Pm january 16, 2015 by ERIL Publications

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Vol.14 No.18

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January 16-31, 2015 `100

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NEWS

Projectmonitor, Mumbai, January 16-31, 2015

ANTHONY AZAVEDO

ODC movement likely to

PICK UP SPEED DEBDEEP CHAKRABORTY

n a bid to promote seamless movement of heavy transport across the country, the Indian Ministry of Road Trans-

port and Highways and Shipping recently took a landmark initiative by launching a web portal (https://morth-owc.nic.in) to grant online approvals for transportation of over dimen-

sional and over weight cargo. The initiative, besides saving time and avoiding transit delays in movement of heavy equipment by modular hydraulic axle trailers, is expected to make the

process of granting approvals for transportation of over dimensional and over weight cargo more transparent. Over-dimensional cargo is defined in terms of weight and

dimension. In dimension terms, anything above 40 ft length with 8.25 ft height and 8.25 ft width is considered over-dimensional cargo. With regard to weight, government regulations permit 11 tonnes per axle. Anything above 35 tonnes is taken as overdimensional cargo. The MoRTH has framed guidelines for the safe movement of over dimensional and over weight cargo on national highways. Under these guidelines, trailers are required to strictly observe load restrictions on roads and secure prior permission from concerned road authorities in states and from NHAI and BRO prior to transporting over dimensional and over weight cargo. The online facility of the MoRTH is expected to considerably reduce the transit time of vehicles transporting over dimensional and over weight cargo. Scan QR code to read the full report at www.projectsmonitor.com

Kolte-Patil’s new Mumbai projects

Sujay Kalele, CEO, KPDL olte-Patil Developers Ltd, a leading residential real estate developer from Pune, has strengthened its Mumbai portfolio by adding three redevelopment projects in the western suburbs. These projects, located in Khar West, Malad West and Goregaon West, take the company’s tally in Mumbai to six with a saleable area (KPDL share) of about 0.6 million sq. ft. Sujay Kalele, CEO, Kolte-Patil Developers Ltd, said, "We are delighted to announce these three additions to our Mumbai portfolio taking our total tally to six projects. We will continue to expand in Mumbai through suitable redevelopment projects.” The company has developed and constructed 48 projects including 35 residential complexes, nine commercial complexes, and four IT parks covering a saleable area (KPDL share) of over 10 million sq. ft across Pune and Bengaluru.

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NEWS

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`25 trillion pledged at Vibrant Gujarat G DEBDEEP CHAKRABORTY

WWW.VIBRANTGUJARAT.COM

ujarat has once again proved to be the preferred destination for investors in the country. The seventh edition of the Vibrant Gujarat Summit, which was held at Mahatma Mandir, a state-ofthe-art convention and exhibition venue located in the state capital Gandhinagar, from January 11-13, 2015, witnessed the signing of 21,000 MoUs for potential investment of `25 trillion. The three-day event, with participation from 1,250 companies and 110 countries, was attended by 25,000 delegates. Addressing the valedictory session of the Summit on January 12, 2015, Chief Minister Anandiben Patel said the state government would initiate suitable measures for smooth and robust implementation of the MoUs signed.

In addition to setting up a district-level digital cell for ensuring hassle free implementation of the investment intentions, a special committee will be constituted to handle investment proposals requiring clearances

NEW PROJECTS

CPRI to invest `996 cr on new test facilities PM NEWS BUREAU

he Government of India has accorded investment approval of `996 crore for capital projects of Central Power Research Institute in order to serve the growing needs of research and development in the power sector including development of advanced testing facilities. This project will support augmentation of high power short circuit facilities as well as establishment of new test facilities in existing laboratories of CPRI, located at Bengaluru (Karnataka), Hyderabad, Kolkata (West Bengal), Guwahati (Assam), Noida (Uttar Pradesh) and Nagpur (Maharashtra). In addition, a new laboratory will also be established at Nashik in Maharashtra. The main facilities proposed to be set up are short circuit test facilities, transmission tower test facility, facilities for switchgear testing and development, testing of transformer oil, relocation and augmentation of thermal

research centre at Nagpur, establishment of a new unit at Nashik and setting up a phasor measurement unit system and smart grid research laboratory. On commissioning of the above facilities, CPRI will be able to test transformers and switchgears of higher rating equipment used for 400kV and above. The smart grid research laboratory will provide necessary support for developing smart grid devices needed for the Indian Smart Grid Mission and Smart City projects. The phasor measurement unit system will support the efforts towards grid security. CPRI, headquartered in Bengaluru, is an autonomous society under the Ministry of Power, Government of India. It was set up as a national-level laboratory to undertake applied research in electrical power engineering, besides functioning as an independent test and certification authority for electrical equipment and components to ensure reliability in power systems. WWW.CPRI.IN

800kV breaker in RIV test bay at CPRI.

from the Centre. A committee under the chairmanship of the chief minister will monitor progress with regard to implementation of the MoUs. A committee under the chief secretary with the state industries depart-

ment will be set up to address any hurdle in the way of execution of the MoUs. The Summit also led to signing of 1,225 strategic partnership agreements. A tripartite agreement was signed between the state government, Centre and World Bank for working together in the Swachhata Abhiyaan and development of smart cities. The state government and the UN signed a strategic partnership agreement in the field of sustainable energy. The chief minister said the agreements signed during the Summit in the areas of corporate social responsibility, defence manufacturing, skill development and education would significantly contribute to Gujarat’s growth story. She added that the event would give impetus to the ‘Make in India’ drive as well as the ‘Skill India’ and ‘Clean India’ initiatives.

The Vibrant Gujarat Summit is a biennial event organised by the Gujarat government since 2003 primarily with the objective of showcasing the state as an attractive investment destination. A total of 17,719 MoUs with investment commitments of `10 lakh crore and 2,670 strategic partnership agreements were signed during the previous edition held in January 2013.

NHAI invites bids for Islampur Bypass HAI has invited tenders for development of the four-lane Islampur Bypass in West Bengal. The scope envisages development the 10.31-km bypass from km 0.000 to km 10.310 on NH-31 on EPC mode, under NHDP Phase-II. The estimated `238.47 crore project is scheduled to be completed in two years.

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NEWS

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Adani Group signs MoU with Australia’s Woodside Energy PM NEWS BUREAU

dani Enterprises Ltd, the flagship company of Adani Group of India, a global infrastructure conglomerate, has signed an MoU with Australian energy major Woodside Energy to explore opportunities across a broad spectrum in the oil and gas sector in India, as part of the Vibrant Gujarat initiative, a company release said. The MoU, was signed by Gautam Adani, Chairman, Adani Group, and Peter Coleman, Chief Executive Officer, Woodside Energy Ltd. The two companies will jointly explore opportunities in sourcing of LNG, supply and purchase arrangements for India, LNG marketing, investment in upstream activities such as oil and gas exploration, production and liquefaction plants, knowledge sharing,

L to R: Gautam Adani, Chairman, Adani Group, Andrew Robb, Australia's Minister for Trade and Investment, and Peter Coleman, CEO, Woodside. training, joint technology studies, technology workshops, and connecting local R&D institutions and universities with each other. “This cooperation arrangement is a landmark and first of its kind between two large

organisations of India and Australia sharing common aspirations and vision. This MoU will go a long way in bringing new perspective to addressing the energy issues, enhancing energy trade and further strengthen warm rela-

tionships shared by the two countries,” Adani said. Coleman noted, “We are delighted to have signed this agreement with Adani to further cooperation between our companies and countries. While the breadth of commercial interest between Australia and India is proven, it is up to industry to ensure that the true potential of this relationship is realised.” Woodside Energy is Australia's largest independent oil and gas company. It has an extensive portfolio of oil, gas and LNG facilities including the landmark Australian LNG project, the North West Shelf, one of the world's premier liquefied natural gas facilities. It also owns 90 per cent of the Pluto LNG Plant. Woodside said it was committed to expanding its LNG portfolio through premium developments both in Australia and elsewhere.

RBI eases norms for project financing n December 2014, the Reserve Bank of India extended its flexible refinancing and repayment option for long-term infrastructure projects to existing ones, where the total exposure of lenders is more than `500 crore. The option will also be available for projects that have already been classified as bad debt. Until now, flexible structuring of project loans, with the option of periodic refinancing, was available only to new loans i.e. for projects sanctioned after July 15, 2014. The Lok Sabha, in the winter session, passed a bill providing for the reauctioning of coal blocks. The reauction became necessary following the deallocation of 204 coal blocks by the Supreme Court in September 2014. The bill seeks to replace the Coal Mines (Special Provisions) Ordinance, 2014. Maharashtra government has decided to increase FSI for industry and other activities and has also cut down the number of approvals required to proceed with construction projects.

OPINION

Land Acquisition Act will kick-start stalled projects PM NEWS BUREAU

he decision to amend the Land Acquisition Act to make it less difficult for implementation indicated the government’s willingness to undertake bold reforms for development, Jyotsna Suri, President, Federation of Indian Chambers of Commerce and Industry, said. “Fast tracking procedure for defence, rural infrastructure, affordable housing, industrial corridors and PPP projects is laudable as it will give a kick-start to a large number of stalled projects, thus reinvigorating investment and growth cycle,” she pointed out. Suri continued, “FICCI has repeatedly advocated that the Land Acquisition Law should be made practical and equitable, and must provide certainty and fairness to all stakeholders. We do hope that easing of procedural difficulties will be extended to all projects.” “We continue to urge the government to keep private purchase out of the ambit of the Act. The process of price discovery is natural in case of transactions involving willing seller and willing buyer and there is no need for additional compensation. Such transactions should thus not be subjected to additional R&R stipulations,” Suri added. Earlier, Assocham said that manufacturing in the country could pick up only when the

Jyotsna Suri, President, FICCI Land Acquisition Act was amended to make it easy for the industry to acquire land from farmers who deserved a good deal. "But the law must have provisions which are practical to follow. Under the present dispensation, it is next to impossible to acquire land for industrial projects, more so in the private sector," Assocham President Sunil Kanoria said. Last month, the Union Cabinet approved certain amendments in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Act came into effect from January 1, 2014, but difficulties have been reported in its implementation. The amendments are expected to strengthen its provisions and protect the interests of the affected families and ease procedural difficulties in acquisition of land for important projects.

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bC India holds a steady course PM NEWS BUREAU

he third edition of the Bauma Conexpo Show, or bC India, which took place from December 15 to 18, 2014, at the India Expo Centre in Greater Noida, Uttar Pradesh, has held a steady course and consolidated its position on the market, organisers Messe München International and Association of Equipment Manufacturers said. A total of 26,000 visitors and 635 exhibitors from 25 countries attended the international trade fair for construction machinery, building material and mining machines, and construction vehicles. Igor Palka, Chief Executive Officer, bC Expo India, was satisfied. He said, “Our exhibitors have so much trust in our brand and are continuing to support bC India in what is still a difficult economic environment. The event is now a firm date in the calendar for many companies and it has established itself. We have had a lot of positive feedback and, of course, we are delighted about that.” Sorab Agarwal, Executive Director, ACE, said, “We had visitors from all over India but also international ones. We only had genuine customers; there was no wasting time, they were here for business.” Tanmay Majumdar, Associate Vice President, Gmmco/Caterpillar, added, “The quality of visitors was very high, including good buyers, contractors and the like. bC India is a good opportunity to meet new customers.” bC India enjoyed a high status as a presentation platform for companies. As Sandip Choudhuri, General Manager and Head - Kansbahal Works, Larsen & Toubro Ltd, confirmed: “We had many customers and very serious enquiries. The visitors were interested in our products. We launched a new product here and in that respect it was very important for us to be here to use bC India as a platform.” Ramesh Palagiri, Managing Director and CEO of Wirtgen India, commented, “bC India is very important for the Wirtgen Group. Here in India, bC India is the most professional trade fair. We’ll participate in the next bC India, too.” bC India also provided opportunities for signing up new business, as Rajesh Shrivastava, General Manager – Marketing & Dealer Development, Terex India, confirmed: “We had customers coming and buying equipment right off the booth. We are very excited about the profile of the customers here at bC India.”

S. Baskar Babu, General Manager, Schwing Stetter India, added, “bC India came out very well. The quality and the delivery of bC India is unbeatable. We will definitely participate in every edition of bC India.”

ANTHONY AZAVEDO

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‘The CE market will start growing again in six to eight months’ — B. Sridhar, Head - SDLG Business, Volvo India Pvt. Ltd

Founded in 1972, Shandong Lingong Construction Machinery Co. Ltd (SDLG) is a Chinese enterprise in construction machinery and is ranked among the top five wheel loader manufacturers worldwide. In 2006, SDLG collaborated with Volvo to learn management experience and technical support in the CE industry. B. Sridhar discusses the current scenario in the Indian construction equipment market with Sandeep Menezes.

