In this exchange we have Shashank Agarwal, Managing Director, Salasar Techno Engineering Ltd discussing Salasar’s activities in two key areas – power T&D and railway electrification.
Let us start by understanding the various power T&D-related products manufactured by Salasar.
We manufacture transmission line towers, transmission monopoles and structures related to power substations, rural electrification, railway overhead electrification, traction substations, etc.
What inspired you to turn into an EPC company for power projects?
Salasar Techno Engineering Ltd was established as a result of a patriotic ambition to contribute towards the growth of India’s dynamic infrastructure space. The manufacturers catering to the industry rarely provide multiple solutions under one roof. Salasar sought to fill this gap by aspiring to become a one-stop shop for India’s infrastructure giants by carrying out engineering, designing, procurement, fabrication, galvanization, and EPC under the same roof.
As a manufacturer, what advantage do you have (over your competitors) whilst executing EPC contracts?
Being a manufacturer, providing the supply for our own EPC projects demands gives us the advantage of getting accurate and the best pricing when bidding for EPC tenders, surety of on-time delivery, flexibility in making last minute changes when needed, and most of all, ensuring that the quality is maintained.
When it comes to power T&D, what are the various EPC services that you offer?
We undertake the following:
- Construction of single/double/multi circuit transmission lines ranging from 66kV to 765kV, both on lattice towers and monopoles
- Construction of substation structures ranging from 66kV to 765kV, both AIS and GIS.
- Construction of 11kV and 33kVdistribution lines, distribution substations, feeder separation
- Metering work in rural areas under rural electrification projects
Tell us in some detail about your railway electrification-related activities – the products manufactured and the EPC services undertaken?
Railway electrification products manufactured at Salasar are OHE portals; special fabricated masts; DFCCIL structures; B-series masts; bridge masts; and small steel parts.
The EPC services undertaken by Salasar in the space of railway electrification involves design, supply, installation, testing and commissioning of 25kV single-phase AC overhead electrification (OHE) and traction substation (TSS).
We understand that CORE does not have adequate suppliers for certain products used in railway electrification? What is your view?
The government has planned to achieve 100 per cent electrification of the broad gauge network of Indian Railways. How do you therefore see business opportunities?
The Indian Government’s plan to achieve 100 per cent electrification of the broad gauge network puts us in a very good position as we are already involved in the electrification of BG network of the Indian Railway.
Moreover, the government’s deadline to achieve this goal is 2023 which gives us the opportunity of getting projects at good prices even in a competitive market. So, we are definitely looking at participating for future tenders that come up in that area and consider it to be a serious business opportunity that can help shore up our top and bottom line.
What are the typical challenges that EPC contractors face whilst executing rural electrification works? Given that rural electrification is an important constituent of India’s “Power for All” vision, what are your suggestions to improve the efficiency and pace of rural electrification contracts?
Typically, the challenges faced by rural electrification contractors can be categorized in two parts—those related to clients and to local bodies.
Major challenges related to clients are:
- Lack of personnel in the government department concerned is a major challenge faced by almost all EPC contractors across the country. This results in delay in approvals, clearance and other day-to-day matters. This delays completion of the project.
- Lack of pre-tendering survey details from the client results in wrong estimation and budget approval for the government department. This results in lack of funds in the particular scheme, thereby delaying payments to contractors.
- Issues of corruption in government departments can be a major issue, resulting in delayed work and shrinking of margins for contractors.
Challenges from local bodies include:
- The issue of right-of-way by land owners is a major impediment faced by T&D contractors. This is generally because of high value of land and old system of paying against the land usage by the department
- Local political pressure which results in changing the scope of work at the eleventh hour
- Delay in approvals of way clearances by several local bodies like Gram Panchayat, Municipal Committees, Patwari etc.
When it comes to power T&D hardware, how well is India placed with the “AtmaNirbhar Bharat” philosophy? Are there some critical T&D hardware items that need to be imported?
India is placed very well according to the “AtmaNirbhar Bharat” philosophy when it comes to T&D hardware. There is no power T&D hardware item that we need to import as everything is available locally.
Please discuss your future plans with respect to your power T&D hardware and your EPC service businesses.
As on date, we are manufacturing structures for power T&D business and not manufacturing any hardware related to T&D as such. We are however already providing EPC services for T&D projects and we have done good business in this segment and have planned to bid for more projects in future.
Expansion of manufacturing capacity plans with regards to new verticals is already under way as we are about to start production in our new manufacturing plant dedicated to heavy structural steel. This plant is located at Hapur in Uttar Pradesh.
This new vertical will be doing heavy structural steel fabrication for bridges, power plants, process plants, high-rise buildings, pre-engineered buildings (PEB), warehouses, airport hangars, metro stations, etc. We plan on expanding into the EPC sector of this manufacturing vertical as well.
