Empowering India's Mining Sector: A Call for Incentive-Driven Electric Machinery

A groundbreaking report calls for the introduction of a production-linked incentive scheme to invigorate the manufacturing of electric and alternative fuel-based Heavy Earth Moving Machinery (HEMM) in India. The scheme is expected to drive new investments, a move viewed as critical for transforming the country's mining sector.

The report, authored by the Federation of Indian Mineral Industries in collaboration with Deloitte, highlights the limited domestic demand for such machinery. It emphasizes that without assured demand, original equipment manufacturers and suppliers are reluctant to invest in the capital-intensive production of electric HEMMs and their vital components.

In pursuit of decarbonization and to meet the Net Zero emissions target by 2070, the study proposes royalties be reduced for miners using eco-friendly vehicles. The steering committee, comprising industry veterans, underscores the importance of developing indigenous capabilities within this pivotal sector.

(With inputs from agencies.)