The government is likely to come up with a Production Linked Incentive (PLI) scheme for underground mining equipment and heavy earth-moving machinery by 2025-26, an official source told FE. The scheme shall be implemented over a period of five years, and would be designed to bolster the largely unexplored under-ground coal mining in the country.
“We have more or less prepared the draft. It now needs to be discussed with the ministries concerned, get finalised, and approved by the government,” the source said.
Currently, Coal India imports high-capacity equipment such as electric rope shovels, hydraulic shovels, dumpers, crawler dozers, drills, motor graders, and front-end loaders wheel dozers to conduct its mining operations. These machines set valued at Rs 3,500 crore, incur additional expenses of Rs 1,000 crore as customs duty, the government had earlier said.
To curb these imports and boost domestic manufacturing, CIL has also devised a strategic plan to phase out imports of these machines gradually over the next six years.
Last year, Coal India chaired an interdisciplinary high-level committee to provide recommendations for bolstering domestic manufacturing of heavy earth moving machinery and underground mining equipment.
The Committee had then recommended the standardization of equipment to boost domestic manufacturing to captive and commercial mine operators, outsourcing contractors and departmental equipment.
The government has projected coal to be the predominant source of energy even beyond 2030 as the demand for power increases and thus expects a huge requirement of equipment for both opencast and underground mines in the next 10 years.
CIL has already started procuring high capacity heavy earth movers and advanced continuous miners, capable of remote supervision, with real-time position tracking for increased efficiency and safety, as per the government.
Domestic manufacturers have been identified for the production of mining equipment for both opencast and underground mining along with upgradation of technology and capacity.
The government had also said that fostering partnerships and collaborative ventures with globally recognized equipment manufacturers is its top priority. The government is now focusing on widespread use of domestically manufactured equipment in coal production, transportation, and monitoring, without compromising productivity.
The move is also expected to reduce the breakdown period of imported equipment, which often remains non-operational due to a lack of spare parts. “This will be achieved by manufacturing major aggregates such as engines, transmission systems, differentials, and motors, with duty restrictions on the required parts and materials,” the government had said.
From: financialexpress
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