F. 12/23/2015 - HE&MT

Department of Heavy Industry(HE&MT Section)

Subject: Second Meeting of the Apex Committee dated 8th October, 2015 in connectionwith implementation of the Scheme for Enhancement of competitiveness in the IndianCapital Goods Sector - Minutes thereof.

The Second Meeting of the Apex Committee constituted in connection withimplementation of the Scheme for Enhancement of competitiveness in the Indian Capital GoodsSector was held on 8th October, 2015 under the Chairmanship of the Secretary (Heavy Industry).The list of participants is annexed as Annexure I.

2. -The Chairman welcomed the members of the Apex Committee and other participants inthe Meeting including applicants and representatives of machine Tool Industry. He observedthat proposals have to be analyzed keeping in view factor like relevance, viability and Schemeobjectives.

,3. Thereafter, Joint Secretary (HE&MT), gave a brief introduction to the proposals to beconsidered by the Apex Committee i.e.(i) Proposal from Indian Institute of Technology, Madras (IIT-M) for development of 11machine tool technologies/projects under Centre of Excellence component of the Scheme inassociation with six machine tool companies as Industry partners; and(ii) Proposal from HMT Machine Tools under Common Engineering Facility Centre for trainingand skill development at HMT Training Institute.

3.1 He pointed out that funding for development of technologies is in line with the Schemeobjectives and emphasized the need to develop technologies which may result in importsubstitutes. All the 11 technologies of the proposal are meant for import substitution. Some ofthe technologies, though available with other countries, are denied to India.

3.2 He observed that during the last meeting of the Apex Committee on 11.12. 2014, IIT-Mwas advised to approach the Screening Committee with larger user base in consultation withIMTMA. IIT-M was also advised to reduce DRI component of grant to the extent available byincreasing the user base and by increasing contributions from proposed users. However, only sixindustrial partners (one partner for a particular technology) could be involved despite sincereefforts by IIT - M. It was also observed that in line with the suggestion of the ScreeningCommittee in its meeting dated 21.8.2015, IIT - M has made efforts to bring down the cost and asa result total project cost and consequently the share of Gal support has come down. TotalProject cost has come down to Rs. 56.125 crore from Rs. 67.52 crore and accordingly theGovernment Support has been reduced from Rs. 54.01 crore to about Rs. 44.75 crore.

3.3 He also informed the Committee that subsequent to last screening committee meeting,experts have been appointed by the department for inter-alia, examining and evaluating theproposals received. After examination by the screening committee, IIT - M proposal was sent tothe subject expert who has rated the 11 projects based on impact, priority, specificity of deliverables, etc.

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and comments of the expert were circulated to IIT-M. While most of the projects have been ratedhigh-medium, some of the projects have been rated low.

4. AS&F A, DRI mentioned that the benefits of the Project should not be limited to IndustryPartners and stressed the need for spreading the benefits of technology development across theIndustry. It was pointed out that a two year lock in period from the scheduled date of completion ofthe project has been proposed before the Apex Committee by the committee on IPR. AS&F Aopined that after the initial lock in period, IIT - M will take initiative for dissemination of technologyand other benefits accrued from the projects and Central Manufacturing Technology Institute(CMTI) should be an active partner in dissemination of technologies so that the developedtechnologies will reach out to broader industry base, which would be in line with the objective ofScheme.

Proposal for CoE for Machine Tools

5. This was followed by the presentation made by Dr. Ramesh Babu, Professor, IIT -M on.theeleven Projects with 6 industry partners. The eleven projects considered by the committee are asbelow:

(i)(ii)

(iii)

(iv)(v)(vi)(vii)(viii)(ix)

, (x)(xi)

Development of 5 axis CNC Multi-tasking machine- Jyoti CNC Automation Ltd.Development of 5axis CNC Universal Machining Centre- Jyoti CNC AutomationLtd.Development of Hydrostatic Systems for Machine Tools -Micromatic GrindingTechnologies_Automation of Grinding Process Intelligence -Micromatic Grinding TechnologiesThermal Compensation Strategy for CNC lathes -Ace Designers Ltd.Ultra Precision Micro Machining Centre -Machine Tools Aids BureauLow Cost Machine Tending Robot -Machine Tools Aids BureauMulti Station Robotic Grinder and Polisher-Chennai Metco Pvt. Ltd.Orbital Motion Abrasive Cutting of Metals-Chennai Metco Pvt. Ltd.Direct Drive Automatic Abrasive Cut off Machine-Chennai MetcoPvt. Ltd.Development of 5kW drives and 25kW spindle drives for machine tool applications -Interface Design Associate P Ltd.

