India to invest $9.6 billion to reduce dependence on China

As India is one of the largest countries in the world using tunnel boring machines for the development of its transport and underground infrastructure, it is now making a massive investment of $9.6 billion to reduce dependence on foreign suppliers such as China. According to an NDTV report, India's state-owned defence and engineering company BEML is now planning to develop tunnel boring machines (TBM) to reduce the need for foreign suppliers.

According to Shantanu Roy, Chairman and Managing Director of BEML, the company will initially focus on manufacturing small-sized tunnel boring machines. These machines will primarily be used in metro rail, hydroelectric, irrigation, and water projects. Once successful in the production of these small machines, the company will move towards manufacturing larger-sized equipment.

China has tightened export controls on certain categories of construction equipment, due to which India has clearly felt its dependence on foreign suppliers. However, Shantanu Roy clarified that BEML's plans are already in motion. He stated, "We have done our homework and we are ready with the plan."

The company's main objective is to develop its own unique technology instead of merely assembling foreign kits. Roy further added, "It will be an indigenous technology and its intellectual property (IP) will be Indian."

BEML is also engaging the services of a global consultant to assist in this endeavour so that complete self-reliance can be achieved in the future. The company's plan is to start with machines having a diameter of 3.5 metres to 6.5 metres, instead of starting with extremely complex and massive machines. Machines of this size are generally used in urban transit and utility projects and hold a small share in the market.

Comparatively, the diameter of the tunnel boring machines excavating the Mumbai section of India's first bullet train line is approximately 13.6 metres. These machines were manufactured by the German company Herrenknecht AG at its Chinese plant.

India has been repeatedly attempting to reduce dependence on the Chinese supply chain in strategically important sectors. However, developing a local manufacturing ecosystem is a more time-consuming process than merely creating assembly capacity. The report also mentions the recent example of rare-earth magnets, which shows that challenges remain in the local manufacturing sector. It remains to be seen whether this ambition will transform into a commercially viable local industry.

BEML is an Indian state-owned defence and engineering company that manufactures military and mining vehicles as well as rail cars.