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April 2016 • Vol.18 No.7
• Construction Chemicals & Waterproofing...78 • Trends in PEB, Prefab & Roofing...86 • Interviews: Republic of Kenya; Schindler India; Trimble Buildings...92,94,83
Smart Cities
NOW
CW records business opportunities in India’s 20 cities selected to be smart, and connects with the municipal corporations to get a sneak peak into budgets, SPV status, tenders, and more…42
Exclusive!
Adun Saraban, Managing Director, ITD Cementation India...68
Bhubaneswar Pune Jaipur Surat Kochi Ahmedabad Jabalpur Visakhapatnam Solapur Davanagere Indore New Delhi Coimbatore Kakinada Belgaum Udaipur Guwahati Chennai Ludhiana Bhopal
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CO N T E N T S
42
Cover Story SMART CITIES NOW With the announcement of the 20 cities to be developed as smart, CW records the industry’s reactions on business opportunities and unveils the tendering, budget and SPV details of the selected cities.
86
Photo courtesy: AECOM.
78 86
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Construction C t ti World W ld A April il 2016
PEB, PREFAB & ROOFING Being a cost-effective and timely solution, PEB is gaining popularity with immense opportunities on the anvil.
66
Spotlight ACE OF PORTS Whether it is the economic scenario or weak infrastructure spending, ITD Cementation has overcome every challenge and now views the ports sector as significant to its expansion and growth.
92
Trade Talk “INDIA IS THE LARGEST EXPORTER TO KENYA.” RA Goenka, Honorary Consul General, Republic of Kenya, shares prospects in Kenya in the construction and infrastructure space for Indian companies.
84
Material Advantage THE MAGIC MINERAL With a strong fire-resistant property, gypsum is a premier building material and is gaining popularity in India.
76 4
Features CONTRUCTION CHEMICALS & WATERPROOFING With construction chemicals in India poised to grow bigger and better, it is high time to dispel the myths surrounding them.
SPECIAL PROJECT FLYING HIGH The magnificently constructed new terminal building at Khajuraho Airport is equipped with state-of-the-art services.
The new Tekla Structures 2016 offers you fresh modern look and feel, ease of use, efficient drawing production and enhanced collaboration. The evolution of Tekla Structures goes on strong at the heart of Trimble Buildings’ offering. Learn more about Tekla Structures 2016 www.teklastructures.com
Aki Luntamo BIM Master, Sweco Tekla BIM Awards 2015 winner
In the hands of the BIM master, architect’s drawings evolve into constructible 3D models that develop into real buildings. That’s made possible by Tekla software. Join the evolution. tekla.com/evolution
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CO N T E N T S 62 142 94 83
96 122
TECHNOLOGY LIGHTER, FASTER, BETTER The use of structural steel revs up the speed of construction and ensures quality.
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HRD HR TIPS Manoj Pandey, Head-HR, Ador Welding, shares his experience, learning and beliefs in HR management. INTERACTIONS “WE ARE LOOKING AT A HUGE GROWTH IN URBANISATION.” - Antony Parokaran, CEO, Schindler India, shares more on growth drivers and the company’s offerings.
CW PROPERTY TODAY...99
“IN TERMS OF OPPORTUNITY, INDIA IS AN IMPORTANT AND ATTRACTIVE MARKET.” - Rob Painter, Vice President, Trimble Buildings, shares more on the company’s operations and focus in India. EVENT REPORT 3RD ANNUAL EQUIPMENT INDIA AWARDS & CEO-FORUM A large number of stakeholders from the construction equipment community gathered to celebrate, in letter and spirit, the awards in Delhi. EVENT PREVIEW BAUMA 2016
Photo courtesy: Mahindra Lifespaces.
Cover Story
AFFORDABLE 100 AUGMENTING HOUSING With ‘Housing for All’ a crying need for the country, and a priority for the government, it is time for a multi-pronged strategy that involves the private sector to bridge the demand-supply gap.
IN THIS ISSUE 8 12 14 16 18 28 30 32 34 38
Index Desk Letters News & Events Project Update Project Value Smart Cities Update Power Update Transport Update Equipment Update
40 132 134 135 136 138
Cement Update Product Parade Tenders Contracts Awarded Diary Building Material Prices 144 Advertisers’ Index 146 Newsmakers
In the May issue, Look out for! Features: • Cranes • HVAC • Concrete & Concrete Equipment
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Construction World April 2016
118
Guest Article A BRIDGE OF HOPE Pankaj Kapoor, Founder and Managing Director, Liases Foras, explains the benefits of the much-awaited Real Estate Regulatory Bill.
113
Interaction “WITH ENFORCEMENT OF REGULATION, REAL ESTATE WILL ATTRACT INSTITUTIONAL CAPITAL.” - Amit Bhagat, CEO & Managing Director, ASK Property Investment Advisors, shares more on the funding scenario for the real-estate market and solutions for the long term.
110 REAL ESTATE UPDATE 115 PROPERTY RATES
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FINDEX This service is provided by CW for easy reference of organisations and individuals reported in this issue.
8
Organisations
BASF India ..........................78
Chowgule Construction
Government of
ABB India ...........................18
BEML .................................98
Chemicals ............................80
Uttar Pradesh.......................37
ACE ....................................98
Bhageria Industries ..............32
CICO Technologies .............78
Greater Cochin Development
Adani Enterprises.................18
Bhasin Group ......................86
Cinnamon Hotels & Resorts .112
Authority ............................37
Ador Welding ....................142
BHEL..................................26
CNH Equipments ...............98
Grundfos Pumps India .......133
AECOM .............................42
Bhopal Municipal
Coal India ...........................18
Gujarat Pipavav Port ...........35
Ahmedabad Municipal
Corporation ........................60
Container Corporation of
Gujarat Power Corporation..20
Corporation ........................56
Bhubaneswar Municipal
India ....................................35
Guwahati Municipal
Airports Authority of India ..76
Corporation ........................51
Corporation of Coimbatore .60
Corporation ........................59
Ammann Apollo ..................98
Bhushan Steel ......................20
Corporation of Kochi ..........52
Havells India ........................33
Andhra Pradesh Industrial
BIL Infratech .......................85
Corporation of the City of
HDIL ................................106
Infrastructure Corporation ...26
Birla Corporation ................40
Belagavi ...............................54
Hewlett Packard Enterprise..43
Apeejay Surrendra
Border Roads
CR Narayana Rao
Hinduja Group ..................112
Park Hotels ........................112
Organisation ........................26
(Consultants) .......................86
Hitachi Sumitomo ...............38
Apollo Tyres .........................26
British Paints .....................132
CREDAI ...........................110
HSBC India.........................48
Asian Development Bank.....18
Carlson Rezidor Hotel
Dalmia Cement Bharat .......40
HUDA ................................37
ASK Property Investment
Group................................112
Davanagere City
Hyatt Hotels Corporation ..110
Advisors ............................113
Caterpillar ...........................98
Corporation ........................58
iCEMA ...............................97
Atlas Copco ................... 38, 98
Caterpillar Inc .....................38
Delhi Development
IIFCL ..................................18
Authority .................... 30, 110
IL&FS .................................48
Doosan Bobcat ....................98
India Gypsum ......................84
Doosan Heavy Industries &
India Ratings & Research ....67
Construction .......................38
Indiabulls Real Estate .........110
Dow Construction
Indore Municipal
Chemicals ............................78
Corporation ........................55
DSB Maschinenbau .............38
Interarch Building Products .86
Embassy Industrial Parks ......20
ITD Cementation India .......66
Essel Infra ............................43
Itron ....................................44
Everest Industries .................86
Jaipur Municipal
Flexa Lighting....................133
Corporation ........................51
Flowcrete India ....................78
Jaquar Group .....................133
Fosroc..................................79
JCB ............................... 38, 98
Gayatri Projects..................146
JICA ..................................146
Government of
JLG Industries......................38
Andhra Pradesh ........... 20, 110
JLL India ...........................103
Government of Gujarat ........33
Joyville Shapoorji ...............108
Government of India ... 35, 110
JSPL ....................................62
Government of Jammu and
JSW Cement .......................40
Kashmir ...............................33
JSW Energy .........................20
Government of Karnataka ....37
JSW Steel ............................88
Government of Kerala .........40
Kakinada Municipal
Government of
Corporation ........................59
Madhya Pradesh...................30
Kalyan-Dombivli Municipal
Government of Odisha ........20
Corporation ......................110
Government of Punjab ......110
Kirby Building Systems India ...86
Construction World April 2016
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FINDEX
10
KKR ...................................40
North Delhi Municipal
VDMA ................................97
Milind Torwane ...................52
Kobelco Construction
Corporation ......................112
Visakhapatnam Municipal
Narayan Konwar ..................59
Machinery ...........................38
NOTION .........................132
Corporation ........................59
Naresh Kumar .....................50
Konecranes ..........................38
NPCIL ................................32
VO Chidambaranar Port ......35
Neeraj Bansal.....................103
Konkan Railway
NTPC .................................32
Wipro..................................30
Niladri Sarkar ......................62
Corporation ........................36
Oberoi Group.............. 18, 112
Wirtgen India ......................98
Nilotpol Kar ........................78
KPMG ..............................103
Off- Highway Research .......98
Zamil Steel, India.................86
Nitin Lall .............................98
Kridhan Infra .......................18
ONGC................................18
L&T Metro Hyderabad ........97
Parryware ..........................133
People
Pawan Mathur .....................44
Larsen & Toubro ..................26
Pergo .................................132
A Krishnakumar ..................98
Philip Bane ..........................42
Lemon Tree Hotels ............110
Pidilite Industries .................78
Aamer Azeemi .....................44
Prasad Satavse ......................80
Liases Foras ........................120
Poddar Housing .................109
Abhijit Gupta ......................98
Praveen Kumar ....................59
Lodha Group .....................112
Prism Cement .....................40
Adun Saraban ......................66
R Roy.................................85
Ludhiana Municipal
PTC India Financial Services..33
Alakesh Roy ........................86
RA Goenka .........................92
Corporation ........................58
Pune Cantonment Board ...110
Aleem Basha ........................59
Raghav Chandra ..................97
Maharashtra State Electricity
Pune Municipal Corporation ..54
Alok Kumar Kar ..................51
Rajesh Nath ........................97
Distribution Co .................106
Rays Power Infra .................33
Amit Bansal .........................98
Ramakant Jha ......................48
Mahindra Lifespace
Reliance Industries ..............32
Amit Bhagat ......................113
Raman Aggarwal .................97
Developers..................109, 112
Republic of Kenya ...............92
Amit Meena ........................52
Ramesh Palagiri...................98
Mahindra World City
Sandvik Construction ..........38
Amitesh Agrawal ..................84
Ramya Bhatt........................56
Developers...........................20
Schindler India ....................94
Anand Sundaresan................97
Rob Painter .........................83
Manitex ...............................38
Schneider Electric India .....132
Antony Parokaran ................94
Rohan Saxena......................55
Manitowoc ..........................38
Schwing Stetter India...........97
Ashish Aggarwal...................50
Rohit Poddar.....................109
Marriott International, Inc .112
SEBI..................................112
Ashutosh Pednekar ..............51
S Manjunath ........................98
MCHI-CREDAI ...............106
Shriram Automall ................98
BH Narayanappa..................58
S Ramnath ..........................68
McKinsey ............................97
Skyjack ................................38
BS Nagaraj ..........................79
Sachin Gulaty ....................103
Messe M端nchen ................122
Smart Cities Council ...........42
CN Raghavendran...............86
Sameer Malhotra .................98
Milestone Capital Advisors .112
Solapur Municipal
D Raju ................................86
Samir Bansal ........................98
Minda Industries ..................18
Corporation ........................58
Dr K Vijayakarthikeyan ........60
Sanjay Bhatia .....................146
Ministry of Coal ..................26
SREI Equipment Finance ....97
Dr Sanjay Bahadur ...............78
Sanjay Kumar ......................60
Ministry of Housing &
Sterling Holidays Resorts ...110
DR Vishwanatha ..................98
Sanjeev Kumar...................104
Urban Poverty Alleviation ..106
Sungrow ..............................33
G Prabhu .............................54
Sarjerao Kasbekar.................78
Ministry of Railways ............36
Surat Municipal Corporation52
Gautam Suri ........................86
Siddarth Sihag......................60
Ministry of Shipping ............35
TAL Manufacturing
GK Singh ............................58
Sorab Aggarwal ....................98
Modulex..............................18
Solutions .............................26
Guy Perry............................43
Sriram Mahadevan .............109
Mumbai Port Trust.............146
Tata Bluescope Steel ............88
Hariprakash Pandey ...........106
SS Bhasin.............................86
Municipal Corporation of
Tata Hitachi .........................98
HS Balhara ..........................76
Sukanta Mallik .....................78
Jabalpur ...............................56
Tata Housing .....................112
Jagdish Salgaonkar................42
Sunil Sapru ..........................98
Nahar Group .....................112
Tata Power Renewable
Jasmeet Singh.......................98
Takema Sakamoto ..............146
NCC ...................................33
Energy .................................33
Klaus Dittrich ....................122
TV Sandeep Kumar Reddy ...146
Neelachal Ispat Nigam .........26
Tata Steel .............................20
Kunal Kumar .......................54
Varun Awtani .......................67
New Delhi Municipal
Terex Finlay .........................38
Lux Rao ..............................43
VB Gadgil ...........................97
Corporation ........................50
Toshiba India .......................30
M Vivekanandan ..................78
Ved Prakash .........................56
NHAI ........................... 34, 97
Trimble Buildings ................83
Manish Garg ........................86
Venkatesh Gopalkrishnan ...108
Noida Metro Rail
Udaipur Nagar Nigam .........60
Manoj Pandey....................142
Vijay Sharma .......................97
Corporation ........................36
UltraTech Cement ...............40
Mayur Shah .......................106
VN Kalam ...........................58
Construction World April 2016
Pankaj Kapoor ...................120
Behind every touch of a button Press the button for a floor, the doors open, and you’re there. Behind this ordinary journey are
Installation
Mitsubishi Electric installation engineers and their uncompromising commitment to precision and quality. Take for example, the guide rail that ensures the smooth and safe travel of the elevator car. The rail sections are connected and surveyed onsite to ensure alignment to exacting tolerances: less than a few millimeters per 300 meters. The tighter our tolerances are,
MITSUBISHI ELECTRIC ELEVATORS
the fewer vibrations, and the more comfortable your ride. Today and everyday, we are working behind the scenes to guarantee the reliability of Mitsubishi Electric elevators around the world,
Maintenance
Development
utilizing our expertise in development, installation and maintenance.
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EDITOR’S DESK
EDITOR’S DESK
Construction World
City Lights
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A
ccording to a World Bank report titled Dealing with Construction Permits, India is languishing at the 183rd position in this parameter, rubbing shoulders with the likes of Afghanistan (185). But, finally, the government has attacked this in right earnest. March has been a watershed month of sorts in the history of construction in India. The Budget announcement on allowing 100-per-cent deduction for profits to projects building homes up to 30 sq m in the four metros and 60 sq m in other cities is likely to spur supply of affordable homes. This was followed by the passing of the Real-Estate Regulatory Act (RERA), which has created a robust structure for protecting homebuyers. And recently, the Model Building Bye Laws 2016 were proposed – these provide a structural framework for a single-window, integrated, building plan approval process and set the maximum time limit for all kind of building approvals at 30 days, after which the approval can be considered ‘deemed’. All these measures have come at a time when the sector is reeling under debt stress and low demand but they form firm pillars for the sector to stand upon during better times. The next wave of the economic boom can be well sustained for a longer duration with systems in place that provide checks and balances. Our cities are in definite need for resuscitation. As per a 21-city survey conducted by Janaagraha, our cities continue to score poorly in comparison with the likes of London and New York. The lowest-ranked city among all is surprisingly Chandigarh, having the dubious distinction of coming last among 21 for the second time in a row. Further, our cities are grossly underprepared to deliver a high quality of life that is sustainable in the long term. This is particularly worrisome given the rapid pace of urbanisation in India and the huge backlog in public service delivery. Cities face governance challenges on multiple levels. Most fail to disclose audited accounts. They have no evaluation mechanism for the plans implemented by the municipal corporations. They have extremely weak finances and no city among the 21 reviewed has an effective system in place to monitor and prevent violations or mechanisms to undertake punitive or corrective action. City leaders don’t really have the power to formulate a long-term vision or the length of tenure to execute the same. How is it possible for Bengaluru and Jaipur to become smart cities unless they provide some stability to their commissioners? Both cities have had six commissioners in five years while Raipur has had eight! The Swachh Bharat mission has also ranked the ‘cleanest cities’ in India where Mysore, Chandigarh and Tiruchirapalli have secured the top three honours. Now, the smart cities challenge launched by the Ministry of Urban Development has set a race among cities and their leaders, including chief ministers, in urban renewal. Although there is a long way to go, this is now being taken up on a war footing. So far all deadlines for the smart cities mission have been maintained and the programme appears to be moving forward to prepare India to rebuild its growth engines: Its cities. Read this issue’s cover story for a ringside view of the plans for the cities of tomorrow….
Follow me on twitter @PratapPadode
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Published by: ASAPP Info Global Services Pvt Ltd, A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai-400 015. Tel: 022-2419 3000. Fax: 022-2417 5734. Branch Offices Delhi: Tel: 011-4656 1818. Bengaluru: Tel: 080-4095 3423/4095 9611. Pune: Tel: 020-2605 2987/6602 5990. Chennai: Tel: 044-4299 1234. Kolkata: Tel: 033-6450 0465/6456 0011. Ahmedabad: Tel: 079-2646 4890/2656 0872. Vadodara: Mobile: 098242 64071/70434 94071. Representative Offices • Austria, Switzerland & Germany Gunter Schneider - info@gsm-international.eu *Responsible for selection of news under the PRB Act. All rights reserved. While all efforts are made to ensure that the information published is correct, Construction World holds no responsibility for any unlikely errors that might have occurred. All rights reserved. While all efforts are made to ensure that the information published is correct, Construction World holds no responsibility for any unlikely errors that might occur. Printed and Published by Tarun Pal on behalf ASAPP Info Global Services Pvt Ltd, printed at Indigo Press (India) Pvt Ltd, Plot No 1C/716, Off Dadoji Konddeo Cross Road, Between Sussex and Retiwala Ind. Estate, Byculla (East), Mumbai-400 027 and Published from A-303, Navbharat Estates, Zakaria Bunder Road, Sewri (West), Mumbai-400 015. Editor : Pratap Vijay Padode. CONSTRUCTION WORLD is a member of INS. Subject to Mumbai jurisdiction only. The information on products and projects on offer is being provided for the reference of readers. However, readers are cautioned to make inquiries and take their decisions on purchase or investment after consulting experts on the subject. CONSTRUCTION WORLD holds no responsibility for any decision taken by readers on the basis of information provided herein.
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Construction World April 2016
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LETTERS WELL-CRAFTED The story on Doors and Windows, featured in the March 2016 edition, was a comprehensive one. Wellcrafted with perspectives not only limited to uPVC window and door manufacturers, it also included viewpoints of prestigious builders, architects, glass manufacturers and aluminum window and door fabricators. The points framed were apt in gaining the most essential insights for the story. Also, the segmentwise preference indicated for residential, commercial, high-rises, hotels and hospitals was a feather on the hat! - Satya Priya, ECUBE WINDOORS
APPEALING INFO CW, as is evident in its name, focuses on various information and updates on the issue of construction. The style of bringing high-end personalities’ bytes on the situation and scenario of construction along with its positive and negative impacts are remarkable. The February 2016 edition on “Managing Construction Waste� is informative and wellstructured. The cover story of the edition on “Waste to
OPINION POLL RESULT
22% 78%
Yes: 78%
No: 22%
February
2016 •
Vol.18
No.5
Can’t Say: 0%
The Real-Estate Regulatory Bill has received a nod from both Houses. Does the bill, along with protecting consumer interest, also recognise the importance of faster approvals for developers to prevent project delays? Yes, No, Not Completely
Resource� gives an in-depth on the C&D waste and its proper utilisation. The research work done for this article is appreciated. I congratulate the team for being able to collate the information and present it in such an appealing manner. - Rambha Tripathy, Senior Manager, Corporate Communication, Development Alternatives
ENGAGING FOR THE READER The CW March edition was a complete package, with stories ranging from
e!
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ONE-STOP SHOP
As reported, Union Transport Minister Nitin Gadkari is hopeful of completing road projects worth Rs 7 lakh crore by 2019. Considering the current scenario of the road’s sector, is this target achievable?
Exclusiv
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0DUFK ‡
9RO 1R
Best Perf orm Analysis: Review: Con ance Union Real Esta struction, te and mor Budget 201 e...93 6 Elevators & Escalato pg...78 rs...82 Contract Mining...62 150 + 20 page Interviews: s Special Sup plement Solapur Mun icipal Corporat ion; GR Infraproj ects...98,74
, ahmanyan ent, SN Subr Presid MD & Deputy L&T...62
‘Contract Mining’ to the cover story on the ‘Roads sector’ to a detailed analysis of the ‘Budget Impact on the overall construction and building sectors’. The edition widely covered areas from interviews of stalwarts in the industry to glimpses on multiple segments like ‘Data Centre Dyamics’, updates of the industry, tenders oated as well as contracts awarded. The edition was comprehensive and engaging for the reader. The entire gamut of the construction industry at one place, and the attractive layout made the magazine a pleasure to read. - Neha Saraf, Kolkata
CW has proved to be the one-stop shop for PR professionals who follow the infrastructure, construction, and engineering industries, etc. I have been reading this magazine for the past ďŹ ve years. The articles have always been in-depth and interesting. I look forward to reading the column on ‘HRD’, which covers HR practices that companies are following. The knowledge provided is like oxygen for a PR individual. CW keeps me updated and helps me improve my knowledge. - Subir Nandi, Assistant Manager, Concept PR
LEARNING NEW THINGS The layout in CW is designed in a way that you get to know in-depth news on the construction, real estate and infrastructure sectors of India. The cover stories of each edition are unique and one gets exposure to a lot of new things. However, I would like the magazine to show little more focus on the infrastructure and real estate development in the Eastern India region. - Shiladitya Chaudhury, Managing Director, Sagittarius Communications
Smart Soc
iety
Awarded: Pro
jects worth ove
ge...92 i Challen Chenna Ports & ities in Opportunstruction...96 Port Con & in Roads ism Optim ...72 Highways
Target: 30 km r `1.5 lak `7 lakh crore-per day by March-end andh crore; worth projects by FY19.
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- Nitin Gadk Road Tran ari, Highways sport and Minister
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14
Construction World April 2016
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NEWS & EVENTS At a glimpse... •
VitrA has associated with the Institution of Indian Interior Designers NATCON, Indore, to take the designs culture to the masses.
Appointments • MANN+HUMMEL Group reorganises its management board and appoints Kai Knickmann as General ManagerAutomotive OEM business unit, Josef Parzhuber as General Manager-Automotive Aftermarket business unit, and Steffen Schneider as General Manager-Industrial Filtration business unit.
►
The US-India Business Council led a mission on exploring opportunities for cooperation and expanding bilateral trade in the areas of clean technology, clean energy and infrastructure across New Delhi, Ahmedabad and Hyderabad.
•
Blue Star has plans to integrate its air-conditioners with air purifiers in collaboration with companies based in China and the US.
•
Skipper Ltd hosted ‘Mega Plumber Meets’ and saw participation from over 2,500 plumbers at 15 different locations pan India, to mark the ‘World Plumbing Day’.
►
•
World Water Day 2016 •
Safe Water Network and Honeywell India announced the launch of the 25th Honeywellfunded Ual safe water station in Telangana to serve about 94,000 people with safe drinking water.
•
Gangavaram Pon ltd conducted awareness programmes for its employees on sustainable water harvesting techniques.
•
Cairn india initiated the ‘Jeevan Amrit’ pilot project in collaboration with the Public Health and Engineering Department, Government of Rajasthan, to ensure clean and safe drinking water in Barmer and Jalore.
• AccorHotels ► appoints Puneet Dhawan as Vice President of Operations Economy and Midscale for the Gulf and Levant.
Awards bagged •
Mumbai International Airport Ltd project is the first organisation to be inducted into the Hall of Fame at ACREX 2016.
•
HCC receives Vishwakarma Award for the sixth consecutive year by CIDC and the Government of India.
• Honeywell Automation India appoints Suresh Senapaty as Additional Director (Non-Executive, Independent), and Chairman of its Board of Directors.
►
Trimble has introduced a new software version of its BIM Tekla Structures 2016, which improves construction project workflows through better usability, efficient drawing production and enhanced collaboration.
• Ravi Kirpalani joins thyssenkrupp India and will take charge as CEO of its Regional Headquarters effective July 1, 2016.
The upcoming Dholera Industrial City in Gujarat has been awarded the India Geospatial Excellence Award 2016, in recognition of the city’s potential to become a global manufacturing and trading hub.
M3M Group signed three MoUs with the Government of Haryana, accumulating to Rs 45,365 crore at the ‘Happening Haryana Global Investors Summit’ in Gurgaon.
16
Construction World April 2016
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INTERNATIONAL
PROJECT UPDATE ADANI ENTERPRISES’ AUSTRALIAN PROJECT APPROVED The Australian Government has approved the A$10 bn ($7.45 bn) project by Adani Enterprises in the undeveloped Galilee Basin. The project, delayed by challenges from environmental campaigners, was cleared by the Queensland court in December 2015. However, environmentalists are still opposing it on numerous fronts and lobbying banks not to
provide loans. They cite potential damage from port dredging, shipping and climate change stoked by coal from the mine. CONTACT: ADANI ENTERPRISES. TEL: 079-25557440. WEBSITE: WWW.ADANI.COM
SPANISH ACQUISITION FOR MINDA INDUSTRIES Minda Industries has acquired the global lighting business of Spain-based Rinder Group for €20 mn. The acquisition includes 100 per cent
German project for ABB ABB has bagged a Rs 941 crore order from transmission system operators Energinet.dk in Denmark and 50Hertz Transmission in Germany to design, supply and install an high voltage direct current converter station in Bentwisch, Northern Germany. HVDC converter station will link Danish and German power grids and enhance energy security.
NATIONAL
CONTACT: ABB INDIA. TEL: (0) 96243 60600. WEBSITE: WWW.ABB.COM
JICA, IIFCL FINANCE PPP PROJECTS Japan International Cooperation Agency (JICA) inked a pact with IIFCL to provide a ¥50 bn Japanese (about Rs 2,866 crore) assistance for PPP infrastructure projects. The assistance will promote PPP-based infrastructure development in non-fossil power projects through long-term finance to private, public enterprises and banks to lend to private or public enterprises for investment to viable infrastructure projects. CONTACT: IIFCL. WEBSITE: WWW.IIFCL.CO.IN
POLICY ON ENVIRONMENTAL SAFEGUARDS SOON The government will soon introduce a policy with regard to environmental safeguards for building and construction projects. The area
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limit for exemption from environmental approval could be increased to 50,000 sq m from the present 20,000 sq m. Many building and construction projects used to wait for
equity in Rinder India and Light Systems, and Technical Centre in Spain besides 50 per cent equity in Rinder Riducu, Colombia. The acquisition will give Minda access to Rinder India’s three facilities across India. CONTACT: MINDA INDUSTRIES. TEL: 0120-478 7100. WEBSITE: WWW.MINDA.CO.IN
ONGC TO BOOST OUTPUT ONGC, to boost output from ageing oil and gas fields, will form partnerships with overseas oilfield and service providers. According to the terms of the tie-up being discussed, firms such as Schlumberger NV and Halliburton Co will invest capital and share technical expertise in the company’s hydrocarbon fields. If the foreign partners are able to increase output, they will be paid a
three to four years for environmental clearances. As reported, according to Environment and Forests Minister Prakash Javadekar, the conditions for environmental
Coal mines to PSUs for commercial mining Taking forward its decision to open up the coal sector for commercial mining, the government will allot 16 blocks to PSUs for production and sale of dry fuel. Of the 16 blocks, five of these mines are located in Madhya Pradesh, three in Telangana, two blocks each in Chhattisgarh, Jharkhand and Maharashtra, and one each in Odisha and West Bengal. Of these, eight blocks have been identified for the host states, while the remaining are for other states.
QUICK PICKS • Oberoi Group inks management contract with Bengaluru-based Subramanya Construction & Development Company to operate a luxury resort in Maldives. • Kridhan Infra enters into share purchase agreement with Singapore’s leading EPC company SWEE Hong, for acquisition of 42 per cent stake in the company.
pre-determined fee on each additional barrel of crude oil produced, making it the first time India has adopted this kind of agreement. CONTACT: ONGC. WEBSITE: WWW.ONGCINDIA.COM
QUICK PICKS • Modulex to set up four factories in India over the next five years. • Coal India to double its production to 1 bn tonne by 2020. • Asian Development Bank to increase its lending to the country to $10-12 bn for a three-year period till 2018. • Coal India supplies 370.80 mn tonne of fuel to the power sector during April-February this fiscal, higher by 6.4 per cent in the same period last year. • Indian finance ministry subsidiary recommends import duties on some steel products until March 2018, to support local steel industry and protect mills from cheaper imports. f d have h been b safeguards standardised and a policy decision has been taken.
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PROJECT UPDATE ANDHRA PRADESH FREE SAND TO BOOST CONSTRUCTION SECTOR With the state government planning to provide free sand, builders and customers are upbeat about reduced construction costs in the coming days. According to realty sources, the cost of sand is only 5 per cent, with indirect costs further reducing prices of both apartments and other construction projects by the state government.
completed while the remaining work is in progress. Under the chief minister village road programme, the state government had set a target to construct 1,154 roads measuring over 3,000 km.
GUJARAT MAHINDRA LIFESPACE ARM TO DEVELOP 300-ACRE INDUSTRIAL PARK Mahindra World City Developers is planning to build a 300-acre industrial park in the state. Although the project will majorly be a manufacturing hub, it will also contain homes for medium and junior management workers. The company is also exploring other options in Western India for such industrial parks. It has recently formed a JV with Sumitomo Corporation to set up an industrial park in the NH5 corridor.
