We are focusing more on large value projects
L&T is one of the important players in the country´s infrastructural development. It has a very strong background of doing multi-disciplinary projects of international quality. DK Sen, Director (Whole Time) and Sr Vice President (Infrastructure), L&T shared his views with ICR team on some aspects of infrastructure -related matters.
Do you see any change in the scenario after the new government came in power? In which areas do you see the change?
Roads and highways sector bidding process is expedited and many structural issues like faster environmental clearances, improved process of ROB clearances, declaration of appointed date only after acquisition of 90 per cent land, exit clause in PPP projects & premium deferment incorporation in new DCA are getting the much-needed impetus. Alternative model like hybrid annuity, etc. are some of the key aspects which has happened since new the Government took over.
Which kind of projects is your USP?
L&T is participating only in bids which are above Rs 500 crore in road segment. In Railways, large value orders like DFCC are L&T´s focus points. L&T can take up mega projects which are technically challenging and need integration of several engineering disciplines.
Kindly provide us roughly the component of concrete and steel used in projects, What is your CAGR?
The component of concrete and steel used in the project is largely determined by type of pavement and structure density of the corridor. For typical transportation infrastructure projects, the same can range from 8 per cent to 10 per cent for concrete as well as steel. About the CAGR, it is more than 25 per cent in all the parameters of growth.
How do you monitor the progress of the projects?
Projects are monitored against base programme, which is updated frequently and modified intermittently in case of significant scope change of scheduled /unscheduled deviations. The plans are prepared using standard project management software such as MS Project and Primavera. Periodic progress reviews are conducted both internally and with client and necessary course correction actions are taken to get the project back on schedule.
Few words on the infrastructure projects you carry out in other countries.
Currently, we are carrying out projects in the Middle East only, mainly in the UAE, Qatar and Oman. The highway construction is competitive in GCC, with various local and international players in the fray.
Give a brief on the financial management of projects.
Project financials are monitored with respect to base estimate which is reviewed and updated frequently and modified as necessary to reflect price / quantity variations. Key procurement decisions are evaluated in comparison with the original estimate before committing costs. The project cash flows are estimated and reviewed systematically to access and optimize financing requirements.