PLI Scheme For Train Component Manufacturers On Cards

New Delhi, Aug 17 (KNN) The central government is considering to introduce a production-linked incentive (PLI) scheme for train component manufacturers.

With this it intends to reduce reliance on imports and attract foreign manufacturing companies.

A bidding process is scheduled this month to select a consultancy firm for shaping the details of the PLI scheme.

The chosen consultant will curate a comprehensive list of components essential for producing engines and coaches, also known as rolling stock.

The proposed PLI scheme aligns with the government’s objective of streamlining passenger coach types within Indian Railways, transitioning fr0m the current 28 variants to only two: Linke Hofmann Busch (LHB) and Vande Bharat.

Approximately 1.5% of components in LHB coaches are imported, while Vande Bharat trains rely on imports for around 15 percent of their components.

The focus will be on assessing the export potential of Vande Bharat trains and devising strategies to facilitate component localization.

The PLI initiative aims to encourage the establishment of new manufacturing units and the expansion of existing ones, particularly for coach and engine parts that are typically imported.

This initiative comes amid the escalating demand for Vande Bharat and LHB components, with projections indicating approximately 4,500 VB trains operating in India by 2047.  (KNN Bureau)