STATE TO BUILD 4 LAKH HOUSES The state government plans to introduce highly subsidised housing scheme, under which beneficiaries will get a two-bed room flat for Rs 3.5 lakh. The government will spend Rs 5.5 lakh per flat, but will collect only Rs 3.5 lakh from each of the allottees. The CONTACT: MAHINDRA WORLD proposed housing programme CITY DEVELOPERS. will cost the exchequer WEBSITE: Rs 16,000 crore. The apartment complexes will be developed on WWW.MAHINDRAWORLDCITY.COM government land in all towns and major villages. The government has proposed to build about four lakh houses including two lakh houses in urban areas. CONTACT: GOVERNMENT OF ANDHRA PRADESH. WEBSITE: WWW.APONLINE.GOV.IN
CHHATTISGARH MINERAL FUND POLICY TO FETCH ADDITIONAL `900 CR Mineral-rich Chhattisgarh will get an additional revenue from minerals to the tune of over Rs 900 crore annually that will be used for local area development. Of the 1,991 km roads to be constructed in the Naxal-infested pockets, work on 1,020 km has already been
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RESURVEY FOR GUJARAT PLANT Gujarat Government has allotted 1,407 hectare to Gujarat Power Corporation to set up a 750 MW ultra mega solar plant in the Banaskantha district. However, local villagers have pointed out that about 68 hectare of this is grass land and a re-survey is required for its adjustment. CONTACT: GUJARAT POWER CORPORATION. TEL: 079-2325 1255-60. WEBSITE: WWW.GPCL.GUJARAT.GOV.IN
HARYANA EMBASSY INDUSTRIAL PARKS SIGNS MOU Embassy Industrial Parks has signed an MoU with the state government for the development of the industrial parks around Gurgaon. The project, with a projected investment of Rs 1,910 crore, will have an employment potential of 4,000. CONTACT: EMBASSY INDUSTRIAL PARKS. TEL: 080-4179 9999. WEBSITE: WWW.EMBASSYINDIA.COM
JHARKHAND GREEN PANEL DEFERS ADANI PROJECT An environment ministry
Sajjan Jindal-led JSW Energy set to acquire 1,000 MW power plant for `6,000 cr JSW Energy is set to acquire a 1,000 MW Jindal Power plant for about Rs 6,000 crore. This would be the second major acquisition by JSW Energy that has an installed capacity of 4,531 MW. In 2015, it had acquired two hydro power plants with an installed capacity 1,391 MW from Jaiprakash Power Ventures (JPVL) for Rs 9,275 crore. It has also signed a non-binding agreement with JPVL for Bina Power, which has an installed capacity of 500 MW of thermal power, for Rs 3,500 crore.
QUICK PICKS • Odisha Government seeks final approval for the proposed National Investment and Manufacturing Zone (NIMZ) to be developed at `10,000 crore at Kalinga Nagar in Jajpur district. • Tata Steel gets ready to commence ‘integrated, commercial production’ of the first phase of the 3 mn tonne steel plant in Odisha by September and is keen to keep the project cost below the projected `25,000 crore. • Odisha Government, after successfully auctioning one iron ore block, to put three more iron ore mines under the hammer in next six months. • Government to auction a total of 42 blocks in the second phase of mineral auctions during 2016-17. • Bhushan Steel receives environment clearance for its `3,000 crore project to set up a pellet unit with a production capacity of 7 mtpa in Odisha.
panel has deferred green clearance to Adani Power’s 1,600 MW thermal project in Jharkhand. Adani Power (Jharkhand) (APJL), a subsidiary of Adani Power (APL) is planning to set up 2 x 800 MW Paraspani thermal power project in Godda district. APJL had last year signed an MoU with the Bangladesh Power Development Board (BPDB), to develop a thermal power plant on build-ownoperate basis in India and supply the entire power generated to BPDB through a dedicated transmission line. CONTACT: ADANI ENTERPRISES. TEL: 079-25557440. WEBSITE: WWW.ADANI.COM
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PROJECT UPDATE iron ore prices by 17 per cent. NINL, in which MMTC holds 49.9 per cent stake, PAVAGADA SOLAR PARK TO BE is the largest producer and OPERATIONAL IN TWO YEARS exporter of saleable pig iron Work on the state in the country. The NINL government’s ambitious solar plant at Kalinganagar in park project at Pavagada in Jajpur district has a production Tumakuru district will be capacity of 855,000 tonne of completed within two years. pig iron per annum. This project entailed to generate CONTACT: NEELACHAL ISPAT NIGAM. TEL: 0674-254 0214. 1,500 MW solar power will WEBSITE: WWW.NINL.IN come up on 12,000 acre. The project-related works STATE BAGS BAITARANI WEST will commence shortly as Coal Ministry has allocated the tendering process had the Baitarani West coal block to been completed. Odisha for commercial mining. This is one of the 16 coal blocks earmarked for state PSUs by the ministry under TATA MOTORS CO TO MARKET Coal Mines (Special Provisions) INDUSTRIAL ROBOT Act, 2015. The state government Tata Motors arm, TAL had sought the Baitarani coal Manufacturing Solutions, will block for OTPCL to cater to its launch its industrial articulated 2,400 MW coal-fired power robot named BRABO, priced plant in the Dhenkanal district. CONTACT: MINISTRY OF COAL. between Rs 4 lakh and Rs 10 lakh in the Indian market. WEBSITE: WWW.COAL.NIC.IN The company is eyeing the SAARC markets for its customisable indigenously developed robot that can handle payloads of 2 kg, 5 kg and 10 kg, targeting medium and small enterprises. TAL’s present production capacity for the robot is around 3,000 and can be scaled up to 10,000 per year quickly.
KARNATAKA
MAHARASHTRA
CONTACT: TAL MANUFACTURING SOLUTIONS. TEL: 020-6613 5509. WEBSITE: WWW.TAL.CO.IN
ODISHA NEELACHAL ISPAT TO HIKE PIG IRON PRICES MMTC promoted Neelachal Ispat Nigam (NINL) is planning to hike prices of pig iron in the range of Rs 300-500 a tonne on the back of a record spike in global
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RAJASTHAN STATE URGES CENTRE TO PULL BACK MAT ON SEZ The state government has requested the Centre to withdraw minimum alternate tax and dividend distribution tax levied on Special Economic Zone (SEZ) as several private SEZ developments withdrew from setting up SEZ and many of them got their projects denotified.Therefore, the state government has requested the centre to withdraw these taxes. BHEL BAGS `5,600 CR ORDER State-run power equipment maker BHEL has bagged an order worth Rs 5,600 crore for 1,600 MW power plant from Tamil Nadu Generation and Distribution Corporation (TANGEDCO). The company has bagged this major order for the coal-based power project with supercritical parameters,
Apollo Tyres to invest `4,000 cr in Chennai plant in FY17 Apollo Tyres will invest as much as Rs 4,000 crore in the financial year to double capacity at its manufacturing facility in Chennai and bring on stream a new unit in Hungary. While capacity at Chennai will be doubled to 12,000 tyres a day to cater largely to the domestic market, Apollo Tyres will scale up business in Europe and in the US once its Hungary facility comes on stream in January 2017. The company is working towards building up its distribution and sales networks in the US. CONTACT: APOLLO TYRES. WEBSITE: WWW.APOLLOTYRES.COM
QUICK PICKS • Mozambique LNG, Africa’s largest energy development group, in talks with Indian companies to supply Liquefied Natural Gas to the country. • Border Roads Organisation fails to complete at least 70 border projects along the Line of Actual Control in Jammu and Kashmir. • Andhra Pradesh Industrial Infrastructure Corporation receives environmental clearance from MOEF for a multi-product special economic zone at Naidupeta in Nellore district. involving two units of India’s highest rating of 800 MW. The project is slated to be commissioned by September 2019 and the power generated from this 1,600 MW project will provide easy access to electricity to the people in the state. CONTACT: BHEL. WEBSITE: WWW.BHEL.COM
TAMIL NADU L&T SELLS FOUNDRY UNIT Larsen & Toubro (L&T) has decided to sell its casting manufacturing unit at Coimbatore to Bradken for Rs 163 crore. Revenue of the foundry unit for the fiscal 2015 was Rs 122 crore and the percentage contribution by revenue and net worth is less than 1 per cent. The sale of this business is in line with the company’s strategic plan to exit non-core business and rationalise its portfolio. The company continues to maintain its foundries at Kansabahal, Odisha, and L&T Special Steels and heavy Forgings at Hazira in Gujarat.
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Project Value: Above `2,500 crore
PROJECT VALUE Sl. No.
Company
Project details
Contacts
1
Ministry of Power
Plans to auction three projects – Cheyyur in Tamil Nadu, Bedabahal in Odisha and Tilaiya in Jharkhand. Revised bidding documents. The inter-ministerial consultations on preparation for revised bidding documents will be sent for the Cabinet nod.
80,000
Anoop Singh Bisht, Under Secretary, Room No. 26, Shram Shakti Bhavan, Rafi Marg, New Delhi-110 001. Tel: 011-2376 6236.
2
Indian Oil Corporation (IOC)
Setting up 15 mtpa greenfield refinery at Paradip. The refinery will have, apart from a crude and vacuum distillation unit, a hydrocracking unit, a delayed coker unit and other secondary processing facilities. This will be the most modern refinery in India with a nil-residue production, and the products would meet stringent specifications. Indian Oil has taken over 3,344 acre for the project and necessary infrastructure development jobs prior to setting up of the main refinery are in progress. The commissioning is targeted in 2016.
34,555
SK De, General Manager (Engineer Services Inspection and Projects), PO Jhimani, Via Kujang, Jagatsinghpur, Odisha-754 141. Tel: 06722-252 039, 252 001.
3
Ministry of Plans to set up a greenfield petrochemical complex in Chemicals Andhra Pradesh. HPCL and GAIL will construct this complex. and Fertilizers
25,000
Avinash Joshi, Joint Secretary Petrochemicals, 344, A-Wing, 3rd floor, Shastri Bhawan, New Delhi-110 001. Tel: 011-2378 2266.
4
Hindustan Petroleum Corp Ltd (HPCL)
Plans to expand the capacity of its refinery at Visakhapatnam to 15 mtpa.
20,000
Rajeev Goel, Head (Corp Comm), Corporate Headquarters, Petroleum House, 17, Jamshedji Tata Road, Mumbai-400 020, Maharashtra. Tel: 022-2286 3900. E-mail: rajeevgoel@hpcl.in
5
Indian Oil Corporation (IOC)
Setting up a petrochemical complex at Paradip in Odisha. This complex will come up near the upcoming 15 mtpa greenfield refinery at Paradip.
20,000
SK De, General Manager (Engineer Services Inspection and Projects), PO Jhimani, Via Kujang, Jagatsinghpur, Odisha-754 141. Tel: 06722-252 039, 252 001.
6
Department of Energy/ Power, West Bengal
Plans to set up pumped storage system at Turga in Purulia district.
11,000
Dr AN Biswas, Special Secretary, Department of Power & NES, Bidyut Unnayan Bhaban, 5th Floor 3/C LA Block Sector-III, Bidhanagar, Kolkata-700 098, West Bengal. Tel: 033-2335 5646.
7
Nalco
Public sector company plans to set up a 1 million tonne capacity refinery at Damanjodi in Koraput district.
6,000
Anil Bhatt, DGM Corp Comm, Nalco Bhawan, P1, Nayapalli, Bhubaneswar-751 061, Odisha. Tel: 0674-230 0680, 230 067.
8
The Fertilizer Corporation of India Ltd
Plans to set up gas-based ammonia urea plant at FCIL’s Ramagundam fertiliser complex in Karimnagar. The project comprises a single stream urea plant with a production capacity of 3,850 metric tonne per day (MTPD) and ammonia plant with 2,200 MTPD capacity at the Ramagundam fertiliser Complex. Environmental clearance is in place. The work has not yet started.
5,465
KL Rao, Officer on Special Duty, A-14, 5th Floor, PDIL Bhawan, Sector 1, Gautam Budh Nagar, Noida-201 301, Uttar Pradesh. Tel: 0120-253 0023, 244 3920.
9
Amara Raja Group
The group has committed an investment of Rs 5,000 crore across business verticals such as auto, IT, energy, electronics and infrastructure in the state of Andhra Pradesh. The MoU was signed recently between the group and the state government.
5,000
Ramachandra Naidu Galla, Chairman, Corporate Operations Office, Terminal A 1-18/1/AMR/NR, Nanakramguda, Gachibowli, Hyderabad-500 032. Tel: 040-2313 9000.
Plans investment in extracting gas lying below coal seams (CBM) in three coal-bed methane blocks in eastern India. The company aims to drill over 350 wells in three blocks in Jharia, Bokaro and North Karanpur in Jharkhand.
3,500
Ved Prakash Mahawar, Director (Onshore), Jeevan Bharti, Tower-II, 124 Indira Chowk, New Delhi-110 001. Tel: 011-2331 4552.
2,600
Maxxis International-Taiwan, 8th floor, World Trade Building, 50, Sec 1, Shin-Sheng S Rd., Taipei, Taiwan. Tel: 0886-22393 7451.
10 Oil and Natural Corporation Ltd
11 Maxxis Group Taiwan-based company plans to set up a tyre manufacturing facility at Sanand in Gujarat. The unit will manufacture around 10,000 tyres per day for two-wheelers. Around 43 hectare is allotted to the company. The tyre unit is expected to become operational by 2016.
28
Budget (in ` crore)
Construction World April 2016
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SMART CITIES UPDATE MUMBAI TOPS SURVEY OF INDIA’S CITY-SYSTEMS Mumbai has topped the third Annual Survey of India’s City-Systems (ASICS), covering 21 cities across 18 states. The survey is a departure from recent city rankings, in that it evaluates the fundamental ability of a city’s institutions to deliver a better quality of life over the medium and long-term. Mumbai moved eight places from last year’s survey to take the top spot. Kolkata, last year’s topper, is in third position in this year’s listing. Thiruvananthapuram retains at the No. 2 spot. KANJURMARG WASTE-TOENERGY PLAN READY TO ROLL Mumbai’s degraded waste-to -energy project at Kanjurmarg will commence from April 2016. The project will be commissioned with the help of a Rs 4.5 crore Guascor engine from Spain. This will be the city’s first waste-to-energy project. The company has been awarded a 25-year contract for the landfill site.
TOSHIBA BAGS SEWERAGE PROJECT Toshiba Group’s water services company UEM India has bagged a Rs 132.6 crore contract to supply sewerage system in Sahibganj, Jharkhand. The contract from Jharkhand Urban Infrastructure Development Company, encompasses the construction of two sewage treatment plants, based on sequencing batch reactor technology, with 5 mn and 7 mn litre per day capacities, along with a 55 km sewerage network and seven pumping stations. CONTACT: TOSHIBA INDIA. TEL: 0124-499 6600. WEBSITE: WWW.TOSHIBA-INDIA.COM
WIPRO, SCHNEIDER ELECTRIC TO DEVELOP SMART CITY SOLUTIONS Wipro has formed a strategic partnership with Schneider Electric to develop convergent solutions for India’s smart cities.The two companies will collaborate to enable the delivery of cost-effective and
Gautam Budh Nagar allots `20,000 cr for infra The three development authorities of Gautam Budh Nagar – Noida, Greater Noida and Yamuna Expressway Industrial Development Authority (YEIDA) – tabled their annual budget adding up to Rs 20,127.73 crore for the financial year 2016-17. While Noida has kept aside Rs 500 crore for its metro corridors, another Rs 5,944 crore will be spent on development projects to enhance the city, besides village development.
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efficient citizen services to urban and rural communities. Both organisations will jointly develop solutions in the smart city space for India and global markets. CONTACT: WIPRO. TEL: 080-2844 0011. WEBSITE: WWW.WIPRO.COM
NOIDA AUTHORITY TO SPEND OVER `9,000 CR Noida Authority will spend over Rs 9,000 crore on development activities, including land acquisition, in the financial year 2016-17. An amount of Rs 50 crore will be spent on construction of district hospital at Sector 39. The other sectors of proposed expenditure include village development (Rs 192 crore), shahid samarak at Nal Garha (Rs 5 crore), Metro rail project (Rs 500 crore), and under-pass and flyovers (Rs 404 crore). The authority will also set up multi-level parking facilities at Sector 18, film city and Botanical Garden metro station. YAMUNA EXPRESSWAY PLANS TWO SMART CITIES The Yamuna Expressway authority will develop two hi-tech cities, an industrial township and a heritage city over 6,000 hectare adjacent to cities of Agra, Hathras and Mathura. As per the recent amendment in the second phase of YEIDA’s Master Plan-2031, the authority will develop two new urban townships comprising a 100 per cent dedicated industrial area and a heritage city to promote tourism. GOVT APPOINTS CEO OF THREE SMART CITIES IN MP The Madhya Pradesh Government has appointed Chandramauli Shukla, Rohan Saxena and Gajendra Singh Nagesh as CEOs of smart city
QUICK PICKS • BMC to now create 35 dry waste segregation centres in the city, which will separate dry waste that can be sent for recycling, thus reducing the load on dumping grounds. • Delhi Development Authority prepares an action plan to develop a biodiversity park at Tughlakabad. • In all, 34 cities of Madhya Pradesh chosen for AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme. • Udupi on the cusp of being declared an open defecation free (ODF) district by the Central Government under the Swachh Bharat Mission, which has identified the district as open defecation free. • Southern Bench of the National Green Tribunal (NGT) invokes the ‘polluter pays’ principle against MGR Group for operating without consent from the Tamil Nadu Pollution Control Board (TNPCB) for 26 years and discharging sewage into the Cooum. • MS University’s first green project on the verge of completion, as renovation work at the Faculty of Family and Community Sciences (FFCS) to convert it into a green campus is likely to end soon. Bhopal Indore and projects in Bhopal, Jabalpur, respectively. These three state service officers played a key role in developing the smart city proposals of their municipal corporations. The names have been finalised and sent to the Union Government for approval as CEO of special purpose vehicle (SPV) for these states. Madhya Pradesh has the most number of cities selected in the first phase of the Centre’s smart city project.
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POWER UPDATE FARAKKA PLANT STOPS POWER GENERATION NTPC’s 2,100 MW Farakka plant in West Bengal had to stop generation in its only running unit due to a deteriorating water crisis. Generation from all the six units had to be suspended in phases, as the non-availability of cooling water has endangered the life of critical equipment at the plant. CONTACT: NTPC. TEL: 011-2436 0100. WEBSITE: WWW.NTPC.CO.IN
DROUGHT-HIT AREAS TO GET `1,090 CR The state government has sanctioned over Rs 1,090 crore for upgrading the power infrastructure in drought-hit areas of the state.The major share of the Rs 1,090 crore will be allotted to Marathwada – Rs 550 crore, followed by the Nashik division – Rs 290 crore. Vidarbha’s will be alloted Rs 126 crore, of which Buldhana alone will get Rs 92 crore,
Gadchiroli Rs 23 crore and Nagpur Rs 7 crore. The scheme will be implemented from April 2016 in two stages. TWO MORE UNITS AT KAPS Nuclear Power Corporation of India plans to set up two 700 MW nuclear power units at the Kaiga Atomic Power Station (KAPS) in Uttara Kannada district. The plant currently provides 28 per cent power to Karnataka, as per its MoU with the state government. Once the two new units are operational, the state will get 50 per cent of the total power generated at the new towers. CONTACT: NPCIL. TEL: (0) 87540 00913. WEBSITE: WWW.NPCIL.NIC.IN
RELIANCE’S `1,300 CR INVESTMENT IN HARYANA Reliance Industries’ wholly-owned subsidiary Model Economic Township will develop an electronics manufacturing hub on
Power generation down in Gujarat Power Generation in Gujarat in the last two years has reduced to 44,256 mn units, and it had to buy 64,642 mn units worth Rs 17,101 crore from private players. The state bought this power from six private players at prices ranging from Rs 1.98 per unit to Rs 4.40 per unit. The state also has 995.84 MW of installed solar power capacity. Most of these solar power units are located in the Patan district, accounting for 401.71 MW. Surendranagar has 195.79 MW, and Kutch 130.17 MW.
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450 acre with an investment of Rs 500 crore at Jhajjar, Haryana. The hub will attract an investment of of Rs 1,000 crore from various facilities of companies such as Panasonic and Denso. CONTACT: RELIANCE INDUSTRIES. TEL: 022-2278 5000. WEBSITE: WWW.RIL.COM
DOUBLE WHAMMY FOR POWER SECTOR Kerala is facing the double whammy of mounting power consumption with the onset of summer and a sudden fall in power import from Karnataka, due to a crippling fire accident at its Sharavathi hydel power plant. Power from Sharavathi is transmitted to the state through a 400 kV line linking Mysore to Kasaragod. Since the Udumalpet-Madakathara line, also 400 kV, is loaded to capacity, the only way to mitigate the supply reduction is to draw power from the south for distribution in Malabar region.This has led to widespread drop in voltage in Malabar. KAKRAPAR ATOMIC POWER PLANT UNIT-I SHUT DOWN A unit of Nuclear Power Corporation of India’s atomic power plant at Kakrapar near Surat was shut down recently due to a small leak in the Primary Heat Transport System (PHT). Kakrapar Atomic Power Station (KAPS)-1 and 2 comprises two units of pressurised heavy water reactor of 220 MW each. The first reactor started commercial operations in May 1993, while the second unit in September 1995. The two units have generated cumulative electricity of 28,682 mn units, and 29,169 mn units, respectively.
QUICK PICKS • Environment ministry panel defers green clearance to Adani Power’s 1,600 MW thermal project in Jharkhand. • Union Coal Ministry grants permission to Sasan Power Ltd (SPL), wholly-owned subsidiary of Reliance Power, to produce coal upto 17.20 mtpa from its Moher & Moher Amlohri extension coal mines during FY2015-16. • As part of its plans to scale-up its power generation capacity by nearly 19 times to exceed 2,000 MW in the coming years, India Power Corporation looks forward to acquire another three-to-four stressed thermal plants in the near future. • A day after Delhi Transco warns that there could be power cuts during summers due to financial hardships affecting their working, the government steps-in and says that they would consider giving a loan for a bailout to the company and ensure Delhi would have uninterrupted power supply.
BIL WINS 30 MW SOLAR POWER PROJECT Bhageria Industries (BIL) has won a 30 MW solar power project from the Solar Energy Corporation of India. The company will install the plant at Ahmednagar district, Maharashtra. The completion of the project is expected in the first quarter of 2017. BIL will execute the project on a turnkey basis and operate and maintain it for 25 years. CONTACT: BHAGERIA INDUSTRIES. TEL: 0260-245 2366. WEBSITE: WWW.BHAGERIAGROUP.COM
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ZERO achievement in biogas generation scheme
The Jammu and Kashmir Government has shown zero achievement under the centrally sponsored scheme, National Biogas and Manure Management Programme (NBMMP), for the current fiscal. The Centre, under this programme, has offered a subsidy of Rs 7,000-11,000 for 1-6 cu m per bio gas plant. As many as 47.5 lakh biogas plants were installed across India upto March 31, 2014. During the year 2014-15, a target of setting up 110,000 biogas plants was also set.
GUJARAT PLANS ELECTRONICS HUB The Gujarat Government is planning to set up an electronics products manufacturing hub in the state in the next five years, through its newly announced Electronics Policy 2016. The government will provide financial support of Rs 25 crore to set up a 200 acre estate as a cluster. Further, it will provide Rs 100 crore to projects costing Rs 1,000 crore. CONTACT: GOVERNMENT OF GUJARAT. WEBSITE: WWW.GUJARATINDIA.COM
RAYS POWER PARTNERS WITH HILLIARD ENERGY Rays Power Infra has partnered with Hilliard Energy to jointly develop 150 MW solar power project, entailing an investment of Rs 870 crore. In the first phase, a 10 MW solar project is expected to be commissioned in April at Kalwakurthy in Telangana and the power generated will be sold to the state’s discoms at a fixed tariff of Rs 6.55 per unit for 25 years. CONTACT: RAYS POWER INFRA. MOBILE: (0) 95871 34999. WEBSITE: WWW.RAYSPOWERINFRA.CO
TATA POWER RENEWABLE TO BUY INDO RAMA ARM Tata Power Renewable Energy has signed an agreement with Indo Rama Renewables to acquire its subsidiary, Indo Rama Tata Power Renewable Energy Renewables Jath, which owns a 30 MW wind farm in the Sangli district of Maharashtra. The wind farm, which is fully operational since July 2013, has executed a long-term power purchase agreement with the Maharashtra State Electricity Distribution and is registered under the Generation-Based Incentive scheme of the Union Ministry of New & Renewable Energy. CONTACT: TATA POWER RENEWABLE ENERGY. MOBILE: 022-6665 8282. WEBSITE: WWW.TATAPOWER.COM
POWER SUPPLY FROM TRIPURA TO BANGLADESH The Central Government will inaugurate 100 MW power supply from Tripura’s Palatana project to Bangladesh. Under the project, an international gateway for broadband connectivity will be set up at
Agartala. The cost of the project is Rs 19.1 crore and annual operational expenditure is around Rs 7.2 crore. KTPP BRACES FOR COMMERCIAL OPERATIONS Telangana Genco is gearing up for the launch of commercial operations (COD) of Kakatiya Thermal Power Project. Overhauling of thermal power plants is usually done during the monsoon as hydel projects are busy generating power during this period. Because of insufficient rainfall last season, thermal projects continued power generation for a longer duration. PFS SANCTIONS ` 1,100-CRORE LOANS FOR THE POWER SECTOR PTC India Financial Services Ltd (PFS) has sanctioned loans of about Rs 1,100 crore to provide financial assistance to the power sector. These loans include four projects for the renewable sector and two for transmission of power. The company continues to expand and reinforce its presence in financing of clean energy projects and other emerging areas of the power sector. SUNGROW’S PROJECT SUCCESSFULLY CONNECTED TO GRID Sungrow has announced that one of its 1500V PV projects was successfully connected to grid, officially initiating the next phase of the project. With a total of 30 MW installed capacity, the project uses mixed systems combining both 1000V and 1500V. In comparision to the 1000V system, the 1500V system is capable of reducing nearly
QUICK PICKS • Jammu and Kashmir signs MoU with Union Ministry of Power to undertake series of reforms, and issue power bonds worth about `7,000 crore, which were equal to the power liabilities of the state. • Infrastructure firm NCC announces sale of 51 per cent stake in thermal power assets to Singapore global utilities services firm Sembcorp for `352 crore to monetise assets in non core diversifications. • The separation of the role of Central Transmission Utility (CTU) from state-owned Power Grid Corporation India Ltd (PGCIL) faces considerable delay, due to which its work is to be distributed among other subsidiaries of the Ministry of Power. • Telangana determines to achieve a generating capacity of 23,912 MW of power within the next three years. • Electronics goods manufacturer Havells India Ltd open to set up a production unit in Gujarat, if it finds a suitable opportunity for it. • Sembcorp-Gayatri venture to double the power generation capacity at its thermal power complex located at Krishnpatnam in Nellore district of Andhra Pradesh, entailing an outlay of `12,000 crore. 20 per cent of cable costs, leading to a lower cost of roughly $US 3 cents per watt. The increase to direct voltage at 1500V helps to improve efficiencies, by allowing more modules to be connected in every string and reducing the amount of cabling. This in turn, leads the system to be improved by more than 1 per cent. CONTACT: SUNGROW. E-MAIL: INDIA@SUNGROW.CC WEBSITE: EN.SUNGROWPOWER.COM
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AIRPORTS
TRANSPORT UPDATE NAVI MUMBAI INTERNATIONAL AIRPORT BY 2019 The proposed Navi Mumbai International Airport is expected to be operational in three years and the first flight is targeted to take off from there in 2019. In preparation for the new international airport, CIDCO will develop a smart city, NAINA, which comprises 30 towns around the airport. This will focus on work areas pertaining to education, medical, entertainment, logistics, commerce, science, industry, etc, and the government has already notified 600 sq km for it. GOA AIRPORT PROJECT FACES OPPOSITION Goa Vikas Party, a local NGO, and some farmers have joined hands to oppose the proposed greenfield airport at Mopa in North Goa. The first phase of the project will be completed by 2019. Total
construction cost of the airport is Rs 3,000 crore, while the government has spent Rs 5,500 crore in acquiring land. The project will have huge environmental impact on the state. NHAI AWAITS AAI NOD FOR NEW RAMP NHAI plans to demolish the ramp leading to the international airport in Thiruvananthapuram as it was a hurdle in the construction of a new one. The ramp will connect the airport with the KazhakoottamMukkola road. The airport will close the existing entry on the Chackai side of the international terminal as they will soon install a control terminal on that side. CONTACT: NHAI. TEL: 011-2507 4100. WEBSITE: WWW.NHAI.RG
JAMMU AIRPORT EXPANSION DELAYED The Jammu Airport expansion has been delayed for
Ahmedabad airport runway repair As the Sardar Vallabhbhai Patel International Airport (SVPIA) is set to take up repair works of its runway, tourist traffic in Gujarat (both in-bound and out-bound) is likely to be affected. This summer, the outbound traffic from Gujarat is expected to be down by 35 per cent, while the inbound traffic to the state might fall 20-25 per cent. SVPIA has undertaken partial re-carpeting and repair of its 3.5-km-long runway, and this will be extended fully from April 16.
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nearly four years. The proposed expansion envisages extending the existing runway’s length to 8,000 ft towards River Tawi. The existing 33 KV line shall be shifted within the next 60 days by the power development department, and the work to shift 22 towers of 132 kV line by constructing 28 towers on the new alignment shall be completed by March 31, 2017. The construction of an alternative road with three bridges will be completed by PWD by June. THREE RUNWAYS, BUT IGI AIRPORT LOW ON FLIGHT NUMBERS Despite being the only airport in India to have three runways, the Indira Gandhi International (IGI) airport is unable to offer airlines more slots in peak hours; the reason being the airport’s inability to handle the peak capacity of 7,579 flights per hour. Instead, IGI is limiting it to 68 flights, of which the share of commercial airlines is 62 with six slots being reserved for VVIP flights, charters, business and defence jets. TEST LANDING AT KANNUR AIRPORT SUCCESSFUL An IAF plane landed at the Kannur international airport as part of the trial landing exercise of Kerala’s newest airport. The airport will be fully ready by September to start commercial operations and receive international flights. The trial landing was hailed as a milestone for the North Malabar region. The Kannur airport, which is being built as a PPP initiative, is the fourth international airport in Kerala. The greenfield airport is expected to serve mainly the people of the North Malabar region who work in the Gulf countries.
QUICK PICKS • Proposed Navi Mumbai International Airport expected to be operational in three years. • Srinagar International Airport ready for operation of night flights; has to obtain clearances from the regulatory body, the Directorate General of Civil Aviation. • Indian airports again tops rankings in the Montreal-based Airports Council International service quality awards for 2015. • Bangalore International Airport certified GreenCo platinum for the Kempegowda International Airport, Bengaluru by CII in adherence to its GreenCo Rating System. • Rajiv Gandhi International Airport features among the world’s top three airports for the seventh year in a row in Airports Council International’s airport service quality ranking. • Delhi and Mumbai airports collect over `10,139 crore in user development and passenger fee till December 2015. • No core security activity being privatised at airports across the country and only non-core security being outsourced. • Germany’s Fraport looking to sell its entire stake in DIAL, a JVthat operates the Indira Gandhi International Airport in Delhi. • The Reddy’s, founder promoters of GVK, reach out to Sajjan Jindal led JSW Group with an offer to sell their controlling stakes in their crown jewels – the two airports in Mumbai and Bengaluru. • PMIC shortlists three companies to bid for around `16,000 crore Navi Mumbai International Airport. • India to invest over $120 bn in the development of airport infrastructure and aviation navigation services over the next decade.
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CONTACT: GOVERNMENT OF INDIA. WEBSITE: WWW.INDIA.GOV.IN
CENTRAL INDIA’S FIRST MULTI MODEL LOGISTIC PARK TO START SOON Central India’s first Multi Modal Logistics Park (MMLP) will be operational from August 2016 at Tehi, near Pithampur.
The MMLP is being set up by Container Corporation of India, on 90 acre. With this facility, now cargo can reach the port directly saving 70 per cent time and freight cost.The progress of setting up of MMLP at Tehi alongside the first station of Tehi on Indore-Dahod BG line is going on in full swing. CONTACT: CONTAINER CORPORATION OF INDIA. TEL: 020-2744 2090. WEBSITE: WWW.CONCORINDIA.COM
MOODY’S DOWNGRADES RATING FOR ADANI ABBOT POINT TERMINAL Global ratings agency Moody’s downgraded the rating for Adani Abbot Point Terminal secured bank credit facility to “Ba2” from “Baa3” on material volatility in cash flows.The outlook on the ratings is negative. The ratings downgrade reflects the increasing likelihood of material volatility in AAPT’s cash flows. This is due to the weakened position of AAPT’s
coal mining counterparties, the sole source of such cash flows. MASTER PLANNING TAKES OFF FOR PORTBASED ZONE AT DHAMRA The state government has initiated the task of preparing the master plan for developing a port based manufacturing zone at Dhamra. The cost of developing infrastructure for the proposed zone is pegged at Rs 3,100 crore. Of this, the government will contribute Rs 1,844 crore while the balance Rs 1,256 crore will be borne by the state government The zone is planned on 7,500 acre. GOVT PLANS FOUR NEW MAJOR PORT PROJECTS The government plans to set up four new major ports at Tamil Nadu, Maharashtra, West Bengal and Andhra Pradesh at an investment of Rs 32,000 crore under the PPP model. These projects are proposed to be taken up through a combination of public and private investment. In addition, outer harbour projects are proposed to be taken up in VOC port at Tuticorin at an expenditure of about Rs 11,000 crore and Paradip, Odisha, at Rs 5,000 crore approximately. CONTACT: GOVERNMENT OF INDIA. WEBSITE: WWW.INDIA.GOV.IN
Gujarat Pipavav outperforms market While the equity markets have been dull in the past three months, Gujarat Pipavav Port (GPPL), a subsidiary of international container terminals and port company APM Terminals, has gained 8 per cent. This is despite the company reporting weak results in the December 2015 quarter with total volumes falling 18 per cent to 3.3 mn tonne, revenues dropping 10 per cent to Rs 165 crore and higher deferred taxes pulling down profits by 40 per cent to Rs 53 crore, on a year-on-year basis. CONTACT: GUJARAT PIPAVAV PORT. TEL: 022-3001 1300.
`50,000 CR PORT PROJECTS IN PIPELINE The Shipping Ministry is overseeing implementation of 33 projects worth Rs 32,000 crore, while 45 projects with an investment of around Rs 18,414 crore are under operation. As on date, 33 PPP projects having estimated a cost of Rs 32,001.30 crore and 280.97 mn tonne capacity are under implementation stage. CONTACT: MINISTRY OF SHIPPING. WEBSITE: WWW.SHIPPING.NIC.IN
QUICK PICKS • Major ports in the country outpace the non-major ones in cargo growth during the first six months of the current fiscal. • Union Minister Nitin Gadkari: The state-owned Kandla port was more efficient than Adani’s Mundra port, both of which are in Gujarat. • Government approves Adani Group’s proposal for clubbing its three notified special economic zones in Gujarat to form a mega multi-product export zone spanning over 8,500 hectare. • Cabinet approves proposal to provide $150 mn credit from EXIM Bank for the development of Chabahar Port in Iran. • VO Chidambaranar Port at Thoothkudi, Tamil Nadu, crosses previous financial year’s volume of 32.41 mn tonne, 42 days ahead of the close of the current fiscal; government had set a cargo volume target of 36.80 mn tonne for FY2015-16.
PORTS
GOVT RELAXES CABOTAGE RULES FOR TRANSSHIPMENT PORTS Government has relaxed cabotage restrictions for ports which transship at least 50 per cent of the container handled by them. The relaxation will enable shipping lines to consolidate EXIM and empty containers at transshipment ports in India for onward transportation to destination ports by main shipping lines. With the cabotage relaxation, foreign vessels can also transport EXIM and empty containers from any port in India to transshipment port and vice versa, in addition to Indian vessels.
AP APPROVES PORT PROJECT WORTH $2 BN The state government in Andhra Pradesh has given in-principle approval to Krishnapatnam Port Company Ltd (KPCL) to set up a floating storage and regasification terminal (FSRT) on build, operate, share and transfer (BOST) basis entailing an investment worth $2 bn. The FSRT will be set up by Malaysian firms including IHSB (Isomeric Holdings Sdn Bhd) and LEPL Ventures Pvt Ltd consortium as they proposed to undertake regasification terminal in Krishnapatnam port through a private funded initiative mechanism to ensure adequate supply of gas to the power and the industrial sectors in the state.
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TRANSPORT UPDATE
RAILWAYS
Rlys offers e-catering at more stations The Railway Ministry plans to expand its e-catering services to more railway stations besides launching an accounting reforms pilot project at the Railway Coach Factory Kapurthala. The Railways also hopes to procure an additional 6 mn tonne of cement and fertiliser cargo next year after it starts allowing two point and mini-rake loading by using covered wagons. CONTACT: MINISTRY OF RAILWAYS. WEBSITE: WWW.INDIANRAILWAYS.GOV.IN
KATRA-DHARAM STRETCH OF USBRL WILL BE COMPLETED BY 2019 Konkan Railway Corporation has extended the deadline for the Katra Dharam stretch of the much awaited Udhampur-Srinagar-Baramulla rail link (USBRL) to 2019. The 35-km-long track, being constructed for the last 13 years, has been delayed by a year. Out of the total stretch, 28 km will have 14 tunnels, out of which 12 are ready and the remaining two will be completed in two years. Out of the estimated Rs 6,100 crore for the project so far, approximately Rs 2,900 crore has been utilised. CONTACT: KONKAN RAILWAY CORPORATION. TEL: 022-2757 2015-18. WEBSITE: WWW.KONKANRAILWAY.COM
SURAT, RAJKOT, BILASPUR STATIONS TOP CLEANLINESS SURVEY Surat and Rajkot in Gujarat and Bilaspur in Chhattisgarh have been adjudged the cleanest
railway stations in a perception survey covering 1.34 lakh passengers at 407 stations. As per the survey shared by IRCTC, 105 stations (25 per cent) are in ‘good’ and ‘very good’ category, 166 are in ‘fair’ category (40 per cent) and 136 (33.4 per cent) are in the last two categories of ‘average’ and ‘below average’. The survey was conducted on various parameters, including 22 on infrastructure and enabling provisions, 10 on processes and methodology and 15 on outcomes connected with cleanliness. APP-BASED BUS SERVICE BY NMRC Noida Metro Rail Corporation (NMRC) plans to introduce app-based buses in Noida and Greater Noida, which will allow users to know the number of seats and the closest bus available, among other things.NMRC has awarded the contract for this to Pune-based MP Group, an integrated bus service provider, to ply 105 buses in 13 routes between Noida and Greater Noida. CONTACT: NMRC. WEBSITE: NOIDAMETRORAIL.COM
RAILWAYS SIGNS MOU WITH ISRO The Ministry of Railways has signed an MoU with the Indian Space Research Organisation (ISRO) for
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developing Remote Sensing and geographic information system (GIS) at unmanned railway crossing and other uses. The MoU for effective use of space technology in Remote Sensing and GIS based governance application, aims to develop applications in the field of GIS for Remote Sensing at unmanned railway crossing including all geospatial solutions and customised software solutions for providing reliable, efficient and optimal solutions to Railways in it various areas of operation, thereby benefiting the rail user. RAILWAYS LAUNCH ONLINE ‘CLEAN MY COACH’ SERVICE The Railway Ministry launched an online ‘clean my coach’ service that allows travellers to get their compartments cleaned by sending an SMS or by using an app or a designated website.As per the scheme, for any cleaning requirement in the coach, passengers have to send an SMS on a mobile number 58888. Alternatively, passengers can use the android app or Web page www.cleanmycoach.com for logging the request. PAWAN HANS, IRCTC TIE UP TO PROMOTE HELI-TOURISM Pawan Hans (PHL) and Indian Railway Catering and Tourism Corporation (IRCTC) have signed an MoU to jointly promote heli-tourism for the national and international tourists. Under the MoU, Pawan Hans and IRCTC will collaborate on an exclusive basis to develop a marketing and operational plan to reach and provide helicopter service across the country.The two organisations will conduct a detailed review of
QUICK PICKS • No shift in Western Railway headquarters from Mumbai. • Railway Minister Suresh Prabhu withdraws the Railways (Amendment) Bill, 2014 in the Lok Sabha, aimed at providing clarity on ‘accidental falling’ by excluding cases of passengers’ negligence like travelling on rooftop. • Indian Railways appoints Ernst & Young as consultant to identify and leverage on advertising potential of its assets across India. • Railways form a new SPV to implement the Mumbai-Ahmedabad High Speed Bullet Train project. • Indian Railways to lay seven km of tracks every day in 2016-17 as against an average of 4.3 km per day in the last six years, as part of its capacity augmentation plan. • Union Government to not privatise Railways, though investments from private players to be welcomed for its development. • For 2016-17, railway budget approves seven flyovers and 36 underpasses in Gujarat. • Railways increase the outlay for railway electrification by almost 50 per cent and propose to electrify 2,000 km. • Railway Ministry sanctions 11 projects worth `30,000 crore for Central Railway in the Budget. • India’s first rail auto hub to soon come up in Walajabad, near Chennai, to help automobile manufacturers in the region transport vehicles to other parts of the country. • Nearly 1,000 railway stations across the country, developed as ‘Adarsh’ stations, having facilities such as toilets, drinking water, catering services and waiting rooms. the be bbest st way to iintroduce ntroduce d andd deliver world-class heli-tourism services into India.
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but two schedules of the Land Acquisition Act, 2013, have been included in the Act. CONTACT: GOVERNMENT OF KARNATAKA. WEBSITE: WWW.KARNATAKA.GOV.IN
QUICK PICKS • GDA approves the construction of a four-lane flyover at the Raj Nagar Extension Crossing, which is expected to reduce the massive traffic snarls on either sides of the stretch, especially during peak hours. • Maharastra sets an ambitious target to start work on the NagpurMumbai super-expressway in December this year; the first phase of this road is to be completed by 2019 and the project will be fully ready by December 2020. • Four-lane Joint Action Committee Dimapur By-Pass rescindes the MoU signed with National Highways & Infrastructure Development Corporation Ltd in March, in connection with four-lane Dimapur bypass for non-fulfillment on the part of the concerned authorities to satisfy landowners. • Kerala High Court restrains the Greater Cochin Development Authority (GCDA) and the Kochi Metro Rail from reducing the width of the KC Kannan Road in South Panampilly Nagar for beautification of the road. • Andhra Pradesh Government takes up development of 12,110 km of roads across the state for `12,402 crore. • Kochi Metro Rail work on the walkway project in Panampilly Nagar to not affect the width of the road. • Jammu and Kashmir Governor NN Vohra requests Union Minister Nitin Gadkari to declare Mughal Road as NH as it will provide a reliable all-weather alternative route to link Jammu with Srinagar.
Phase-II road work hits roadblock The development of the second phase of KaramanaKaliyikkavila road has hit a major roadblock as the government is yet to distribute the full compensation payment to the land owners who had ceded their lands. Although the government commissioned the first phase on March 1 in view of the election code of conduct and also gave compensation to a few land owners who come under the second phase starting from Pravachambalam to Kodinada in Balaramapuram, a large number of land owners have neither been informed nor notified regarding the payment.
bby NHAI has gained m momentum. As per the plan, the eexisting 7 m road will be w widened to 10 m for 66 km from P Perambalur to Thanjavur. All sstandard procedures, stipulated bby NHAI for toll roads, will be aapplied on PerambalurT Thanjavur road. It will have ttwo lanes with paved shoulder ssimilar to Tiruchi-Karur road. T The project is being executed aat Rs 157 crore. UP LAUNCHES BARRAGE U C CUM BRIDGE OVER KOSI The Uttar Pradesh G Government recently laid the f foundation of a barrage-cumb bridge over the Kosi river i Rampur district.The in b bridge, to be constructed at R 260 crore, will help Rs l lakhs of people in the R Rampur and Suar Tunda A Assembly constituencies. CONTACT: GOVERNMENT OF UTTAR PRADESH. WEBSITE: WWW.UP.GOV.IN
AKKULAM IMPASSE AFFECTS BYPASS WORK The four-laning of the NH-66 bypass has been affected by the protest over the excavation of earth from the Nirmiti Kendra premises at Akkulam. Since the launch of the agitation nearly a week ago, most activities undertaken along the 26.5 km stretch have come to a halt.This was mainly owing to the unavailability of the required earth for the formation of sub-grade, the basic foundation of the road. KARNATAKA ALLOCATES `2,400 CR FOR LAND ACQUISITION The Karnataka Government has announced an investment of Rs 2,400 crore for acquiring 1,230 acre for widening Bengaluru-Mysuru highway from the existing four-lane to six-lane. The land acquisition will be carried out under the National Highways Act, 1956,
BALL SET ROLLING ON WIDENING OF E-WAY EXITS, ROAD CAMS Huda has floated tenders for crucial projects such as installation of CCTV cameras and widening of exit and entry points on the Delhi-Gurgaon expressway under the integrated mobility plan (IMP).CCTV cameras needed to be installed at important intersections. Also, there is a need to shift trees and gensets standing in the middle of the roads, which cause accidents. It is also decided to remove the jersey barriers on a trial basis placed ahead of the Ambience Mall on the service lane of the NH-8 for 15 days on a trial basis to end traffic woes.
ROADWAYS
PERAMBALUR-THANJAVUR HIGHWAY BEING WIDENED The widening of road between Perambalur and Thanjavur via Ariyalur taken up
CONTACT: HUDA. WEBSITE: WWW.HUDA.GOV.IN
HC RESTRAINS GCDA, KMRL FROM REDUCING WIDTH OF ROAD The Kerala High Court restrained the Greater Cochin Development Authority (GCDA) and the Kochi Metro Rail (KMRL) from reducing the width of the KC Kannan Road in South Panampilly Nagar in any manner for beautification of the road. The road had a uniform width of 22 m originally. However, GCDA decided that the middle portion of the road, where it borders the Thevara-Perandoor canal, should be reduced to a width of 7 m so that the KMRL can take up beautification work on the stretch. CONTACT: GREATER COCHIN DEVELOPMENT AUTHORITY. WEBSITE: WWW.GCDAONLINE.COM
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EQUIPMENT UPDATE MANITOWOC LAUNCHES GROVE GMK4100L-1 TAXI CRANE The new GMK4100L-1 by Grove has a 60 m boom. The new 100 tonne crane is 2.55-m-wide and 0.5 m shorter. Its Tier-IV Final/Euromot 4 engine has a fuel saver function that reduces consumption. It also has the new Crane Control System (CCS), which includes Boom Configurator Mode, where the operator inputs the weight of the load, radius and height to be lifted to, and the system automatically configures the correct boom length. SKYJACK BROADENS ITS RANGE Skyjack unveiled three new products at The Rental Show. These include the SJIII 4740, the tallest DC electric scissor ever produced by the company with a maximum working height of
45.3 ft (13.8 m) and maximum weight capacity of 500 lbs (227 kg). The company also launched an articulating boom – the SJ30 ARJE, featuring a working height of 356 ft (10.82 m) and maximum weight capacity of 500 lbs. The third product launched by the company includes the SJ1056 TH telescopic handler – a newly redesigned 10,000 lb capacity machine that can take its full capacity load to 44 ft. CONTACT: SKYJACK. TEL: 1-800-275-9522. WEBSITE: WWW.SKYJACK.COM
ATLAS COPCO SHOWCASES NEW MACHINES Atlas Copco showcased new equipment designed for durability and efficiency, for its rental buyers at The Rental Show. The company displayed its new HiLight V5+ lighting tower, an LED model boasting
Sandvik Construction’s mobile communication Sandvik Construction Mobile Crushers and Screens held its annual global distributor conference in Ireland. Attended by over 120 people, representing 60 distributors from around 40 different countries, the conference featured a presentation on the new £1.6 mn (US$2.3 mn) Balleygawley powder coating facility investment, which is now fully operational.The distributors also visited local quarry to see some of the newest developments to the range being demonstrated. This included the latest addition to the scalper range, the QE241, and a QH331 Hydrocone crusher. CONTACT: SANDVIK. TEL: +46-8-456 1100. WEBSITE: WWW.CONSTRUCTION.SANDVIK.COM
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extended maintenance intervals and fuel-efficient operation. The tower is fitted with the company’s polyethylene HardHat canopy to make it durable in rugged applications and help it to retain its residual value. CONTACT: ATLAS COPCO. TEL: +43-1-760 120. WEBSITE: WWW.ATLASCOPCO.AT
NEW UNITS BY JLG JLG has introduced a number of new products, including a new rental-focused scissor lift, three low-level lifts and a compact crawler boom.The new 1932R electric scissor lift features 19 ft of platform height and 550 pounds total capacity. CONTACT: JLG INDUSTRIES. TEL: +717-485-5161. WEBSITE: WWW.JLG.COM
KONECRANES PARTNERS WITH IKUSI Konecranes has partnered with Ikusi Industrial Remote Controls for a radio remote control agreement extending to a three-model range. Ergonomically designed, the range comprises two slim line handheld units the 8000 500 and 8000 520 and the ‘belly’ Ikoncontrol 3 system. The co-branded product is quick, easy to operate, robust and flexible.
QUICK PICKS • Mammoet Nederland places order with Dutch crane manufacturer Spierings for five new mobile tower cranes; to receive the newest Spierings model, the SK 597-AT4 with a 48 m jib length. • Doosan Heavy Industries & Construction wins a US$ 294.35 mn contract to build three boilers for a thermal power plant in Bihar. • JCB produces special Platinum Edition 3CX backhoe loaders to mark its 70th birthday. • Canadian equipment rental and waste management company CERF expands with a deal to acquire oilfield equipment rental firm Zedcor Oilfield Rentals. • Planning of the proposed merger between Terex Corporation and Konecranes, paused. • UK-based rental company Vp invests £4.1 mn (€5.3 mn) acquiring tracked access platform rental specialist Higher Access. • Hitachi Sumitomo launches a 350 tonne capacity lattice boom crawler crane – the SCX3500-3 – designed to occupy a minimum amount of space on site. • A new Terex Finlay 883+ Spaleck powers through material at Tudor Griffiths Group as the company reports a surge in recycling rates at its headquarters in the UK. • Caterpillar Inc to stop making on-highway vocational trucks. • DSB Maschinenbau to launch a new Innocrush machine with a revised design at this year’s Bauma exhibition in Germany. • Kobelco Construction Machinery Europe to showcase its new SK400DLC-9 building demolition machine at Bauma.
MANITEX UPGRADES 30 TONNE BOOM TRUCK Manitex has added the 30112S to its TC line-up of truck mounted cranes. The TC300 incorporates a new cab capable of inclining up to 20o for optimal operator comfort. The machine features 30 tonne maximum lift capacity and main booming lifting height of 122 ft (37 m) and maximum tip height t ll d (ROC) outriggers ti of 167 ft (51 m) with the controlled optional two-piece 26 to 46 ft allow for quick one man setup (7.9 to 14 m) jib. Radio remote and operation.
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CEMENT UPDATE Birla Corporation’s brand building Birla Corporation is currently focusing on building a brand image for its cement range. The company is in the process of restructuring its marketing team apart from rationalising the marketing budget. In the coming financial year, the company will execute the 4.5 mtpa project at Wani in Maharashtra. CONTACT: BIRLA CORPORATION. TEL: 033-3057 3700. WEBSITE: WWW.BIRLACORPORATION.COM
CEMENT SECTOR’S OUTLOOK FOR FY17 STABLE: IND-RA The Indian cement sector has managed to bag ‘stable’ rating outlook for FY17 from India Ratings and Research. The rating agency in its latest report – FY17 Outlook: Cement Manufacturers – states that the sector outlook looks stable due to expected rise in the demand led by increased spending in construction and infrastructure by the Central Government.The demand for housing continues to be under pressure due to affordability issues and weak consumer sentiments.The rating agency has anticipated the capacity utilisation across India to decline to 69 per cent. UNION BUDGET 2016-17 TO REVIVE CEMENT INDUSTRY The focus of the Budget on giving a much-needed push to India’s infrastructure sector, especially roads, could improve the fortunes of the cement industry as well. The finance minister has also announced service tax exemption on construction of affordable houses up to 60 sq m; deduction for additional interest of Rs 50,000 per annum for loans up to Rs 35 lakh sanctioned in 2016-17 for first-time home buyers and exemption of excise duty on ready-mix concrete (RMC). The cement sector for quite some time had been
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asking for the removal of excise duty on ready-mix cement, which was 12.5 per cent. The industry, among its recommendations to the government, has also been asking for the initiatives to lower the tax burden on the industry. ULTRATECH-JAL’S $2.5 BN DEAL BY JUNE 2017 UltraTech Cement’s Rs 17,000 crore proposed acquisition of Jaiprakash Associates’ cement plants is expected to be completed by June 2017. The company had
acquired the debt-ridden JP Group’s cement plants for nearly Rs 17,000 crore (about $2.5 billion) recently, making it the biggest deal in the sector. The company is also looking at alternative routes in case the proposed amendments in Mines and Minerals (Development and Regulation) Act does not happen. CONTACT: ULTRATECH CEMENT. TEL: 022-6691 7800. WEBSITE: WWW.ULTRATECHCEMENT.COM
KKR MAURITIUS CEMENT INVESTMENTS’ STAKE IN DALMIA BHARAT KKR Mauritius Cement Investments has acquired 8.5 per cent stake in Dalmia Bharat. The company, in January, had announced signing of a pact with Dalmia to acquire the global private equity giant’s 15 per cent stake in its subsidiary Dalmia Cement Bharat for over Rs 1,218 crore in a cash and stock deal. The
QUICK PICKS • JSW Cement to set up a 3 mtpa clinkerisation plant at Chittapur in Karnataka at an estimated cost of `2,500 crore. • Andhra Cements commences the commercial production in the company’s cement plants – Durga Cement Works at Dachepalli, Guntur and Visakha Cement Works at Visakhapatnam. • Kerala Government accords sanction to Malabar Cements to set up a bulk cement handling unit at Kochi Port at an investment of `160 crore. • JSW Group to expand its cement production capacity to 30 mtpa by setting up grinding units closer to its steel plants. • Government of India decides to adopt cement instead of bitumen for the construction of all new road projects on the grounds that cement is more durable and cheaper to maintain than bitumen in the long run.
deal earned the private equity player a return of 2.4 times on its investment of Rs 500 crore that it made in September 2010.
Cost cuts, new capacity to help Prism Cement rebuild Prism Cement is adopting several measures to reduce debt. The company’s focus on cost rationalisation with a pick-up in cement and tiles demand and steps taken to reduce pressure on the tiles business are likely to enhance the stock’s valuation. Prism Cement earns half of its revenue from cement and readymade concrete business while the remaining is derived from ceramic tiles division. The cement capacity can be expanded to 7.6 mn tonne from the current 5.6 mn tonne at Satna, Madhya Pradesh, which is also one of the biggest limestone clusters in India. CONTACT: PRISM CEMENT. TEL: 040-2340 0218. WEBSITE: WWW.PRISMCEMENT.COM
CONTACT: DALMIA CEMENT BHARAT. TEL: 04329-235 144. WEBSITE: WWW.DALMIACEMENT.COM
KKR, ULTRATECH AND DALMIA TO BUY JAYPEE’S CEMENT BUSINESS KKR, UltraTech and Dalmia Bharat Cement are in the race to acquire the cement division of Jaiprakash Associates. Each of the non-binding bids has put an enterprise value in excess of Rs 18,000 crore on the 21 mtpa business.
COVER STORY
A
nd, the 20 selected cities are… This is the day, and India transitions to its next level in the smart game. From December 2014, when the smart cities mission was declared; and August 2015, where in the first stage, 100 smart cities – identified to be developed in the next five years – started preparing their smart cities proposals (SCP); to January 2016, where based on the SCP, 20 cities have now been announced for Phase-I of funding. And, with the next 23 cities expected to be announced this month, India’s smart journey is ready to begin.
Industry reactions The smart city mission, its momentum,
and the government’s identification of the first 20 cities have been perceived as a breakthrough, and worthy of praise. Philip Bane, Executive Director, Smart Cities Council, says, “The selection of these 20 cities is a significant move because these have been reviewed and analysed by the Centre as financeable and mature projects. At the city level, it is important to be clear about what it takes to deliver projects that are commercially financeable or bankable.” “The broad pillars are livability, workability and sustainability, adds Pratap Padode, Founder & Director, Smart Cities Council India. “Small impact in big cities will create curiosity; big impact in small cities will create
opportunity,” he avers. He emphasises that discovering the needs of the citizens and then plugging the gaps is the biggest national service and smart cities is one such mission. This is just the beginning of the process of building infrastructure, and Jagdish Salgaonkar, Senior Vice President, Civil & Infrastructure, AECOM, says, “MoUD’s 100 smart cities programme is geared primarily towards brownfield cities.” He speaks of other smart projects being built under the various industrial corridors such as the Delhi-Mumbai Industrial Corridor or the Mumbai-Bengaluru Economic Zone, and believes the new industrial townships will eventually be merged with the entire
With the announcement of the 20 cities to be developed as smart, CW records the industry’s reactions on business opportunities and unveils the tendering, budget and SPV details of the selected cities.
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ICT industry at large. “Cloud infrastructure, citizen services’ applications, a robust mobility platform, a network of sensors, aggregating platforms, connectivity, analytics, etc, form the bulwark of infrastructure on which smart cities are planned,” he says. “This is well complemented by core infrastructure that efficiently provides resources such as electricity, water, etc, along with solid waste management, to citizens.”
Business opportunities The industry, which has been waiting for the sector to pick up, is now watching and waiting for the right chance to offer its services. For its part, Essel Infra is ready to offer
an integrated solution. “We can actually help shape the city’s vision with local authorities and provide a number of facility distributions in water, power, etc,” affirms Perry. He adds that the company can help cities add to their own ideas in terms of what are more supportable and relevant, and how can one integrate other infrastructural upgrades over time. “While with AECOM, I had worked on Vizag and Ludhiana (among the selected 20), I look forward to contributing to other cities’ proposals in the near future.” With AECOM having prepared the proposals for Vizag and Ludhiana, Salgaonkar confirms, “The cities want us to continue helping them with the implementation of the downstream
Photo courtesy: AECOM.
smart city programme. He sees these bringing tremendous opportunities for everyone including the consulting engineering and contracting community, and the equipment manufacturers. Guy Perry, President-Cities & Strategy, Essel Infra, sees opportunity for businesses across sectors. He suggests, “We have to stay focused on real priorities, which is not about providing services or technology for the sake of it; the focus needs to be on enhancing people’s lives and sustaining one’s existence on the planet” by making cities smarter. Lux Rao, Country Leader-HPE Future Cities & CTO-Technology Services, Hewlett Packard Enterprise (HPE), sees a new set of prospects for the
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COVER STORY
This mission is strategic as it lays emphasis on area-based development.” - Pratap Padode, Founder & Director, SMART CITIES COUNCIL INDIA
ES YT B ICK • January 2016: 20 U Q cities announced for Phase-I of funding. • Around 12 smart city winners have already formed SPVs. • Pan-city projects in Phase-I worth $1.8 bn. • Area-based development in Phase-I worth $5.6 bn.
20 CITIES SELECTED IN STAGE 2 FOR PHASE 1
Ludhiana,161
New Delhi,292 Jaipur,359
Udaipur, 235
Guwahti,332 Bhopal, 469 Jabalpur,586
Indore,747 Ahmedabad,352 Surat,400 Pune,363
Bhuvneshwar, 698 Solapur,346
Kakinada, 307 Vishakapatnam,246
Belgavi,544 Davengere, 201
India Readiness Guide In early February, Smart Cities Council India launched the India Readiness Guide to help cities plan their blueprint better. Philip Bane, Executive Director, Smart Cities Council, says, “The first thing the guide shows is that success is possible. One has to raise the level of awareness, indicate the problem – congested traffic, polluted air, unclean water, poor management of waste – and then put forth a solution that is financeable and can deliver results. That makes a big difference for people trying to solve problems on the ground.” The guide is envisioned to help local governments and municipalities build an action plan for smart cities in India. As Bane explains, “The guide shows Indian administrators that everything is possible in India, too, though the country may have a tradition of bureaucracy.” In his view, one of the most important takeaways of the guide is that India is already successful – it’s just about scaling that success to other cities.
projects; the smart city proposal had ideas, not solutions.” Also, as many of these smart cities will have a multitude of projects, the momentum at present is to hire a programme management consulting firm with expertise across all disciplines such as water, transport, sewage, ICT, etc. “Advisory is a role we can fulfil as programme managers, and that’s a huge opportunity,” he adds. Meanwhile, HPE has designed innovative ICT solutions especially for Indian cities that encompass, according to Rao, “Healthcare; education; skill development; city safety and surveillance; e-governance; emergency response; traffic, parking and resources metering; mobility platforms and mobile apps for new economy businesses, and more.” These innovations allow governments to stay connected with constituents while being much more efficient, agile, and resilient.
