National agenda to enhance regional connectivity has created a strong pipeline of airport projects.

- Jairam Panch

Managing Director, Turner India

Government has set a target to become a USD 5 trillion economy by 2025. How do you see the construction and infrastructure sectors driving the country on the growth path?

There was momentary disruption due to the pandemic across all the sectors, but it is encouraging to see the pace at which the economy is bouncing back, particularly investments made in the construction and infrastructure sectors. They been instrumental in initiating economic recovery measures by directly impacting ancillary industries, stimulating demand, generating jobs, etc. Construction sector is stirring the development cycle through industries such as cement, steel, cement, equipment, technologies, etc., and thereby causing a multiplier effect. With an average growth rate of 7.1% the construction market in India is expected to emerge as the third largest globally by 2025. We expect higher foreign investments on the back of the industry and policy efforts by the government.

Your take on the various projects undertaken by the government to improve transportation infrastructure (roads, waterways, airways, etc.) and the scope for players like you?

India's transportation infrastructure has witnessed phenomenal growth in the last two decades. Mega projects such as the Golden Quadrilateral national highway network, modernization of airports, rapid-transit metro railways, high-speed and semi-high- speed rail projects, dedicated rail freight corridors, and the Bharatmala Pariyojana national highway project have revolutionized the capacity and quality of the transport infrastructure in India.

The national agenda to enhance regional connectivity has aggregated a strong pipeline of airport projects with a plethora of opportunities, particularly in the Greenfield airport development. This augurs well for project management consultancy firms like us who have expertise in managing complex airport projects.

Your take on the other sectors like real estate, etc. and the prospects to drive the growth of the country

The real estate sector in India attracted USD 5 billion institutional investments in 2020. Syndicated industry reports indicate that it is projected to reach a market size of USD 1 trillion by 2030 and contribute 13% to the country's GDP by 2025. Besides, the growing FDI flow to Indian real estate and the RERA regime are encouraging increased transparency. The growth of this sector directly corresponds to the growth in the overall economy as it is the second-highest employment generator in India.

Favourable socio-economic conditions, a young demographic, an unprecedented rate of urbanization & infrastructure push, and higher household income will primarily lead the housing demand in India.

We have started to see green spurts with inventory overhang getting reduced due to a combination first home buyers looking to buy larger homes or investing in homes in another location.

In order to manage multiple projects across different locations while maintaining quality and avoiding delays and cost overruns, builders and developers are increasingly understanding the significance of strategic planning and management and hiring qualified firms in areas like preconstruction, project management and cost consultancy.

Tell us about the challenges plaguing these sectors and initiatives that the government needs to take to streamline the processes.

With rising number of projects failing on the delivery timelines, construction process hung due to arbitration or financing issues (during the lockdowns), and many renowned real estate and construction companies filing for insolvency, concerns regarding the future of the industry have been rising.

Factors such as payment delays to the contractor, conflicts between co-owners and/or agencies, slow decision-making process, lack of communication and coordination, failure in the timely provisioning of the site to the contractor, and suspension of work have been plaguing the industry for a long time now.

Poor planning has a direct impact on execution and is most often the principal cause of project failures. Developers need to be more conscious of the requirements and smarter in projection of the timelines of obtaining the permit, and must seek assistance of reputed project managers right from the initial stage to effectively combat procedural impediments.

An optimum level of intervention is what the government needs to find in order to maintain proper standards while also ensuring that over-regulation, bureaucracy, and budget deficit do not curb innovation, interest, and investments in the sector.

How do you see the growth opportunities for Turner? What are the kind of orders that the company is looking forward to?

At Turner, we offer solutions that create value for the project throughout the construction lifecycle. The growing realization of the positive impact that an experienced project management firm can induce in any construction assignment will definitely pave way for several growth opportunities for us across sectors. The shift to a more proactive and professional culture in construction practices will increase the demand for specialized PMCs like Turner.

We have a reputation of managing some of the most complex tourism and cultural projects in the country including the Statue of Unity, National War Memorial, amongst others. We are also managing the expansion
of the Delhi and the Bengaluru Airports, two of the busiest airports in India. Real estate in another segment where Turner has a strong footprint in the country having clients like major leading developers, investors, corporates and government. projects who have trusted us with some of their most prestigious residential, commercial and retail projects across different regions. Data Centers is a domain that we continue to pursue aggressively and it will be one of our key focus areas going forward.

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