We are interacting with the ARAI & policy makers to develop a uniform code for engines used on construction equipments, states ANAND SUNDARESAN, Vice Chairman & MD at Schwing Stetter India Pvt Ltd.
What are your views on the adoption of emission norms by the construction equipment industry?
We have already adopted BS III diesel engine for wheeled vehicles as per the norms laid down by the Automotive Research Association of India (ARAI). The norm has not been extended to tracked vehicles or stationery equipments. However, more equipment are likely to come under this norm as most of the engine manufacturers have started manufacturing diesel engines as per BS III norms.
What are the challenges faced while upgrading the used equipment as per BS III norms?
Upgrading used equipment as per BS III norms is a challenge as and as an original equipment manufacturer, we are facing it. There is control on equipments being manufactured in India. However, the question which arises is the import of second hand equipment or fully built equipment. As India lacks stringent regulations, monitoring especially imported second hand equipment is a question. We don’t have a level playing field.
Indian construction equipment manufacturers have already adopted BSIII norms. Can we say that slowly and steadily we are shifting towards Stage IV?
For BS IV, Cleaner fuel meeting the requirement should be made available across the country. For instance, few engines fitted on automobiles comply with BS IV norms however the fuel is unavailable extensively across the country. Besides, construction equipments are not deployed only in metro cities but more in Tier II and Tier III cities. If cleaner fuel is unavailable in these cities then the whole purpose of having BS IV norms becomes futile. As most of the engine manufacturers in India come from western countries technological solutions is available easily. We just need to adopt these technologies and tailor make to suit Indian requirements. The only problem is availability of fuel.
How will the equipment users respond to the increased cost of purchasing and operating once BS III is used on all the equipments?
There is no choice. You are right with this difference in economy and lower volume of equipments providing low priced equipment is a challenge as market is not prepared to accept the price increase. Further, the vast potential Indian market offers has attracted many international CE giants as a reason the size of pie has reduced drastically. Every CE manufacturer is fighting to grab small piece of a pie therefore any price increase becomes a burden for the manufacturer. Unless the market bounces back, off take increases the price hike remains a challenge.
Has Schwing Stetter adopted BS III norms in all their equipments?
The products manufactured by Schwing Stetter are stationery equipments and therefore do not falls under BS III norms. However, we follow green practices while producing equipments for instance, use of lower emission engines. Further, we believe engine pollution is just one portion, we undertake various other initiatives, for instance use of lead free paints. Predominantly, the yellow color or epoxy or Polyutherene paint generally used for construction equipments consist lead in large amount. However, the cost of lead free paint is 25% more as against non lead free paints.
Is Schwing Stetter working with engine manufacturers to produce energy efficient engines?
We undertake discussions with engine manufacturers to understand the latest developments they are bringing within their equipment. Based on their feedback we are interacting with the Automotive Research Association of India (ARAI) and policy makers to develop a uniform code for engines used on construction equipments.
By 2014, BS III would be applied for all the stationery equipments and by year after we expect the emission norms to be applied for rest of the equipments. Almost 80-85% of the equipments fall under wheeled vehicles category.
What is the technology requirement according to you for meeting BS IV?
The engine manufacturers need to produce less consumption fuel engine. Besides engine has to be upgraded as it gets degraded and they have to put some extra filters to avoid release of polluted emission into the atmosphere. Engine manufacturers need to work on this front and as equipment manufacturers we have to adopt the technologies they develop.
For construction equipment manufacturers, if same engine platform is used the capacity of engine drops down. For instance, if the construction equipment has 120 hp BS II or BS I engine and with the implementation of new emission norms the equipment is upgraded to BS III engine the power drops down by 10-20% depending on the size of the engine. We have to use the engine suitable to requirement.
What is your outlook on the construction equipment industry?
We expect the construction equipment industry to bounce back. Excon was beyond expectations. Due to global economic downturn we had not expected much footfalls however the response was encouraging as reflected in our December billings. Even the January and February sales have fared well compared to 2013. We are optimistic that this trend will continue. As the country will enter into election phase, government is clearing large infrastructure projects; however implementation should also pick up at equal pace. We are hopeful after the elections, there will be revival.
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