Latest news with #FederationofIndianMineralIndustries
Time of India
2 days ago
- Automotive
- Time of India
Adoption of cleaner trucks can reduce diesel use in mining by 30%, emissions by 25%: FIMI
New Delhi: Switching to cleaner fuels such as electric vehicles (EVs), liquefied natural gas (LNG), and biodiesel in India's mining sector could reduce emissions by up to 25 per cent and diesel consumption by 30 per cent , according to a study by the Federation of Indian Mineral Industries (FIMI). The study highlights the potential of alternative vehicle technologies in reducing environmental impact in non-coal mineral extraction and handling operations. The report, prepared in collaboration with the Ministry of Mines and the Council on Energy, Environment and Water (CEEW), assesses the adoption of low-emission heavy-duty vehicles (HDVs) for bulk material movement in mining. The recommendations are based on site assessments conducted at 10 non-coal mining locations across Odisha, Rajasthan, Gujarat, and Andhra Pradesh, covering over 12,500 hours of equipment operation. The study suggests a phased adoption of technologies like LNG trucks, hybrid electric retrofits, and off-highway battery electric vehicles (BEVs) over a five-year roadmap. 'Cleaner vehicle adoption in mining offers a clear opportunity to decarbonise the sector while improving air quality and reducing fossil fuel reliance,' said FIMI officials during the report release. In its analysis, FIMI found that diesel is the dominant fuel in mining logistics, contributing significantly to sectoral emissions. Mining contributes 10 per cent of India's industrial CO₂ emissions, with diesel accounting for over 95 per cent of fuel use in load and haul operations. Across major commodities like limestone, iron ore, bauxite, and manganese, bulk movement relies heavily on 60- to 100-tonne heavy-duty trucks, with operating lifecycles extending up to 15 years. 'Targeted replacement of ageing diesel fleets with low-emission vehicles like LNG or electric trucks can reduce tailpipe emissions, cut operational costs, and support India's net-zero goals,' the report noted. Hybrid retrofits, where electric drivetrains are installed in diesel trucks, can serve as an intermediary technology, especially in areas with limited charging infrastructure. The roadmap recommends LNG trucks for long-haul operations and BEVs for short-haul material movement within mines. It also highlights the feasibility of running BEVs and hybrids in round-the-clock operations by leveraging battery swapping and regenerative braking technologies. The study notes that upfront capital costs, infrastructure gaps, and technology readiness are current barriers, but adds that total cost of ownership (TCO) for cleaner vehicles is expected to fall with scale, policy incentives, and growing availability of local manufacturing. It proposes pilot projects to be initiated within a year, with full-scale roll-out of cleaner trucks in the sector by 2029. The adoption model includes a combination of retrofit kits, new OEM vehicles, and public-private infrastructure partnerships for LNG refuelling and EV charging. FIMI also called for inclusion of mining logistics in India's National Electric Mobility Mission and access to FAME or PLI-linked incentives to help fleet operators offset transition costs.
Time of India
2 days ago
- Business
- Time of India
Mining sector seeks subsidy, lower GST to push electric HEMM adoption
The Federation of Indian Mineral Industries ( FIMI ) has urged the government to offer a subsidy of ₹10,000–15,000 per kWh on electric Heavy Earth Moving Machinery (HEMM) , citing steep costs as a key hurdle to adoption, ET reports. 'Electric HEMMs are priced nearly three times higher than diesel models, making them economically unviable for most operators,' the industry body said in a new report. To further ease the transition, FIMI also recommended a uniform 5per cent GST on retrofit kits used to convert diesel trucks to electric. Currently, these kits are taxed by individual components, often attracting GST rates over 18per cent. The proposals aim to support India's push towards cleaner industrial practices and reduce dependence on fossil fuels.
Time of India
2 days ago
- Business
- Time of India
Mining industry seeks Rs 15,000 per kWh subsidy for electric trucks
The domestic mining industry has sought a Rs 10,000 to Rs 15,000 per kWh subsidy on electric Heavy Earth Moving Machinery (HEMM) to encourage their use. According to a report by the Federation of Indian Mineral Industries (FIMI), the upfront costs of electric trucks is a major entry barrier to their adoption. 'Electric trucks and other HEMMs are currently priced at nearly three times (3x) that of their diesel counterparts. Such price disparity discourages potential buyers,' a FIMI report said. The industry body report also recommended a 5% Goods and Services Tax rate on retrofit kits used to convert diesel trucks to electric. 'Retrofit kits currently do not have a dedicated classification. Instead, the individual components of these kits are taxed separately often at rates exceeding 18% which undermines the economic viability of retrofitting,' the report said.
The Hindu
3 days ago
- Business
- The Hindu
Targeted policy interventions must to push green fuel vehicles in mining: study
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.
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Business Standard
3 days ago
- Business
- Business Standard
Dedicated PLI scheme for green HEMMs vital to boost investment: Report
The scheme should prioritise high-value components with significant import dependence and offer graded incentives linked to value addition and indigenisation levels Press Trust of India New Delhi There is need for a dedicated production-linked incentive scheme for manufacturing of electric and other alternate fuel-based Heavy Earth Moving Machinery (HEMMs) as it will help unlock new investment, says a report. India currently has limited domestic demand for electric and alternate fuel HEMMs. In the absence of stable domestic demand, original equipment manufacturers, suppliers are unlikely to make the capital-intensive investments needed to manufacture electric and other alternate fuel HEMMs and localise key components, the report by the apex mining body said. There was a "need for a dedicated Production-Linked Incentive (PLI) scheme for electric and alternate fuel-based HEMMs and their critical sub-systems -- in line with existing PLI schemes for auto and auto components," the Federation of Indian Mineral Industries (FIMI) said in a report. The scheme should prioritise high-value components with significant import dependence and offer graded incentives linked to value addition and indigenisation levels. "A PLI scheme would help unlock new investment, generate employment across manufacturing, engineering, and R&D functions, and accelerate the development of indigenous capabilities in the electric and alternate fuel HEMM segment," the report titled 'Study on Adoption of Cleaner Vehicles for Indian Mining Industry' said. The study was conducted in collaboration with Deloitte and developed under the guidance of a Steering Committee comprising senior mining professionals from industry and original equipment manufacturers (OEMs). To encourage the adoption of environmentally sustainable practices in the mining sector, it was proposed that royalty concessions be extended to lessees who commit to using alternate fuel-based vehicles for their mining and associated operations. India is striving to meet its commitment to achieve Net Zero emissions by 2070, with mining identified as a priority sector for decarbonisation. HEMMs, central to mining operations, represent a significant share of the sector's carbon footprint. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
