Railways mulls PLI program for train components
RAILWAYS & METRO RAIL

Railways mulls PLI program for train components

The government has intentions to introduce a production-linked incentive (PLI) scheme for manufacturers of train components. This move is a part of their strategy to entice foreign manufacturing companies and decrease reliance on imports.

It has been conveyed by officials that the specifics of the PLI scheme will be developed with the aid of a consultancy firm. This firm will be chosen through a bidding process within this month.

The chosen consultant will create a compilation of components that are majorly brought in from foreign sources and are utilised in the construction of engines and coaches, commonly referred to as rolling stock.

The government's PLI initiative functions by providing incentives linked to the output for products that are typically brought in from other countries.

The proposed PLI scheme for the railway sector is consistent with the government's objective of streamlining the types of passenger coaches in Indian Railways. They plan to have just two types: Linke Hofmann Busch (LHB) and Vande Bharat. This is a reduction from the current 28 varieties.

The percentage of imported components in LHB coaches, which were introduced in 1999, is roughly 1.5%. In contrast, it is projected to be about 15% in the Vande Bharat trains.

As one of the aforementioned officials explained, the primary focus will be on evaluating the potential for exporting Vande Bharat trains and identifying the necessary steps to localise the components used in these trains.

The domestic production of components will also aid in decreasing the maintenance expenses associated with these coaches.

The official further stated that this PLI program will serve as an incentive to establish new manufacturing facilities or expand existing ones. This expansion would be directed towards the production of coach and engine parts that are presently sourced through imports.

Also read: 
Pune Metro Expands to Ramwadi and Swargate After Successful Inauguration
Cabinet Greenlights 7 rail Projects for Connectivity Boost


The government has intentions to introduce a production-linked incentive (PLI) scheme for manufacturers of train components. This move is a part of their strategy to entice foreign manufacturing companies and decrease reliance on imports. It has been conveyed by officials that the specifics of the PLI scheme will be developed with the aid of a consultancy firm. This firm will be chosen through a bidding process within this month. The chosen consultant will create a compilation of components that are majorly brought in from foreign sources and are utilised in the construction of engines and coaches, commonly referred to as rolling stock. The government's PLI initiative functions by providing incentives linked to the output for products that are typically brought in from other countries. The proposed PLI scheme for the railway sector is consistent with the government's objective of streamlining the types of passenger coaches in Indian Railways. They plan to have just two types: Linke Hofmann Busch (LHB) and Vande Bharat. This is a reduction from the current 28 varieties. The percentage of imported components in LHB coaches, which were introduced in 1999, is roughly 1.5%. In contrast, it is projected to be about 15% in the Vande Bharat trains. As one of the aforementioned officials explained, the primary focus will be on evaluating the potential for exporting Vande Bharat trains and identifying the necessary steps to localise the components used in these trains. The domestic production of components will also aid in decreasing the maintenance expenses associated with these coaches. The official further stated that this PLI program will serve as an incentive to establish new manufacturing facilities or expand existing ones. This expansion would be directed towards the production of coach and engine parts that are presently sourced through imports. Also read:  Pune Metro Expands to Ramwadi and Swargate After Successful InaugurationCabinet Greenlights 7 rail Projects for Connectivity Boost

Next Story
Infrastructure Transport

India To Export Rs 30 Billion Locomotives To Guinea

India will export 150 Evolution Series ES43ACmi locomotives worth over Rs 30 billion to the Republic of Guinea for use at the Simandou iron ore project site, the Ministry of Railways announced on Monday, 16 June 2025.Manufactured at the Railway Locomotive Factory in Marhowrah, Bihar, the locomotives are part of the Make-in-India initiative and will be supplied in phases: 37 units in the current financial year, 82 units next year, and the remaining 31 in the third year.The 4,500-horsepower locomotives feature AC propulsion, regenerative braking, microprocessor-based controls, and modular archit..

Next Story
Infrastructure Urban

Centre Offers Rs 180 Billion for Urban Planning Reforms

In a move to accelerate comprehensive urban planning reforms across India, the central government has announced Rs 180 billion in special capital investment assistance for 2025–26. States and Union Territories (UTs) can apply for these funds to implement measures focused on improving governance, urban finance, land use, and the overall ease of doing business.According to a communication issued by the Ministry of Finance (MoF) on 22 May, funds will be disbursed as per a detailed guideline and on the recommendation of the Ministry of Housing and Urban Affairs. The reforms aim to bring structur..

Next Story
Infrastructure Transport

Lohapul Bridge Work Progresses to Aid Railway Expansion

Construction of a new bridge adjacent to the historic Lohapul railway bridge in Nagpur is progressing steadily, with the existing structure now closed to traffic. The new bridge is crucial for facilitating the third and fourth railway line expansion between Nagpur and Wardha under Central Railway’s jurisdiction.Currently, underground utility shifting and the installation of a new drainage line are underway. The Rs 30 million project is being executed by CS Construction India Pvt. Ltd., under the supervision of Central Railway’s construction department. The initial phase, involving the layi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?