Ministry of Heavy Industries

What Ministry of Heavy Industries does

The Ministry of Heavy Industries (MHI) is a ministry of the Government of India, established in 1947 and headquartered at Udyog Bhawan, Rafi Marg, New Delhi. It is responsible for promoting and developing India's heavy engineering and capital goods sector — covering machine tools, heavy electrical equipment, industrial machinery, and the automobile industry — and for the administrative oversight of 29 operating Central Public Sector Enterprises (CPSEs) including Bharat Heavy Electricals Ltd. (BHEL) and HMT Ltd., along with five autonomous bodies such as ARAI and CMTI. The ministry is headed by Union Minister H.D. Kumaraswamy with Minister of State Bhupathiraju Srinivasa Varma and Secretary Kamran Rizvi, reporting through the Cabinet Secretary to Parliament.

MHI's core "products" are a portfolio of government incentive and manufacturing promotion schemes rather than a unified technology platform. These include the PLI scheme for automobiles and auto components (₹25,938 crore outlay, requiring minimum 50% domestic value addition), the PLI ACC national programme on advanced chemistry cell battery storage (₹18,100 crore outlay targeting 50 GWh capacity), the PM E-DRIVE scheme for electric mobility (₹10,900 crore), the REPM scheme for sintered rare earth permanent magnets (₹7,280 crore targeting 6,000 MTPA capacity), FAME-II, SPMEPCI for electric passenger car manufacturing, Capital Goods Phase I and II, and the PM e-Bus Sewa Payment Security Mechanism. Each scheme operates as a separate administrative program with dedicated portals and dedicated product/market outreach. Technology content within the ministry itself is minimal — there is no proprietary software product, no public API, and no app; instead the technology layer consists of scheme management portals and dashboards administered via implementing agencies such as IFCI Ltd.

The ministry's revenue mechanics are entirely budgetary: it does not generate commercial revenue and operates through annual budget allocations from the Government of India. Scheme outlays are disbursed to approved beneficiaries based on investment commitments, domestic value addition compliance, and performance criteria. Beneficiaries include Tata Motors, Bajaj Auto, Mahindra & Mahindra, TVS Motor, Ola Electric, Toyota Kirloskar Auto Parts, Reliance Industries, Ola Cell Technologies, and a growing set of EV-native startups (Ather Energy, Euler Motors, River Mobility, Matter, Raptee) seeking PLI inclusion. The ministry's GTM is policy-led: application windows, beneficiary selection via global tenders and domestic RFPs, compliance monitoring, and incentive disbursement — supplemented by stakeholder consultations, international partnerships (notably India-EU TTC on battery recycling), and industry workshops.

Name

Ministry of Heavy Industries

Legal name

Ministry of Heavy Industries, Government of India

Website

https://heavyindustries.gov.in

Company type

Private

Founded year

1947

Operating status

Operating

Headcount range

11–50 employees

Short description

The Ministry of Heavy Industries is a Government of India ministry promoting heavy engineering, capital goods, and automotive sectors. It administers PLI Auto, PLI ACC, PM E-DRIVE, and REPM schemes, disbursing over ₹62,000 crore in manufacturing incentives.

Ownership category

akta.pro rank

Product category

Industrial Policy Administration

NAICS

Executive and Legislative Offices, Combined (921140), Battery Manufacturing (33591), Electrical Equipment Manufacturing (33531)

akta.pro primary industry

Battery Pack & Module Manufacturing (EV) (IMACACAA)

akta.pro secondary industries

Automotive Charging Hardware Manufacturing (On-board Chargers, Charge Inlets, DC-DC) (IMACAJAK), Energy & Renewables Specialty Contracting (Solar PV, Storage, EV Charging) (IMAFALAJ)

Keywords

• Heavy industry policy
• Production linked incentive
• Electric vehicle subsidies
• Automotive manufacturing schemes
• Battery manufacturing incentives

Headquarters

HQ city

New Delhi

HQ country

India

HQ region

Asia

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Infrastructure, Others

Revenue model

1. Government Budget Allocation: The Ministry operates through annual budget allocations from the Government of India. Key scheme outlays include PLI Auto (₹25,938 crore), PLI ACC (₹18,100 crore), PM E-DRIVE (₹10,900 crore), and REPM Scheme (₹7,280 crore). Disbursements are made to approved beneficiaries based on performance criteria.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels3 records

Core offering

The Ministry of Heavy Industries designs and administers central government incentive schemes for India's heavy engineering, automotive, electric vehicle, and advanced chemistry cell (ACC) battery manufacturing sectors. Its core deliverable is the policy framework, budgetary allocation, and operational rollout of schemes such as PLI for Automotive & Auto Components, PM E-DRIVE, FAME India, and the National Programme on ACC Battery Storage, including disbursement of fiscal incentives to eligible manufacturers.

Product overview

The Ministry of Heavy Industries is a government ministry responsible for promoting the engineering industry in India, including machine tools, heavy electrical equipment, industrial machinery, automobile industry, and 29 operating Central Public Sector Enterprises (CPSEs). The ministry administers a portfolio of incentive and manufacturing promotion schemes rather than a unified product platform. The primary schemes include: PM E-DRIVE for electric vehicle adoption incentives, PLI Auto and PLI ACC for manufacturing incentives targeting automobiles/battery production, FAME-II for charging infrastructure, SPMEPCI for electric passenger car manufacturing, REPM Scheme for rare earth magnet production, and Capital Goods Schemes for industry competitiveness. These schemes operate as separate administrative programs with dedicated portals and management systems.

