The Budget 2021 has won the approval of its utmost critics with most giving it a thumbs up. Infrastructure is the mantra for 2021-22 as the Finance Minister proposed to significantly enhance capital expenditure to Rs 5.54 trillion in the next fiscal, besides creating institutional structures and giving a big thrust to monetising assets to achieve the goals of the National Infrastructure Pipeline (NIP), which was launched in December 2019 with around 6,835 projects.

Asset monetisation is the sharp shift in the government’s stance. Sharp hike in capital expenditure allocation will lead to new projects announcements across infrastructure sectors, which will aid the construction companies. Order books are set to bloom. Regulatory support to facilitate debt financing and investments in InvTS/REITs by foreign investors will help construction companies monetise HAM and BoT projects. Facilitating InvTS will aid in monetisation of the completed HAM/ BoT projects thereby releasing capital for these companies. Urban Swatcch Bharat Mission 2.0 with outlay of Rs 1.48 trillion over five years will generate additional business opportunities requiring construction work in urban and rural areas for EPC companies.

Also, the much-awaited vehicle scrappage policy that has gone for a Cabinet approval is likely to see stringent registration and fitness norms for pre-2005 manufactured vehicles. The government expects recycling of metals like steel, copper and aluminium from the scrapped vehicles to help reduce their imports and offer scrap as an alternate economical raw material for the steel industry. Commercial Vehicle sales will get a shot in the arm apart from auto components and automobiles.

Off-Highway Research predicts the market to fall by 13 per cent to 72,925 units in 2020. Sales should increase 14 per cent to 82,800 units in 2021, 12 per cent to 92,900 units in 2022 and a further 8 per cent to peak at 100,300 units in 2023. The impact of the general election will reduce sales of construction equipment by 7 per cent to 93,450 units in 2024.

The Ministry of Road Transport and Highways has given overall investment approval for BharatmalaPariyojana Phase I Scheme for development of about 34,800 km (including 10,000 km residual NHDP stretches) at an estimated outlay of Rs 5.35 trillion. The cover story on compaction equipment focuses on the importance of using high performance compactors in achieving the execution target of roads and highway projects, and new technologies and solutions that help achieve this.

Under the Sagarmala Programme, the government has envisioned a total of 189 projects for modernisation of ports involving an investment of Rs 1.42 trillion ($22 billion) by the year 2035. India’s cargo traffic handled by ports is expected to reach 1,695 million metric tonnes by 2021-22 according to a report by the National Transport Development Policy Committee. Seven ports will be offered on a Landlord Model to private operators as per Union Budget 2021-22. All these developments are expected to attract new investments on port equipment.

In this scenario, the special focus on port equipment explores the current port infrastructure status, port expansion plans in the country and how these developments will help the port equipment players.

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