Indo American News • Friday, March 05 , 2010
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Friday, March 05 , 2010
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Crunch Time for Delhi’s New T3 Terminal
By Samar Halarnkar NEW DELHI (Live Mint): When you leave for work at 7.30am and return by 11.30pm every day, survive on adrenalin, a dab of rice and vegetable for lunch, sleep for 4 hours and have a mission to complete India’s biggest airport terminal in a world-record time of 37 months, that’s an unsurprising dream. But mechanical engineer I. Prabhakara Rao, 50, can think of no rest until he meets his July deadline to open T3 (Terminal 3), Delhi’s new international and domestic terminal—and the world’s sixth largest—three months before the Commonwealth Games. Larger than the new terminals of Mumbai, Hyderabad and Bangalore combined, T3 cannot afford the just-in-time approach that much of Delhi is taking, with some infrastructure projects unlikely to meet the Games deadline of October. In a country notorious for eternally scrambling to catch up, T3 is the biggest Indian example of the build-and-they-will-come infrastructure philosophy that China has used to spur growth. The original annual traffic projections of 20 million for 2010 were revised to 30 million after Rao, chief executive officer (Airport Development) of Delhi airport developer GMR Group, held at least 120 meetings with various agencies in the travel trade. Just as well: Delhi already handles 25 million people today, despite 9/11 and the slowdown. Mindful of an opening week fiasco when employees didn’t know how to run the baggagehandling system and flights were finally turned away at Heathrow’s state-of-the-art T5 in 2008, Rao has started detailed tests before commercial flights start landing in July. “I don’t want a (Heathrow-style) T5 fiasco,” says Rao emphatically. “In three months we want everyone to know, be absolutely clear, what needs to be done.” Lugging at least 1,000 pieces of luggage, they start the first major trial of India’s most advanced baggage-handling system. It even has a CT Scan, like those used in hospitals, to check every inch of suspicious luggage. The check-in displays are up and running, announcing PanAm flights—complete with the logo of the defunct American airline—to Paris, Kathmandu and New York. “Things are going well,” shouts Yvonne Kuger, above the din and amid the dust and frenzy around her. A cheerful, calm woman, she’s head of Operations Readiness Airport Transfer, a consulting team from Munich that’s already helped Rao’s GMR group activate the
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There was the small matter of a village in the middle of the project area, and it could not be moved. So, a new master plan had to be drawn up— skirting the village. When work finally did start by September 2006, typically Indian challenges emerged. Like the new runway that had to be extended by 800m, thanks to an immovable Shiva statue in the flight path. Incoming aircraft must clear 1.4km of runway before they can touch down. With construction in the final, frenetic phases, the results of using the best in the business are evident. With a skill honed on the world’s highest building, the Burj Khalifa, Chinese workers are fixing the last of the 1 sq. km of glass that will be wrapped around T3. A Singapore company is handling the steel, an American company the aerobridges. The chief contractor is Indian engineering firm Larsen and Toubro Ltd, global veteran of highways, nuclear plants and more. Work now goes on 24/7 as Rao and a multinational team of nearly 25,000 workers, 300 engineers and other specialists race towards the official opening in July. For now, Rao—whose son, an engineer and an MBA (master’s in business administration), does not want to follow in his father’s footsteps—must manage with half the sleep a man his age needs. “There is no choice,” he says. “It just has to be done.”
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Bankrupt Lyondell Rejects Reliance $14.5 Rescue Bid HOUSTON: The board of bankrupt LyondellBasell Industries AF rejected a $14.5 billion (Rs66,700 crore) bid from Reliance Industries Ltd, an oil refiner and explorer controlled by India’s richest man, two people briefed on the matter said. The offer pitted billionaire Mukesh Ambani’s Reliance against creditors including Apollo Management Lp, a New York-based private-equity firm led by Leon Black, which had backed an earlier reorganization plan that would give them an equity stake in the chemicals maker. Lyondell spokesman David Harpole and Reliance’s Manoj Warrier declined to comment. “It doesn’t mean this is the end. There’s an opportunity to counteroffer, but the upside value for shareholders is rapidly reduced,” said Neil Beveridge, a Hong Kong-based analyst at Sanford C Bernstein Ltd. “LyondellBasell was an opportunistic move to buy a distressed asset at an attractive price. Bidding higher removes the rationale for doing this.” The Rotterdam-based chemicals maker had earlier rejected a revised Reliance bid that valued it at $13.5 billion, The Wall Street Journal said on 8 January. India’s largest firm by market value had raised its offer for a controlling stake to $14.5 billion, two people with knowledge of the offer said 22 February. The Mumbaibased company initially offered an undisclosed amount on 21 November and has yet to make public the value of its bid. Reliance shares rose 0.57% to close at Rs983.86. The shares have dropped 9.7% this year, outpacing the 3.96% decline in the Bombay Stock Exchange’s benchmark Sensitive Index. The cost of protecting Reliance’s bonds from default fell. Credit-default swaps on the company declined 7 basis points (bps) to 165 bps as of 4.48pm in Singapore, according to Royal Bank of Scotland Group Plc. The swap continued on page 28
Hyderabad airport and Delhi’s new domestic terminal 1-D. “It’s a tight deadline, but we’ll make it.” Singapore’s gleaming Changi terminal took 70 months to build, Heathrow’s new terminal T5 took at least 65, so wasn’t this seemingly impossible deadline for Delhi a gamble? “I don’t gamble,” says Rao, a lean, intense man who has spent 26 years building everything from power to steel plants. “I am a hardcore project manager.” He says the secret has been intense “planning, planning, planning” of men, materials and machinery. Take materials: At its peak, construction needed 1,000 trucks of stone and mud, driven in silently every night through back roads to the airport, avoiding the main highways. Take men: When construction was at its most frenetic, 37,000 workers were used. To be motivated and productive, they were housed by GMR (20,000 houses are still in use) on the airport premises, with power, food, sewage lines, a village-like Sunday market, even a Sunday movie (motivational films such as Chak De! India). The speed of construction at T3 has attracted international attention. Streams of visitors file in and out every day of the sprawling construction site. To take lessons for their own future expansions, officials from Beijing and Singapore come to study INDIVIDUAL & how Delhi is throwing up GROUP a terminal this fast. Today, TERM & French business students WHOLE LIFE are trawling the international and departure terminals, DENTAL each 1.2km in length with a DISABILITY total of 78 shiny, glass-andsteel aerobridges. LONG TERM CARE When GMR took charge of Delhi International Airport (P) Ltd (DIAL), to use its official name, on 4 May 2006, the first thing they had Sam Merchant to do was revise their careReliance Business Solutions 3300 S.Gessner Rd, Ste 176, Houston, TX-77063 fully drafted master plan.
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INDO AMERICAN NEWS • FRIDAY, MARCH 05 , 2010 • ONLINE EDITION: WWW.INDOAMERICAN-NEWS.COM