Construction equipment manufacturers are worried about the possible dumping of surplus and used equipment into the domestic market.
With the devaluation of the Chinese currency, there is a possibility that surplus construction equipment from China might be dumped here, according to Anand Sundaresan, President of Indian Construction Equipment Manufacturers’ Association (ICEMA).
The mining industry, which already has a high volume of imported goods, will be the worst affected and there is a likelihood that this could hit earth moving equipment as well, according to Sundaresan. In addition, the industry also faces the unregulated flow of imported second-hand equipment. He said that though we cannot stop brand new equipment from coming into India, the flow of re-conditioned equipment should be regulated.
The construction equipment market is about 18,000 crore and provides direct and indirect employment to about 5 lakh people Sundaresan said the Association is discussing with the Centre to formulate a plan in another 6-12 months regarding Smart cities initiative. ICEMA is collaborating with the Centre to set up a separate Test and Certification Centre for the construction equipment industry.
The construction equipment industry, which comes under the Department of Heavy Industries (DHI), is governed by the Central Motor Vehicle Rules. But a separate set of rules are needed for construction equipment, as not all construction equipment vehicles ply on the road, and vehicles working off-highways too, are not regulated. The draft regulation and Act, for governing off-highway vehicles, will be submitted to the DHI by December 31.
Infrastructure Equipment Skill Council, a part of the ICEMA, will tie-up with 1,700 ITIs to train the 20 lakh operators and maintenance personnel over the next 10 years.