Government may soon come out with a separate "transparent" regulatory framework for construction, mining and earthmoving equipment sectors, a senior official said today.
"The proposed regulatory framework is required to bring in more clarity as the concerns of the construction, mining and earthmoving equipment are not adequately addressed as per the current legislation under the Central Motor Vehicle Act," Vishvajit Sahay, Joint Secretary, Department of Heavy Industry said at a Make in India Week session organised by Ficci here.
Besides, an agreement was inked between Cummins India and Heavy Engineering Corporation Ltd.
"HEC and Promtractor JSC Russia 'Chetra' have agreed to jointly execute a project for manufacture and assembly of dozers of different capacities for the user industries. These dozers require special, suitable engines and accessories which shall be sourced from Cummins India Ltd.
"Cummins India will be manufacturing these engines in India suitable for Indian climate and working conditions," Ficci said in a statement.
As per the Department of Heavy Industry's Annual Report, the Indian earthmoving and construction equipment industry has been expanding volumes at a compounded annual rate of 40 per cent over the past few years and the momentum is expected to remain buoyant in the medium term.
The underlying factors driving this growth include the rising expenditure on urban infrastructure, which is expected to increase from present 1.59 per cent of GDP to 2.16 per cent of GDP by 2031 and the expanding real estate sector which is estimated to grow to USD 180 billion by 2020.
The increments in expenditure on transport infrastructure of the country (with USD 80 billion of investments planned for Roads and Highways by 2019) along with strong growth in industrial manufacturing and mining activities provide ample room for strengthening the construction equipment sector in the medium term.