6. The committee was unanimous on the need to develop import substitutes as high precisionand cutting edge technologies in machine tool sector is a must for the country for making "Make inIndia" vision a success. These technologies primarily pertain to cutting machines involving metalremoving. It was opined that all the eleven projects were forward looking and were the way to gounder the scheme. The infrastructure so -created under the COE and facilities created thereby can beused by other industries also and will facilitate creation of an ecosystem for development ofMachine Tools (MT) Sector. The Committee felt that CoE on MT coupled with the proposal for MTPark, separately under consideration by the DHI with Karnataka Govt would give a much neededboost to the MT industry. All the eleven Projects were approved by the Apex Committee. Briefparticulars of the Projects are placed at Annexure II. It was agreed that Governing Council of IIT-M which will monitor the progress of the eleven projects will have representatives from theDepartment of Heavy Industry, CMTI and Industry Association other than the Director, IIT - M or

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his/ her representative. Help of Independent experts may also be taken for monitoring theprogress of the project. CMTI offered to validate some of the technologies being developed.

7. AS&FA desired to know about the financial systems being followed in lIT whilereceiving Government grants and for ensuring that the Govt. grants are gainfully utilized. Prof.Ramesh Babu clarified that lIT - M, being a Government autonomous institute, has properauditing mechanisms with proper check and balances. lIT Madras was requested to makeavailable a copy of their financial control systems for better understanding of their processes.

Skill Development Proposal of HMT

8. The presentation by IIT- M was followed by the presentation of HMT Machine ToolsLtd. on the proposal for setting up a training and skill development infrastructure under CEFCcomponent of the Scheme at HMT Training Institute at a cost ofRs. 0.97 crore, 20% of which i.eRs. 19.40 lakhs will be borne by HMT Limited. The Project aims to train persons withqualification of SSLC or ITI Certificate in job roles such as CNC Operator, Fitter MechanicalAssembly, Quality Inspector, Machine wiring/ interfacing, Fitter Electrical Assembly. Skills setsto be imparted include machine operations, calibrations, quality control and system integration.The batch size will be 25-30. On successful completion, the trainees will be awarded withjointly certification with CGSC and can take up job as assistants in the particular trade. Duringthe above course, candidates will also be imparted knowledge on computer fundamentals, softskills along with communicative English Language.

9. The Representative ofHMT Machine Tools informed that the grant- in - aid received forthe Project from the Government will be kept in escrow account and will be releasedprogressively only after due verification of Expenses incurred by the Special Purpose Vehicle(SPV). The Spy will provide the utilization certificate for the funds received from theGovernment.10. The Apex Committee approved the proposal.

Presentation and Discussion on IPR under the scheme

11. The Committee was informed that as per decision of the last meeting of the ScreeningCommittee, a multi disciplinary committee had been set under IA (SL) to suggest a policy forIPR under the scheme. The committee had made the following recommendations:-(i) In general, IPR will be held jointly by the Project Implementing Organization (PIO) andthe participating Industry (PI). I

(ii) In special cases, if IP is the result of sole contribution by the PIO or the PI, then theconcerned PIO or the PI will own the IP solely. However, in that case, the Government hasevery right to transfer the technology to other manufacturers after a lock- period of two years.(iii) IP/IPR with joint ownership of the PIO and the PI will not be transferred to any otherparty for a period of two years from the scheduled date of completion.(iv) However, depending on the circumstances on a case to case basis consideration theScreening Committee may extend the lock in period beyond 2 years with the approval of DRI.(v) PIs will have free perpetual right to the IPs generated by them jointly with the PIO orsolely by the PIO even after lock in period.

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(vi) Once the IP comes to public domain after the initial lock -in period, the issue of licensing androyalty will be finalized jointly by the DID, PIO and the PI.

12. The apex Committee broadly approved the recommendations with the following modifications:

(i) Government shall have a royalty free licence for the use of intellectual property for thepurpose of the Government of India.(ii) The technology developed would be made available for dissemination after two years fromthe scheduled date of completion of the specific project, under the proposal, irrespective of theacquisition ofIPR. Moreover, the technology would be made available at a nominal fee.

