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Growth of construction equipment sector falls to 10%: ICEMA President

04 Feb 2019 Evaluate

Expressing worries, a construction equipment makers' body, Indian Construction Equipment Manufactures' Association (ICEMA) President Arvind Garg has said that growth of the construction equipment sector declined to 10 percent, after liquidity crisis gripped NBFCs following the IL&FS default. He further added that the sector was growing at around 20 percent prior to the IL&FS crisis.

Arvind Garg underlined the facts and figures related to the sector, noting that almost 90-95 percent of construction equipment is financed. NBFCs are the largest players in this sector with about 70-75 percent share of financing. Besides, he pointed out that lenders themselves were now facing liquidity challenges, so they have become cautious about lending.

However, ICEMA President mentioned about the efforts being taken by all the stakeholders to overcome this crisis and said that the same will be eased by March if there is no stress in the system or other NBFCs.

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