By Paul Wallett,
India’s continued push for infrastructure spending is a beacon of hope in the middle of a global economic gloom fueled by the pandemic and now the Ukraine-Russia conflict. It also stood out as the highlight of this year’s Budget speech, underlined by the proposal to increase the infrastructure capex outlay by 35.4% over last year. Further, the government has proposed allocation of an additional 20,000 crore for expansion of national highways; he and the Finance Minister acknowledged roads, railways, ports, airports, mass transport, waterways and logistics infrastructure as the seven engines of economic growth.
There are two points worth adding to this discussion. First is the infrastructure sector’s unique capability to create new jobs nationwide, which is hugely important in the wake of the pandemic-induced unemployment challenges. More nationwide infrastructure projects will go a long way in bringing dignified livelihood to the unemployed.
The second point is about delays in completion of infrastructure projects. By and large, with notable exceptions, construction project management and execution is quite tardy. Recent government data indicates that of the 1,671 currently ongoing central infrastructure projects worth 150 crore & above, a whopping 83% reported time or cost overruns. While 514 of these projects were delayed, 443 reported cost overruns. 206 projects reported both time and cost overruns.
To be candid, project delays and/or cost overruns are a bane of the construction sector worldwide. Moreover, the reasons for time and cost overruns are also remarkably similar across nations and range from delays in land acquisition to financing to contract-related issues. Yet, quite a few countries have been successful in managing speedier execution of infra projects by learning from their experiences and planning ahead to avoid known traps, frequently by using modern technology.
India can also benefit a lot by using a similar approach. It is important to first categorize all known causes of project delays or overruns into two distinct stages: pre-construction and construction. The pre-construction stage would cover issues like land acquisition, procuring necessary forest or environmental clearances, financing and tendering delays. Delays in construction stage on the other hand are typically caused by changes in project scope, inadequate manpower, or delays in finalization of detailed engineering or local-level political and law and order issues.
Technology can then be deployed to manage and control a majority of issues in both stages, leaving only a handful like land acquisition or law and order that need delicate handling by competent authorities.
Modern project management software is incredibly powerful in cutting through procedural and bureaucratic delays by automating the entire review and approval workflow. An NHAI or any relevant project leader for example, can readily see on his/her screen where exactly a particular clearance is stuck and for how long, and can further trigger automatic reminders to the concerned authority for speedier execution.
Real-time tracking and automatically triggered reminders are extremely potent tools in fast-tracking procedural work, since no department or bureaucrat would want to see their names highlighted as a bottleneck in the software’s dashboard.
Even more competent and powerful software solutions are already available for managing and controlling projects once they have reached the construction stage. Digitized 3D models, workflows and processes can bring all stakeholders of a project, including contractors and execution teams on a single and centralized platform, enabling real-time progress monitoring.
Separately, asset management tools can be used to optimize the movement of heavy equipment on different project sites to minimize idle time, while material resource planning software can handle sourcing of steel, cement and other materials to ensure that the precise quantities of all materials are available exactly when needed and where needed.
Other tools can optimize manpower and be used to manage onsite safety protocols for all workers. Going further, cutting-edge technologies like robots and drones can be used to inspect and monitor dangerous sites closely, minimizing human intervention.
All of these innovations are already proven and being used extensively in many countries around the world. In India, the Statue of Unity is an important example of effective use of technology in a massively complex project, which finished two months ahead of schedule.
Our internal analysis found that use of modern technology cuts project duration by up to 50%, and the cost of field layout also by up to 50%, besides improving accuracy by up to 80%. It can further contribute to up to 30% higher machine productivity, up to 30% reduced overall costs including fuel savings, and up to 50% less rework, along with significant reduction in waste.
To realize these benefits, the Indian government ought to use a combination of rewards and mandates to encourage technology adoption in infrastructure creation. The UK, Sweden and several other countries have mandated the use of 3D Building Information Modeling (BIM) for all public projects. India too must mandate it, opening up the pathway for the larger construction industry to transition to the digital age.
The Digital India program can act as the nodal point for government-wide adoption of modern construction technology solutions. For private sector contractors, incentives or subsidies can be used to encourage the purchase and use of best in class hardware and software solutions.
A sustained push for greater use of technology in infrastructure projects could well be transformational for our country. When used effectively, technology can completely turn around the pace of infrastructure creation in India, ensuring that all seven engines are firing on all cylinders, improving the lives of all citizens.
(The author is Regional Director, Middle East, and India, Trimble Solutions. Views expressed are personal and do not reflect the official position or policy of the FinancialExpress.com.)