CIL Unveils Plan to Phase Out Imported Mining Equipment, Boost Domestic Manufacturing

24 Nov 2023 , 12:30 PM

CIL, a state-owned entity, plans to phase out Rs 3,500 crore worth of imported high-capacity mining equipment over the next six years. The move is geared towards promoting domestic manufacturing of mining equipment and reducing dependence on imports.

Current imports include electric rope shovels, hydraulic shovels, dumpers, and more, incurring an additional Rs 1,000 crore in customs duty over the past five years. CIL’s strategy involves a gradual six-year reduction in imports, emphasizing the procurement of high-capacity machines from domestic sources.

Already, CIL is sourcing high-capacity machines from local manufacturers, aligning with its goal of minimizing reliance on imports.

A high-level committee, chaired by CIL’s Director (Technical), has been formed to recommend measures for enhancing domestic manufacturing in the mining sector. Anticipating significant equipment demand beyond 2030, the committee foresees a crucial role in meeting the needs for opencast and underground mines.

The committee includes representatives from the Ministries of Heavy Industries and Railways, fostering a collaborative approach to strengthen indigenous manufacturing. As a major contributor, Coal India accounts for over 80 percent of domestic coal output, amplifying the impact of its strategic shift toward domestic manufacturing.

For feedback and suggestions, write to us at [e-mail]