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Will the Road construction target be achieved in 2023-24?

The road sector is suffering from immobility! Surprised?

Bharat Road Network, Cube Highways sign deal for sale of 126-km road project in UP

BRNL along with its partners inks deal for complete transfer of ownership in an operating toll road project from Ghaziabad to Aligarh on National Highway 34

THE ROAD AHEAD

The roads and highways sector is expected to bounce back soon with the government's corrective measures to combat slowdown and the large number of projects planned in the coming years. The road equipment players are bullish on the future growth prospects.

Technology Meets Opportunity

Rs 1.2 trillion investment in roads and highways; extension of 3.17 lakh km of rural roads; 35,000 km highway construction under Bharatmala Pariyojana scheme- it seems that there is a lot slated to happen in the coming years in rural roads and highways.

More engines of growth needed

Off-Highway Research reports a turnaround in the global construction equipment (CE) market, which is expected to grow 16 per cent this year.

Yuan Devaluation Spells Gloom

The recent devaluation of Chinese Yuan by 4 per cent has triggered a global crash of stock markets. Indian BSE index has dropped by over 16000 points and there is more to come.

Road 2 recovery

Despite the present day gloom in the market, the future for the construction equipment sector, especially for the road equipment segment in India, still holds much potential as this sector has a profound and immediate impact on the country?s economic growth. Off-Highway Research is optimistic about the growth in demand for road equipment and forecasts growth at a CAGR of 12.67 per cent over the next five years. Agith G Antony finds out more about the positive vibes in the industry.

Staying close to our customers is our priority.

We have a very strong research and development team that is striving to provide break?through technologies on our equipment. Our focus is now on providing solutions to our customers to keep the operating costs at the minimum level. I will consider this as our value for money proposition in hard times, says Viraj Parthi, India Country Leader

Road builders may have to pay fine to exit road projects

Union Road Minister Oscar Fernandes has said that road developers in the country will not be blamed for delays in regulatory procedure but have to take responsibility for their own faults and may have to pay up to 1 per cent of total project cost as penalty for exiting. If there is any fault on the part of the concessionaire, then there will be a penalty of a maximum of one per cent, of the total project for the developer to exit the project, he said.

Road builders asked to pay fine if want to exit projects

Union Road Minister Oscar Fernandes has said that road developers will not be blamed for delays in regulatory procedure but have to take responsibility for their own faults and may have to pay up to one per cent of total project cost as penalty for exiting. If there is any fault on the part of the concessionaire, then there will be a penalty of a maximum of one per cent, of the total project for the developer to exit the project, he said.

Tough times for C&SE sector

One year ago, to be precise, EQUIPMENT INDIA in its May 2012 issue, came out with a cover story on the growth potential of crushing and screening equipment (C&SE) segment. We interacted with most of the major C&SE manufacturers to get the actual pulse of the industry

Govt to pace up rescheduling of road developers' premium

The Union Road Trasnport and Highway Ministry has decided to speed up its proposal to allow premium rescheduling of road development projects awarded two-three years ago. The government took the decision by facing a situation that may jeopardise the fate of many road projects. The proposal will then be referred to an inter-Ministerial group headed by the Cabinet Secretary.

Govt may ease exit norms for road developers

The Union government may relax exit norms for highway developers, a move which will increase mergers and acquisitions in the road construction sector of India. At present, there are limits on the extent to which a lead project developer can exit from a project, with time-based milestones. Relaxation of this norm has been a long-standing demand of developers and the Cabinet may soon take up a proposal in this regard.

Govt to ease norms for road builders

Seeking to attract developers to new construction projects the Union Roads Ministry has proposed easing norms for road builders. The Ministry has sent a note to the Cabinet Committee on Investment suggesting an early exit for road developers.

Steadily chugging ahead

Even though the road sector in India continues to face multiple challenges, a strong pipeline of projects supports long term prospects. Around $180 billion investment is earmarked for the road sector, which is the highest ever investment for any Five Year Plan, and this should have a very positive impact on the construction equipment industry. The prime factor favouring the growth of the road equipment industry is the sheer scale of work still to be done in this sector.

Road to elections

Even though the demand for construction equipment for the road sector has been sluggish in 2012, there still exists tremendous potential for the construction equipment industry, given the infrastructure deficit in the country. However, unfortunately, the government has little fiscal headspace and thus, is unable to stimulate growth by undertaking investment in the infrastructure sector.

Lack of clarity on the use of RAP is a challenge

?Wirtgen offers the broadest range of milling machines in the world and we have over a 70 per cent market share world???wide, says P Ramesh, Managing Director and CEO, Wirtgen India. Excerpts from the interview.

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