The company is engaged in 14 active highway projects across India spanning 10 states.

Harendra Singh, Chairman & Managing Director, HG Infra Engineering Ltd

The Interim Budget 2024 has allocated significant funds for roads and highways for the year 2024-25. How do you look at the opportunities for you in the year ahead?

In the wake of the Interim Budget 2024 allocating substantial funds for roads and highways, we perceive immense opportunities ahead for HG Infra. With our expertise and experience in highway projects, we are well-positioned to capitalize on the increased investment in infrastructure. This allocation underscores the government's commitment to improving transportation networks, which aligns perfectly with our core business focus. We are poised to leverage these opportunities to further strengthen our presence in the sector and contribute to the nation's infrastructure development goals.

Can you give us an overview of your ongoing highway projects and projects in the pipeline?

At present, the company is engaged in 14 active highway projects across India spanning 10 states, including Andhra Pradesh, Delhi, Haryana, Jharkhand, Karnataka, Maharashtra, Odisha, Rajasthan, Telangana and Uttar Pradesh. These 14 projects have a combined value of Rs 8471.6 crore and recently we have secured two more projects in Q4 worth of Rs 1,472.22 crore. We take immense pride in the track record we've established in the highway domain. Our proven expertise, state-of-the-art technology, and commitment to quality have allowed us to make a significant mark in road projects, consistently delivering results that exceed expectations.

What are the key challenges in roads & highways sector? 

In the realm of road and highway sector, challenges include commodity price fluctuations, particularly in materials like steel and asphalt, pose budgetary uncertainties. Prolonged monsoons disrupt project timelines resulting to inflating costs and jeopardizing deadlines. The shortage of skilled labour compounds these issues, necessitating dedicated recruitment and training efforts. Complex financial riders, regulatory approvals in some cases and the alignment of human capital with management vision add further complexity. However, we adopt a multifaceted approach, leveraging technology for resource optimization, investing in talent development and upholding ethical practices. This strategy equips us to navigate these challenges effectively and maintain our commitment to excellence in construction. 

What are the sustainability practices being adopted in your projects?

In alignment with the government's ambitious goal of reducing carbon emissions by one billion tonnes by 2030, HG Infra is committed to embracing sustainable and eco-friendly practices including the utilization of renewable energy sources and the implementation of robust waste management strategies. These initiatives involve innovative approaches such as substituting conventional soil with inert materials in embankments to promote ecological sustainability. We have also introduced Sewage Treatment Plants (STPs) and well-designed drainage systems at construction sites to address wastewater concerns effectively.

Additionally, we have adopted a green procurement strategy by incorporating recycled materials like fly ash, pond ash and plastic in road construction contributing to resource conservation. To mitigate emissions from vehicles and promote environmentally friendly highways, we have partnered with stakeholders and NGOs to organize tree planting campaigns, resulting in the planting of numerous saplings during the last year.

Furthermore, to reduce our reliance on diesel generators, we have transitioned to grid electricity and converted 17 diesel trippers to operate on Compressed Natural Gas (CNG) thereby reducing our carbon footprint. In response to dust generated during construction, we employ water sprays and anti-smoke guns for effective dust suppression. Strategically scheduling bituminous tasks during night time hours not only aids pollution control but also improves traffic management. 

How are you devising your growth plans for the future?

In line with our commitment to growth and innovation, we are continuously diversifying into new sectors while continuing to strengthen our core expertise in road projects. In 2022, we planned to diversify into railway projects and as of March 31, 2024, we have five railway projects worth Rs 3,641.55 crore, excluding one DMRC project valued at Rs 412.11 crore. Additionally, we have also entered the solar segment with a few projects in hand. Upholding our strategy of expanding into other infrastructure segments, we are looking forward to venturing into several exciting sectors such as tunnel construction, ropeways, transmission lines and water projects. However, it's important to note that roads remain our main fortified segment.