SEPTEMBER 20258GOVT PLANS RS 13,000-CR BOOST FOR CONSTRUCTION EQUIPMENTOPENAI EYES MASSIVE AI PROJECT IN INDIA WITH LOCAL GIANTSThe Ministry of Heavy Industries (MHI) is planning a scheme with an outlay of 13,000 crores to bolster and complement the construction equipment sector while reducing the dependency on imports. The proposal is under discussion with the other ministries and Niti Aayog and is likely to go the Cabinet in a few months.The scheme, part of the government's vision to create a strong domestic ecosystem for critical machinery, will focus on high-value items such as tunnel boring machines (TBMs), ropeway/elevated systems, backhoe loaders, tower OpenAI is in preliminary discussions to bring its ambitious $500 billion Stargate AI infrastructure project to India, aiming to establish a gigawatt-scale data center.The company has engaged with Indian data center firms like Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters, alongside Reliance Industries, to explore this venture. These talks, ongoing for over six months with Reliance, focus on critical aspects like energy availability, location, and computing capacity, according to The Economic Times.India is already OpenAI's second-biggest market after the US, with tons of users. This Stargate initiative, supported by heavyweights like SoftBank, Oracle, and MGX, is all about TOP STORIESlocking in the computing power for next-level AI tech.It demands huge clusters of specialized chips called GPUs and a steady power supply that never quits. Reliance is building what could be the world's largest data center in Jamnagar, Gujarat, which fits perfectly since OpenAI wants at least 1 gigawatt of capacity. If this happens, India could leap into the global AI spotlight, but it's not easy--right now, the country has less than 1% of the world's AI computing power, and getting advanced chips and cooling systems is a hurdle.The Indian government wants OpenAI to pour money into local setups and keep Indian users' data inside the country for privacy reasons. OpenAI's stepping up: They've set up a legal base here and plan to open an office in New Delhi by the end of the year. CEO Sam Altman has been singing India's praises for its fast growth and says they want to make AI cheap and accessible for everyday folks.This could supercharge India's AI world, helping startups thrive and making tools like ChatGPT quicker for locals. But it's not a done deal--rivals like Microsoft and Google are already deep in the game, and rules could slow things down. Keep an eye out; Altman might visit in September to hash out more details on this game-changing move. cranes, crawler cranes, engines and transmissions. TBMs are critical to metro rail networks, national and state highways, and ropeway/elevated systems are gaining in importance to urban mobility and tourism in hilly areas.According to officials, the scheme will be linked to performance with incentives based on higher production/production increments. Companies will have to ensure at least about 50% domestic value addition, which includes the reduction of dependency on imported components such as engines, sensors, control systems and specialized alloys.Leading companies like JCB India, ACE, Ashok Leyland, Cummins India, and Tata Hitachi will benefit, with the chance to increase capacity and local supply chains. The emphasis on indigenous manufacturing for engines and transmissions could dramatically reduce the sector's import bill while stimulating associated industries from steel to high-end materials.The initiative comes at a time of unparalleled infrastructure investment at 11.21 lakh crore in FY26 in the context of Viksit Bharat in 2047. The demand is supported by national initiatives, such as Bharatmala, Sagarmala, and Gati Shakti freight corridors, which have the potential to enhance India's $9.5-billion construction equipment industry, projected to more than double in size before 2030, thus becoming the second largest in the world.
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