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“These help governments improve quality of life, drive economic growth and create sustainable communities to be ready for an ever-changing future,” he adds. Also, Itron is reckoned for its smart city growth strategy and excellence in implementation. Pawan Mathur, Director, Itron, says, “We are committed to helping our customers fulfill their vision of a connected smart city in the areas of energy management, theft detection, non-revenue water reduction, solar energy, electric vehicle (EV) charging, big data analytics, and streetlight management.” He adds that as cities around the world face aging infrastructure, growing urban populations, government mandates and shrinking budgets, managing energy and water is critical to ongoing economic prosperity, resource conservation, and social well-being.
US $ Mn Chennai, 210
Coimbatore,243
150-300
Kochi. 313
300-600 >600
Source: PwC
Cisco is already working with a few cities including Pune and Ahmedabad, and is doing a pilot in Jaipur. As Aamer Azeemi, past managing director, CISCO Systems, shares, “Cisco is working with these cities at various levels and has been in discussion with various other cities.”
For a special purpose The urban local bodies (ULBs) of the winning 20 smart cities are finalising the uphill task of forming special purpose vehicles (SPVs). Around 12 of 20 smart city winners have already formed SPVs, and the applications of the remaining eight are in different stages of approval from their respective state governments. (See page 50 onwards, for a complete status on these cities). There are benefits attached to forming an SPV. Viewing this as the best solution for India, Azeemi says, “The SPV’s CEO has been given the authority and power to coordinate among stakeholders. If you ask a private company or a system integrator to run around seeking permissions from 15 different agencies, that will make things difficult for them.” Certainly, the SPV will enable the assembly of a new team with a clear objective that can be monitored and hopefully bridge the silos that often exist in urban management. To this, Perry adds, “Success clearly depends on the SPV’s
COVER STORY CITY-WISE ANALYSIS FOR FIVE SECTORS
US $ Million
Bhuvneshwar Indore Belgavi Jabalpur Solapur Bhopal Pune Surat Davengore Guwahti Ahemdabad Kakinda Jaipur New Delhi Kochi Vishakapatnam Coimbatore Chennai Udaipur Ludhiana 0
100
200
Redevlopment Infrastructure
300
Transport
400
Governance
500
600
Water and Sanitation
700
800
Energy
Source: PwC
goals and the city’s capacity to execute the same. Or else, one could again be bogged down by the same administrative challenges Indian cities face.” Rao agrees, saying, “The SPV is envisioned to remove bottlenecks in deciding, procuring, deploying and implementing city-wide projects. It remains to be seen how the working relationships between the SPVs and ULBs or government machineries will evolve into a collaborative relationship.” He lists areas where the SPV will play an active role: • RESOURCE ALLOCATION: Keeping current operations going, as well as investing in the future. • INVESTMENT IN INFRASTRUCTURE: Upgrading existing investments to
Managing energy and water is critical to ongoing economic prosperity.” - Pawan Mathur, Director, ITRON
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extend their life and maximise their value and/or build new infrastructure. • SERVICES: Deliver new services to underserved segments and/or improve the quality of services already being delivered, making tough choices between new services and shifting or shutting down some others.
Execution challenges In the current scenario and for the foreseeable future, governments will have less money to deal with greater demands for public services. Citizens with instant access to consumer services over the Internet via their smartphones will demand similar dynamic and responsive services from local government bodies.
Setting timeframes It’s a common refrain: “Two years have gone by and no smart city has come up.” But planning, designing and construction take time. Jagdish Salgaonkar, Senior Vice President, Civil & Infrastructure, AECOM, estimates: “A greenfield city like Dholera could take anywhere from seven to ten years. In greenfield cities, you first need to create the master plan, which could take a year. The master plan then has to be approved. You will have six months of hearings because we are a democracy and have to go through farmers and local people and get their consent. After approval, the design has to be worked on, which takes about a year or a year-and-a-half. This complete process takes about three years, followed by another three to four years of construction.” Sharing his estimates for brownfield jobs, he adds, “We hope to see benefits within a year. Some projects could be quick-fix ones, such as creating an e-governance system, which would take about two months. Projects such as beach erosion and protection may take two years; traffic signalisation around six months; and fixing water supply system around four to five years. Overall, the average estimated timeframe could be one month to two years for these cities.”
Photo courtesy: Naya Raipur Development Authority.
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With initial funds from the Centre and state, other funding sources that cities can opt for include venture capital (initially), project financing (five years) and long-term financing (10 years).
Rao identifies some of the challenges as “the reality of a growing population, increased demand for energy, depleting natural resources and ageing infrastructure which calls for better utilities, healthcare, education, etc.” And Perry sees specific
The ambitious smart cities plan will create many business hubs across India.” - Lux Rao, Country Leader-HPE Future Cities & CTO-Technology Services, HEWLETT PACKARD ENTERPRISE (HPE)
Success depends on the SPV’s goals and the city’s capacity to execute it.” - Guy Perry, President-Cities & Strategy, ESSEL INFRA
challenges with every project, saying, “Initially, there are a lot of administrative hurdles that can be time-consuming.” However, with a strong concept and a series of common-sense principles, one can surpass all hurdles, buttressed by political, administrative and public support. With his “try-fail-try again-fail-try again-fail-try again-succeed” approach, Bane believes, “You need to have a lot of projects on the ground and a lot of people trying, because failure and success is individual; if you don’t fail once or twice, you are not going to succeed.” He is clear that the challenges India will face could be similar to those of many developed countries. The questions to be asked are: Is the project mature? Does it deliver benefits? Is it financeable? Is there a team to execute it? India is uniquely positioned to be successful because it has some of the best entrepreneurs, IT and civil engineers and bankers in the world. “What needs to change is that these talented people need to work in their own country,” he adds. In the meanwhile, Rao offers some ICT solutions for specific challenges. “Government agencies operate in silos, and there is a compelling need to simplify, integrate, and orchestrate multiple government agencies to provide seamless services to the citizen,” he says. “As for multi-modality and volumes of data, making sense of the data to derive real-time and purpose-led insights are the key to drive citizen-oriented policies and
programmes. Last, for skills and scale, transitioning legacy infrastructure needs to scale up via cloud. Skills are needed to enable a smooth harmonious transition.” Funds play a crucial role in India’s infrastructure story, and the smart cities mission is no different. “The government’s contribution in terms of finance is clearly not going to be sufficient,” points out Azeemi. “So, cities need to work on innovative business models for finance.” (See box on Smart Financing).
True transformation Clearly, Indian cities have to cope with issues of stretched power, water, sewage, and transportation infrastructure as well as ensure safety and drive economic growth. But a concerted effort as part of the smart cities mission could lead to a transformation. Every city is to focus on development in two areas: Pan city and area-based. Pan-city development includes smart solutions such as technology, information and data and existing city-wide infrastructure, and covers sectors such as transport, governance, water, waste management, safety, energy and social infrastructure. Area-based development includes redevelopment, retrofit and greenfield. According to estimates by PwC, pan-city projects in Phase-I of the 20 cities will be worth $1.8 billion, or 23 per cent, while area-based development will comprise the remaining
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COVER STORY TThe
6 areas of focus for a future city
Transformed constituent experience Prosperity
Cities need to work on innovative business models for finance.”
Innovative services
- Aamer Azeemi, past managing director, CISCO SYSTEMS
Show public value Collaborative innovation
Agility and resilience
Superior government services
Liveable city
New economy ready
Accessible health
Knowledge economy
Connected
Mobile mind-shift
Source: Hewlett Packard India
other services to ensure all citizens meet their fullest potential,” he adds. With this mission, Perry sees positive momentum being set in motion through The winning cities certainly have their work cut out to find and manage the funds for the projects and ensure a transparent process that promises regulatory competition. “Cities tend to have a natural tendency to compete with each predictability and a line of sight on returns for investors. These cities will have to other, and if this can be channelled contend with state of affairs unique to India, including the lack of a mature secondary corporate bond market (with free entry and exit). towards making the city more liveable, Although initial funding would come from the Centre and an equivalent sustainable and efficient, it will have an amount from the state, other funding sources these cities can opt for include extremely positive, transformative effect,” venture capital in the early stages, followed by project financing (five years) and he reasons. long-term financing (10 years). In Salgaonkar’s view, meanwhile, India At the same time, as Ramakant Jha, CEO, IL&FS Ltd, suggests, “Cities must is a difficult and complex country. consider the basics of urban planning, infrastructure planning, development, “Policymaking in India is extremely institutional framework and tax structure before they launch any project.” tough,” he says. But he quickly adds, “In Meanwhile, HSBC India, shares, “Among the current set of projects in India, all wisdom, the government has decided which have most development proposed on EPC basis, the bank could assist to start with the smart cities and this might ” through bid or performance bonds and trade financing facilities at first instance. HSBC India is keen to engage with various stakeholders in providing cross-border then trickle down to a smart village expertise on financing solutions for BRT projects and municipal bonds, where the programme, because one goal is also to stop villages from migrating to cities.” bank has significant experience. “Going forward, as PPP projects scale up, we In Rao’s lexicon, “future cities” always would be keen to engage on PPP advisory or term financing opportunities too.” As the requirement for funding could be much larger than the Rs 500 billion seek to improve and innovate around the over the next five years, there would be a need to tap other funding sources such as needs of citizens and businesses by riding multilaterals and development finance institutions. Additionally, as the first round on a robust IT framework. “IT is a key of projects are successful and further developments are underway, funding enabler and will ensure the whole gamut sources in the form of well-structured or credit-enhanced municipal bonds and of citizen engagement ranging from PPPs would need to be a major vehicle for resource mobilisation to meet funding delivery of services, information for all requirements. In such a case, for a city or ULB that is not well-rated, there could and an on-going dialogue with citizens,” be merit in evaluating options for credit enhancement through which governmenthe says with confidence. owned institutions notch up the credit rating for the offtaker payment obligations. Thus, it appears that the initial Ergo, after finalisation of DPRs, the first set of projects being awarded on EPC apprehensions about the ambitious smart basis would assist in establishing a track record, setting the precedent for future city mission seeing the light of day are “ ” developments. This will help the risk allocation thereafter for PPP projects, gradually giving way to optimism and the adds HSBC India. expectation of action on the ground. “Smart cities is a journey, not a 77 per cent worth $5.6 billion. Padode approach will create many business hubs destination,” Padode says on a concluding believes that this mission is strategic as it across the country,” says Rao. He is note. And, the speed at which the lays emphasis on area-based development, certain that these cities, while opening up government is unveiling its smart agenda which is envisioned to proliferate the new opportunities, will also create safe, is a clear sign that it means business – this, entire city gradually. liveable, and vibrant environments for in turn, spells big business for the industry “The ambitious plan of 100 smart their citizens. “They will deliver and a better life for Indians. cities is well-conceived and the planned high-quality education, healthcare, and
Smart financing
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COVER STORY CW connected with the municipal corporations of the selected 20 cities to get a sneak peak into their preparations to achieve the smart dream for their city – amount budgeted for the plan, status on formation of the SPV, tenders to be floated – and their requirement for pan-city development.
Coimbatore
Bhopal
Ahmedabad
Davangere
Guwahati
Jaipur
NEW DELHI: The capital territory Ashish Aggarwal, Deputy Director, New Delhi Municipal Corporation (NMDC):
volunteers for the skill transfer and mentoring programme.
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Naresh Kumar, Chairman, NDMC
Likely date of completion March 2018
March 2018 March 2018
March 2020
March 2019 March 2017
Source: Smart City Challenge, Stage 2
“For the Delhi smart city plan, we have budgeted around Rs 1,900 crore, which includes opex and capex. Importantly, NDMC will contribute around 53 per cent of the total fund requirement, and 42 per cent of the funds will be through the PPP mode and the remaining from the central grant. We have not yet formed the special purpose vehicle (SPV), and it will take about one month to finalise the procedure that includes identifying members. Meanwhile, till the formation of the SPV, it is proposed that the corporation will be in a position to perform the functions of the SPV, being autonomous within the mandate given in the Act and financially self-sufficient. This has led us to issue four Pan-city opportunity requests for proposals for various Activity/component Resources required projects to be undertaken in our e-Governance One e-gov specialist, three ICT specialists, four web and mobile smart city plan. developers, one cyber-security expert, five dedicated front-end Recently, we floated staff for citizen engagement, companies like Rural Electrification Corporation (REC) to be engaged for execution an RFP for 10 mini through a competitive bidding procedure. sewage treatment plants ranging from Installation of Companies like REC to be engaged for execution through a 100-500 kld. We have AMIs/smart meters competitive bidding procedure. also floated an IT enablement of the NDMC employees of the Electrical Department to be trained to RFP for the SCADA distribution network including be able to adjust to IT enablement of the systems and system for energy technology infusion technological maturity. and waste Phase-wise implementation Engage firms to prepare detailed project reports (DPR) followed management and of 40 MW capacity from by competitive tariff bidding, Solar Energy Corporation of 105 public toilets. solar power India (SECI). And, we are planning Smart water and Engage firms for the execution of the projected plans in the to issue an RFP for wastewater management DPR, example, IBM, Eram Scientific Solutions. smart electricity Engage organisations like Adobe Systems, Blackboard, Cisco, poles, which is in an Smart health and education DocTree, GE, for the execution of the plans; identify and engage advanced stage.”
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JAIPUR, Rajasthan: The pink city Ashutosh Pednekar, Commissioner, Jaipur Municipal Corporation:
Likely date of completion 2018
2018
2017 2017
2017
asset management system Smart solid waste management – SWM operation management system
Digital infrastructure for intelligent operation data integration platform.
2018
Source: Smart City Challenge, Stage 2
“We have envisaged total funds of Rs 2,400 crore for developing the Jaipur smart city plan. At present, we are in the process of finalising a consultant to prepare the detailed project report (DPR), which will be based on fixed parameters. While the DPR process is expected to be completed within a Pan-city opportunity month, it will initially Activity/component Resources required focus on three major interventions of intra-modal mobility, Smart multi-modal mobility Digital infrastructure for card issuance, card recharge and – open standard-based validation system. solid waste common fare card system, management and multipurpose open standardheritage tourism, based fare common card for pan-city as well Jaipur Multi-Modal Public Digital infrastructure for asset management system, bus and as area-based crew scheduling system and fleet management. Transit Operations and development. We Management Centre will then issue bids Passenger information Digital infrastructure including LED/LCD display for bus shelters. for projects to be undertaken on a priority system/journey planning basis. We have already Smart solid waste management Biometric devices for mapping waste recycler. formed the SPV, which – operations monitoring of street waste collection will be headed by the Principle Secretary LSG; Smart solid waste GPS trackers, radio communication, route optmisation. I will be the CEO.” management – fleet and
BHUBANESWAR: Odisha’s capital and pride Alok Kumar Kar, Additional Commissioner, Bhubaneswar Municipal Corporation: “We have allocated a total fund of Rs 4,500 crore for our smart city plan for the next five years. In the first year, we intend to spend about Rs 800-1,000 crore on various envisaged projects. Meanwhile, within one month, we will finalise the DPR, and the bidding process will start in the next two-three months thereafter. We have already formed the SPV; the Pan-city opportunity structure is still in the draft stage and Activity/component Resources required Likely date of yet to be finalised by completion the state government.” Intelligent traffic management subsystem
Traffic signal; surveillance camera both fixed with video analytics capability and PTZ; variable message signboard, etc.
Smart parking subsystem
Physical: Handheld POS, LED parking displays, etc.
2018
Transit operations subsystem
OBUs with GPS devices, depot assets management, PIS displays, etc.
2019
Common payment card subsystem
Cards, issuance centre, card vending and recharge machines, handheld POS, back office system, etc.
2017
Emergency response and incident management subsystem
Call centre, GPS devices, radio communication system, weather monitoring, vehicles, etc.
2019
City command and control subsystem
ICOMC building and associated infrastructure, video wall, GPS, camera, etc.
2019
Source: Smart City Challenge, Stage 2
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COVER STORY
SURAT, Gujarat: The diamond city Milind Torwane, Commissioner, Surat Municipal Corporation:
administration centre)
will implement.
Automatic fare collection system
Vendor to be appointed by the SPV for ITMS system.
Likely date of completion 2018, for 30 services
2018
2018
2018
2018
2017
Source: Smart City Challenge, Stage 2
“Total financial plan of Surat Smart City Proposal is Rs 2,597 crore including smart city funding, own funding, funding through convergence with other GoI/GoG schemes and PPP. For FY16-17, provision of Rs 150 crore has been kept in SMC’s budget apart from projects on PPP. An SPV named Surat Smart City Development Ltd has already been formed and is chaired by the city’s Pan-city opportunity municipal commissioner. Resources required PwC-TCE consortium has Activity/component been selected through the IBM has been roped in to provide the operating system for the process of RFP as Project SMAC centre (SMArt City centre) centre; SMC has developed GIS platform with 12-13 layers that Management Consultant will form the basic platform; SPV will implement along with by GUDM, Government of technology partner. Gujarat, for consultancy SMC has engaged State Bank of India (SBI) as a card operator S-Connect card management services. That said, the for financial transactions – it is also brand partner for the system (co-branded, DPR will be prepared multi-application, contactless S-Connect card; vendor for card management system to in the next three to integrate SMC civic services and other private services; vendor smart card) four months. Project for an integrated automatic fare collection system (AFC). implementation has been Development of ERP with SPV will implement the system in coordination with SPV; proper prioritised and phased GIS platform training and awareness on change management will be crucial across five years from in effective implementation. the year 2016. Post WiFi Surat SPV to implement in coordination with DISC; vendor to be finalisation of DPR, (fibre-to-home connectivity) appointed for development of website and O&M; service tenders will be floated providers to be appointed. immediately as per Vendor needed for integrated transit management system Surat IT-MAC (integrated the implementation (ITMS); SPV in coordination with SMC and traffic department transport-mobility plan of SCP.”
KOCHI, Kerala: Port city on India’s southwest coast “We have budgeted a total of Rs 2,000 crore for our smart city plan. Initially, for smart city implementation, Rs 1,000 crore will be spent, of which Rs 500 crore will be the share of the Central Government, Rs 300 crore from the state and Rs 200 crore will be the corporation’s share. As the amount sanctioned will be spent over five years, of our Rs 200 crore, Rs 50 crore has already been incorporated in the corporation’s Pan-city opportunity current annual budget. We have formed the Activity/component Resources required Likely date of SPV, following which, we completion will float the RFQ to Funds. March 2017 select consultants Smart card integration and an integrated city app to prepare the Intelligent water management solutions for Funds. March 2022 DPR. While the RFQ process will 24 × 7 water supply start in the first week of April, the DPR will be ready before June 25 this year. Once the DPR is ready, we will identify priority projects and start floating tenders for individual projects in subsequent months.”
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Source: Smart City Challenge, Stage 2
Amit Meena, Secretary, Corporation of Kochi:
COVER STORY
BELAGAVI: Foundry hub of Karnataka G Prabhu, Commissioner, Corporation of the City of Belagavi:
Likely date of completion December 2017 December 2018 December 2017 December 2019
Solid waste management
Comprehensive solid waste management system.
June 2018
Air quality
Afforestation, improving urban mobility, cleaner fuels – CNG.
June 2018
Source: Smart City Challenge, Stage 2
“A total of Rs 3,500 crore has been considered to transform Belagavi into a smart city. Of this, Rs 1,000 crore has been sought from the Central Government. The proposal to form the SPV is still under consideration with the state government. But once formed, tenders will be floated to appoint Pan-city opportunity consultants – which Activity/component Resources required does not come under the purview of the corporation – for E-governance with Central command system, e-governance, smart metering for ICT system water and electricity, ITS for traffic and transportation. preparing the DPR. While this is expected Renewable energy Solar rooftop panelling for government office, public to take another two institutions, residential. months, by June-end the Traffic, transport and mobility Smart bus shelters, pedestrian walkways, cycle tracks, tendering process for junction improvement minor. priority infrastructure 24 × 7 water supply Smart meters for water supply, 24 × 7 water supply. projects should begin.”
PUNE: Cultural capital of Maharashtra Kunal Kumar, Commissioner, Pune Municipal Corporation:
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Use ICT based solutions to reduce losses/NRW and generate electricity
Funds.
December 2017
Smart water metering across all levels
Proper audit, partial pressure management, based on GIS platform.
December 2017-19
Develop a comprehensive suite of web and app-based solutions for easy grievance redressal, complaint lodging and bill payment
Capex and opex already covered as a part of the IOC (in e-governance).
December 2016
Source: Smart City Challenge, Stage 2
“Projects worth Rs 2,932 crore are proposed in the Pune Smart City Plan. This includes Rs 2,196 crore worth of projects for area-based development in Aundh-Banner-Balewadi area of Pune and Rs 671 crore worth of projects for pan-city solution, with Rs 65 crore in A&OE of the projects. As per the smart cities mission guidelines, the Centre will grant Rs 100 crore per year, which is a total of Rs 500 crore in the next five years. Additionally, the state government will grant Rs 50 crore per year – Rs 250 crore in five years – and the remaining share of Rs 50 crore per year will be borne through PMC Pan-city opportunity budget provisions. The SPV has been formed and Activity/component Resources required Likely date of the commissioner will be completion the chairman of the SPV, 1,440 buses to be fitted with GPS, VTS and health monitoring April 2018 Smart public transport as per government for Pune systems, 510 buses with PIS and 190 stops, and terminals with announcements. Once all PIS, 100 per cent buses trackable with VTS, bus stop other directors are in code-based SMS ETA service for 100 per cent bus stops. place, we will start the June 2018; Intelligent Pune 100 per cent of signals adaptive traffic management systems process to appoint domain traffic systems April 2019; with pedestrian switches; seven smart parking lots with consultants based on the December 2016 4,500 slots, apps, PIS and card-based payments; 500 cops to proposed smart city be equipped with android-based e-chalaan tablets. components, which is Smart Pune traffic Transport planning using heat maps and changing 2016-2017 expected to be finalised planning suite travel patterns. by April.”
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INDORE: Commercial capital of Madhya Pradesh Rohan Saxena, Additional Commissioner, Indore Municipal Corporation:
Likely date of completion 2017-18
2017-21
2020-21 2017-19
2020-21 2017-18
based asset management, supervision and monitoring
Source: Smart City Challenge, Stage 2
“Around Rs 5,000 crore is our smart city's total budgeted cost, which stands highest compared to other cities. We have already formed the SPV and the state government has appointed the District Collector as Chairman, Municipal Commissioner as Managing Director, and I will work in the capacity Pan-city opportunity of a CEO. The corporation has Activity/component Resources required also issued a request for proposal for the appointment Indore intelligent city Project funds, information and communication technology, of a consultant to provide mangement system (IICMS) financial and technology convergence with Digital India consultancy services for Mission (DIM). technical and administrative Project funds, information and communication technology, Central command and support unit (TASU) for the financial and technology convergence with DIM. control centre with project. We expect the multipurpose backbone appointment to take a month, communication network post which, we will issue Intelligent transport system Project funds, information and communication technology. tenders for priority projects (ITS) – traffic management that the selected consultant will propose in its DPR. This Project funds, information and communication technology, Intelligent transport system process should take another financial and technology convergence with DIM. (ITS) – transit management, electronic payment three months. By the end of June 2016, we should be Intelligent transport system Project funds, information and communication technology, ready with all our procedures (ITS) – parking management functional convergence with each parking proposal. for the implementation of Project funds, information and communication technology, Intelligent solid waste smart city projects.” financial functional and HR convergence with SBM. management (ISWM) – GIS-
According to Chennai’s smart city proposal on the Ministry of Urban Development site, against the total capital cost of Rs 1,366.24 crore for the plan, the annual operating and maintenance cost is estimated to be about Rs 65.20 crore on full completion of all project components. The operation and maintenance cost for area-based development is estimated at about Rs 33.70 crore and that for pan-city proposal is estimated at about Rs 31.50 crore. The implementation of the proposal is designed for a period of five years. Projects are scheduled in accordance with the available timeline and fund flow. The implementation of the Pan-city opportunity proposal has three Activity/component Resources required Likely date of phases: First, setting up completion of the SPV and other Non-motorised transport Architect/urban designer/landscape architect, project March 2021 administrative activities; management expert/liaison officer, transportation planner, ICT second, the design system integrator for cycle sharing, GIS expert, data analyst. phase; and third, the Electrical system Electrical and energy expert, ICT integrator. December 2019 implementation phase. As reported, the SPV is Stormwater drainage Stormwater expert – hydrologist, ICT system integrator, December 2019 yet to be formed. As the Street parking Transportation expert, ICT system integrator, data analyst. March 2020 model code of conduct management system has come into force, the Smart water – digital IT expert, ICT system integrator, data analyst, March 2018 commissioner was not solutions for citizen services communications expert. available for comment.
April 2016 Construction World
Source: Smart City Challenge, Stage 2
CHENNAI, Tamil Nadu: Detroit of South Asia
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COVER STORY
JABALPUR: Third largest urban agglomeration in Madhya Pradesh Ved Prakash, Commissioner, Municipal Corporation of Jabalpur:
Likely date of completion 2019-20
2019-20
2017-21
building programmes
AHMEDABAD, Gujarat:
Source: Smart City Challenge, Stage 2
“The total estimated cost of our smart city is Rs 3,998.50 crore. In this proposal, we have set aside Rs 190 crore for preparation of DPR, project development, procurement and project management. The SPV has already been formed and will consist of 10 members. As far as timelines as concerned, the DPR Pan-city opportunity will take another one Activity/component Resources required month of preparation. We are yet to appoint a consultant for the DPR. Radio frequency identification components – OFC Project funds, convergence with Swachh cabling, geo-fencing bins, WMITS software Bharat Mission (SBM), convergence with The DPR will focus Digital India. mainly on priority projects, and after we Project funds, convergence with SBM, Vehicle tracking and monitoring system – receive recommendations procurement of primary and secondary DFID FA, convergence with SBM. collection vehicle, GPS devices, VTMS software from the consultants for monitoring through DPR, we will start the tendering Project funds, convergence with SBM, Central command and control centre and DFID FA, Digital India, capacity building other miscellaneous – hardware and software, process, which will part of project funds. street sweeping and fogging, cleanliness take another two to metering, IEC campaign for citizens, capacity ” three months.
Economic and industrial hub
“A total budget of around Rs 2,492 crore, which includes opex and capex, has been allotted for smart city development. We expect Pan-city opportunity around Rs 1,000 crore Activity/component Resources required Likely date of through PPP projects. completion While we have begun the process of forming the Smart traffic – integrated Equipment, software, human resources, funds, website, H1 FY18 SPV, we are awaiting transit management platform mobile applications. some clarifications from Common card payment Smart cards, equipment, software, human resources, funds. H2 FY17 the state government. system (CCPS) While the Municipal OFC Equipment, physical infrastructure, human resources, funds. H2 FY19 Commissioner will be Equipment, physical infrastructure, human resources, funds. H2 FY18 the Chairman, we are yet Control command to finalise the CEO of the centre (CCC) SPV. We have considered Surveillance equipment Equipment, physical infrastructure, human resources, funds. H2 FY19 three projects for the and integration intelligent traffic management system smart city, of which Integration with existing service
Equipment, infrastructure, human resources.
H1 FY20
we have started the bidding process for two projects: A common payment system for the city and an integrated transit management system. The former will be completed in the next six months and the latter in the next nine months. The third project, which is a slum rehabilitation, area-based development, is in the planning stage and the DPR is underway. Once the SPV is formed, its major focus will be on smart components such as optical fibre network, command and control centres, retrofitting of utilities, etc.”
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Source: Smart City Challenge, Stage 2
Ramya Bhatt, Additional Commissioner, Ahmedabad Municipal Corporation:
COVER STORY
LUDHIANA, Punjab: Industrial centre of northern India “Around Rs 1,049 crore has been budgeted for the Smart City Plan. In the meanwhile, if we are able to increase our revenues through alternative sources, we can raise it to Rs 1,500 crore. We will complete the formation process of the SPV in the coming days; the state government has decided to appoint four directors comprising the Chief Secretary of State, Commissioner Pan-city opportunity and Deputy Commissioner of the Municipal Activity/component Resources required Corporation and Managing Director of PMIDC. The SPV will be named Ludhiana Smart City Funds. SMART IPT – e-rickshaw, GPS, Development Company. The DPR for the priority charging stations, Kiosk, projects is expected to be completed on or before control centre the end of May 2016. Once the DPR is finalised, we Funds. GIS-based mappin – mapping and will start bidding out the projects, which will take ground proofing, GIS application another two months. So, before July, we will centre and remote sensing centre and complete the entire process of forming the SPV to block networks, license and staffing bid out the projects.”
Likely date of completion March 2020
December 2016-18
Source: Smart City Challenge, Stage 2
GK Singh, Commissioner, Ludhiana Municipal Corporation:
SOLAPUR, Maharashtra: The textile city
DAVANAGERE, Karnataka: Cotton hub BH Narayanappa, Commissioner, Davanagere City Corporation:
Pan-city opportunity Activity/component
Resources required
Likely date of completion
CT-based mobility plan and urban transport facility
Manpower, material, equipment and funds.
December 2019
ICT and e-governance
Manpower, material, equipment and funds.
June 2017
“The total amount of Rs 1,337 crore has been envisaged under the smart city proposal. In the meanwhile, we will incorporate the corporation’s share in our budget, which is yet to be tabled. We are expecting the state government to make the announcement on the SPV formation anytime soon, after which our target is to issue RFQ for the preparation of DPR. The DPR should be completed in the next couple of months, as we want to start the bidding process of our projects in the next three months thereafter. Our focus is to award priority projects before year-end to meet the deadline, as per the smart city proposals.”
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Construction World April 2016
Source: Smart City Challenge, Stage 2
“Our Smart City’s Proposal is at Rs 2,247 crore. Of this, we are getting about Rs 750 crore from the Centre and state governments. The rest is being created by us as well as from financiers. We are all set to float tenders. We are just waiting for some instructions from the Government of India. We are Pan-city opportunity declaring our SPV because all this needs to be done through this Activity/component Resources required Likely date of completion vehicle. So as soon as we announce the SPV, the action will start. March 2018 Efficient monitoring Utility mapping for 178 sq km, installation of The Commissioner will be the and governance 158,600 m, bus tracking system for 144 buses and Chairperson of the SPV in the lump-sum cost for SCADA and data analytics centre. general body as well as the Efficient citizens’ services Citizens’ grievance redress cell. March 2017 executive body. The team under me will include 15 directors in the general body, of which six are from the political side, and a few are from the Centre and state government’s side. In the executive committee, along with me, there will be a CEO who will be appointed from the corporate world, and there will be a finance officer. Apart from that, 50 per cent of the staff would be well-trained in their respective fields. Our city will focus on water recycling and cleanliness.”
