Page 52 - DIGITAL ISSUE MAY 2018

INTERACTION ROAD & ROAD CONSTRUCTION EQUIPMENT

However, we do believe that Government paring and free up their capital. Looking at future growth of Public Private Partnership.
must continue with its current practice of such enormous opportunity opening up in Besides revitalising the primary market
judicious mix of PPP and EPC projects the sector, we do see a strong potential for bidding in PPP, the future growth of
based on the individual merits of the a growth generating platform working on aggregator platform through portfolio
projects. While public funding for EPC asset aggregation model to make the most consolidation also looks very promising. We
projects would keep the contractors engaged of existing opportunities in both primary do believe that going forward there would
with a robust order book, private capital in and secondary market. At BRNL, we do be a lot of activities in both primary and
PPP would give major llip to infra creation intend to capitalise on primary market secondary market for value accretion.
at the required scale and size. opportunities under BOT and HAM while
aiming to strengthening our position in Future outlook for the industry and from
Tell us about your present order book road infrastructure development business a company perspective
status? How optimistic are you about FY through increased activity in the secondary When the policymakers’ intent and actions
18- 19 and which sector is expected to market especially when assets are available are directed towards revitalising road
drive your business volumes this scal? in the market at attractive valuation. development plan targeting a whopping
Bharat Road Network Limited is a Road 190 percent growth in capital outlay over
BOT company constantly focused on Considering the threefold rise expected the past 5 years, the estimated investment
portfolio expansion through primary and in India’s urban population, tell us about volume of `6.9 tn speaks for themselves
secondary market opportunities. Ever since your future outlook on the emerging about the outlook for the sector. e initial
we entered in PPP space at its nascent stage opportunities and the strategies adopted success of road monetization program
almost a decade back, we have managed over in expanding your business volumes? and investment plans under Bharatmala
$2 bn of Highway assets either directly or As we know that India is today standing at has given the much need booster dose
through our sponsors, subsidiaries and the cusp of a major economic transformation to the sector and has setup the stage for
associates. aiming to accelerate its growth to 9 per exponential growth for companies engaged
Today, while the Government is focusing on cent CAGR over the next few decades, in highway construction and development.
Transforming India through infrastructure there is an urgent need for massive Furthermore, Government’s 40km/day road
creation at gigantic scale with estimated infrastructure ramp up to commensurate construction target and large bid pipeline
investments of over `6.92tn towards with the growing economic activities. As is expected to ensure that NHAI’s project
constructing 83,677km of roads under physical infrastructure is the key driver for award over the next couple of quarters
Bharatmala and other road development country’s economic growth, it is imperative remains robust. While both the central
program, we see the road investment cycle to continue the focus on revitalising Public and some key state government heading up
in primary market reaching an unparalleled Private Partnership to ensure time-bound towards election next year, we do believe
scale and magnitude. On the other hand, creation of world class infrastructure. that capex allocation for infrastructure to
the opportunities at secondary market Since, apart from attracting investment in remain encouraging and would continue to
are too growing exponentially as lenders infrastructure, the biggest bene t of PPP is drive growth for road focused companies.
are eagerly looking out for strong project its ability to draw on the asset management With such a huge opportunity shaping up
partners who are capable to put the stalled skill set of the private sector. the roadmap for growth of the sector, we
projects in their portfolio back on track. We do believe that Indian policy- at BRNL are strongly placed to capitalise
Additionally, the EPC contractors, who makers’ dream of making “SabkaSaath, on our nancial engineering capability and
were once forced to join PPP projects as cash SabkaVikaas” a reality hinges largely on the asset management skill set to make the most
contract had completely dried out, are today development of country’s road network. of the opportunities and strengthen our
desperately looking to sell assets for debt We are therefore quite optimistic about the asset portfolio.

58 CONSTRUCTION OPPORTUNITIES|MAY 2018