Mining and construction equipment industry to grow by 15-20%: ICRA

12 May 2021 CW Team

The agency said that the first quarter of this year will record equipment demand growth by 45-50%. Further, the agency added 10-12% contraction in FY20 and declined to 39% in the first half of 2020. The mining and construction equipment (MCE) industry is expected to increase by 15-20% in FY21. The economy can have a negative impact due to the Covid-19 crises as observed in April 2021 when demand was comparatively subdued.

However, the overall equipment demand will be increased in 2021, partly due to the low base of 2020. A comparative subdued second quarter in this Covid-19 crisis and the emission-related pre-buy pick-up and post-buy drop in the third and fourth quarter of FY21.

While the Covid 2.0 throws negative surprises in the manpower-intensive construction sector it expects a better-prepared ecosystem, said ICRA.

Further, they added in support to ICRA's equipment demand estimates arising from the Indian government advancing its Build India momentum to counter the economic strike and the adequate liquidity in the ecosystem. Tailwinds from any pick up in state capital expenditure, related to the pullback in FY21, and strong production activity picking up in other sectors.

Vice-President and Co-Group Head of ICRA Pavethra Ponniah said that demand can be hit by the Covid second wave limiting mobility and equipment utilisation for an extended period.

Dealer checkpoints predicted a more subdued 0-5% volume increase in FY22 against ICRA's expectations of a 5-10% volume increase.

ICRA said that it anticipates demand growth by 15-20% in 2021 and expects to sustain in 2022 and 2023, before diminishing in 2024 pre-and post-the general elections during April-May 2024.

Image Source

Also read: Covid-19 second wave may not impact overall construction activities: ICRA

Also Read: Coal India’s fuel allocation via spot e-auction surges 43% in FY21

Investment Information and Credit Rating Agency of India Ltd (ICRA) told the media that the mining and construction equipment industry is expected to grow by 15-20% in this fiscal year although the stressed economy due to the Covid-19 crisis can have sudden negative effects. The agency said that the first quarter of this year will record equipment demand growth by 45-50%. Further, the agency added 10-12% contraction in FY20 and declined to 39% in the first half of 2020. The mining and construction equipment (MCE) industry is expected to increase by 15-20% in FY21. The economy can have a negative impact due to the Covid-19 crises as observed in April 2021 when demand was comparatively subdued. However, the overall equipment demand will be increased in 2021, partly due to the low base of 2020. A comparative subdued second quarter in this Covid-19 crisis and the emission-related pre-buy pick-up and post-buy drop in the third and fourth quarter of FY21. While the Covid 2.0 throws negative surprises in the manpower-intensive construction sector it expects a better-prepared ecosystem, said ICRA. Further, they added in support to ICRA's equipment demand estimates arising from the Indian government advancing its Build India momentum to counter the economic strike and the adequate liquidity in the ecosystem. Tailwinds from any pick up in state capital expenditure, related to the pullback in FY21, and strong production activity picking up in other sectors. Vice-President and Co-Group Head of ICRA Pavethra Ponniah said that demand can be hit by the Covid second wave limiting mobility and equipment utilisation for an extended period. Dealer checkpoints predicted a more subdued 0-5% volume increase in FY22 against ICRA's expectations of a 5-10% volume increase. ICRA said that it anticipates demand growth by 15-20% in 2021 and expects to sustain in 2022 and 2023, before diminishing in 2024 pre-and post-the general elections during April-May 2024. Image Source Also read: Covid-19 second wave may not impact overall construction activities: ICRA Also Read: Coal India’s fuel allocation via spot e-auction surges 43% in FY21

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Real Estate

17 Dec 2025

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

Real Estate

17 Dec 2025

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..