PLI push needed to manufacture critical component for road equipment: Ammann India MD

Ammann India's Managing Director Dheeraj Panda urged the government to expedite the Production Linked Incentive (PLI) scheme to bolster India's road construction equipment industry. While PLI has already benefited electronics manufacturing, its impact on the sector is yet to be fully realized. Panda highlighted that the West Asia crisis has also affected the industry due to bitumen shortages and temporary site closures, which have yet to return to pre-March levels.

Ammann India, a subsidiary of the Swiss-based Ammann Group, manufactures road equipment such as asphalt plants and compactors, with some products being 100% localized while others are between 90-93% localized. However, India still lacks a robust vendor base for precision components like hydraulic pumps and engine injectors, which require extremely tight tolerances.

Panda emphasized the need for improved research and development capabilities and quality components to ensure real manufacturing growth in the country. He noted that while highway construction has slowed in recent years, India still requires more roads to utilize its potential, as existing roads will need maintenance. The government has built approximately 7,000 kilometers of highway annually over the past decade, and there are still about 70,000 kilometers that need asphalt plants or pavers for upkeep.

India also needs to build more roads, including rural connectivity, ensuring the road sector remains in demand. Panda attributed the current execution issues in road design to a lack of proper implementation rather than the design itself, which meets global standards.