Cement Manufacturers Association (CMA)

39 In India—home to one of the world's largest and most diverse mineral economies—this transition has taken on particular urgency. India's national commitment to achieving net-zero greenhouse gas emissions by 2070 [1], combined with escalating diesel import bills and increasingly stringent Environmental, Social and Governance (ESG) disclosure requirements, compels the mining sector to reconsider its foundational energy architecture. Diesel-powered haul trucks, excavators, and ancillary equipment collectively represent the single largest source of Scope 1 carbon emissions in surface mining operations. With India's total diesel consumption reaching 91.4 million tonnes in FY2024-25—albeit at a four- year low growth rate of 2% partly attributable to nascent EV adoption [2]—the mining sector's contribution is both substantial and tractable. Battery electric vehicles offer a pathway to decarbonise mine operations while simultaneously reducing operating costs, improving underground air quality, and hedging against oil price volatility. This paper synthesises available evidence to provide the first comprehensive, policy-oriented review of EV implementation in the Indian mining industry. It situates India's progress within the global context, quantifies key economic and technical barriers, and proposes an integrated policy framework calibrated to India's institutional realities. 1.2 Scope and Structure The review encompasses: (i) coal mining (contributing 84% of mineral production value in FY2024-25); (ii) metal ore mining including iron ore, bauxite, copper, and zinc; (iii) industrial mineral mining, with emphasis on limestone for the cement sector; and (iv) quarrying operations. Open-cast mining—the dominant extraction modality in India—is accorded primary attention given its intensive haul-truck fleet requirements. The paper is structured as follows: Section 2 presents fuel consumption data; Section 3 reviews the global EV mining truck market; Section 4 documents Indian deployment status; Section 5 analyses the energy crisis as a transformation catalyst; Section 6 identifies bottlenecks; Section 7 evaluates the policy framework; Section 8 proposes transition pathways; Section 9 undertakes a comparative analysis; and Section 10 presents conclusions and policy recommendations. 2. Fuel Consumption in the Indian Mining Sector 2.1 National Diesel Context India is the world's third-largest consumer of petroleum products, with diesel accounting for the majority of industrial and freight energy demand. Total diesel consumption in FY2024-25 reached 91.4 million tonnes, registering a growth rate of 2%—the lowest in four years [2]. This deceleration is attributable, in part, to the progressive substitution of diesel in road freight by compressed natural gas and, to a lesser but growing extent, battery electric commercial vehicles. Table 1: National Diesel Consumption Indicators – FY2024-25 Metric Value Source Total India diesel consumption (FY2024-25) 91.4 million tonnes [2] Year-on-year growth rate 2% (four-year low) [2] Road transport sector share of diesel ~87% of total [14] Diesel price regime Market-linked; globally high [9] Mining sector share (estimated) 4–6% of total Derived