Ministry Earmarks Rs 780 Crore for Automotive Testing Upgrade
India's Ministry of Heavy Industries has earmarked Rs 780 crore to upgrade the country's automotive testing infrastructure, ET Manufacturing reported on 26 September 2026. The allocation was attributed to the ministry in the report's headline, with no further breakdown of scope, timeline or beneficiary locations available from the published report.
Automotive testing facilities fall within the broader industrial machinery sub-sector, where capital investment activity has been building across several states. The announcement adds a significant public-sector spending signal to a segment that already carries active private-sector project pipelines.
Where the Machinery Sector Stands Right Now
Projects India tracks 17 live projects in the Machinery sub-sector, of which two were added in the last 90 days. The stage breakdown shows that the bulk of activity is still in early phases: nine projects are under approvals, four have entered construction, two are on hold, and two have reached completion.
For suppliers and equipment makers, the concentration of approvals-stage projects is particularly relevant — those projects represent near-term procurement decisions that have not yet been finalised.
State-by-State Distribution of Tracked Machinery Projects
Maharashtra leads the tracked pipeline with six projects, followed by Karnataka with four. Odisha and Tamil Nadu each account for two projects, while Gujarat and Madhya Pradesh each have one. This geographic spread points to procurement opportunities across multiple industrial corridors rather than a single concentrated hub.
| State | Projects Tracked |
|---|---|
| Maharashtra | 6 |
| Karnataka | 4 |
| Odisha | 2 |
| Tamil Nadu | 2 |
| Gujarat | 1 |
| Madhya Pradesh | 1 |
Selected Projects Currently in the Pipeline
Among the projects Projects India monitors in this sub-sector, several large-value schemes are currently under approvals. Schwing Stetter India Private Limited is developing an XCMG Loaders and Motor Graders unit at Cheyyar, Chennai valued at Rs 400 crore. Nipha Limited is pursuing a Rs 384 crore Railway Component Manufacturing project at Khurda, Odisha. Heraeus Technologies India Private Limited has a Rs 188 crore Metallurgical Sensors and Instruments project at Khordha, Odisha, also under approvals.
At the construction stage, Shiraz Industries LLP has started work on a Boiler and Heat Exchanger project at Chakan, Pune valued at Rs 25 crore, and Oiltech Engineering India Private Limited has commenced a Machine Tools Manufacturing unit at Latur, Maharashtra worth Rs 23 crore. A Welding Machinery project by Weldwell Engineering Company at Dahej, Bharuch is currently on hold.
| Project | Promoter | Location | Value | Stage |
|---|---|---|---|---|
| XCMG Loaders & Motor Graders Unit | Schwing Stetter India Private Limited | Cheyyar, Chennai, Tamil Nadu | Rs 400 crore | Under Approvals |
| Railway Component Mfg Project | Nipha Limited | Khurda, Odisha | Rs 384 crore | Under Approvals |
| Metallurgical Sensors and Instruments Project | Heraeus Technologies India Private Limited | Khordha, Odisha | Rs 188 crore | Under Approvals |
| Boiler & Heat Exchanger Project | Shiraz Industries LLP | Chakan, Pune, Maharashtra | Rs 25 crore | Construction Started |
| Machine Tools Mfg Unit | Oiltech Engineering India Private Limited | Latur, Maharashtra | Rs 23 crore | Construction Started |
| Welding Machinery Project | Weldwell Engineering Company | Dahej, Bharuch, Gujarat | Not recorded | Hold |
What this means for suppliers and contractors
The Rs 780 crore ministry allocation points to procurement activity in automotive testing equipment, instrumentation and related civil works, though no tender notices are currently open under Industrial Projects as tracked by Projects India. Suppliers should monitor for tender releases that are likely to follow a budgetary earmarking of this scale.
Separately, the nine machinery-sub-sector projects currently under approvals represent a near-term order horizon for component makers, civil contractors and equipment suppliers. Maharashtra and Karnataka together account for ten of the seventeen tracked projects, making those states the most active hunting grounds at present. Odisha is notable for hosting two high-value projects — both in approvals — from established international promoters.
Contractors active in precision engineering, testing systems and industrial civil works should also watch allied developments in the broader machinery space. Recent activity includes expansion plans by heavy equipment manufacturers; Projects India has separately reported on SDLG India's Rs 1,500 crore manufacturing expansion and Delvitech's planned Bengaluru manufacturing facility, both indicative of continued private-sector appetite in this space.
Frequently asked questions
How much has the Heavy Industry Ministry allocated for automotive testing infrastructure?
The Ministry of Heavy Industries has earmarked Rs 780 crore to upgrade India's automotive testing infrastructure, as reported by ET Manufacturing on 26 September 2026. No further breakdown of scope or beneficiary locations was available from the published report.
Which states have the most machinery projects currently tracked in India?
Maharashtra leads with six tracked machinery projects, followed by Karnataka with four. Odisha and Tamil Nadu each have two projects, while Gujarat and Madhya Pradesh each account for one, based on Projects India's current tracking data.
How many machinery projects in India are at the construction stage?
Of the 17 machinery projects currently tracked by Projects India, four have reached the construction-started stage. Nine remain under approvals, two are on hold, and two have been completed.
