Skanska International plans slew of projects in India; local arm likely
Sourav Majumdar in Calcutta
Skanska International Civil Engineering AB, the $8 billion Swedish construction giant, has lined up 12 infrastructure projects worth Rs 10,000 crore (Rs 100 crore = Rs 1 billion) and is likely to set up an Indian subsidiary.
Half of the 12 projects were in the hydroelectric sector, while the rest were a mix of roads, bridges, harbours and the Metro project, Skanska's regional manager for south Asia, Ragnar Udo, told Business Standard.
“We at Skanska have a long-term view on India. We see a major, upcoming market in this country with enormous possibilities. My plan is also to set up a full-fledged company here in due course once the turnovers justify it,” Udo said.
Skanska has been associated with National Hydroelectric Power Corporation's Rs 2,400 crore Uri project in Jammu & Kashmir. The 480mw plant employs 4,500 people.
The project became operational in 1997 six years after work began, against 10-15 years normally taken to complete such projects, Udo said.
He said West Bengal was crucial for Skanska, since two of the major projects it has been shortlisted for are in the state. The first project is the Rs 3,400 crore, 900 mw Purulia pumped storage project being aided up to 85 per cent by the Japanese government. The shortlist also includes three other global majors.
Skanska is also involved in a Calcutta Transport Infrastructure Development project consisting of three individual packages for improvement of 10 intersections in the city and includes construction of six flyovers. The Rs 400 crore project is being undertaken by the Hooghly River Bridge Commission, a state government undertaking. Skanska has been pre-qualified for the project.
Skanska is also involved in the Mumbai-Pune expressway. On the Marxists-led West Bengal government, Udo said corporates worldwide preferred stable governments and the Jyoti Basu government was very stable. This was a big point, he added.
Udo said he expected a decision on the Purulia project by June. “We want to move step by step and build up a basket of projects,” he said, adding the reforms and the opening of the infrastruct ure sector now were irreversible.. “There can be no turning back now.”
India, Udo said, had a hydel potential of 85,000 mw, of which 60,000 mw still remained to be tapped. This, working on a cost of Rs 5 crore per megawatt, meant investments of Rs 300,000 crore over 20 to 30 years, he said.
Udo said Skanska was also keen on getting into build-own-transfer projects with equity participation and added this mode for hydel projects wasn't common worldwide.
Dwelling on Skanska's global operations, he said 62 per cent of the construction major's total turnover came from its international business, while the rest came from its Swedish operations. The company operates in 80 countries, with major presence in Europe and North America.
business-standard.com
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