Page 14 - Construction Vision Sep-Oct 2017 issue
P. 14

in the next three to five years.         ponds. Even if we were to look at a
     SALE OF CONSTRUCTION                                                           conservative estimate, industry sales should
     EQUIPMENT MAY GROW 15                  According to data available with the Indian   grow in the range of 10-15% and breach the
     PER CENT ON                            Construction Equipment Manufacturers'   previous peak seen in 2011,” managing director
     INFRASTRUCTURE PUSH                    Association, sales of construction equipment   Sandeep Singh said.
                                                                                    Tata Hitachi has three manufacturing facilities
                                                                                    — at Jamshedpur, Dharwad and Kharagpur —
                                                                                    which currently run at around 65% capacity.
                                                                                    Given the potential in the market, the company
                                                                                    is looking at expanding its product range by
                                                                                    introducing refurbished wheel loaders and new
                                                                                    14-tonne excavators. Singh expects capacity
                                                                                    utilisation at the facilities to go up to 80% over
                                                                                    the next two-three years.



                                                                                       THIRUVANANTHAPURAM
                                                                                    TOPS LIST OF 30 NEW SMART
                                                                                                  CITIES


                                                                                    Thiruvananthapuram in Kerala, Naya Raipur in
                                                                                    Chhattisgarh and Rajkot in Gujarat figured in
                                                                                    the new list of 30 cities announced today for
                                                                                    development under the Centre's Smart City
                                                                                    Mission.

                                                                                    The latest announcement takes to 90 the
                                                                                    number of cities selected for part financing of
                                                                                    projects by the Centre under the scheme.
                                            declined for three straight years before rising
     Sales of construction equipment are expected
                                            2.5% to 36,800 units in 2015 and 41.5% the
     to grow 10-15% to a record high in 2017,                                       Thiruvananthapuram took the first slot, followed
                                            year after, to 52,100 units.
     driven by the government's focus on                                            Naya Raipur, Rajkot, Andhra Pradesh capital
     infrastructure building. Sales of equipment                                    Amaravati, and Bihar capital Patna.
                                            “Asset creation in the infrastructure sector is
     such as backhoe loaders, excavators, earth
                                            being led by roads and on the back of that we
     moving machines and pick-n-carry cranes had                                    Announcing the new list at an event here,
                                            expect to grow by 10-15% this year,” Vipin
     peaked in 2011at 52,500 units. Volume came                                     Urban Development Minister M Venkaiah
                                            Sondhi, the chief executive at JCB India, told
     close to that last year.                                                       Naidu said that 45 cities contested for the 40
                                            ET. “It will help us cross the peak seen in 2011.
                                                                                    available smart city slots but only 30 were
     The growth expected in the segment this year   Real growth will come in beyond that once
                                                                                    selected to ensure their feasibility and workable
     will come, said industry executives, despite a   projects in urban renewal, irrigation, railways
                                                                                    plans.
     6-8% increase in the prices of construction   and real estate pick up.” JCB India, he said, is
     machines under the goods and services tax   confident of growing in line with the industry.
                                                                                    Four cities in Tamil Nadu -- Tiruppur,
     regime. These equipment previously attracted
                                                                                    Tirunelveli, Thoothukudi and Tiruchirappalli,
     an excise duty of 12.5%, plus state taxes that   At Tata Hitachi, where sales of construction
                                                                                    and three in Uttar Pradesh -- Jhansi, Allahabad
     ranged from 6% to 13.5%. Together, the tax   equipment increased 46% to 6,800 units in the
                                                                                    and Aligarh -- also made it to the list.
     incidence was 26% at the most. It is now 28%.   last financial year ended March 31, executives
                                            are optimistic of the midterm prospects.
                                            “There has been a strong pickup in road   An investment of Rs 57,393 crore has been
     With the government looking at investing in
                                            construction activity with governments   proposed for development of these 30 cities. Of
     smart cities as well as developing infrastructure
                                            investing in expressways and state highways.   the planned expenditure, Rs 46,879 crore will
     projects such as highways, inland waterways,
                                                                                    be for core infrastructure and Rs 10,514 crore
     railways and regional airports, experts expect   A lot of emphasis is also being put on irrigation
                                                                                    for technology-based solutions.
     growth in the sector to gain further momentum   projects towards desilting rivers, digging new   With this, the total investment approved under
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