Madhucon Projects Making Its Mark in Infrastructure Sector

the Real Estate sector
"Madhucon Projects has made its mark in highway sector, completing 360 km of highway with 330 km in hand. In laying two lane rigid concrete road over a stretch of 1470 mtrs in 24 hours, it has created a record.... The Company has plans to enter into the Real Estate sector... and premium flat construction," says Nama Nageswar Rao in an interview with SKK of NBM&CW.

How do you look at the current development in the highway sector and how the highway sector can be put on fast track?
The current development in the highway sector is quite encouraging as out of the Government plan investment of over Rs.13 Trillian infrastructure in the next 5 years covering National Highways, Urban Highways, Ports, Railways, Irrigation etc. Highway sector alone accounts for nearly 12% i.e. Rs.1.5 Trillion. National Highway Authority of India has speeded up North – South – East – West corridor under NHDP Programme under BoT / PPP scheme. This would result in the Highway sector growing on fast track.

PPP route for development in roads and highway sector has gone well as development model. What further enabling provisions are needed to make it attractive to the investors?
the Real Estate sector
Under PPP route number of developers have entered the highway sector. Government has to consider once again to introduce 10 (23G) section of Income Tax Act which has been taken away in the recent budget. This will go a long way for the developers to have source of getting cheaper funds in developing infrastructure projects. However, the benefit under 801A has to be extended for a further period of 5 years.

Land acquisition, law and order and performance of some of the companies executing the projects are some of the problems holding back the progress of projects. In what best way, these problems can be resolved as per Madhucon Projects experience?
There need to be a close co-ordination between NHAI and State Government for tackling the issues relating to land acquisition, law and order problems.

Please tell us something about Madhucon Projects Ltd., how it had evolved itself to the position it enjoys today; the projects in hand; various systems placed at its end to ensure that projects are completed in time and without cost overrun and also state some of your project success story.
the Real Estate sector
Madhucon Projects Limited has made its mark in the highway sector by completing 360 km of highways. At present the company is executing the BoT projects of 330 km in addition to the cash contracts from NHAI and State governments.

Madhucon Projects Limited has completed the highways ahead of the time schedule in the case of direct cash contracts or back-to-back EPC.
  • Madhucon Projects Limited has completed Chittorgarh-Mangalwar Road of 48 kms length 4/ 6 divided carriageway one year ahead of schedule and earned bonus.
  • Laid 2 lane rigid concrete road over a stretch of 1470 mtrs just in 24 hrs and created a record in the Indian construction industry.
  • 360 km of 4/6 laning on National Highway in the last 5 years and 100 km rigid (concrete) pavement within last 3 years.
  • The Company is at present having Rs.4950 crores orders in hand which consists of highways including BoT toll roads and Irrigation projects. All these projects have to be completed within the period of 48 months.
What are various equipment facilities at Madhucon Projects to execute projects?
Madhucon is at present possessing capital equipment, value more than Rs. 210 crores, which consists of one 410 TPM Metso Mineral’s Crusher, one 200 TPM Metso Mineral’s Mobile Crushers from Finland, Six 160 TPH Hot Mix plants from Lintec, Germany, two 9 M concrete pavers from USA, 12 ABG Bitumen pavers in addition to the Madhucon owns number of more than 400 Taurus tippers, soil compactors, excavators, power curber etc.

What are company future plans, particularly its plan to enter new infrastructure development areas?
The Company is constantly participating in number of BoT/Annuity projects being floated by NHAI and is also entering into the Real Estate sector. The Company has acquired 2 pieces of land in Hyderabad and plans are under way to enter into premium flat construction, 3/4 star hotel and shopping mall.
NBMCW September 2006
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