Source: Smart City Challenge, Stage 2
VN Kalam, Commissioner, Solapur Municipal Corporation:
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VISAKHAPATNAM, Andhra Pradesh: Jewel of East Coast “We realistically projected Rs 1,700 crore for the smart city plan. The funding will be assisted by the Centre and state governments. The SPV has been formed. While a few PPP projects will be assisted by the World Bank, USTDA is assisting in the preparation of the city’s complete master plan. They have gone beyond the corporation limits, where we have terms of references to deal with such as environmental sustainability, mobility, urban infrastructure, etc. All these will be part of a 16-month study, after which there will be a feasibility report that will consider the PPP projects. We had already floated tenders for a Pan-city opportunity Rs 300 crore underground cabling project; however, Activity/component Resources required such projects are now being incorporated in our Smart City Plan. We expect the tenders for the remaining projects under the plan to be floated in the Disaster management Funds. and e-governance next six months.”
Likely date of completion December 2020
Source: Smart City Challenge, Stage 2
Praveen Kumar, Commissioner, Visakhapatnam Municipal Corporation:
KAKINADA: Andhra Pradesh’s fourth most populous “For our smart city, the budgeted cost is around Rs 2,000 crore. Of this, the maximum amount has been assigned for pan-city development and the rest for area-based development. Importantly, unlike other corporations, we have not incorporated our share in the annual budget as we are financially well-placed and have an alternate source to raise funds. Meanwhile, we have already formed the SPV and are in the process of finalising the members, after which the SPV will come out with an RFP for the appointment of consultants for DPR. And then, in the next four months, we will float tenders to be undertaken on a project-wise basis.”
Pan-city opportunity Activity/component
Resources required
Likely date of completion
Implementation of ICT-enabled waste management
Support of Digital India for cloud.
FY2017-18
ICT-based urban services
Interdepartmental cooperation; support of DeitY’s cloud ‘Meghraj’ or any other cloud space as provided by DeitY; technology for education, health and planning.
FY2020-21
Source: Smart City Challenge, Stage 2
Aleem Basha, Commissioner, Kakinada Municipal Corporation:
GUWAHATI, Assam: Major riverine port city “We have budgeted Rs 2,256 crore for the Smart City Plan. But as the corporation is not financially sound, the government may have to contribute the ULB’s share as well. The SPV has been formed and the project management consultant, earlier associated with a few projects, will prepare the DPR for the plan. Pan-city opportunity The DPR preparation, which should take around 25 days to complete, is only for priority projects. Activity/component Resources required For other projects that are large in size, we will appoint an international consultant, and the DPR SPV funds. Development of integrated will take another six months to complete. With ICT-based transport system the election process going on, once we receive Bus bay and bus stop Funds. permission from the Election Commission, we will go ahead with the tendering process. Our Improvement of footpath, AMRUT funds. target is to complete the tendering procedure in road crossing and roads June this year.”
Likely date of completion 2019 2018 2019
Source: Smart City Challenge, Stage 2
Narayan Konwar, Commissioner, Guwahati Municipal Corporation:
April 2016 Construction World
59
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COVER STORY
COIMBATORE, Tamil Nadu: Manchester of South India “For our Smart City Plan, the total budgeted expenditure is close to Rs 1,590 core for the pan-city and area-based developments. While we have incorporated the corporation’s share in the budget, we expect to raise funds from other sources too. Meanwhile, we will form the SPV in the coming days, as the proposal is with the state government. As the model code of conduct has been issued by the Election Commission of Pan-city opportunity India, the decision over RFQ process for DPR and Activity/component Resources required biddings for projects will be taken by it. As the elections have been declared, we cannot give you the exact timeline. However, our initial focus will be on City-wide CCTV surveillance Funds. energy-efficiency, surveillance, non-motor corridors Energy-efficient Funds. and lake rejuvenation.”
Likely date of completion March 2019 March 2020
street lighting
Source: Smart City Challenge, Stage 2
Dr K Vijayakarthikeyan, Commissioner, Corporation of Coimbatore:
BHOPAL, Madhya Pradesh: The green city “As per the proposal, we require around Rs 3,500 crore. The focus is on transforming under-utilised government land and creating an eco-friendly and financially sustainable model. The SPV has been formed, which will have the task to swiftly implement the projects to be considered for the smart city. Its Pan-city opportunity stakeholders are Activity/component Resources required district authorities, state government, the Smart unified governance Technology experts and finance. corporation and the Intelligent street lighting City coverage for lighting, unscheduled outages, coverage of Government of India.”
Likely date of completion January 2018 January 2018
city under surveillance, Wi-Fi.
Source: Smart City Challenge, Stage 2
Sanjay Kumar, Additional Commissioner, Bhopal Municipal Corporation:
UDAIPUR, Rajasthan: Tourist destination Siddarth Sihag, Commissioner, Udaipur Nagar Nigam:
Pan-city opportunity Activity/component
Resources required
Likely date of completion
Water supply
Installation of AMR meters.
To be completed within four years from the date of sanctioning of project and availability of funds.
Electricity
Installation of smart meters for all domestic connections.
To be completed within four years from the date of sanctioning and availability of funds.
Transportation
Purchase of buses and establishment of bus shelters.
To be completed within four years from the date of sanctioning and availability of funds.
- SHRIYAL SETHUMADHAVAN and RAHUL KAMAT To share business opportunities in your city, write in at feedback@ConstructionWorld.in
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Construction World April 2016
Source: Smart City Challenge, Stage 2
“A total of Rs 1,300 crore has been budgeted for the Smart Cities Plan. And, we have not incorporated the ULBs share in the annual budget. The SPV has been formed, and in due course we will float the tenders once we prepare the DPR for the projects envisaged under the Smart City Plan. The DPR is expected to take around three months to complete.”
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TECHNOLOGY
LIGHTER, FASTER, BETTER The use of structural steel revs up the speed of construction and ensures quality.
J
indal Steel & Power Ltd (LTD) recently received a supply order for Festival City, India’s tallest composite steel structure, from Bhasin Group. The aim is to build the 33-storeyed structure in 99 days. A world-class commercial complex spread over 9 lakh sq ft in Noida, Festival City is currently under construction and pegged to be the fastest ever in India. For this project, JSPL is Niladri Sarkar, providing lighter Chief Executive and faster (SBU Business Head)infrastructure Construction Solution solutions such as Business, JSPL E550 grade structural steel columns and beams. Niladri Sarkar, Chief Executive (SBU Business Head)-Construction Solution Business, JSPL, shares more with CW on the technologies that will help ensure speedy and quality construction in this project along with insights on the company’s other projects.
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Construction World April 2016
Outlook on prefabricated steel structures “Steel has always been the best material for construction,” avers Niladri Sarkar. “Steel structures are more suitable, durable and resilient in the long run, and architecturally and aesthetically more appealing. To date, prefabricated steel structures were only being used in industrial buildings. Applications of steel structures in commercial and residential spaces have been a norm in developed nations for decades. The trend is slowly picking up in India, as well and steel structures are getting popular with architects, consultants and developers welcoming the change. As the overall duration of project execution is cut down by at least 50 per cent, the net return on investment is much higher than the marginal incremental costs spent on composite steel buildings. Hence, developers are now exploring this concept more actively. As the construction sector in the US, Europe and other developed countries and regions is primarily dominated by steel buildings rather than RCC buildings, projects governed by foreign investments are likely to go ahead with steel structures and composite buildings.”
STRUCTURAL STEEL AND INFRA grade steel is the highest grade of steel produced in India with minimum yield strength of 550 MPa. The application of this steel in high-rise buildings reduces the per square feet consumption of steel as the overall weight of the column members reduces substantially. The overall decrease in the weight of the building reduces foundation costs and, in turn, overall project costs. JSPL is the first and only
SOLUTIONS: E550
steel t l pproducer d iin IIndia di pproducing, di d i as wellll as fabricating, E550 grade steel, using high grade of welding electrodes. Apart from E550 grade structural steel columns and beam, the company is providing infrastructure solutions such as suspended concrete flooring system, Speedfloor, for slabs; drywall panels for facade works and partition walls, and TMT welded-mesh for slab reinforcements. The floors of the Festival City project are being laid through
Reach New Heights with rane SCHWING - XCMG Tower C SCHWING - XCMG introduces range of Tower Cranes which withstands the extreme conditions in construction sites. These highly adaptable fast-erecting Tower Cranes are designed with several features to handle high-rise projects. For further details, please contact us.
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ISO 9001:2008 :: OHSAS 18001: 2007 :: ISO 14001:2004 F 71 - 72, SIPCOT Industrial Park, Irungattukottai, Sriperumpudur Taluk, Kancheepuram District,Tamil Nadu - 602105. Phone : 044 2715 6780 / 781, 47108100 / 33555588 Fax : 044 27156539 Visit us at www.schwingstetterindia.com MUMBAI 022 25624863 / 64, 30718300 / 33555588 I NEW DELHI 011 3092 8500 / 33555588 HYDERABAD 040 6615 1783 / 33555588 I BANGALORE 080 4243 8400 / 33555588 KOLKATA 033 3322 3300 / 33555588 I COCHIN 0484 4055984 / 3355558 AHMEDABAD 079 40244200 / 33555588 I PUNE 020 26055651 / 2 / 33555588 MOHALI 0172 3957500 / 3957503 I BHUBANESWAR 0674 2463999 / 3355558 GUWAHATI 0361 2234738 I RAIPUR 0771 2562325
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TECHNOLOGY
JSPL’S UPCOMING INFRA PROJECTS
Compatible with steel and concrete frames, Speedfloor reduces both, cost and time of slab construction, and ensures rapid construction with multiple floors at a time.
international cutting-edge technology, Speedfloor, without scaffolding using ‘Made in India’ steel. JSPL has also introduced drywall panels, a replacement for conventional brick-and-mortar internal walls and facade works. Our composite design solution requires less concrete and, in turn, less aggregate, saving the burden on quarries or mines. Our dedicated project team is guiding and supervising to ensure construction is moving at a fast pace. OVERCOMING CHALLENGES WITH TECHNOLOGY: Optimum design and project planning are of primary importance for a steel building. Most challenges faced in project execution can be avoided with proper planning. By mobilising an expert team, we have managed the first half of the challenge. Our project teams have coordinated in estimating the future requirements of the building well in advance, so that procuring and getting the material at site are not delayed. Our delivery of materials to site has been ‘just in-time’ to avoid build-up of unwanted materials at site. By using our Speedfloor system, we have managed to increase the reuse of plywood for shuttering and eliminated the requirements of props during construction, resulting in faster erection. SUSPENDED CONCRETE FLOORING SYSTEM: We have introduced a revolutionary and innovative technique to eliminate outdated conventional
flooring called Jindal Speedfloor. A lightweight suspended concrete flooring technique from New Zealand, it is quick and easy to install and reduces the slab construction cycle from three weeks to less than a week, thus ensuring rapid construction. An extensive range of joist depths and topping thicknesses satisfies loading and fire requirements and offers contractors and end-users an efficient and cost-effective suspended concrete floor. The joist is manufactured from pre-galvanised high tensile steel in a one-pass roll former, where it is roll-formed, punched, pressed and slotted to a high degree of accuracy at a fast production rate. The individually marked, lightweight joists are placed on the support medium, where the Speedfloor shuttering system locks the joist into the exact position. The reinforcement is placed and the concrete floor is ready to pour. The Speedfloor composite floor system is suitable for use in all types of flooring and construction. Compatible with steel and concrete frames, Speedfloor reduces both, cost and time of slab construction. It is a roll-formed, galvanised steel joist that offers all the benefits of a secondary beam, easy enough to be manually handled into place, reducing machinery handling costs. It is a cold formed joist made of E350 grade coil galvanised to 275 GSM. Speedfloor construction ensures rapid
Apart from the Festival City project, JSPL has received supply order for the Flipkart campus building in Bengaluru through BL Kashyap & Sons Ltd. “Another order from Hyderabad is in the pipeline,” adds Niladri Sarkar. “Both orders combined add up to a built-up area of over 30 lakh sq ft. We are working on proposals for various buildings of a cumulative built-up area of more than 50 lakh sq ft. We are also working on a stadium in Dharamshala and a project at Vijayawada airport. At present, we are currently focusing on high-rise steel buildings, primarily in the commercial space across India. Our efforts are also to capture the untapped residential segment. Additionally, we are looking to provide solutions to multilevel car parks, which is pertinent in the near-term context to decongest cities.”
construction with multiple floors at a time. It reduces floor thickness and is easy enough to be manually handled into place, thus reducing craneage cost. Its speedy erection makes it an ideal solution for multi-storey construction, especially in high seismic zones. Its unique advantages over traditional construction make it an ideal choice for developers to use this concrete flooring system in their projects. The Speedfloor concrete flooring system has already been implemented in many of our projects, including Festival City, Noida; Medanta Hospital, Gurgaon; GD Goenka School, Gurgaon; Philips Innovation Centre, Bengaluru; MAX Hypermart, Hyderabad; OP Jindal Community College, Raigarh; and many others. COST INVESTED AND SAVINGS: The benefits of a steel building is based on lifetime costing, which is comparable to a conventional RCC building, as the former requires little annual maintenance. While, at the outset, a steel building would appear costlier than a RCC building owing to capital investment, it is also well-established that delivery time for a steel building is substantially lower than a concrete building, which would reduce financial costs for any investor.
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SPOTLIGHT
Ace of Ports Whether it is the economic scenario or weak infrastructure spending, ITD Cementation has overcome every challenge and now views the ports sector as significant to its expansion and growth.
W
hen Indian infrastructure reported one of its weakest years in 2014, this company reported a credible performance. What’s more, it reported the highest order book accretion in its existence that year. Little wonder then, that ITD Cementation India was awarded by CW for being one of India’s Top Challengers for two Adun Saraban, consecutive years Managing Director (2014 and 2015).
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Current scenario
KEY CLIENTELE .......................................................
Government: DMRC, RVNL, Kolkata Metro Rail Corporation, Bangalore Metro Rail Corporation, NHAI, Mazagaon Dock Ltd, Garden Reach Ship Builders, AAI, Indian Railways, Government of Andhra Pradesh, Rites Ltd, and CPWD, Noida. Private: Reliance-ADAG Group, IHI Corporation, Nhava Sheva Gateway Terminal, Tata Power, PSA (Singapore), Adani Group, Jindal Steel, Samsung, SICAL Iron Ore Terminal, L&T, Jindal Power, Mundra Port Trust, Ennore Port Ltd, Gangavaram Port Ltd, Marg Ltd, and ABG Shipyard, etc.
With an improvement in order inflows and a strong order book, the company’s revenue is expected to grow by 15-20 per cent in CY16. Commenting on the company’s performance from January to December 2015, Adun Saraban, Managing Director, ITD Cementation India Ltd (ITD) (full interview on S Ramnath, following page), CFO says “We are above Rs 3,000 crore this year compared to last
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Analyst zone Varun Awtani, Analyst-Corporate Ratings, India Ratings & Research – a Fitch Group Company, shares his analysis on ITD Cementation India’s growth, in conversation with SHRIYAL SETHUMADHAVAN. In the current scenario, ITD Cementation is among the better performing companies. The company’s revenue has grown in double-digits in 2015. If we look at the listed companies in this segment, most of them are facing issues such as project delays, cost overruns, etc, with majority of the companies being highly leveraged. ITD Cementation has also faced similar issues, which impacted its margins. However, one would probably see an improvement in margins over the next couple of quarters, as most of the legacy orders will move out of the order book. Also, the company’s order book has grown substantially over the last 12-18 months and there has been a change in the kind of orders they are bidding for. From a mix of marine, hydro, road, MRTS and other orders, half their orders now come from the marine segment, and the company is totally out of roads. Last year, the company’s cash flows were stretched. But, with the legacy orders moving out, the situation is likely to improve. Nonetheless, the kind of improvement would depend on the working capital requirement of incremental orders along with execution. A differentiator in this company’s case is the competitive advantage it enjoys when bidding or participating in complex projects. In case of complex projects, the Indian entity has participated in projects along with its parent, through JVs. Execution of complex projects in the JVs has benefited ITD, in terms of meeting the eligibility criteria for new projects of similar types.
Order Book: Sector Breakup
PSU’s:
20%
Government:
23%
57%
As o
n S e pte m b er 3 0
As on September 30, 2015
Size
No. (major)
%
Hydro/dams/tunnels/irrigation
9,415
8
16
Urban infrastructure/MRTS
6,431
8
11
Marine
30,438
9
53
Specialist works
1,678
15
3
Airport
Private:
5 , 201
year’s Rs 1,700 crore, which is a doubled growth. The work in hand position is more than Rs 6,000 crore compared to last year’s December, which was about Rs 4,700 crore, ie, a growth of 26 per cent, and with L1 in the pipeline for big ticket projects such as the Mumbai Metro and Udangudi Power Project in the South, our shares are about Rs 2,500 crore. So, it’s a total of Rs 8,500 crore in the first quarter itself.” Now, that’s growth!
Industry position With an order book of Rs 57,922 million
`million
Order Book: Sector Breakup Industrial 824
1
-
3
2
Buildings
3,150
3
5
Transportation
5,974
6
10
57,922*
53
Total
12
Excluding L1 projects*
as on September 30, 2015, executable over a period of 30 months, this is the only construction company with a sustained presence in India with an MNC parentage. With a pedigree of strong management systems and recall among clients, ITD Cementation India boasts an employee strength of 1,809. A subsidiary of Thailand-based Italian-Thai Development Public Company Ltd, the company is engaged
in the construction of marine works, highways and bridges, metros, airports, hydro-tunnelling, dams and canals, water and sewage, industrial structures and specialist foundation engineering projects. It enjoys a leadership position in marine construction, foundation and specialist works and significant presence in MRTS; hydro, dams, tunnels, irrigation; and transportation segments. Moreover, it is one of the few construction companies to conform
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SPOTLIGHT
“We have clear targets and work backwards.” - Adun Saraban, Managing Director, ITD Cementation India Ltd
How has the year actually been in terms of the market scenario? Optimistic. Despite a sluggish market, I still see a lot of opportunities. With many companies being in financial trouble, our competitors have reduced by half or even two-thirds. For instance, only two companies participated in the JNPT project worth Rs 2,100 crore and the southern Udangudi Power Project. So, it was us and a competitor.
Many companies may not be able to procure bank guarantee for large projects such as the Mumbai Metro, where the bank guarantee itself, is about Rs 4,000 crore for the purchase of the special TBMs, which is just the equipment and an accessory of about 13-14 per cent. With the requirement being four TBMs, and the cost of one about Rs 60 crore, imagine the money required just for equipment capital! Working capital is another 20 per cent and factory labour and a lot of things also come to play. What factors have contributed to making your order book rise? We have clear targets and work backwards. We have statistics for each and every performance. Last year, my success rate was 26 per cent; from this, we record segment-wise success rate. For example, speciality is 30 per cent, building high-rise is about 10 per cent, etc, and based on this, we work backwards. So, if we target to secure one project in building work, we would have to submit 10 tenders; to secure two, make 20 submissions. This is how we have worked with every segment. And, in the past two years, when the order book of many companies was coming down, we were going up. You have emerged as one of the lowest bidders for the Mumbai Metro and for projects worth around `2,200 crore... The trend of winning price has changed. Initially, it was fine to quote 5-10 per cent below the budget, but today, it is almost 5-10-20 per cent above the department budget everywhere. So, to me, the Mumbai Metro price is above the budget. But, it will take time for the government for the justification; they will try to narrow the gaps and we hope that by the first quarter of this year, things will move. Also for the Udangudi Power Project, justification is on and we hope to succeed in both Udangudi and Mumbai Metro.
to ISO standards for quality management systems, occupational health and safety management system, and environmental management system.
Priority projects The construction of maritime structures and ports has contributed to the company’s growth in the past couple of years and is expected to play a major role for the next two, considering the proposed expansion of a few ports as well as some greenfield projects on the anvil. As S Ramnath, CFO, ITD, says, “For the next two years, we expect ports to
Key Financials
Standalone
`million
9M September 2015
2014
2013
17,454
13,524
12,248
(131)
1,773
1,584
PBT*
(1,209)
280
93
PAT
(894)
194
93
Cash profit
(711)
488
428
EPS
(5.76)
15.14
8.08
Net worth
4,782
5,678
4,084
DEBTS
5,656
6,708
6,950
-
-
10%
Turnover PBIDT*
Dividend%
*After exceptional loss of `1,240 million from NHAI OTS (considered in quarter March 2015)
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What is the status on the huge order bagged for the JNPT port? Of the Rs 2,160 crore order, we almost completed about Rs 900 crore by December 2015. This project comprises two main activities: Reclamation filling and dredging. We were to complete 9 million cu m dredging by April 2016, but completed most of it by December, and now, it is 100 per cent complete. As for the reclamation of 6 million cu m, we completed 3.5 million, which is over 50 per cent and it is going well. You have taken a step back from roads... We have been in this segment since 2001. Although we think optimistically about it, I try to be more selective. We like to focus on big flyovers and the hybrid model. However, in the past few months, though tenders have floated on the hybrid model, not many companies have shown interest. This is because they cannot tie-up with financial sources. Hybrid is annuity-based and a fund is a requirement for doing the job. We believe we could have a good chance on the hybrid model with few competitors. But, I will go slow on NHAI projects, because I want to see NHAI’s commitment and the same condition in the contract. I want to see at least two to three projects take off. We may submit bids for few projects, so we are not completely out from this segment. How much does the company invest in equipment? About four to five years ago, we spent about Rs 57 crore a year. But since, we have focused more on project-specific requirements and spent about Rs 27 crore on average in the past three years. Depending on tenders bagged, we specify what will be in-house equipment, external hire equipment or new purchases. What measures are taken to ensure safety? Our company has spent a lot on safety. We have a clear target on safety; we have an AIR (accident incident rate), normally used worldwide, and a severity rate to control serious injuries or accidents. We look at the past three years’ average and cut down by 5 per cent for the next year. In terms of methodology, the best way to handle safety is to have the engineer and area managers themselves be safety
Elevated road for Noida authorities: Though there is good opportunity for building roads and flyovers, the company plans to work selectively.
officers. I try to incorporate this as multitasking, where an engineer does technical as well as safety work. Also, the equipment used has to be checked; for instance, before handling heavy lifting equipment, you need the certificate and ensure it is okay. We are among the top in safety; my working philosophy is based on three aspects: Safety, quality and delivery. How do you get and retain skilled manpower? We have training every month. We target the number of people to be trained for every activity. The best way is to grow our own people; so, if we require 10 training engineers, we recruit 30. This is because if they leave the company in future, we will have the rest with us. In the first year at our company, we give them the work and in the second year, we let them find their area of strength. As part of our company culture, we believe in training and retention. At the outset, the company has engineers and other employees who started their career way back in 1978. The biggest hallmark of our company is good training from elite campuses – we pick people, train them well, empower them, and create a sense of belonging. So, we have better human assets compared to capital assets; that’s what drives these projects.
Key Financials `million
Consolidated 9M September 2015
2014
2013
20,060
17,124
15,784
175
2,051
1,965
PBT*
(1,178)
269
239
PAT
(894)
194
93
Cash profit
(601)
621
535
EPS
(5.76)
15.14
8.08
Net worth
4,782
5,678
4,084
DEBTS
6,762
7,653
7,695
Turnover PBIDT*
continue to play a significant role in our expansion plans; as we are a leader in that area, we expect a fair share of expansion will fall in our lap.” Saraban sees this being followed by MRT such as the Mumbai Metro or Delhi Metro, categorising these as “high-value projects”. While for marine projects, he is confident that the company will participate in all tenders, for projects such as the underground metro in Mumbai and others, he says, “It depends on resources. We may participate for maybe two or three projects at the most; otherwise it is a huge investment.”
*After exceptional loss of `1,240 million from NHAI OTS (considered in quarter March 2015) April 2016 Construction World
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SPOTLIGHT
----------------------------Equipment and manpower base • Strong and experienced work force of 1,809 employees. • Additionally, around 3,017 labour workforce. • Strong equipment base to execute order book.
-----------------------------
LNG storage tanks for IHI Corporation, Japan, at Mundra, Gujarat: The company enjoys an order book of `57,922 million as on Sep 30, 2015, executable over a period of 30 months.
Strategies to build a stronger organisation • A progressive deleverage of balance sheet. • A focus on large Indian projects. • A diversification into new geographies through piling, foundation engineering and maritime structures. • Strengthening of financial capabilities and net worth with the objective to enhance the company’s project bidding appetite. • Focus on bagging large, complex projects with lower competition and attractive margins. • An expansion into construction segments with significant potential (maritime structures, transportation and urban infrastructure). • Improving equipment uptime and execution productivity. • Skilling and re-skilling of human resources with the objective to enrich intellectual capital and project productivity. • Forging JVs and strategic partnerships with leading global infrastructure companies with the objective to assimilate competencies that make it possible to bid for prestigious projects. • Continued enrichment of project execution capabilities to complete and monetise projects quicker, strengthening the company’s cash flows.
The third high-growth segment for the company is water. Saraban avers, “We might tie-up with a potential technical party for this; there are huge opportunities.” And, though there is good opportunity for building roads and flyovers, the company plans to work selectively.
Plans to collaborate ITD Cem is looking for constructive collaborations with larger players to be selective and bid for projects where the competitive intensity will be lower. To this, Ramnath adds, “We are looking for large and international players who want to invest. Whether it is the coastal highway, Mumbai’s elevated metro or the trans-harbour link, these are projects
Equipment Base Equipment
No. of units
Hydraulic and rotatory rigs
38
Cranes
34
Excavators
39
Crushers
3
Batching plants
34
Sensor pavers
8
Hot mix plants
4
Launching segment girder
3
TBM (including micro tunnelling machines)
8
Cantilever gantry
6
Hydraulic RCD rig
1
we are looking at with interest.” He agrees that the actual progress of these projects in Mumbai have been lagging way behind. Apart from these, the company is looking to form constructive collaborations to take up water projects, which is expected to be a major activity in India. “Access to clean water resources is going to be the big area for us and we have to see how to build that up,” affirms Ramnath. And, the ticket size of projects the company will opt for, is expected to go up. These opportunities are expected to take ITD Cem to the second level of growth.
Future glimpse ITD Cem’s mission is set: To be India’s leading construction company in customer choice, quality and safety. And, with the focused aim of having a satisfied client, strong and proactive workforce, and quality product finished on time and to budget, there is no looking back for this company. “From a Rs 3,000-3,500 crore company, we are now aiming to grow to the next level of a Rs 5,000 crore company,” says Ramnath. And addressing the company’s immediate growth plans, Saraban says, “We have set the target for 2016 at about 16 per cent. In fact, this will be a good year for our company because we have an order book of Rs 6,000 crore. Of this, 90 per cent is good; it is the 10 per cent of challenging projects that has to go first. We are hoping for a successful 2016-17.” CW wishes the company the best of luck!
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Construction World April 2016
- SHRIYAL SETHUMADHAVAN and SERAPHINA D’SOUZA
SPECIAL PROJECT
FLYING HIGH The magnificently constructed new terminal building at Khajuraho Airport, commissioned in February this year, is equipped with state-of-the-art services.
L
ocated in the heart of central India in Madhya Pradesh, Khajuraho is a fascinating village with a quaint ambience and rich cultural heritage. Its exquisite temples, India’s unique gift of love to the world, represent the expression of a highly matured civilisation and attract countless visitors from around the world. What’s more, the recently inaugurated terminal building at Khajuraho Airport will enable more airlines to commence services, thus attracting even more people to the destination. HS Balhara, General Manager-Projects, Airports Authority of India, shares more on the design and construction of the project.
The need for a new terminal With plinth area of just 1,500 sq m, the old terminal building could cater to only 75 departing and 75 arriving passengers at a time. The old apron was also suitable to accommodate only two types of aircraft – Air Bus 320 or Boeing 737-800 – at a time. Hence, it was decided to construct a new terminal building with modern passenger facilities and a new apron. The new terminal building has been designed keeping in view the future need of integrated international and domestic operations and anticipated increase in air traffic in the next 15 years. The peak-hour passenger capacity of this terminal is 600 (300 departures + 300 arrivals).
International standards
PROJECT DETAILS
Made of glass and steel, the structure is equipped with state-of-the-art services ......................................................... and passenger facilities, such as HVAC; Location: Khajuraho, Madhya Pradesh. three escalators; three glass elevators Type: New terminal building. imported from China that handle a Area: 14,750 sq m. capacity of 16; two baggage claim Cost: `90 crore. carousels, each 60-m-long, in Completion: December 31, 2015. Master planner: Executive Director (Planning), Airports Authority arrivals; one conveyer belt in the check-in area, imported from of India. Tel: 011-2463 2950. Website: www.aai.aero Italy; two glass-walled passenger Design and project consultant: SNC-Lavalin Infrastructure, boarding bridges, imported from Noida. Tel: 0120-468 7500. Indonesia; a modern fire-fighting Website: www.snclavalininfra.com and fire detection system; flight Construction contractor: Sri Avantika Contractors, information display system (FIDS); Hyderabad. Tel: 040-2335 2027/28. CCTV; PA system; two VIP lounges, Website: www.sriavantika.com one each in arrivals and departures; Contracting agency: Airports Authority of India, New Delhi.
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Construction ConstructionWorld World April April 2016 2016
a child-care room; first-aid room; restaurant; ATM; two snack bars; shopping arcade; tourism information and hotel reservation counters; a sewage treatment plant (STP) with FAB technology; and car parking for 100 cars and buses.
Magnificent design This new terminal building is unique in terms of its striking architectural design with reverse curves. A standout feature is its space frame structure for roofing, which is in the form of waves. Its large spans, which are as big as 25 m, facilitate obstruction-free movement of passengers. One can easily see one end of the building from another, though the building is about 160-m-long. Its frameless partition also adds to the transparency across the departure, arrival and check-in areas. A huge structural glazing facial (as high as 27 m) is made to rest on large MS trusses provided with hinges at the bottom, to facilitate free thermal movements during variations in temperature in different weather conditions. This structural glazing is tilted outward at 780, which gives it a magnificent look. Owing to a level difference of 4 m between the runway and city-side area, the ground has been raised by enormous earth fill to construct this huge building with a plinth area of 1.6 lakh sq ft. Beautiful horticulture and landscape has also been developed around the building by a
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The airport structure is made of glass and steel, predominately MS frame and structural glazing, which ensures adequate natural lighting inside the building during the day, resulting in huge electricity saving.
renowned hotel chain, which adds to the beauty and charm. The structure is made of glass and steel, predominately MS frame and structural glazing, which ensures adequate natural lighting inside the building during the day, resulting in huge electricity saving. The glazing on the air side is double layer with vacuum in between for thermal and sound insulation to avoid any discomfort to passengers owing to the noise of aircraft engines from the apron side.The glass is tinted to protect passengers from the sun and UV rays and toughened in case of any accidental breakage. The magnificent artwork is a USP, adorning internal walls and the entrance. Efforts have been made to incorporate local flavour in the interiors that have been decorated with large murals with terracotta, wood, metal, forex sheets, paintings, sculpture, etc, depicting the Khajuraho Dance Festival, Panna National Park, famous Orchha paintings, etc. Also, the passenger boarding bridges are adorned with tribal paintings and artefacts.