Differentiator

Problem solved

Functional benefit

Products and services

• Production Linked Incentive (PLI) Scheme for Automobile and Auto Components

Quantifiable outcome

• ₹35,657 crore investments attracted under PLI Auto scheme
• +4 more outcomes

Named customers14 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

13 partnerships are on record, tiered core and minor.

• Ather EnergycoreOthers · 5 July 2026CEO Tarun Mehta led a delegation of five EV startups to meet with Heavy Industries Minister H.D. Kumaraswamy to advocate for including new-age EV businesses under the PLI scheme for level playing field.
• Euler MotorscoreOthers · 5 July 2026Part of five EV startup delegation seeking PLI inclusion and meeting with Minister.
• River MobilitycoreOthers · 5 July 2026Part of five EV startup delegation seeking PLI inclusion and meeting with Minister.
• MattercoreOthers · 5 July 2026Part of five EV startup delegation seeking PLI inclusion and meeting with Minister.
• RapteecoreOthers · 5 July 2026Part of five EV startup delegation seeking PLI inclusion and meeting with Minister.
• European UnioncoreStrategic or Co-development Partner · 5 May 2026India-EU joint initiative on EV battery recycling under the Trade and Technology Council, with €15.2 million (~₹169 crore) funding pool. Includes establishment of joint India-EU pilot line in India for testing advanced recycling technologies to recover lithium, cobalt, and graphite from EV batteries.
• IREL (India) LtdcoreStrategic or Co-development PartnerState-owned company under Department of Atomic Energy, currently India's only company engaged in mining and refining rare earth ores. Providing assured NdPr oxide supply to the three lowest bidders under REPM scheme to ensure raw material security.
• Uno MindaminorChannel Partner/ Reseller/ DistributorUno Minda received MHI approval under Press Note 3 of 2020 for Inovance Automotive (HK)'s investment in its EV joint venture. Companies planning ₹423 crore investment in high-voltage EV powertrain components including Combined Charging Units, E-Axles, Inverters, and Motors.
• JapancoreStrategic or Co-development PartnerOne of 14 countries contacted by Ministry for global participation in ₹7,280 crore rare earth magnet scheme. Japan is a key player in rare earth magnet technology alongside China.
• AustraliacoreStrategic or Co-development PartnerOne of 14 countries contacted by Ministry for global participation in rare earth magnet scheme. Australia has significant rare earth mineral resources.
• United StatescoreStrategic or Co-development PartnerOne of 14 countries contacted by Ministry for global participation in rare earth magnet scheme to reduce dependence on China.
• United KingdomcoreStrategic or Co-development PartnerOne of 14 countries contacted by Ministry for global participation in rare earth magnet scheme.
• United Arab EmiratescoreStrategic or Co-development PartnerOne of 14 countries contacted by Ministry for global participation in rare earth magnet scheme.

Scale indicators10 records

Recent moves7 records

Expansion highlights6 records

Others

• Small Industries Development Bank of India (SIDBI): India's principal financial institution for MSME and startup financing — adjacent to MHI's PLI scheme ecosystem by providing the credit and venture capital infrastructure that smaller PLI beneficiaries depend on for working capital and scale-up.

Broad incumbents

• Japan Ministry of Economy, Trade and Industry (METI): Japan's industrial policy ministry administering EV and battery manufacturing support programs — explicitly engaged with MHI as one of the 14 countries contacted for the REPM rare earth magnet scheme.
• U.S. Department of Energy (DOE): U.S. federal agency administering Inflation Reduction Act EV/battery incentives and DOE loan programs — relevant comparable given parallel national industrial policy interventions in EV and battery manufacturing.
• China Ministry of Industry and Information Technology (MIIT): China's central industrial policy administrator overseeing EV, battery, and rare earth industrial policy — a direct global counterpart whose NEV credit system and rare earth export controls shape the competitive environment MHI is responding to.
• European Commission DG GROW: European Commission's industrial policy directorate that co-leads the India-EU Trade and Technology Council partnership on EV battery recycling with MHI — direct international peer on industrial and clean-tech policy coordination.
• Ministry of Power: Indian government ministry responsible for power generation and EV charging infrastructure rollout, overlapping with MHI on PM E-DRIVE charging infrastructure components and broader energy transition policy.

Direct peers

• Department for Promotion of Industry and Internal Trade (DPIIT): Indian government body responsible for industrial policy formulation, FDI policy, and Make in India initiative — directly comparable as a peer government department administering industrial development incentives and policy frameworks.
• NITI Aayog: Indian government policy think tank and apex advisory body that co-shapes industrial and EV policy direction alongside MHI, including the National Electric Mobility Mission Plan that informs MHI's scheme design.
• Ministry of Electronics and Information Technology (MeitY): Operates India's largest PLI scheme for electronics and semiconductor manufacturing, with comparable scheme outlay scale and similar beneficiary selection and incentive disbursement mechanisms to MHI's PLI Auto and PLI ACC programs.

Emerging players

• Invest India: National investment promotion and facilitation agency under the Government of India that complements MHI's incentive schemes by facilitating foreign direct investment into the same EV, battery, and automotive sectors.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/MHI_GoI
• Facebookfacebook.com/mhi_goi
• LinkedInlinkedin.com/company/ministry-of-heavy-industries

Revenue estimate

Valuation estimate

Number of profiles

Subsidiaries5 records

Funding overview

Funding rounds

Investors

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M&A

Investments

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Frequently asked questions about Ministry of Heavy Industries