Cabinet to take up scheme for manufacturing of construction gear

New Delhi: The Union Cabinet is expected to soon consider an incentive scheme for construction and infrastructure equipment manufacturing, a senior government official said. The scheme was announced in the 2026-27 budget and approvals are expected by August-end.

Sector executives said growing infrastructure development across ports, high-speed rail and highways is driving demand for specialised equipment such as tunnel boring machines and large cranes.

"Inter-ministerial discussions are complete and the scheme is ready for union cabinet approval," the official told ET, adding that consultations with industry on the guidelines and implementation framework would begin after the Cabinet clears the proposal.


The budget proposed a scheme for the enhancement of construction and infrastructure equipment manufacturing to strengthen domestic production of high-value, technologically advanced equipment.

"This can range from lifts in a multi-story apartment, fire-fighting equipment, large and small, to tunnel-boring equipment for building metros and high-altitude roads," finance minister Nirmala Sitharaman had said.

"India's share of global mining construction equipment industry size has doubled-from around 2.5% to 4%-and is expected to rise to about 6.5% over the next five years, placing it among the world's fastest-growing major markets," according to a report by Boston Consulting Group (BCG) and CII. The growth is being driven by the government's infrastructure push.

"Roads pull earthmoving and paving fleets, railways pull TBMs, piling rigs and viaduct cranes, and ports and airports pull specialised handling cranes," the BCG-CII report said.