Fresh Innings

31 Oct 2016 CW Team

Dilip Buildcon Ltd (DBL) is well-poised to ride on the back of the resurgence created by the government through its various schemes to promote the country´s infrastructure sector. DBL is attempting to be present in all areas that have been vitalised by the Centre, such as development of expressways, water grid connectivity, national waterways development, Smart Cities, metro rail projects, affordable housing, rail connectivity projects, Dedicated Freight Corridors, National Highways development, etc. We are looking forward to utilising our expertise, skill, manpower and engineering capabilities to make the best of these opportunities.

Towards 2020
DBL will remain focussed on roads, but will broaden its horizons in diversified areas by utilising its available machinery and manpower. For example, the company is ideally suited to meet the requirements of the ministry to build concrete roads. DBL has 5-m, 12.5-m and 16-m fully automatic machines and M-2.5 model batching plants, which can produce concrete at 25,000 cu m per day. Armed with these equipment capabilities across DBL projects, we lay around 8 km of concrete roads in a day, 20 per cent of the government´s target of 40 km of roads per day. We will be constructing the Zuari cable-stayed bridge for Rs 530 crore, which will be the second largest cable suspension bridge in India. By winning this project that required unique engineering abilities, DBL has enhanced its capabilities to construct marine environment structures, a niche domain in the urban infrastructure space. DBL relies on the hybrid annuity model, enabling the company to reduce its risk exposure to these projects. The company has also forayed into coalmine over-burden extraction projects, where it can utilise its existing equipment. DBL is currently executing a project for Singrauli-based Northern Coalfields.

DBL is already executing canal and dam projects. A dam project at Mohanpura (Rs 416 crore) is nearing completion and another at Kundaliya (Rs 270 crore) is well ahead of schedule. There are immense opportunities across various Indian states for dam projects. DBL is also into canal-linking and water grid connectivity projects for both drinking water and agriculture.

We have already completed Rs 230 crore worth of drinking water supply projects, and the company has a project in hand worth Rs 136 crore. There are immense opportunities in this area that we are exploring.

Beginnings
Before 2014, projects awarded by the National Highways Authority of India (NHAI) were large, and were operated on the Build-Own-Transfer (BOT)-toll models. Therefore, we jointly worked with other developers and completed projects on time. Despite the fact that many such projects were stalled in this period, DBL managed to complete all its projects on time. We also actively bid for EPC contracts from various state-backed entities.

Resurgence after 2014
Until 2015, DBL had won the bids for more than 12 new EPC projects. The company completed eight projects worth Rs 1,400 crore ahead of schedule, and six projects worth Rs 1,240 crore are nearing completion as of today. We increased our bidding capacity and built up an order book worth Rs 10,200 crore within two years, which is 10 times the size of our order book in 2014.

We believe that the various efforts by the government have definitely brought about resurgence in the infrastructure sector after 2014, as can be seen in the heightened interest in bidding for projects from various large contractors. DBL is also bidding for low-risk projects under the hybrid annuity model.

Way forward
Though much has been done by the current dispensation, we believe that the government can focus on the following areas to give the sector an additional boost. The Centre must set up Land Acquisition Cells which work dedicatedly towards resolving issues related to land acquisition, and ensure speedy compensation disbursal by the respective governments. This will facilitate early completion of projects by EPC contractors.

NHAI must work to improve execution of highway projects by delegating powers to its local officers, to make project sites free of encumbrances. Thus, land can be made available to EPC contractors more speedily, before awarding the project.

The authorities should be more open to new design concepts, which ultimately make projects more viable and sustainable.

About the author:
Devendra Jain, Executive Director & Chief Executive Officer, Dilip Buildcon, has over 17 years of experience in the business of construction. He looks after project implementation, ensuring timely completion of the various initiatives of the company.

The various efforts by the government have definitely brought about resurgence in the infra sector after 2014, as can be seen in the heightened interest in bidding for projects from various large contractors, says DEVENDRA JAIN. Dilip Buildcon Ltd (DBL) is well-poised to ride on the back of the resurgence created by the government through its various schemes to promote the country´s infrastructure sector. DBL is attempting to be present in all areas that have been vitalised by the Centre, such as development of expressways, water grid connectivity, national waterways development, Smart Cities, metro rail projects, affordable housing, rail connectivity projects, Dedicated Freight Corridors, National Highways development, etc. We are looking forward to utilising our expertise, skill, manpower and engineering capabilities to make the best of these opportunities. Towards 2020 DBL will remain focussed on roads, but will broaden its horizons in diversified areas by utilising its available machinery and manpower. For example, the company is ideally suited to meet the requirements of the ministry to build concrete roads. DBL has 5-m, 12.5-m and 16-m fully automatic machines and M-2.5 model batching plants, which can produce concrete at 25,000 cu m per day. Armed with these equipment capabilities across DBL projects, we lay around 8 km of concrete roads in a day, 20 per cent of the government´s target of 40 km of roads per day. We will be constructing the Zuari cable-stayed bridge for Rs 530 crore, which will be the second largest cable suspension bridge in India. By winning this project that required unique engineering abilities, DBL has enhanced its capabilities to construct marine environment structures, a niche domain in the urban infrastructure space. DBL relies on the hybrid annuity model, enabling the company to reduce its risk exposure to these projects. The company has also forayed into coalmine over-burden extraction projects, where it can utilise its existing equipment. DBL is currently executing a project for Singrauli-based Northern Coalfields. DBL is already executing canal and dam projects. A dam project at Mohanpura (Rs 416 crore) is nearing completion and another at Kundaliya (Rs 270 crore) is well ahead of schedule. There are immense opportunities across various Indian states for dam projects. DBL is also into canal-linking and water grid connectivity projects for both drinking water and agriculture. We have already completed Rs 230 crore worth of drinking water supply projects, and the company has a project in hand worth Rs 136 crore. There are immense opportunities in this area that we are exploring. Beginnings Before 2014, projects awarded by the National Highways Authority of India (NHAI) were large, and were operated on the Build-Own-Transfer (BOT)-toll models. Therefore, we jointly worked with other developers and completed projects on time. Despite the fact that many such projects were stalled in this period, DBL managed to complete all its projects on time. We also actively bid for EPC contracts from various state-backed entities. Resurgence after 2014 Until 2015, DBL had won the bids for more than 12 new EPC projects. The company completed eight projects worth Rs 1,400 crore ahead of schedule, and six projects worth Rs 1,240 crore are nearing completion as of today. We increased our bidding capacity and built up an order book worth Rs 10,200 crore within two years, which is 10 times the size of our order book in 2014. We believe that the various efforts by the government have definitely brought about resurgence in the infrastructure sector after 2014, as can be seen in the heightened interest in bidding for projects from various large contractors. DBL is also bidding for low-risk projects under the hybrid annuity model. Way forward Though much has been done by the current dispensation, we believe that the government can focus on the following areas to give the sector an additional boost. The Centre must set up Land Acquisition Cells which work dedicatedly towards resolving issues related to land acquisition, and ensure speedy compensation disbursal by the respective governments. This will facilitate early completion of projects by EPC contractors. NHAI must work to improve execution of highway projects by delegating powers to its local officers, to make project sites free of encumbrances. Thus, land can be made available to EPC contractors more speedily, before awarding the project. The authorities should be more open to new design concepts, which ultimately make projects more viable and sustainable. About the author: Devendra Jain, Executive Director & Chief Executive Officer, Dilip Buildcon, has over 17 years of experience in the business of construction. He looks after project implementation, ensuring timely completion of the various initiatives of the company.