A new PLI in the pipeline for heavy equipment

The construction equipment industry is expected to reach $25 billion by the end of 2030, according to the Indian Construction Equipment Manufacturers’ Association (ICEMA). Industry predicts that the PLI plan for the construction equipment sector will facilitate $4 billion in short-term domestic and foreign investments and $2.9 billion in long-term forex savings through import substitution. By 2030, it would also enable $3 billion in exports and 3.2 million more jobs.

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New Delhi, September 19: There may soon be a new PLI scheme to support the manufacturing of heavy machineries. According to news reports, the central government is mulling over an idea to roll out a production-linked incentive (PLI) scheme for heavy machineries used in mining and construction.

The heavy industries ministry is presently looking for industry opinion on product coverage, implementation, and incentive amounts. The scale of the scheme could range from Rs. 8,000 crores to Rs. 12,000 crores, however, the final figures are yet to be decided. The heavy industries ministry is expected to approach the commerce and finance ministries for their approval, once the PLI scheme is finalised. After receiving cabinet approval, it hopes to operationalize the programme this fiscal year or early in the following fiscal year, with incentives starting to flow in 2025–26 and lasting until 2029–30.

The government began implementing a number of PLI programmes beginning in April 2020 as part of its “Atmanirbhar Bharat” and “Make in India” initiatives to increase exports, boost the competitiveness of Indian manufacturers abroad, lessen reliance on imports, and create jobs. The programmes offer businesses incentives for increased sales of goods produced in domestic facilities. The PLI programme for heavy machineries is anticipated to keep the nation’s infrastructure expansion momentum going.

Backhoe loaders, excavators, super loaders, blast-hole drills, bucket-wheel excavators, dozers, highway miners, and heavy mining vehicles are among the machinery targeted by the scheme. A small portion of these are produced in India, however, the need is growing.