Gadkari urges local tunnel machinery as China TBM curbs near

Road transport and highways minister Nitin Gadkari on October 27 asked Indian industry to build tunnel machinery at home. He cited China's new export controls and put the country's tunnel pipeline at Rs 7 lakh crore to Rs 8 lakh crore over five years⁵. The spending would cover metro, highway and hydro tunnels, he told a Confederation of Indian Industry conference in Delhi⁵.

The controls were announced by China's Ministry of Commerce and the General Administration of Customs on October 19 and take effect on November 18^6, 1. They cover tunnel boring machines (TBMs), described in the Chinese announcement as shield tunnelling machines, along with key components and related technologies¹. The list also covers walking excavators, which move across difficult terrain, and wet shotcrete machines designed for projects above 3,000 metres¹.

The regime is not a blanket ban. Beijing will require government approval for shipments to countries it treats as sensitive in its disputes with China. Shipments to other destinations can use a registration system with limits on later transfers¹. For those destinations, exporters must register and obtain an export certificate, The Hindu reported. They must also submit end-use declarations promising the equipment will not be rerouted to sensitive locations². China said it had notified countries with which it has export control dialogue mechanisms. It said it will approve applications that meet its rules^7, 1.

The Hindu said India's position depends on how China decides on the TBMs set for India, and that procurement may have to shift to plants in Germany or Japan². New Delhi has raised clearance delays before. In October 2024, commerce minister Piyush Goyal told visiting German vice chancellor Robert Habeck that China was blocking exports of TBMs made by a German company in China^7, 6.

India's exposure sits in a few large projects

China holds around 70% of the global TBM market, according to The Hindu². India is one of the world's largest importers of the machines and depends on imports for its tunnelling work^2, 7.

Tunnelling machinery imports from China fell from $18 million in 2022-23 to $3 million in 2023-24, according to figures cited by Reuters³. They fell to $500,000 in 2024-25 and then edged up to $800,000 in 2025-26³. Those numbers show broken trade more than weak demand, The Economic Times reported³.

The clearest example is the Mumbai-Ahmedabad bullet train. In 2024, customs clearance for tunnel boring equipment bound for India became a bottleneck³. Some machines for the corridor were built by Germany's Herrenknecht at plants in China³. A government official said the new curbs could affect imports of high-duty engines, high mass cranes and tunnel boring equipment, including for that project⁴.

Highway work is less exposed. An official ruled out a large-scale slowdown in highway development, and industry executives say India is largely self-sufficient in conventional construction equipment^4, 3. "There will not be much impact of these curbs for general construction equipment since the domestic industry is self-sufficient," said Shalabh Chaturvedi of CNH Industrial⁴.

Alternatives cost more and take longer

Herrenknecht, the world's largest maker of heavy TBMs, has assembled and refurbished machines in Chennai since 2007-08^8, 2. Even so, The Hindu said redirecting procurement to plants in Germany or Japan would mean absorbing a higher capital cost².

Lead times stretch because a TBM is built for the ground it will bore. Railway minister Ashwini Vaishnaw described machines for the Rishikesh to Karnaprayag line that were modified for squeezing Himalayan strata. Changes were made to the cutter head, the shield that houses the lining assembly and the drive system⁹. The Hindu noted that new TBM plants need a minimum number of orders. They also need the capability to design, make and repair specialised components².

Components are the quieter risk. Western manufacturers also keep substantial component supply chains in China to cut costs, The Hindu reported². The Chinese notice covers key components and related technologies, not only complete machines. Cutter heads, spares and technical support can carry the same paperwork as the machine itself¹.

The domestic scheme is close, not notified

The Centre is moving toward a $1.2 billion incentive scheme for construction and infrastructure equipment. It was announced in the 2026-27 budget and aims to attract $1.8 billion of investment over seven years^3, 4. Officials said the scheme was close to final approvals, and that the government would consult stakeholders on softening the impact of the curbs⁴. The reports describe a scheme nearing approval, not one already notified^3, 4.

The gap it must close is wide. Overall localisation in construction equipment is around 50%, with excavators at 55% to 60%, according to a BCG and CII analysis cited by ET³. Hydraulics, electronic controls and undercarriage systems are largely imported³. Heavy industries minister H D Kumaraswamy said equipment and components worth around ₹45,000 crore have high import dependence⁴.

Ministers have also pointed to progress. Vaishnaw said 8-metre and 15-metre diameter TBMs are now made in India, that there is a TBM plant in Tamil Nadu, and that machines above 16 metres will follow⁹. The Hindu was more cautious. It said the BEML experience shows manufacturing partnerships can fail without secure licensing arrangements and sustained demand². Expecting every sophisticated machine to be built at home would raise public infrastructure costs, it said².

What to do now

• Ask the exporter, in writing, how it expects India to be classified. Get the registration, export certificate and end-use declaration if the shipment falls outside the sensitive category^2, 1.
• Check whether your change in law and force majeure clauses cover an export control imposed by the supplier's home government. Fix who carries delay cost and liquidated damages if a machine misses its shipment window.
• List every TBM, walking excavator and shotcrete unit due to ship after 18 November, with its control status. Push for evidence that a licence or registration is in hand before the vessel sails^6, 1.
• Pre-qualify European or Japanese options and the Chennai assembly route before the tender, not after a delay. Budget for a higher capital cost^2, 8.
• Map component and cutter head sourcing on machines already boring, since key components carry the same controls¹.