Page 31 - DIGITAL ISSUE MAY 2018

ROAD & ROAD CONSTRUCTION EQUIPMENT
FAST TRACK
National Highways constructed in
FY 18 FY 17 FY 14
10,000 km 8,231 km 4,260 km
27. 5 km
Avg length of highways constructed every
day in FY 18
46 km
Average no of contracts awarded per day
in FY 18
`1. 5 lakh cr
FY 18 investment in constructing NHs by
Government & private investors
Of this, `1 lakh cr Came from
budgetory allocation, toll collections &
which would have a new alignment and the recent past, owing to the increased road
pass through less developed areas falling development programs undertaken by the NHAI borrowings
in the region, Union Transport and central and state governments, especially in `2 lakh cr
Highway Minister Nitin Gadkari said the Asia-Paci c countries. Expected expenditure on NHs in FY19
recently. “Instead of expanding lanes of Growing demand from irrigation industry,
existing highways, we are focussing on increasing number of upcoming highway
creating green eld ones as the cost of land construction projects and advanced “Differentiated Business
acquisition is lesser for a green eld project vehicles equipped with emission control Model, focusing on roads
that passes through comparatively lesser systems are some of the factors expected to and government contracts
developed areas. drive the construction machinery market. with equipment ownership,
skilled man power,
The minister also announced that the The demand for machines that are cost minimal subcontracting
daily road construction target from this e ective, along with regulatory pressures for and backward integration
year on will be calculated as per the lane lower emissions, is pushing construction- are the key features
km formula practiced worldwide instead equipment manufacturers to opt for electric of Dilip Buildcon track
of the linear length km. “World over, road and hybrid vehicles over the traditional record of completing projects on well before
construction is calculated as per the lane hydraulic and mechanical ones. time. Above all, the involvement of the
formula. Whereas, we calculate the linear e Asia-Paci c construction machinery management on the real ground level works
length in India. at means if we construct market is projected to register a CAGR of is the key for our success.”
10 km of 14 lanes and 10 km of 2 lanes, it 8. 60 per cent during the forecast period. Devendra Jain, Exe. Director & CEO,
is counted only as 10 km and the length of Asia-Paci c ranks rst in the construction Dilip Buildcon Ltd
all lanes is not taken into account. e new equipment market with major market
formula will be worked out by the National share held by China, India and Japan. e
Highways Authority of India,” he added. infrastructural ventures across Asia-Paci c
These factors have really catapulted the countries have a signi cant impact onthe
growth of road construction and have development of the CM market, states “Future of the road
offered a ray of hope to construction Mordor Intelligence report. development in India
equipment companies to plan their Crawler excavators are one of the most lies only in PPP model
irrespective of the choice
growth expanse in line with the stated demanded heavy construction machinery of execution mode in BOT
developments. (heavy duty excavators)weighing 60,000- (Toll), BOT (Annuity),
80,000 pounds, used across a wide area HAM or TOT. Although we
Construction equipment expanse of applications ranging from heavy must acknowledge that
e global construction machinery market infrastructure projects to underground the government has so far
is anticipated to record at a CAGR of 7. 21 utilities, road construction, pipeline, been fairly successful in reviving the sector
per cent during the forecast period 2018- commercial site preparation,and demolition through increased public sector allocation
23. e increasing focus on infrastructure purposes. The increasing capacity and awarding projects on EPC mode. But the
and development of automation in the augmentation in the cement industry is investment need for the sector is humongous
and given the budgetary constraint, it is
construction and manufacturing processes expected topropel the excavator market imperative that focus should start shifting
had a significant impact on the market growth. Heavy-duty excavators are used to towards facilitating increased private sector
growth. e road construction machinery breaking the refractories of rotarykilns used participation.”
market has witnessed signi cant growth in in the cement industry. Bajrang Kumar Choudhary, MD, BRNL

MAY 2018 |CONSTRUCTION OPPORTUNITIES 35