The Hindu : Karnataka / Bangalore News : ECE earning reaches $ 2.3 billion

Online edition of India's National Newspaper
Thursday, Nov 15, 2007
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Karnataka

Karnataka - Bangalore

ECE earning reaches $ 2.3 billion

Special Correspondent

BANGALORE: The Earth moving and Construction Equipment Industry (ECE) in India has recorded a business of $ 2.3 billion in 2006-07 and if the present growth pattern continued in next eight years, the industry will have an estimated business of $ 12 billion, according to a study by the Confederation of Indian Industry (CII) and McKinsky.

The “Study on Indian Construction Equipment Industry” was released by Governor Rameshwar Thakur at the inaugural session of the five-day fourth Indian Construction Equipment and Construction Technology Trade fair – Excon 2007 here on Wednesday.

Presenting the highlights of the study, managing director of McKinsey Adil Zainulbhai said there was scope for large investments in infrastructure and allied fields, including the earth moving and construction, particularly as the industry was envisaged as an engine of economic growth.

The study estimated that a planned investment of $ 1 trillion would take place in the next eight years in infrastructure, he added. The bulk of this investment would be in irrigation, roads and mining, he said.

Earlier in the inaugural session, chairman of Excon 2007 organising committee Vipin Sondhi said in the 11th Plan period there could be scope for investment of Rs. 490 billion in the infrastructure sector. In the Plan period, 2,00,000 km of roads, 10,300 km of railway tracks and facilities to produce 70,000 MW of power were likely to be created.

Vice-chairman of the CII Southern Region P.K. Mohapatra said that more and more corporate players were entering construction industry. On the other hand, the construction industry was feeling the shortage of workers despite the country having 30 million workers. He said the ideal situation for the industry was if it had five million more construction workers with 15 per cent of new workforce joining the industry every year.

Mr. Thakur’s address was read out as he was indisposed. His message highlighted the need for improving infrastructure at a time when the country was on the threshold of tremendous economic growth in all sectors.

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