estimated at RS.1 0.5 crore with DHI grant of

9.1 crore i.e. 86.7% of the total project cost with industrial contribution of 1.4 crorei.e. 13.3 % of the total project cost. This machine is envisaged to ahead of thosebeing developed by global manufacturers.

3.2 It was stated that this project will see the integration capabilities of IISc faculty.As regards 20% industry contribution, itwas stated that they are working with BEMLand GTRE for arranging 20% of funding. They propose to build a complete machinefrom the scratch with capabilities of building indegenious sub-systems in the country.

3.3 As regards the query on manufacturing the machines, Prof Anurag replied thatthey are already in touch with vendors in Peenya Industrial area, Bangalore formanufacturing different sub systems of the machines. Wipr03D being their industrypartner, would provide them with necessary industry linkage in terms ofspecifications and design.

3.4 Shri OP Jha, technical expert, has expressed that before starting the project,market survey for the project must be done to assess the demand for the technologyto be developed. He also suggested that the experience of user industry is importantand need to the incorporated for developing commercially viable model. He alsoopined that industry partners should be associated with the project from thebeginning itself. Prof Anurag replied that Wipr03D, their industry partner already hasAdditive manufacturing Machine and they are bringing their experience on the tablein respect of users specifications and requirement.

3.5. Dr. Sateesh Kumar, Director CMTI expressed that the timeline of two yearsset for the project appears to be unrealistic and there should be a clarity from thebeginning itself as to whether the energy source development will be laser/plasma/electronic beam based. Prof. Arurag Srivastava of IISC responded that the twoyears' time line is an optimistic one and most likely the project will be completed inthree years' time. They want to set an ambitious target, while starting with laser, butwould work with other energy sources as well.

3.6. Dr. Biswas, Director (R &0), BHEL expressed that CMTI Bangalore shouldalso be on board for the project, to which IISC agreed.

3.7. On a query from the Committee, Prof. Anurag Srivastava, IISC, informed thatthey are ready to comply with the provisions of the Capital Goods Scheme relating toIPR, testing and monitoring of the project. On the issue of research students leavingthe project after sometime, Prof. Shrivastava responded that faculty member,Research and Project associates are committed to be associated with the Project forthe entire duration.

3.8 Committee observed that at present Industry contribution is RS.1.4 crore out ofthe total project cost of Rs. 10.5 crore and 20% Industry contribution criteria underthe Capital Goods scheme needs to be adhered in the above project.

3.9 Chairman stated that while the project in principal is desirable, market surveyalso needs to be done and machine manufacturing industries should also beassociated in the project. Also, 20% contribution conditions needs to be maintained.On the issue of involving machine manufacturing industries, Prof Srivastava statedthat they will make efforts for the same, but generally IPR sharing condition is notagreeable to most of the companies.

3.10 Screening Committee recommended the proposal subject to IISCconforming to 20% Industry contribution condition and suggested theapplicants to explore the market and tie up with machine manufacturingindustries.

4. Proposals of funding under Enhancement of Competitiveness in theIndian Capital Goods Sector for two on-going plan projects of CMTI, approvedearlier by DIPP, i.e. Nano Manufacturing Technology Centre(NMTC) and SensorTechnology Development Facility (STDF), with enhanced cost estimates.

4.1. Officers of CMTI made a presentation before the Screening Committee and ithas been brought out that both the above projects are on-going projects and wereearlier approved by DIPP in 2014.

Sensor Technology Development Facility (STDF)-

4.2. CMTI has mentioned that sensors would be developed under the project. CMTIhas stated that the total sanction cost of projects is RS.95.00 crore. Out of whichRs.49.95 crore have already been utilized and Rs.45.05 crore are yet to be received.CMTI has projected the project cost from April 2017 to November, 2017 at RS.82.80crore with fund requirement for 2017-18 at RS.32.25 crore. CMTI has soughtadditional funds of Rs. 7.75 crore for the project over and above the earliersanctioned cost of RS.95.00 crore.

4.3. The detailed break-up of the additional funds requirement was studied by theScreening Committee and it was observed that the additional requirements appearsto be justified in view of the fact that a separate infrastructure, which was not earlierplanned, is required with the clean room labs, as per factory audit report. Further, themanpower cost is now to be inbuilt in the project cost itself which was not the caseearlier when CMTI was under DIPP and there was a provision of budgetary supportin terms of grants-in-aid for the said purpose.

Nano Manufacturing Technology Centre(NMTC)-

4.4 CMTI has mentioned that the project would lead to creation of Micro andNanofabrication and Nano material characterisation services to industries andindigenous development of advanced equipments and products for industries.

4.5 CMTI has stated that the present sanctioned cost of the project is Rs. 134.22crore. Rs.127.62 crores has already been received and spent. Balance of RS.6.6

crores is yet to be received out of the already sanctioned cost. In addition, CMTI isseeking grant of Rs. 19.36 crore from DHI on account of operational expenditure,clean room furnishing, office equipments etc.

