We are poised to address any increase in demand from the mining sector.

Dheeraj Panda,
Director and BU Head Excavator and Mining,
SANY India.

SANY India offers SRT dump trucks that are largely used in large surface mining sites for transportation of OB, coal, iron ore, limestone, bauxite and in quarry segment.

What has been the FDI inflow scenario in the mining sector? How has this impacted the demand prospects of mining equipment and machinery from your perspective?
Mining sector (including fuel, atomic, major and minor minerals) contributes about 2.4% of GDP in India and has a liberalized FDI norm of up to 100% in mining under automatic route. The FDI inflow in the mining segment has been on a rise for the past few years.
These are extremely encouraging signs and the result is an obvious increase in demand for the mining segment equipment. Additionally, the government’s Make in India initiative has eased the process for FDI, encouraging investment in the sector. India also has a vast mineral potential with mining leases granted for longer and stable tenure. This also adds value for players willing to invest in the long run, especially when it is predicted that the demand for various metals and minerals will grow substantially over the next 15 years. SANY India has recently ventured in the mining segment and so far we have received a good response.

Have there been any expansion plans from PSU’s and private players that have given a demand boost for the mining equipment in general; and specifically the range of equipment Sany offers for the mining sector?
If one refers to the ‘Make in India’ information available in the public domain, it is easy to note that the Indian economy is expected to grow by approximately 7% in the years to come. Sectors such as infrastructure and automobiles would receive a renewed thrust, which would further generate demand for power and steel in the country. This is expected to provide a major push to the demand of minerals like coal and iron ore. The growth in the mining sector in terms of production of minerals has significantly improved in comparison to recent past. There has been a notable turn around ever since the government has taken initiative for policy reforms. This turnaround is very much visible in terms of growth in Gross Value Added (GVA) in mining and quarrying sector. The sector grew by 3.6% during 2015-16 and is continuing to grow.

Tell us about Sany’s offerings to the mining sector?
Sany India offers SRT dump trucks that are largely used in large surface mining sites for transportation of
OB, coal, iron ore, limestone, bauxite etc. and in quarry segment. The trucks are equipped with high-strength frame and are nearly 20% stronger than any other product in the same category.The demand is surely on the rise and we expect it to continue in the near future. We are poised to address any increase in demand from the mining sector.

What has been the impact of demonetisation and roll out of GST on the demand-supply scenario?
I believe that demonetization and the roll out of GST are both a step in the right direction, and the impact would be largely positive in the long run. GST has given a way to get rid of multiple taxation points, and also provided mobility across borders. The transfer of equipment has become easy and the transit time has reduced significantly. There has been a temporary setback to the mining industry as some products that were earlier taxed at 18% are now under 28% bracket. However, the industry is expected to recover over a short period of time.

What is the scope for automation in the mining sector from your point
of view?
Automation in mining is still in development phase and there is huge potential for the same. There are reports on self-driving trucks and remote controlled mining equipment that would largely reduce human risk at mining locations. Another aspect is software automation and camera installation that would help with better analysis of the terrain as well as the mine. All in all, there is immense scope for automation and future mining equipment would surely come under the smart category. However, India being a cost sensitive market for mining equipment, we would need to see how it pans out in near future.

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