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Home arrow News arrow Business News arrow Mechanization Imperative to Speed up Infrastructure Projects: Dr C P Joshi
Mechanization Imperative to Speed up Infrastructure Projects: Dr C P Joshi Print E-mail
Written by Cherian, James   
Thursday, 24 November 2011
Bangalore: "Mechanisation is imperative to speed up the implementation of India’s infrastructure projects," Dr C P Joshi, Minister of Road Transport and Highways, Government of India, said and added that the growth of infrastructure sector is critical for the country to achieve a sustained economic growth in the next ten years.

Private sector participation in infrastructure development in the country is expected to grow to 38 per cent over the next decade. Private sector participation will increasingly look at mechanisation and usage of specialised equipment to meet project deadlines and address skilled labour shortages. Equipment sales is expected to increase from over 60,000 units in 2010 to around 3,30,000 units in 2020.

He said that the ambitious National Highways Building Programme envisages investment of about US Dollars 70 Billion in next 5 years with a major share by way of Public Private Partnership (PPP).

The investment made in infrastructure sector in 2011 accounted for 7.9% of the GDP. The figure is likely to increase to 10.7% by 2017. During the 12th Five Year Plan the infrastructure investment would be in the tune of US$ 1 trillion. The Minister said that to fund the infrastructure projects, India should find alternative sources of finance. The government’s Infrastructure Investment Fund would soon be coming out with a public issue to raise about Rs 10,000 crore.

Delivering the Chief Guest Address at Excon 2011, the sixth international construction equipment and construction technology trade fair, being organized by the Confederation of Indian Industry (CII) from 23-27 November 2011 in Bangalore, the minister said that India has emerged as the second largest country in the world in attracting private investment in infrastructure development. India would continue to attract foreign participation as the country has an open and transparent bidding process, standards for various documents & agreements, and a well defined dispute resolution mechanism in highways.

Vipin Sondhi, Chairman, Excon 2011, said that roads are critical to promote inclusive economic growth in India, and for this reason, infrastructure should continue to remain a dominating theme of the country’s growth story.

Quoting the CII Report on The Indian Earthmoving and Construction Equipment Industry Vision 2020: Commanding New Heights, which was released by the Union Minister at the event, Mr Sondhi said that the Indian construction equipment industry is expected to grow at a compounded annual growth rate of about 21% to reach the size of US$ 23 billion by 2020 from the current level of about US$ 3.3 billion. By 2020, the industry is expected to create at least two million skilled jobs in maintenance and operation alone – that is, excluding the jobs in the manufacturing of equipments.

The report states that in order to fulfil the increasing volumes and evolving customers' needs, OEMs will need to increasingly focus on multiple fronts such as new products introductions.

Glenville da Silva, Chairman, IECIAL said that the government should articulate its environment policy to unleash the potential of the mining and power sector; come up with a new Land Acquisition policy that would speed up road infrastructure, and do away with multiple differential taxation systems across State boundaries to support the construction equipment and infrastructure industry.

Silva said that in 2000, when the first edition of Excon was organized, the total number of construction equipments in India was just around 8,000 units. Thanks to the government’s ambitious infrastructure projects, the equipment industry grew by seven times over the last yen years. Currently there are about 60,000 units of construction equipments and India’s CE industry today account for over 6% of the global market.

 
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