How high capital expenditure by the government points to the lack of private investment in the economy?
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✨ Answer ✨
For the first time in six years Srivats Ram, MD of Wheels India, a TVS group company, has begun worrying about capacity constraint. In fact, he has begun de-bottlenecking his operations to meet the demand from customers across the commercial vehicle, passenger car, bus, tractor and construction equipment sectors. Tractor-maker Escorts is looking at expanding its capacity from lakh units to 1.6 lakh units. A decision is likely next year even as tractor sales, in FY18, are set to touch a record 6.45 lakh units. Ramco Cements is already investing ₹1,200 crore to expand two of its grinding units in West Bengal and Andhra Pradesh apart from setting up a new one in Orissa. While this is strictly not a capacity expansion (clinker is shipped from existing facilities to the grinding unit to be crushed and converted into cement), the investment, however, increases its capacity in the eastern market where the off-take is strong.