“We have indigenously designed and developed higher capacity mining equipment using the latest technology as per the requirement of the Indian mining industry and feedback received from the customers says MV Rajasekhar, Director (Mining & Construction), BEML Limited”

During the pandemic too, the government remained keen on executing state sponsored infrastructure projects to aid the road/mining sector as also the road/mining equipment manufacturer, what kind of impact did it have on your business?
The mining equipment and spares business was not impacted due to Covid-19 pandemic; as the mining industry especially coal mining continued to be in production, which is essential service. Initially, during the lockdown, there were issues related to the supply chain but now the situation is improving. The construction equipment business initially saw some impact during the Q1. But the situation is gradually improving and is expected to cross pre-Covid levels by year-end. Hopefully, we are likely to exceed the mining and construction equipment business compared to last year figures, at the end of the current financial year. 

With the stress on indigenous technology and manufacturing, how are things going to change for road/mining/ construction equipment manufacturers in the coming year?
The ‘Make in India’ and vision of ‘Atmanirbhar Bharat’ of the Government of India (GoI) will improve business volumes of Indian manufacturers. The stress on indigenous technology and manufacturing will achieve the following objectives: 

• Reduce dependency on imported mining and construction equipment 
• Technology and skill development in the country 
• Local employment generation 
• Contribute to the country’s GDP 
• Saving of precious foreign exchange
• Self-reliant India 

Moreover, BEML has achieved indigenization levels of over 90 per cent in mainline mining and construction products. Due to the purchase preference given by GoI to the local manufacturers and restricting Rs 200 crore and below value procurement to the domestic sector, it will improve business prospects for BEML and other domestic manufactures. In some of BEML’s higher capacity mining equipment, which was developed recently, the import content is 30~45 per cent. Efforts are being made to indigenise the same and reduce the import content. BEML is working towards ‘Zero Import’ policy and efforts are on for indigenous development of items that are being imported at present.

What kind of strategies do you have in place to kick start the year 2021 on a positive note? What kind of products do you feel will witness demand?
BEML has indigenously designed and developed higher capacity mining equipment using the latest technology as per the requirement of the Indian mining industry and feedback received from the customers. These equipment are: 

• Dumpers of 150T & 205T Class 
• Hydraulic Excavators 180T Class (diesel and electric version) 
• Bulldozer of 850 HP 

Some of the indigenously developed and manufactured higher capacity mining equipment are deployed in the field under trial orders which are on the verge of completion. All these higher capacity equipment are presently being imported and there is a very high foreign exchange outflow. The future projections from the mining industry will see an increase in demand for this higher capacity equipment, which will enable BEML to improve its business volumes. Further, efforts are on to indigenously develop and manufacture other higher capacity mining equipment. With the government’s emphasis on infrastructure development in the country; we expect that there will be a higher demand for the following mining and construction equipment in the coming years. Mining Equipment: Dumpers, Hydraulic Excavators, Crawler Dozers Construction Equipment: Hydraulic Excavators, Crawler Dozers, Motor Graders, Wheel Loaders and Backhoe Loaders 

According to you, how much time will be required for a full market recovery, in the meantime, what can equipment manufacturers do to ensure their business remains sustainable?
With GoI’s plan to increase coal and steel production, infrastructure development, energy sector, road sector, urban (smart cities, MRTS, affordable housing) railways etc. and a vision to become 5 trillion dollar economy by 2024-25; there will be a huge opportunity and mining and construction business will see very high growth in the coming years. 

To make this a sustainable business model the equipment manufacturers will have to ensure the following: 

• Indigenous development of equipment in line with the ‘Make in India’ policy of GoI. • Development and manufacture of equipment as per market requirement 
• Adoption of latest technology according to the trend 
• Robust and suitable supply chain management 
• Local skill development through training at operational and maintenance levels 

When it comes to releasing payments for projects on the verge of completion, how can this process be streamlined further so that on-time payments are received?
Due to the recent Covid-19 pandemic, there was an impact on receivables but now the situation is improving.
For streamlining the process and ontime receipt of payment, the industry will require the following: 

• Mobilization of funds to be given on priority to kick-start the projects which have been awarded. 
• Government has to provide sufficient funds for the projects for timely payment to contractors.