As we are well aware that sell of any goods item rises when there is demand for a particular product in the market, similarly, the demand of construction equipment only arises when there is an infrastructure development taking place in a particular state or country.
India is a vast country and every state may not require a similar amount of construction equipment, the demand of construction equipment depends how many infrastructure projects are taking place in a particular state and of course the government policies and initiatives play a crucial role for the same.
Recently, the decision of Union Minister for Urban Development Mr. Venkaiah Naidu approved the rates of premium for lands allotted for a different purpose in National Capital will surely boost the infrastructure development in Delhi.
Government has slashed the rate for land required for medical institutions, hospitals, dispensaries, maternity centres for a nominal charge of Rs 1 per annum. Rates for land for DTC Depots and offices reduced from commercial rates to Rs 11,745 per sq km, which were between Rs 1, 82,400 to Rs 6, 72,000 earlier. Land rate for staff quarters of schools and hospitals of Local Bodies have also been reduced by Urban Development ministry.
Rate for land for offices of Government of National Capital Territory of Delhi have been reduced from market rates.
Simultaneously, centre has sanctioned Rs 32,385 crore for the redevelopment of government housing societies and building new five flyovers in Delhi. Flyovers will be constructed with the cost of Rs 658 crore to decongest Delhi’s traffic and projects will be completed in nearly five years of time.
Delhi Government has a huge budget for education, health and transportation, after the slashing the rate of the DDA land, it will help the state government to implement its plan and construct educational institutions, roads, bridges, hospital, clinics and other, to construct these structures, city will require the huge amount of construction materials, construction equipment and manpower.
Last year in October, Delhi Chief Minister Mr. Arvind Kejriwal had announced to redesign over 1,200 km of roads in National capital at a cost of about Rs 5,000 crore on the line European cities to encourage public transport.
Under the Delhi Master Plan-2021, it is decided to make Delhi a world class city and global metropolis, for the same major infrastructure and housing development will take place in the city with the aim of accommodating rising population, strengthening infrastructure of the city, redevelopment of congested areas and creation of more open space in the city.
USD 100 billion of Delhi-Mumbai industrial corridor and extension of Delhi metro rail plan to nearby towns to Meerut, Alwar, Panipat, Sonepat and other locations will boost the major demand of CE products in Delhi region .
Construction of retail assets on 23 acres of Delhi Airport land and other commercial and office space in the city and construction of warehousing after the rising demand from e-commerce players will also play crucial role in encouraging CE demand.
In June 2016, Off-Highway Research report projected that investment in infrastructure by the Indian government will boost the backhoe loader sales in coming years and sales is estimated to rise by 32% by 2020.
As infrastructure development takes place in National Capital, it will boost the demand of overall construction equipment including Earthmoving, Material handling, Concrete and Road equipments in Delhi.
Source: Information has been obtained from government release, Off-Highway Research, DelhiCapital.