Rs.2.41 Lakh Cr Investments in Transport Infrastructure Would Drive The Sales of Road Building, Earthmoving Equipment

The investments in infrastructure sector are the key growth drivers for the construction equipment industry. The road building and earth moving equipment are expected to drive overall Indian construction machinery market in 2017-18 on the back of big investment announcement for transportation sector in Budget.

India’s Finance Minister Mr. Arun Jaitley gave transport sector the ‘Uber’ moment by allocating a huge Rs. 2.41 lakh crore to build and modernize country’s Railways, Roads and Ports sectors in 2017-18. The investment would help in boosting the demand for road building and different types of earth moving and material handling equipment across the country during the period.

In India, Earthmoving machinery and road building equipment alone consist around 78 percent of market share of Indian construction equipment industry. The Rs. 2.41 lakh crore proposed investments in transport sector indicate both segments would surely drive the market in 2017-18.

For the road sector, Mr. Jaitley has allocated Rs. 64,900 crore for construction and expansion of Highways and also 2,000 km of coastal connectivity roads will be developed in the next financial year.

In addition, The Government has allocated a sum of Rs. 19,000 crore towards Pradhan Mantri Gram Sadak Yojana (PMGSY) in 2017-18 to complete the current target under PMGSY by 2019, and together with the contribution of States, an amount of Rs. 27,000 crore is to be spent on PMGSY in 2017-18. The pace of construction of The Pradhan Mantri Gram Sadak Yojana (PMGSY) has accelerated to reach 133 km roads per day in 2016-17, as against an average of 73 km during the period 2011-2014.

This investment on building rural roads and highways would create the demand for different road building equipment like Motor Grader, Chip Spreader, Cold Planers, Compactor, Paver, Paving Plant, Asphalt Mixing Plant, Road Roller Machine and others. Both new and used road building equipment will witness the demand during the period.

The Railways Ministry will lay down 3,500 km railway tracks in the next financial year, up from 2,800 km in 2016-17 and also announced to redevelop at least 25 stations. The government unveiled the largest-ever rail budget of Rs. 1.31 lakh crore for the next financial year.

In the budget, The Finance Minister said, “A new Metro Rail Policy will be announced with focus on innovative models of implementation and financing, as well as standardisation and indigenisation of hardware and software. A new Metro Rail Act will be enacted by rationalising the existing laws to facilitate greater private participation and investment in construction and operation.”

Commenting on the Budget, Mr. Dimitrov Krishnan, Vice president and Head of Volvo CE India said, “The agriculture, housing, rural development, and infrastructure sectors, in particular, will benefit from the increased outlays set aside for them in this Budget. In particular, with the record INR 3.96 lakh crores allocated to infrastructure, we can look forward to greater activity in the construction of roads, railways, and ports. We can expect high demand for construction equipment and, as a company, Volvo CE is looking forward to play a role in India’s infrastructural development. Overall, this budget is a blueprint for sustainable long-term growth in our country, and execution of these strategies will be key now for the rest of the year.”

The investments of Rs. 2.41 lakh crore for Railways, Roads and Ports infrastructures in 2017-18 are set to drive different kinds of earthmoving equipment such as Backhoe Loaders, Excavators, Skid steer loaders, and others, Material Handling equipment such as Cranes, Tower Cranes, Mobile, Tippers, Haul Trucks and others, and Concreting equipment like Concrete Batching plant, Concrete Mixer, Concrete pumps, Shotcrete Machine and others.

Source: Information has been obtained from GoI

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Budget 2017-18: Record Rs. 3.96 lakh crore Allocation for Infra Set to Drive Construction Equipment Industry

The budget 2017-18 has given the much-needed push to country’s infrastructure sector. The government has announced to invest Rs. 3.96 lakh crore in creating and upgrading the infrastructure of the Asia third largest economy in the next financial year.  In the last budget, the government had allocated the investment of Rs 2.21 trillion for 2016-17.

