According to reports, the government is looking for a production-linked incentives (PLI) program for train component makers to attract foreign manufacturers and reduce import dependency.

The government plans to hold bidding towards the end of August to select a consultancy firm to work on the PLI scheme. The firm will prepare a list of all the components needed in building engines and coaches, termed rolling stock, which is majorly imported.

The Indian Railways is one of the world’s largest transporters with 28 types of passenger coaches; however, the government plans to reduce them to two: Vande Bharat and Linke Hofmann Busch (LHB).

The maintenance of these coaches would be more cost-effective if all the components were manufactured in India.

The Vande Bharat train has 15% imported components, whereas the Linke Hofmann Busch (LHB) has 1.5%.

The PLI scheme will help set up new manufacturing units or expand the existing ones by setting up incentive schemes which will help supply coach and engine parts that are otherwise imported.