Association News

New Highway Projects boost Indian construction industry.

Press Release Summary:

Nov 19, 2012 - National Highway Authority of India (NHAI) awarded about 4,375 km of roads in first 9 months of 2012, which can be compared against 4,553 km during 2011, 3,338 km during 2010, and 643 km in 2009. Q3 of 2012 saw ~1,898 km of projects awarded. Projects for road construction sector were awarded under public-private partnership programs, and Indian construction industry is surging via flow of funds and EPC (engineering, procurement, and construction) contracts in 2012.

Association of Equipment Manufacturers - Milwaukee, WI

Original Press Release

New Highway Projects Boost Indian Construction Industry

Press release date: Nov 07, 2012

• National Highway Authority of India (NHAI) awarded 4,375 kilometers of roads in the first nine months of 2012
• Projects of INR 3 lakh crores (US$ 70 billion) give a boost the construction industry
• Construction industry gears up to showcase their developments and innovations at bC India in February 2013 in Mumbai

After a slowdown in road projects last year, the road construction sector in India has picked up in 2012. With NHAI awarding new projects under the public-private partnership programs and the projects execution picking up from last year, the Indian construction industry is looking at making up for lost time with a flow of funds and EPC (engineering, procurement and construction) contracts in 2012. The effect of the sudden surge in demand for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles is being witnessed in the participation of Indian and global players at bC India - A BAUMA CONEXPO SHOW, the International Trade Fair of the construction industry, that expects to feature around 700 exhibitors and over 40,000 trade visitors from around the world.

The NHAI awarded about 4,375 kilometers of roads in the first nine months of 2012, as against 4,553 kilometers during 2011, 3,338 kilometers during 2010 and 643 kilometers in 2009. The third quarter of 2012 itself saw about 1,898 kilometers of projects being awarded.

Notably, the new road projects are part of the Rs. 3 lakh crore (US$ 70 billion) National Highways Development Program (NHDP) aimed at developing 50,000 kilometers of national highways in seven phases by 2015. Phase I & II comprises 14,145 kilometers of connecting and upgrading of the highways between the four metropolitan cities – Mumbai, New Delhi, Chennai and Kolkata – also called The Golden Quadrilateral (GQ); connecting Srinagar with Kanyakumari; Silchar with Porbandar, twelve major ports and several other important national highways. Phase-III involves upgradation of 12,109 kilometers of national highways between state capitals, important tourist places, and economically important areas. Phase IV comprises two-laning of 20,000 kilometers of single/intermediate/two lane National Highways. Phase V comprises upgradation of 6,500 kilometers of existing four-lane highways and other selected stretches. Phase VI develops 1,000 kilometers of fully access-controlled expressways, and Phase VII will construct stand-alone ring roads, bypasses, grade separators, flyovers, elevated roads, tunnels, road over bridges, underpasses, and service roads across the country.

As the market gears up to the sudden surge of new road projects, EPC contractors and construction equipment companies are struggling to maintain their order-book growth. Many are preferring to enter the PPP format by undertaking projects on build-operate-transfer (BOT) basis and several are forming special purpose vehicles (SPVs) to execute projects.

Hectic project management, equipment hiring and sub-contraction are leading construction companies to look for technological advanced and efficient solutions for project execution. The sector is showing increased interest in ready-made platforms that share technology updates in construction equipment from across the world. Indian and international construction equipment players are hence exhibiting at the BAUMA CONEXPO SHOW - bC India 2013, to showcase their equipment and attract buyers from the Indian construction industry.

Scheduled from 5 to 8 February 2013 at the Bandra Kurla Complex in Mumbai, bC India is expecting an increased participation from construction companies. The show’s 2011 premiere had attracted a total of 508 companies from 36 countries and close to 25,000 trade visitors from 71 countries. This year though, the show, spread over 150,000 square meters, will host around 700 exhibitors from around the world and an expected number of around 40,000 trade visitors from India and its neighboring countries.

Looking at participation at bC India, it is clear that new domestic companies are planning to make forays into road construction, and Indian market will witness entry of international companies. With over 90 players having pre-qualified for NHAI projects, indicating a highly competitive scenario, the road sector, and resultantly the construction industry in general, is expected to undergo changes in the next few years.

Further information:

About the BAUMA CONEXPO SHOW - bC India
The BAUMA CONEXPO Show - bC India, International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles, takes place from 5 to 8 February 2013 at the Bandra Kurla Complex in Mumbai. The show’s premiere in 2011 attracted a total of 508 companies from 36 countries and 24,823 visitors from 71 countries. The BAUMA CONEXPO Show – bC India is a joint venture between Messe München International (MMI) and AEM, the North-American Association of Equipment Manufacturers.

Messe München International
Messe München International is one of the world´s leading trade show companies. In Munich alone it organizes around 40 trade shows for capital and consumer goods, and key high tech industries. Each year more than 30,000 exhibitors and around two million visitors take part in the events held at Messe München exhibition center,  the ICM – International Congress Center München, and in the MOC Veranstaltungscenter München. The leading international trade fairs of Messe München International are all FKM-certified, i.e. exhibitor and visitor numbers and the figures for exhibition space are collected in line with agreed standards and independently audited on behalf of the FKM (Gesellschaft zur Freiwilligen Kontrolle von Messe- und Ausstellungszahlen), a society for the voluntary monitoring of fair and exhibition statistics. In addition, Messe München International organizes trade shows in Asia, Russia, the Middle East, South America and South Africa. With eleven affiliates abroad – in Europe and in Asia – and over 60 foreign representatives actively serving over 90 countries, Messe München International has a worldwide business network. The Group also takes a pioneering role as regards sustainability: It is the first trade-fair company to be awarded energy-efficiency certification from the technical inspection authorities TÜV SÜD.

About the    Manufacturers (AEM)
AEM is the North American-based international trade group representing the off-road equipment manufacturing industry. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China. It represents more than 850 companies in the agriculture, construction, forestry, mining and utility sectors. AEM has an ownership stake in and/or manages several world-class exhibitions, including CONEXPO-CON/AGG, one of the world's largest gathering places for the construction and construction materials industries.