The government has allocated 18 percent (Rs.3.96 lakh crore) of the total budget allocation, to build and modernize roads, railways, shipping, airports and others. The total expenditure in Budget for 2017-18 stands at Rs. 21.47 lakh crore. The government has made record spending to improve strained infrastructure of the world’s second most populous country.
For the development of the road sector, the government has allocated Rs. 64,900 crore for Highways in next financial year, up from Rs. 57,976 crore in 2016-17. Further, the government has identified the construction and development of 2,000 km of coastal roads to facilitate better connectivity with ports and remote villages.
The government has set a target to build 42 km of roads per day.
For the modernization and up-gradation of railways, Railway lines of 3,500 km will be commissioned in the next fiscal, as against 2,800 km in 2016-17. The government also announced to redevelop at least 25 stations. The total capital and development expenditure on Railways has been pegged at Rs. 1.31 lakh crore for the next financial year.
The allocation for shipping sector has gone up to Rs 1773 crore from Rs 1531 crore in the last budget. The government has allocated Rs 600 crore for Sagarmala programme.
The transportation sector alone has been allocated Rs. 2.41 lakh crore, including Rail, Roads, and Shipping in 2017-18. The Finance Minister said, “This magnitude of investment will spur a huge amount of economic activity across the country and create more job opportunities.”
While speaking on upgradation of Civil Aviation infrastructure, Mr. Jaitley said that the Select airports in Tier 2 cities of the country will be taken up for operation and maintenance in the PPP (Public – Private Partnership) mode.
In the budget, Finance Minister Mr. Arun Jaitley has taken various measures to boost the construction sector of the country. He has given much-needed relief to affordable housing, now the government has decided to grant infrastructure status to affordable housing, the move is expected to attract investors and reduce costs for developers.
Further, the government announced to build one crore houses for houseless and those living in ‘Kutcha’ houses by 2019. For the financial year 2017-18, the allocation for Pradhan Mantri Awaas Yojana (PMAY)-Rural has been increased to Rs 23,000 crore from Rs.15,000 crore in 2016-17, it will give a boost to construction activities in rural India.
The Indian government planned to lay down the Optical Fiber Cables spread over 1,55,000 km and connect more than  1,50,000 gram panchayats with high-speed broadband connectivity by the end of 2017-18.
Commenting on Budget, Mr. Vipin Sondhi, Managing Director & CEO, JCB India Ltd. said, “From earthmoving and construction equipment industry’s perspective, we till now witnessed that the roads and highway sector leading the growth momentum, however to really create sustainable growth, other sectors needed attention. With this budget the focus has broadened and now includes sectors like railways, agriculture and real estate with emphasis on affordable housing. A record investment of Rs. 3,96,135 crore for infrastructure, 1.31 lakh crore for railways is a big boost to the economy and a step in the right direction.”
The government commitment towards the expansion of country’s infrastructure development helped the construction equipment industry in 2016. Last year, the sales of the construction equipment and construction vehicles drove on the back of government investment in various infrastructure projects.
The huge Rs. 3.96 trillion allocations for infrastructure sector is the good news for the construction equipment and heavy machinery manufacturers like JCB, Volvo CE, Tata Hitachi, Komatsu, SANY, Caterpillar, and others. Also, Heavy commercial vehicle (Dumper & Tipper) makers like Tata Motors, MAN Trucks, SSAB, Ashok Leyland, and others will also get benefited from this budget.
The investment would drive the sales of various construction equipment and material handling products like Backhoe Loaders, Excavators, Cranes, Motor Graders, Bulldozers, Skid steer loader, compactor, Paver, Pavement Planer and others. As the projects hit the ground, the used construction equipment will also witness the demand.
Source: Information has been obtained from Ministry of Finance

