A senior official told the ET, “The incentive scheme of Rs 14,000-16,000 crore for the construction equipment manufacturing industry is under internal consultation.”
According to sector watches, India’s mining and construction equipment industry imports about half of the components from China, Japan, South Korea and Germany. “Consultation on the proposal has begun the consultation on the proposal,” said a construction tool manufacturer.
Indian construction equipment industry, involved in exports, increased by 3% in FY25, Manish Mathur, CEO, Crane, Equipment Manufacturer Ekka. On the domestic front, the industry reported a 1% annual decline in sales during the first quarter of the current financial year.
Mathur said, “The plan to encourage local construction is very high to strengthen India’s construction and mining equipment ecosystem.” Most of the equipment required for India’s ambitious infrastructure development program come from abroad.
To deal with supply chain issues
“In India, large-scale construction equipment such as tunnel-boring machine (TBM), crane, and special rigs availability is still largely dependent on imports from global OEMs (original equipment manufacturers),” Rahul Aggarwal, Chief Financial Officer, Patel Engineering Limited said, especially when the international supply situation can be created, this tight supply can be made, especially when this tight supply can be made
He said that for time-sensitive infrastructure functions, even a low delay in securing equipment can affect the deadline. To manage these pressures, engineering, procurement and construction (EPC) companies have focused on better use of the existing fleet through equipment rotation strategies, especially on high altitude or remote sites. They are also entering close seller partnerships to ensure timely delivery and include risk-sharing mechanisms to protect the risk-sharing mechanism from price and supply fluctuations in contracts.
Raw material
Equipment is an important level of variation in the level of indigenization in categories. Industry is also dependent on imports for some major raw materials such as special steels, an ICRA report states that some types of high -climates, fully manufactured machinery are also imported.
The rating agency estimated that the localization shares of the Indian mining and manufacturing industry could increase by 70–80% in the next five-seven years, which is now less than half. It has the ability to become a market of $ 25 billion in annual revenue, which translates to $ 3 billion in annual forex savings. Imported components include electronic control units (ECUs), sensors and telematics such as hydrolics, undercuria and high-technical components.
“The demand for construction equipment such as fresh push tunnel boring machines for big infrastructure projects like metro and bullet train corridor will increase significantly,” the official said the above official said. He said that mega port projects require large cranes, which are currently being imported.
Better project scheme
“A strong home appliance can reduce the dependence on Aadhaar import and make the project plan more flexible against global value and supply fluctuations. Industry associations have first suggested a dedicated production-link incentive (PLI) scheme for heavy construction equipment, which have been declared for areas such as electronics and automobiles, but it has not yet been expanded for EPC machinery.
Government procurement rules already give preference to make India’s products, yet there are challenges around the technical readiness of local suppliers for highly specific equipment such as TBMS and Crane.
India plans to extend its domestic port capacity to four times 10,000 million tonnes per year (MTPA) by 2047. The country has planned a multi-toll increase in high-speed road corridors, which touches 50,000 kilometers (km) by 2037 and is scaling them over 200,000 km by 2047. New bullet train corridors are also estimated with viability studies. Till the 100th year of independence, there are plans to increase the total length of the metro corridors by about five times 5,000 km.
As a reliable and reliable news source