EXCON 2013 highlights Indian construction industry’s long-term growth potential

Largest-ever exhibitor participation

Excon 2013, south Asia’s biggest exhibition of construction equipment (CE) organised in Bangalore by the Confederation of Indian Industry (CII) during  November 20-24 was a runaway success with the participation of more than 730 exhibitors reaching out to over 35,000 business visitors. With its theme ‘Propelling Sustainable Infrastructure Growth’, the exhibition was joined by 18 countries with country pavilions from Germany, Japan, Italy, Turkey, South Korea, Sweden and China.

Excon 2013 was supported by the Ministry of Heavy Industries and Public Enterprises and the Ministry of Road Transport & Highways. Karnataka was the Partner State and the Indian Construction Equipment Manufacturers’ Association (ICEMA) the Sector Partner.

In his address as the chief guest at the inaugural session, Mr. Oscar Fernandes, Minister of Road Transport and Highways, said that Excon 2013 came at a time when there is a downturn all over and that it is heartening to see that CII has been successful in bringing in people from all over the world in such great numbers to showcase India’s achievements in developing such equipments for infrastructural growth. Further, a large number of companies from abroad have enthusiastically participated in the show.

The Minister said management is a very crucial factor in the efficient project implementation, and all large infrastructure projects should have a project management system for their speedy implementation. It is a very poor management if a three-year project takes 10 years for completion. Speedy management also makes a project economically viable and profitable. At present, the Government has started work on several new infrastructure projects, including three airports, two ports, an elevated rail-corridor in Mumbai, and almost 6,000 miles of new roads. It is also planning to build expressways through innovative financing models.

Referring to project funding, he observed: “The Government is also aware that the infrastructure projects often suffer from lack of funding or are subject to many conditions imposed by lenders. So, the Government has directed lenders to take ‘assets’ into account for funding projects. The emphasis is also on development of maintenance-free roads which initially may cost a little more but in the long run is much more economical.

Electronic tolling is another area where trials are going on. There is the latest technology which helps establish contacts with the toll booth almost a kilometre away for the toll gate to open. This would help overcome major pile-up of traffic at toll gates. There is also a need to strengthen public private partnership (PPP) in the road sector which would act as a critical precursor for sustaining the growth momentum for the economy, Mr. Fernandes added.

In his address as the Guest of Honour, Mr. Ramalinga Reddy, Karnataka Minister for Transport, said: “The Government of Karnataka has close association with CII to promote industries in the State. We have enormous plan for growth across all districts. One such initiative is the Bangalore-Mumbai Economic Corridor”.

Mr. S. Gopalakrishnan, CII President, said that Excon this year attained new heights with 17 per cent growth in the number of participants. The pace of growth in infrastructure in India has not kept pace with demand, and it is a major challenge for the country. Highways, modern bridges, world-class airports, reliable power, and clean water are in short supply. Infrastructure development is a critical enabler for economic growth as the lack of it impedes the country’s GDP growth rate by one-two per cent per annum.

He was of the view that industrial corridors could play a key role in overall development by removing bottlenecks for freight movement between industrial regions and major ports. CII has been engaging both the Central and State Governments and other stakeholders to work towards making PPPs as one of the important means for increasing investments in infrastructure.

In his theme address, Mr. Vipin Sondhi, Chairman, Excon 2013, said: “The scope and reach of Excon has been growing over the years, and today we see the largest industry and visitor participation making it the biggest-ever exhibition of CE not just in India but in South Asia.”

He pointed out that 20 road shows were held in India and abroad to reach out to potential customers. Over 100 new product launches were expected. Infrastructure is critical for economic growth as it alone can increase GDP by two per cent per annum. Several steps have been taken by the Government in the last 12 to 18 months to provide fillip to the sector. The most important among them is setting up of a Cabinet Committee on investment to fast-track some of the big ticket infra projects. Unfortunately, however, its impact is still not felt.

In his concluding remarks, Mr. Sumit Mazumder, CII Vice President, said that that in India construction is the second largest economic activity after agriculture. Construction accounts for nearly 65 per cent of the total investment in infrastructure and is expected to be the biggest beneficiary of the surge in infrastructure investment over the next five years.

“The growth of India’s construction equipment industry is directly linked to the country’s economic growth, since it is driven by increased investments in infrastructure and related sectors. Excon highlights the potential of the construction equipment industry and showcases the opportunities of the entire infrastructure sector of the country”, he added.

Earlier, in his welcome address, Mr. Soumitra Bhattacharya, Chairman, CII Karnataka, said there is an urgent need to increase public spending substantially and at the same time create an investment-friendly environment to encourage greater private sector participation in creation of infrastructure. “Excon very much falls into the purview of the theme. It contributes to both the economy and to infrastructure.”