Volvo CE Unveils Futuristic Construction Equipment, Could Save Fuel UP to 50%

World’s leading construction equipment maker Volvo Construction Equipment ( Volvo CE) known for keeping itself  ahead in innovative technological advancement. On the same line, company has tried to prove its innovative expertise and set a trend in the construction equipment industry.
Now, Engineers at Volvo CE have been working on technologies to provide zero emissions, zero accidents, zero unplanned stops and reduction of energy consumption in its future construction machine.
Recently Volvo CE showcased groundbreaking technology which could transform the construction equipment industry with its futuristic innovations and ready to achieve new milestones in setting up the new trend with this innovative research. The company unveiled the LX1 prototype hybrid wheel loader at Volvo Construction Equipment’s Xploration Forum; this machine has potential to improve fuel efficiency by up to 50%, demonstrations of a prototype autonomous wheel loader and articulated hauler working together, and an electric site solution that showcased the new concept HX1 autonomous, battery-electric, load carrier.
The electric site project aims to transform the quarry and aggregates industry by reducing carbon emissions by up to 95% and total cost of ownership by up to 25%, claim the company.
All of the innovations shown at the Xploration Forum are ongoing research projects.
“At Volvo CE we are developing technologies connected to electromobility, intelligent machines and total site solutions that will benefit our customers and the environment by contributing to increased machine performance, productivity, efficiency, safety and sustainability. Our future products and services will play an important part in building a sustainable society,” said Mr. Martin Weissburg, Member of the Volvo Group Executive Board and President of Volvo CE.
Volvo CE has been always on the forefront when it comes to technological development, every year Volvo group invests hugely in Research & Development to drive the evolution of new innovation in the construction equipment industry. Company organizes Xploration Forum to share its exciting projects and concepts to the world. The company feels, its future offering could transform the construction industry.
Mr. Weissburg explained, “We’ve set ourselves four key technology challenges that we call Triple Zero and 10x: zero emissions, zero accidents, zero unplanned stops and 10x higher efficiency,” explained Weissburg. “We believe that our clear focus on electromobility, intelligent machines and total site solutions will help us achieve these ambitious goals and pave the way for a sustainable construction industry.”
The company explains how the Triple Zero and 10x is useful for its customers:
Zero emissions: Zero emission machines will help make customers’ businesses more environmentally sustainable.
Zero accidents: With pioneering safety innovations, machines could instinctively avoid accidents, generating a completely safe working environment.
Zero unplanned stops: A world without machine breakdowns, where machines predict and plan their own maintenance – making unplanned stops a thing of the past.
10x higher efficiency: The electrification of construction equipment and site optimization will dramatically reduce energy consumption.
Source: Information has been obtained from Volvo CE’s release

Advantages of Buying Used Construction Equipment

equipment-one-stop-collageConstruction business requires huge investment and a major chunk of investment goes for buying heavy construction machinery depending upon the project requirement. Therefore, it is always advisable to minimize the cost of the investment to make maximum profit out of the project.

There are four segments of construction machinery, Earthmoving equipment, Concrete equipment, road equipment and material handling equipment and buying this equipment is very costly affair.

Due to budget constraint, construction companies can’t take risk of compromising on the quality of construction materials, which will ruin the brand value of the company.

However, one option is always open for these construction companies to minimize the investment in purchasing the machinery used in the projects. Instead of investing in the new construction equipment which is necessarily costly affair, one can prefer to buy second-hand construction equipment from various dealer and e-commerce portals which are in the business of used construction equipment.

There are various advantages of buying second-hand construction equipment, which help construction companies to save huge amount of money.

Lower Cost

The new machine eats up huge money of contractors and buying used machine help to reduce the project cost. Second hand construction equipment is always available at lower price and used machine could be a better alternative from a financial point of view, when we plan out the investment for the project.

Avoid depreciation 

Within a first year of buying the new construction equipment, the value of the machine depreciates around 20 to 40 percent, depending on the condition of the machine, so your resale value is automatically reduced. Thereafter, the depreciation is gradual and not substantial. However, used construction equipment hold resale value, even you sell after a few years or after your project completion. Therefore, potential loss in selling used equipment is lesser as compared to selling new equipment.  

Choice and Flexibility 

Due to the emergence of e-commerce, many companies offer the services of buying and selling used equipment online, which give various options/choice for the buyers to buy equipment in their location or in budget.  When someone intends to buy used equipment he/she has flexibility to choose machine from their favorite brand, which one can’t have same flexibility when go for new machine due to budget constraint.  For example, if a small contractor wishes to buy Backhoe loader of JCB but due to shortage of fund he can’t buy the new JCB Backhoe loader, but he still has option to buy the same brand in used equipment.

