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- Ministry of Coal aims to reduce India’s reliance on imported mining equipment and boost domestic production.
- An interdisciplinary high-level committee has been formed to suggest ways to promote domestic manufacturing of heavy earth-moving machinery and underground mining equipment.
- Standardization of mining equipment and trial procurement from domestic manufacturers are being undertaken to support domestic manufacturing.
- Collaboration with international manufacturers and utilization of non-functional government infrastructure facilities are being explored to further enhance domestic manufacturing capabilities.
India, being one of the largest consumers of coal globally, heavily relies on the import of high-capacity mining equipment such as electric rope shovels, hydraulic shovels, dumpers, crawler dozers, drills, motor graders, front-end loaders, wheel dozers, continuous miners, and more. The cost of importing this equipment amounts to approximately Rs. 3500 Crores, with an additional Rs. 1000 Crores spent on customs duties. To address this dependence on imports and to promote self-sufficiency, the Ministry of Coal has taken significant steps.
Objective: Reducing India’s reliance on imported mining equipment
The primary objective is to decrease the country’s reliance on imported mining equipment, which incurs substantial expenses and hinders the growth of domestic manufacturing capabilities. To achieve this objective, the Ministry of Coal has formed an interdisciplinary high-level committee consisting of representatives from the Ministry of Heavy Industries, Ministry of Railways, SCCL, NLCIL, NTPC, WBPDCL, BEML, Caterpillar, Tata Hitachi, GAINWELL, and various other stakeholders. The committee aims to suggest ways to boost domestic manufacturing of heavy earth-moving machinery (HEMM) and underground mining equipment.
Formation of the high-level committee
Under the leadership of the Director (Technical) CIL, the high-level committee has been actively working to find methods and mechanisms to promote domestic manufacturing of HEMM and other underground equipment. The committee has already submitted its draft report, which has been reviewed by the Secretary of the Ministry of Coal and further deliberated upon at the ministry level. These efforts signify the government’s commitment to reducing the country’s reliance on imports and promoting indigenous manufacturing capabilities.
Efforts to boost domestic manufacturing
The Ministry of Coal recognizes the significance of boosting domestic manufacturing capabilities in the coal mining sector. Currently, Coal India Limited (CIL) imports various high-capacity mining equipment worth approximately Rs. 3500 Crores. This heavy reliance on imports not only incurs significant expenses but also hampers the growth of domestic manufacturers. To address this issue, CIL has planned to phase out imports over the next five to six years.
Standardization of mining equipment
In order to ensure that domestic manufactured equipment is effectively utilized in coal production, transportation, and monitoring, CIL has undertaken extensive standardization of mining equipment. The aim is to deploy standardized equipment wherever possible without affecting productivity. CIL has also issued standardization guidelines to promote the “Make in India” initiative. This move not only supports domestic manufacturing but also reduces the breakdown period of imported equipment due to the availability of spares.
Benefits of promoting domestic manufacturing
Promoting domestic manufacturing of heavy earth-moving machinery and underground mining equipment brings several benefits. Firstly, it reduces the financial burden of importing high-capacity equipment, saving significant expenses for the coal industry. Secondly, it fosters the growth of the domestic manufacturing sector, generating employment opportunities and contributing to the country’s economic development. Additionally, domestic manufacturing ensures a steady supply of spare parts and reduces the breakdown period of equipment, ultimately increasing productivity in the coal mining sector.
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