Six months after a new government in New Delhi, how do you rate the scenario in the construction equipment industry? We can’t say that the market has changed completely. But there is positive sentiment because of the many new initiatives the government is considering. Some of the projects, in the road sector, for instance, have already commenced in parts of the country. But whatever decisions are taken at the ministerial level has to percolate into the market. This has not happened yet. It will take time because major investment and land acquisition must also happen. We want the government to remain focused and action should happen on the ground. GST delay is a big issue for all manufacturers. Today, manufacturers are suffering because of the various local laws and rules. With the clear majority that this government enjoys, we feel that GST will be implemented within the next one or two years.

How long will it be before the construction equipment market thrives again? Our feeling is that it will take another six to eight months for the construction equipment

We want the government to remain focused and action should happen on the ground. GST delay is a big issue for all manufacturers. With the clear majority that this government enjoys, we feel that GST will be implemented within the next one or two years. cerned, there is a worry because it is high. But it also depends on growth and machinery requirements. We feel that going ahead the rates will come down. market to start growing again. If most stalled projects are kickstarted by middle of 2015, it may take another two years. But, going forward, there is only growth ahead.

What are your thoughts on the government’s ‘Make in India’ campaign?

As of today, we don’t have any plans but, going forward, if there is a need then definitely we would like to do it. In future, if the market grows exponentially, then we have to support that growth; we can’t import everything, we will also have to manufacture here. It all depends on the market growth

Genie dealership for Manlift India PM NEWS BUREAU anlift, the access equipment rental and sales specialist, has signed an agreement with Genie for an official dealership of the Genie brand in India, a news release said. As a dealer, Manlift will be responsible for sales, marketing, training and aftersales support in the Indian market. The dealership was officially launched at Bauma Conexpo India. The signing of the agreement between Manlift and Genie took place at Manlift's stand. David King, Managing Director, Manlift, said: “By awarding the dealership to us, Genie has shown strong confidence in Manlift to lead the development of the access equipment market in India. Our highly motivated team will be able to offer our customers a full range of quality access equipment for a wide variety of applications.”

“We consider India as an important growth market for the Genie product range and we are pleased that a progressive company such as Manlift will be representing our brand,” Daniel Ho, Regional Vice President, Terex AWP Asia, added. Manlift Group was founded in 2006

and currently has operations across the Middle East, Africa and Asia with its head office in Dubai, UAE. Manlift has a substantial rental fleet sourced from the world's leading manufacturers including JLG, Genie and Teupen, and now representing Genie across India.

in future. Even in importing there are constraints because then we have to depend on vessels and also other issues have to be cleared. Therefore, as long as the volumes are less, we will continue to import but if the market grows and volumes pick up, then we will also have to rethink.

What about the shortage of trained equipment operators and technicians? We have our own operator training school in Bengaluru. Whenever we sell machines, we also train the customers’ workers. A few of our dealers get youth from the ITIs and we send our trainers to train them.

Safety during project execution is an unresolved issue across India. If you look at our products, it complies with all safety norms in India, in terms of emissions and safety. We have safety features incorporated in the products because it is a big concern for us. In our motor graders, we are supplying FOPS and ROBS cabins so that even if any accidents happen the operators will not get any injury. Also, these cabins are air-conditioned which leads to extra comfort for the operators.

Over the next two years, how much growth do you foresee for SDLG in India? We expect a year-on-year growth of around 20 per cent for SDLG in India. The main drivers for this market growth will be upcoming infrastructure projects like the proposed bullet train between Mumbai and Ahmedabad. Once all these projects commence then the ancillary segments will be needed to support the execution of these projects. Therefore, going forward, there will definitely be growth.

Interest rates have not softened to the extent expected and most construction equipment is purchased in financing mode. We have financing tie-ups with all the leading NBFCs and banks. Therefore, if the customer profile is good then financing will not be an issue. As far as interest rates are con-

SDLG and Volvo CE both operate in India. How does a customer differentiate between the two brands? We want to bring up both the brands in India. Therefore, we will not dilute any brand since our strategy is of dual brand. We will grow both the brands and continue offering products as per the needs of the market.

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‘Growth will depend on the pace of project execution’ — Neeraj Chhabra, Marketing Head, Tractors India Pvt. Ltd, and Ramesh Tipirneni, Country Manager, Caterpillar India Pvt. Ltd Caterpillar India Pvt. Ltd showcased a number of ‘Make in India’ construction and mining products and technologies at bC India 2014, including through Cat dealers TIPL and Gmmco. Interview by Prashant C. Trikannad

Describe TIPL's experience at the third edition of bC India 2014? Neeraj Chhabra: bC India 2014 for the first time happened in TIPL territory, Northern India, and got a justified reason to do so with major investment being planned in north and eastern parts of India by the new government. We have perceived bC India to be an excellent platform for TIPL for the following reasons: * First time ever in Greater Noida * Major focus areas of investment happening in NCR - real estate, road projects; Rajasthan dedicated freight corridor, state highways, wind energy etc.; Utrakahand - infrastructure rehab funds; Uttar Pradesh expressways, real estate, stone mining belt; J&K - BRO. * Big corporate houses and key account customers are north based. TIPL is dedicatedly providing solutions to all our esteemed customers in Eastern and Northen India. Caterpillar product range was displayed during the expo, keeping in mind TIPL and GMMCO are one-stop solution provider backed by an excellent sales and product support team catering to all segments of customers i.e. infrastructure, mining, retail etc. for new, rental and used equipment. Major achievement was to have highest footfall of all our esteemed customers who appreciated our stall branding and hospitality, which also included the bC India team led by their chairman.

Did your company showcase any new products? Ramesh Tipirneni: Our worldclass machines were on display along with many road construction and utility equipment. Also on display were customer support offerings that Caterpillar and our dealers (TIPL and Gmmco) can deliver. We had showcased our product support solutions, rental and used equipment solutions, Cat financial services, and technology solutions at the show.

How do expos like bC India help Indian earthmoving and construction equipment companies in their business growth?

Ramesh Tipirneni: bC India was another forum that provided an opportunity for Caterpillar, and our dealers Gmmco and TIPL, to strengthen and build

relationships with our customers and understand their needs and expectations. We were able to showcase our offerings and solutions that ensure

our customers complete their projects meeting the quality standards they are measured by, within the time constraints that they face, profitably. Such

avenues for interaction definitely help customers as they target new projects and opportunities.

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There is a bright future for precast technology in India The India market has a lot of potential to become a major global market for precast technology and we are confident that in the coming years every state will have 15-20 precast plants, notes Chander Dutta, Managing Director, Elematic India Pvt. Ltd, the global technology and market leader in precast concrete technology for residential and non-residential buildings.

ear 2015 looks to be a good year in construction. There is a huge demand of residential units at present in India and this will continue. However, this demand cannot be satisfied without using modern construction technology. Precast technology is gradually being adopted by a lot of developers, builders and contractors in India because of obvious advantage in terms of speed, quality and cost of the construction. India is also going through rapid urbanisation and this has created a huge demand for affordable housing segment which cannot be met through conventional construction and hence modernisation of construction industry has to take place. There is also a shortage of skilled manpower and increase in their cost, which leads to most of the developers facing difficulties in finishing their projects on time. Elematic manufactures moulds and machinery, which are used to produce reinforced or unreinforced concrete elements in the factory environment. Precast plants are customised as per the level of automation and production capacity and customer needs. Most of our plants are tailor made.

End-to-end solutions Our company supplies end-toend solutions to precasters from initial consultation, machinery supply, structural design of buildings, and training for production and installation of precast elements. Elematic's technology is very efficient and helps in achieving precast construction advantages in terms of speed, quality and cost. We are getting a huge number of queries on a monthly basis, which shows that awareness is spreading in India and people are interested in implementing the technology. It has not always been so. Five years back there was only one precast technology supplier in India — Elematic. Cost of labour, availability of raw materials and sizes of the projects were manageable with conventional technology and hence developers were not willing to adopt modern precast construction technologies. There was also a lack of knowl-

WWW.BLOG.ELEMATIC.COM

Pile caster for efficient precast concrete pile production. edge base about precast construction and no exposure to technology. Fast forward to 2015, and there is a huge shortage of skilled labour, high input costs, strict project delivery time which has forced the developers to think for alternate technologies and building methods such as precast technology. As a result, there are a number of precast players in the market. Most of the states in India are approving precast technology to

be implemented in affordable housing segment which will further give boost to precast technology. Today, there are around 30 precast plants setups so far in India and half of them are set up by Elematic.

India is pro-technology People in India have always been pro-technology, and fast adopters to any technology introduced in any sector. Construction is no exception. Big developers and contractors

like Amrapali, Purvankara, Brigade and BG Shirke are constructing millions of sqft in a year by precast technology and a lot of others are showing interest and taking steps to implement precast technology. They evaluate the advantage and continue to use it. If we talk about construction sector, there has been a lot of technology use in cast in-situ construction; for e.g. use of ready mix concrete, automation in cutting and bending steel, usage of fast form work

‘Growth will depend on pace of project execution’ urbanisation should be treated as an opportunity. A growing global and Asia-Pacific population needs more energy, water, roads, schools, housing, power systems, airports, dams. These are all needs that our customers will help meet for decades to come. India represents a tremendous opportunity for Caterpillar considering the needs for infrastructure, energy, transportation, mining and defence.

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How did year 2014 end for the construction equipment industry and what is your outlook for 2015? Ramesh Tipirneni: Asia-Pacific is a critical area of the world where Caterpillar must compete and win. We have been investing in our operations to support the ever-increasing customer base here. India is already one of the primary sourcing hubs for us. About 80-90 per cent of the off-highway trucks that are manufactured in India are exported. Prime Minister Narendra Modi has pointed out that

What are some of the key challenges facing the construction equipment sector? Ramesh Tipirneni: The general mood in the construction equipment segment is that there is a fleet of idle machines which are not yet deployed and this is deferring new purchases. We expect this to change due to the movement from the government in accelerating investment in infrastructure projects. The growth of the Indian construction equipment industry will also depend on streamlining different issues, such as government clearances, administrative and procedural reforms, and generally on the pace of project executions.

etc. Almost every developer/contractor has implemented some form of modern technology in their projects. The process of standardisation is already happening and various bodies are working together to develop Precast Handbook and Elematic is also playing a key role in this. Gradually standardisation of precast construction will happen as number of precast plants and projects keep increasing. Precast technology has been used in Finland successfully for decades. In 1960s, there was rapid urbanisation in the country and huge numbers of people were moving to cities. Thus, lots of houses were needed to be constructed quickly. In addition, due to climatic conditions in Finland, the building skeleton had to be ready within six-eight months and these conditions pushed the Finns to develop the modern precast technology where all the elements were produced in the factory environment and could be installed in a short time at site. Today, a small country like Finland with a population of just over five million people has about 100 precast plants. We are confident that India we will not take long to reach and surpass that number. However, for the technology to truly take off, the Indian government has to provide favourable tax benefits to developers to implement modern technologies. In addition, there is currently high custom duty for importing technology from foreign countries. Custom duty can be anywhere from 25-30 per cent which is a burden on the initial capex of the developers. Additionally, when precast element goes to a site from stabilised precast factory, as it is the cost of element goes up by around 20 per cent because of existing taxes and duties. Despite the custom duties, the future of precast technology looks bright on India. We are confident that in the coming years every state will have 15-20 precast plants. There is definitely a lot potential in India market to become a major global market for precast technology. A few good examples will set the pace right and there won’t be any looking back then.

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‘The market may grow to 5,000 trucks in future’ — Krister Thulin, Presales & Marketing Director, Scania India

Last year saw the Indian trucking market going through a tough phase of degrowth. How is the market currently? Yes, the market has been low. But we foresee the mining industry especially picking up which will continue in the months ahead. We feel that next year the mining market may grow up to 10 times.

What will be the main growth drivers for the trucking industry in the years ahead? I feel that once GST is in place then it will open up business between the various states. Currently, one needs to stand at borders between the various states. Once this opens up then we will see a lot of flow in the market.

Few other premium global trucking brands have launched affordable massmarket models in India to increase market penetration. Does Scania intend to follow the same path? No, because we don’t need that segment. We are already priced lower per kilometre with Scania as compared to other competitors. Therefore, we don’t need to go into the value market.

But the Indian customer still looks at the initial acquisition price rather than at the lifecycle cost of trucks. Yes, they most look at only the initial acquisition price but we have a few customers who understand lifecycle cost of trucks. In segments wherein the trucks are used a lot of the time, our uptime is best in the market which is itself value for money.

