Coal Ministry asks heavy equipment manufacturers to produce locally to reduce imports

New Delhi: 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 expenses on purchasing machinery through importing, the coal ministry said in a statement on Monday.

Coal Ministry is making continuous efforts to develop indigenous manufacturing capabilities

The ministry said that it is making continuous efforts to develop indigenous manufacturing capabilities in the coal mining sector in order to further reduce India's reliance on the 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.

Ministry held consultations with stakeholders to boost domestic manufacturing

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 the 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.

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