Tata Projects is a leading technology-driven EPC company in India. Renowned for executing large-scale urban and industrial infrastructure projects, the company is also making strides in clean energy solutions, aligning with the nation’s net-zero goals. With expertise spanning diverse sectors, the company delivers innovative end-to-end solutions across industries.Vinayak Pai, Managing Director & CEO, Tata Projects, spoke to FALGUNI PADODE, Group Managing Editor, to discuss the company’s vision, sectoral challenges and expectations from Budget 2025. Excerpts:What are your expectations from Budget 2025 for the construction and infrastructure sector and what challenges should be addressed?We expect the Government to continue increasing infrastructure spending, as seen in recent budgets. Investments in the mobility sector, especially urban mobility projects like metros, are critical and need to grow further. In the power sector, both renewable and conventional energy present vast opportunities and we hope to see higher investments in this area. Additionally, projects focusing on sustainability, such as green hydrogen and sustainable aviation fuel, require urgent regulatory support. While many plans have been made, these projects haven’t taken off due to the lack of clear policies and incentives. Regulatory backing is essential to improve the viability of these initiatives.What form of support do you envision for sustainability-related projects?We need a combination of regulatory reforms and financial incentives. For instance, mandates like carbon taxes in the EU have driven projects there. India can adopt similar approaches to support green initiatives until the technology scales and becomes commercially viable. The production-linked incentive (PLI) schemes introduced for sectors like hydrogen are commendable but the reasons for their limited success need further analysis. Like the solar sector in its early days, sustainability projects need substantial support during their nascent phase. Further, improving India’s ranking in the Ease of Doing Business Index, which is currently over 150, is critical to attracting global investments.With your JV with Capacit'e Infraprojects for the BDD project, is your revenue mix shifting towards new sectors?The BDD project has been ongoing for four to five years and will likely extend until 2031-32. However, our focus is shifting towards industrial and private-sector investments due to their faster decision-making and project execution timelines. India’s emergence as a global manufacturing hub offers immense opportunities in advanced manufacturing, including semiconductors, data centres and battery manufacturing. These sectors align with our vision of predictable project delivery, driven by sustainability and technology. While public-sector investments will remain significant, we see private-sector growth as more aligned with our goals.How is Tata Projects leveraging AI to enhance productivity?AI is a buzzword but its effectiveness depends on the industry’s technological maturity. The construction sector is the second least tech-savvy industry after agriculture, which limits AI’s potential. Our approach focuses on integrating technology as a foundation and then layering AI on top. For example, we use AI-driven tools for analysing tender conditions and monitoring safety on sites using computer vision. While these are not full-fledged AI systems, they demonstrate its potential. Enhancing the sector’s tech adoption is the key to fully harnessing AI’s capabilities.What does your project pipeline look like and what are your focus areas?Our current pipeline includes over 40 significant projects, with key initiatives like the Micron Semiconductor Project and the Noida International Airport, Jewar, making significant progress. We are also developing projects in data centres, semiconductors and battery manufacturing. These sectors fall under clean and green manufacturing, which includes electronics, solar PVs and giga factories. Clean manufacturing is a critical focus area for us as we align with the global shift towards sustainability.How are you addressing the challenges in workforce skill development?The construction industry faces challenges in both the quality and quantity of labour. Our structured programs, Skill Shakthi and Nirman Nayak, aim to address these gaps. Through Skill Shakthi, unskilled workers undergo on-the-job training over nine months to become skilled masons, carpenters or welders. Meanwhile, Nirman Nayak offers a three-year diploma programme in partnership with Kalinga University and the Construction Industry Development Council (CIDC) for workers who have completed 10+2 education. This initiative transforms them into supervisors, significantly improving their career prospects and quality of life. Additionally, we focus on attracting local labour around project sites, creating a sustainable ecosystem of skilled workers and supervisors.If you had one key recommendation for the Government, what would it be?Given the scale and impact of infrastructure development, India needs a dedicated Ministry for Infrastructure and Construction. Currently, responsibilities are fragmented across various ministries and PSUs, leading to inefficiencies. A central ministry could streamline decision-making, set uniform policies and promote Indian contractors on a global scale. Moreover, the mandate should include nurturing globally competitive contractors, much like the Bechtels of the world. While Indian contractors have a presence in regions like the Middle East and Africa, a unified approach could enable us to compete on a truly global stage.