4.6. The detailed break-up of the additional funds requirement was studied by theScreening Committee and it was observed that the additional requirements appearsto be justified in view of the fact that earlier the estimates were made provisional innature, without taking the technical inputs, however as per the actual Bill of Material,cost has slightly escalated. Therefore, the additional expenditure on cleanroom/office equipments etc seems to be justified. Also the manpower cost is now tobe inbuilt in the project cost itself which was not the case earlier when CMTI wasunder DIPP and there was a provision of budgetary support in terms of grants-in-aidfor the said purpose

4.7 Screening Committee recommended the proposal Proposals of fundingunder Enhancement of Competitiveness in the Indian Capital Goods Sector fortwo on-going plan projects of CMTI, approved earlier by DIPP, i.e. NanoManufacturing Technology Centre(NMTC) and Sensor TechnologyDevelopment Facility (STDF), with enhanced cost estimates, as requested byCMTI.

5. Proposal of Tool and Gauge Manufacturers' Association, India (TAGMA) toconsider two machines procured before the project sanction under projecthead

5.1. The representative of TAGMA has mentioned that Grant of RS.26.27 crorewas approved by the Apex Committee for TAGMA out of the total project cost ofRS.51.92 crore (80% of the machine cost). This project is being set up by Tool andGauge Manufacturers' Association, India (TAGMA) at Plot No. A-22/2, Phase-II,Chakan, Chakan Industrial Area, Pune. DHI has released first instalment of grant onRS.8.18 crore on 14-01-2016.

5.2. It has been brought out by TAGMA that in its DPR they had submitted to theMinistry that they were already offering services for Tool Trials in a temporarylocation in Chakan, Pune in a building of 6400 Sq. ft., which had been taken on rentfor the project. Once TCET is built, these facilities would be moved into the Centre. Ithad procured 500T and 850T Injection Moulding Machines with accessories. Thesemachines were commissioned in the year 2014. These are running successfully onjob work basis. These machines are being used by TAGMA only to provide servicesto the Tooling industry. During the year 2016-17, TAGMA has been able to generaterevenues worth RS.87.53 lakh with profit of RS.21.42 lakh and it has been recordedin the books of TCET, as informed.

5.3. Further it has been brought out that the cost of these machines isRS.2,74,23,284/-. Now TCET has sought DHI's approval for transferring thesemachines into the account of TeET at the same cost and use the funds in equivalent

proportion from the grant given by DHI for this project. The equivalent portion fromDHI of above amount would be Rs.2,19,38,627/-. TAGMA has sought approval foruse of Rs.2, 19,38,627/- from the grant.

5.5. Chairman, Screening Committee observed that entertaining suchrequests may lead to routing of second hand machines and audit issues.However, since DPR made a mention of the machine TAGMA was requested togive a chronological detail of the issues along with the documentary supportsuch as copy of the invoices of the machine, etc. to verify the genuineness ofthe case.

6. Meeting ended with a vote of thanks to the chair.

AnnexureAUGUST 7, 2017 AT 1600 HRS UDYOG BHAVAN, NEW DELHI ATTENDENCE

SHEET

3rd Phase/5th SCREENING COMMITTEE

DHI

1. Shri N. Sivanand, JS - In chair,2. Mrs Ritu Pande, Director3. Shri Sanjay Chavre, Sr DO4. Shri Sanjiv Gupta, US5. Shri Sushi! Lakra, Consultant6. Shri Rohan Bajaj, Professional intern7. Ms Priya Mamgain, Professional intern

Experts and applicants

S.No NAMEIDESIGNA TION ORGANISATION TELEPHON Mail-idE

I. S.Satish Kumar CMTI Bangalore 9449842677 ~tL?h!gIDli@)1i c. in

2. S. Usha CMTI, Bangalore 9449842662 .Llsh£t~mlL@J1iQ-,jn

3. Prakash Vinod, CMTI, Bangalore 9449842680 prakashv .cmti(a;nic. inScientist-F. HOD-NMTC

4. Rama.IC CMTI, BangaJore 9449842684 rama.cmticznic.ln

5. K.H.Thulashi Raman ITSC,Bangalore 988672103 ramanQhvs((}!gmail.com

6. J.E.Diwakar USC, Bangalore 9945196002 jed(aJcQam.iisc.erneLin

7. Anurag Srivastava lISC, Bangalore 9845205321 anuragsrivastava.blr94(LI)grnail.Q0111

8. K.S. Aravind Kumar, TAGMA 9820903845 15:umsiO1(ZIJ,gmai.comPRC Member TAGMACET (CEFC)

9. Binod Kumar, DIPP 9968131429 bjnQ~lqJmaI52I£~ni<::,LnUS,OIPP

10 Dr. DP Jha, DHI 9430155406 .fhaol21(Lilrcdiftcrnail.col11Expert Technology

11 A.K. Tamaria MSME 9891273375 aktamariacadcmsme.zov. in%DC (MSME),Ministry of MSME

12 Subrata Biswas, BHEL 8527050066 biswas(j)),bhel. inDiretor(E, R&D),BHEL