Government asks heavy equipment manufacturers to produce locally to check imports

The government has urged the heavy equipment manufacturers to produce such machinery in the domestic market, which will help reduce the country’s imports worth over Rs 3,500 crore annually. Currently, Coal India Limited (CIL) alone imports high-capacity equipment such as electric rope shovel, hydraulic shovel etc. worth around Rs 3,500 crore and pays Rs 1,000 crore as custom duty, incurring heavy expense on purchasing machinery through importing, the coal ministry said in a statement on Monday.

The ministry said it is making continuous efforts to develop indigenous manufacturing capabilities in coal mining sector in order to further reduce India’s reliance on import of high-capacity mining equipment and to boost its domestic production.

To achieve this objective, an interdisciplinary high-level committee was formed, members of which include representatives from several ministries, private and public companies, and industry bodies.

At a review meeting on Monday, the ministry held consultations with the stakeholders to suggest ways to boost domestic manufacturing of heavy earth moving machinery (HEMM) and underground mining equipment like high wall (HW) miners, continuous miners, high capacity miners, hydraulic shovels and dumpers.

“It has been planned to phase out import over the period of next five to six years by encouraging and developing domestic equipment manufacturers’ capabilities. Some of the high-capacity machines are presently under trial procurement from domestic manufacturers,” the coal ministry said.

Promotion of indigenous capabilities of equipment shall also ensure reduction in breakdown period of imported equipment which remain under prolonged breakdown due to non-availability of spares, it said.

The ministry said collaborations and joint ventures with internationally reputed equipment manufacturers need to be encouraged.