Indian Economy News

Government is aiming to curb high-capacity mining equipment imports and boost domestic production

According to the Ministry of Coal, the government is taking steps to boost domestic manufacturing to slash reliance on imported high-capacity mining equipment.

The ministry has assembled a multi-disciplinary high-level committee with representation from several governmental divisions and important business actors like Bharat Earth Movers Limited (BEML), Caterpillar, and Tata Hitachi in order to strengthen the goals of Aatmanirbhar Bharat, which includes encouraging "Make in India." The committee is led by the Director (Technical) of Coal India Limited (CIL) and aims to promote the domestic manufacturing of heavy earth moving machines (HEMM) and other underground mining equipment.

CIL, which is currently importing machinery costing around US$ 427.3 million (Rs. 3,500 crore) and paying US$ 122.1 million (Rs. 1,000 crore) in customs charges, hopes to gain from reduced reliance on imports. The corporation has laid out a strategy to gradually reduce imports over the course of a decade while enhancing the skills of domestic producers. In addition, CIL is aiming to standardise mining machinery to make it easier to use locally made equipment for coal extraction, transportation, and monitoring.

According to the Ministry, encouraging domestic manufacture not only supports India's industrial sector but also adheres to the principles of Aatmanirbhar Bharat and the "Make in India" campaign. Increased HEMM production is anticipated to boost economic growth while improving equipment reliability by shortening the breakdown period associated with imported machinery.

Furthermore, the ministry also approved the investigation of international partnerships and joint ventures with renowned equipment producers as well as the use of abandoned government infrastructure facilities in support of the "Make in India" programmes.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.