•
•
•
The great tech way • The building has been provided with a double-layer zip lock insulated roofing system to protect it from heat and cold. Its under-liner sheet has been perforated to ensure perfect sound insulation and improve the sound quality of the PA system remarkably. • Being an eco-friendly building, the HVAC has been equipped with energy-efficient chillers and building management system (BMS) to conserve energy. Besides, ozone generators have been incorporated in the HVAC system to improve the quality of oxygen, resulting in further reduction of the air-conditioning load. • Considering the air traffic at Khajuraho is currently low, three 17TR ductable split-type ACs have been provided to economise the
•
project – one each for both VIP lounges and the third one in the server room of CCTV, PA and FIDS, which require 24-hour operation. Hence, the centralised HVAC is not necessarily operational pre and post operational hours, resulting in huge savings in electricity consumption. The internal lighting in the building has been designed with illumination levels of 300 lux in large public areas and offices. Energy-efficient metal halide lamp luminaires have been provided in high ceiling areas, while in offices and other low ceiling areas, energy-efficient compact fluorescent luminaries are used. To avoid complete blackout during commercial power failure, adequate fluorescent lamps have been used with UPS backup to cover the time lag between commercial power failure and resumption or operation of DG sets. A state-of-the-art intelligence addressable fire alarm system has been used to sense even the smallest fire or smoke. Being a drought-prone area, a rainwater harvesting system has also been provided with four discharge wells to collect rainwater. Besides, being predominantly a rural area owing to which the municipal sewage disposal system is not available near the airport, a dedicated STP with a capacity of 50 kl per day has been constructed using FAB technology. The treated water is used for horticulture.
Cost and challenges The new terminal building has been constructed at a total cost of Rs 90 crore with a completion period of nearly six years. Constructing the building was not an easy task, considering the airport is situated in a rural area with a local population of just about 12,000 and that most of the material and skilled labour had to be arranged from distant places.
Also, obtaining the fire clearance, environmental clearance from the local pollution control board, clearance for energisation of substation from the Central Electricity Authority, clearance from the lift inspector, security HS Balhara, vetting from the Bureau of General Manager-Projects, Civil Aviation Security and AIRPORTS AUTHORITY approval of DGCA for apron OF INDIA markings was a herculean job. Overcoming these hurdles, the building was successfully commissioned.
Added facilities Adequate provisions have been made for passenger safety. A registered baggage X-ray machine each has been provided for checking registered baggage and random checking of luggage at the entry gate; and one X-ray machine has been provided in the security area for checking hand baggage. DFMD and HHMD have been provided for manual frisking of passengers. In future, it has been planned to provide an inline X-ray baggage inspection system on the baggage conveyer belt in the check-in-area. CCTV cameras have also been installed for surveillance. Further, ramps have been provided along with stairs at the entry and exit for easy movement of senior citizens and the physically-challenged. Besides, separate toilets with special fittings and fixtures have been provided. Indeed, the new terminal has all the infrastructure and facilities required for an international airport. It has been designed and constructed such that it can be converted into an integrated terminal for catering to international and domestic traffic by simply adding few frameless glass partitions. With its construction, tourism in and around Khajuraho has undoubtedly received a phenomenal boost. - SERAPHINA D’SOUZA
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67 77
FEATURE Waterproofing & Construction Chemicals
I
t’s big. India’s construction chemicals industry is currently worth Rs 4,200 crore, according to Sukanta Mallik, Assistant Vice President-Business Development, CICO Technologies Ltd. “As of today, the construction chemicals industry stands at Rs 4,500 crore across seven segments: Waterproofing, repairs, industrial flooring, tiling, foundation grouts, admixtures and sealants,” says Sarjerao Kasbekar, Senior Sales Manager, Dow Construction Chemicals.
ES YT B ICK QU • India’s construction chemicals industry is currently worth `4,200 crore. • Key drivers: Admixture, waterproofing, tiling and repair. • Waterproofing compounds enjoy 14 per cent of overall construction chemicals market.
And it’s poised to grow bigger Demand drivers Developments that will yield additional demand for construction chemicals include the creation of affordable housing to cater to fast-paced urbanisation and government investments in the expansion of the country’s road network, metro and infrastructure construction, according to Kasbekar. “Regulatory changes such as the ban on mixing cement on site and mandating the use of ready-mix cement (RMC) in metros will also spur demand for chemicals,” he adds.
Growth across segments While sales of all segments of construction chemicals are charting an upward trajectory, admixtures continue to enjoy a dominant position. “Admixture technology has become a norm in concrete as users look for high-performance, durable concrete,” says Nilotpol Kar, Business Director, Construction Chemicals, BASF India Ltd.
Photo courtesy: Fosroc
“Business is estimated to grow 20 per cent in the coming two years with admixture, waterproofing, tiling and repair as the key drivers,” opines Kasbekar. Mallik expects the market to grow to between Rs 4,500 crore and Rs 5,000 crore by next year. Although at a nascent stage, the Indian construction chemicals market will exhibit a CAGR of 17.2 per cent during 2016 to 2020, to reach $1.89 billion (approx Rs 12,633 crore) by 2020, as per Dr Sanjay Bahadur, Global CEO, Construction Chemical Division, Pidilite Industries Ltd.
“Over the ensuing five years, demand for construction chemicals will be driven by new construction in response to urbanisation, which is expected to grow from about 30 per cent today to 40 per cent by 2030; the government’s 100 smart cities project; housing for all by 2022, which itself mandates 110 million housing units; greater awareness of building rehabilitation technologies; the investment of $290 billion in infrastructure; the implementation of the National Manufacturing Policy (to grow manufacturing’s share in the GDP from 16 per cent to 25 per cent by 2022); and the growing use of RMC in construction, which is expected to expand from 7 per cent to over 20 per cent,” says M Vivekanandan, Managing Director, Flowcrete India.
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“Products for repairs and rehabilitation and anti-corrosion are trending as these are essential to rehabilitate and retrofit older structures to ensure those live out their average life of 50 years,” opines Mallik. “Buyers of flooring systems are analysing the life-cycle of repair products and new flooring, and hence, are open to more durable and initially expensive systems,” says Kar. Adhesives make up 7-8 per cent of the construction chemicals market, according to BS Nagaraj, Product Segment Manager-Waterproofing, Sealant & Adhesives, Fosroc. In this segment, tile adhesives and tile grout solutions have good prospects because of the expanding range of construction materials used. For instance, Fosroc’s Nitotile solutions can be used to fix ceramic, vitrified and glass tile, and natural stone like granite and marble, indoors or outdoors, even under water. Tiles can be fixed to walls, floors, and tile itself. “All these are of tropical grade to suit Indian working conditions,” clarifies Nagaraj. All-round growth makes this an opportune time to introduce cuttingedge solutions in the Indian market. To this end, Dow has introduced the
exclusive Vorastar Polyurea, a polyurea spray elastomer system to protect steel (pipelines and holding tanks) and concrete from harsh environments, particularly high-acid and high-moisture environments. “We strongly believe that if this product can’t solve the issue, nothing can,” opines Kasbekar. Bright prospects lie ahead for green chemicals too. “Today, customers are becoming increasingly aware of eco-friendly construction chemicals, which means construction chemicals made of green materials and also using chemicals to construct sustainable energy-efficient structures. Customers are ready to pay a small premium for green chemicals,” opines Dr Bahadur.
Trends in waterproofing Waterproofing compounds comprise the most sorted out construction chemicals segment, enjoying
While sales of all segments of construction chemicals are charting an upward trajectory, admixtures continue to enjoy a dominant position.
Busting 7 myths about construction chemicals MYTH 1: Construction chemical products are costly. “Construction chemicals add approximately 1 per cent to the cost of a project and help cut down on maintenance expenses,” asserts M Vivekanandan, Managing Director, Flowcrete. MYTH 2: The greater the dose of construction chemicals, the better the performance and durability of concrete. “Actually, the dose needs to be optimised based on the cement and sand quality used from site to site,” explains Sarjerao Kasbekar, Senior Sales Manager, Dow Construction Chemicals. MYTH 3: Environmentally sustainable, high-quality construction chemicals do not make economic sense. “In fact, these qualities are no longer mutually exclusive,” opines Kasbekar. “Very often, chemicals made of higher quality and sustainable materials deliver better performance and durability and are more potent. Greener construction chemicals can help reduce structural heating or cooling and repair costs. An optimal solution will deliver results without adding cost burden.” MYTH 4: High-end, technologically advanced products are difficult to apply and need skilled intervention. “Many of our technologically advanced products are extremely easy to use,” says Kasbekar. MYTH 5: New technology will not work as it is not time-tested. “Newer solutions are based on science, and are working in similar environmental conditions (as India) across the globe,” explains Nilotpol Kar, Business Director-Construction Chemicals, BASF India Ltd.
Photo courtesy: Fosroc
MYTH 6: Construction chemicals are supposed to be ‘very cheap’. “Construction chemicals aren’t cheap but holistic solutions that add economic value across the lifecycle of structures,” says Kar.
Tile adhesives and tile grout solutions have good prospects because of the expanding range of construction materials used.
MYTH 7: Structures can be equally durable without using construction chemicals. “No, the quality of raw materials available today necessitates the use of chemicals to make the serviceable life of structures longer,” opines Kar. April 2016 Construction World
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FEATURE Waterproofing & Construction Chemicals
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Customers are asking for applications that are imbibed in the initial construction phase.” Customers are ready to Construction chemicals add pay a small premium for approximately 1 per cent green chemicals.” to the cost of a project.” - Dr Sanjay Bahadur, Global CEO, Construction Chemical Division, PIDILITE INDUSTRIES LTD
- M Vivekanandan, Managing Director, FLOWCRETE INDIA
Application faux pas India is known to be a price-sensitive construction chemicals market. So, the focus is often not on the long-term outcome of the solution and, hence, accurate product application. “This is especially so because most application companies work on a tender basis on projects. Customer affordability, not performance, drives the choice of solution,” says Sarjerao Kasbekar, Senior Sales Manager, Dow Construction Chemicals.
Nilotpol Kar, Business DirectorConstruction Chemicals, BASF India Ltd • Improper surface preparation. • Improper curing of cementitious systems. • Improper mixing and application of resinuous systems. • Not allowing adequate time intervals between various application steps, especially with repair systems.
Photo courtesy: Flowcrete India.
Industry voices identify the top application errors based on their experience:
M Vivekanandan, Managing Director, Flowcrete • Improper blending-and-mix ratio of products. • Inadequate application knowledge and, hence, inaccurate application. • Not specifying the correct solution. • Not preparing the surface as specified.
The Indian construction chemical market will exhibit a CAGR of 17.2% during 2016 to 2020, to reach $1.89 billion by 2020.
14 per cent of the overall market on the back of greater awareness, focus on quality standards and product performance. “Waterproofing and repair product customers are shifting from two-component products to single
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component, ready-to-use products, gradually overcoming cost constraints to emphasise the simplicity of handling and ease of application,” observes Kasbekar. “Also,, we’re seeing an uptick in demand as against a few years ago, for PU-based
- Prasad Satavse, Country Head, CHOWGULE CONSTRUCTION CHEMICALS PVT LTD
products or blends of acrylic and PU for high-end waterproofing.” Dow’s Elastene 8850 polymer-based product is a single-component waterproofing system. As elasticity increases dirt pickup, this product balances both, providing long-term waterproofing with UV stability and low dirt pickup. “Waterproofing systems are moving from conventional methods, which are a failure, to foolproof high-end options. Consumers are more concerned about the properties of solutions and their interaction with concrete and impact on the environment,” says Kar. “To save cost and enjoy uniform warranties, customers are increasingly demanding end-to-end solutions from a single supplier,” says Prasad Satavse, Country Head, Chowgule Construction Chemicals Pvt Ltd. “To save time, customers are asking for waterproofing and other applications that are imbibed in the initial construction phase, which is a good sign because waterproofing is not an ad-hoc fix but an essential construction step to ensure the longevity of concrete structures.”
Tips for applying new concrete on old
Sarjerao Kasbekar, Senior Sales Manager, Dow Construction Chemicals, says: • First, completely remove loose particles such as dust from the application surface by washing or blowing air. Skipping this step compromises the outcome. • Wet the surface before applying cement-based products. This ensures that the two products bind optimally. Omitting this step will cause the concrete to take water from the applied product, leading to cracking or disintegration of the surface.
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FEATURE Waterproofing & Construction Chemicals
Photo courtesy: Chowgule Construction Chemicals Pvt Ltd
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The quality of raw materials available today necessitates the use of chemicals.” - Nilotpol Kar, Business Director-Construction Chemicals, BASF INDIA LTD Adhesives make up 7-8 per cent of the construction chemicals market.
Choose the right tile adhesive for maximum performance
Products for repairs and rehab and anti-corrosion are trending.”
Tile adhesives are classified as Type 1 and Type 2 based on IS 15477-2004. “Choose Type 1 adhesives to fix tiles of apparent porosity greater than 3 per cent in less demanding environments,” advises BS Nagaraj, Product Segment ManagerWaterproofing, Sealant & Adhesives, Fosroc. “Type 2 adhesives are suitable to fix tiles of apparent porosity less than or equal to 3 per cent in more demanding environments. Also, opt for Type 2 adhesives to fix fully vitrified tiles or large dense tiles in more demanding spaces.”
- Sukanta Mallik, Assistant Vice President-Business Development, CICO TECHNOLOGIES LTD
Customer affordability and not performance drives the choice of solution.” - Sarjerao Kasbekar, Senior Sales Manager, DOW CONSTRUCTION CHEMICALS
In future, Satavse expects the use of mechanisation in application to increase to offset the lack of qualified workers.
What makes a chemical a bestseller? Chowgule’s bestselling product is CrystalFlex2Ksuperstrong, an impregnating crystalline system that becomes an integral part of the substrate. “CrystalFlex2Ksuperstrong stands out because it self-cures after being applied, and does not require water curing, unlike other sodium silicate-based systems that have to be water cured for four to six days while the crystalline process is
Use Type 1 adhesives to fix more porous tiles in less demanding spaces, else choose Type 2.” - BS Nagaraj, Product Segment ManagerWaterproofing, Sealant & Adhesives, FOSROC
completed,” explains Satavse. “Another unique feature of CrystalFlex2Ksuperstrong is that it is alkaline with a stable pH value of 11.5, which makes it most compatible with concrete whose pH is around 12.” Dr Fixit’s bestselling products are waterproofing solutions like Dr Fixit Pidiproof LW+, Dr. Fixit Pidicrete URP, Dr Fixit Crack-X Paste, Dr Fixit Roofseal, Dr Fixit Raincoat, etc, for their dual household and industrial use and for suiting both new construction as well as remedial solutions.
“Our bestselling waterproofing solution MasterSeal Roof M800 can be applied in a plethora of applications – underground, podiums, over ground, roof – and across construction sectors such as marine, infrastructure, commercial, underground metros, road tunnels and power,” says Kar. “Single-component, liquid-applied polyurethane coating, polyurethane sealants, cementitious grouts, micro concrete (Tamms Form and Pour) and grouts (NSGrout) contribute to our volume,” says Vivekanandan. “Our bestselling products are CICO Tapecrete P-151, an acrylic-based, polymer-modified cementitious waterproofing compound, and CORCHEM 206i, a single-component, high solid content, moisture-cured, polyurethane-based, tar-extended elastomeric protective coating system, suited for the waterproofing of terraces, walls, etc,” says Mallik. Clearly, there’s a world of choice out there!
To share your views on the Waterproofing & Construction Chemicals market in India, write in at feedback@ConstructionWorld.in
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- CHARU BAHRI
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INTERACTION
“What Trimble really offers in terms of solution is transformation.” - Rob Painter, Vice President, Trimble Buildings
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rimble is a leading provider of advanced location-based solutions that maximise productivity and enhance profitability. With India being an important and strategic market for the company, “we have over 700 employees in the country today,” says Rob Painter, Vice President, Trimble Buildings. He shares more on the company’s operations and focus in India in conversation with SHRIYAL SETHUMADHAVAN.
With five years of your operations in India, is this a significant moment for you?
For us, a significant milestone in 2016 is the brand transition activity, where the brand Tekla now transitions to Trimble. And, this transition of the company’s branding is in context with the overall Trimble strategy, which will allow us to bring Tekla closer to the Trimble set of solutions. This will give the customer better access to the Trimble portfolio and solutions. And, Trimble will benefit from everything Tekla has achieved in India over the years. What’s your key focus in India going to be?
Trimble basically operates in five main businesses. And, I am responsible for one of the five businesses: Trimble Buildings. In the construction space, we have software, hardware positioning solutions and professional services solutions; I look after the entire portfolio of solutions and factors that can take the market on a global basis, India of course being one of those markets. I am also in charge of Trimble’s partner relationships. One of the strategies is to have open collaboration – we believe this to be important for customers. Also, to adopt technologies, you need solutions that are operable. So I need to ensure that we form partnerships with other players in the industry, so that customers can alternatively benefit from solutions.
market. The country has a large population and economic reform programmes are taking hold. There is a great job on urbanisation taking place, and managing this urbanisation is a challenge as well as opportunity. And, when we look at what Trimble really offers in terms of solution, it is transformation. Our tagline is ‘transforming the way the world works’. And in our Building Business, we believe in transforming the way the world builds, designs, and operates buildings. To me, this is what makes India an important market. When we speak of transformation, what changes can be expected apart from brand transition?
One would see organisational changes; and other initiatives by us would include exploring the Trimble portfolios that can be introduced in India. With many solutions already in the Indian market, we have other businesses in infrastructure development, horizontal construction, geospatial survey and technologies; so we look for opportunities where we can leverage Trimble overall for the benefit of the market and Indian customers. One important thing to note here is that for Tekla’s customers, nothing changes with the change we have undergone. We are going to communicate and deliver the same way as earlier. So the change in organisation is the coming of the parent name, but the relationship and process with the customer will remain the same. What can Trimble offer to smart buildings?
Please elaborate on these partnerships. Is there anything specific you are looking at?
Trimble has two JVs with Caterpillar in our heavy civil construction business. In India, we have a JV with Hilti for product development. As far as India is concerned, as we get deeper into the market, there will be more specific solutions for the market and we will take our plans in that direction. What is your assessment of the Indian requirement?
In terms of opportunity, India is an important and attractive
One thing we can do with Tekla software today is design coordination. What makes buildings inefficient to build is clashes during construction between the mechanical, electrical and plumbing runs. With the Tekla BIM model, we can identify such problem areas in advance and designs can be made smarter. Also, I can use the Trimble technology to bring the 3D model on to the field and tell you exactly what needs to be placed where. So smarter designs, smarter construction, smarter coordination, smarter planning – for me, this is part of the definition of a smarter building.
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MATERIAL ADVANTAGE
THE MAGIC MINERAL With a strong fire-resistant property, gypsum is a premier building material and is gaining popularity in India.
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ypsum is a rocklike mineral commonly found in the earth’s crust, extracted, processed and used in construction or decoration in the form of plaster and alabaster. In fact, gypsum has been used in construction since the days of ancient Egypt, where it was used in building the pyramids. Some of this construction is still visible over 5,000 years later, a tribute to gypsum’s durability as a building material. Amitesh Agrawal, DirectorMarketing, India Gypsum Pvt Ltd, a company that manufactures gypsum products, shares more on the material and its advantages in the building and construction space.
Going back in time Gypsum is a sedimentary mineral. It was found in layers that were formed under salt water millions of years ago; the water evaporated and left the mineral. Gypsum is an abundant mineral and takes forms including alabaster – a material used in decoration and construction as far back as ancient Egypt. Some of this construction is still visible over 5,000 years later, a tribute to gypsum’s durability as a building material. The White Sands National Monument in New Mexico is the world’s largest gypsum dune field. In the 20th century, the demand for rapid construction of military housing, brought about by World War I, led to a sharp increase in the demand for gypsum board. After a barracks fire tragically took the
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lives of several servicemen, gypsum board’s fireresistant qualities made it a preferred choice in military housing.
to form slurry that is fed between continuous layers of paper on a board machine. As the board moves down a conveyer line, the calcium sulphate re-crystallises or What’s in the rehydrates, reverting to its Amitesh Agrawal, original rock state. The paper make? Director-Marketing, becomes chemically and Gypsum is composed INDIA GYPSUM PVT LTD of calcium sulphate mechanically bonded to the (CaSO4) and water core. The board is then cut to (H2O), ie, Calcium Sulphate Dihydrate length and conveyed through dryers to (CaSO4.2H2O). Chemically known as remove any free moisture. Internationally, ‘calcium sulphate dihydrate’, gypsum ASTM is the leading standard that governs contains calcium, sulphur bound to the manufacture of gypsum board and sets oxygen, and water. This non-toxic strict criteria for strength, water resistance, mineral can be helpful to humans, and other characteristics. In India, it is animals, plant life, and the environment, IS:2095 standards for gypsum boards. while the majority of gypsum produced is used to manufacture gypsum board or Outstanding benefits building plasters. One principal advantage of gypsum board over plywood, hardboard, and fibreboard is its strong fire resistance. What is gypsum board? Gypsum board is commonly known as Besides this, gypsum board walls and ceilings have a number of drywall. Gypsum Board Installation is the outstanding advantages, which technical product name used by include ease of installation, sound manufacturers for a specific board with a isolation, durability, economy and gypsum core and a paper facing. Gypsum versatility. Gypsum products also board is the premier building material for provide these benefits along with wall, ceiling, and partition systems in quality and convenience. residential, institutional, and commercial structures and is designed to provide a monolithic surface when joints and Reasonable and recyclable fastener heads are covered with a joint Gypsum-based false ceiling and treatment system. partition work costs about Rs 50-90 per sq ft, depending on the interior design. Gypsum is also an indefinitely recyclable Manufacturing the board raw material. It can always be reused To produce gypsum board, calcined because the chemical composition of the gypsum is mixed with water and additives
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raw material in the products remains unchanged. Gypsum products can further be counted among the few construction materials where closed-loop recycling is possible, ie, where the waste is used to make the same product again.
Solution builder Gypsum has outstanding insulation properties and can offer good attributes such as fire protection, moisture resistance and impact resistance when used in combination with the correct installation systems. Conventionally, in India, sand,
From the eye of the User BIL Infratech Ltd has been using Gypsum for the past three-to-four years. R Roy, General Manager, BIL Infratech Ltd, shares his experience on using Gypsum, from a user’s perspective. “It is cost-effective,” says Roy, further adding that the quality of the material is good and helps in timely delivery of projects. Along with timely completion, it also helps in reducing cost overrun. In addition, the percentage of wastage of the material is comparatively less. “The materials that would be used in place of this, if any, would be comparatively costly and are not readily available.” Further, it can also serve as a replacement to other construction and building materials, shares Roy, such as false ceiling material, particle boards, cement fibre boards, mineral fibre boards, etc.
fire applications, IGPL Moisture Resistant for high moisture areas, etc. Being a green, recyclable material, gypsum ensures a smoother and well-timed finish, higher output, and higher performance. In addition, it does not pollute the construction site in any significant way.
Gypsum has outstanding insulation properties and can offer good attributes such as fire protection, moisture resistance and impact resistance.
Growing usage wood and water form the base of every building material. The quantity of sand, water and wood that goes into constructing a structure, if calculated, gives a huge amount that can otherwise be utilised for a more efficient environment-friendly purpose. With the need to adapt to more environmentfriendly ways of construction to preserve and use natural resources optimally, gypsum is the natural preferred option for Indians. Gypsum products have been used for decades in the construction space, and it is the material of choice because of its inimitable properties such as good insulation (thermal and acoustic), passive fire protection, moisture resistance and impact resistance.
Lighter and faster to build Drywalls are used for interior partitioning
from a practical as well as aesthetic point of view. Drywalls, as the name suggests, is a dry construction technique to build walls that are lighter and faster to construct. A strong and durable drywall consists of a IGPL framework (studs, floor and ceiling channels) fixed to IGPL gypsum plasterboards on both the face sides. The same is then finished using a joining compound and paper tapes for a monolithic finish. Between the metal stud partitions is an air gap that can be filled with glass wool insulation to get higher fire and acoustic performance ratings. Drywalls have been demonstrated to be more effective and environment-friendly than conventional wood and sand in the building process.Various kinds of gypsum plasterboards are used based on end application needs in terms of performance like IGPL Fire Resistant for
Gypsum has served as a vital piece of many famous construction projects throughout history. Over thousands of years, this important mineral has demonstrated its versatility and sturdiness and has become a staple in today’s homes, buildings and structures. In India, too, IGPL gypsum plasters have played a major role in green buildings by replacing replaced sandcement plasters as the solution of choice for leading builders. The knowledge and use of gypsum in India is steadily growing day by day; its cost is also nominal. Thus, its use is increasing manifold across sectors such as ITeS, hospitality, institutions and government projects. However, there is still a need to communicate its use and advantages prominently. - SERAPHINA D’SOUZA
To share your experience and insights on an interesting construction material, write in at feedback@ConstructionWord.in April 2016 Construction World
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FEATURE PEB, Prefab & Roofing
BUILT TO SUIT
Being a cost-effective and timely solution, PEB is gaining popularity, with immense opportunities on the anvil.
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33-storey tower built in 99 days; a two-storey facility in 75 days; a 60-m-long metro bridge in less than a week – India is setting records, and how! In the past decade, the country has seen a burst of infrastructure activities, the need being light structures that are quick to erect. Testament to this is Bhasin Group, who is building a 33-storey tower in 99 days. SS Bhasin, Managing Director, shares: “We knew that a pre-engineered building (PEB) steel structure would be easy to get and install. By reducing timelines, we plan to save about two years of delay in delivering the project.” In another move, Everest Industries is currently constructing HCL IT city – developing two buildings measuring over 200,000 sq ft in less than six months. Here, much of the work is done using over 3,000 mt of steel beams and columns. “PEB is fast to fabricate, transport and erect on site in any configuration, including large span, multi-levels, light and heavy loads as well as shapes of roof, as per the design,” shares architect CN Raghavendran, Managing Director, CR Narayana Rao (Consultants) Pvt Ltd.
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Market outlook India is the third largest PEB market in the world after the US and China. “Its market size is about 0.5 million metric tonne, with a growth rate of 8-10 per cent,” shares D Raju, Managing Director, Kirby Building Systems India Pvt Ltd. But, for Alakesh Roy, Managing Director, Zamil Steel, India, the PEB market in the past year has been flat. However, he believes that with the recent Make in India initiative, there is now an upbeat sentiment and things are positive. “It can speed up construction in infrastructure projects,” he avers. Industrial and warehousing sectors are converting to PEB, as always. Raju adds, “In warehousing, over 100 million sq ft of space is being added every year.” Prefab in roofing is gaining ground, and the impetus on agriculture in the current Budget will drive demand for quality roofing from the rural sector. “The PEB market should grow at 10-12 per cent this fiscal too,” says Manish Garg, President & Chief Executive-Steel Building Business, Everest Industries Ltd. At present, the growth areas are commercial, housing, infrastructure, industrial, buildings, stadiums, metro
projects, etc. Raju says, “High rises are expected to create strong demand in the next five years.” “Meanwhile, in Tier-II and Tier-III cities, too, we see some traction,” adds Gautam Suri, CTO and Founder Director, Interarch Building Products Pvt Ltd. “Corporate entities are also increasingly opting for PEB structures in the recent past.”
Timely solution As timely construction is crucial, PEB seems to be the ideal choice. Suri lists the advantages: “Early occupancy and return on investment mainly owing to reduced construction time by 30-40 per cent; possibilities of large, clear span structures up to 100 m and height of up to 30 m are possible; and mezzanine floors can be constructed, which help in maximum usage of space and, hence, provide better utilisation of money spent every square feet.” Also, steel structures are cost-effective compared to conventional construction. “Falling steel prices are a positive sign for companies like ours,” adds Suri. Efficient to produce and quick to construct, PEB offers good architectural design, which is achievable at low cost, and speed in construction.
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ES
Photo courtesy: Tata Bluescope Steel Ltd
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ICK • India enjoys third U Q largest PEB market space in the world; expected growth, 10-12% this fiscal. • Growth areas: Commercial, housing, infrastructure, industrial, buildings, stadiums, metro projects, high-rises, etc. • PEB roofs are 20% more economical than any other form.
High-rises are expected to create strong demand in the next five years.” - D Raju, Managing Director, KIRBY BUILDING SYSTEMS INDIA PVT LTD
reducing the number of joints and overlaps, etc. Also, new trends are seen in coloured fibre cement sheets, coloured metal sheets and, to some extent, poly-coloured sheets, explains Garg, as these are ligh-weight and don’t corrode over a period of exposure.
Photo courtesy: Zamil Steel, India
Cost-effective
PEBs are flexible, can be expanded in future if needed, and the erection process is easy.
Raghavendran adds, “The PEB erection process is easy and, further, PEBs are flexible and can be expanded in the future if needed.” Besides, prefab works are done inside factories; at site, only bolt and nuts are used for erection, without causing air pollution. “PEB structures can be custom-fabricated according to the stress that the building will experience and, therefore, are effective.” Time and speed help save costs on structures including roofing. “Compared to conventional methods, PEB roofing can reduce time by more than half and eliminate delays of unavailability of skilled manpower,” says Bhasin.
