Indian Railways to launch PLI scheme to lower import dependence
Indian Railways is exploring a production-linked incentive (PLI) scheme aimed at boosting domestic manufacturing of brakes, wheels, and transmission systems for LHB and Vande Bharat train sets. The primary objective of this initiative is to reduce dependence on imports, particularly from China and Europe. The Railway Board is seeking a comprehensive study to significantly lower imports by the end of the fiscal year 2023-24. The PLI scheme is expected to range between Rs. 800-1,200 crore, distributed over a three-year period.
Pandemic disrupted Railways' import reduction plans
The COVID-19 pandemic disrupted Indian Railways' plans to decrease its dependency on imports. Before the outbreak, the organization had collaborated with public sector utilities to devise a plan, but it was ultimately abandoned due to the pandemic's impact. Now, the Railway Board is aiming for a more extensive study to reduce imports by 2023-24.
Incentives target key components for train sets
The PLI scheme will specifically target axles, brake equipment, and wheels for LHB and Vande Bharat coaches. The Centre plans to offer output-linked incentives for products that are typically imported. Approximately Rs. 200-300 crore each will be required to enhance the manufacturing of the above-mentioned components. An additional Rs. 200-300 crore will be needed for locomotives and track machines. Indian Railways has already taken several steps in recent years to reduce imports and promote domestic manufacturing.
