Nuberg EPC has delivered over 60 turnkey projects across 32+ countries AK Tyagi, CMD, Nuberg Engineering Limited

How is the group positioned in the current fiscal year?

Nuberg EPC has been on a rapid growth path which did suffer from the pandemic induced global slowdown. However, we see it as an aberration in our growth journey. Therefore, even though the FY21 numbers are lower than the FY20 numbers – our current order book is at nearly 40% growth over the FY20 numbers of Rs 501.32 cr, and we see it further expanding in India. The Global scenario will be clearer once the current crisis settles down.

What growth do you foresee of Indian EPC companies in present times and which sector will prove to be the cornerstone of progress?

In the coming years, India is expected to have a huge demand for the EPC sector. Shri D.V. Sadananda Gowda, Union Minister of Chemicals and Fertilizers, has stated that the Indian chemicals and petrochemicals industry is expected to get an investment of Rs 8 lakh crore by 2025. India’s rising defence self-sufficiency needs, as well as ‘Make in India’ across sectors, will create a need for equivalent chemicals infrastructure. Raw materials are also required to produce polyethylene and PVC goods. As a result, India has huge potential to grow the chloro-chemicals business, particularly inorganic chemicals such as trichloroethylene, polyaluminum chloride, and other chlorine-based water treatment chemicals.

The Government of India is looking for prospects about green hydrogen as a potential transport fuel. Union Minister of Road Transport and Highways, Nitin Gadkari has also stated that he will soon start using a vehicle that runs on green hydrogen fuel as a pilot project to gauge the feasibility of such a vehicle. In addition, the Union Power minister RK Singh unveiled phase I of the National Green Hydrogen Policy this year. He said, “the scheme will allow renewable energy to be sourced freely from anyone for the production of green hydrogen with various concessions, and the policy will help reduce the cost of production of carbon-free green hydrogen.”

Which are your ongoing projects? Where? The timeline of its completions

What is the company’s current order book position? How much growth do you expect in the days to come?

The company’s order book currently stands at 700 crores. In the fiscal year 2019-20, net sales increased to Rs 501.32 crore. Although there has been a downfall in the revenues but is expected to bounce back at a significant rate in the Fiscal year 2021-22.

Construction and Infrastructure sectors are the backbone of the Indian economy? According to you what boost is required for the sector to boom technically?

Construction and infrastructural sectors are not just backbone but also the launching pad for national growth, prosperity, quality of life of citizens. In this regards I am really happy that Finance Minister Nirmala Sitharaman has presented a “nation-building Budget” that focuses on the development of core infrastructure critical for economic growth.

Additionally, The Gati Shakti mission of the Prime Minster will provide the much-needed transport infrastructure for the mobility of products and services required by core infrastructure to enable the entire economy. The Government and EPC industry together should also focus on ensuring that there is a large section of engineering talent created and attracted towards core engineering career. India’s 5 trillion dollar economy vision will depend on enough talent being available.  Infrastructure projects are capital demanding and necessitate a large infusion of funds for successful completion. Availability of financing should be made even easier to further accelerate the industry. The time taken to execute contractual commitments due to different regulatory requirements should also be addressed with pan-India policies in the sector to ensure standardization.

Your opinion on the recent union budget. What proactive role policymakers need to play for the EPC industry?

The finance minister has proposed a budget that is both imaginative and expansionary. The focus of the FM’s India@100 initiative is on micro-all-inclusive welfare, digital economy and FinTech, tech-enabled development, energy transition, and climate action to support macro-growth. The budget’s seven pillars have been carefully considered. We at Nuberg EPC are particularly enthusiastic about the focus on Energy Transition and Investment Financing among the seven. These, together with the previous announcement, focus on the USD 5 trillion economies, which will open a plethora of chances for the country and our business.

I’d also like to call attention to the focus on a) public investment to modernize infrastructure over the medium term, leveraging Gati Shakti’s tech platform via a multi-modal approach, b) a self-reliant defense sector, with 68 percent of defense capital procurement budget earmarked for the domestic industry in 2022-23, c) capital expenditure being increased to Rs 7.5 lakh crore, and d) blended fuel being encouraged with a custom tariff on unblended fuel. Another important step is the issuance of Green Bonds, which will facilitate the transition to a hydrogen economy.