The Daily Brief India’s Infra projects were Broken—Until Now
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May 28, 2025 Discover how India's infrastructure is undergoing a transformation with insightful policy shifts aimed at boosting economic growth. The discussion dives into the complexities and challenges of navigating various project models, especially the EPC model. Learn about the competitive landscape and financing hurdles companies face. Plus, get the latest scoop on Bajaj's strategic moves in the automotive world. This deep dive reveals how these developments are reshaping India's economic future.
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EPC Model's Risk Shift
- The EPC model delegates full responsibility to private contractors for infrastructure projects, fixing costs and timelines.
- This shifts risk of delays and cost overruns entirely to contractors, making project delivery more accountable.
Complexity of EPC Execution
- Managing EPC projects is complex, requiring expertise in engineering, procurement, and construction.
- Contractors face cash flow issues as expenses occur before payments, along with risks like land acquisition and regulatory delays.
New EPC Bidding Rules
- EPC bidding is fiercely competitive, causing companies to quote razor-thin prices risking project failure.
- New government rules increasing performance securities for low bids aim to ensure only serious bidders participate.