Technology Concern 

As we are aware most of the construction equipment manufacturers are coming up with the latest technology and if contractors buy new machine they enjoy the features of the latest technology.

However, it does not make a huge difference on a project if someone uses the older version of the machine due to any reasons. The Heavy construction equipment industry has been very slow in adopting the new technologies, so it is not a matter of concern if contractors are using used equipment due to financial crunch.

Therefore, it’s important to make a choice between new and used equipment after taking all the above mentioned points into consideration.

The Feature Of Volvo´S New SD110B Compactor

The Volvo Soil compactors are designed such a way which gives quality, reliability and safety and help you deliver maximum productivity at the job sites and tackle even the most demanding jobs. Earlier this year, Volvo launched the new model of soil compactors called ‘SD110B’. Today we will see the different features of the new soil compactor.
Volvo compactor is one of versatile construction equipment as it is used to compact varying soil and aggregates efficiently and effectively. It is used in various construction projects such as roads, highways, water retention structures, utilities, huge residential projects, industrial and commercial projects.
The new Volvo’s SD110B compactor has maintained the brand legacy of delivering superior performance at job sites. In the new model of compactor, company has added various new features and upgraded the technology to be ahead in the competition. The new SD110B compactor is strong, fast, durable, and driver friendly and fuel-efficient.  The company claims, the consumption of fuel is 20% less as compared to its previous models in the category, which could help the operator to save fuel cost.
Company also claims, the SD110B single drum compactor delivers powerful, efficient performance and has a range of features to ensure outstanding efficiency from operation through to servicing and transportation.
Precise performance
The SD110B is equipped with a premium Volvo D5 engine that meets Tier 3/Stage IIIA requirements, delivering high torque at low rpm for superior performance. In conjunction with Volvo’s ECO mode, it delivers lower emissions and increased efficiency without compromising on power.
Operate with ease
The SD110B features a convenient foldable open ROPS (rollover protection structure) with a roof that can be raised and lowered by the operator without the need for tools. This provides an industry-leading transport height of only 2.3 meters. The roof is mounted on gas spring shocks, allowing for safe operation by a single operator.
The fully adjustable seat slides and turns to enhance visibility and operator safety and comfort, and the ROPS/FOPS certified Volvo cab is pressurized to increase the efficiency of the air conditioning system and prevent dust from entering the operator environment.
Simple servicing
Designed for hassle-free service access, the engine hood lift is electronically controlled for easy and convenient access to the engine. The hydraulic pressure test ports are grouped together remotely and key service check points are grouped on one side to ensure regular maintenance and inspections can be conducted more efficiently – increasing overall productivity and reliability.
Volvo Construction Equipment (CE) is one of the leading construction equipment manufacturers in the World, it manufactures Compactors, Excavators, Wheel loaders, Articulated Haulers and Asphalt Pavers in its manufacturing plant across the globe including India.
Source: Information has been obtained from Volvo CE’s release

John Deere Integrates SmartGrade Technology Into 750K & 850K Dozers

john-deere-850k-smartgrade_1-1024x683Upgradation of the technology is the need of the hour for survival in automation industry, especially in construction industry for smooth and error-free functioning at job sites. On the same line, John Deere one of the leading construction and farm equipment equipment makers in the world has upgraded its SmartGrade technology in its new model of crawler dozers.

After the success of its 700K dozer equipped with SmartGrade launched earlier this year. The company has now integrated SmartGrade grade control technology ‘Topcon 3D-MC2 Grade Control System’ in its 750K and 850K crawler dozers.

Topcon 3D-MC2 Grade Control System is fully incorporated into the machine cabin, structures and software — delivering precise grading performance while eliminating vulnerable external masts and cables.

“The launch of our 700K SmartGrade dozer was a huge hit earlier this year, and many of our customers asked for the grade control technology to be integrated into our larger offerings. The 750K and 850K SmartGrade dozers answer that call. They’re easy to set up and are highly productive earthmoving and grading machines intended for road building, site development and residential building applications. Like the 700K SmartGrade dozer, these models are purpose-built and ready to work the moment they roll off the dealer lot,” said Liz Quinn, product marketing manager, John Deere WorkSight.

