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Road cos hit fast lane on govt spend

DNMUM400827 | 11/15/2017 | Author : Sumit Moitra | WC :409

Construction equipment suppliers see rise in demand

Kolkata: Construction equipment sector is on a roll following the massive government push on roads through projects like Bharatmala for highway construction and Pradhan Mantri Gram Sadak Yojana (PMGSY), which aims to improve rural connectivity.
The investment in road sector is expecting yearly growth of 20% over the coming years, triggering demand for construction machinery and vehicles.
“Investment cycle has started with road sector construction equipment industry to grow at a compounded annual growth rate of 20%-plus,” Srei Infrastructure Finance officials said during the company’s second quarter earnings presentation.
In August and September this year, the construction equipment industry grew 25-30% and the momentum
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