PLI Scheme for Electric HEMMs: Key to New Investment

New Delhi, Jun 10 (PTI) There is need for a dedicated production-linked incentive scheme for manufacturing of electric and other alternate fuel-based Heavy Earth Moving Machinery (HEMMs) as it will help unlock new investment, says a report.

India currently has limited domestic demand for electric and alternate fuel HEMMs.

In the absence of stable domestic demand, original equipment manufacturers, suppliers are unlikely to make the capital-intensive investments needed to manufacture electric and other alternate fuel HEMMs and localise key components, the report by the apex mining body said.

There was a "need for a dedicated Production-Linked Incentive (PLI) scheme for electric and alternate fuel-based HEMMs and their critical sub-systems -- in line with existing PLI schemes for auto and auto components," the Federation of Indian Mineral Industries (FIMI) said in a report.

The scheme should prioritise high-value components with significant import dependence and offer graded incentives linked to value addition and indigenisation levels.

"A PLI scheme would help unlock new investment, generate employment across manufacturing, engineering, and R&D functions, and accelerate the development of indigenous capabilities in the electric and alternate fuel HEMM segment," the report titled 'Study on Adoption of Cleaner Vehicles for Indian Mining Industry' said.

The study was conducted in collaboration with Deloitte and developed under the guidance of a Steering Committee comprising senior mining professionals from industry and original equipment manufacturers (OEMs).

To encourage the adoption of environmentally sustainable practices in the mining sector, it was proposed that royalty concessions be extended to lessees who commit to using alternate fuel-based vehicles for their mining and associated operations.

India is striving to meet its commitment to achieve Net Zero emissions by 2070, with mining identified as a priority sector for decarbonisation.

HEMMs, central to mining operations, represent a significant share of the sector's carbon footprint.