Looking at the massive infrastructure development announcement in the budget 2022, experts share their optimism and future business expectations in construction of roads & highways.

India has the 2nd largest road network in the world with 5.89 million kms. In the recent Union Budget 2022, the allocation for the Ministry of Road Transport and Highways has seen a 68% increase with ₹1,99,107.71 crore set aside. This is in line with the massive target Finance Minister Nirmala Sitharaman has set for expansion of National Highways network by 25,000 km in 2022-2023.

Moreover, given the ongoing trends of project procurement across the construction and infrastructure segment, we foresee a major change in the equipment segment, along with building materials and sustainable solutions.

Opportunities and challenges in procuring road construction material in the domestic market

According to Sooraj Cherukat, Head – Sales & Marketing, Hailstone Innovations Pvt. Ltd., “The recent union budget has crafted the infrastructure segment’s growth prospects pretty well, especially for the financial year 2023. Targeting the development of national highways, the government mentioned an expansion of 25,000 kilometers. The target and the prospects are actually promising. However, even if we meet just meet 60 percent of our goal, growth will be positive for the national highway projects are very domestic. This means that contractors or EPCs from all across India are participating in these projects. None of the regional players are focusing on one particular area or a specific location. Market players are going national by bidding and taking up projects based anywhere in India.

According to Shridhara C N, Associate Director – Technical & Marketing, Preca Solutions India Pvt. Ltd., Such opening and such development will generate ample of opportunities for the infra projects. With the government’s massive announcement of road and highways development, we foresee positive development and business opportunities in India. Even the government is always enthusiastic implementing innovative developmental projects across the infra segment. With increasing government’s focus, we find appropriate implementation of timelines in project completion.”

According to Ratan Lal Kashyap, Sr. Vice President – Procurement, G R Infra projects Limited, “Such a huge fund allocation to the infrastructure sector will give a big push to the industry’s growth. This investment in various infrastructure projects will help the government push forward with making in India/AtmaNirbhar BHARAT as the advanced logistics infrastructure will leverage the development of industrial corridors all across the highway being built up.”

Such opportunities create broad business avenues for both the EPC and the local companies. This further generates a huge demand for mobile plants, as well as crushing and screening plants. Interestingly, the project specialists and the industry are focusing more on mobile plants, where they install the plant to meet the specified requirements for the raw materials and other construction materials for road and highway developments. A similar process is followed for procuring equipment. So, this is an opportunity for CE businesses to expand their business.

Although the budget announced of development of 25,000 kms of road construction in a year, Shridhar believes that making 70-75 kms of road per day will be challenge. This further emphasises on using advanced technologies including precast technologies. With these advancements, various sectors can successfully built quality roads.” However, this target will add booming business opportunity for aggregates business and aggregate manufacturers.

Feasibility of massive precast technology in construction

Today, precast roads can be executed, but it has to be implemented in India even more. We already have precast roads in cities like Bangalore, and in some parts of the North. Our chief engineer for R&D has been highly energetic in implementing precast build roads. “I believe, roads being built with precast technology in India, is an added advantage. and in north India some areas so, they done some of the roads actually one of the R&D chief engineer in north India is energetic and itself personally implemented the precast roads. This is definitely an added advantage to India’s infra developments, and will further enhance the life span of the construction.

Normally, bitumen roads witness a season where the water enters below the bitumen that further damage the construction leading to potholes and uneven structures. So, if the bitumen is very weak, if water is comes, the sinking of the surface will happen if it is a pre stress element, it will take more deflections and vibrations when the vehicle movement comes in and the maintenance of roads has really decreased drastically. Now we’re in India, how much government is spending to repair the roads? Nobody can imagine that all can be saved for India, definitely it is an added advantage if they implemented the precast things.

Digital technologies in CE maintenance

Discussing the imperativeness of digital technologies in CE maintenance, Ratan Lal feels that the appetite to invest in future-ready plants and technologies has always been a constraint for smaller contractors due to the long-term investment required. “Technologies like GPS, fuel management systems have helped optimise the equipment utilisation. 3D technology use in grading systems has brought accuracy in paving, reducing the overall time of contracture. Level sensors in paving have helped maintain the desired level with gradient, improving the riding quality of commuters. LIDAR technologies have brought in ease of design with accurate data”, he adds.

Required policy framework for aggregate production for mining

Here, Sooraj highlights that every state has different set of rules and regulations crafted as per the tribunals and legislations. These differences add challenges to attain sanctions in a timely manner. On one hand, we are running at a faster pace for the national road development with a deepened focus on infrastructure development in focus; whereas on the o0ther hand, supply of raw materials and ease of doing business is going down. “I think there should be some green channels and some one-time approval processes for specific constructions and ensure that there are no sustainability issues in the future.”

Adding more to the discussion, Ratan Lal feel that the policies and regulations need regulars review from concerned authorities considering frequently changing market scenarios and market dynamics. “Few pricing parameters are very severely impacted as domestic players have taken advantage on increased international pricing parity and demand and supply gaps imbalance created in market. Opportunist need to be appropriately penalised creating norms which clearly indicates on violations set by government”, he adds. Moreover, bidding criteria’s needs to be reviewed where bidders with good track records, bids only with financial feasibility may be entertained, qualifications criteria’s to be set based on reasons for failure which create a bench mark and help all bidders align to laid policies etc.

Creating a concrete road and bridge future

The world is transitioning to a digital world as technology advances. As a result, all industry participants are obligated to implement change management by adopting cutting edge technologies and staying ahead of the curve with changing times. Every organisation must have a digital plan with milestones in order to compete in the industry’s fierce competition.