What is the current market size for premium trucks in India? Today, the market size is roughly about 1,000 trucks per year, but this should grow to roughly about 5,000 trucks in the coming years.

There is an increasing trend towards localisation of products. Can you tell us about Scania’s plans to localise in India? We already localise around 25 per cent of the truck and 80 per

We don't localise if we don't find the same Scania quality what we have worldwide because the brand can't be ruined. It's a premium brand so it must have the same quality. In coming five years, we intend to increase localisation of our truck to 60 per cent. cent with the bus. We always try to localise but also have to keep in mind global standards.

Isn’t 25 per cent localisation of truck meager? Yes, but we don’t localise if we don’t find the same Scania quality what we have worldwide because the brand can’t be ruined. It’s a premium brand so it must have the same quality

even if one buys it in India, Sweden or South America. In the coming five years, we intend to increase localisation of our truck from 25 per cent to 60 per cent.

Most global OEMs launch stripped-down versions of their products devoid of many features to compete on pricing with local players in India. If we can take away some options then it is always there but we will never compromise on quality. Like, if the customer may not want electric windows or fancy seats, then it can be looked into.

Can you throw light on Scania’s future plans? We will introduce more models of Scania Metrolinks. Also, seater buses running on biofuel will be introduced this year. Our current factories can produce all those types of vehicles but if we go above 2,500 trucks and 1,000 buses then we need to expand. Within next two to five years as volumes increase, we will go in for a brownfield expansion at our current manufacturing plant.

Scania has been represented in India since 2007. However, in 2011, Scania established Scania Commercial Vehicles India Pvt. Ltd to strengthen its presence in additional segments of the Indian commercial vehicle market. In October 2013, Scania inaugurated its `300-crore industrial truck production facility at Narasapura, Bengaluru. Krister Thulin spoke to Sandeep Menezes on what will drive the Indian truck market in coming years.

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‘CE sector will see a growth of around 15% in two years’ — Pradeep Agarwal, CEO & CFO, Mtandt Rentals Ltd

How is the scenario in the construction equipment industry since a new government took over the nation's reins? Actually, I feel it's too early to measure the performance of the new government. The sentiments are positive, the vibrations and feel is totally positive. I feel that after two years the construction equipment market will have a good future.

Mtandt Group, a pioneer in the safety industry, supplies aerial working equipment and safety systems to leading construction companies, enabling workers to work safely at heights. Founded in 1974, the group is one of the largest aerial work platform rental companies in India. Pradeep Agarwal, who was appointed Mtandt's CEO effective October 1, 2014, spoke to Sandeep Menezes on the growth of the construction equipment sector.

PHOTOS: ANTHONY AZAVEDO

What do you expect from the new government in terms of support for the construction equipment industry? First of all, the government needs to bring in GST. I feel that GST has to be implemented and interest rate issue needs to be looked into. The issue of legal movement of equipment needs to be sorted out. They are looking into labour issues, which is a good sign.

What kind of growth do you expect from the construction equipment industry in next two years? We feel that the construction equipment sector will see a growth of around 15 per cent in the next two years. The sentiment is positive and if infra-

Earlier, we were importing machines from Germany but now we also manufacture equipment in India. We also take care of environmental issues while manufacturing our products. Our company strongly believes in the idea of 'Make in India.' We are trying for technology transfers so that more machines can be made in India. We have started a facility for manufacturing smaller machines and three years down the line may also start manufacturing bigger machines in India.

structure growth happens like in China then we should be looking at a good growth rate of around 15 per cent.

What will be the main growth drivers for this sector in the years ahead? There has to be investment and focus on infrastructure development. The nation is way behind

in terms of infrastructure facilities and things need to become better.

India is facing a shortage of trained equipment operators and technicians nationwide. We have our sister concern, The Academy of Safe Work Practices, where we impart training

on working at heights. Every month we train approximately 30 to 40 people. There is no shortage of manpower, but yes, there is shortage of trained manpower; it is everybody's problem.

What are your thoughts on the government's 'Make in India' campaign?

Going forward, what are Mtandt Group's expansion plans? We intend to go in for continuous growth in India. We will develop our capacity for aluminium scaffold within the span of next one year. We are not looking at exports currently since we want to first cater to the Indian market. In the years ahead, our company will continue in its endeavour to bring new technologies and machines to India. We have targeted a revenue growth of 100 per cent within the next three years for MT&T as a company in India.

Demand for road and bridge equipment set to increase PM NEWS BUREAU ndia is in the middle of executing one of the biggest road development programmes undertaken by any country. The two flagship programmes, National Highways Development Programme and Prime Minister's Gram Sadak Yojana, have been under implementation for quite some time now. These programmes address two key areas of road development: while NHDP focuses on the national highway network which covers only 2 per cent of the total road length but carries 40 per cent of road traffic, PMGSY focuses on rural roads which are ensure connectivity to even the remotest villages. This was stated by S.N. Das, Director General (Road Development), and Special Secretary, Ministry of Road Transport and High-

WWW.I-CEMA.IN

GLOBAL EQUIPMENT SALES

Source: Off-Highway Research

ways, Government of India at the Conference on Infrastructure Equipment - Re-scripting the Growth Story held on the sidelines of bC India 2014. It was organised by Indian Construction Equipment Manufacturers Association.

According to Das, the success of NHDP, under which about 20,000 km of national highways were constructed within a span of about 14 years, averaging about 4 km of road per day, was made possible only due to the adoption of mechanised

construction techniques and the influx of modern equipment. "Developing about 15 km of road length per day and the plan to scale up and speed up this development programme to much higher levels of 30 km of road length per day is a

challenge. This means there will be even more emphasis on road and bridge equipment," he said. The infrastructure equipment industry should factor this government initiative

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‘I see a growth of 20-25% over the next two years’ — K. Ilango, Managing Director - Sai Infraaequipments Pvt. Ltd

It is six months since a new government took over the nation’s reins. How do you see the performance of the construction equipment industry? The announcement of new projects and their implementation will take some time. After the implementation of new projects, it will take a minimum one more year for the finance flow to improve. Currently, the finance flow is very tight across the market; in fact, we are not receiving payments. Therefore, based on the current market situation we have not planned anything new. Definitely, the market will turn

successful and I am confident about it, but it will take some more time.

Going forward, how do you see the industry evolving? We were expecting industry growth to happen in the first six months but it has not happened; there have only been announcements. In the coming financial year, the currently announced plans may start showing results. But over the next two years, I expect the construction equipment industry to witness a growth of around 20 to 25 per cent. Next year should

WWW.SAIEQUIP.COM

Sai InfraaEquiments Pvt. Ltd, based in Bengaluru, has been engaged in construction equipment hiring for several years. The company deals in RMC batching plants, transit mixers, concrete pumps, tower cranes, mobile and hydra cranes, wheel loaders and passenger hoists. It also holds the largest fleet of tower cranes in the hiring segment. K. Ilango spoke to Sandeep Menezes at the bC India 2014 show.

witness an industry growth of around 8 per cent.

What are the main demand drivers for the growth of the construction equipment industry? The current announcements will definitely be implemented in future which will drive demand across the construction equipment industry. Most of the construction equipment demand will come from the massive infrastructure development required nationwide.

Interest rates have not softened to the extent expected and most construction equipment is purchased on financing mode. These days even if orders come in, financing is not easily available. The main reason for this situation is tight money flow and the market is not good. So, even financers are scrutinising our accounts very deeply. Earlier financiers used to only check our balance sheets and track records. But today, they are checking our money flow,

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ANTHONY AZAVEDO

States Gujarat Odisha Maharashtra Tamil Nadu West Bengal Uttar Pradesh Himachal Pradesh Karnataka Kerala Bihar All India

n December 2014, 610 new projects worth `74,415 crore were announced. Of these, 470 projects worth `44,564 crore were greenfield projects; 111 were plant modernisation projects; and 29 were capacity expansion projects. Further, of the 610 projects, the promoters of 268 projects have not firmed up the costs of their projects. Most of these projects were in the real estate sector. Of the 24 mega projects (project investment of `500 crore or more) announced in December 2014, four were in the manufacturing sector. Neelachal Ispat Nigam Ltd intends to expand its steel capacity from 1.1 million tpa to 2.5 million tpa with an investment of `12,000 crore at Kalinganagar in Jajpur district of Odisha. The project will also include a blast furnace, a 7metre coke oven battery, a 60MW coal-based power unit and a steel melting shop. Karnataka-based SLR Metalliks announced plans to set up a `600-crore steel ingots unit with a capacity of 3.2 lakh tpa at Narayanadevanakere village, Halli taluka, in Bellary district of the state. In the chemicals sector, Matix Fertilisers & Chemicals Ltd is setting up a 1.3-million tpa urea unit (phase-II) at Panagarh in Bardhaman district of West Bengal, with an investment of `5,000 crore. The company plans to use coal bed methane gas as feedstock which will be sourced from Essar Oil's Raniganj block. Automobiles major Honda Cars India plans to set up a `1,350-crore passenger cars manufacturing unit (phase-I) in Gujarat.

Infrastructure Among the major sectors, services and utilities (infrastructure) topped the investment chart with 494 projects worth `42,531 crore and accounted for 57 per cent of the total investment announced in December 2014. Gujarat Integrated Maritime Complex, a subsidiary of IL&FS Maritime Infrastructure

FRESH INVESTMENT BY TOP TEN STATES - DECEMBER 2014

helped the electricity sector in attracting fresh project investment of `9,868 crore. Ku Thermal Power plans to set up a 1,320-MW (2x660) coal-based power unit with an investment of `6,600 crore at Ottapidaram and Sil-

Infra Tops Investment Company Ltd, intends to develop `12,316-crore shipyardcum-captive jetties with LNG terminal at Nana Layja, Mandvi taluka, in Kutch district of Gujarat. The project, to be spread over 336 hectares of land, will include 17-million tpa coal jetties, three general cargo berths and a 5-million tpa LNG terminal. This was the largest project announced in December 2014. Under the railway station modernisation programme announced in the railway budget last year, Surat Municipal Corporation has taken up a `3,000-crore modernization project of Surat station in Gujarat. The project will be executed through the PPP route.

FRESH INVESTMENT BY OWNERSHIP - DECEMBER 2014 Ownership Government Central Government State Government Private Sector Private (Indian) Private (Foreign) Grand Total

Projects 352 77 275 258 237 21 610

NHAI projects NHAI announced seven mega road projects in December 2014. These included: `2,236-crore Amravati-Chikli section (Package-I) from 166.00 km to 360.00 km; `1,888-crore Chikli-Fagne section (Package-II) from 360.00 km to 510.00 km; and `1,909-

`Crore 38,689 26,602 12,087 35,726 31,659 4,067 74,415

Share (%) 51.99 35.75 16.24 48.01 42.54 5.47 100.00

crore FagneMaharashtra/Gujarat border section of NH-6 (Package-III) from 510.00 km to 650.79 km in Maharashtra. `724-crore Ner Chowk-Pandoh section from 190.00 km to 215.00 km (Package-I); `690crore Ner Chowk-Kullu stretch [Pandoh-Bata section (Tunnel)]

GLOBAL VALUE OF CONSTRUCTION EQUIPMENT BY TYPE: 2013 ($ BILLION)

from 215.00 km to 227.95 km (Package-II); `575-crore Ner Chowk-Kullu stretch [Rehukaldhar-Aut Section (Tunnel)] from 230.60 km to 235.22 km (Package-IV); and `556-crore Nerchowk-Kullu stretch [Aut-Takoli section (Tunnel)] from 235.22 km to 242.00 km (Package-V) of NH21 in Himachal Pradesh. In Maharashtra, the JNPT Port Road Company Ltd announced the following three mega road projects to be developed through the EPC route: `570-crore Karalphata interchange from 3.60 km to 6.00 km of NH-4B and from 5.30 km to 6.40 km of SH-54 (NH-348A) and connectivity to the proposed fourth terminal of JNPT Phase-II, (Package-I). `651-crore Gavanphata interchange from 14.80 km to 15.80 km of NH-4B, from 13.20 km to 14.85 km of SH-54 and from 5.40 km to 6.20 km of Amra Marg (NH-348A) and NH-4B from 6.00 km to 14.80 km and from 15.80 km to 21.20 km of JNPT Phase-II (Package-II). `547-crore SH-54 (NH-348A) from 6.40 km to 13.20 km and NH-348A (Amra Marg) from

0.00 km to 5.40 km of JNPT Phase-II, (Package-III). In Karnataka, the Bangalore Development Authority plans to construct a 6.9-km long steel flyover from Chalukya Circle-Hebbal in Bengaluru, under the Jawaharlal Nehru National Urban Renewal Mission with an investment of around `1,200 crore.

