India is set to approve a $1.2-billion incentive scheme for the making of high-value, technologically sophisticated construction and infrastructure equipment, two government sources said, in a bid to reduce dependence on China for critical machinery. The scheme, which is expected to be finalised soon, aims to draw $1.8 billion in fresh investment by offering incentives over seven years to domestic manufacturers of equipment including tunnel boring machines, ‌fire-fighting equipment and ⁠elevators used ⁠in high-rise buildings, one of two the sources said. India remains heavily dependent on imported tunnel boring machines, with China among ​the key suppliers of tunnelling and other boring equipment used in metro rail and highway construction, underscoring the ​country's long-standing struggle to build domestic manufacturing capacity. The new scheme has been designed ⁠after assessing ‌the incentives required to make local production viable against the country's existing import ​dependence, the sources ​said. The incentive plan could benefit state-run BEML, which has plans to domestically ⁠manufacture tunnel boring machines, along with other equipment makers including Larsen and Toubro and Johnson Lifts The plan would also include targets for local ​value addition for machines that are presently fully imported. A final decision on the incentive plan is expected soon, both the sources said. India's federal heavy industries ministry and finance ministry did not respond to a request for comment. India's construction and infrastructure equipment market, valued at 1 trillion rupees ($10.5 billion), is set to expand as the country accelerates spending on roads, metros, airports and other infrastructure. (ICE NEW DELHI)

Fonte notizia: Economic Times