gayatri projects limited - Edelweiss

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONSIndustry OverviewConstruction industry is an integral part of a country’s infrastructure and industrial development. Construction becomes thebasic input for socio-economic development. Besides, the construction industry generates substantial employment andprovides a growth to other sectors through backward and forward linkages. With the present emphasis on creating physicalinfrastructure, massive investment is planned during the Tenth Plan. Key reforms have been initiated in several sectors withthe objective of augmenting country’s infrastructure. The construction industry has played a crucial role in this regard.The tenth plan envisages balanced development of the total road network in the country. This includes phased removal ofdeficiencies in the existing network, widening, improvement, strengthening, rehabilitation and reconstruction of weak /dilapidated bridges, adequate maintenance of roads, road safety measures and providing wayside amenities to cater to thegrowing demands for road services. Apart from this, the Plan also lays emphasis on improving the riding quality of existingNational Highways. Yet another priority objective is improvement in rural connectivity with all-weather roads and developmentof roads in the North-Eastern region. Inter-modal issues like road connectivity with airports, railways, ports, etc. is anotherissue that is highlighted.The government is also undertaking the North-South and East-West Corridor projects. These projects comprise about 7,000kms of highways connecting Srinagar (North) with Kanyakumari (South) and Silchar (East) with Porbandar (West).(Source : http//meaindia.nic.in – Website of Minsitry of External Affairs)The four-laning of 10,000 km of National Highways by March 2010 under NHDP III would be done entirely through the BOTroute. A Special Accelerated Road Development Programme for the North Eastern Region (also called NHDP-NE) is envisagedfor improving connectivity in the north-eastern sta tes. This would include a road length of 7639 km comprising 3251 km ofNH and 4388 km of other roads. The network is expected to act as catalyst for the development of the region.(Source : http//planningcommission.nic.in )The aggregate capacity in major ports as on March 31, 2004 was 389.50 MT per annum. During 2004-05, the aggregatecapacity increased by 8 MTPA to 397.50 MTPA. The aggregate capacity is expected to go upto 405.50 MTPA by March,2006. By the end of Tenth Plan Period, the capacity of major ports is projected to be 470 MT per annum. The overall investmentrequired in the ports sector in the Tenth Plan is estimated to be Rs. 80,000 crores of which nearly 70% is proposed to beattracted from the private sector. Initially, 51% FDI was allowed in the Sector. In 1999, FDI limit was increased to 100%.The investment requirement in the irrigation sector includes substantial investments in water infrastructure such as multipurposedams, barrages, irrigation canals, check dams, rain water harvesting structures, tubewells and rural electrification. To harnessriver waters and to irrigate the parched lands the State governments have since agreed for river linking projects.Several State Governments have announced various irrigation projects like dams, canals, reservoirs, etc. The State Governmentof Andhra Pradesh has announced a total of Rs.50000.00 crores irrigation projects, which will be executed in the span of 7years in three phases.Overview of our CompanyOur Company has executed several construction projects during the last 16 years. In the course of our business, we haveconstructed about 644.00 Km of the Highways and 1113.00 Km of Irrigation Canals. We have executed 21 irrigation projectsamounting to Rs. 58,399 lakhs. We have completed irrigation projects such as Construction of five packages of NarmadaMain Canal comprising of the 50.60 Km, Upper Krishna Project comprising of 44.00 Km, Sriram Sagar Project comprising of954.00 Km and KC Canal comprising of 64.00 Km. The total cost of these four Narmada Canal projects amounting to Rs.15,990 lakhs. We have also executed Indi Branch Canal of Upper Krishna Project amounting to Rs. 13084 lakhs. We haveexecuted 7 projects for construction of dams and reservoir amounting to Rs. 7533 lakhs, in which major ones includeconstruction of Kaniti Balancing Reservoir for Vishakhapatnam Steel Plant, construction of raw water pond for Jindal VijaynagarSteel Ltd., construction & raising of ash pond dykes to ancillary works for NALCO Ltd. Etc. We have executed 9 highway andrunway projects, 8 site leveling projects and 3 industrial projects amounting to Rs. 57562 lakhs, Rs. 9433 lakhs and Rs.3478 lakhs respectively.137