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 Urban

17 Sep 2025

ICMM CEO Rohitesh Dhawan Visits Hindustan Zinc

Hindustan Zinc, India’s only and the world’s largest integrated zinc producer, hosted Rohitesh Dhawan, President & CEO of the International Council on Mining and Metals (ICMM), at its flagship Sindesar Khurd Mine (SKM) in Rajasthan. The visit follows Hindustan Zinc’s induction as the first Indian company into ICMM, marking a significant milestone for India’s mining sector on the global sustainability stage.Dhawan, accompanied by run Misra, CEO of Hindustan Zinc, and the senior leadership team, toured Sindesar Khurd Mine – the world’s fourth-largest silver-producing mine – to ..

Infrastructure Urban

17 Sep 2025

Amit Gupta Appointed CFO of Vedanta Jharsuguda Unit

Vedanta Aluminium has announced the appointment of Amit Gupta as Deputy Chief Financial Officer of its aluminium business and Chief Financial Officer of its Jharsuguda unit in Odisha.Gupta has been associated with the Vedanta Group since 2018, beginning as Group Head – FP&A at Vedanta Resources. With over two decades of cross-sector experience, he brings strong expertise in financial strategy, project finance, and business transformation.Prior to this role, he served as CFO of Bharat Aluminium Company (BALCO), where he led finance operations for more than four years. He has also held sen..

Infrastructure Energy

17 Sep 2025

Adani Power To Build 2,400 MW Plant in Bihar

Adani Power on Saturday (September 13, 2025) announced plans to set up a 2,400 MW ultra super-critical power plant in Bihar at an investment of $3 billion (around Rs 26.48 billion).The company has signed a 25-year Power Supply Agreement (PSA) with Bihar State Power Generation Company Ltd (BSPGCL) to supply electricity from the project, which will be located at Pirpainti in Bhagalpur district.The PSA follows a Letter of Award issued by BSPGCL to Adani Power on behalf of North Bihar Power Distribution Company Ltd (NBPDCL) and South Bihar Power Distribution Company Ltd (SBPDCL) in August. Adani P..