The Ministry of Heavy Industries (MHI) is finalizing a ₹13,000-crore performance-linked incentive scheme aimed at strengthening domestic production of critical construction equipment and reducing reliance on imports. The initiative, currently under inter-ministerial review, could be presented for Cabinet approval in the coming months.
Under the proposal, manufacturers producing high-value machinery—such as tunnel boring machines (TBMs), cranes (tower and crawler), backhoe loaders, ropeway systems, engines, and transmissions—would qualify for benefits if they ensure at least 50% domestic value addition. The performance-based model is designed to spur both higher outputs and technological advancement.
The scheme is part of a broader push to fortify India’s infrastructure machinery ecosystem, aligning with ambitious infrastructure projects like Bharatmala, Sagarmala, Gati Shakti, and dedicated freight corridors. Industry stakeholders expect the incentive to catalyze fresh investments, develop localized supply chains, and elevate the sector’s global competitiveness.
