The project execution scenario has evolved significantly in the construction industry. Latest technologies, alternative materials and sustainable measures are being adopted for the timely and efficient execution of projects. At a recent Indian Infrastructure conference, S. Paramasivan, managing director, Afcons Infrastructure Limited, discussed the trends in the construction industry, the project execution landscape, and the key challenges faced. Excerpts…
Evolving trends
In the past few years, there has been an accelerated focus on completing projects on time, despite tight deadlines. Additionally, there is more willingness to adapt to changes.
Some of the key projects completed by Afcons Infrastructure are the Atal tunnel (the world’s longest highway tunnel 10,000 ft above sea level) and the Chenab bridge (the world’s highest single-arch railway bridge). In addition, about 50 per cent of work on the 48 km Udhampur-Srinagar Baramulla railway line, comprising tunnels and bridges, has been completed by Afcons. The company also worked on the first underwater tunnel in India, connecting Kolkata and Howrah below the river Hooghly.
Apart from the scope in the Indian market in terms of infrastructure development, Afcons has been able to expand its footprint to other countries as well. The company has been accorded the status of a five-star export house by the government for its consistent project export performance. Recently, an MoU was signed between India and the UAE for operationalising the India-Middle East-Europe Economic Corridor.
Project execution scenario
The most important processes in a project are simplifying and improving the design methods being adopted. Additionally, the use of the latest technologies and alternative materials is helping in timely project completion. Digitalisation and equipment management are further helping reduce the time required for preventive maintenance.
Projects can be completed ahead of the scheduled time if the terms of design are standardised. Recently, Afcons executed the road package for the Nagpur-Mumbai expressway 65 days ahead of schedule and the tunnel package for the same project 120 days ahead of schedule. Earlier, the company worked on the Agra-Lucknow Expressway project, which was completed a year ahead of schedule. As part of the process, the company has standardised specific structures and adopted the latest technology.
Challenges
One of the key challenges is the hasty preparation of detailed project reports (DPRs). Typically, this task is given to public sector organisations. DPR preparation typically needs around 6-12 months to be completed, but if the consultant gets only two to three months’ time, there is a high probability that the DPR is based on inaccurate information. This will, in turn, result in variations in the quotations received and invariably result in disputes.
Further, there are often delays in decision-making, which can affect project cycles significantly. The pace of decision-making differs among sectors. For example, the Ministry of Roads, Transport and Highways and the National Highways Authority of India make decisions in a short span of time. The Gati Shakti network is enabling faster decision-making. There is a separate Gati Shakti secretariat under the Ministry of Railways, which is doing impressive work in terms of coordinating various activities.
Another issue is the shortage of skilled manpower in the industry. Various initiatives are being implemented at the state level, including the rural employment guarantee scheme, which has helped reduce the migration of labour to cities. However, measures are being taken for manpower skill enhancement to address shortages.
There are also challenges with respect to securing non-fund-based bank facilities for projects. Dispute resolution is another key issue, with the process of arbitration being long and cumbersome.
Safety is also an area that needs attention. Adequate safety and preparatory precautions need to be taken while executing construction projects.
