Higher infra spends boosts construction equipment volumes

08 Mar 2021 CW Team

Accordingly, the agency revised its outlook on the construction equipment sector from negative to stable, following a strong scale up in volumes.

Earlier, ICRA had predicted that the domestic CE industry might see moderate volume growth, despite zero sales volume in the April-June period on account of the nationwide lockdown, as dealers had reported a rebound in demand in the second quarter of the financial year 2020-21.

ICRA's forecast, which is based on a survey of 13 CE dealers from across the country, had also stated that most dealers expect a 5-10% hike in prices next fiscal on account of new emission norms, which are to come into effect from April 2021 for the CE industry.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

As per the agency, factors such as a sharp increase in the awarding and execution pace of road construction, increased focus on rural infrastructure, strong rural volume off-take for equipment on the back of second consecutive good monsoon, improving demand from railway and mining segments, and the regular payment flow from the government to contractors has supported healthy revival in industry volumes over the last few months.

Besides, demand has also been backed by steady inflows from the central government on infrastructure spend, particularly on roads, even though state infrastructure expenditure has been severely curtailed and diverted to the pandemic management.

The agency pointed out that continued limited fiscal bandwidth with state governments to invest in infrastructure and the price hikes following the upcoming emission norm change in April 2022 as two critical demand headwinds in the coming quarters.

ICRA told the media that state governments are key contributors to the infrastructure activity in the country. It added that modest growth in SGST collections, delays in receipt of GST compensation, and the reduction in the central tax devolution to the states in FY2020 below the level budgeted by the government have complicated the liquidity management of the state governments.

Image Source

Also read: ICRA predicts construction equipment volume growth in CY2021

Also read: CE market to pick up in long term

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Investment Information and Credit Rating Agency (ICRA) told the media that heightened focus on infrastructure spends, particularly in the road infrastructure segment, has led to a sharp spike in construction equipment (CE) volumes since July 2020. Accordingly, the agency revised its outlook on the construction equipment sector from negative to stable, following a strong scale up in volumes. Earlier, ICRA had predicted that the domestic CE industry might see moderate volume growth, despite zero sales volume in the April-June period on account of the nationwide lockdown, as dealers had reported a rebound in demand in the second quarter of the financial year 2020-21. ICRA's forecast, which is based on a survey of 13 CE dealers from across the country, had also stated that most dealers expect a 5-10% hike in prices next fiscal on account of new emission norms, which are to come into effect from April 2021 for the CE industry.4th Indian Cement Review Conference 202117-18 March Click for event info As per the agency, factors such as a sharp increase in the awarding and execution pace of road construction, increased focus on rural infrastructure, strong rural volume off-take for equipment on the back of second consecutive good monsoon, improving demand from railway and mining segments, and the regular payment flow from the government to contractors has supported healthy revival in industry volumes over the last few months. Besides, demand has also been backed by steady inflows from the central government on infrastructure spend, particularly on roads, even though state infrastructure expenditure has been severely curtailed and diverted to the pandemic management. The agency pointed out that continued limited fiscal bandwidth with state governments to invest in infrastructure and the price hikes following the upcoming emission norm change in April 2022 as two critical demand headwinds in the coming quarters. ICRA told the media that state governments are key contributors to the infrastructure activity in the country. It added that modest growth in SGST collections, delays in receipt of GST compensation, and the reduction in the central tax devolution to the states in FY2020 below the level budgeted by the government have complicated the liquidity management of the state governments. Image Source Also read: ICRA predicts construction equipment volume growth in CY2021 Also read: CE market to pick up in long term

Real Estate

05 Sep 2025

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Infrastructure Transport

05 Sep 2025

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Infrastructure Transport

05 Sep 2025

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..