From Strength to Strength

Like the majestic phoenix that rises from its ashes, the Indian economy is resurging after years of slump, says K SUBRAHMANIAN. Indias GDP growth rate clocked 7.6 per cent in FY 2015-16 with the fourth quarter reaching almost 8 per cent. This happened at a time when many large economies, including Japan and China, have continued to struggle with a slowdown. After five years of decline, India jumped 16 spots from the previous year to rank 55th out of 140 countries in the World Economic Forums Competitiveness Rankings, 2015-16. The infrastructure ranking stood at 81st, a rise of six places from the previous year. The infrastructure sector could be spearheading Indias economy, given the NDA governments concerted efforts in scaling up the sector. The construction industry remains the second largest contributor to Indias economic activity after the gricultural sector, with its contribution to GDP being more than 8 per cent. It continues to be the second largest employer, with a workforce of more than 3.3 crore. Acknowledging the potential of the sector in fulfilling its vision of resurgence and improve connectivity in the country, the government has announced several railways, metro rail, road and shipping projects. Recent promising plans include Union Minister for Road Transport and Highways Nitin Gadkaris vision to expand the national highways network from 96,000 km to 200,000 km and Railway Minister Suresh Prabhu announcing that Indian Railways will invest $140 billion in infrastructure in five years. As a step to enhance infrastructure financing, the NDA government plans to set up the National Infrastructure Investment Fund (NIIF) with an initial corpus of Rs 400 billion. It has come up with a new hybrid annuity model (HAM) for awarding road contracts to boost private investment through the PPP route. It is also expected to clear the way for stranded road projects worth Rs 250 billion. The recent announcement of several measures, including a mechanism to ensure stalled projects are revived by releasing funds stuck in arbitration awards, will go a long way in reviving the construction industry. The next level Afcons, among Indias top infrastructure companies with a strong presence in several parts of the world, has maintained an unblemished track record. The growth of the company, which is the infrastructure arm of the Shapoorji Pallonji group, is well-diversified across different segments and geographies. We are one of the few companies that have maintained a steady growth even during bad times. Given the present economic environment, Afcons will take itself to the next level, and as a testimony to this vision, we have procured projects of more than Rs 5,000 crore in the first quarter of FY2016-17. Challenging the status quo and taking up technically challenging projects, which have gone on to becoming engineering marvels, has always been the motto at Afcons. Improving accessibility in the most difficult terrains has been our aim. We are constructing the 8.8-km Rohtang Pass Tunnel, connecting Lahaul and Spiti to Manali. Upon completion, this will be the longest road tunnel in the world- above 13,000 ft. Once functional, this tunnel will end the isolation that people of Lahaul and Spiti face during six months of winter. The railway bridge over River Chenab is another such example; it will be the worlds tallest single arch railway bridge. Delivering the best results in the least amount of time has been Afcons forte. We have often completed the most challenging tasks well ahead of schedule. One such example is the ongoing Agra-Lucknow Expressway project. A 302-km control-access highway is being built, which will cut down the travel time between the two cities from six hours to 3.5 hours. Afcons is slated to complete the work in the 36-month project in 24 months. Afcons is taking long strides to script its growth story - a story as compelling and inspirational as present-day India. About the author: K Subrahmanian, Vice Chairman & Managing Director, Afcons Infrastructure, has intensive experience in various areas of project management including planning and execution, apart from contract management and corporate planning.