FIMI and Deloitte Release Report on Cleaner Vehicle Adoption in Indian Mining Sector

At the recently held Sustainable Mining Summit in Bhubaneswar, the Federation of Indian Mineral Industries (FIMI) unveiled a comprehensive report titled “Study on Adoption of Cleaner Vehicles for Indian Mining Industry”. Developed in collaboration with Deloitte, the report outlines a strategic roadmap for transitioning to cleaner fuel-based vehicles in the mining sector.

The report was released by Shri Sampad Chandra Swain, Hon’ble Minister of Industries & Skill Development, Technical Education, Government of Odisha, on the inaugural day of the summit. It comes at a time when India is intensifying efforts to meet its 2070 Net Zero commitment, with mining identified as a key sector for emission reduction.

Focus on Heavy Earth Moving Machinery (HEMM)

The study places particular emphasis on Heavy Earth Moving Machinery (HEMM), a major contributor to emissions in mining operations. Through consultations with mining operators and original equipment manufacturers (OEMs), the report evaluates current challenges and the potential of alternative fuels including electric, hybrid, hydrogen, biofuels, and LNG.

Key Findings from Industry Consultations

Mining Operators’ Perspectives:

  • Continued reliance on imported HEMMs due to advantages in performance, technology, and lifecycle efficiency.
  • Main barriers to adopting cleaner alternatives include high upfront costs, insufficient charging/refueling infrastructure, and lack of supportive policies.

OEM and Distributor Insights:

  • Hybrid Electric Vehicles (HEVs) are currently seen as the most viable option.
  • Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs) face infrastructure and cost challenges.
  • Biofuels and hydrogen-fueled internal combustion engines are in early stages of development.
  • Deployment concerns include lack of proven performance in mining environments and uncertain market demand.

Recommendations and Strategic Roadmap

The report proposes a phased adoption approach, with recommendations such as:

  • Introduction of fiscal and non-fiscal incentives for early adopters.
  • Establishing a green financing ecosystem to support procurement of clean HEMMs.
  • Development of fueling and charging infrastructure in mining clusters.
  • Strengthening domestic OEM capabilities and service ecosystems.
  • Awareness and training programs to build capacity within the mining workforce.

Policy Engagement and Next Steps

The report has been shared with key government bodies including the Ministry of Mines, Ministry of Coal, Ministry of Steel, Ministry of Heavy Industries, Ministry of Environment, Forest and Climate Change (MOEFCC), Prime Minister’s Office, and NITI Aayog. It aims to inform policy frameworks and catalyze collaborative industry efforts for sustainable mining practices.

By addressing existing infrastructure, financing, and policy gaps, the study provides a practical roadmap for transitioning to cleaner mining operations, aligned with India’s broader climate goals.

Tags: Clean Technology, Decarbonisation, Green Mobility, Mining, Sustainable
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