As we are aware, the demand of construction equipment only emerges when infrastructure developments occur in any country. In recent times, we have seen almost all the reports based on the demand of construction equipment projected the huge requirement of different types of construction equipment in India by keeping various infrastructure projects in mind, such as roads, ports, railway, airports, smart cities, public transportation infrastructure and others.
Government of India has launched the Sagarmala Programme with the aim of modernising port-led development in the country and exploit the potential of India’s approximately 7,500 km long coastline and 14,500km of potentially navigable waterways.
The programme involves drawing up a National Perspective Plan (NPP) for Port Modernization & New Port Development, Port Connectivity Enhancement, Port-Led Industrial Development and Coastal Community Development. As part of the NPP, total 173 projects have been initially identified across the programme objectives which will result in significant investment in maritime infrastructure, create employment, reduce logistics cost and boost merchandize exports over the next decade.
The port-led developments indicate the requirement of construction equipment in the country. The development would drive the sale of construction machinery in the country and manufacturers could see the rise in their sell in coming future.
As per the official estimates, the ambitious Sagarmala Programme will mobilize more than Rs. 4 lakh crore of investment and will be able to create 1 crore new jobs, including 40 lakh direct jobs in the next 10 years.
For Port Modernization & New Port Development, 50 projects have been identified to increase the port capacity from 1400 MMTPA to 2500 MMTPA by 2025, at an investment of Rs. 1 lakh crore. For promoting port-led industrial development, 14 Coastal Economic Zones covering all the Maritime States and Union Territories have been proposed.
To enhance the port-connectivity to the country’s production and consumption centres, 65 projects have been proposed at an investment of more than Rs. 2 lakh crore. This includes10,000 km of last mile port-connectivity infrastructure, 12 new freight expressways, heavy haul rail corridor to transport coal, new pipelines for transporting crude and petroleum products, development of prioritized inland waterways and new multi-modal logistics hubs, government said the official statement.
Last month (July 20), Union Cabinet has approved the incorporation of Sagarmala Development Company (SDC) under the Companies Act, 2013, with an initial Authorized Share Capital of Rs. 1,000 crore and a Subscribed Share Capital of Rs. 90 crore. The SDC would provide equity support to the project Special Purpose Vehicles (SPVs) and funding support to the residual projects under the Sagarmala Programme.
Government recently said, it has indentified six potential new ports under Sagarmala Programme are; Vadhavan in Maharashtra, Sagar Island in West Bengal, Paradip Satellite Port in Odisha, Enayam an Sirkazhi in Tamil Nadu, Belekeri in Karanataka have been identified and Duggirajupatnam, Andhra Pradesh.
As it is projected Rs. 4 lakh crore of investment mobilize under the programme, various construction equipment such as; Excavators, Backhoe loaders, Cranes, Graders, Batching plant, concrete mixer, Tippers and other different types of construction machinery demand will rise in the country.
Along with port-led development, seven Multi-Modal Logistic Parks (MMLPs) has been also proposed in Chhattisgarh, Madhya Pradesh, Odisha, Telangana, Uttarakhand and West Bengal under Sagarmala Programme.
During recent United States visit of Mr. Nitin Gadkari, Minister for Road Transport and Highways and Shipping, American ports have shown their interest to participate in the port-led development in India, which is to mobilize huge investment.
The port development will not only raise the demand of construction equipment, but also drive the sale of material handling machinery as increased port capacity will require huge amount of material handling equipment to load and unload the goods and container at the ports across the country.
Fork lift truck, Mobile crane, Conveyors, Stackers, Straddle carrier, Ship loaders, Tug-master, Container crane, Front/side loader, Bulk material handling, Automated storage and retrieval system and different other machinery sell would jump after ports will increase its existing capacity.
According Mr. Gadkari, the Sagarmala Programme could save annual logistics cost close to Rs 35,000 crore.