Deep Vadodaria, Chief Operating Officer, Nila Infrastructure Ltd
has more than 10 years of experience in the field of management, operations and project execution. He has excellent PR capabilities and is recognized for his leadership skills, distinctive manner in addressing complex issues, immense reasoning power as well as his outstanding problem-solving and entrepreneurial abilities.
Incorporated in the year 1990, Nila Infrastructure Limited
is well established player in developing Civic Urban Infrastructure Projects on EPC, Turnkey, PPP Mode, as well as Private White Label Construction and Industrial Infrastructure Projects. It also has a long track record of developing and marketing own Real Estate Projects with varied spectrum ranging from Affordable Housing to Luxurious Housing. Nila has major presence in Gujarat and has expanded footprint into Rajasthan. Nila has been registered as approved Contractor in Special Category – I Buildings Class with Government of Gujarat, Roads and Building Department. The quality management system of the company is ISO 9001:2008 accredited. Its major clients include Ahmedabad Municipal Corporation (AMC), Vadodara Urban Development Authority (VUDA), Rajasthan Avas Vikas and Infrastructure Limited (RAVIL), Adani Group, Sandesh Applewood, etc.
Replying to Yash Ved of IIFL, Deep Vadodaria
says "We have satisfactory built more than 10 million sq. ft. The total area we are developing on EPC basis, from 10 ongoing projects, is approximately 2.0 million sq. ft."
Brief us about your current and upcoming projects in infrastructure and real estate space?
We are mainly engaged in development of civic urban infrastructure projects on EPC/turnkey and PPP basis for various civic bodies as well as reputed corporates. Our core strength is civil construction. As on September 30, 2015 our unexecuted orderbook stood at Rs. 252 crore, which mainly comprise Affordable Housing Projects for civic bodies worth Rs. 192 crore, a Multi-level Parking facility forAhmedabad Municipal Corporation (AMC) worth Rs. 41 crore, and a couple of projects for private developers like Adani group and Sandesh Group.
We are also executing a Slum Rehabilitation and Redevelopment project worth Rs. 41 crore on PPP basis for AMC near Shahibaug, Ahmedabad.
In the Real Estate (RE) space, at present we do not have any new project under execution as we want to wait for the demand from actual home occupiers. Currently, our focus is to liquidate the RE inventory with approximate book-value of Rs. 22 crore.
You are optimistic about Rajasthan. Tell us more about your orders here.
We are in race for more projects in Rajasthan as we believe Rajasthan is the new Sun-rise state having immense potential in Civic Urban Infrastructure. We have recently signed a MoU with the Government of Rajasthan at “Resurgent Rajasthan Partnership Summit - 2015”, for development of Urban Infrastructure as the State Government will facilitate smooth implementation of the projects by offering a “Single Window Service” through local concerned authorities.
The MoU of about Rs. 400 crore is for construction of Urban Infrastructure projects including affordable houses under Affordable Housing Policy that allows private developers to get Transferable Development Rights (TDR). We are planning to execute urban infrastructure projects, including affordable housing on land area of approximately 40 acres, within Rajasthan over a period
of four years.
What is your current order book position and where do you see it headed?
Our unexecuted orderbook as on 30th September, 2015 was Rs. 252 crore and post that we have received a Slum Rehabilitation and Redevelopment project worth Rs. 41 crore. Gujarat has become the first state in the country to take up projects for redevelopment of slums in urban areas under the Prime Minister’s Awas Yojana (PMAY) on PPP basis. We expect few more Slum Rehabilitation and Redevelopment project on PPP basis in next few months.
As far as orderbook on 31st March, 2016 is concerned, we are working towards a net orderbook of approximately Rs. 350 crore.
What will be your focus area going forward?
As a strategy, we want to leverage our core strength i.e. civil construction, moreso when the Affordable Housing space offers plenty of opportunities with the government’s initiatives such as Housing for All by 2022, Smart Cities, etc. While EPC orderbook will keep on growing in, almost, auto-mode, we are focusing to build our Slum Rehabilitation and Redevelopment orderbook on PPP basis. Apart from this, we will selectively take-up niche projects like Multi-level Parking, BRTS/Metrostations, etc. We believe the swift execution will be the key and for the purpose, we are working on a couple of modern, cost-effective and proven technologies that can ensure quick turnaround with adherence to the quality stipulations, too. Meanwhile, geographically, in the near future, we will consolidate our existing presence in Gujarat and Rajasthan.
What is your land bank?
As on September 30, 2015 we have a Land Bank of approx. 384,000 sq. mtrs. / ~94 acres available for future projects. Such propitious land bank also includes certain industrial land in vicinity of upcoming Auto Hub in Gujarat.
How much area are you developing either directly or for other Principals?
Currently we are not actively developing any of our owned Real Estate Project, although over the last 25 years we have satisfactory built more than 10 million sq. ft. The total area we are developing on EPC basis, from 10 ongoing projects, is approximately 2.0 million sq. ft.
What is your take on affordable housing?
We are very enthusiastic about this Affordable housing sector, moreso as it is now getting a significant push from the Pradhan Mantri Awas Yojana – “Housing for All by 2022” Scheme. It aims to construct more than two crore houses across the length and breadth of the nation within a span of next seven years. The poor under EWS and LIG categories in urban establishments are the target beneficiaries of the scheme and it also provides for empowerment to the woman of the country.
Currently the projects we are executing are under EWS, LIG and MIG categories. So, for player like us that are already active in Affordable Housing space, the focus of Central and various State Governments on creating more affordable houses presents a huge opportunity for growth in our core area of strength.
Your expectations from the Union Budget?
The Union Budget for FY2017 is going to be crucial. India has already experienced two consecutive failed monsoon and damage from unseasonal rains and floods. However, the economy has not witnessed major jolt on both inflation and growth. Compared to a year ago levels, certain economic parameters have undergone an improvement, for example, inflation has been reined in within RBI’s comfort zone, GDP growth has shown signs of recovery, the external account has received tremendous cushion with the bottoming-up of crude oil prices, which further assisted in improvement in fiscal deficit, CAD and inflation.
There are macro concerns on reduction in exports, slowing-down in FDI, China's economy growth and currency valuations, etc. The Union Budget should focus on maintaining fiscal prudence while also providing an enabling environment for growth. This could be attained through better targeting of government expenditure and further reduction in subsidies. On the revenue side, the governmentshould introduce measures to increase its disinvestment programme. In the scenario when the banks are passing through a rough-phase impacting the credit-offtake, the primary thrust should be on increase in government’s own capital expenditure. This could be done primarily through spending on infrastructure. Further, increased participation of corporates and municipals in the bond markets should be encouraged. While, the savings made on the subsidy bill should be directed towards the development of infrastructure for industries.
I think, with this backdrop, the following should be expected from the forthcoming budget: