INDORE: Sales of construction equipment are expected to increase by about 10 per cent in the next fiscal due to the government focus on infrastructure development and increased allocation for infrastructure projects that is likely to drive the market for tippers, loader backhoe and vibratory compactors among others.The demand for heavy commercial vehicles is likely to jump this year due to higher construction and mining activity in the rural as well as urban areas, development of roads, bridges, railway stations, airports and highways.Sunil Kalyankar, HR head at a construction equipment manufacturing unit at Pithampur said, "In coming months infrastructure projects will go up as so as the demand for construction equipment. Increased construction activity of roads, highways and other projects will spur the demand for construction equipment."In the Union budget, the government has increased the focus on rural economy and infrastructure. The government has increased budget allocation for highways from Rs 57,976 crore to Rs 64,900 crore in 2017-18.The government has proposed 2,000 km of coastal connectivity roads for construction and development. Select airports in Tier-2 cities will be taken up for operation and maintenance under PPP mode. Anuj Kathuria , president, Global Trucks, at an Indian automobile manufacturing firm said, "We are expecting that the market share of our medium and heavy commercial vehicle will increase by 5 to 30 per cent. Demand for tippers will increase and we have already started receiving orders."Kathuria said that the boost to the infrastructure projects by the government will increase the demand for tippers in the country.Kalyankar said, "Madhya Pradesh is going aggressive on infrastructure development. Roads and highway projects are in full swing in the state."Industry participants said that purchasing machinery from Madhya Pradesh is comparatively cheaper than other states until the implementation of GST due to absence of Octroi in the state.

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