'Make in India' Campaign will Push Policy Reforms
In his first ever interview to NBM&CW after taking over the charge of Ministry, Honorable Minister for Road Transport & Highways, Mr. Nitin Ghadkari has assured the stakeholders of the sector to construct 30 km roads per day in two years after resolving all issues. As an ICEMA Chairman what is your take on this or how confident is CE industry on the government's announcement?
Due to the overall economic slowdown, we have been seeing a slowdown in the infrastructure sector for almost 3 years which has led to a slowdown in the Indian construction industry. However, with the new Government rolling out the much needed reforms, we are hopeful to see some growth in the coming months and roads is one of the key sectors to drive demand in the Construction Equipment sector.
Moreover, the recent announcement from Mr. Nitin Ghadkari definitely sets a positive tone for the industry. The budgetary allocations of Rs.37,800 crore to National Highways Authority of India for Road sector and Rs.14,000 crore for Rural Roads have shown that road (urban as well as rural) is a major focus area for the government.
However, the demand will pick up once projects start getting executed. The need of the hour is to identify major projects of national importance and ensure they are implemented expeditiously. We need to have a mechanism in place which will streamline the on-ground execution thus, ensuring a long-term demand for all Construction Equipment.
How do you see the government's 'Make in India' programme and mission motivating industry to participate in it? Will this help construction equipment sector to improve its technological status and competitiveness in the global market?
'Make in India' campaign is one of the major national programs which have been designed to facilitate investment and establish India as a global manufacturing hub.
We do hope as an industry body, that the "Make in Campaign" will push for necessary policy reforms which will make it easier for prospective investors (domestic and international) to explore India as a business destination particularly for infrastructure building equipment. Moreover, it will foster innovation, create employment opportunities and will protect the intellectual property right.
Foreseeing the government's strong commitment and stable sentiments in the market, how do you evaluate the growth of CE sector in the coming years?
Given our Government's focus on infrastructure, the Construction Equipment is slated for positive growth in the coming years.
The new Indian Government has shown strong intent towards infrastructural development since the beginning and we see notable reforms from the Government like Swachh Bharat, Clean Ganga which presents a huge opportunity for Construction Equipment Manufacturers.
According to the latest report released by A T Kearney, the Construction Equipment market is expected to grow by a healthy 20–25% over the next few years to reach 330,000–450,000 units sold in 2020, from current levels of about 76,000 units. This would imply a market of $16–$21 billion, up from today's $3 billion.
This will be positive only if government plans are implemented on ground.
There is still no certification body or industry authority for tracked equipment to certify productivity, safety, and emission. What is ICEMA doing in this direction to safeguard the interests of serious OEMs efforts to produce productive, reliable, and energy efficient equipment?
ICEMA has been interacting with the Department of Heavy Industry (DHI) for the approval of the Test Centre for the Construction equipment Industry on a regular basis. ICEMA has already submitted a detailed proposal on setting up of a 'Testing and Certification centre' for construction equipment industry.
Understanding the need for the same, the Cabinet Committee on Economic Affairs has approved the "Testing and Certification Centre" for Earthmoving machineries. The Department of Heavy Industries has played a major role in this important initiative and as an industry body we are thankful to them.
What is the progress in ICEMA's proposal to NSDC for setting up sector skill council for CE industry? If this proposal has already been accepted, how is ICEMA taking it forward for setting up centre for training and skill development?
ICEMA's proposal for Sector Skill Council has been approved by NSDC. The council has recently been renamed as Infrastructure Equipment Skill Council (IESC). The Governing Body of the Council includes representatives from equipment manufacturers, construction companies / associations, Department of Heavy Industry, and NSDC.
IESC has already started its operation with the support of ICEMA, by which the council will spearhead the skill development initiative of the industry.
The council would work towards developing National Occupational Standards and Curriculum for operator training. Existing training centers of ICEMA members would be affiliated to IESC for conducting trainings. IESC would also engage with other concerned training centers for conducting training of the operator.
This is a great initiative & will lead to employability in our sector, which is the need of the hour.
What is the theme and agenda of ICEMA conference coinciding with bC India 2014?
The theme of the Conference would be 'Adopting Speed, Scale and Skill in Infrastructure Development and Project Implementation'. The conference will also focus on Swachh Bharat and ways & means to help the Government in building smart cities. Financing of equipment will be a big part of the conference.
The conference is aimed to provide a platform to the equipment manufacturers, users, consultants, project authorities, concerned government organizations, technical experts, etc. to deliberate on the present trends on applications of construction equipment in the users industry sectors, performance of specific equipment in projects, requirement of state-of-the-art technology, consumers' view point and case study on applications of equipment, etc.
NBM&CW December 2014