Review of approved Projects

13. The Members were informed that the Proj ect of development of hi-tech shuttle less loomsby CMTI, Bangalore is progressing smoothly. ""

14. The first instalment of grant- in- aid will be released to the SPY floated by TAGMA forCommon Engineering Facility Centre in Chakan, Pune shortly as they have acquired the requisiteland for the Project.

Summary of Decisions

(i) COE at IIT-Madras for the 11 specified technologies, as mentioned at Annexure-II,approved. Government budgetary support would be limited to 44.7539 crores.

(ii) CEFC at IIMT Training Institute at a cost of Rs. 97 lakhs for training 5 batches of 25-30students in the job roles such as CNC Operator, Fitter Mechanical Assembly, QualityInspector, Machine wiring/ interfacing, Fitter Electrical Assembly. Governmentbudgetary support would be limited to 77.60 lakhs,

(iii) IPR policy to be followed under the scheme, as detailed at paras 11 &12 above.

The Meeting ended with thanks to the Chair.

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F.12/23/2015 - HE&MTAnnexure I

Department of Heavy Industry(HE&MT Section)

Subject: Second Meeting of the Apex Committee dated 8th October, 2015 in connection withimplementation of the Scheme for Enhancement of competitiveness in the Indian CapitalGoods Sector- List of Participants.

Sl.No. Name and Designation Department / Ministry /Organization

1. Shri Rajan S. Katoch Secretary, Department of Heavy ChairmanIndustry

2. Shri Vishvajit Sahay Joint Secretary, (HE&MT), Department Member-Secretaryof Heavy Industry

3. Shri S K Bahri (AS&FA), Department of Heavy Industry Member

4. Shri. Ritu Jain, Director - DIPP, Udyog Bhavan Member

5. Shri. S. Satish Kumar Director In Charge, CMTI Member

6. Shri. P.c. Sunoj SBI Member

7. Shri. Chetan Bijesure Director, FICCI Member

8. Ms.Ratika Jain Executive Director Manufacturing, CII Member

9. Shri. V.S. Radha General Manger, SBI MemberKrishnan

10. Shri. Sanjay Gowan DGM, SIDBI Member

11. Dr. N. Ramesh Babu Professor, I.I.T Madras Applicant

12. Shri. Girish Kumar. S CMD, HMT Ltd. Applicant

13. Shri. B. M. MDM, HMTMTL ApplicantShivashankar

14. Shri. Krishna Professor, liT Madras ApplicantVasudevan

15. Shri. Digendra Sharma Chennai Metco Pvt. Ltd Chennai IP

16. Shri. T.P. Sridhar Ace Designers Ltd. Bangalore IP

17. Shri. Sashi Sairaman MTAB Engineers (P) Ltd. IP

18. Shiro N.K Dhand Micromatic Grinding Tech. ltd. IP

19. Shri.Hemant Kumar Jyoti CNC Ltd. IP

20. Shri. Srinivasan Interface Design Associates pvt. Itd IPKrishnamurthy Iyer

21. Shri. P.J. Mohanram Senior Adviser, IMTMA Bangalore Industry Association

22. Shri. Srinjoy Das Director and Head - Northern Region, Industry AssociationIMTMA

23. Shri. Basvdev Thakur Sr. Execution Officer, IMTMA Industry Association

24. Ms. Chandni Kokroo Executive Officer, CII Invitee

25. Shri. Susil Lakra Industrial Adviser, Department of Heavy InviteeIndustry

26. Ms. Ritu Pande Director (HE&MTL Department of InviteeHeavy Industry

27. Shri. Sanjay Chavre, (SDOL Department of Heavy Industry Invitee

28. Shri. NL. Goswami (SDOL Department of Heavy Industry Invitee

29. Shri. A. M Manichan (IFWL Department of Heavy Industry Invitee

F.12/ 23/ 2015- HE&MTAnnexure II

Particulars of project under the proposal of liT· Madras considered by the Apex Committee on 8.10.2015(Rs. in

51. Project Title & Project Cost Deliverables Cost Benefit AnalysisNo. Industry partner (51. No. 12 of part (51. No.5 of part 2 of (51. No. 15 of part 1 of Application)

1 of Application) Application)&

Duration1. Development of 9.29 • Spindle air cooling system • Competitive price as compared to foreign suppliers -

5 axis CNC Multi· • Developing new Tool These series of Machines will be approx 30% costtasking machine Manpower - 2.42 clamping system like HSK competitive as compare to foreign suppliers.

