India requires targeted and well-defined policy interventions to drive the adoption of alternative fuel Heavy Earth Moving Machinery (HEMM) in mining operations, according to the “Study on Adoption of Cleaner Vehicles for the Indian Mining Industry”.
The study was undertaken by the Sustainable Mining Initiative (SMI), a division of the Federation of Indian Mineral Industries (FIMI) in association with Deloitte which has prepared the detailed report.
“India requires a coherent policy framework that integrates technology-specific incentives, regulatory enablers, infrastructure development, and demand-side interventions,” as per the report.
Emphasising that Green HEMMs were significantly more expensive upfront compared with conventional equipment, even though certain alternative fuel technologies like Battery Electric Vehicles (BEV) and hybrid systems offer better total cost of ownership (TCO) over their lifecycle, it said the high initial capital outlay remained a major deterrent.
“To address this, targeted incentives such as capital subsidies, premium rebates linked to fleet size, and upfront payment relaxations are critical to de-risk adoption,” it said.
“Power subsidies for charging infrastructure and reduced financing costs can further accelerate early deployment. Over time, star rating reforms, production-linked incentives, and mandatory adoption clauses can drive scale, lower costs, and mainstream cleaner HEMM usage across the sector,” it said.
“These coordinated efforts will provide sustained policy and infrastructure support for fully decarbonized HEMM sector,” it added.
Stating that by 2035, the number of HEMMs would see a significant increase across all categories, the report said, “This significant growth in HEMM deployment, driven by increased production targets and supportive government initiatives, also brings with it a sharp rise in fuel consumption and associated CO₂ emissions.”
As thousands of high-capacity machines are added to mining fleets, the environmental footprint of operations would expand substantially, it pointed out.
“This underscores the urgent need to transition toward alternate-fuel HEMMs—such as those powered by electricity, hybrid systems, or hydrogen,” the report emphasised.
“Proactive adoption of cleaner technologies is critical to ensuring that the sector’s growth aligns with India’s sustainability and net-zero commitments. It is therefore paramount for the country that key gaps in adoption of cleaner fuel HEMMs must be addressed through targeted interventions,” it stated.
Highlighting the gaps and challenges the report stated that the shift towards adoption of cleaner fuels in HEMMs presented a complex set of challenges across multiple dimensions such as commercial viability, the availability and readiness of supporting infrastructure, technical limitations, and gaps in existing policy frameworks.
Based on the stakeholder feedback and international learnings, India’s roadmap for cleaner vehicle for HEMMs has been developed across three timeframes.
In the short term (0–2 years), the focus should be on pilots for Battery Electric Vehicle (BEV) based HEMMs—for establishing proven use cases, offering upfront subsidies on purchase of e-trucks, capital subsidies on setting up charging stations, operational cost reduction, safety standards and financial mechanisms to support early adoption of e-trucks as well as other alternate fuel based HEMMs.
The medium term (2–5 years) target should mandate adoption of zero emission equipment in new mining fields, taxation, Product-linked Incentives (PLI) and skill development to encourage cleaner technologies and build a workforce capable of managing and maintaining advanced zero-emission and other fuel technologies in the mining sector.
“The long-term horizon (5 years) envisions structural transformation through mandates for green HEMM adoption, green mining bonds, and hedging instruments for de-risking investments. It also includes developing R&D ecosystems, battery recycling infrastructure, research & development and Innovation —laying the foundation for self-reliant future,” the report said.
India produces 95 different minerals, comprising 4 fuel minerals, 10 metallic minerals, 27 non-metallic minerals, 3 atomic minerals, and 51 minor minerals.
The country holds notable reserves of iron ore, bauxite, chromium, manganese ore, limestone, baryte, rare earths, and mineral salts.
With the mining sector facing increasing pressure to reduce its environmental impact there has been emphasis on adoption of alternate fuel heavy equipment, including electric, hydrogen-powered, and hybrid machines.
According to industry analysis, India’s mining equipment market generated USD 6.4 Billion in revenue in 2024 and is projected to grow at a CAGR of 6.5%, reaching USD 11.34 Billion by 2033, as per the report.
This growth is underpinned by ongoing infrastructure expansion, increasing mineral production, and a policy shift favouring mechanization across both major and minor mineral operations, it said.
Surface mining equipment was the largest revenue-generating segment in 2024, accounting for approximately 40% share of the total market. These include excavators, dozers, wheel loaders, crushers, and tippers—machines that form the operational backbone of open-cast mining and quarrying across the country.
While surface mining remains the dominant extraction method in India, the underground mining methods has seen the higher growth potential driven by the shift towards underground mining by major mining companies.
Indian OEMs have undertaken measures to develop and supply alternate fuel HEMMs in response to the growing demand for cleaner and more sustainable mining equipment.
Deployments are currently focused on electric and LNG-powered equipment at a limited scale, while hydrogen-based technologies remain in the development stage, with ongoing trials and testing.
Additionally, OEMs are designing HEMMs compatible with biofuels to support the reduction of GHG emissions.
“The adoption of alternate fuels in HEMM is essential for decarbonising the mining sector. However, each fuel technology presents distinct challenges in terms of high upfront costs, lack of charging and refueling infrastructure, technology presents distinct challenges in terms of high upfront costs, lack of charging and refuelling infrastructure, limited models available in the market,” the report highlighted.
“To enable large-scale deployment of alternate fuels in mining, addressing cross-cutting challenges across alternate fuel technologies in mining requires a coordinated strategy focused on infrastructure expansion,” it stated.
Published – June 10, 2025 07:55 pm IST
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