We shall be delivering projects in residential, commercial and infrastructure segments to our clients such as the Hiranandani Group for their HFC project in Panvel (Mumbai), Phoenix Group for their Indore mall and a classified aviation project, says Kuldip Grover, Project Director, Turner India.

As we step into the new year, what will be the pace of infrastructure growth in India?
Turner as a keen observer with its interests tied to the post-Covid-19 scenario globally has been a vocal advocatory of a minority voice negating the doomsayers projecting a free fall of the economy due to the pandemic. Fortunately, we have always been seeing the light at the end of this dark tunnel. The global pandemic has once again proved our feeble voiced prophecy of a recovery coming faster than expected as the world recovers from mother natures’ wrath. There is no doubt that the pandemic driven sentiments have further marauded the already stressed realty and infrastructure industry in 2020. Barometers of industrial health point towards a contraction of more than 50 per cent in absolute terms in the second quarter. Further shrinkage of 15 per cent cannot be ruled out at this stage. However, India as a developing country with its vast population, limited resources and cultural diversity deserves kudos for managing the Covid-19 pandemic much better than the developing world with a sense of responsibility coming by and large from all sections of the society.

Indian resilience coupled with well thought out interjections by the administration in the right quantum and at correct intervals have started yielding slow but steady and assured signs of recovery as we draw towards the beginning of 2021. With ‘Atmanirbhar Bharat’ as the essence of the look-ahead path, GoI’s schemes like Affordable Rental Housing Complex (ARHC) shall surely present opportunities of investment in the mid to long term. A robust policy framework supported by continuous public spending by the Government, maybe even at a cost of a fractional increase in the fiscal deficit, shall help reverse the sentiments. Realignment of global sentiments post Covid-19 and concerns of the international community to broad base the manufacturing away from over concentrated nations such as in China shall see the relocation of businesses to countries like India who have a strong politico-legal system.

Challenges like labour shortages and liquidity issues shall need to be monitored and resolved through surgical interventions by the participation of public and private sectors, increasing debt to GDP ratio etc. Sectors like hospitality, malls, theatres, commercial developments and educational institutions are however expected to remain sluggish as they are most impacted by the Covid-19 pandemic. Cheap labour and lower comparative base shall lead to a double-digit recovery in the construction sector in 2021 as per Turners’ estimates. Our evaluation of the situation is in sync with projections of regional financial behemoths like ADB projecting a stronger than expected recovery in 2021-22 fiscal year as business picks up through restoration of personal mobility.

Indian resilience coupled with well thought out interjections by the administration in the right quantum and at correct intervals have started yielding slow but steady and assured signs of recovery as we draw towards the beginning of 2021. With ‘Atmanirbhar Bharat’ as the essence of the look-ahead path, GoI’s schemes like Affordable Rental Housing Complex (ARHC) shall surely present opportunities of investment in the mid to long term. A robust policy framework supported by continuous public spending by the Government, maybe even at a cost of a fractional increase in the fiscal deficit, shall help reverse the sentiments. Realignment of global sentiments post Covid-19 and concerns of the international community to broad base the manufacturing away from over concentrated nations such as in China shall see the relocation of businesses to countries like India who have a strong politico-legal system. 

Challenges like labour shortages and liquidity issues shall need to be monitored and resolved through surgical interventions by the participation of public and private sectors, increasing debt to GDP ratio etc. Sectors like hospitality, malls, theatres, commercial developments and educational institutions are however expected to remain sluggish as they are most impacted by the Covid-19 pandemic. Cheap labour and lower comparative base shall lead to a double-digit recovery in the construction sector in 2021 as per Turners’ estimates. Our evaluation of the situation is in sync with projections of regional financial behemoths like ADB projecting a stronger than expected recovery in 2021-22 fiscal year as business picks up through restoration of personal mobility.

Do you feel the border skirmishes with China can cause a paucity of the equipment utilized in Indian construction and infrastructure projects? (E.g. a lot of such Chinese equipment are being used in the ongoing rapid metro projects)
Issues with China are disruptive and expected to prolong considering the expansionist hegemony of Chinese getting effectively blocked by an equally befitting anchor footed response from the Indian government and our defence forces. Trade shall be a casualty between the two most populous nations on the globe in the mid-range, but national interest and pride do play a decisive role in such circumstances. Access to availability of construction machinery for expedited project execution capabilities shall be the key for construction companies to sustain, grow and enhance their profitability margins. Already the size of the construction equipment market has outgrown in the range of $ 5-6.0 billion and companies are again reverting to the earlier model of owning the equipment rather than renting to check the increasing cost and margins.

