IECIAL is now iCEMA

Indian Earthmoving And Construction Industry Association Limited Indian Construction Equipment Manufacturers Association

Ensuring an alignment with the global equipment manufacturers associations like AEM, CECE, CEMA, KOSEMA, among others, the Indian Earthmoving and Construction Industry Association Limited (IECIAL) changed its name and has become Indian Construction Equipment Manufacturers Association (iCEMA) at a recently organized function in New Delhi. The change of name will not just help the body to expand the scope of its activities but also provide an easy access to the latest and advance demand forecasting models, besides opening up an opportunity for smooth stats sharing with global construction equipment manufacturers' associations.

Announcing the change in name at a glittering ceremony, which was attended by Secretary Department of Heavy Industry, S. Sundareshan, Director General CII, Chandrajit Banerjee, Member Secretary NMCC Ajay Shankar, and Vice Chairman, iCEMA, Amit Gossain including the top brass of the Indian construction equipment manufacturing sector, Chairman iCEMA, Glen Desilva, said that the construction equipment industry will grow at the rate of 18 to 20% till 2020 and will touch Rs.1,20,000 crore by that time. There is no doubt that the industry may face hump for a short duration as is being witnessed for the past four to five months, but the mid and long term growth prospects will remain firm and we must see it in a broader perspective, he explained.

Taking the advantage of the presence of industry secretary, he made a mention that for ensuring sustainable growth, the government has to play a proactive role in addressing the issues and concerns of the CE industry on priority basis.

Touching upon the concerns of the industry he says, "we welcome the government move for used equipment notification but want that ministry should relook on import duty on CE to give a level playing field for Indian manufacturers. China produces 50% of the world equipment and as there is a 30-35% slowdown there, it could be a big threat to Indian OEMs as India could become a dumping ground. Government's immediate attention required is to safeguard this threat."

Mr. Banerjee, assured the industry for CII support at all levels while Mr. Sundersen, said that government will address the issues confronting the sector proactively and resolve on priority basis. One of the major industry concerns for used equipment (imported) have already been addressed through the notification assuring the industry of government's support.

IECIAL iCEMA

Addressing the concerns of used equipments of the Indian equipment manufacturers, Mr. Ajay Shankar says, "in the present free-trade global economy, it has become challenging to address the issue of dumping and equipment imports. However, on the positive side, the World Trade Organisation has well laid provisions of 'safeguard duty structure' that can be used by Industry." Quoting the reference of US he said, that the country has made provisions of quality control order on imported solar panels. Similar provisions can be formulated by India for restricting imports of construction equipment.

Mr. Shankar mentiones, "since India's infrastructure sector is projected to grow at higher level in the coming years, materialization of the same will require advanced equipment and better construction practices. This will require adequate training and certification for skill development in order to meet the industry's need for an estimated 1 lakh trained operators and 3 lakh trained mechanics by the end of 2020.

Concerns

Sharing the concerns of used equipment during the Q&A session, Mr. Vipin Sondhi, CEO & MD, JCB India pointed out that the threat to local manufacturers in India is especially from China, with enormous production capacities of tracked excavators and wheel loaders, China can make a big dent by dumping the products, which can altogether swamp off local manufacturing. The government should seriously address this issue through its own and WTO provisions. Various industry leader spoke on the ocean.

"To prevent import of those equipment which are being manufactured in India now for quite some time, the government will have to update its records which are at present at least fifteen years old," said Mr. Bharatan, Senior Technical Advisor, Puzzolana Industries.

Mr. Jehangir Ardeshir, Terex said, "since the infrastructure equipment market is quite complex, it will be important for the government to engage consultants to identify equipment segments where imports of used equipment can be barred for usage." In favour of duty free imports, Mr. Rajen Khoda, VP Sales Asia, Terex Power Screen said, that duty free imports should be allowed in cases where the equipment are characterized by advanced technologies as compared to the conventional ones.

Mentioning about second hand imported cranes, Mr. Aniruddha Moharir, GM Sales, Voltas Cranes said, that there has to be adequate safeguards on used second hand cranes as the equipment are low on productivity and safety.

Point was raised on accuracy in demand projections by Mr Anand Sundaresan, MD, Schwing Stetter India Limited. He says, "the demand forecasts method and then the database should be constantly updated by the government in order to maintain accuracy levels. Wherein the necessary support can be obtained from the industry for the same."

Mr. Amit Gossain, in his closing remarks said that it is quite imperative that advancements in infrastructure construction equipment should take place given the high volume of projects that will require to be created at a shorter time span. Taking cognizance of the same, the industry on its part is undertaking operators skill enhancement at various levels.

NBMCW September 2012

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