NEW DELHI : State-owned Coal India Ltd, which imported high-capacity mining equipment worth ₹3,500 crore in the past five years, has drawn up a plan to eliminate such inbound shipments over the next six years, the government said on Thursday.
The move is aimed at encouraging and developing domestically manufactured equipment, it said.
“Currently, Coal India Ltd (CIL) imports high-capacity equipment, such as electric rope shovels, hydraulic shovels, dumpers, graters, drills, motor graders, and wheel dozer front loaders, valued at ₹3,500 crore, incurring additional expenditure of ₹1,000 crore in customs duty,” the coal ministry said in a statement.
These equipments have been imported for the last five years.
To curb these imports and boost domestic manufacturing, CIL has come up with a strategy to phase out imports gradually over the next six years, it said.
In particular, high capacity machines are already being sourced from domestic manufacturers.
With a strong commitment to reduce the country’s dependence on imports and promote domestic production, the Center is taking steps to foster indigenous manufacturing capabilities within the coal mining sector.
“In pursuance of this objective, an inter-departmental high-level committee under the chairmanship of Director (Technical), CIL, has been constituted to provide recommendations to strengthen domestic manufacturing of Heavy Earth Moving Machinery (HEMM) and underground mining equipment, including High Wall Miners. , standard and low-capacity miners, and related auxiliary equipment,” the statement said.
It is predicted that coal will remain the dominant source of energy even after 2030, thus, the panel expected a huge demand for equipment in the next 10 years in the country, for open-air and underground mines and presented its final report.
The panel consisted of representatives of the Ministries of Heavy Industries and Railways and various stakeholders among others.
Coal India accounts for over 80% of domestic coal production.
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Updated: 23 Nov 2023, 18:08 IST