Construction In the construction sector, Lotus Greens Developers intends to construct a township at Sector 150, Greater Noida, in Gautam Budh Nagar district of Uttar Pradesh with an investment of `2,500 crore. The project will spread over 300 acres of land comprising residential as well as recreational facilities, including a nine-hole golf course. An equally ambitious residential complex was announced by Ashiana Landcraft Realty in Gurgaon, Haryana. The company plans to set up a `650-crore residential complex, The Center Court, at Sector-88A, Dwarka Expressway, in Gurgaon district of the state.

Power Fourteen new projects and 58 new power distribution lines

FRESH INVESTMENT BY SECTOR - DECEMBER 2014

Source: Off-Highway Research

S]ectors Manufacturing Mining Electricity Services & Utilities Irrigation All Sectors

Projects 81 33 110 29 30 58 8 35 13 56 610

Projects 80 10 14 494 12 610

`Crore 22,697 95 7,703 42,532 1,388 74,415

Share (%) 30.50 0.13 10.35 57.15 1.87 100.00

`Crore 18,451 12,406 9,981 8,741 5,195 3,950 3,348 2,556 1,894 1,365 74,415

Share (%) 24.79 16.67 13.41 11.75 6.98 5.31 4.50 3.43 2.55 1.83 100.00

lanattam villages in Tuticorin district of Tamil Nadu. The largest transmission line project of the month was announced by Tamil Nadu Transmission Corporation. The company intends to set up a `1,593-crore

interstate power transmission system for evacuation of renewable power in Tamil Nadu. The project scope comprises establishment of a 400kV grid substation at Thannampatty; augmentation of various 230kV grid substations, and associated transmission systems.

Healthcare In the healthcare segment, two large projects were announced. KEF Holdings is constructing a Premium Medical Healthcare Providers Hospital with a capacity of 500 beds in Kozhikode district of Kerala with an investment of `550 crore, while All India Institute of Medical Sciences plans to develop an institute with an investment of `850 crore in Kerala. The project will comprise a 1,000-bed facility with ICUs, trauma care units, alternative

medicine besides intake of about 100 students for MBBS.

Education In this sector, newspaper group Bennett Coleman & Co. Ltd has drawn up plans to set up a `600crore multi-faculty Bennett University at Noida in Gautam Budh Nagar district of Uttar Pradesh. Among the states, Gujarat topped the investment chart with 81 projects worth `18,450 crore and accounted for 24 per cent of the total fresh investment emanated in December 2014, and Maharashtra attracted the highest number of new projects, 110 projects, entailing a total investment of `9,980 crore. Call 1800-2101-213 to subscribe to ProjectsToday

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States Gujarat Odisha Maharashtra Tamil Nadu West Bengal Uttar Pradesh Himachal Pradesh Karnataka Kerala Bihar All India

FRESH INVESTMENT BY TOP TEN STATES - DECEMBER 2014

FRESH INVESTMENT BY OWNERSHIP - DECEMBER 2014 Ownership Government Central Government State Government Private Sector Private (Indian) Private (Foreign) Grand Total

Projects 352 77 275 258 237 21 610

`Crore 38,689 26,602 12,087 35,726 31,659 4,067 74,415

Share (%) 51.99 35.75 16.24 48.01 42.54 5.47 100.00

GLOBAL VALUE OF CONSTRUCTION EQUIPMENT BY TYPE: 2013 ($ BILLION)

Power Fourteen new projects and 58 new power distribution lines

FRESH INVESTMENT BY SECTOR - DECEMBER 2014

Source: Off-Highway Research

S]ectors Manufacturing Mining Electricity Services & Utilities Irrigation All Sectors

Projects 81 33 110 29 30 58 8 35 13 56 610

Projects 80 10 14 494 12 610

`Crore 22,697 95 7,703 42,532 1,388 74,415

Share (%) 30.50 0.13 10.35 57.15 1.87 100.00

`Crore 18,451 12,406 9,981 8,741 5,195 3,950 3,348 2,556 1,894 1,365 74,415

Share (%) 24.79 16.67 13.41 11.75 6.98 5.31 4.50 3.43 2.55 1.83 100.00

medicine besides intake of about 100 students for MBBS.

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‘Growing investment will drive project logistics market’ — Ramesh Babu, Managing Director, Seashell Logistics Pvt. Ltd

India spends around 13 per cent of its GDP on logistics, which is higher than USA (10 per cent), Europe (11 per cent) and Japan (10 per cent). How can supply chain efficiency be improved? As you correctly said, Indian business becomes less competitive in the world market because of high logistics cost compared with the developed countries or even many developing countries. Supply chain inefficiency in India is mainly because of three reasons: infrastructure bottleneck, little use of modern technology in supply chain processes, and government rules, regulations and taxes. To improve supply chain efficiency we have to solve all the above problems. New government in India has already declared creating world-class infrastructure as its prime objective. Government is also making rules which will help India become one market by introducing GST. GST will replace the old tax regime and allow logistics and warehousing to consolidate. As far as use of technology is considered, we have to promote private sector to bring in worldclass technology. Use of IT will save a lot of money, cut down time and make information flow seamless, and increase efficiency in the overall supply chain.

Can you elaborate on GST vis-à-vis the logistics industry? The logistics industry is eagerly looking for early implementation of GST because it is among the sectors which will gain most from this. So, we would like it to be implemented without further delay and it will transform the entire Indian logistics industry. We, at Seashell, started thinking how to get maximum benefit with this new law. We have plans to reorganise our internal administrative structure as well as location of our offices across India to deal with new business environment post-GST implementation. We are also planning to add more branches in line with our growth plans taking into account early GST implementation and expected good growth in project logistics to serve our customers better.

Seashell Logistics, based in Navi Mumbai, provides end-to-end logistics solutions for all kinds of infrastructure projects which includes, but is not restricted to, power, irrigation, road, rail, metro, water supply, mining, SEZ, cold chain and gateway terminal. Ramesh Babu, in an email interaction with Sandeep Menezes, expects the growth rate of the project logistics industry to be more than that of the logistics sector as a whole.

ILLUSTRATION ONLY

What is the current size of the project logistics industry in India? What will be the estimated growth in future? Project logistics refers to handling of shipment of overdimensional cargo (ODC), more importantly, those that have to be delivered within a stipulated time. Such cargo needs to be generally transported to remote locations that have accessibility constraints. The current size of project logistics in India is 6.1 per cent of the entire logistics industry which is $124 billion. As there is renewed focus on infrastructure development by the new government, we expect significant growth in the logistics sector. Growing investment in key sectors of the economy will drive the project logistics market in India. Growth rate of this industry will be more than the logistics as a whole and I feel that it will reach 15-17 per cent in a year or two. This high growth rate will be maintained at least for five to seven years and this will be a very exciting time for Seashell and other project logistics companies.

How do you see the project logistics industry evolving in coming years? The new government came into power by promising growth in the economy and creating jobs

for young people. To achieve industrial growth we have to eliminate infrastructure bottlenecks. The government is rightly focused on creating worldclass infrastructure which will help in making our economy competitive globally and also attract manufacturing industries into the country. Currently, the logistics industry in India is very fragmented and there are very few large players and too many small players. Very few logistics companies in India provide end-toend logistics solutions and I am glad to say that Seashell is one of them. I believe that once we start building large infrastructure projects on a regular basis it will have a huge growth impact on the logistics industry. With so many small players providing partial solutions, we will not be able to meet the challenges which will lead to lots of mergers and acquisitions. Large infrastructure project companies need end-to-end solution providers to streamline their activity and complete projects on time. Companies which don’t provide all the services under one roof will not be able to survive in near future.

How does Seashell Logistics stand to benefit? Seashell stands to gain in coming years because of its exten-

sive knowledge and hands-on expertise in the project logistics domain. Seashell Logistics today caters services to 70 per cent of the construction or infrastructure development companies in India. We are happy being in this position where Seashell teams hard work and participation is attached in shaping and building India. We have handled almost all kinds of flagship Indian infrastructure projects that we have seen in last one decade, such as water supply, water reservoirs and dams, national and state highways and expressways, metro rail projects, power projects which include generation and distribution of thermal, hydel, gasbased, wind, solar, and even renewable energy like biomass, and air ports and seaports, and telecommunication. Seashell is chosen by even large foreign construction companies for execution of projects in Africa, Latin America and GCC countries.

India’s warehousing infrastructure both qualitatively and quantitatively is highly inadequate. Going forward, how do you see the scenario evolving? India’s warehousing infrastructure is in a nascent stage of development. It is among

the least developed portion of the total supply chain. In India, it is very common that companies prefer their own warehouses and also to save tax they have warehouses in as many states as possible. To have an efficient supply chain we need to have hub-andspoke model, in which there is one large warehouse which can cater to small warehouses. If a company is small, it may not need a separate warehouse and can share warehouse with other small companies. As our country progresses, warehousing infrastructure will also evolve and we will see large warehouses coming up instead of lots of small ones. Also, we will see sharing of warehouses among many companies which will lead to increase in efficiency in the whole supply chain and reduction of logistics cost of individual companies. To make it happen, government has to bring in tax reforms and make India a one common market.

What is your company’s long-term strategy? At present, Seashell is leveraging its expertise in the project logistics field to become the preferred logistics solution provider for the infrastructure industry. The new government is infusing lot of confidence in business leaders by clearing pending issues. We feel that with this kind of government in place, the country’s future is bright and we will see a huge growth rate in a year or two. As the growth of the company is associated with the growth of the country, we feel that Seashell will also see huge growth in years to come. We have already seen a lot of projects being announced and speedy clearance of long-pending projects. It will benefit Seashell as well as the logistics industry as a whole. At Seashell, we are focusing on vessel operations and in the long term we aim to be a prominent fleet owner and player in deciding the tonnages to and from Indian subcontinent. Scan the QR Code to read full article at www.projectsmonitor.com

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Infrastructure projects will fuel demand for pumps The Indian pump market, which saw 8-10 per cent growth in recent years, is projected to rise to double digits in future. While factors related to large unorganised manufacturers and free and subsidised electricity to agriculture sector may hamper higher growth rates, government initiatives in infrastructure are just as likely to fuel growth in key sectors, increasing the demand for pumps, says Jayant Sapre, Director, Kirloskar Brothers Ltd.

he Indian economy experienced a resumption of growth in 2014, albeit at a moderate rate. The gross domestic product (GDP) rate is expected to increase from 4.7 per cent in FY 2013-14 to 5.5 per cent by the end of FY 2014-15. Government initiatives in the infrastructure development are expected to fuel growth in sectors such as metals and mining, cement, power, water supply, and wastewater. Diminishing groundwater levels, rising requirement for drinking water and unpredictable monsoons increased the demand for water pumps. There was a good demand for pumps from the domestic and agriculture sector. Emerging technologies such as solar-powered water pump may see a huge demand because of non-availability or inadequate availability of electricity in some parts of the country. Proposed investments in the irrigation and oil and gas segments will create more demand for pumps in the country. Players in the industry are investing in upgrading their factories and channel network. Centrifugal pumps are being sought increasingly for applications in the water management, chemical, oil and gas, and other manufacturing industries. The Indian pump industry witnessed a sales growth between 8 to 10 per cent in recent years. As per industry estimates, the pump market in India is set to touch `10,000 crore by the end of 2014. These statistics are based on the organised market while real figures may be more considering the huge unorganised market in the country. The pump market is projected to observe a double-digit growth in the future. However, the factors related to large unorganised manufacturers, free and subsidised electricity provided to the agriculture sector, long product lifecycle and counterfeits may hamper the likelihood of higher growth rates. Kirloskar Brothers Ltd developed and introduced products for the Indian and global market. The Primary Sodium Pump with sodium as a coolant was developed for the Prototype Fast Breeder Reactor (PFBR), Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI) nuclear power plant located at

PHOTOS: KIRLOSKAR BROTHERS LTD

Kalpakkam, Tamil Nadu. The development, in collaboration with Indira Gandhi Centre for Atomic Research, is considered to be an important milestone in India’s three-stage Nuclear Development Programme. The organisation’s focus on globalisation with increased emphasis on international business yielded good results.