Roofing trends India’s roofing industry has been traditionally dominated by galvanised
steel sheets. “For roofing, galvalume sheets are used, the advantages being corrosionresistance and a warranty of 10-15 years,” shares Roy. While he exclaims every square feet of a structure requires roofing, Garg agrees that PEB would predominantly use metal roofing. One important element in roofing systems is the ability to reduce thermal heat gain, especially in hot weather. Raghavendran explains, “The higher the solar reflectivity index, the more heat reflected, which is better to reduce heat transmission.” Also, recyclability and life-cycle costs are high. New trends, according to him, are seen in the structural capability of roofing materials, in terms of span-to-weight ratio going up with the introduction of high-strength materials, special interlocking ways,
A recyclable material, a steel-based structure is in itself green. In fact, the raw material used in PEB itself has a high recycle content, required for green construction. “Moreover, steel when sold as scrap, results in high resale value,” shares Raju. And Suri adds, “PEB structures are energy-efficient, which results in reduced electricity bills.” Moreover, considering the complete life-cycle, PEB is more economical than an RCC building. Longevity of steel roofs is high and they are not prone to leakages. With PEB roof cost being about Rs 400-450 per sq ft, conventional roofs may cost less, “but on a lifecycle basis, PEB roofs are cheaper,” informs Roy. For Garg, PEB roofs are 20 per cent more economical than any other form. He further explains, “An industrial building with conventional methods would cost about Rs 600-700 per sq ft, whereas PEB will be about Rs 550-600 per sq ft.” PEBs are fire and earthquake-resistant with low or negligible maintenance cost, which again saves on the overall building cost and cheaper belowground owing to lighter foundations, shares Suri. While Bhasin Group has not arrived at the net savings for its Noida project yet, the company hopes to reduce the per-squarefeet cost by about 12.5-15 per cent.
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FEATURE PEB, Prefab & Roofing CASE STUDY: ROOFING JSW Steel’s re-roofing project was a challenging one that Tata Bluescope Steel Ltd (TBSL) took upon as an opportunity. Project: JSW Steel. Location: Bellary, Karnataka. Building usage: Cold Roll Mill (CRM). Scope of work: Retrofitting solution on roof above roof. Supply and installation of LYSAGHT KLIPLOK®700 Roofing profile in running plant to provide a 100-per-cent leak-proof solution. Solution: Double framing and roofing with LYSAGHT KLIPLOK® 700 Area of roof covered: 14,500 sq m Key differentiators: 100-per-cent leak-proof solution and express delivery in spite of all odds. Background: JSW Steel’s largest CRM mill required urgent re-roofing as it was facing an acute problem of water ingress through crevices on existing roofs. In a highly critical environment, where unceasing cold and hot rolled coils are manufactured, stopping the plant would have incurred tremendous losses owing to capacity wastage. It was imperative for JSW Steel to have an expert who would provide a solution without hindering its ongoing business.
Application offerings Vendors are upbeat! Kirby India offers Kirby Standing Seam Panel systems (KSS-600), which is 100 per cent leak proof, with excellent protection in all weather conditions. It provides two other roofing systems with a depth of 28 mm and 32 mm each, respectively. The company caters to metro stations, shipyards, power plants, high-rise buildings, etc. Everest Industries offers fibre cement roofing, metal roofing, polycarbonate roofing, etc. The usage for fibre cement roofing is primarily in rural, in residential and retail, whereas metal is preferred in hilly terrains, in industrial and infra urbanised projects. Coloured fibre cement roofs and Everest durasteel and primsteel metal roofs offer value for money. While Zamil Steel India’s product range includes pre-engineered buildings, structural steel buildings, roof and wall panels, among others; Interarch Building Products, too, offer pre-engineered metal building systems, TRACDEK® metal roof and wall systems, and light building systems, among others.
Rebuilding solution Steel structure is the best non-conventional method to use in seismic zones; these are light and designed as per the specific elements required.
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In due course, steel buildings that are fire-resistant and thermal-efficient such as roof and cladding will become common.” - CN Raghavendran, Managing Director, CR NARAYANA RAO (CONSULTANTS) PVT LTD
PEB structures are energyefficient, which results in reduced electricity bills.” - Gautam Suri, CTO and Founder Director, INTERARCH BUILDING PRODUCTS PVT LTD
“We delivered a project for Amarpali Banquet Hall in Nepal prior to the
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Challenges vs. Solutions Challenge: Uneven undulations in roof Solution: Welding of purlin cleats on existing rafters To correct the undulations, specially designed cleats of 0.535 m were used. These cleats were then welded on the existing rafters. Welding sparks were addressed by using asbestos cloth. Welding of 0.2-m L angles with 0.535-m purlin cleat was done to align the rafter undulation and maintain purlin level. Challenge: Roof leakage Solution: Conceal fixed LYSAGHT KLIP-LOK®700 profile was supplied and installed with a single length of 19 m from ridge to eve to provide 100-per-cent leak-proof solution. Onsite roll forming solution addressed the challenge of long length of 19 m. Quality workmanship has ensured the lifting of long length sheet to 33 m height and meticulous installation to meet the leak-proof objective. Challenge: Safety Solution: Safety net was harnessed during running plant to avoid the fall. CO monitor was placed on the roofing area to check CO leakage, in the event of which, workers were not allowed to work on the roof. Challenge: On-time project completion Solution: The project was completed in time by making express delivery, sheet installation by skilled manpower and extra efforts by TBSL team to complete the entire project in time. Conclusion: TBSL’s LYSAGHT KLIP LOK® 700 profile was a perfect roofing solution, coupled with TBSL’s excellent project management capabilities. Hundred-per-cent leak-proof re-roofing with express delivery was the key differentiator that ensured customer delight; this project was a huge success and was applauded by the client. Client testimony: “The supply and installation job, including the design and engineering awarded to TBSL, has been executed successfully to our satisfaction,” affirms VVLB Rao, Head of Department, CRM–I, JSW Steel. “We appreciate the efforts made by the TBSL construction team in meeting our quality and safety expectations during site execution activity.”
FEATURE PEB, Prefab & Roofing
PEB can speed up construction in infrastructure projects.”
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Photo courtesy: Kirby Building Systems India Pvt Ltd
- Alakesh Roy, Managing Director, ZAMIL STEEL, INDIA
Compared to conventional methods, PEB roofing can reduce time by more than half.” - SS Bhasin, Managing Director, BHASIN GROUP
An industrial building with PEB will cost about `500-600 per sq ft.” - Manish Garg, President & Chief ExecutiveSteel Building Business, EVEREST INDUSTRIES LTD
earthquake, and after the quake, it became a place where people came for refuge and stayed,” shares Suri. Adding on why prefab structures help in rebuilding disaster-prone cities, Roy says, “Facilities within the city are not required to rebuild the structure.” Other than seismic zones, PEB structures can also take the impact of floods as witnessed in Chennai and Uttarakhand.
Photo courtesy: Interarch Building Products Pvt Ltd
Conventional roofs may cost less compared to the `400-450 per sq ft cost of PEB roofs; but on a lifecycle basis, PEB roofs are cheaper.
New dawn in some segments
Looking ahead
The PEB sector has been growing with increasing awareness. And, with the projected growth in the Indian economy and upgrade of existing cities and smart cities, these structures will gain popularity. The food and paper industry are segments, among others, where prefab structures are gaining popularity, unlike earlier, shares Roy. Garg mentions “railway workshops, townships, malls, IT buildings, and shopping malls” as new additions. PEB buildings have been recently used as multilevel car parking structures. For Raghavendran, “In due course, steel buildings that are fire-resistant and thermal-efficient such as roof and cladding will become common.” Developers such as Bhasin have chosen PEB as their way forward: “We find PEB structures easy to construct and deliver in lesser time and at low cost, with savings on early completion.” However, he believes that the trend needs to be encouraged by stringent building code rules.
With a promising future, challenges still plague the PEB industry: Price volatility of steel, drop in new investments, high tax structure and application anomalies. As Roy says, “When steel prices drop, people tend to hold back their investments.” Hence, the oversupply. Further, engineers use varied norms for PEB buildings. To this, Bhasin adds: “We need to develop a standard code. Vendors can play an important role by reducing cost as well as the overall weight of the structure. With not many reputed PEB vendors, monopoly has come to play, which needs to be eliminated.” But Raghavendran sees the positives: There are no major challenges as the Indian code, which was once not elaborate – now covers PEB structures.” A good sign indeed! - SERAPHINA D’SOUZA (Additional inputs from RAHUL KAMAT)
To share your views on the PEB, Prefab and Roofing market in India, write in at feedback@ConstructionWorld.in
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TRADE TR R A DE T TALK A LK
“Kenya is planning to add up to nine solar power plants over the next few years via PPPs.” - RA Goenka, Honorary Consul, Republic of Kenya
K
enya is an important trade and investment partner for India. Bilateral trade was $4.235 billion during 2014-15. And India’s exports were worth nearly $4.12 billion. In 2003, RA Goenka was appointed as Honorary Consul of the Republic of Kenya in Mumbai by the Government of Kenya. “To represent one’s country is the biggest dream for an individual and a great opportunity to improve further bilateral relation with Kenya and India,” he says, while discussing prospects in Kenya in the construction and infrastructure space for Indian companies in conversation with SHRIYAL SETHUMADHAVAN. What is the current emphasis Kenya places on India as a trade partner?
India and Kenya have growing trade and commercial ties. Bilateral trade amounted to $4.235 billion in 2014-2015, but with Kenyan imports from India accounting for $2.3 billion, the balance of trade was heavily in India's favour. India is Kenya's sixth largest trading partner and the largest exporter to Kenya. Indian exports to Kenya include pharmaceuticals, steel, machinery and automobiles, while Kenyan exports to India are largely primary commodities such as soda ash, vegetables and tea. Indian companies have a significant presence in Kenya with Indian corporates such as the Tata Group, Essar Group, Reliance Industries and Bharti Airtel operating there. Also, Indian firms have invested in telecommunications, petrochemicals and chemicals, floriculture, etc, and have executed engineering contracts in power and other sectors. What are the investment opportunities for Indian companies in Kenya?
Kenya is expected to fast-track the development of its power infrastructure over the next five years to keep up with electricity demand in the fast-growing East African economy. Generating capacity currently stands at around 1,650 MW, while peak demand is already above 1,400 MW. However, the country is planning to add up to nine solar power plants over the next few years via PPPs. The Kenya Renewable Energy Association is hoping to generate up to half of the country’s electricity from solar installations as soon as 2016, with $500 million already invested in the scheme. Electricity transmitter and distributor Kenya Power is planning to spend $600 million on its distribution network during 2014-16 to strengthen its service delivery to commercial and industrial clients towards the ultimate goal of supporting economic growth. Over the long-term, Kenya is
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looking to triple its generating capacity to 5,000 MW by 2030. This aim is still attainable, according to Kenya Power. Other notable construction activity is found in ports, railways and mixed-use developments. India offers development assistance to Kenya in the form of loans and credit. Are there any recent activities or transactions that you would like to share with us?
Development Cooperation India offers development assistance to Kenya in the form of loans and credit. This includes a loan of Rs 50 million to the Government of Kenya in 1982 and Lines of Credit by EXIM Bank to Industrial Development Bank Capital Ltd. There was an agreement on extension of a line of credit of $61.6 million by EXIM Bank of India to the Government of Kenya for utilisation in the power transmission sector. An MoU was signed between the National Small Industries Corporation and Kenya Industrial Estates Ltd. In 2003, an MoU was signed between India Trade Promotion Organisation and Export Promotion Council of Kenya. Kenya is among the countries planned to be covered by the Pan African e-Network Project that was launched in 2007. An agreement was signed in July 2009 between TCIL and the Kenyan Ministry of Information and Communication regarding the project. Equipment was delivered by TCIL in 2010.
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Kenya is looking to triple its generating capacity to 5,000 MW by 2030; notable construction activity is also found in ports, railways and mixed-use developments.
Are there any important projects that both countries are currently collaborating upon or eyeing?
solutions to problems in trade facilitation among the Partner States. Establishing joint training programmes on trade.
• The Sanghi Group is investing over $80 million (Sh 6 billion) in a cement plant that should open at Pokot, an arid area of Kenya, for development. Its local subsidiary What is the role played by the governments in Cemtech, with the support of a number of investors, is investing strengthening relations between both countries? in a 1 million tonne cement factory in Pokot. The GujaratKenya offers an attractive trade destination for India, which is based group’s outfit is set to be the second largest producer after reflected in the number of trade delegations visiting Kenya every Bamburi Cement, which controls over half the Kenyan market. year. This year also, Indian delegations are looking forward to They will invest in renewable clean energy and have invited their participation in fairs in Kenya being organised by various energy, agribusiness and irrigation investors around the plant. chambers of commerce and other bodies. Trade delegations Just like Sanghi Group, Indian-based conglomerate from Kenya would also take advantage of several opportunities Mehta Group intends to set up a cement plant in the same to visit India. area. The group plans to put up a 1.2 million mt cement plant Under the seventh Joint Trade Committee, both sides in West Pokot, to cost about $200 million (Sh 15 billion), in have agreed for enhanced cooperation in the fields of a phased programme that will be scaled-up depending on the bilateral investment, infrastructure, SMEs, agriculture, health, available limestone deposits in the area. Since last year, Mehta energy, skill development and entrepreneurship, pharmaceuticals Group, through its cement and tourism. company Glenn Investments The standard-gauge India-Kenya trade (US$ billion) Ltd, has been busy with railway currently under Year Indian Exports Indian Imports Total Trade the groundwork for the construction in Kenya, has 2012-13 3.77 0.106 3.876 project, but analysts point the potential to raise the at the intrigues of seeking country’s economic growth 2013-14 3.893 0.127 4.019 to invest in the area where rate by 1.5 percentage points 2014-15 4,118 0.117 4,235 Cemtech expects to do its annually, when finished. groundbreaking ceremony soon. The railway line, which is expected to be completed before the As the country reels from a debilitating power shortage, end of 2017, will support growth by increasing national and another Indian giant, Danke Electrical Power Group, intends to international trade. The first phase of the scheme involves the manufacture and retrofit transformers and electrical equipment. construction of a 472 km railway line from the coastal town of It has already made its application to the Ministry of Energy. Mombasa to Nairobi. The next phase will be a 505 km railway line from Nairobi to Malaba on the Kenya-Uganda border. To generate funding for such projects, Kenya has in recent years, How, in your opinion, can we overcome challenges in our sold dedicated infrastructure bonds: During October 2014, the bilateral economic relations? country sold $117 million worth of 12-year bonds. From a Economic development needs to be strengthened between regional perspective, integration efforts within the EAC received India-EAC on a mutual foundation based on indigenous social a significant boost in November 2014 when the World Bank and economic environment. EAC trade promotion under Article 6 pledged to provide support for infrastructure investment across mentions that the Partner States shall initiate trade facilitation by: the region. The multilateral organisation stated that it will • Reducing the number and volume of documentation loan the EAC some $1.2 billion to improve inland waterways required in respect of trade among the Partner States. and ports in Kenya and Tanzania, as part of efforts to boost • Adopting common standards of trade documentation and integration in the region. More specifically, the funds will be procedures within the community where international used to revive inland waterways on Lake Tanganyika and Lake requirements do not suit the conditions prevailing among Victoria, and improve handling capacity and efficiency at the the Partner States. Mombasa and Dar e Salaam ports. The EAC, which comprises • Ensuring adequate coordination and facilitation of trade and Kenya, Tanzania, Uganda, Rwanda and Burundi, is undertaking transport activities within the Community. a substantial infrastructure investment programme while • Regularly reviewing the procedures adopted in deepening policy integration and reducing barriers to trade. international trade and transport facilitation with a view to In a recent 2015-25 strategy paper, the bloc stated that it needs simplifying and adopting them for use by the Partner States. at least $68 billion, and possibly up to $100 billion, over the • Collecting and disseminating information on trade and next decade to develop roads, ports, railways, transmission lines trade documentation. and oil and gas infrastructure. • Promoting the development and adoption of common Give us your views on feedback@ConstructionWorld.in April 2016 Construction World
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INTERACTION
“Schindler will continue to grow at a rate faster than the market.” - Antony Parokaran, CEO, Schindler India
“W
e move over 1 billion people per day,” claims the company with pride. Indeed, founded in 1874 in Switzerland, Schindler manufacturers, installs, services and modernises elevators, escalators and moving walks; it has over 1,000 branch offices in more than 100 countries, and production sites and R&D facilities in the US, Brazil, Europe, China and India. Asserting that the company in India is growing much faster than the market, Antony Parokaran, CEO, Schindler India, says, “This is owing to the products we offer, our project management skills and the service set-up Schindler has.” Nevertheless, he sees the Indian market growing at about 8-10 per cent this year, from the 6-8 per cent growth last year. He shares more on growth drivers and the company’s offerings in conversation with SHRIYAL SETHUMADHAVAN. Tell us about the company’s project management skills.
We are the only organisation in the elevator industry with four dedicated world-class training centres located in Mumbai, Pune, Bengaluru and Noida. All our training centres are equipped with elevator shafts, where our people – be it Schindler fitters or subcontractors – who do installation at site are trained. They first install elevators under our guidance and are certified, after which they are allowed to do the installation at site. So, we ensure that the elevators are done right the first time in the fastest possible time. Professional project management is the key to timely completion of project with proper coordination with all concerned agencies. For large projects, we have dedicated project managers who monitor the site, interact with different agencies and are a single-point contact for customers. The project manager ensures that all the required resources such as skilled manpower and materials are available, monitors the installation progress and communicates regularly with our customers. He also ensures the safety and quality at job sites, further ensuring the overall completion of the project without
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time and cost overruns. Finally, it is about understanding the customer’s requirements and delivering as per their expectations. What efforts are taken by the company to understand the customer’s needs?
Elevator is literally the lifeline of a building; breakthroughs in elevator technology have made it possible for the buildings to grow tall. The important part here is to plan for the correct number and specifications of elevators, considering the type of building, its tenancy, population, etc. This is crucial because once the elevators are installed, it is extremely difficult to change or add more elevators without making substantial changes to the building structure. We have a specialised team that is fully-equipped to do a complete traffic study of the building with Schindler’s advanced traffic analysis tool, based on real-time simulation. The company adds a lot of value on this front, by helping customers plan for the optimum elevator configuration while designing their buildings. So, with details such as the number of floors, kind of occupancy in the building, etc, we work out the optimum number of elevators required. How can wrong planning disrupt the entire movement of people in a building?
Today, the passenger wants to travel in the most optimal
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manner in the fastest possible (MRL) elevators, which are time. And, it has to happen in extremely cost-effective. It can an energy-efficient way. We can cater to elevator requirements do a lot to help in people of buildings upto 25 floors. Our management through what we gearless and MRL elevators are call the ‘destination control preferred over the traditional system’, which manages people ones, which require machine flow in an optimal manner. It room on top of the building. groups people travelling to This offers more flexibility to the same floor and allocates design the building, and ensures elevators accordingly. an overall saving in cost and Schindler’s Miconic-10 hall time for the customers. The call destination system cost range depends on many optimises people mobility factors such as passenger within buildings and leads to capacity, number of stops reduction in energy required, finishes chosen, etc. consumption. Our third generation – the revolutionary How is Schindler contributing PORT transit management towards the government’s system – now interconnects the Make in India initiative? entire building and provides Schindler opened its architects with new possibilities state-of-the-art elevator factory in vertical mobility at Chakan near Pune in 2014, management and security with a clear commitment to planning. Some of our key customer focus, sustainability Schindler will continue to maintain the highest standards reference installations of DCS and growth. The Schindler of safety and reliability. enabled elevators are Cyber factory campus is 200,000 sq m, One-Navi Mumbai, Imperial Towers and Lodha I-Think at which includes an elevator plant, our corporate R&D centre Mumbai. We have also installed this while modernising elevators with a 70-m-tall test tower and upcoming escalator plant. The in the Bombay Stock Exchange, Navin Vidhan Bhavan, in Mumbai. elevator plant is certified by BVQI for ISO 9001:2008 Quality Management System and awarded with the IGBC Gold rating. Today, most of our elevator products supplied to India and the Where does India stand today in the race of highSouth Asia market are sourced from this factory, which has an speed elevators? annual production capacity of about 10,000 elevators. If you look at the fastest elevators running currently in India, they are Schindler installations. Imperial Towers at Tardeo and Mukesh Ambani’s residence, Antilia, have elevators that run at How do you view the current market for escalators? 6 m per second. Also, The World Towers by Lodha will The escalator market depends on the development of eventually have elevators with a speed of up to 8 m per second, shopping malls and infrastructure projects. With the growth in which will then be the fastest. At present, the average speed economy, we expect this market to pick-up. However, the of most elevators in India will be in the range of 1 m to proportion of escalators to elevators in India is low as compared 1.5 m per second. But the elevator speed really depends to the rest of the world. Schindler is the market leader in on the height of your building, the number of people in the escalators, with many prominent projects such as the Mumbai building, and the accepted waiting and travel time. International Airport T2, Chennai Airport, Kolkata Airport, Mumbai Metro, Mumbai Monorail, and many commercial and retail projects across India. What are the current growth drivers? We are looking at a huge growth in urbanisation. Today, the urbanisation rate is 32 per cent and is expected to reach about Anything you would like to add on the company’s vision? 40 per cent by 2030. With this, the requirement for tall buildings Schindler will continue to grow at a rate faster than the is paramount. ‘Housing for All’ is an initiative that will market and maintain the highest standards of safety and necessitate taller buildings and the development of 100 smart reliability. With our growing team of highly skilled and cities will be a huge boost to ensure an increase in the number motivated employees, the company is truly poised to further of smarter buildings that will require smart elevators. strengthen its leadership in the market. Inspired by the vision of being the best service provider in the industry for its customers, we will continue to develop highly innovative and Do you have specific offerings for affordable and low-cost user-friendly mobility solutions, making Schindler the first housing projects? choice for our customers. Our S 3100, S 3300 product lines are machine room-less To share your views on this interview, write in at feedback@ConstructionWorld.in April 2016 Construction World
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EVENT REPORT
3RD ANNUAL EQUIPMENT INDIA AWARDS & CEO-FORUM A large number of stakeholders from the construction equipment community gathered at the Commission Hall of FICCI Delhi to celebrate, in letter and spirit, the awards on March 16, 2016.
The winners: (L-R) A Krishnakumar, Sunil Sapru, Abhijit Gupta, Ramesh Palagiri, Pratap Padode, Raghav Chandra, Nitin Lall, Amit Bansal, Jasmeet Singh, S Manjunath, and DR Vishawanatha.
T
he prestigious 3rd Annual Equipment India Awards hosted by ASAPP Info Global Group was sponsored by HPCL; the event associate was Hire My Machine;
VDMA-Indo German Federation was the supporting partner and the associate partners were Construction Federation of India, National Highway Building Federation, Off Highway Research, and the magzines CONSTRUCTION WORLD and INFRASTRUCTURE TODAY. Initially, the participants networked and discussed matters of mutual interest.
Thereafter, they assembled at the impressive FICCI Commission Hall Auditorium. Pratap Padode, Managing Director, ASAPP Info Global Group, kicked off the proceedings for the evening.
(Left) Raghav Chandra, Chairman, NHAI, and (right) Pratap Padode, Managing Director, ASAPP Info Global Group, addressing the audience.
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CEO FORUM: (L-R) Raman Aggarwal, Anand Sundaresan, Vijay Sharma (moderator), VB Gadgil, and Rajesh Nath.
Delivering his welcome address to the gathering of over 100 dignitaries of industry professionals, he recounted the journey of EQUIPMENT INDIA, over the past nine years and the spirit of the publication to celebrate and felicitate the best performers of the construction equipment industry even under trying times. “These moments are to be treasured because they pave the way for future victories,” he said. He went on to talk about the smart cities initiative, which in turn will grow India in the future. While addressing the US delegation, he mentioned that India is a country of innovative “Jugad” where users deploy simple equipment like backhoe loaders beyond the imagination of the manufacturers and achieve the desired objectives He then paved the way for the CEO FORUM to discuss what’s next after the initial melodious sounds of some instruments being heard, and what is required is to complete the orchestra to play in harmony. Recounting the positive financial indicators for India, he brought into focus three key drivers: First, Seventh Pay Commission will put
money in the hands of people and have a multiplier effect; Second, public spending envisaged in the budget; and third, probability of a better monsoon this year, which make the scenario optimistic. He closed with a poetic note: “The year has begun on a promise and a prayer.Victory shall be for those who are fearless and those who dare.”
CEO-FORUM: Make in India – Fuel Infra An interactive discussion, moderated by Vijay Sharma, Director, McKinsey, the CEO- FORM panelists,
Anand Sundaresan, Vice Chairman & Managing Director, Schwing Stetter India Pvt Ltd and President, iCEMA; VB Gadgil, CEO and Managing Director, L&T Metro Hyderabad; Rajesh Nath, Managing Director, VDMA and Raman Aggarwal, Sr Vice President, SREI Equipment Finance, deliberated on the theme: Make in India- Fuel Infra. Raghav Chandra, Chairman, NHAI, the guest of honor for the event, unveiled the Anniversary Issue of EQUIPMENT INDIA in presence of
Crowning glory: (extreme left) Ramesh Palagiri, Managing Director, Wirtgen India, receiving, Man of the Year, award.
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EVENT REPORT
Unveiling EQUIPMENT INDIA Anniversary issue: (L-R) Pratap Padode, Samir Bansal, Rajesh Nath, Raghav Chandra, and Sameer Malhotra.
An august audience...
the jury members, Sameer Malhotra, CEO, Shriram Automall and Samir Bansal, General Manager, OffHighway Research. The 'Equipment India Best Seller Awards' were presented in 12 equipment categories: Sunil Sapru, Head Marketing, Ammann Apollo for Pavers; Jasmeet Singh, Head Marketing, JCB, for Backhoe Loaders; Abhijit Gupta, Managing Director, CNH Equipments
Shankar Srivastava, Managing Editor, EQUIPMENT INDIA, proposing the vote of thanks.
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for Compactors; DR Vishwanatha, Director, BEML, for Dozers and Rigid Dump Trucks; A Krishnakumar, Vice President-Sales & Marketing, Tata Hitachi for Hydraulic and Mini Excavators; Nitin Lall, General Manager, Atlas Copco, for Compressors; Sorab Aggarwal, Executive Director, ACE, for Cranes; Amit Bansal, Head Sales & Marketing, Caterpillar, for Loaders and Motor Graders and S Manjunath, Head Sales & Marketing, Doosan Bobcat for Skid Steer. And, stealing the show was Ramesh Palagiri, Managing Director, Wirtgen India, as he walked up the stage to receive the 'Man of The Year' award. In their acceptance speech, each proud winner dedicated their award to their customers.
While addressing the gathering, Raghav Chandra said, “Infrastructure cannot succeed without suitable equipment. Just as one requires manpower, one needs technology, you also require appropriate equipment to make this sector roll. Often the equipment and mechanised technology sector is ignored but I am perfectly sensitive to the fact that this is a critical component to move infrastructure forward.” Now as Chairman of NHAI, he is committed to move road construction at a fast pace by using the PPP model, behind which, the seminal thought has been to use the private sector innovations, technologies and life-cycle cost efficiencies. He said that roads and development is a priority for the government, and in India, the highways story will remain relevant for the next 15 years. Despite several complexities involved, he is committed to invest Rs 15 to 20 lakh crore in roads over the next 15 years. He concluded saying that the roads sector in India is booming, and urged the industry to encourage new entrants and create in India. Shankar Srivastava, Managing Editor, EQUIPMENT INDIA proposed the vote of thanks to all sponsors, participants and the guest of honour, to close the impressive show.
SPECIAL SECTION
PR TODAY PERTY CW
Business Intelligence for Realty Decision Makers
AFFORDABLE HOUSING: GAME CHANGER? A multi-pronged strategy is necessary to tackle the requirement of around 2 crore houses by 2022 estimated at `6 lakh per house. • Perspective: Johnson Controls • CSIR-NEERI in Nagpur achieves a four-star rating by SVA GRIHA • Interaction: QuikrHomes
Photo courtesy: Tata Value Homes
• Interaction: Amit Bhagat, CEO & Managing Director, ASK Property Investment Advisors...113 • Liases & Foras on the Real Estate Regulatory Bill...118 April 2016 Construction World
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AUGMENTING AFFORDABLE HOUSING
Photo courtesy: Residency Park in Mumbai by HDIL.
With ‘Housing for All’ a crying need for the country, and a priority for the government, it is time for a multi-pronged strategy that involves the private sector to bridge the demand-supply gap.
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A
QUICK BYTES
ffordable housing has been a buzzword in India for • About 15.2 per cent of the country’s urban decades now – but it has remained thus, just a population living in slums. word. Consequently, owning a decent home is • Requirement is largely concentrated in still a distant dream for many lower and even Tier-I and II cities. • Two crore houses required to be built by middle-income group families in urban India. As of 2022 with an estimated 6 lakh per house. now, the urban housing shortfall is nearly 20 million, resulting • $11.8-billion opportunity for the private in 15.2 per cent of India’s urban population (about 42.8 million sector in the urban affordable housing segment. persons) living in slums. With the urban population growing at 2.8 per cent, the need for housing will only increase, further widening the gap between demand and supply. With residential prices skyrocketing year-on-year, over 80 per cent of the homes built by private developers have become unaffordable for middle and lower-income groups. The reasons behind the grim scenario include lack of suitable policies, lopsided implementation of the schemes that were mooted, a nonconducive regulatory framework, rising land prices, lack of infrastructure where land is relatively cheaper, low access to loans for low-income group buyers, concentration on premium housing by private developers and lack of sustained efforts by the government. “There is a huge gap between demand and supply,” agrees Sachin Gulaty, Local Director-Strategic Consulting, JLL India. “While the supply-side constraints for affordable housing include lack of availability of land and finance at reasonable rates, demand drivers include the growing middle class and urbanisation. Private players have primarily targeted luxury, high-end and the upper-mid housing segment owing to the cost of land and higher returns that can be gained from such projects.”
