Road Ministry to Award Contracts Worth ₹3 Lakh Cr Within 3 Months
Road Transport & Highways Minister Nitin Gadkari has announced that the Ministry of Road Transport and Highways (MoRTH) will award road contracts worth ₹3 lakh crore within the next three months. He was speaking at the annual session of the Indian Construction Equipment Manufacturers Association (ICEMA). Present at the session were JCB, Volvo CE, Caterpillar, CASE, SANY, ACE, Ammann, Terex, Kobelco, Schwing Stetter, and Tata Motors.
The Minister emphasized the crucial role of the construction equipment industry in India's infrastructure development and stated that the Ministry aims to finalize contracts worth ₹5 lakh crore by the end of March 2025, a target that has been well-received by the industry.
He urged road contractors to maintain high-quality standards while finding ways to reduce construction costs through use of green fuels. "We want development, but not at the cost of the environment," Gadkari emphasized, advocating for the adoption of methanol in engines.
As of June, the Ministry has awarded projects totaling 95 km in length. The Minister assured the construction equipment industry of full government support, urging the industry to strive to make India the world's largest construction equipment market, up from its current position as the third largest.
India’s construction equipment market is estimated at ₹79,000 crore, with a total industry volume of 1.35 lakh units, expected to increase to 2.5 lakh units by 2030.
He added that issues concerning customs duties on imports would be reviewed as the government will extend all the support possible to improve productivity in the CE Industry, which has great potential for driving the country’s economy and is also an important source of job creation. He said that the Budget's allocation of 3.4% of GDP to the infrastructure sector underscored its importance.
“As the world's third-largest construction equipment market, we believe there's great potential to become the world's largest and most prominent and I am confident that together, we can achieve this goal and set new benchmarks in the industry," he said.
