Realigning strategies to mitigate infrastructure project risks
ROADS & HIGHWAYS

Realigning strategies to mitigate infrastructure project risks

As the industry steps into 2019, companies are strategising to ease project risks. Here’s how!
“Being an integrated infrastructure solution provider, involved in investment, development, construction, operation, maintenance and management of highway projects, keeping in view the new model contract document, experience gained in dealing with the land and other issues and ever-changing socio-political scenarios, the process of realignment and reengineering is already underway in the company, which will continue in 2019 to mitigate project risks,” says Yogesh Jain, Managing Director, PNC Infratech.

This being an election year, Devendra Jain, Executive Director and CEO, Dilip Buildcon, does not see many bids on the platter. “So, for orders bagged, we will start work soon. As a company, for the next two to three months, we will not be bidding aggressively owing to various factors at the government and market levels. However, depending on the results of the elections, we may streamline our strategies in Q2 FY20.”   

In Dholera, Dholera Industrial City Development Company (DICDL) has already undertaken international best practices since 2013. For proper management and execution, a SPV was formed between the state of Gujarat and DMICDC. The Program Manager for New Cities (PMNC) in charge has implemented best practices in programme management, including project scheduling, cost control risk assessment, online collaboration platform, 3D design and asset management, to name a few. “As an example,” says Jai Prakash Shivahare, Managing Director, DICDL, “we are happy to mention that in 2013, the first phase of the Dholera programme was estimated at Rs 44 billion and now, five years later, after issuing over a dozen contracts worth almost Rs 30 billion, the final estimated budget is Rs 43.50 billion, about the same as the original 2013 budget. This speaks volumes about our cost control and risk management.”    

For its part, NHAI has already aligned its strategies for project award till 2020. “Our DPRs are in advanced stages,” says RK Pandey, Member-Projects, NHAI. “Also, we have identified six to seven corridors and are working on it.”   
Meanwhile, Sunil Srivastava, Managing Director, BARSYL, says, “We have become extremely stringent in terms of project funding. We ensure project funding is available, land and other clearances are in place; else, we decline the project. This helps us mitigate risk to a large extent.” 

SHRIYAL SETHUMADHAVAN and RAHUL KAMAT
 

As the industry steps into 2019, companies are strategising to ease project risks. Here’s how! “Being an integrated infrastructure solution provider, involved in investment, development, construction, operation, maintenance and management of highway projects, keeping in view the new model contract document, experience gained in dealing with the land and other issues and ever-changing socio-political scenarios, the process of realignment and reengineering is already underway in the company, which will continue in 2019 to mitigate project risks,” says Yogesh Jain, Managing Director, PNC Infratech. This being an election year, Devendra Jain, Executive Director and CEO, Dilip Buildcon, does not see many bids on the platter. “So, for orders bagged, we will start work soon. As a company, for the next two to three months, we will not be bidding aggressively owing to various factors at the government and market levels. However, depending on the results of the elections, we may streamline our strategies in Q2 FY20.”    In Dholera, Dholera Industrial City Development Company (DICDL) has already undertaken international best practices since 2013. For proper management and execution, a SPV was formed between the state of Gujarat and DMICDC. The Program Manager for New Cities (PMNC) in charge has implemented best practices in programme management, including project scheduling, cost control risk assessment, online collaboration platform, 3D design and asset management, to name a few. “As an example,” says Jai Prakash Shivahare, Managing Director, DICDL, “we are happy to mention that in 2013, the first phase of the Dholera programme was estimated at Rs 44 billion and now, five years later, after issuing over a dozen contracts worth almost Rs 30 billion, the final estimated budget is Rs 43.50 billion, about the same as the original 2013 budget. This speaks volumes about our cost control and risk management.”     For its part, NHAI has already aligned its strategies for project award till 2020. “Our DPRs are in advanced stages,” says RK Pandey, Member-Projects, NHAI. “Also, we have identified six to seven corridors and are working on it.”    Meanwhile, Sunil Srivastava, Managing Director, BARSYL, says, “We have become extremely stringent in terms of project funding. We ensure project funding is available, land and other clearances are in place; else, we decline the project. This helps us mitigate risk to a large extent.”  SHRIYAL SETHUMADHAVAN and RAHUL KAMAT  

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code