Coal India plans to phase out import of mining equipment in 6 years
Coal India Limited (CIL), the largest coal miner in India, has outlined a strategic plan to gradually eliminate the need for importing heavy earth-moving machinery (HEMM) and underground mining equipment over the next six years. This initiative, as announced by the Ministry of Coal on November 23, signals a significant shift toward self-sufficiency in acquiring the necessary mining equipment.
Presently, CIL relies on imports for high-capacity equipment, including electric rope shovels, hydraulic shovels, dumpers, crawler dozers, drills, motor graders, front-end loaders, and wheel dozers. The imported equipment is valued at Rs 3,500 crore, and the process incurs additional expenses of Rs 1,000 crore in customs duty.
By phasing out these imports, CIL aims to enhance its self-reliance and reduce reliance on external sources for critical mining equipment. This strategic plan aligns with broader national initiatives to promote domestic manufacturing and reduce dependency on imports across various sectors.
The move is not only expected to contribute to cost savings for CIL but also aligns with broader economic and industrial policies focused on boosting indigenous production. Additionally, it could have positive implications for the Indian heavy machinery manufacturing sector by potentially increasing demand for locally produced mining equipment.
As CIL works to implement this strategic plan, it will be interesting to observe how the shift towards domestically sourced equipment unfolds and how it impacts the mining industry, both in terms of operational efficiency and the broader economic landscape in India.
In a strategic move to reduce dependency on imports and promote domestic manufacturing, Coal India Limited (CIL) has outlined a plan to gradually phase out the importation of heavy earth-moving machinery (HEMM) and underground mining equipment over the next six years. The Ministry of Coal, in a statement, expressed the intention to boost the development of domestically manufactured equipment by encouraging a shift away from imports.
The ministry’s approach involves a gradual reduction in imports to stimulate the growth of domestically manufactured equipment. Notably, the statement highlights that high-capacity machines are already being procured from domestic manufacturers, indicating a positive trend in favor of indigenous production.
As part of broader national initiatives such as ‘Make in India’ and ‘Atmanirbhar Bharat’ (Self-Reliant India), the Ministry of Coal established an interdisciplinary high-level committee chaired by the Director (Technical) of CIL. This committee has now submitted its report to the ministry, outlining recommendations to strengthen the domestic manufacturing ecosystem for HEMM and underground mining equipment. The scope includes various types of equipment, such as high wall miners, standard and low-capacity miners, and associated ancillary equipment.
This initiative aligns with the government’s vision of self-reliance and aims to enhance the manufacturing capabilities within the coal mining sector. By fostering the growth of domestic production, the plan not only seeks to reduce import costs but also contributes to the broader goal of building a self-sufficient and resilient economy. The implementation of these recommendations will be crucial in shaping the future landscape of the mining equipment sector in India.
The exploration of utilizing non-functional and underutilized government infrastructure facilities to support Indian equipment manufacturers is a noteworthy step in fostering domestic manufacturing capabilities in the coal mining sector. This strategic move aligns with efforts to optimize existing resources and infrastructure to bolster the growth of indigenous production.
Given the Indian government’s projections that coal will continue to be the predominant energy source beyond 2030, the committee formed by the Ministry of Coal emphasizes the anticipated significant requirement for equipment in the next decade. This projection includes the need for equipment in both opencast mines and underground mines, signaling a sustained demand for mining machinery in the country.
The emphasis on supporting Indian equipment manufacturers not only contributes to the broader ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives but also aligns with the energy needs of the nation. As coal remains a crucial component of India’s energy mix, the focus on developing and enhancing the domestic manufacturing ecosystem for mining equipment becomes imperative for long-term energy security and self-reliance.
The utilization of non-functional and underutilized government infrastructure further underscores the commitment to optimizing existing resources for economic development. This approach can have positive implications for the overall efficiency and sustainability of the mining sector, contributing to both economic growth and environmental considerations. The success of these initiatives will likely depend on effective implementation and collaboration between government bodies, industry stakeholders, and equipment manufacturers.
The committee formed by the Ministry of Coal, comprising representatives from various government ministries, companies such as SCCL, NLCIL, NTPC, WBPDCL, BEML, Caterpillar, Tata Hitachi, GAINWELL, industry associations, and other stakeholders, has submitted a comprehensive report. The report outlines key recommendations aimed at boosting domestic manufacturing capabilities in the coal mining sector.
Among the recommendations, the committee has suggested the standardization of equipment as a means to enhance domestic manufacturing. This standardization effort is aimed at providing guidelines for captive/commercial mine operators, outsourcing contractors, and departmental equipment. The goal is to align these efforts with Coal India Limited’s (CIL) existing equipment standardization initiatives, fostering a cohesive approach to equipment use.
In addition, the committee has proposed that tender clauses should be designed to encourage the use of indigenous equipment, aligning with the broader ‘Make in India’ mission. This is a strategic move to support and prioritize domestically manufactured equipment in procurement processes.
Furthermore, the committee has put forth a scheme to incentivize manufacturers to design, develop, and produce equipment in India. This incentive program, spanning five years, is aligned with the ‘Make in India’ initiative, aiming to stimulate investment and innovation within the domestic manufacturing sector.
The overarching objective, as stated by the Ministry of Coal, is to ensure widespread use of domestically manufactured equipment in various facets of coal production, transportation, and monitoring. The emphasis is on promoting self-sufficiency without compromising productivity, reflecting a comprehensive strategy to align the coal mining sector with national initiatives for economic growth and self-reliance. The success of these recommendations will depend on effective implementation and collaboration across the industry.
Coal India Limited (CIL) has taken significant steps towards the standardization of guidelines, promoting the use of indigenous equipment in the coal mining sector. The implementation of these guidelines is expected to contribute to a reduction in the breakdown period of imported equipment, which often faces operational challenges due to the unavailability of spare parts. This reduction will be achieved through the manufacturing of major aggregates such as engines, transmission systems, differentials, and motors, with duty restrictions on the necessary parts and materials.
The effort to promote indigenous production aligns with a broader strategy aimed at increasing self-sufficiency and reducing dependency on imported machinery. This strategy extends to the manufacturing of high-capacity Heavy Earth-Moving Machinery (HEMM) and advanced continuous miners capable of remote supervision and real-time position tracking for enhanced efficiency and safety. The focus is not only on procuring such equipment but also on efforts to boost domestic production of these critical mining technologies.
Coal India has already initiated the procurement of high-capacity HEMM and advanced continuous miners, showcasing a commitment to adopting advanced technologies that contribute to increased operational efficiency and safety standards. The ongoing efforts to promote indigenous production of HEMM underscore the company’s dedication to aligning with national initiatives for self-reliance and economic growth.
In addition to these initiatives, the introduction of battery electric vehicles (BEV) load haul dump (LHD) units by CIL represents a move towards more sustainable and cost-effective mining practices. These units not only offer improved ventilation but also contribute to overall cost savings.
The identification of domestic manufacturers for both opencast (OC) and underground (UG) mining equipment, along with technology upgrades and capacity enhancements, reflects a holistic approach towards fostering a robust domestic manufacturing ecosystem within the coal mining sector. These initiatives contribute to the broader national objectives of ‘Make in India’ and ‘Atmanirbhar Bharat’ (Self-Reliant India).