New plant In financial year 2013-14, revenues from international business contributed 33 per cent of the consolidated KBL revenues. KBL’s subsidiary, SPP Pumps Ltd, commissioned a new plant in Atlanta, USA. This is KBL’s seventh manufacturing facility outside India. KBL’s acquisition of SyncroFlo, Inc. in Atlanta, Georgia, boosted its product portfolio offerings and reach in the North American market. The acquisition will strengthen packaged offerings for Heating Ventilation Air Conditioning and Refrigeration System (HVACR) market in the North American region. Kirloskar Brothers Ltd has partnered with Peru’s National Water Authority for sharing information and experience related to the management, efficient use and best practices of water. The memorandum of understanding was signed at the Latin American Mine Water Conference, held in Peru, Lima, in September 2014. SPP established a 10,000 sq. metre facility in Cairo, Egypt. In addition to assembling and packaging pumps, the new facility provides value-added services such as energy audits, system analysis, vibration analysis, on

site testing, refurbishment solutions and maintenance contracts. The facility is the first establishment in Egypt to receive Underwriters Laboratory (UL) certification for assem-

bly, testing and packaging of firefighting pumping units conforming to NFPA 20/FM/UL requirement. KBL’s all-women plant at Kaniyur, Coimbatore, in Tamil

Nadu, has been recognised by India’s Limca Book of Records for its Mahila Mission 20 project. The Mahila Mission 20 project saw an all women assemble a pump in 17.25 seconds, a national record. IT-based tools were leveraged across the entity to streamline processes in functions like marketing, after sales and supply chain and deliver incremental value to customers. Kirloskar Brothers Ltd continued its focus on improving on its balance sheet quality through drop in gross current assets and gross current liabilities as compared to the previous financial year. The current upbeat business sentiment will be reflected in the industry’s performance for 2015. The earmarked investments coupled with positive energy will lead to good demand for pumps and accessories.

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‘Private players should be treated as partners in success’ — Rishabh Sethi, Chief Operating Officer, SPML Infra Ltd

SPML Infra Ltd is a leading EPC and PPP player in the water, wastewater and power T&D sectors. Recently, it entered the power distribution sector as a franchisee for the Bhagalpur circle in Bihar. Rishabh Sethi, in this interaction with Venugopal Pillai, discusses the rationale behind this business decision, and explains why government support is critical if India aspires for increasing private sector participation in power distribution.

Tell us about the rationale of SPML Infra entering the rather “risky” business of power distribution. SPML Infra has a rich experience of executing over 600 projects in water, wastewater and power T&D sector. The company is already a prominent player in the water and power sector EPC and foraying into the utilities business was easier than most other companies. Today SPML is developing a number of water and power infrastructures in India and some new projects in the last one year have come in utility segment only. Since SPML was already there in water and solid waste management services, next step was to get into the power distribution and management business. We have taken this step forward to become the prominent player in the power distribution business also similar to our other segments.

Bihar’s power sector is known for being highly inefficient, both technically and commercially. Given this, what was the situation when you took over the Bhagalpur circle? The power situation was indeed in dilemma in Bihar with huge technical and commercial losses. In 2005-06, Bihar had only 550 mw of power available for consumers against the requirement of more than 1300 mw. But in the last few years, the power situation in Bihar has remarkably improved due to the present government policies and reforms in power sector. The annual per capita power consumption in Bihar is currently around 100 kwh, against a national average of 717 kwh, according to the CEA general review. The state government is taking right steps in improving the situation and aims to provide 5,300 mw through its different power generation projects and support from the Centre. Against this backdrop of reforms, we have taken the responsibility to develop the city of Bhagalpur which has a consumer base of 1,60,000 connections. The franchisee area of Bhagalpur Urban Division is spread over approximately 28 sq. km. Power is being supplied from two grid

Overall do you think that India has succeeded, at least moderately, in its attempt to privatise the power distribution sector? India has a long way to go to achieve this. Privatisation is a beginning and one of the only successful models which have been implemented world wide and India also has to adopt the same practice as in developed countries like USA, UK etc. In India we still have several states yet to open up to power reforms. A few success stories are there where private player has brought in large scale of changes and effectively reduced the losses thus making the state utility richer.

substations at Kahalgaon and Sabour and service is provided by 15 power substations that requires around 70 mw daily supply to serve the consumers 24x7. But the average daily supply at present is only 30 to 40 mw. We expect this to improve with the additional power generation units being commissioned.

What is your plan of reviving the Bhagalpur circle? What has been the achievement so far? When SPML took over the city, the aggregate technical and commercial (AT&C) losses were 20 per cent and 50 per cent respectively. Our plan is to cut losses due to theft and reduction in T&D loss to increase billing efficiency. SPML has partnered with IBM as the technology partner for IT enabling services including billing and collection. With the help of technology and efficient infrastructure at place, SPML is now working to reduce theft and ensuring constant power supply. The company has a target to bring the T&D losses down to 15 per cent in immediate future and work on it further to get it at negligible level. We have already connected a number of new houses. New

lines, new infrastructure is in place and a number of reforms have been undertaken; the process is continuing. We are also doing regular awareness campaigns among the consumers for effective usage of electricity and conservation. Over 300 employees of SPML are working to service about 1.6 lakh metered consumers in Bhagalpur. Our 24x7 consumer helpline is functioning to lodge the complaints round the clock. The call centre can be reached at any time to register complaints, request for new connection, billing, payments, faulty meter replacement and other facilities. Consumers need not to stand in a long queue at the bill collection counters to pay their monthly electricity bill which was the situation earlier. The fault finding and repairing mobile vans are into service by 24x7 for ensuring the smooth power supply and immediate replace and repair of any faults developed.

In your view, what support should a private distribution franchisee (DF) be provided by the state government or the state power utility? We feel that government or state power utility should change their attitude towards private players and treat them

as their partners in achieving the goals. They should understand that the private players are their support to help in achieving 24x7 power initiative and to reduce the work burden of the state utilities by bringing in the much needed efficiencies. However, these efficiencies need to be coupled with timely execution of state programs, central programs, PFC funding, MP/MLA funds, RGGV Yojana, RAPRDRP etc., which has been the intent of every distribution franchisee agreement till date across the country. However once a private player enters the business, there are lack of support from the government agencies. This must change and private utility players should be seen as a partner in augmentation to the system of the state.

There is a view that the joint venture route is more effective that the private DF model. What is your opinion? There are different distribution models in the power sector depending upon the nature of activities. Different cities have different dynamics and will have different approaches. However state intervention is extremely critical for any success in power utility business.

How can government improve the level of private sector participation in the power distribution sector? One of the main reasons for losses in the sector is low investment in the T&D sector in comparison to the generation. Then there are technical losses due to overloading on old and aged infrastructure, substations, poor repair and maintenance of existing equipment and inadequate installation of capacitors. The commercial losses are also high due to low metering, billing and collection. Theft, pilferage, tampering of meters is very common and low accountability of work force makes it difficult to control. The lack of power accounting and auditing also contribute to ATC losses. These situations are prevalent in every state and as mentioned before, the turnaround in the power distribution sector would only be possible with private participation and using the efficiency of the private players along with the timely execution of the state programs. Without the intervention of the state, private players cannot survive in the power distribution sector.

After the Bhagalpur circle, has SPML Infra bid for more circles pan-India? Please summarise your plans and goals in the power DF business. We are committed to play a larger role in the utility sector of India, be it water, power, waste and soon gas sectors. And SPML is ready to expand its DF business further.

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INFRASTRUCTURE SPECIAL

Projectmonitor, Mumbai, January 16-31, 2015

‘Make to order’ aluminium formwork PM NEWS BUREAU

he second half of 2014 saw great improvement in sentiment due to change in government at the Centre. Indeed, the government lived up to expectations and initiated steps in the right direction. In the last session, it took the Ordinance way to introduce insurance and land reforms, the key to investment and setting up industry. However, at ground level, results are yet to be seen. A lot of changes have occurred in the residential building segment in last decade. Ten to 12 years ago, there were many projects entailing one or two buildings by smalltime developers. Slowly and steadily this is being replaced by townships comprising 10 or more buildings varying from four to 11 storeys with facility like gardens, clubs etc., or a cluster of two or three blocks of 30+ storeys. This happened not just in metros like Mumbai, Bengaluru and Delhi but also in Tier II cities like Pune and Ahmedabad. This phenomenon has started in Tier III cities as well. Further, reputed corporates like Tata, Mahindra, HCC and Godrej are now active players in the residential building segment once dominated by families. Corporate houses do not hesitate to adopt best construction practices even if it costs a little more to get desired quality or speed of construction. Scale of project automatically brings economy. At the same time land cost has skyrocketed in most parts of the country, breaking dreams of millions to own a house despite rise in incomes. Many state and city government bodies have launched affordable housing projects for weaker sections of society. MFE Formwork Technology is into manufacturing ‘make to order aluminium formwork’. With the exception of a couple of commercial projects, it is normally used in residential build-

ings of all kinds i.e. from ground storey structures for rehabilitation by the Karnataka government to affordable housing projects by Tata and Mahindra to 40+ storey towers by private developers. The product is firmly established to the extent that it is known as ‘Mivan Formwork’, earlier name of the company. It is a revolutionary aluminium formwork construction system, which has been successfully used and developed since 1991, for forming cast-in-place reinforced concrete building structures. Characteristics of MFE Formwork are that it makes use of concrete as the principal building material for the prime reasons of cost and accessibility: cement, sand and stone are readily available in most places. Concrete also brings additional benefits in terms of its build quality and strength, resistance to earthquake tremors; resistance to fire, rot and vermin attack, low noise transmission and durability, and ensuring long life with little maintenance. The MFE system for forming concrete structures is probably the most versatile modern construction system and unlike other systems it is equally suited to both high- and low-rise construction. MFE (formerly Mivan Far East) is a world leader in aluminum formwork system having worked in over 28 countries

‘I see a growth of 20-25% over the next two years’ PAGE 11 outstanding and client profiles, even sectors where the machinery will be deployed. In fact, they are checking everything.

What are the main challenges facing the construction equipment rental segment in India? Infrastructure developers have multiple divisions involved in a construction project such as planning, plant and machinery, engineering, site inspection and accounting. Adding an additional division is like adding additional cost. Hence, most companies prefer outsourc-

ing their equipment division to hirers who have an in-depth knowledge of the technology trends in equipment. Everyday new technologies are coming. Now based on these technologies, new equipment is launched. Thus, everyone wants only the newer machines for rental.

What is the future strategy of Sai Infraequipments? As the Indian construction equipment industry grows in the years ahead, we want to expand our services to more customers and emerge as the preferred choice for construction companies across the

throughout the region, like India, Hong Kong, Nigeria, Kenya, Singapore, Dubai, Malaysia, Abu Dhabi, Thailand, Oman, Sri Lanka and Egypt. MFE has offices in Malaysia, India and Dubai. It was introduced in India in 2001-02. During those days construction of a floor every five-six

days was beyond imagination. Also, the concept of replacing masonry with concrete wall met with stiff resistance. Another challenge was to convince developers to buy formwork as it was a huge upfront investment at that time. The common refrain was, ‘I would rather buy land than invest in formwork.’ It took almost three to four years of effort to establish the benefits of aluminium formwork over traditional formwork. There was no looking back after that with the exception of 2008 & 2009 when the whole world was facing recession. Today, the situation has changed dramatically. It is just a matter of buying formwork as using aluminium formwork is the unwritten best construction practice. In 2008, MFE began looking into friction stir welding. FSW is the joining of solid state pieces meaning that the metal is not

melted. Friction stir welding was invented in 1991 although it took many years before it was widely used. Today, friction stir welding is used in aerospace, oil and gas, shipbuilding, railway fabrication and many other fabrication processes. MFE is the first company to use this technology in manufacturing aluminium panels in formwork industry. The company manufactures the formwork with very strict tolerance. Variation in panel size is restricted to +/- 0.5 mm, which is probably the most stringent in this segment. Currently, it has more than 50 supervisors across India helping clients to first setup of formwork. With the quantum of formwork supplied in last 18 month, every nine minutes somewhere in India MFE is constructing one house. Source: MFE Formwork Technology (I) Pvt. Ltd

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INSIGHT

Projectmonitor, Mumbai, January 16-31, 2015

It is a curious thing, Harry, but perhaps those who are best suited to power are those who have never sought it. Those who, like you, have leadership thrust upon them, and take up the mantle because they must, and find to their own surprise that they wear it well. — J.K. Rowling, Harry Potter and the Deathly Hallows

Heavens won’t fall if fiscal deficit target is not met’ oncerned over reports that planned expenditure may be cut to somehow meet the fiscal deficit target of 4.1 per cent of GDP, the Associated Chambers of Commerce and Industry of India has strongly urged Finance Minister Arun Jaitley that the government and government-owned companies should lead the investment revival cycle. “Heavens would not fall if the fiscal target of 4.11 per cent in the current fiscal year is not met and the deficit moves up somewhat. But it will be quite detrimental to the efforts for economic revival if different ministries are asked to squeeze their planned budget and such saving saves the day for the fiscal consolidation,” ASSOCHAM said after its top brass deliberated over the issue. It said even if revival were to happen, it would be a time lag of at least 18 months before it reflects on the manufacturing sector which is in the dumps. “In any case, where is the question of investment revival in the private sector when the existing capacity remains unutilised to the extent of 30-40 per cent in several industries,” the chamber said. Besides, the private sector is under a heavy leverage and finding it difficult to service the debt under an interest rate regime which remains hostile to consumer demand and investors’ risk appetite. “Under these circumstances, the only way left for investment to return is through state funding of the infrastructure- both economic and social as also asking the cash rich public sector companies to create additional capacity and expansion either through new projects or through asset acquisitions. The public spending on infrastructure has to increase rather than decrease, as there are apprehensions about the same,” ASSOCHAM Secretary General D.S. Rawat noted. According to the trade body, the states were right when they recently asked the Centre not to remain rigid on the fiscal deficit number and be liberal with spending. “That is only way we can revive growth in the economy which is faced with a number of risk factors despite some turnaround because of reforms being taken up by the government.” The risks to the Indian economy are mainly from the overseas situation which has so far helped in terms of low crude oil prices. But the negative impact would be seen on merchandise and IT exports, and money moving out from emerging markets and the attendant impact on the rupee, the chamber said. A faster movement to the Goods and Service Tax would make it incumbent on the Centre to be generous with the states in the initial years of the implementation, which would translate into still higher resource requirement, Assocham felt.

