India Prepares Rs 14,000–16,000 Crore Scheme to Boost Domestic Construction Equipment Production

New Delhi, Sep 9 (KNN) The Indian government is finalising a substantial incentive package worth Rs 14,000–16,000 crore aimed at strengthening the nation’s domestic manufacture of essential construction machinery.

The move — currently under inter-ministerial review — is expected to be unveiled in the forthcoming financial year.

Through this initiative, the government seeks to reduce reliance on imported machinery—currently accounting for nearly 50% of component value—from nations such as China, Japan, South Korea, and Germany.

Industry experts caution that such dependency often leads to procurement delays during times of heightened global demand or supply chain disruptions.

The proposed scheme will focus on promoting the production of heavy equipment, including tunnel-boring machines (TBMs), large cranes, and specialised rigs, which are critical for India’s ambitious infrastructure expansion.

According to Rahul Agarwal, Chief Financial Officer at Patel Engineering Ltd, the shortage of such equipment is one of the biggest hurdles faced by infrastructure developers today.

If implemented, the scheme could ease supply bottlenecks, ensure faster execution of infrastructure projects, and enhance the country’s resilience against global supply shocks.

It also aligns with the government’s broader “Make in India” and “Atmanirbhar Bharat” objectives, boosting domestic engineering capabilities while creating new opportunities for local manufacturers.

With inter-ministerial deliberations ongoing, the rollout of this scheme in the next fiscal year is being seen as a pivotal step toward strengthening India’s construction sector and reducing long-term dependence on foreign suppliers.

(KNN Bureau)