Excon 2000 focusses on tech, financing

By Our Special Correspondent

BANGALORE, DEC. 13. With faster and cost-effective completion of infrastructure projects being the new ``mantra'', there has been a perceptive shift in the construction industry vis-a-vis increased use of highly mechanised equipment. Displaying this emerging trend for the first time in India and perhaps in Asia has been the five-day international exhibition and conference on construction equipment - Excon 2000 - which got under way here on Tuesday.

While ``Excon 2000'' has showcased the best in the construction equipment industry, thanks to a good turnout of (83 to be precise) participants including major global players such as Escorts JCB and Volvo, the scenario in the country, however, for the industry hit by recession, is going to be one long haul.

The industry, nevertheless, is gung-ho about the potential it has, more so with the Centre and the State governments focussing on infrastructure development. In the next ten years these governments have committed to invest Rs. 170,000 crores to build up infrastructure and if this commitment should come through, then the industry would have to gear itself up.

Mechanisation of the construction equipment industry in the country has been sluggish and the reasons for this are many including lack of adequate financing, projects, fear of displacement of labour and the like. But in the post- liberalisation period, with import of equipment being made easier and joint ventures with global players materialising, the industry is looking up. Import duties have been reduced by about 25 per cent of the equipment value and this has helped bring in state-of-the-art machinery.

According to Mr. Sarosh Ghandy, Chairman of Excon 2000, India will require equipment stock worth Rs. 10,000 crores (three-fold increase from the present), going by the current GDP growth rate of about 7 per cent.

Mr. Eash Jaitly of EJCB said, ``The Indian market for earth moving and construction equipment has shown considerable growth over the last one year. The present government emphasis on infrastructure has given fresh impetus to the construction industry. Our performance has been encouraging and we are all set to touch a record number of sales this year.''

Certainly, the landscape in the Asian region is fast changing. In India if the construction industry has to grow at about 15 per cent it is estimated that the derived demand for infrastructure has to grow at 35 per cent. And the construction industry has a multiplier effect on the economy.

Brimming with such hope, the Confederation of Indian Industry which has put up this impressive show, plans to organise one every two years. This year Excon has focussed itself on technology in construction equipment industry and financing, both key factors, and the theme is ``facilitating infrastructure growth''. The best known names in the equipment manufacturing industry, suppliers to manufacturers and asset financing institutions have come together to ensure that the industry has a sustained accelerated growth.

Karnataka, which accounts for nearly 80 per cent of the value of construction equipment manufactured in the country, will continue to be the hub for the equipment industry. With more and more emphasis on deploying the right kind of equipment becoming crucial, the road ahead for the industry should be a cemented one, so to say.

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