The 750k and 850K model of crawler dozers incorporate a PowerTech 6.8-L Final Tier 4 diesel engine with 165 horsepower and 205 horsepower, respectively. Both models feature Eco mode, which automatically adjusts engine power and transmission settings based on load while maintaining ground speed, to help optimize fuel economy.

Highlights of SmartGrade

1 -Auto SmartGrade allows the operator to easily adjust the system when moving the machine from one soil type to another, unlike an after-market system, which often requires the GPS manager to make a trip to the machine to recalibrate the system, particularly helpful to new operators. Auto SmartGrade automatically lifts the blade over heavy loads before track slippage occurs, then returns the blade to grade.

2 – SmartGrade also limits the number of passes required, reducing the pace of wear on the undercarriage. The John Deere SmartGrade dozer is nearly 7 percent more accurate across the entire speed range of the dozer when compared to conventional masted systems, claim the company.

3 -Another benefit of the SmartGrade technology is that machine dimensions are preloaded into the grade control monitor, reducing the time required to calibrate the dozer to about 30 minutes. The easy-to-use system is beneficial to new operators in that it can get them up and running quickly.

4 -The SmartGrade integration into the 750K and 850K dozers also allows for enhanced diagnostics. Having the ability to get the grade control system and diagnostic information over the John Deere JDLink telematics system provides valuable uptime information to customers.

5 -SmartGrade is integrated into the machines, it removes the need to install blade-mounted sensors and components daily, reducing setup time and allowing operators to get to work.

6 -Eliminating external cables to the masts reduces breakage, and the removal of the masts from the blade eliminates vulnerability to damage and theft.

Source: Information has been obtained from John Deere’s release

Mahindra Launches Cloud Platform ‘DiGiSENSE’ to Track Vehicles, Construction Equipment and Tractors

mahindra-digisense.jpgMahindra & Mahindra Ltd, a part of Mahindra Group has launched Mahindra DiGiSENSE, it is a revolutionary technology solution that connects Mahindra vehicles, tractors, trucks and construction equipment to the cloud, opening up a whole new dimension to the experience of vehicle ownership.

The technology empowers owners, fleet operators, drivers, dealers and service teams to access vital information about their vehicles, trucks, tractors or construction equipment on a real time basis from the driver’s seat and afar.

This digitally enabled sensing will be available across Mahindra’s breadth of mobility products (including its Backhoe loader ‘Mahindra EarthMaster’). This launch makes Mahindra, the first OEM (Original equipment manufacturer) in India to integrate its product line-up onto a cloud-based technology platform.

DiGiSENSE will empower customers to digitally build knowledge 24X7 about the performance and location of their vehicles. Drivers can contact emergency breakdown services or pull up a route planner at the touch of a button, fleet owners and dealers can track the location of their vehicles in real time, while remote diagnostics and reports allow service teams to monitor the vehicle’s health and productivity parameters, on a real time basis, said the company.

Speaking at the launch, Dr. Pawan Goenka, Executive Director, Mahindra & Mahindra said, “DiGiSENSE 1.0 is one such effort to adopt technology to develop new ecosystems. It is the first of its kind technology platform which is multi application and multi product enabled. From providing real time data, to tracking performance and productivity of the vehicles, DiGiSENSE will enable customers to control their businesses.”

DiGiSENSE will initially be available in the Jeeto and Imperio in the small commercial vehicles space; the Arjun Novo in the tractor space; the Mahindra Blazo in the heavy commercial vehicles space; and the Earthmaster in the construction equipment space.

It will help the Construction Equipment business reap huge benefits such as improved productivity and reduced operating costs. Construction equipment are extremely expensive machines and many times rented out or sent with a driver. The technology will help the owner to track the machine on a real time basis, it will also update you for Low fuel indication, gives machine usage status, machine health status, remind you when service is due, machine location and its Alert system will help you to track machine performance.

