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 Energy

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Next Story
Infrastructure Urban

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Next Story
Infrastructure Energy

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?