BATAS Tractors is an authorized distributor of Caterpillar heavy construction equipment for Nepal. Caterpillar, a U.S based company, was founded in 1925 and it’s renowned for being one of the best heavy equipment manufacturers in the world.


In the present context, Nepal has become one of the key markets for heavy construction equipment. The political stability and booming infrastructure project have created a huge demand for heavy construction and equipment in the country. In this article, we share the key reasons for the surging demand of heavy construction equipment in Nepal.

 

Earthquake increases the demand for heavy construction equipment

Due to the destruction caused by the April 2015’s earthquake, there is a growing need for infrastructure development in Nepal. The physical infrastructures have been seriously damaged and still, Nepal is going through a post-calamity reconstruction phase. According to the Federation of Construction Associations Nepal (FCAN), the demand for heavy construction equipment and machinery has been growing by 25% annually (2016-17). This is particularly due to increased construction activities in the country.

Urbanization spikes the demand for heavy construction equipment

That’s why heavy construction equipment is extensively used in the construction project. The modern heavy equipment comes with equipped technology and mechanization that ensures productivity and reduction of cost. They help to fasten the construction activities by reducing labour cost and time.

Rapid urbanization has become a major factor for increasing demand for heavy construction equipment and machinery in Nepal. In order to sustain urban development, there is a growing need for infrastructure development, water supply system, construction of residential and commercial buildings and many more. According to Nepal Land and Housing Developer’s Association (NLHDA) the real estate sector is increasing at 40-50 percent annually (2018). The development of infrastructure and building activities have risen up the demand for heavy construction equipment and machinery in Nepal.

 

The increasing road construction activities have created demand for heavy construction equipment

According to the Asian Development Bank’s (ADB), Nepal’s economy is anticipated to grow by 5.5%  in fiscal year (FY) 2019. The political stability followed by 2017 election and government emphasis on developing infrastructure project accounts for a growing economy in the country.

Nepal’s Government is working on implementing a  road construction programme that includes road expansion projects and highways that connect all parts of the country. However, there are many challenges that exist in rural transportation due to Nepal’s topography. The hilly and mountain regions of Nepal requires to link through road construction. The World bank is working in Nepal to support improved transport connectivity, focusing on upgrading and maintaining roads. As a result, the demand for heavy equipment has gone up with increasing construction activities and road expansion in Nepal.

 

The increasing investment has risen up  the demand for heavy construction equipment

As Nepal’s government emphasizes the liberalisation of the economy that supports Public Private Partnership (PPP), many private and public companies show a keen interest in financing large scale mega infrastructure development. The government and private companies have increased their investment in infrastructure development projects such as hydropower, irrigation, road, airport and much more.

In the present context, the Nepal government has taken major steps to enter in Power Trade Agreement (PTA) with India and Project Development Agreement(PDA) for developing Upper Karnali hydropower project that shows a good sign for the development of infrastructure sector. The booming infrastructure development in Nepal requires construction activities that eventually created demand for heavy construction equipment.

 

Looking for Heavy construction equipment in Nepal?

Caterpillar is leading the heavy construction equipment available in the Nepali market. BATAS Tractors offers all types of heavy equipment and machinery for a wide range of applications. They are available at various models with generator capacity ranges from 200 KVA to 2,500 KVA.

Our heavy equipment products are superior in quality, fuel efficiency and deliver maximum productivity. Besides sales, BATAS Tractors has also been providing after sales and site maintenance services for customers. For more information about heavy construction equipment, Contact us.