Rural India seems to be leading in infra and construction activity this year versus peer projects in urban areas according to heavy construction machinery maker JCB India, which monitors real time performance of its excavators, loaders & compactors in the country.

Speaking to CNBC-TV18 after launching India's first CNG run dual fuel backhoe loader, JCB India chief executive officer and managing director Deepak Shetty said this year, three fourths of its machines in the country are being utilised in rural projects, indicating a strong infra and construction push in the hinterland. The company believes that higher usage of JCB machines in the hinterland also points towards lower pace of infra activity in urban Indian clusters.

India has over 160,000 JCB made excavators, loaders and compactors which stream a host of data like fuel efficiency, engine performance etc. to the company in real time through a proprietary technology. This helps the JCB to analyse usage of these machines in different geographies and regions.

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"Analysis of data from JCB machines show that their usage was higher in rural India this year. In a normal year, 55-60 percent of the JCB machines are used rural areas but this year, it is 70-75 percent, Shetty said in an exclusive interview. "Overall, JCB machine usage is up 10 percent this year compared to last year."

According to Shetty, the higher usage of JCB machines in villages and non-city areas can explained by the infra push of the government in rural areas after lifting the lockdown, especially in public projects related to housing under PMGSY and basic infrastructure work being carried out under MNREGA.

In addition, the company also got to know that the higher than average rainfall promoted construction of a large number of ponds in rural eastern India. "Bharat seems to be firing in all cylinders," Shetty said.

Apart from basic infra, JCB machines saw higher usage in the months following the lockdown in highways, expressways and roads projects. Moreover, JCB machines usage in border and defence infra was higher compared to previous years. "We have received additional orders for excavators, loaders & compactors from defence organisations," Shetty said.

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The company had to shut production during the lockdown period and no machines were produced during the month of April. But as India started the unlock process in June, JCB saw a spike in sales due to pent up demand. "July sales were up 30 percent year-on-year. Even in August, September and October, sales have been on the higher side compared to last year,” Shetty said.

The UK-based company, which has 5 plants in India, plans to restart work on its 6th factory in Vadodara, Gujarat, which was paused due to the COVID-19 pandemic. The company also plans to add to the alternate fuel portfolio by launching the first duel fuel backhoe loader on November 25 in New Delhi.​

(Edited by : Jomy)