Equipment finance heads for Rs.30,000-cr mark

In view of the robust growth in the country's real estate and road construction sectors, the infrastructure equipment finance business will touch Rs. 25,000-cr to Rs. 30,000-cr in the country. Dedicated equipment finance companies, public and private-sector banks and NBFCs, which operates in this space, have recorded a growth rate of 25-30% and is expected to keep the pace even in FY17-18, as activities are picking up fast in the affordable housing segment and roads construction, said CEO of Srei Equipment Finance, D K Vyas, one of the major players in the field. The company claims to have a market share of about 30% in the infrastructure equipment finance business and the positive outlook for the sector stems from the push given by the government to affordable housing and road construction. The government has set an ambitious target of laying roads up to 40 km per day in the country. Till February in FY16-17, about 6,500 km of roads construction has been done, seeing a growth from the previous financial year, when just 6,000 km of roads were constructed. The construction of roads needs modern machinery and equipment which requires huge investment. Acquiring finance is the only way to procure equipment as a result of which, equipment finance companies have been maintaining a positive outlook, said N Nagesh Reddy from Builders Association of India.