Industry Leader Himanshu Agarwal On Accelerating Sustainable Infrastructure Development, Unlocking NE's Potential

Guwahati: Northeast India's infrastructure landscape is on the brink of transformative change, with major opportunities and bottlenecks being explored at the 'North East Region Infrastructure Conclave' held in Guwahati on November 21, 2024. 

Pankhi Sarma of Business North East (BNE) recently spoke to leading industry leaders, including Himanshu Agarwal, Co-Chairperson of the Ports, Roadways, Waterways, and Shipping Committee at PHD Chamber of Commerce India (PHDCCI), who shared crucial insights into Northeast’s infrastructure prospects and hurdles. As the Chief Operating Officer of Zydex Industries, Himanshu Agarwal highlighted the need for integrated, sustainable solutions to address physical and social infrastructure challenges in the Northeastern region.

 
Himanshu Agarwal, Co-Chairperson of the Ports, Roadways, Waterways, and Shipping Committee,
PHDCCI (BNE image)

With a GDP of $100 billion and a population of 60 million, NE faces unique opportunities, such as the untapped potential of the tourism sector, which could generate significant economic growth. Himanshu Agarwal emphasized that if the region could attract one tourist per resident annually, generating $750 million in revenue, it would substantially impact local economies. However, challenges like high logistics costs and inadequate last-mile delivery of services remain. 

Here are excerpts from the Q&A interview:

BNE: As the Co-Chairperson of the Ports, Roadways, Waterways, and Shipping Committee at PHDCCI, can you share the main takeaways from the NER Infrastructure Conclave held in Guwahati? What opportunities and challenges were discussed during the day?

Himanshu Agarwal: Thank you for having me. Along with my role at PHDCCI, I also serve as the Chief Operating Officer of Zydex Industries. At Zydex, we focus on technology solutions to enhance the sustainability of roads, buildings, and other infrastructure assets. The theme of the conclave revolved around accelerating infrastructure development in the Northeast. We explored physical and social infrastructure while considering how the Ministry of DoNER’s initiatives can be catalyzed to ensure benefits reach the region's last-mile populations. The key takeaways from the conference are:

1. Stakeholder Voice: Understanding the challenges stakeholders face in infrastructure development and brainstorming practical solutions.
   
   
2.  Regional Potential: The Northeast region has a GDP of $100 billion with a population of 60 million, of which Assam contributes 60%. In tourism, the global benchmark of one tourist per resident suggests we could aim for 60 million annual tourists. Assuming a per-tourist expenditure of Rs. 1,000, Rs. 60 billion (around $750 million) could be generated, substantially boosting the local economy.
   
   
3. Logistics Cost Mitigation: Reducing logistics costs will lead to increased wages and disposable income for the local population, ultimately improving the standard of living.
   
   
4. Focus Areas: Emphasis on last-mile education and healthcare access. This requires a strategic think tank based in the Northeast to oversee interventions, marketing arms like the Coffee or Spices Boards for product promotion, and missions like the Millet Mission to enhance production and marketing efforts.

One exciting idea was creating a Millet Federation of India, inspired by Gujarat’s Amul model, to help market millet products domestically and internationally. Similarly, initiatives like a Bamboo Mission to manufacture affordable, large-scale products like water bottles were proposed to boost local industries. These ideas aim to bring scale, lower costs, and generate widespread employment.

BNE: Tourism has been a growing sector in the Northeast, especially post-COVID. What are your thoughts on further enhancing tourism infrastructure and marketing this region’s potential to investors and travellers?

Himanshu Agarwal: To attract more travellers and investors, we must create a comprehensive infrastructure to provide a seamless experience for tourists. Here's how we can do it:

1.    Enhanced Tourist Experiences: Like Copenhagen or Oslo, we should develop structured itineraries offering 2–5-day experiential packages showcasing the region’s unique attractions.

2.    Safety Measures: Prioritizing the safety of tourists is essential, as many visitors to unfamiliar lands are concerned about security.

3.    Accommodation for All Budgets: We must cater to travellers across various budgets, ensuring accessibility for all.

4.    Airport Capacity Expansion: Given the terrain of the Northeast, air travel is the most feasible mode of transportation. Scaling airport capacities by 5–10 times will directly contribute to increased tourist inflows.

BNE: Green building initiatives were discussed during the conclave. How can the Northeast leverage its natural resources like bamboo and implement sustainable building practices effectively?

Himanshu Agarwal: Green building practices in the Northeast are promising but need scaling and optimization. Key considerations include:

1. Seismic Zone Considerations: As the region lies in Seismic Zone 5, building designs should prioritize lightweight materials, durability, and evacuation capabilities to mitigate risks.
2. Stakeholder Involvement: Collaboration between academic institutions like IITs, industry experts, and consultants is vital to implement cost-effective, long-lasting solutions.
3. Material Innovation: Utilizing local resources such as bamboo and hydrophobic technologies can contribute to sustainable development.

BNE: Zydex Industries, under your leadership, has been working on infrastructure sustainability. Could you elaborate on your projects in the Northeast and plans for the future?

Himanshu Agarwal: At Zydex, we focus on enhancing infrastructure longevity. One of the significant challenges in the Northeast is road damage due to water, particularly during monsoons. Our technology addresses this by converting materials from hydrophilic (water-sensitive) to hydrophobic, reducing the dependency on aggregates and enabling sustainable construction.

For example, in Tripura, where aggregates are scarce, we constructed roads using only 30–40% of the usual aggregate requirement. A notable project is the Kumara Ghat Highway, completed three years ago under National Highways Infrastructure Development Corporation Limited (NHIDCL). It has withstood three monsoons without a single pothole, demonstrating the durability of our approach. Looking ahead, we plan to expand our work in rural roads under PMGSY and collaborate on sustainable infrastructure solutions across the region.

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BNE: What is your vision for the holistic development of the Northeast?
Himanshu Agarwal: The holistic development of the Northeast requires strategic and sustainable planning across all sectors. This includes creating seismic-resilient infrastructure, enhancing connectivity, and fostering local industries.

For example, bamboo, abundant in the region, could manufacture cost-effective products at scale. Similarly, agro-based industries like millet processing can be organized under cooperative models to unlock their full potential.

Collaboration is key. We need active participation from academia, industry, and government to innovate and implement solutions. As an organization, Zydex is committed to supporting such initiatives to ensure the Northeast reaches its full potential as an economic and cultural powerhouse.