The roads & highways sector is witnessing keen interest from multiple foreign investors.

- Harendra Singh

Chairman and Managing Director, H.G. Infra Engineering

The government plans to expand the highway network by 25,000 km in 2022-23 as per the Union Budget 2022. What is your view on this in the current market scenario? What opportunities and challenges do you foresee in achieving this target?

India's infrastructure has been developing dynamically in recent years. Infrastructure is a critical component in achieving long-term growth objectives. The government has demonstrated a concentrated approach by focusing on infrastructure and development projects.

There are tremendous opportunities, given the government's ambition to augment national connectivity, functionality, and sustainability. Its initiative to build 25,000 km national highway in FY23 provides companies like HG Infra visibility into future bidding activities. Furthermore, the Indian Government's master plan to build a highway network of approximately 200,000 km over the coming three years will add to the construction opportunities.

Overcoming any obstacle necessitates a comprehensive approach, as well as an understanding of the industry's ever-changing dynamics. The project parameter determines the potential bottlenecks in attaining the target. The willingness to adopt new-age technologies at all levels will be one of the most important aspects in achieving the 25,000 km threshold. The progress may slow down in some highly monsoon-impacted areas.

What is the scenario of project funding in roads & highways? How is the support from government and private agencies?

There is active participation by the public and private players in finding new-age methods to fund highway construction projects.

Over the past few years, NHAI has been opting for newer approaches to fund projects. Asset monetisation via ToT, NHAI InvIT, allowing early change of ownership, and the toll securitisation model are many of the few ways opted for. The appetite of investors is high, which gives visibility towards the successful monetisation and funding for highway projects. The sector is witnessing keen interest from multiple foreign investors, viz. CDPQ, CPP Investments, Cube Highways and many more. This investor and developers' collaboration is a major boost and creates a pathway for infra development.

The government will mobilise Rs 20,000 cr for this national highway expansion. How far will this help the developers and contractors in the project execution and completion of the project in time?

With the mobilisation of Rs 20,000 crores, the industry can envisage benefiting to a greater extent. With the required finance for the expansion of the projects, we can expect timely payments and timely completion of the projects, which indicates that there would be no cost and time overrun, hence leading to cost reduction.

What are the emerging technology trends in road construction equipment?

Roads are being constructed with both flexible and rigid pavement, depending on the traffic demand. Companies like HG Infra use technology like Echelon paving, 3D grades control software applications, plants with heavy-duty attachments, power feeders, soil stabilisers, and telematics systems to improve quality and productivity.

Also, the emerging trends embrace an extensive focus on sustainability. For example, the use of supplementary cementing material, use of plastic waste, C&D waste management, CTSB laying, uses of Paver IR, earthen shoulder with an impermeable material and other innovative measures that aim to decarbonise the construction industry.

What kind of digital and new-age technologies are gaining traction in road construction?

The sector's focus on digital transformation remains strong. The Ministry of Road Transport & Highways has been consistently pushing initiatives in the sector to promote the use of sustainable technologies. One such example is the Waste to Wealth mission. BIM (Building Information Modelling) is one such technology that is gaining traction. Usage of BIM goes beyond the process of creating and managing information for a built asset, typical planning and design phase of the project. It extends throughout the project lifecycle from planning and design to construction and operations. Additionally, in India, new technologies like vehicle detection, traffic violation control and surveillance, drone-based route surveillance, lane control systems, tunnel management systems, and weigh-in-motion are being implemented to ensure a smooth flow of traffic.

HG Infra places a high emphasis on having accurate and timely information, which benefits the execution of projects and the achievement of operational excellence. Throughout the year, we launched several innovative technological projects and solutions to improve our operating efficiency and lower down costs. Sensor-based fuel dispensing technology and a fuel level management system are some of the many projects implemented.

What is your outlook on the Indian roads & highways sector? What could be the major trends to look for in future?

Infrastructure development plays an integral part in the survival of an array of industries. The sector is crucial to achieving PM's target to make India a 5 trillion-dollar economy. The ambitious target set by the Ministry to make India the infrastructure hub of the world, along with the increasing aggressive bidding opportunities pushes the infra companies to consistently improve their project execution capabilities and remain optimistic about future inflows. The recently achieved Guinness World Record in fastest road construction by building a 2.5 km 4-lane concrete road within 24 hours, a single lane of the four-lane stretch of 25.54 km being developed between Solapur-Vijapur (NH 52) in 18 hours and by laying 75 km of bituminous concrete road in a single lane in 105 hours indicates the sector's sheer perseverance to make Indian infrastructure world-class.

Additionally, we expect to see the tremendous focus of both the public and private sectors in ensuring to eliminate black spots, decongest major points, create accident-free national highways, adhere to the new environment, social, and governance (ESG) compliances, and contribute to the quality of infrastructure development via the Roads & Highways Minister Nitin Gadkari's proposed Innovation Bank.

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