Cement Manufacturers Association (CMA)

38 Electric Vehicle Implementation in the Indian Mining Industry: Transformation During Energy Crisis, Bottlenecks and Policy Requirements Mrinmoy Chakraborty M.Sc Applied Geology, PG Diploma in Environmental Law (NLISU) | Field: Mining Engineering & Sustainability 06 Abstract The Indian mining sector stands at a critical inflection point as it transitions from diesel- powered equipment to battery electric vehicles (BEVs). This comprehensive review examines the current state of electric vehicle (EV) deployment in Indian mining operations—with particular reference to Coal India Limited (CIL) and the NHEV-Transvolt initiative—and contextualises India's progress within the global mining electrification landscape. India's mining sector consumes a significant share of the country's total diesel (91.4 million tons, FY2024-25), generating substantial Scope 1 carbon emissions at a time when the nation has committed to net-zero by 2070. While CIL operates 178 EVs and targets 681 by FY2025-26, this ambition faces critical bottlenecks: high upfront costs (2–2.5× diesel), battery pack costs representing 45–55% of vehicle price (~US$110/kWh; viability threshold <US$90/kWh), absent megawatt-class charging infrastructure at remote mine sites, import dependency for cells and battery management systems, and bank financing hesitancy. Using total cost of ownership (TCO) modelling, we demonstrate that BETs achieve 23% lower per-kilometre costs for 25-tonne haul trucks at current battery prices, yet broader adoption remains commercially constrained. Drawing on policy parallels from Australia, Chile, and Canada, we identify six priority interven- tions—mining-specific EV subsidies, battery localisation incentives, viability gap funding extension, megawatt-class depot charging mandates, carbon pricing mechanisms, and green financing frameworks—that can acceler- ate the transition. The paper concludes that mass EV adoption in Indian mining will follow a captive, high- utilisation pathway before expanding to general fleet operations, contingent on battery cost reduction to below US$90/kWh and infrastructure build-out along major mining corridors. Keywords: battery electric vehicles; mining electrification; coal India; total cost of ownership; energy transition; EV policy India; diesel substitution; haul truck; FAME scheme; net-zero mining 1. Introduction 1.1 Background and Motivation The global mining industry is undergoing a paradigm shift toward electrification, driven by the convergence of environmental imperatives, economic incentives, and technological advances in battery storage. Coal India Limited (CIL)