Projects Boosting Construction Equipment Sales in India

The Modi Goverment has in its short tenure announced multiple projects that is bound to provide a huge boost to the construction equipment sales in India. Smart cities, coal block auction, transmission project awards, ports, air ports and infrastructure development to name a few of the governments key projects that are set to create a huge surge in the construction equipment sales in India . These projects will not just create a huge demand for the equipment, but also for trained man power there by creating thousands of job opportunities if not more. Here is a look at some of the projects and what they are all about.

PM Modi has announced 100 smart cities under his Make in India initiative to absorb the constant influx of people migrating to cities on a daily basis. By year 2050 around 70% on India’s population will be living in cities and the announcement of these smart cities is in line with the vision. Smart cities are a good way to urbanize the infrastructure across the county since India is in dire need of it given its large migrating population adding to the pressure on the existing urban infrastructure.

Port projects worth US $ 10 billion have been identified for being awarded for developing existing and new ports across the country. This initiative likely to see the existing ports being revamped to state of the art facilities to make them more efficient while a number of new ports will be developed to have excellent services that are best in its class. The initiative will also lead to development of better infrastructure connectivity and logistics facilities across the country. Transport corridors will be created for ease of business.

This year’s domestic union budget is pushing greater domestic travel and development of unused air strips into domestic airports. Revival of 10 such air ports are proposed in the fiscal year 2016-17. 20,000 crore is the amount to be spent over the next 5 years. 18,000 of which is dedicated to aerodrome airport systems, 126 crore for IT up gradation, 865 crore for airport systems, airport navigation services to cost more than 55o crore while ground safety and security to cost 515 crore.

Transmission projects worth 30,000-50,000 are announced and are to be awarded for the 21 new proposed solar parks. Infrastructure and amenities to be built around solar parks to reduce the risk of land acquisition and the right of way. Large solar plants with capacities of more than 50MW are a way to reduce the cost of solar energy.

All these projects are likely to set off the boom in the infrastructure industry and create a huge demand for construction equipments across the industry. The boom will also help propel forward the rental market in addition to the used equipment market in India. The cherry on top is the tough competition leading to global players coming up with superior products at good prices to meet the increasing demand of the evolved consumer.