Equipment - 1.22 Capto, BMT • Foreign exchange savings of approx. 50 M$ over a spanJyoti CNC Other Cost - 4.65 • Effective coolant and ship of 4 years.Automation Ltd. Admin & management • Foreign exchange earnings of approx. 10 M$ over a span

maintenance 1.00 • Hirth coupling and brake for of 4 yearsB axis • Increase in margin Iproductivity cost.

Gol Contribution - • Automation system like ATCI • Improved financial performance.7.4320 turret/ part loading unloading • Improved efficacy in productivityIndustry • Spindle motor developmentcontribution - 1.858 Geometrical and Thermal (Foreign exchange savings of approx. Rs. 301.5 crs over a•Project Duration

error compensation system span of 5 years.

• Methodology for Energy Foreign exchange earnings of approx. Rs. 50.9 crs over a3 Years efficiency machine tool span of 5 years.)

development• Software - user interface and

machine monitoring system• Machine structural design and

optimisation2. Development of 14.738 • Hirth coupilng and brake for • Competitive price. as compared to foreign suppliers -

5axis CNC rotary axis These series of machines will be approx.. 30% costUniversal Manpower - 3.018 • Hiqh speed rotary axis with competitive as compared to foreign suppliers.

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Cr.)

Machining Centre Equipment - 1.220 gear drive for turning andOther Cost - 9.30 milling operation

Jyoti CNC Admin & • Hydrostatic bearing for rotaryAutomation Ltd. maintenance - 1.20 axis

• Automation systems likeGoi Contribution - ATCI part loading unloading11.7904 • Spindle motor development]Industry • Geometrical and Thermalcontribution - error compensation to2.9476 improve work piece accuracy

• Energy efficiencyProject Duration • Software - user interface and3 Years machine

• Machine structural designand optimisation

• APC, monitoring system

3. Development of 3.827 State of the art grinding machineHydrostatic (without capital with hydrostatic spindle andSystems for equipment cost) guideways.Machine Tools

Equipment - 1.61Micromatic Manpower- 0.987Grinding Material &Technologies consumable - 0.77

IPRI Patents - 0.18Travel- 0.12

Gol contribution -3.0616Industrycontribution -0.7654

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• Foreign exchange savings of approx .. 50 M$ over a span 'J

of 4 years• Foreign exchange earnings of approx.. 10 M$ over a

span of 4 years• Increase in margin I productivity cost• Improved financial performance• Improved efficiency in productivity

Foreign exchange savings of approx. Rs.428 crs over a spanof 5 years.Foreign exchange earnings of approx. RS.69.3 crs over aspan of 5 year.

• The Complete Design methodology developed during thisproject would lead to implementation of the hydrostaticspindles and guideways in other grinding verticals suchas internal grinding. Centreless grinding, etc.

• The technology developed can also be adapted formilling and turning operations.

Project Duration3 Years

4. Automation of 2.810 Grinding Machine with aGrinding Process software with abilities for inIntelligence Manpower- 0.40 process problem diagnostics,

Hardware/ Software process diagnostics and processMicromatic - 0.30 planning.Grinding Operating cost -Technologies 0.30

Other Cost-181.00

Gol contribution -2.24792Industry ,contribution -0.56198

Project Duration3 Years

5. Thermal 1.77 Thermal compensation strategyCompensation Manpower - 0.17 on CNC LattesStrategy for CNC Hardware/ softwarelathes - 1.02

Operating cost -Ace Designers Ltd. 0.26

Other Cost - 0.32

Gol contribution -1.4160Industrycontribution -

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• 5% of imports can be substituted by the project.• As the technology would be first of aids kind. It brings

many export opportunities.• The system once developed can also be integrated to

turning and milling machines

• Indian machines are as yet not accepted to be of highclass of accuracy and hence high accuracy machines arebeing imported to satisfy the machining needs.

• To compete with these requirements, the Indianmachines need to achieve the same levels of accuracyon the components.

• Once the methodology is established, the same can bereplicated on various models of machines.

6.

