As the Union government has recently taken policy initiative and the Reserve Bank of India (RBI) reduced interest rate, there are early signs of revival in the infrastructure sector, says the Indian Construction Equipment Manufacturers' Association.
Following nearly two-years of slowdown, construction equipment makers are now more upbeat about order flows as investment is likely to pick up in roads and highways, railways, and ports projects. MF Farooqui, Secretary, Department of Heavy Industry, Government of India said that project completion still takes more time than it does in other comparable countries.
This delay is the single biggest bottleneck in the infrastructure industry. The next key challenges are technology and skill development, said Farooqui, Secretary, Department of Heavy Industry, Government of India.
Farooqui was talking at an event in Mumbai organised by Confederation of Indian Industry. He said that the government has proposed an investment of Rs 200 crore to set up a skill development centre of excellence which will be set up in association with the construction equipment industry body.
Glenville da Silva, vice-president of business development at Asia Volvo Construction Equipment said that all growth needs financing and a bulk of Volvo equipment is financed. India plans to invest a trillion dollar, or Rs 52 lakh crore, over the next five years on infrastructure and construction.