After two years of ‘forced hibernation’ the road sector is expected to be alive and kicking, thanks to the new government that is expected to award 4,000 km to be bid via the PPP mode. Road equipment is one segment that has witnessed growth in the past few years and given the investment planned in road projects, the demand for road equipment is set to witness an upsurge.
Says Amit Gossain, EVP - Marketing, Business Development and Corporate Affairs, JCB India, “NHAI plans to award 2,000 km through cash contracts, and is ready with 3,000 km to be bid via the public-private partnership (PPP) mode. In 2014-2015, government plans to award 4,000 km on the EPC mode, so the project pipeline is certainly robust. With such strong pipeline of road projects to be awarded by NHAI and state governments, the opportunities for the road equipment manufacturers are sizeable.”
Gossain adds, “Road projects like the Delhi-Mumbai Industrial Corridor will give a major boost to the demand for road machinery. Along with that, road development in the rural sector will also be a major driver in the coming years.” As per recent reports, the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) is seeking Rs 7,500 crore for three smart city projects.
According to Sanjay Wadnekar, Vice President, LiuGong India government investment in infrastructure is sure to pick up to meet the ambitious plan of the nation. Says Wadnekar, “While it might take some time to experience fully inclusive growth, significant progress will be visible in terms of growth percolating to a larger section of the road industry. The efforts toward driving benefits of the ongoing strong growth to the underdeveloped regions rose significantly during the past few years.”
Prantik Saha, Marketing Manager - Road Construction Equipment, Atlas Copco says “For developing markets like India, road infrastructure will be an extremely important component to support the growth opportunities. We hope that the stability of the new government will help bringing in a culture of faster decision making, accountability and a much better system of redressal.”