The Hindu Business Line : `Infrastructure sector yet to enter boom phase'

"THOUGH the infrastructure sector in the country is witnessing an increased activity now, we have not yet entered the boom phase," according to Mr Ajit Gulabchand, Chairman and Managing Director of Hindustan Construction Company Ltd (HCC).

Talking to Business Line on the eve of the Union Government releasing a stamp of Seth Walchand Hirachand, the founder of HCC, Mr Gulabchand said that in spite of an increase in the Government spending on infrastructure, India lagged behind China. "China consumes 500 million tonnes of cement while India accounts for the consumption of only 130 million tonnes per annum", he said.

Stating that HCC's vision was to be the industry leader, he said that the company was expected to post a turnover of Rs 1,500 crore during the current fiscal against Rs 1,171 crore in 2003-04. HCC was currently working on 28 projects and its current order book position stood at $ 1062 million.

He said that HCC's ongoing projects included Bandra - Worli Sealink, Delhi Metro Rail Corridor Project, Tala Hydroelectric project in Bhutan, Kudankulam Nuclear Power Project and the Mumbai Water Supply Project. It was also undertaking several international airports in Saudi Arabia, Tanzania, Sri Lanka, Iraq, Myanmar, Qatar and Bhutan.

When pointed out that for a 78-year-old infrastructure development company like HCC, the turnover of Rs 1,500 crore could not be an achievement, particularly in comparison to what has been achieved by relatively recent entrants such as IVRCL and NCCL, he said that one should not look at just the turnovers but what the company had done.

In this context, he pointed out that HCC was the first engineering company in the country to be accredited with three global certifications for quality, safety and environment. It had so far built 52 power projects, 300 road and railway bridges, 22 dams, several barrages, aqueducts and pipelines apart from construction of expressways, railways, tunnels, steel plants, oil refineries and marine structures.