Incentive Scheme, Revamped Tender Clause: Coal Ministry-Led Panel Moots Ways To Spur Manufacturing Of Heavy Earth Machinery


The government is contemplating the implementation of a production-linked incentive (PLI)-style initiative targeted at heavy earth moving machinery and underground mining equipment.

A high-level committee has recommended a five-year incentive scheme to boost domestic manufacturing of this equipment, which is currently largely being imported.

The centre had constituted an interdisciplinary high-level committee headed by the technical director of Coal India Ltd, to provide recommendations on enhancing the domestic manufacturing of heavy earth moving machinery and underground mining equipment, such as high wall miners, standard and low-capacity miners, and related ancillary equipment.

It is projected that coal will remain as the predominant energy source even beyond 2030, thus, the Committee expected a huge requirement of equipment in the next 10 years in the country, both for opencast mines and underground mines and submitted its final report.

Additionally, the committee has also recommended that tender for sourcing mining equipment by domestic coal and mineral mining companies come with a ‘Make-in-India’ clause.

The committee has also recommended the standardisation of equipment to boost domestic manufacturing, catering to captive, commercial mine operators, mine developers and operators, outsourcing contractors, and departmental equipment.