Readers may mail their comments to editor@projectsmonitor.com

Editor Editorial Advisor Executive Editors

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DESIGN & PRODUCTION Art Director : Graphic Designers : Photo Editor

Shashikant Hegde Dr. M.S. Kapadia Prashant C. Trikannad Venugopal Pillai Renu Rajaram (Mumbai) Sandeep Menezes (Mumbai) Debdeep Chakraborty (New Delhi)

Satish Kamath Nitin Parkar, Rajendra Vichare, Madhukar Ingavale Anthony Azavedo

Rooting for public investment in infrastructure sectors DR. M.S. KAPADIA

ILLUSTRATION ONLY/WIKIMEDIA COMMONS

he latest mid-year economic analysis 2014-15 (MYEA) released by the Ministry of Finance on December 12, 2014, is remarkable for its frank assessment of the state of the economy, and the roadmap it charts for the medium-term outlook. There has been a striking turnaround in India’s macro-economy and investor sentiment since the government took over, reflected in lower inflation, a lower current account deficit, surging capital inflows and stock market valuations, and the bottoming out of the growth deceleration seen for nearly three years. The Modi government, since coming into office, has taken a number of policy actions, including deregulating diesel prices, raising the price of natural gas, direct transfers for cooking gas, moderating inflationary pressures in agriculture, increasing foreign direct investment caps in defence, expediting financial inclusion, and moving toward coal deregulation. The government faces challenges in fiscal sphere, as the economy is growing slower than expected affecting revenue growth; and the optimistic revenue projections in the budget have not materialised. The combination has led to a likely shortfall of `1.05 trillion in tax receipt; which together with legacy of last year’s expenditure carry-forward, has made fiscal consolidation extremely difficult for the current fiscal. Interestingly, shortfall due to unrealistic over-estimation of tax buoyancy assumed in budget exercise (most of it in indirect taxes) contributed around three-fourths, whereas GDPmp turning out to be lower caused only one-fourth of the tax receipt shortfall. The govern-

SALES & MARKETING Senior Vice President : Product Head : Manager - Sales : Assistant Manager - Sales : Coordinator :

ment has already announced several measures for fiscal prudence and the economy to rationalise expenditure and optimise available resources, including 10 per cent cut selectively in non-plan expenditure, with a view to containing fiscal deficit at 4.1 per cent of GDPmp Inflation has come down dramatically due to policy actions by the RBI and the government, declining agricultural and oil prices; and the economy growing slower than its potential.

Going forward In addition to liberalising FDI in insurance, two game-changing reforms, namely Goods and Services Tax (GST), which will create a buoyant source of revenue and place the fiscal position on a solid footing, and the increasing use of direct transfers, combining Pradhan Mantri Jan Dhan Yojana with Aadhaar card that could replace over time extensive government interventions to help producers and consumers, are among the major upcoming reforms. Investment is yet to pick up significantly. But on the upside, inflation has come down dramatically; the monsoon failed to extract as much of a toll on growth as feared; and the country received a large supply side

shock in the form of reduced commodity prices that amounted to about 1.5 per cent of GDP. The year would end with growth of around 5.5 per cent, against 5.4-5.9 per cent projected in the Union Budget presented in July last. The country faces challenges that are mostly domestic. The most important amongst them relates to the experience of the last few years that led to overexuberant investment, especially in the infrastructure and in the form of public-private partnerships. There are stalled projects to the tune of `18 lakh crore (about 13 per cent of GDP) of which an estimated 60 per cent are in infrastructure. In turn, this reflects low and declining corporate profitability and debt overhang, termed “balance sheet syndrome with Indian characteristics,” whose ripples have extended to the banking sector where restructured assets are estimated at about 11-12 per cent of total assets. Displaying risk aversion, the banking sector is increasingly unable and unwilling to lend to the real sector. This syndrome is exerting a drag on future investment/spending. In these circumstances, the backlog of stalled projects needs

PAGE 21

FROM OUR ARCHIVES Sanjeev Singh Abhishek Mishra Vijay Bhoir Bharat Metharamani Raghuvansh Pandey

CIRCULATION & SUBSCRIPTION Head - Circulation : Raju Chendavankar Support - Circulation : Anil Mungekar Subscription : Rosebin Mukadam Printed, published and Edited by Shashikant Hegde on behalf of Economic Research India Pvt. Ltd and published at Economic Research India Pvt. Ltd, Sterling House, 5/7 Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Street, Dhobi Talao, Mumbai 400002, and printed from Print Vision, 31, Jyoti Industrial Estate, Near Makhamali Talao, Noorie Baba Darga Road, Thane (West) 400601. Editor: Shashikant Hegde

Disclaimer: This magazine is for information purposes only. All rights reserved. All copyright in this magazine and related works is solely and exclusively owned by Economic Research India Pvt Ltd. No part of the contents of this newspaper may be reproduced in any form without the written permission of the Editor.While due care has been taken during the compilation to ensure that the information is accurate to the best of Economic Research India Pvt Ltd’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Economic Research India Pvt Ltd neither recommends nor endorses any specific products or services that may have been mentioned in this magazine and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this document.Readers are recommended to make necessary enquiries before acting upon or entering into any commitment in relation to any advertisement published in this publication. Economic Research India Pvt. Ltd does not vouch for any claims made by advertisers of products and services. The Directors, Printer, Publisher and Editor of Economic Research India Pvt. Ltd shall not be held liable for any consequences, in the event such claims are not honoured by the advertisers.

May 1, 2006

India has potential to be the fastest growing economy ith 8 per cent average real income growth over the past three years, 2003-04 to 2005-06, the longest and consistent W growth phase since Independence, the country has earned a place among the fastest growing economies in the world. In fact, projections made by PricewaterhouseCoopers suggest that India has the potential to be the fastest growing economy by mid-century, ahead of China, particularly due to a less rapidly ageing population. The robust growth and perceptions of better times in future is reflected in the booming stock markets. MNCs and global research organisations are bullish on the economy than even policymakers at home. FII and FDI are scaling record levels, and Standard & Poor's has revised the outlook on India to 'positive' from 'stable'. A resurgence is under way in the manufacturing sector, which has been lagging behind services in recent years, both in production and investment. The country is expected to emerge as a major manufacturing base in coming years

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SPECIAL REPORT DEBDEEP CHAKRABORTY

he iron and steel industry is one of the sunshine sectors in India and despite chronic handicaps like poor infrastructure continues to forge ahead. According to a recent sectoral analysis by Frost & Sullivan, India will soon move up from fourth to second position in the world, both in terms of production and consumption of steel. The injection of funds by the government into industries such as construction, infrastructure, automotive and power with a view to boost economic growth would drive the steel industry in the future, the Frost & Sullivan analysis said. The steel sector contributes to nearly 2 per cent of India’s GDP and employs over five lakh people. In 2013, India became the fourth largest producer of crude steel globally, moving up from the eighth position in 2003. India’s per capita steel consumption rose from 38 kg in 2005 to 59.2 kg in 2013 and crude steel production in the last 10 years increased from 31.8 million tonnes to 87.7 million tonnes at a CAGR of 10.7 per cent due to advancements in traditional steel making. The total installed capacity for crude steel production in 2013 stood at 102 million tonnes with capacity utilisation in the range of 80 per cent. The total capacity for 2015–16 is estimated at around 112.5 million tonnes. Indian finished steel

Projectmonitor, Mumbai, January 16-31, 2015

Indian iron and steel industry forges ahead ILLUSTRATION ONLY/WWW.SAIL.CO.IN

production grew at a CAGR of 7.5 per cent from 51.4 million tonnes in 2008 to 73.7 million tonnes in 2013. The Frost & Sullivan analysis highlighted India’s position as the world’s largest producer of Direct Reduced Iron or sponge iron and pointed towards the more than 300 MoUs with various states for planned capacity of around 488.56 million tonnes.

Challenges stifling growth of mining sector llegal mining coupled with regulatory challenges, policy gridlocks, inadequate support infrastructure, human resource and technological gaps and insufficient investments are stifling the growth of the Indian mining sector. According to a recently released study titled ‘Mining: Building a sustainable development framework for inclusive growth’ by the Associated Chambers of Commerce and Industry of India and Yes Bank, the mining sector in the country at present is saddled with logistical inefficiencies along with economic, bureaucratic and environmental hurdles as well as a host of capacity related issues. These are primarily due to absence of coordination between the various government agencies involved and lack of central planning. The roadblocks routinely encountered in transportation of minerals from mines to the point of consumption are also a cause of major concern for the sector. The study suggested various measures that need to be initiated by the government agencies, miners and also banks and financial institutions for providing a boost to the sector. The measures include preparing a time-bound plan to closely monitor mining activities, introducing a single-window system to centralise the functions of all ministries and agencies involved for expeditious approvals, making available transparent information to boost investor confidence, enabling local community participation, conducting training programmes to develop skilled manpower, using world-class technology and equipment with latest emission norms, adopting environmentally sustainable practices, revamping of evacuation infrastructure, ensuring adequate financial support from banks, financial institutions and government agencies, tapping into innovative sources of funding by the industry and improving financing avenues across the mineral value chain. The study pointed out that production of minerals in the country had been adversely impacted following the global meltdown and the ban on iron ore mining and its export in the states of Goa and Karnataka. Export of iron ore fell from over 117 million tonnes in 2009-10 to about 14 million tonnes in 2013-14. Around one million jobs were lost as a consequence. The study estimated that rapid urbanisation and growth in the manufacturing sector would fuel up to 9-11 per cent annual growth in demand for various metals and minerals with demand further growing four-five times during the next decade. — Debdeep Chakraborty

The states of Odisha, Jharkhand, Karnataka, Chhattisgarh and West Bengal would witness major investment plans, it added. The intended steel capacity buildup in the country was likely to result in an investment of `5-10 trillion by 2020, the analysis said. In India, more than 60 per cent of steel consumption has been

traditionally driven by the construction and infrastructure sectors which registered the highest growth rates over the past five years among steel-intensive industries. With steel demand driven by increasing infrastructure development and the automotive industry, the analysis expected steel consumption in the country to grow at a rate of 6.8 per cent,

reaching 104 million tonnes by 2017. Taking into consideration investment opportunities in the steel sector, upcoming greenfield and brownfield projects as well as growth trends of the different end-user industries, it expected the country’s projected crude steel capacity to reach 140 million tonnes by 2016 from the capacity of around 100 million tonnes in 2013.The analysis said the Indian iron and steel industry was already in the developed and consolidation stage in terms of the production process. However, it added, major domestic steel manufacturers were now in the process of implementation of information technology to streamline the entire value chain. Drawing attention to the emerging competitive challenges being faced by steel manufacturers in reducing time-tomarket, increasing manufacturing process visibility, enhancing production flexibility, optimising forecasting and scheduling, reducing rejects, stocks, and downtime and ensuring optimal quality, and production efficiency, the analysis noted that IT could play an important role in the areas of advanced planning and scheduling for production, entire metals supply chain management including raw materials and Manufacturing Execution Systems. Scan the QR Code to read the story on www.projectsmonitor.com

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& CONTRACTS

Projectmonitor, Mumbai, January 16-31, 2015

Indian firms win 20 overseas contracts in December 2014 PROJECTSTODAY

WWW.JSL.IN

n December 2014, a total of 175 contracts valued at `18,359.95 crore were awarded, according to data compiled by ProjectsToday. These domestic and overseas orders were won by 108 companies across various sectors. Further, of the 175 finalised contracts, 20 orders valued at worth `5,515.89 crore were bagged by Indian companies for job work overseas. The irrigation and water division of IVRCL, Hyderabad, secured the largest contract of December 2014. The `1,022.58crore order was finalised by Karnataka Neeravari Nigam Ltd for Tubchi-Babaleshwar lift head works under the lift irrigation scheme. The scope of work involves survey, investigation, design, supply, installation, testing and commissioning of head works including all structures, pipeline, and motors with pumps and electro-mechanical works as well as operation and maintenance requirements for a period of five years. The Tubchi-Babaleshwar lift irrigation scheme aims at providing water from Krishna river for development of the droughtprone areas of Jamakhandi, Athani and Nijapur talukas in north Karnataka. L&T bagged an offshore contract worth `894 crore from ONGC for additional develop-

tive power project for a cement plant in Africa.

