Parliamentary Panel Flags Funding Gaps in Heavy Industries

13 Mar 2026 CW Team

The committee flagged recurring BE-to-RE compression and declining revised estimate utilisation, and called for realistic budgeting and a restored balance between revenue and capital. It urged augmentation of capital for testing and research and development and recommended scheme-specific smoothing and early consultations with the Ministry of Finance.

PM E-DRIVE has a total outlay of Rs 109,000 mn and received Rs 15,000 mn in BE 2026-27, with incentives delivered for 1,656,335 electric vehicles against a revised target of 2,826,634, roughly 58.6 per cent. Achievements are concentrated in electric two-wheelers and L5 three-wheelers while electric trucks, buses and ambulances recorded zero and the e-rickshaw segment reached 3,602 units against 39,034. The committee asked for incentive extensions to 31 March 2028, restoration of e-rickshaw targets and action on about 0.475 mn unregistered e-rickshaws.

It recommended review of charging subsidies to spur private participation and time-bound rollout plans. Tenders worth about Rs 6,224.5 mn for testing agency upgradation show nil utilisation and 232,588 vehicle claims remain under process, prompting calls for integrated digital verification and time-bound disbursal. The committee also urged tighter monitoring of the Production Linked Incentive (PLI) scheme, noted a total PLI outlay of Rs 259,380 mn with allocations of Rs 59,398.7 mn, and sought an immediate beneficiary-wise review of the Advanced Chemistry Cell (ACC) battery PLI within three months given only one GWh commissioned.

The Department-Related Parliamentary Standing Committee on Industry (Rajya Sabha) presented its 332nd report on the Demands for Grants 2026-27 of the Ministry of Heavy Industries (MHI). Figures converted from crore and lakh are expressed in million (mn). The Budget Estimates 2026-27 for the Ministry stand at Rs 79,399 mn against a projected requirement of Rs 94,843.2 mn, a shortfall of about 16 per cent, with revenue at Rs 79,370.8 mn and capital compressed to Rs 28.2 mn from Rs 5,020 mn. The committee flagged recurring BE-to-RE compression and declining revised estimate utilisation, and called for realistic budgeting and a restored balance between revenue and capital. It urged augmentation of capital for testing and research and development and recommended scheme-specific smoothing and early consultations with the Ministry of Finance. PM E-DRIVE has a total outlay of Rs 109,000 mn and received Rs 15,000 mn in BE 2026-27, with incentives delivered for 1,656,335 electric vehicles against a revised target of 2,826,634, roughly 58.6 per cent. Achievements are concentrated in electric two-wheelers and L5 three-wheelers while electric trucks, buses and ambulances recorded zero and the e-rickshaw segment reached 3,602 units against 39,034. The committee asked for incentive extensions to 31 March 2028, restoration of e-rickshaw targets and action on about 0.475 mn unregistered e-rickshaws. It recommended review of charging subsidies to spur private participation and time-bound rollout plans. Tenders worth about Rs 6,224.5 mn for testing agency upgradation show nil utilisation and 232,588 vehicle claims remain under process, prompting calls for integrated digital verification and time-bound disbursal. The committee also urged tighter monitoring of the Production Linked Incentive (PLI) scheme, noted a total PLI outlay of Rs 259,380 mn with allocations of Rs 59,398.7 mn, and sought an immediate beneficiary-wise review of the Advanced Chemistry Cell (ACC) battery PLI within three months given only one GWh commissioned.

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