Page 14 - Construction Vision Sep-Oct 2017 issue

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
12 CONSTRUCTION VISION SEPTEMBER - OCTOBER