Road policy to help industry
Calcutta: The construction equipment industry is bullish on its prospects on the back of a government initiative to boost road building. The industry has also approached the Centre to lower the GST rates to lift demand.
The Centre has said it would spend Rs 6.92 lakh crore over five years to build 83,677 kilometres of roads. This will prompt the purchase and lease of construction equipment.
"We are quite bullish on the growth prospects of the industry. The construction equipment business has been growing and this year we expect a 30 per cent growth," said Anand Sunderasan, vice-chairman and managing director of Schwing Stetter. The industry has sold around 70,000 units last year.
Sunderasan was in the city to promote a CII event on construction equipment in Bangalore in December.
Devendra Kumar Vyas, CEO Srei Equipment Finance, said the target translated to 45km of new roads daily from 25km now. "This brings opportunity for the construction equipment industry."
Sunderesan further said the industry had approached the central government to reconsider the high tax rates applicable to most of the industry under the GST.
"We have only one concern with the GST and we have informed the government that 80 per cent of the construction equipment are falling under 28 per cent GST. In the past taxes were around 15-18 per cent," he said.