In order to introduce a separate regulatory framework and Act for off-highway equipment, the government is going to bring legislation for construction equipment manufacturing (CEM). The proposed legislation similar to the Central Motor Vehicle Rules which soon be placed before Parliament for its enactment, will be for regulations for construction equipment which are not wheeled and for use of spurious parts.
Department of Heavy Industry Secretary Girish Shankar has said that they have to introduce a friendlier tax structure to introduce a separate regulatory framework and Act for off- highway equipment and they have already drafted a legislation for CEM. He also said that the government is setting up the experience centre for advanced manufacturing as 4.0 industrial revolutions is already there.
He elaborated that the legislation is required because the industry has to gear itself towards quality and adoption of the right technology and discourage use of spurious spare parts. He added that his ministry has also proposed allowing the use of external commercial borrowing (ECB) to finance domestic equipment, excluding construction equipment in future FTAs, including locally produced construction equipment in export market access incentives and developing a dedicated R&D and advanced test facility.
Shankar added that the demand for construction services is expected to rise manifolds due to several factors like massive expansion of the infrastructure sector, industrialization, urbanization rise in disposable incomes and various government. He also said that in the next three years they are going to invest around 1 trillion $ in infrastructure sector.