India Needs Policy Push for Green Fuel Mining Equipment: FIMI-Deloitte Study

Green Mining Vehicles in India Latest News

• A study highlights the need for targeted and well-defined policy interventions to promote the adoption of alternative fuel Heavy Earth Moving Machinery (HEMM) in India’s mining sector. 
• The report emphasizes cleaner vehicle adoption as key to sustainable mining practices.
• 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’s Expanding Mining Sector

• India mines 95 minerals and holds significant reserves. Its mining equipment market, worth USD 6.4 billion in 2024, is projected to grow to USD 11.34 billion by 2033. 
• Surface mining dominates, but underground mining is gaining traction.

Green Mining: A Step Toward Sustainability

• Green mining involves eco-friendly technologies and practices to reduce the environmental impact of mining. 
• It includes using renewable energy, recycling waste, conserving water, and adopting sustainable extraction methods. 
• The aim is to lower the industry’s carbon footprint and encourage responsible mining.

OEMs Responding to the Shift

• Indian Original Equipment Manufacturers (OEMs) are developing electric, LNG-powered, hydrogen-based, and biofuel-compatible HEMMs. 
• While electric and LNG tech are in use, hydrogen models are still under trial.

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Case Study: Surjagarh Iron Ore Mine

• Pioneering Green Mining in India
  • Lloyds Metals and Energy Ltd (LMEL) is transforming the Surjagarh Iron Ore Mine (SIOM) in Maharashtra into India’s first green mine.
  • It is doing so by adopting sustainable technologies and practices across all mining operations.
• Significant CO₂ Emission Reductions
  • SIOM has already reduced carbon emissions by 32,000 tonnes annually. 
  • With a planned transition to renewable energy, this reduction is expected to reach 50,000 tonnes per year.
• End-to-End Decarbonisation Efforts
  • LMEL’s green initiatives span the entire mining process—drilling, loading, hauling, and logistics—guided by a philosophy of innovation, efficiency, and sustainability, aiming for green steel production aligned with India’s Net Zero goals.
• Rapid Electrification of Mining Fleet
  • The mine’s fleet of Bharat Electric Vehicles has grown from 34 to 56, cutting air pollution and reducing dependence on fuel imports. 
  • LMEL aims to deploy over 100 electric vehicles by 2025–26.

Cleaner Fuel in Mining: Key Findings from the SMI-FIMI-Deloitte Study

• India must adopt a coherent and targeted policy framework to promote the use of alternative fuel-based Heavy Earth Moving Machinery (HEMM) in the mining sector. 
• This includes incentives, regulatory enablers, infrastructure support, and demand-side measures.

High Upfront Costs a Major Barrier

• Despite lower lifecycle costs for Battery Electric Vehicles (BEVs) and hybrids, high initial capital remains a deterrent. 
• The report suggests capital subsidies, premium rebates, and relaxed payment terms to encourage early adoption.

Infrastructure & Financing Support Critical

• Recommendations include power subsidies for charging stations, reduced financing costs, and operational incentives to boost early deployment of green HEMMs.

Policy Roadmap: Short, Medium & Long Term

• Short-Term (0–2 years): Pilot BEV-based HEMMs, upfront subsidies, operational cost cuts, and safety standards.
• Medium-Term (2–5 years): Mandate zero-emission HEMMs in new fields, introduce tax benefits, PLI schemes, and skill development programs.
• Long-Term (Beyond 5 years): Structural shift through mandates, green bonds, R&D investment, battery recycling, and innovation ecosystems.

Environmental Imperative

• With rising deployment of HEMMs expected by 2035, associated fuel consumption and CO₂ emissions will increase. 
• Transitioning to electric, hybrid, and hydrogen-powered machines is vital to align mining growth with India’s net-zero goals.

Challenges in Adoption

• Adoption is hindered by high costs, lack of charging/refueling infrastructure, limited availability of technology models, and policy gaps. 
• Cleaner fuel solutions must be supported by robust infrastructure and financial mechanisms.

Green Mining Vehicles in India FAQs

Q1. What does the FIMI-Deloitte study recommend?

Ans. It urges targeted policies to promote alternate fuel-based HEMMs in the mining sector.

Q2. Why are green HEMMs not widely adopted yet?

Ans. High upfront costs and lack of charging/refueling infrastructure hinder adoption.

Q3. What support mechanisms are proposed?

Ans. Capital subsidies, premium rebates, power subsidies, and low-interest financing are recommended.

Q4. What is the Surjagarh Mine’s role in green mining?

Ans. It’s India’s first green mine, with electric fleets and decarbonized operations.

Q5. What is the projected market growth for mining equipment?

Ans. India’s mining equipment market is set to grow from $6.4B (2024) to $11.34B by 2033.

Source: TH | ET | PIB