Cutting down import reliance on China, South Korea: New Rs 14k–16k crore scheme in works for construction gear; rollout likely next fiscal year

NEW DELHI: The authorities is getting ready a Rs 14,000–16,000 crore scheme to advertise home manufacturing of important construction gear, aiming to cut back India’s heavy reliance on imports and strengthen the infrastructure provide chain. Officials stated the plan, at the moment below inter-ministerial session, may very well be launched in the next fiscal year.“Inter-ministerial consultations are underway on a Rs 14,000-16,000 crore incentive scheme for the construction equipment manufacturing industry,” a senior official advised ET, including that it’s likely to be operational in the next fiscal year.India’s mining and construction gear sector at the moment imports round 50 per cent of its parts by worth, principally from China, Japan, South Korea and Germany. Industry representatives confirmed discussions are ongoing concerning the proposal.“In India, the availability of large-scale construction equipment such as tunnel-boring machines (TBMs), cranes, and specialised rigs is still largely dependent on imports from global OEMs (original equipment manufacturers),” stated Rahul Agarwal, chief monetary officer, Patel Engineering Ltd. “This reliance can at times create tight supply conditions, especially when international demand is high or global supply chains face disruptions.”ICRA famous that localisation varies throughout classes however the sector nonetheless relies upon on imports for crucial inputs corresponding to specialty steels, hydraulics, undercarriages and superior digital parts. The company estimates home manufacturing may attain 70–80 per cent inside 5 to seven years, making a $25 billion annual income market and saving $3 billion in overseas trade every year.“The renewed push for large infrastructure projects like metros and bullet train corridors will significantly increase the demand for construction equipment such as tunnel boring machines,” the senior official stated, including that mega port tasks additionally require giant cranes which can be at the moment imported.Industry leaders argue that with out home capability, main tasks stay uncovered to international provide fluctuations. “A stronger domestic equipment base could reduce reliance on imports and make project planning more resilient against global price and supply fluctuations. Industry associations have previously suggested a dedicated Production-Linked Incentive (PLI) scheme for heavy construction equipment, similar to those announced for sectors like electronics and automobiles, but this has not yet been extended to EPC machinery,” Agarwal added.Despite authorities procurement insurance policies favouring Make in India merchandise, native suppliers nonetheless face technical functionality gaps in specialised gear.India’s infrastructure targets embrace increasing port capability to 10,000 million tonnes every year by 2047, extending metro corridors to five,000 kilometres, and growing 200,000 kilometres of high-speed street corridors. Officials say lowering import dependence for construction gear is crucial to assembly these ambitions.