Indian Railways planning PLI for train components to curb imports

A railways official said that the PLI programme will give incentives to develop new manufacturing units or expand the existing ones

In order to cut dependence on imports, the Centre is looking at introducing a production-linked incentive (PLI) scheme for train component manufacturers, according to a report by The Economic Times (ET).

Officials were quoted as saying to ET that a consultancy firm will be selected through a bidding process this month to assist in shaping the details of the scheme. The firm will make a list of components that are used in manufacturing coaches and engines.

The development is in line with the Centre's plan of having only two types of passenger coaches in Indian Railways: Linke Hofmann Busch (LHB) and Vande Bharat.

Under the PLI scheme, the centre subsidises firms to manufacture "desirable" end products, components or assemblies. Various ministries prepare lists of items to indigenise. The import component in the Vande Bharat trains is estimated to be about 15 per cent, and in the LHB coaches, it is around 1.5 per cent.

An official stated that importance would be placed on examining the steps required to localise the manufacturing of train components and the export potential of Vande Bharat trains. The PLI programme will give incentives to develop new manufacturing units or expand the existing ones.

The country continues to import important rolling stock components, such as wheels and axles. China's TZ (Taizhong) Hong Kong International Ltd was awarded the railway's contract for making 33,000 LHB wheels in April. Recently, the railways gave a procurement order for 1.54 million forged wheels that are made in the country to reduce dependence on imports.

Another official was quoted as saying that the demand for Vande Bharat and LHB train components will continue to rise. By 2047, 4,500 Vande Bharat trains are estimated to run in the country.