The biggest transformation in the CE rental industry in India is the realisation that rental companies are the backbone of India's infrastructure development. This progressive mindset and the growth in infrastructure projects are key for the growth of construction equipment rental industry.

A good phase of growth is indicated for construction equipment rental sector, not only worldwide but also for India as reports estimate India's growth rate of construction output to be 7.4 per cent during 2020-30 which will overtake that of China (7 per cent).

However, the period of opportunity for CE rental industry is also ushering in the new challenges for it, the biggest of them being an unorganised sector and lack of standardisation. CERA has taken the lead to sensitise the industry about the need and benefits of standardisation and as an organised sector, and create a conducive environment so that CE rental sector can leverage the opportunities in this growth period to the optimum.

The industry has now come closer nationally and become united to take up the new challenges and reap benefits of the growth period. The sector is gradually becoming transparent and there is a healthy competition between the hirers.

Our regional meets, trainings, interactive sessions, workshops, CE expo like bauma, have exposed the CE rental industry to new technologies and enabled it to understand new demands. As a result, the hirers have become quality conscious and therefore, they are shifting from old to new technology machines. Consequently, there is a focus on trained manpower for operating and maintaining the new technology equipment. We have taken up the responsibilities of training manpower and enhancing the capabilities of rental companies so that they become a centre for skill development and training of operators and technical staff. The programmes of skill development and training of manpower are creating opportunities of more employment and entrepreneurship.

A new paradigm is emerging. Small hirers are joining the mainstream and growing. They are becoming the torchbearers. They are diversifying and therefore expanding their fleet.

The industry is gradually moving towards adopting the standardised procedures - for achieving quality, equipment hiring agreements, guidelines, maintaining logbooks, billings, operating procedures, business rules and practices, rental tariffs, trainings, salaries of operators and many other indicators.

CE rental industry is also witnessing a growing trend of joint ventures and partnerships. The industry is also working on to find the new models of hiring to give more option to construction companies that are beneficial to both hirers and construction companies. Currently, two types of rental models exist - dry and wet rentals. Dry rental is not much prevalent in India unlike in western countries.

Rental companies are also facing the challenge of inter-state commutation due to the non-uniform tax structure. For example, there are different taxes for the movement of construction equipment in different states like in Rajasthan, Gujarat, Andhra Pradesh, etc. CERA is constantly interacting with governments and trying to addressing this issue. There is a need for uniform taxation or giving tax holidays for at least five years.

Though the rental penetration in India at current stage is very less as compared to other countries like Japan, the US and China, but it is also the indicator that ample opportunity exists for increasing the rental penetration in India. The CE rental industry and the construction companies need to work in tandem. Therefore, it is important to strengthen the relationship between the CE rental companies, project and infrastructure corporates, manufacturers and financiers so that all can leverage the emerging opportunities for mutual benefits.