Overseas contracts

Jyoti Structures Ltd won a `650-crore order for laying a 400kV transmission line in Kuwait. ment of Vasai East project near Mumbai. The contract entails engineering, procurement, construction and installation of two wellhead platforms, subsea pipelines and modification of existing facilities in HeeraPanna-Bassein block of Mumbai offshore. The project is scheduled to be completed by April 2016. Technip secured the third largest contract worth `800 crore, also from ONGC, to build a 6-million standard cu metre per day onshore terminal at Odalarevu, Andhra Pradesh, as part of the Integrated Development of Vashishta (VA) and S1

fields, located 30-35 km off the Amalapuram coast in the KG basin. The scope includes basic design, detailed engineering, procurement, fabrication, inspection and testing, installation, and commissioning of the onshore terminal facilities, which would be integrated into the existing terminal. Meanwhile, 53 fresh contracts worth `7,516.86 crore were awarded in the power distribution sector in December 2014. PGCIL owned 33 of the 53 contracts finalised during the month. The largest domestic contract in this sector worth

`547.39 crore was bagged by New Northeast Electric Group for supply of high voltage switchgear for substation package S1 of 765/400kV at Vemagiri substation and extension of 765kV Srikakulam GIS substation, under system strengthening in Southern Region for import of power from Eastern Region in Andhra Pradesh. The coal and lignite-based power sector saw finalisation of 15 new contracts worth `1,116.66 crore. The largest contract worth `351 crore was awarded to Thermax for building and commissioning a capILLUSTRATION ONLY

SPML Infra secures orders worth `334 cr

The newly-formed state of Telangana has entrusted BHEL with the setting up of Telangana’s first supercritical thermal power plant. Valued at `3,810 crore, the order for setting up the 1x800 MW supercritical thermal power plant on EPC basis at Kothagudem in Khammam district of Telangana has been placed on the company by Telangana State Power Generation Corporation Ltd. The project is targeted to be commissioned in 36 months on fast track basis. The scope of work includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of the project on EPC basis. The construction arm of L&T won orders worth `6,527 crore across various business segments in December 2014 in both domestic and international markets. These are: Building & Factories - `2,521 crore; Transportation Infrastructure - `2,053 crore; Water and Renewable Energy - `729 crore; Power T&D - `668 crore; and Heavy Civil Infrastructure S.N. Subrahmanyan, `228 crore. “These orders reveal the increased activity at ground level in the infrastructure space Senior EVP, L&T which augurs well for the economy and, more particularly, for EPC players like us,” said S.N. Subrahmanyan, Senior Executive Vice President - Infrastructure & Construction, L&T. ABB, the leading power and automation technology group, has won an order worth about $40 million from Ceylon Electricity Board to supply two new 220kV substations and upgrade an existing substation in Sri Lanka. The new substations will be constructed at Polpitiya in the Central Province and Padukka near Colombo, in the Western Province, while the existing substation at Pannipitiya, a suburb of Colombo, will be augmented. The project is scheduled for completion in 2017.

PM NEWS BUREAU

PML Infra Ltd has won new orders worth `334 crores from Karnataka Urban Infrastructure Development and Finance Corporation for 24x7 water supply systems in Bellary (`136.41 crore), Raichur (`117.95 crore) and Hospet (`79.5 crore) with a combined population of 8.5 lakh. These projects are part of ADB-funded projects to improve urban servic-

es in towns and cities in Karnataka. The scope of work for Bellary involves 281 km of new distribution network and 69,159 house service connections. Raichur scope includes 528 km of new distribution network, two raw water pumping stations and 37,117 house service connections. The Hospet scope of work involves 204 km of new distribution network, rehabilitation of two water treatment plants of

Jyoti Structures Ltd won the largest overseas contract worth `650 crore for laying a 400kV transmission line in Kuwait. The second largest contract in this category, worth `488.62 crore, was bagged by Maytas Infra Saudi Arabia from Saudi Bin Ladin Group for the construction of Abraj Kudai Project-P1360, Makkah, in Saudi Arabia. The scope of work involves supply, delivery, installation, supervision, as built, and handing over of structural and reinforcement concrete works for two towers, 2A & 3A (230 metres in height). In December 2014, Indian companies secured 20 overseas contracts worth `5,515.89 crore in airways (aviation infrastructure), power distribution, community services, coal and lignite-based power, water sewage and effluent treatment, other storage and distribution, tourism and recreation, windbased power, petroleum, oil and gas, and computer software sectors from countries like Oman, UAE, Kuwait, Saudi Arabia, Philippines, Turkey, Nepal, UK, Belgium, New Zealand, Algeria and Nigeria. Call 1800-2101-213 to subscribe to ProjectsToday

18.16 mld and 4.54 mld, and 42,705 house service connections with five years of operation and maintenance. With previous orders worth `267 crore for three other cities of Sindhanur, Gadag-Betageri and Haveri, SPML Infra Ltd will be executing drinking water supply projects in six cities of Karnataka with a combined population of more than 12 lakh. Rishabh Sethi, Chief Operating Officer, SPML Infra Ltd, commented, “We are working in water sector for more than three decades and water supply and distribution management has become our core competency. We are happy that our esteemed clients recognise our expertise in water management sector and the new projects in Karnataka is a testimony. These new projects are in addition to a number of water supply and distribution projects SPML is already executing. We have laid more than 4,000 km of water pipelines of various sizes and length in different geographical conditions and with these new projects we will be laying another 1,652 km.”

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MILESTONES

Projectmonitor, Mumbai, January 16-31, 2015

PHOTOS: WWW.ABB.COM

Power Systems division. ABB has delivered all four of the Skagerrak system’s links, with Skagerrak 1 and 2 in the 1970s, Skagerrak 3 in 1993 and now this latest project. The system spans 240 kilometers and crosses the North Sea’s Skagerrak Strait, providing 1,700 megawatts of transmission capacity. For Skagerrak 4, ABB delivered two 700-megawatt Voltage Source Converter stations based on the company’s HVDC Light® technology. The new link operates in bipolar mode with the Skagerrak 3 link that uses classic Line Commutated

ABB sets world record in HVDC light voltage A A BUSINESS CORRESPONDENT

BB has successfully commissioned a high-voltage direct current (HVDC) link between Norway and Denmark to increase availability of renewable hydroelectric and wind power in the region’s electricity grid, the leading power and automation technology group said in a news release. At 500 kilovolts, the Skagerrak 4 link sets a new record in transmission voltage using Voltage Source Converters. The converters rely on semiconductors to convert electricity from highvoltage alternating current to direct current and back, while offering controllability and compact design. VSC links are increasingly being deployed in underground and subsea applications such as integration of renewable energies from land-based and offshore wind farms, mainland power supply to islands and offshore oil and gas platforms, city centre in-feeds and cross-border interconnections. This HVDC Light link rein-

Claudio Facchin, Head – Power Systems, ABB forces the grid owned by Norwegian transmission system operator Statnett and Denmark’s Energinet.dk and helps balance loads between Norway’s hydroelectric-based system and Denmark’s wind- and thermalbased generation. “ABB pioneered the HVDC technology and continues innovating as it is uniquely positioned in the industry with inhouse manufacturing for all key HVDC components, including power semiconductors, converters, converter transformers and high-voltage cables,” said Claudio Facchin, head of ABB’s

Converter HVDC technology. This is the first time the two technologies have been connected in such a bipole arrangement. ABB’s advanced MACH control system was used to master the different ways power reversal is handled between the two technologies. In the future, use of 500 kilovolt VSC converters opens up new possibilities, especially when combined with ABB’s recently launched extruded 525 kV HVDC cable. The world record cable, which doubles power flow and extends range to enable greater integration of distant renewables, reflects ABB’s commitment to leading the development and use of HVDC technology. ABB pioneered HVDC transmission technology 60 years ago and has been awarded about 100 HVDC projects, representing a total installed capacity of more than 120,000 MW and accounting for about half of the global installed base. ABB developed the HVDC technology further in the 1990s and named it HVDC Light.

Rooting for public investment in infrastructure sectors PAGE 18 to be cleared more expeditiously, a process that has already begun. Where bottlenecks are due to coal and gas supplies, the planned reforms of the coal sector and the auctioning of coal blocks de-allocated by the Supreme Court as well as the increase in the price of gas which should boost gas supply, will help. Speedier environmental clearances and reforming land and labour laws will also be critical. But even if the backlog is cleared, there is going to be a flow challenge: attracting new private investment, especially in infrastructure. The PPP model has been less than successful. The key underlying the stock problem that afflicts corporates’ and banks’ balance sheets need to be resolved sooner rather than later.

Public investment In this context, it seems imperative to consider the case for reviving public investment as one of the key engines of growth going forward, not to replace private investment but to revive and complement it. The case for public investment going forward is threefold. First, there may well be projects; for example, roads, public irrigation, and basic connectivity, that the private sector might be hesitant to embrace. Second, the lesson from the PPP experience is that given the country's weak institutions there are serious costs to requiring the private sector taking on project implementation risks: delays in land acquisition and environmental clearances, and variability of input supplies (all of which have led to stalled projects) are more effectively handled by the public sector. Third, the pressing constraint on manufacturing is infrastructure. Power supply and connectivity are key inputs that determine the competitiveness of manufacturing. This would call for review of the neglect of public investment in the recent past and for a medium-term fiscal policy to find the fiscal space for this capex. In effect, this necessitates not just counter-cyclical but counterstructural fiscal policy, motivated by reviving medium-term investment and growth. In sum, MYEA concludes that there is growing ground for hope but narrowing room for complacency.

Demand for road and bridge equipment set to increase PAGE 10 in their growth and expansion programme and came up with business plans to ensure that supply met demand in the road sector, he observed. He further stated that both quantity and quality of equipment were important aspects, without which durable and sustainable development was not

Expand your business through P R I S M

be possible, particularly at the speed of programme delivery planned by the government. He urged the Indian construction equipment industry to focus on product quality, skill development and smart technology, and become partners in developing capacity and expertise in construction, operation and maintenance of road infrastructure including concrete roads.

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& EVENTS

Projectmonitor, Mumbai, January 16-31, 2015

Finolex Pipes bags Asian marketing brand title

S.S. Dhanorkar, MD, Finolex Industries Ltd (centre) at WCRC Leaders Asia Summit 2014. PM NEWS BUREAU

inolex Pipes, India's largest PVC pipes and second largest PVC resin manufacturer, has been chosen as one of Asia's 100 Best & Fastest Growing Marketing Brands. S.S. Dhanorkar, Man-

aging Director, Finolex Industries Ltd, received the honour in a felicitation ceremony held in Delhi recently. "Finolex Pipes understands the value of what water can do in the urban and rural context. A pipeline which brings water to a farmer's field is his lifeline. If this

pipeline breaks down, then the farmer stands to lose not only his crop, but his entire livelihood. This is why we have laid a very high emphasis on our product quality. We consider it our primary responsibility to ensure that the pipeline not only brings life into his crop but also brings him prosperity," Dhanorkar said. Prakash P. Chhabria, Executive Chairman, Finolex Industries Ltd, stated, "While carrying water from the source to the destination, Finolex Pipes has been helping millions across the country create wealth. Today, with water being a limited resource the company's vision is to help every consumer find a more effective way of managing water by creating products across all touch points to manage water better. The company is now metamorphosing into a new philosophy of entering into the business of managing water."

