Metals & Mining News

Panel for incentivising local production of mining gear

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NEW DELHI: An inter-disciplinary committee, comprising officials from Coal India Ltd, railway ministry, heavy industries ministry, NLC India Ltd, NTPC Ltd, among other stakeholders, has recommended encouraging domestic manufacturing of mining equipment through incentive schemes, standardisation and specific tendering clauses. This gains focus as coal is expected to remain as the predominant energy source beyond 2030 as well. The committee expects a huge requirement of equipment in the next 10 years.

The committee also had representatives from Singareni Collieries Company Ltd, West Bengal Power Development Corporation Ltd, Bharat Earth Movers Ltd, Caterpillar India Pvt Ltd, Tata Hitachi, Gainwell India and industry associations, according to a government release.

The committee has suggested the standardisation of equipment in line with Coal India’s existing equipment standardisation effort, the government said.

It has also said that tender clauses should promote the use of indigenous equipment. A suggestion to incentivize manufacturers for designing, developing and making equipment in India for five years under the make in India initiative, was made.

Coal India currently imports high-capacity equipment like electric rope shovels, hydraulic shovels, dumpers, crawler dozers, and others amounting to ?3,500 crore, with an additional expense of ?1,000 crore in customs duty.

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