The Ministry of Statistics & Programme Implementation (MoSPI) monitors infrastructure projects worth Rs.1.5 billion and above. Of the 1,579 such projects, 425 reported costs overrun of over Rs.4.8 trillion till March 2022; 664 projects reported time overrun. MoSPI has attributed the time overrun to a host of issues including delay in land acquisition, forest or environment clearance, lack of infrastructure support and linkages, supply of equipment, fund constraints, geological surprises, change in scope, delay in tendering, shortage of labour, contractual issues, state-wise lockdown due to COVID-19, legal cases and the law and order situation. Expenditure incurred on the 1,579 projects till March 2022 is around `13.9 trillion, which is 51.9 per cent of the anticipated cost of the projects. Last month, I had lauded the Finance Minister’s moves in containing the steel price spiral, and such moves are needed since we do not let market forces play their course. The steel industry has been protected generally from international imports. Last year, only when the price surged by 50 per cent did the government intervene and allow imports. This year too, it has introduced an export duty of 15 per cent. Sajjan Jindal, Chairman, World Steel Association, (also CW Man of the Year 2021) believes that the government will withdraw this duty as soon as inflation fears recede. Meanwhile cement, sand, tiles, electricity, plumbing all have risen and the collective impact of this rise would be up to 35-40 per cent per construction unit. While one way is to push the fears under the carpet, the other more realistic would be using alternate materials. Just like renewable energy got a lease of life with scorching oil prices, several alternate materials could be considered. Similarly, technologies need to also be taken seriously as they not only offer the benefits of precision and low wastage, but also of higher productivity, benefits of integration and pre-emptive planning. Complexity of projects and their scale have propelled the need for adoption of BIM, 3D modeling, digital twin and AI. In parallel, the government has enabled policies that favour the use of geospatial and drone technologies. Similarly,construction equipment with enhanced and advanced features are now appearing more within reach due to the demands of projects and project developers. The dynamics of the cost of a project are now in the realm of efficient project management. On July 22, CONSTRUCTION WORLD is hosting its second edition of Construction Technology Summit in Delhi. Log on to https://constructionworld.in/events/constructiontechnology/ for more details. Ukraine may throw up some rebuilding opportunities for Indian contractors in times to come, and meanwhile, USA’s $1 trillion bill for rebuilding its infrastructure is beckoning. All these opportunities will be available to those who embrace governance, technology and environment sustainability. The integration of BIM with energy management is key to managing sustainability throughout the life of a building. This would include gathering information on energy consumption, greenhouse gas emissions, water consumption, construction waste generated, and recyclability of building waste. As ESG (Environmental, Social and Governance) reporting standards get implemented (now also for Indian companies with a revenue of `10 billion plus), companies will have to prepare for emerging sustainability reporting mandates. Unsustainable building assets and REITS housing such assets will face the wrath of investors. Get started. Get ready! Founder & Editor-in-Chief Pratap Padode