This cloud technology will help truck owner to have better control over their business and money by providing various Trip optimization parameters then and there through mobile app. The technology will help in fleet management, roadside assistance, vehicle tracking, safety indicators, engine management, driver productivity management and also ensures security of vehicle and goods in case of any route violation.

Rajan Wadhera, President and Chief Executive – Truck, Power Train Division and Head – MRV, Mahindra & Mahindra said, “DiGiSENSE is a modular, scalable, flexible and robust connected vehicle platform that has been conceived and brought to life by Mahindra by bringing together an entire ecosystem of stakeholders. We have built in several features into DiGiSENSE and will further integrate other features in the future versions. We are sure this will revolutionize the way our customers will interact with their Mahindra vehicles and will empower them to maximize their efficiencies and effectiveness.”

It is available as a subscription-based service at an affordable price, DiGiSENSE will eventually be available across the entire line-up of Mahindra’s vehicles, said the company.

Source: Information has been obtained from Mahindra’s press release, Digisense website.

mahindra-digisense.jpg

Here’s How Passage of GST Bill Will Drive Material Handling Equipment Market

After Goods and Services Tax (GST) bill passed in the Parliament, the e-commerce and logistics companies will now need huge numbers of warehouses across the country, which will lead to fetch huge investment to set-up number of warehouses in the country. The demands of warehousing in the country have increased in last few years after the emergence of e-commerce business.

As we know, rising number of warehousing will require huge amount of material handling equipment for placing and carrying the goods to one place to another and avoids the damages. Therefore rising number of warehousing in the country will drive further demand of material handling products and manufacturers are likely to see better sales in coming years as more warehouses will start coming up in India.

Passage of GST Bill will now encourage e-commerce, manufacturing companies, Logistics companies to shift to advanced and big size of warehouses across the country. As government allowed 100% FDI (Foreign Direct Investment) in warehouses, would also encourage the foreign players to get into the construction of warehousing. Earlier warehousing was only limited to metro and big cities, now the demand would shift to tier-II and tier-III cities as well, which could lift the sale of popular material handling equipment like Forklift, Conveyors and other.

Property consultant JLL India’s report said, “The existing, top warehousing hubs are Delhi-NCR, Mumbai, Pune, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad. These eight city hubs put together had a cumulative supply of organised Grade-A and Grade-B warehousing space of around 97 million sq ft in 2015 and this is expected to grow to around 116 million sq ft by the end of 2016.”

It further adds GST will result in emergence of new hubs like Belgaum, Bhubaneshwar, Coimbatore, Goa, Guwahati, Indore, Jaipur, Kolhapur, Lucknow/ Kanpur, Ludhiana, Nagpur, Patna, Raipur, Ranchi, Vapi and Vijayawada.

Last month, Amazon India has opened its biggest fulfilment centre in Sonipat, Haryana, the warehouse covers the area of 200,000 sq. ft, and this is Amazon India’s 22nd warehouse in the country. Recently Mr. Ram Vilas Paswan, Minister of Consumer Affairs, Food & public Distribution announced that Central Railside Warehouse Company (CRWC) has planned 10 new warehouses at rail heads. The more warehousing comes up in the country, the sale of material handling products will jump.

As per the media reports, Asia’s leading provider of sustainable urban solutions company, Ascendas-Singbridge Group planned to put separate fund to invest in warehousing segment in India. The company would set up Logistics Park on 50 to 100 acres of land in the vicinity of major cities. There were also reports that, Dutch pension fund manager APG and U.S based company Warburg Pincus are also planning to invest in modern warehouses in India, the investment in warehousing indicate the future requirement of equipment in India in coming years.

Due to rising number of warehousing in India, various material handling products such as Forklift, Conveyors, Stacker, Hand pallet truck, electric towing truck, Movable Dock, Crane, Shelves and other different machinery sell would jump in near future.

As per the report of CARE Ratings, the Indian logistic industry is projected to grow at a Compound Annual Growth Rate (CAGR) of 15-20% during FY16-FY20, the rapid expansion of logistics industry is directly proportional to the rise of warehousing sector.

Sagarmala Programme Will Require Huge Amount of Construction Equipment

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.