Engineering conglomerate Larsen & Toubro (L&T) on Monday said it has won multiple orders for the supply of mining equipment to coal, cement and iron ore sectors.
In its statement on Monday, L&T announced new orders to supply 90 units of Komatsu mining equipment to state run miner Coal India’s subsidiaries, infrastructure companies engaged in the coal sector and clients in the iron ore and cement sectors.
“These orders are for the supply of 66 units of Komatsu 100 tonne and 60 tonne dump trucks, 15 units of Komatsu wheel loaders and 7 units of Komatsu hydraulic excavators and allied equipment,” the company said. It added, the scope includes supply of equipment and maintenance contracts for supporting operations over three to four years.
S N Subrahmanyan, managing director and chief executive officer (CEO) of L&T, said, “(These orders are) a strong indication of the revival taking place in the mining industry, driven by the progressive and supportive policies of the government.”
Rating agency ICRA in a separate note on Monday said, a dealer survey finding indicates that most construction equipment (CE) dealers expect a volume growth in FY21. “The findings indicate that 85 per cent of the dealers expect to register volume growth in FY21 as opposed to 50 per cent of the dealers expecting more than 15 per cent volume de-growth during a similar survey undertaken in April 2020,” ICRA said.
The agency conducted a survey of 13 CE dealers, spread across the country in November 2020. The survey findings found that while the industry experienced significant volume contraction during the June quarter, dealers in most states have reported strong revival in volumes from the quarter ended September.
”Regular fund flow from the central government has supported demand from National Highways Authority of India (NHAI), Pradhan Mantri Gram Sadak Yojana (PMGSY), irrigation projects and rural infrastructure. Further, a steady pick-up in activity under the mining segment has also supported volumes from September quarter onwards,” the report said.