Roads and Highways sector plays a dominant role in the development of a nation

VIRENDRA D. MHAISKAR

Chairman & Managing Director, IRB Infrastructure Developers

What is your opinion about the Union Budget 2023-24?

It's a promising step towards making India a $5 trillion economy through continued focus on infrastructure sector. The Budget has given a booster vaccine to facilitate the faster economic growth of the nation; roads sector is definitely one of the prominent sectors to be given well deserved focus through adequate funding.

How far will the Budget help in pushing the further growth of your business segment?

For any economy, healthy GDP growth is the result of government's strategic focus on fiscal prudence and comprehensive development driven by a strong push on infrastructure development - particularly the highways infrastructure sector. Roads and Highways sector plays a dominant role in the development of a nation, as it creates abundant comprehensive growth opportunities to uplift local communities, provides efficient connectivity for movement of goods, people and services - across topographies or any other regional physiognomies. The Hon'ble Finance Minister has confirmed impetus on containing fiscal deficit while committing enhanced capex to spur overall economic growth. It is a noteworthy budget allocation of  Rs 10 lakh crores for entire infrastructure sector - an increase of 33%+, of which Rs. 2.7 lakh crores have been allocated to the Roads & Highways sector. This is huge opportunity created, which looks to be aimed at providing a strong booster for not only the sector and economy per se; but for the players in the sector too.

What are your views on the implementation of the Budget proposals?

Since it is being done every year successfully for so long, with all systems with proper reviews and barriers removing strategies in place, we do not see any issue in this.

Considering the year 2023-24 is closer to the general elections, what kind of push in project execution are you expecting this year?

IRB Infra has demonstrated its world class execution capacities over last 25 years for any size of project irrespective of geographies and hence is ready and committed to deliver quality projects for the nation within set timelines.

How are you planning your investment and expansion plans in the year 2023-24?

IRB Infra has imbibed robust financial discipline in all its operations and has a strong balance sheet to take on upcoming opportunities in the sector. The company also enjoys a privilege of having two global players as its strategic and financial partners (Cintra - subsidiary of Ferrovial, Spain and Government of Singapore - GIC) onboard as guiding forces to maintain leadership position of the company in India's Highways Infrastructure Development sector, not only for the year 2023-24, but the years to come.

What kind of growth are you expecting in the year 2023-24? What is your outlook on 2023-24?

Considering the normalcy achieved in post Covid 19 period and economy coming back on track, we expect 10 to 12% growth in toll collection and order book growth of Rs. 6,000 to Rs. 8,000 crores which is around 120% of orders consumed in financial year 2022-23 from the available pipeline. As far as the outlook is concerned, considering the focus on infrastructure sector in the Budget and our execution capabilities, we do expect to contribute with lion's share in getting the projects awarded.

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