DIGGING DEEP

Construction Week|July 2020

DIGGING DEEP
Excavators and motor graders are the most important equipment in roads and highways construction. They should see a surge in demand
MOLLY R
One of the most important equipment in road building early on is the excavator. Motor grad-ers come at a later stage. The construction equipment market depends upon infrastructure projects in the country. The government of India’s initiatives in infrastructure development projects and regular budget allocations has widened the mining & construction equipment market in India. Going forward, the government’s execution of road projects will see more demand for construction equipment market in India.

For long the government and ICEMA have often spoken about lending a helping hand. Puneet Vidyarthi, brand leader, CASE India, says, “The government is trying its best to take appropriate measures and tackle this unprecedented situation. Nitin Gadkari made some announcements which have reassured that the sector will reinvigorate soon. MoRTH has ensured that it will reduce the build-up of arbitration cases and NHAI has asked project managers to cancel portions of the proposed contracts in case of any hurdles in the land acquisition process. The government is also trying to ensure doubling of roads & highways construction projects in the upcoming period.”

Dheeraj Panda, director, customer support, sales & marketing, Sany India, says, “ICEMA has always worked closely with the government. Lately, they have been able to extend the BSIV deadline from October 2020 to another six months has come as a relief to us. Similarly, GST on construction equipment was sealed at 28% and it’s only when the association intercepted that it was brought down to 18%.”

MoRTH is the nodal ministry for investments in the road sector. Road sector was the primary driver for growth in construction equipment demand last five years. Their vision to increase construction of highways from 30km per day to 60km road per day can only be realised by encouraging mechanisation and using the best-in-class equipment to deliver safe, serviceable and sustainable roads. Vivek Hajela, GM and head, CE business, Larsen & Toubro, says, “Road construction will revive the demand for manpower, material and equipment. The rebooting of the road sector post lockdown will revive the sagging economy and provide substantial employment to migrant labour and activate the equipment lying idle across various projects pan India.”

WHAT’S TO BE DONE NOW

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July 2020