Context : Need for Policy Push for Green HEMMs
- India urgently needs targeted and well-defined policy interventions to promote cleaner fuel-based Heavy Earth Moving Machinery (HEMM) in the mining sector.
- The findings are from a study by Sustainable Mining Initiative (FIMI) and Deloitte.
Relevance : GS 3 ( Economy & Environment )
Green Mining Vehicles:
- Green mining vehicles, such as those powered by electricity, hybrid systems, or hydrogen, are essential to reduce CO₂ emissions from India’s expanding mining sector and align with its net-zero targets.
- Their high upfront costs remain a key barrier, which can be addressed through targeted incentives like capital subsidies, power subsidies for charging, and production-linked incentives.
Environmental Imperative
- Mining operations are projected to expand significantly by 2035, leading to a sharp rise in fuel consumption and CO₂ emissions.
- Adoption of green HEMMs (electric, hybrid, or hydrogen-powered) is critical to align mining with India’s net-zero and sustainability commitments.
Cost is a Major Barrier
- Green HEMMs are expensive upfront, which discourages adoption.
- The report recommends:
- Capital subsidies.
- Fleet-linked premium rebates.
- Upfront payment relaxations.
- Power subsidies for charging infrastructure.
- Reduced financing costs.
Recommended Policy Instruments
- A coherent policy framework should include:
- Technology-specific incentives.
- Regulatory enablers (like mandatory usage quotas).
- Star rating reforms.
- Production-linked incentives (PLI).
- Infrastructure development (charging/hydrogen stations).
- Demand-side interventions (e.g., procurement mandates).
Industry Outlook
- India’s mining equipment market:
- Revenue in 2024: $6.4 billion.
- Expected to reach $11.34 billion by 2033 at a CAGR of 6.5%.
- As mining production targets rise, thousands of HEMMs will be added, increasing the environmental burden unless cleaner alternatives are adopted.
Need for Urgent Transition
- Without policy support, the current high-carbon path of mining will intensify.
- Proactive transition to clean HEMMs is vital to:
- Reduce emissions.
- Increase operational efficiency.
- Achieve climate goals.