Low CostMachine TendingRobot

Ultra PrecisionMicro MachiningCentre

Machine ToolsAids Bureau

7.44 • Nano machining technology• Design of. high precision

machines tools• Sub-Micron

application• Fixture & tooling

Development for ultra -precision machining

• Selection of driving elements• Development of direct drive &

linear motor Technology• System integration of multi-

axes controls• Micro-Welding,

deposition and surfacetreatment,

• Nano vibration analysis• Measuring

instrumentation for micro-parts

• Cooling and lubricationtechnologies

. Project Duration3 Years

Developmentrelated software /hardware /consumables -3.37

Operating cost -0.50Manpower cost -0.67Others - 0.25Cost at COE - 2.65

Gol Contribution -5.9520Industrycontribution -1.4880

Project Duration2.5 Years

Machining

Nano

and

..

• Benefit of Rs. 2.00 Cr + Duties and Taxes• Besides Finance Cost benefit of Rs.2.00 Cr., this

technology is not available in India. Thus the technologycan be made available to nuclear defines, aerospace,electronics, micromachining industries, medicalcomponents machines, micromachining manufacturing.

• Threat of non-availability of supply fromselective countries can be mitigated.

7.

Machine ToolsAids Bureau

As per SI. No. 25Capital Equipmentcost - 1.57Manpower Cost -0.52

4.80 • Robotics• Robot System Integration• Automation Technology using

Multiple Linkages• Selection of Driving elements• Development high accuracy

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• Present imported cost of 6-10 kg robot is varying fromRs. 20 -30 Lakhs depending on the support.

• MTAB shall provide the robot between Rs. 6-10 Lakhs• Expect to sell approximately 100 robots in the

manufacturing sector and academic institutions puttogether every year.

8. Multi StationRobotic Grinderand Polisher

2.33 Multi Station Robotic Grinder andManpower - 0.45 PolisherOperating cost -0.8360Hardware/ software- 0.4576Other Cost-0.5864

Other Cost - 1.06CoE cost -.1.65

Gol Contribution-3.84IndustryContribution - 0.96

Project Duration2.5 - 3 Years

Gol contribution -1.864Industrycontribution - 0.466

.Project Duration6 months

Chennai MetcoPvt. Ltd.

Gear Technology• System integration of multi-

axes controlsSoftware development inworkspace design, simulation &control

• It will be an indigenous robot technology• Robot Design, control and application courses can be

introduced at graduate level for P.G. students and Ph. D,scholars.

• Skill development in robot customization, implementation,application and service. Hence the employment potentialcan increase as most robot automation will take place atMSME industries too. Creating direct and indirectemployment up to 100 people.

• Potential customers: Research institutes such as IITs,NITs; Nuclear research centers, Defence, AutomotiveIndustries, Aeronautics

• Savings/Total Investment Cost - 0.68

,..

9. Orbital MotionAbrasive Cuttingof Metals

Chennai MetcoPvt. Ltd.

Manpower - 0.17Hardware/ Software- 0.3381Other Cost-

0.85 Orbital Motion Abrasive cutting of •Metals

Potential Customers; Nuclear industry; Defenceindustry; Automotive Industry, Aeronautics.Benefit Ratio (Savings/ Total Investment Cost) -- 1.17•

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Gol Contribution -. 0,68Industrycontribution - 0,17

\

Project Duration-6 months

10. Direct Drive 1.80 Direct Drive Abrasive cut off • Potential Customers; Nuclear industry; Defence industry;Automatic Machine Automotive Industry, AeronauticsAbrasive Cut off Manpower - • Benefit RatioMachine 0,0517 (Savings/Total Investment Cost)- 0.59

Operating cost-Chennai Metco 0.4941Pvt. Ltd. Hardware / software

- 0,6466Other Cost-0,6076 .,

Goi contribution -1.44Industrycontribution - 0.36

Project Duration-6 months

11. Development of 6.47 Development of 5 kW axis drives • Import substitution and indigenous technology availability5kW drives and and 25 kW spindle drives for to machine tool manufacturers25kW spindle Manpower- 1.62 machine tool applications • Development of trained manpower to undertake designdrives for Other Cost -0,90 and development of high performance machine controlmachine tool Hardware/software • Export possibilities of total machine tool systemsapplications - 1.75 • Enabling India to produce multi-axis machines - 4 axis, 5

Operating cost - axis etc.

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Interface Design 1.06 • Lower costs will enable more penetration of machineAssociate P Ltd. CoE/ Other tools in the market

Institution - 1.14 Create service business opportunities for installation,maintenance and service engineers

Gal Contribution -5.03Industrycontribution - 1.44

Project Duration -2 Years

Total Project Rs.56.125 croreCost

TotalGovernment Rs. 44.7539 croreSupport

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