WCRC Leaders - Asia edition had conducted a research survey, reaching out to various Asian manufacturing brands, operating out of Bahrain, Bangladesh, India, Indonesia, Saudi Arabia, Sri Lanka, Malaysia, Oman, Pakistan, Philippines, Qatar, Thailand, UAE and Vietnam. Based on the survey, a list of Asian companies was identified. The top 100 list consists of brands from

South Asia, GCC and Southeast Asia. Finolex Industries Ltd is India's largest rigid PVC-U pipes and fittings manufacturer and the second largest PVC resin manufacturer. FIL is headquartered in Pune, Maharashtra, and operates through its state-of-the-art manufacturing plants located in Urse (Pune) and Ratnagiri, Maharashtra, and Masar (Gujarat).

Ashok Shah of V-Trans felicitated in Gujarat PM NEWS BUREAU

ing the bar. It is a testament to the work we have put in together shok Kunverji Shah, Chair- as a team and also the fact that man, V-Trans (I) Ltd, a we keep innovating and add major transport and logis- more value towards our custics services group, was recently tomers' business." felicitated for his contribution to V-Trans India Ltd (formerly the transport industry, society Vijay Transport Co.). was foundand knowledge shared by late Kunverji ing at various platK. Shah and his forms. The function brother, late Visanji titled 'Jewels of K. Shah in 1958. Gujarat' held on the The company, eve of Pravasi which began as a Bharatiya Divas regional player with 2015 saw the felicitatwo trucks plying tion of global between MahaGujarati personalirashtra and Gujarat, Ashok Shah, ties for their service has steadily to building Indian Chairman, V-Trans (I) Ltd expanded its operaindustry. tions across the country includCommenting on the recogni- ing northeast. In 2001-02, after a tion, Ashok Shah said, "It is major corporate makeover Vijay undoubtedly an honour to Transport Company became Vreceive this award and I am Trans India Ltd with two addihumbled by this recognition tional divisions, V-Xpress, an bestowed on me. Such felicita- Express Division, and V-Logis, a tions drive one to strive for logistics division, under the greater excellence thereby rais- umbrella of 'Group V'.

SPACE MARKETING

Avlock partners with SFC Koenig vlock International India Pvt. Ltd, a joint venture between Avlock International, South Africa, and Bulchandani Group, India, has been appointed as the exclusive distributors for sealing and flow control systems by SFC Koening, Switzerland, leaders in their field, a news release said. The products may be used in hydraulic manifold, pumps and motors, valves and mobile power packs. The new partnership, which came in effect on January 1, 2015, will bring together the global resources and expertise of SFC Koenig Group and the local infrastructure of Avlock in India. "The partnership will capitalise on the strong reputation SFC Koenig has developed as a leading provider of sealing and flow control technology around the world and the excellent infrastructure and target customer access shared by the Indian promoter group," the release said. Koshi Thomas, Country Manager, Avlock International India Pvt. Ltd, said: "The SFC sealing and flow technology products perfectly complement our existing range of fasteners that we currently supply to the same customer base and believe that the Indian companies continue to use older more inefficient sealing systems which can easily be replaced with the more sophisticated systems offered by us." The product lines for this new partnership will include sealing plug of pull and push types as well as flow controllers. These may be used in all types of engineering applications including hydraulics Contact: Koshi Thomas, Country Manager, Avlock International India Pvt. Ltd, Tel: 022-66345611 Fax: 022-66345622 Website: www.avlock.co.in

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SPACE MARKETING

Projectmonitor, Mumbai, January 16-31, 2015

High vapour resistant insulator for air-conditioning applications

he Supreme Industries Ltd, founded in 1942, pioneered many pathbreaking products in the country and became a trendsetter in plastics industry by introducing many advanced solutions for various applications and industries. Supreme's Insulation Division offers solutions in the areas of ducting insulation, underdeck insulation, pipe insulation, floor insulation, insulation joint sealing tapes, sound insulation, overdeck insulation and wall insulation. The main goal of a good insulation material should be that of preventing water vapour from spreading through insulation as water is an optimal heat conductor. INSUflex, by Supreme Industries, is a CFC-free, black flexible elastomeric closed-cell Nitrile Rubber thermal insulation that provides a highly efficient method of insulation and effectively controls condensation against both heat loss and heat gain. The material is particularly suitable for insulating pipe works for condensation control. It can be used on chilled water pipe lines, refrigerated pipeworks, hot and cold water services, and on sheets or rolls in airconditioning ductworks. INSUflex, has a very high diffusion resistance factor to water vapour transmission ?7000, a low thermal conductivity and an excellent fire safe performance. It is suitable for a temperature ranging from -55oC to +105oC. The product does not depend on any additional outer thick skin or covering but is in built with the insulation and extends through the full thickness.

INSUflex range is resistant to corrosion, fungal and mildew growth and is therefore suitable for clean room applications. Insulation material with a low 'K' value equates to a high energy saving potential and thermal performance. Thermal conductivity is the main data used to technically calculate insulation thickness required to prevent condensation.

INSUflex advantages

Good flexibility at low temperature Clean, dust-free, fast and easy installation Low thermal conductivity High water vapor resistance factor ?7000 Protects pipes against corrosion by environment elements Low toxicity index offers minimal toxic fire hazard for safety assurance and rescue operations Good fire performance, for buildings with high occupancy, Class 1 product Unique closed-cell structure, provides an ideal vapor barrier resistance INSUflex is available in combinations of various wall thicknesses and diameters to suit G.I., copper and PVC pipes. The product is applied to the

surface using an adhesive compound. A protective layer of glass cloth, in two layers with an adhesive compound is then applied before providing a weather barrier, such as aluminium/G.I. cladding for outdoor application.

Other INSU products INSUshield is a non-fibrous, fire retardant ('Class O' in fire propagation and 'Class 1' in surface spread of flame), closed cell, tri dimensional chemically crosslinked polyethylene XLPE foam. An ideal environment friendly insulation material, with a perfect solution for all your insulation needs for ducts, roofs, pipes, vessels, etc. The divergent advantages of INSUshield are ease of installation, low thermal conductivity and good moisture and vapour resistance preventing microbial growth and optimum condensation protection. INSUreflector is a radiant heat reflective insulation material made of polyethylene air bubble film (ABF) laminated with aluminum foil on one or both sides. It is a low e-reflective insulation material with a low mass to air ratio, which effectively blocks the radiant heat transfer. The bright surface of the aluminium foil, which encases the FR polyethylene air bubble material, reflects 96 per cent to 99 per cent infra-red radiation received by the surface of the heated slated roof. For more details, contact Atul Khanna at +91-9810529116 or email on insulation@supreme.co.in

PATHFINDERS

Raja V. Ramani aja V. Ramani, Emeritus Professor of Mining and Geo Environmental Engineering, has been awarded the Fulbright-Nehru Distinguished Chair at the Indian Institute of Technology - Kharagpur for October 2014 to February 2015. The Fulbright Distinguished Chairs Programme awards are viewed as among the most prestigious appointments in the Fulbright Scholar Programme. A graduate of Indian School of Mines, Dhanbad, Ramani went to Penn State, USA, in 1966 after six years of engineering and managerial experience in underground coal mines in India. At Penn State, he was the chair of the Mineral Engineering Management programme from 1974 to 2001, Head of the Department of Mineral Engineering from 1987 to 1998, and Director of the Miner Training Programme from 1992 to 2001. He codirected the Generic Mineral Technology Centre on Respirable Dust from 1983 to 1998 and the Standard Oil Centre of Excellence from 1983 to 1989. Ramani has taught undergraduate, graduate and continuing education courses in mining engineering and mineral management. He has directed 80 graduate students to advanced degrees in mineral engineering and has authored more than 200 research papers and more than 50 research reports. Ramani has a wide range of research interests covering the health, safety, production, environmental and management aspects of mining operations. His research activities have involved theoretical and practical aspects, mathematical and computer modeling, and experimental work in the laboratory and mines. With funding from the US Bureau of Mines, National Institute for Occupational Safety and Health, National Science Foundation, Mine Safety and Health Administration, Environmental Protection Agency, Office of Surface Mining, and other federal and state agencies and industry, Ramani has done extensive work in such areas as ventilation, airborne respirable dust control, mining methods, mine systems engineering, resource assessment, investment evaluation, cost control, human resource development, environmental engineering and mineral management. Ramani has served as consultant for national and international agencies (United Nations, World Bank, National Safety Council etc.) and mining companies worldwide on health, safety, productivity and environmental issues. He has been appointed to technical and advisory panels by the US Department of Health and Human Services, US Department of Interior and US Department of Labour. In 2002, he chaired the PA Governor's Commission on Abandoned Mine Voids and Mine Safety that was set up immediately following the Quecreek Mine inundation incident and rescue. He has chaired two committees for the National Research Council and has been a member of five more.

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Published on 1st and 16th of every month W.P.P. Lic No.MR/TECH/WPP-22/SOUTH/2015 Regd No. MCS/030/2015-17 Posted at Mumbai Patrika Channel Sorting Office, Mumbai 400001 on 1st/2nd and 16th/17th of every month

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Projectmonitor, Mumbai, January 16-31, 2015

New flyovers for Mumbai T PM NEWS BUREAU

he Mumbai Metropolitan Region Development Authority recently approved the construction of flyovers, a vehicular underpass and conducting detailed project reports for two other projects in Mumbai. MMRDA also cleared a road improvement project at Chheda Nagar, Ghatkopar East, on Eastern Express Highway. MMRDA will construct a fourlane 40-metre flyover with two approach roads of 180 metres and 220 metres at L&T junction on Shil Phata-Mhape Road. The project includes concretisation of a 1-km long road with three lanes each for up and down traffic and providing for 6.5-km long service roads. The project will cost around `47.50 crore. Two more flyovers proposed over Ghansoli Naka and Talawali Naka and at Savita Chemicals junction, along with a vehicular underpass at Mhape junction, were also approved. The 1.4-km long flyover at Ghansoli Naka and Talawali

ANTHONY AZAVEDO

Naka with 2+2 lanes (`108.81 crore), the 600-metre long flyover at Savita Chemicals junction with two lanes running in Thane-Belapur direction (`26.54 crore), and the 500metre long and three-lane vehicular underpass at Mhape junction, from Thane to Belapur (`19.63 crore), will be constructed at an estimated total cost of `155 crore. “All the projects underline the priority given to transport and communication as far as the city is concerned. Connectivity will remain the centre of all or any infrastructure development, for,

that is the need of the hour,” said U.P.S. Madan, Metropolitan Commissioner, MMRDA. The Executive Committee recommended – to the Authority – road network improvement project to rid the traffic chaos being created by the innumerable vehicles assimilating at Chheda Nagar from the SantacruzChembur Link Road and the Eastern Freeway. Both these roads provide hassle-free traffic movement only to be slowed down at Chheda Nagar, Ghatkopar-East. Besides, there is a proposal to construct two flyovers and an

elevated road to decongest Chheda Nagar. This will include a 680-metre long and three-lane wide flyover (`57.66 crore) from Sion to Thane, running parallel to the existing three-lane flyover. Another 1,240-metre long twolane flyover (`94.39 crore) will run from above the existing Chheda Nagar flyover and carry traffic from Navi Mumbai to Thane. The 650-metre long and two-lane elevated road (`52.28 crore) will connect the existing Chheda Nagar flyover with Amar Mahal junction flyover. MMRDA also plans to appoint consultants to conduct technoeconomic feasibility study and detail project reports for the subregion of Thane-BhiwandiKalyan. The DPR for the Navghar-Chirner multimodal corridor has been approved. It is expected to serve as the backbone of connectivity to Mumbai as it connects Bhiwandi Bypass, NH-3, NH-4, NH-4B, NH-17 & NH-8, and Mumbai-Pune Expressway, and will facilitate the development of growth centres at Virar, Bhiwandi, Kalyan, Dombivli, Panvel and Uran.

100 RO water plants for Delhi clusters ata Power Delhi Distribution Ltd has signed an MoU with Delhi Jal Board for installing industrial type RO plants with ATW (any time water) machines, popularly called Water ATWMs. The MoU was signed by Praveer Sinha, CEO & Executive Director, TPDDL, and Vijay Kumar, CEO, Delhi Jal Board, in the presence of Lt. Governor of Delhi, Najeeb Jung As per the MoU, TPDDL would install 10 water ATWMs during the current year at Haiderpur, Lal Bagh (Azadpur), Sanjay Basti, Timarpur, Inder Lok, Kirtinagar, Keshavpuram, Chander Shekhar Azad Colony and Wazirpur Industrial Area. Over the next three years, TPDDL plans to install 100 safe drinking water RO plants with ATW dispensing systems that will benefit approximately one million residents of the JJ clusters and resettlement colonies. TPDDL has around 223 JJ clusters in its licensed area.Each Water ATWM has a capacity of purifying 500-1,500 litres of water per hour.