The Chinese competitive advantage cannot be denied despite its rising domestic labour cost. But India has to strategically respond by shifting gears towards emerging manufacturing hubs of South Asia like Malaysia, Thailand, Taiwan, Indonesia and Vietnam. Each of the above-mentioned alternatives does have their distinct advantages and disadvantages. Ease of doing business, geographic location, logistics and availability of skilled manpower, cost, political stability, taxation structure, legislation conducive to trade and commerce are some of the factors which work in favour or against each emerging source. Proper evaluation of the criterion has to be done by the importing organizations from India to have dependable alternative supply lines. Besides, GoI is also re-vitalizing strategic partnerships with European countries to explore newer markets for sourcing and supply of goods. A holistic response based on pragmatic and dynamic moves consisting of selectively importing and setting up manufacturing bases under Atmanirbhar Bharat and Make in India initiatives shall help resolve the issue of capital goods and machinery for the Indian firm. As the awareness of quality grows, the urge and demand for ultracheap and less dependable products shall automatically be replaced with better products at an affordable higher price.

What are some of the challenges that the industry will have to collectively address?
Every challenge gives us an opportunity for self-introspection and improvement. The recent setbacks of diminished demand in the construction sector compounded by Covid-19 disruption are also no different. The biggest challenge the industry faces today pertains to the credibility to deliver. The industry needs to introspect and find a collective strategy to gain investor and buyer confidence through consistency in timely deliveries of the project with enhanced quality benchmark standards. Efficiency is the ‘fundamental mantra’ with improvement in cost and productivity for higher returns in terms of value delivery to the customer for any organization looking at improving its bottom-line performance. Poor performance, shortage of skilled manpower and sustainability issues are challenges requiring attention for resolution. Issues of cash crunch and liquidity, access to alternative cheap credit lines, taxation relief from Government, and disposal of existing inventory are the other major issues concerning the construction segment that need to be collectively addressed.

What kind of safeguards need to be in place to ensure the business of construction and infrastructure as also the human assets involved remain safe from any subsequent waves of the Covid-19 pandemic?
New normal introduced as the standard of operations due to Covid-19 pandemic has altered the way business is conducted throughout the world. Introduction of the social distancing norms in all aspects of the economy has disrupted the accepted and implied standards of productivity in every industry, especially in the construction and infrastructure business. Policies need to be formulated to deal with Covid-19 necessities and urgencies by laying the medical and administrative protocol based guidelines issued by experts and the government agencies. The need is for the evolution of detailed drills based on the principles of social distancing and imparted to all stakeholders through incessant training and awareness campaigns. We insist on documented recordings of all measures taken so that complete transparency is maintained on the genuine actions taken for the safety of the workers.

Detailed plans have to be evolved for addressing both workplace-related precautions and those required in labour camps during community interactions of workers. Maintenance of self-hygiene, sanitization, personal protection equipment, material handling and quarantining guidelines and social distancing parameters need to be codified for implementation at all sites. Premium needs to be placed on spreading awareness about measures necessary to prevent novel Coronavirus spread while working in groups. Turner believes in a continuous exchange of information, knowledge and experience among all industry stakeholders to provide a dynamically evolving approach to ensure the safety of all workers at its sites. Until the arrival of a dependable vaccine, prevention through enhanced vigilance is the only solution to prevent any reemergence of Covid-19 pandemic through a second wave. This is especially required in the coming winter months when a risky casualness born out of protocol fatigue and subdued fear psychosis is setting in among the masses in general.

What are some of the ongoing projects Turner will be completing in the year 2021?
Turner, as a part and parcel of the industry, also remains impacted by Covid-19 disruption due to restricted operations. However, we are lined up with multiple deliveries in 2021 under diverse residential, commercial and infrastructure segments. We shall be delivering projects to our clients such as the Hiranandani Group for their HFC project in Panvel (Mumbai), Phoenix Group for their Indore mall and a classified aviation project. Partial milestone deliveries are also coming up in both Delhi (DIAL) and Bengaluru (BIAL) airports. Besides, Turner has an impressive line-up of other major and minor projects due in late 2021 or early 2022 pushed back due to Covid-19 disruption.