The government is planning a Construction Equipment Manufacturing (CEM) legislation to introduce a separate regulatory framework and Act for off-highway equipment. According to Heavy Industry Secretary Girish Shankar, the proposed legislation is similar to the Central Motor Vehicle Rules. It will cover construction equipment that is not wheeled and aim to counter use of spurious parts.

He said that the heavy industry ministry has also proposed allowing use of external commercial borrowing (ECB) to finance domestic equipment, excluding construction equipment in future FTAs, including locally produced construction equipment in export market access incentives and developing a dedicated R&D and advanced test facility.