Affordability analysis Interestingly, the very definition of an affordable home is in a state of flux. Affordability being a relative term, what it means and to whom have also undergone changes with different definitions and figures floating around. Worldwide, it has been accepted that affordable housing should address the housing needs of lower or middleincome households and affordability is defined by using three parameters: Income level, size of dwelling unit and price. “The term affordable housing generally refers to liveable low-cost housing, especially for the economically weaker section (EWS) and low-income group (LIG) households in India (households with income of less than Rs 2 lakh per annum),” elaborates Neeraj Bansal, Head-Real Estate and Partner, KPMG. “It is so because the existing housing shortage of almost 2 crore units in urban areas largely pertains to this section. It is estimated that this segment requires a liveable housing unit priced between Rs 3 lakh and Rs 15 lakh (depending upon configuration and size) with size ranging from 30 to 60 sq m, alongwith basic social and physical infrastructure. The requirement is largely concentrated in Tier-I and Tier II cities, and is largely standard across major cities.” With no clear-cut definition of the term affordable, affordability as a concept is generic and could have different meanings for people with different income levels, according to Gulaty. “Different agencies and countries have defined affordable housing as the economic potential of an individual to buy a house,” he says. “According to the RBI’s definition provided in July 2014, a house costing Rs 6.5 million and Rs 5 million in the metros and nonmetros, respectively, can be qualified as affordable housing. RBI also said that it will periodically review the definition of affordable India needs close to 7 million houses every year with 75 per cent housing on account of inflation. While most definitions for of this being in the affordable housing segment. affordable housing consider area, price and affordability of the Affordable housing demand in India is expected to surge at a CAGR occupier, the key idea as per our understanding should deal with of around 6.1 percent during 2015-2022. the minimum size (volume) of the habitable units, provision of basic By 2022 India will need 11 crore housing units. amenities, cost and location of the house. Affordable housing is About 30-35 per cent of housing cost consist of fees and taxes. what one can afford, as a measure of expenditure on housing, to Uttar Pradesh tops the list in affordable housing shortage with income of the household.” a scarcity of over 3 million urban housing units, followed by Apart from the conundrum surrounding the affordability factor, Maharashtra (1.9 million units) West Bengal, Andhra Pradesh and there has been no sustained focus on developing affordable Tamil Nadu (fall short by 1.3 million units each). housing from both the states and Centre.
AFFORDABLE HOUSING – Facts & Figures
• • • • •
• In the US and Canada, housing affordability is defined as a housing cost that does not exceed 30 per cent of a household’s gross income. Sources : Culled from various sources
Policy parameters First, many Indian states do not have an affordable housing policy. Even where there is a policy, it is largely sketchy. No doubt,
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Photo courtesy: Mahindra Lifespaces.
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Demand for affordable housing is at 535,400 units across Delhi-NCR, Mumbai (MMR), Bengaluru, Chennai, Hyderabad, Kolkata and Pune.
There is a huge gap between demand and supply.” - Sachin Gulaty, Local Director-Strategic Consulting, JLL INDIA
there have been several adhoc policies and schemes both at the Centre and state levels, like the Urban Land Ceiling Act (ULCA), National Urban Housing and Habitat Policy (NUHHP), Jawaharlal Nehru Urban Renewal Mission (JNNURM), Rajiv Awas Yojana (RAY), slum redevelopment, and other individual state schemes. In addition, state-level housing boards were established to specifically cater to the affordable housing segment. Yet the gap between demand and supply in the affordable segment has only been growing wider. Ineffective implementation and/or loopholes in the policy have been largely cited as the reason by industry pundits. Ironically, 2.4 lakh houses constructed for the urban poor at Rs 7,000 crore under JNNURM and RAY are lying vacant, the majority of which are in India’s highly urbanised states. The highest unoccupied dwellings are in Maharashtra (53,065) followed by Gujarat (26, 931) and Delhi (26,228). Lack of credit facility for purchasers is cited as a major reason for this. “At present, poor households do not have sufficient access to credit,” explains Bansal. “The credit evaluation process in the Indian financial
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Rajasthan has already delivered more than 2-lakh low-cost houses.” - Neeraj Bansal, Head - Real Estate and Partner, KPMG
system is largely document-driven. Most of these households do not have sufficient proof of income, making them ineligible for formal financing. Additionally, most are not aware of any such products.” Gulaty concurs, saying, “People who belong to the LIG and EWS segments have little access to organised finance. A large percentage of these people are employed in the unorganised sector and often lack proof of address, salary slips, etc. Therefore, they are perceived as a high-risk category and are unable to avail finance for purchase of homes.” Such deficiencies are now reportedly being addressed in the new Housing for All by 2022 scheme, launched by the Central Government in June 2015, which has now been rechristened Pradhan Mantri Awas Yojana. “This mission envisages enabling and facilitating affordable houses for all in urban cities by 2022. It is estimated that around 2 crore houses will be required to be built by 2022 with an estimated cost of Rs 6 lakh per house. The total amount required is estimated to be around Rs 12 lakh crore,” reveals Sanjeev Kumar, former mission
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The Central Government is expected to provide `1.5 lakh per house.”
The current shortage of housing units in this segment presents a `16-lakh-crore business opportunity to the developer.”
- Sanjeev Kumar, former mission director for Housing for All and ex-Joint Secretary, MINISTRY OF HOUSING & URBAN POVERTY ALLEVIATION.
director for Housing for All and ex-Joint Secretary Ministry of Housing & Urban Poverty Alleviation. He is currently Managing Director, Maharashtra State Electricity Distribution Co Ltd. The two major requirements for this mission – land and funds – will be met by acquiring land from various sources and increasing FSI in urban areas. As Kumar shares, “Land is envisaged to be made available by converting agricultural land to nonagricultural (NA) land for housing without specific permission from the revenue authority, if the land falls in NA zone in the master plan; by facilitating faster approval of layout and building plan; and making available land under encroachment and owned by various authorities available for urban housing using the PPP mode. Financial resources are expected to be raised primarily by individual beneficiaries assisted by both the Centre and state governments. The Central Government is expected to provide Rs 1.5 lakh per house. The state government and local bodies are expected to contribute significantly and individual beneficiaries are required to raise resources from banks. One of the verticals under the Housing for All mission is a credit-linked scheme, wherein a Government of India subsidy is given as grant to the individual beneficiary by way of interest subsidy if he or she borrows money from a bank or such institutions. Financial resources are required to be raised continuously and other avenues need to be scouted.” Obviously, this gigantic mission cannot be fulfilled without active participation from the private sector.
Potential prospects Global real-estate consultant Cushman & Wakefield estimates a $11.8-billion (Rs 75,800 crore) opportunity for the private sector in the urban affordable housing segment. In a report released in conjunction with CREDAI at NATCON 2015, Cushman pegs the demand for affordable housing at 535,400 units across Delhi-NCR, Mumbai (MMR), Bengaluru, Chennai, Hyderabad, Kolkata and Pune. This is based on demand for units in the price range of Rs 20-50 lakh in these cities, except for Mumbai where the range is between Rs 50-70 lakh. “The demand for homes in this sector is driven by the people who need a roof over their heads. Currently, there is a shortage of around 6 crore housing units in this segment presenting a Rs 16-lakh-crore business opportunity to the developer community. Considering the huge potential in this sector, the developer community will rise to meet the challenge and help the government in realising its vision of Housing For All by 2022,” assures Hariprakash Pandey, Senior Vice President-Finance, HDIL, which is developing Residency Park in Virar and Paradise
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- Hariprakash Pandey, Senior Vice-President - Finance, HDIL
HIGHLIGHTS OF DEEPAK PARIKH COMMITTEE RECOMMENDATIONS
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A High Level Task Force on affordable housing set up by the Indian Government under the chairmanship of Deepak Parekh, Chairman, Housing Development Finance Corporation Ltd recommended several measures in its reports submitted in 2008. Some of the major recommendations are listed below: Place affordable housing at the centre of public policy. Bring additional lands into urban usage on a regular basis. Simplify procedures of land acquisition and conversion of agricultural land for urban usage. Review Master Planning process and make necessary revisions for assessing land requirements and allocating for different uses, including affordable housing. Upward revision of FAR and FSI across cities commensurate with investment in infrastructure that it will necessitate. Implement in-situ development. Revamp State Housing Boards (SHB) and encourage them to play a more active role in affordable housing, even with public-private partnerships. Funds raised through land sale transactions by SHBs be ring fenced, with a defined proportion redeployed only for affordable housing. Impose a cess of 0.5 per cent on all central taxes to establish a dedicated Shelter Fund with the government providing a budgetary support of equal amount. Reinstate income tax deduction under Section 80 IB of the Income Tax Act for developers engaged in affordable housing projects. Reduce stamp duty rates and registration fee for affordable housing to 2 per cent ad valorem uniformly in all states Set up a housing finance company focusing on microfinance and upscale-existing micro finance companies. Establish real estate regulator, for monitoring and regulating the affordable housing segment.
City in Palghar and has in the pipeline Planet HDIL in Virar. The opportunities are tremendous, reiterates Mayur Shah, Member-Governing Council, MCHI-CREDAI. “Our estimates reveal that 76 per cent of urban housing needs until 2022 will be concentrated in just 10 states: Uttar Pradesh, Maharashtra, West Bengal, Andhra Pradesh (including Telangana), Tamil Nadu,
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Augmenting land supply, subsidising land costs, use of modern technology, rationalisation of regulations and simplification of related rules and procedures, tax and other incentives are the need of the hour.
Bihar, Rajasthan, Madhya Pradesh, Karnataka and Gujarat, contributing a 14.3-million housing, shortage of which the shortage in Maharashtra is estimated at 1.97 million houses. This opens up immense opportunities for developers and has the potential to take the country’s GDP growth into double digits.” The MCHI-CREDAI Mumbai chapter and the Maharashtra Government have signed an MoU at the Make in India Summit in February 2016, under which 28 developers have committed to construct 5.69 lakh affordable houses in MMR over the next three years, requiring a mammoth investment of Rs 1.1 trillion. In July 2015, the Shapoorji Pallonji Group partnered with Standard Chartered Private Equity, IFC, a member of the World Bank Group, and the Asian Development Bank and formed a JV for the development of affordable housing projects across India with a capital commitment of $200 million (equivalent to
No doubt, the private sector is all set to play a major role in the development of affordable housing. Hitherto, private players shied away from this segment for various reasons including low margins. “Under the current housing policy framework and market conditions (land cost, building bylaws, approval costs, limited funding options, construction cost, technology), developing liveable low-cost housing is financially unviable for the private sector,” avers Bansal. “Hence, low-cost housing projects have not come up in a big way.” Shah seconds this, saying, “The most important stumbling blocks are scarcity of land and cost of available land. The Government Ready Reckoner Rates only compound the problem. Lack of a unified and effective policy framework for affordable
About 76% of urban housing needs until 2022, will be concentrated in 10 states.”
A single-window clearance system is the need of the hour. .”
- Mayur Shah, Member-Governing Council, MCHI-CREDAI
- Rohit Poddar, Managing Director, PODDAR HOUSING
Rs 1,250 crore). In January this year, the first project under this JV was launched in Howrah. “Joyville Howrah is our first project under this partnership for building affordable housing spaces in India,” states Venkatesh Gopalkrishnan, Business Head–Joyville Shapoorji. “Affordable housing is distinct from the Indian high-end, real-estate market in terms of its market dynamics. We see a huge demand and need across the country for affordable homes. This venture marks the beginning of a journey for the Shapoorji Pallonji Group to realise the dreams of the growing middle-class to own a home. It will also contribute to the Prime Minister’s Housing For All mission of providing 20 million houses by 2020.”
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housing, ever increasing construction cost, delays in approvals, manifold increase in government charges and taxes linked to approval of development plans, inadequate long-term funding across the project life-cycle and non-availability of funding for land purchase from banking sources all take away the affordability quotient of any project.” Land is the most critical cost in housing projects, points out Gulati. “Land cost in urban city centres is high, often constituting over 50 per cent of the project cost for developers, which makes affordable housing projects unviable. Many marketable land parcels in key areas owned by public entities are lying unutilised or underutilised. Even construction costs form a large factor in making projects unviable, as profit margins for the developer
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Many land parcels available in peri-urban areas can be used for affordable housing.” - Sriram Mahadevan, Business HeadHappinest, MAHINDRA LIFESPACES
We see a huge demand and need across the country for affordable homes.” - Venkatesh Gopalkrishnan, Business Head–JOYVILLE SHAPOORJI
PPP. Rajasthan has already delivered more than 2-lakh low-cost increase exponentially compared to construction costs when houses.” PPP is also a major option being considered by the evaluating projects ranging from the affordable to mid-segment government for the Housing for All mission. To attract private to premium and luxury segments. A control on these costs is also players, the government governmen is planning to introduce crucial for any housing project to stay affordable.” several measures, according to Sanjeev Kumar: Sriram Mahadevan, Businesss HeadDeepak Parikh “The measure measures being pursued by the Ministry s, adds his Happinest, Mahindra Lifespaces, Committee’s definition of affordable of Housing include single-window ow suggestions: “Timely, single-window housing: clearance, clearan deemed NA permission and clearance and time-bound, fastfinancial n, nanc incentives like credit-linked tracked approvals, self-certification, EWS/LIG categories of subsidy subs schemes, developing slum development of ‘Affordable households land Housing Zones’ with enabling lan for housing under PPP, A unit with a carpet area between 300 and 600 sq ft, with (i) the infrastructure status, etc.” zoning conversion provisions, inf cost not exceeding four times the household gross annual income and promotion of innovative (ii) EMI/rent not exceeding 30 per cent of the household’s gross construction technology Peripheral P monthly income. Household size: Five. providers co-located with the possibilities p projects can be a win-win Development of peripheral MIG categories of households solution. In addition, reduction areas is also another suggestion are in stamp duty, exemption from being put forward by industry be A unit with a carpet area not exceeding 1,200 sq ft, with sales tax and a reduction or waiverr professionals. “With the level of prof (i) the cost not exceeding five times the household gross in registration charges, VAT, etc, urbanisation being witnessed in the urban annual income. EMI or rent not exceeding 40 per cent of which contribute to about 30-35 per we MMR, w need to look at developing the household’s gross monthly income. cent of home ownership costs should peripheral markets,” says Shah. “The ould periphera Household size: Five members. also be considered. Service tax exemption emption government will have to create both civic proposal in the recent Union Budget before these locations get is a good and social infrastructure infrastr move in this direction that has the potential to reduce the start finding preference among consumers. Developers cost of home ownership.” are still doing their bit and over 60 per cent of the development Even the present Budget has not addressed many of these that has happened over the past couple of years has been issues, aver industry professionals. “The tax holiday announced by concentrated in peripheral locations.” the government on profits made from affordable housing Mahadevan too expresses a similar view: “As affordable projects and some service tax exemptions are definitely welcome housing projects would mostly be coming up in peri-urban areas, steps,” points out Pandey. “But developers are also looking for fast it is important to focus on last-mile connectivity and approvals that will improve their margins.” infrastructure development. With focused planning and According to Rohit Poddar, Managing Director, Poddar execution of cost-effective connectivity to peri-urban areas, many Housing, “A single-window clearance system is the need of the land parcels available in these areas can then be used for hour. Additionally, a serious rationalisation of taxes and a clear affordable housing.” Mahindra Spaces is developing two projects: and transparent Development Control Rule for all of Maharashtra Happinest Avadi in Chennai and Happinest Boisar near Mumbai. are necessary.” He believes the PPP model will work well in this A project in Palghar is also in the pipeline. sector if the government can consider contributing land, civic infra such as water and electricity, and speed up approvals. Future forward Poddar has developed two projects and three more are under Evidently, a multi-pronged strategy is necessary to tackle the development in and around Mumbai including Poddar demand for affordable housing. Augmenting land supply, Evergreens (Badlapur) and Poddar Navjeevan (Atgaon). Some subsidising land costs, containing costs of construction, use more are in the pipeline, including Svakam Vihar in Bhivpuri. of modern technology, rationalisation of regulations governing “PPP is a good mechanism and we have witnessed some the housing sector, and simplification of related rules and success stories in the recent past,” affirms Bansal. “The leading procedures, tax and other incentives are the need of the hour. states are Rajasthan and Haryana, which have launched - JANAKI KRISHNAMOORTHI affordable housing projects for EWS and LIG households under To share your views on the Indian Affordable Housing scenario, write in at feedback@ASAPPmedia.com April 2016 Construction World
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REAL ESTATE UPDATE KDMC BUYS REALTY WORTH `11 CR FOR `3 The Kalyan-Dombivli Municipal Corporation (KDMC) has acquired three properties collectively worth around Rs 11 crore belonging to tax defaulters for Rs 3. The civic corporation has started taking action against property tax defaulters and recovering arrears. CONTACT: KDMC. TEL: 0251-220 4065. WEBSITE: WWW.KDMC.GOV.IN
DDA PLANS HOUSING SCHEMES The Delhi Development Authority (DDA) plans to build new housing projects in Dwarka,Vasant Kunj and Rohini. The authority has earmarked Rs 3,753.87 crore for construction of the flats in its 2016-17 budget. After the poor response to its 2014 affordable housing scheme aimed for the
middle class and lower middle class – 10,000 houses were returned by the allottees – the DDA is planning to come up with a new scheme to resell these flats. CONTACT: DDA. TEL: 011-2469 9479. WEBSITE: WWW.DDA.ORG.IN
GOVT BUILDS 10 LAKH HOUSES Around 1,017,423 houses have so far been built for urban poor under different housing schemes such as the 2005-06 Jawaharlal Nehru Urban Renewal Mission (JNNURM) and Rajiv Awas Yojana (RAY) launched in 2013-14, as against total 1,392,589 houses sanctioned. The housing components of JNNURM include Basic Services to the Urban Poor (BSUP) and Integrated Housing and Slum Development Programme (IHSDP) implemented in 943 cities and towns,
while RAY is being implemented in another 122 cities and towns. CONTACT: GOVERNMENT OF INDIA. WEBSITE: WWW.INDIA.GOV.IN
ANDHRA PRADESH TO BUILD 4 LAKH HOUSES The Andhra Pradesh Government has decided to introduce highly subsidised housing scheme under which beneficiaries will get a two-bedroom flat for about Rs 3.5 lakh. The government will spend Rs 5.5 lakh per flat, but it will collect only Rs 3.5 lakh from each of the allottees. The proposed massive housing programme will cost the exchequer Rs 16,000 crore. The apartment complexes will come up on government land in all towns and major villages. CONTACT: GOVERNMENT OF ANDHRA PRADESH. WEBSITE: WWW.APONLINE.GOV.IN
PUNE BUILDERS PUSH FOR AFFORDABLE HOUSING
Lemon Tree Hotels expands portfolio Lemon Tree Hotels has launched its first resort property in Delhi-NCR at Tarudhan Valley in Manesar and is planning to set up more resorts under the Lemon Tree brand. As per the management agreement, Carnation Hotels, the hotel management JV partner of Lemon Tree Hotels, has taken over the management of the resort, developed and owned by the Group Silverglades. Spread around 72 acre, the resort has 70 rooms including 18 studio apartments. CONTACT: LEMON TREE HOTELS. TEL: 011-4605 0101. WEBSITE: WWW.LEMONTREEHOTELS.COM
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The Pune chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI) will request the government to make a few changes in the Affordable Housing Bill and seek clarifications on a few points. The body will request the government to allocate five-six years to complete projects from the date of approval. It will also urge the government to remove minimum alternate tax, stamp duty, registration and value-added tax. CONTACT: CREDAI. TEL: 011-4312 6262. WEBSITE: WWW.CREDAI.ORG
PUNE CANTONMENT BOARD TO RETRIEVE LEASED PROPERTIES The Pune Cantonment Board (PCB) has decided to retrieve about two dozen properties – both residential and commercial – whose lease has either expired or the lessees have not replied to notices sent by the board. All properties
QUICK PICKS • Government to come out with a modern tenancy law to promote rental housing in urban areas after taking into account the contemporary requirements of the tenants. • Punjab Government announces few incentives for affordable housing projects about nine months ahead of the next assembly elections. • Pune housing rates grows second-fastest in the country after Guwahati, according to the National Housing Bank’s (NHB) Residex, its benchmark index for tracking real estate prices in 26 cities. • Ready to move in homes priced 5 per cent higher over their under construction peers, with Greater Noida commanding the highest difference in price of 21 per cent, according to Magicbricks.com’s PropIndex report. • Homebuyers in Ghaziabad and twin cities of Noida and Greater Noida start an online campaign to get the Real Estate Regulatory Agency (RERA) Bill passed during the Budget session of Parliament. • Sterling Holidays Resorts acquires Nature Trails Resorts, an adventure holiday company that operates resorts at five destinations in Maharashtra. • Hyatt Hotels Corporation launches a new brand, The Unbound Collection, which will include a portfolio of independent new and existing upper-upscale and luxury properties. • Indiabulls Real Estate to raise `100 crore through private placement of non-convertible debentures (NCDs).
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REAL ESTATE UPDATE 12 sites earmarked for LIG housing projects Large open plots in Chandkheda, Jodhpurgam and Vejalpur areas in Ahmedabad will soon be occupied by low-income group (LIG) housing projects. A list of 12 priority sites has been earmarked for these projects. The plots earmarked in Chandkheda include plots located near Sharnam residency, Swagat Bungalows, Kavita society, Dhanvihar society and Shubh Darshan Apartment. in the civil area of the Pune Cantonment are managed by PCB and owned by ministry of defence, through establishments like the Defence Estates Officer. CONTACT: PUNE CANTONMENT BOARD. TEL: 020- 2645 2159. WEBSITE: WWW. PUNECANTONMENTBOARD.ORG
OBEROI GROUP TO MANAGE LUXURY RESORT The Oberoi Group has inked a management contract with Bengaluru-based real estate developer Subramanya Construction & Development Company to operate a luxury resort in Maldives. The two parties have signed an MoU with the Government of Maldives to build the resort property. The investment for acquisition and development of the resort will be undertaken by SCDCL. CONTACT: OBEROI GROUP. TEL: 011-2389 0606. WEBSITE: WWW.OBEROIHOTELS.COM
and will also feature a series of private-function rooms, a spa and fitness facility. CONTACT: HINDUJA GROUP. TEL: 022-2496 0707. WEBSITE: WWW.HINDUJAGROUP.COM
WUDSTAY VENTURES INTO RETIREMENT HOMES Budget hotel aggregator WudStay has introduced retirement living accommodations.The company has signed up with 25 retirement homes in Delhi NCR and Mumbai, offering around 750 rooms. The existing standalone retirement homes will be partnered under a revenue share model and standardised in terms of ensuring
basic hygiene, training the staff to attend to the guests, arranging doctor and dietician visits to the property, etc.
PROJECT BY TATA HOUSING Tata Housing has launched a residential project, Avaha in Mumbai. The project comprises two and three-BHK apartments ranging from 927 sq ft to 1,490 sq ft. CONTACT: TATA HOUSING. TEL: 022-6661 4444.
MARRIOTT INTERNATIONAL TO LAUNCH AC HOTELS BRAND IN INDIA Marriott International, Inc will launch its popular design-focused AC Hotels by Marriott brand in India this year. It is identifying the place and the project will come up in any metro cities in India. The AC Hotels brand will be one of the seven brands that the company had planned to launch in India this year. It will concentrate on increasing the brand portfolio. There are currently five AC Hotels by Marriott in the company’s global development pipeline. The
HINDUJA GROUP ACQUIRES LONDON BUILDING The Hinduja Group has acquired the heritage building, Old War Office from the British Ministry of Defence. The 580,000 sq ft building, spread over seven floors, is connected by over 3 km of corridors. The heritage building with 1,100 rooms will be restored and re-developed by The Hinduja Group into a five-star hotel and residential apartments,
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Carlson Rezidor eyes expansion Carlson Rezidor Hotel Group is planning to build 170 properties in Tier-II and Tier-III cities by 2020. The group has 45 hotels in pipeline across the country. The properties will be mainly under ‘Country Inns and Suites by Carlson’ and ‘Park Inn by Radisson’ brands. CONTACT: CARLSON REZIDOR HOTEL GROUP. TEL: 0124-472 3300. WEBSITE: WWW.CARLSONREZIDOR.COM
QUICK PICKS • Colonies outside the Walled City area and falling under the Jaipur Municipal Corporation periphery to have new building bylaws of their own. • SEBI allows foreign portfolio investors to invest in newly launched products – REITs, InvITs and AIFs – and also permits them to acquire corporate bonds under default. • Milestone Capital Advisors makes an exit from a commercial property in Bengaluru’s Electronic City Phase-I at `150 crore. • Mahindra Lifespace Developers enters into consent terms with Rishi Gagan Trust and others, to settle their issues with regards to a property in South Mumbai. • Lodha Group sells over 2,000 homes prior to launch of its proposed project on 88-acre in Thane, Mumbai. • Cinnamon Hotels & Resorts, a Sri Lankan chain, to set up two hotels in the country by 2020. • Apeejay Surrendra Park Hotels to add 17 properties under its mid-segment brand ‘Zone by the Park’ by 2020 as part of its expansion plans across the country. •North Delhi Municipal Corporation attaches 350 properties across its six zones for non-payment of tax dues by the owners. • Nahar Group announces its new luxury residential project ‘Excalibur’ located at Mahalaxmi in Mumbai; spread over 1 lakh sq ft with each flat measuring around 2,400 sq ft with a total of 36 luxury flats. company opened its Courtyard by Marriott in Raipur, the 14th property for the brand in India. Five more properties of the company will be opened in the current financial year in the country.
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“We have announced a closure of `1,400 crore domestic funds in February.” - Amit Bhagat, CEO & Managing Director, ASK Property Investment Advisors
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stablished in 1983, ASK Group is known for its strong research-based investment management, asset management, private equity, and more. Currently managing assets of over Rs 15,000 crore across seven offices in India, it believes in building long-term value. What’s more, ASK Property Investment Advisors invested about Rs 600 crore during the last year through three equity deals in real-estate projects in the country. Amit Bhagat, CEO & Managing Director, ASK Property Investment Advisors, shares more on the funding scenario for the real-estate market and solutions for the long term, in conversation with SERAPHINA D’SOUZA.
Please share an overview of the scenario for investments in the real-estate sector in India.
The current times are challenging and difficult due to dismal interest of investors and no urgency from users. We have seen the boom period of 2002-2008, which also included irrational exuberance by investors and private equity players. There were more than 60 real estate private equity players in the beginning of 2008, whereas the current players in 2016 are not more than 12. Post global crisis of 2008, all private equity players have changed the focus to structured debt. This change in strategy, combined with mushrooming of NBFC’s (non banking finance companies), have led to increased debt with every real-estate player. The quantum of debt infused through these so called private equity funds and NBFC’s will be approximately US$ 7-10 billion post global crisis. The industry needs debt, but available is high cost debt only. Majority of the developers are equally to be blamed for this crisis, since they have not focussed on execution, quality, delivery, affordability, post delivery maintenance and customer satisfaction. When the investor has withdrawn and user is in no hurry to buy, the developer is not able
to manage the cash flows.The quantum of capital, which has been raised and put to use by private equity, NBFC’s, banks, IPO listing and high net worth individuals, is also leading to increased under construction and completed supply of residential units. Consolidation of the industry has begun, because developers who have an impeccable track record of delivery, quality and experience will be able to sell their product. Also, real-estate regulation is a reality, which will bring-in governance and safeguard the lifetime savings of the buyer. The enforcement of these regulations will put further pressure on developers to optimise their capital efficiencies. On the commercial side, we have seen interest of institutional, sovereign and large private equity funds for the last two-three years due to no construction risk, monthly fixed rentals, quality of tenant and future expectation of reduction in interest rates. REIT regulations and the recent announcement of exemption from dividend distribution tax has paved the way for listing of REITs in India, and the potential of grade A assets likely to be listed can be in the range of $10-15 billion. Introduce us to the services and research you provide for the sector.
We are a private equity fund house focussed in the mid-segment residential real-estate space. We are investing in project-level partnership with strong regional players and targeting an end product of Rs 25 lakh to Rs 1 crore in Pune, Bengaluru, Chennai and NCR. For Mumbai, the ticket size is Rs 1 crore to Rs 2 crore. We are focussed on equity right from inception and have been clear that the industry requires equity and not an overdose of debt. The end product price may not go up; and the focus has to be on margin of profit by selecting the right growth corridor or location, with a strong regional player at entry price with a margin of safety. Cash flows are important, and if you can manage negative working capital, the profits are satisfactory. Along with primary research from a third party, we have our inhouse asset management team in every city that does a secondary market search and then validates the findings. We have been in this sector for 20 years and have the experience of lending and advising in all major cities of the country. Private equity funds are finding it hard to raise funds overseas with investors not confident that they will make decent money. Please share your take on this.
Sovereign players and large institutions and funds
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PR CW PERTY TODAY Interaction have set up shop here, and small players have taken a backseat. Global investors are not directly going through India-dedicated funds, but prefer giving money to large players for emerging market allocation. Unless one has an impeccable track record of delivering money back to investors, raising of additional funds is difficult. The due diligence will be extensive for the team, process, strategy, risk management framework, asset management focus, performance as delivery of returns, etc; everything is taken into account before allocation. Are investors cautious about the sector?
Investors are cautious, especially the retail investors due to completion risk, governance, over commitment and excessive leverage. What about the interest of foreign investors in the real-estate sector?
After the liberalisation of Foreign Direct Investment Regulations, all impediments faced by foreign investors have been resolved by the government. Foreign investor interest is coming back, but they are not sure which player to rely on, and hence, conducting comprehensive due diligence. How much has the sector developed, and do you see the mindset changing in future?
India is one of the only bright spot among emerging markets. Registration data for major cities is also intact and reflects stable inherent demand from actual users. With macro fundamentals being in place and micro data expected to show positive results, we have seen the interest of large institutional and sovereign players, and can expect to see a large number of other investors to follow in 2016 and 17. This is a counter-cyclical opportunity. But as the number of investors increase, the opportunity will diminish gradually over the next 24 months. The process of fund closures that took six to eight months earlier is now taking 24 months.
Domestic funds take almost 9-12 months; and for offshore, it takes 18-24 months due to comprehensive evaluation by investors.
While domestic funds take almost 9-12 months for closure, offshore funds take 18-24 months.
Also, any plans to look at commercial?
Retail malls are going through a churn because of e-commerce. So, few malls completely owned by developers will see successful revenue sharing model. In this sector, the yield expectation has to be less and one needs long-term money. SEZs and commercial office also require a huge amount and long-term institutional capital, which is not available in domestic markets. We have stayed away from commercial because of the absence of the REITs and have focused on liquidity-driven strategy. What’s your take on the Real-Estate Bill and the 2016 Budget?
The Bill will actually increase demand for equity because of requirement of timely delivery and imposition of delayed interest payable to buyer and penalty by the regulator. These are user-friendly regulations. Regulation is going to be healthy for the industry; it will bring in more investors. We have seen it in mutual funds, in telecom and many other sectors. Also, the Budget has clearly defined affordable housing as the focus, for which tax exemption is provided. REIT has also been exempted from dividend distribution tax and is being encouraged because they unlock the capital of the banking system.
You recently phased funds for domestic and off-shore investors for mid-segment housing projects. Why only mid-segment housing?
We have just announced closure of the third domestic fund of Rs 1,400 crore. We are raising off-shore funds as well. We have stuck to mid-segment because the entire growth story is about middle-income housing, and affordability is important. It is the middle-class which is driving the India story in the consumption space; and, we will stick to this.
Where is the market heading and what are your expectations?
With enforcement of regulation, real-estate will emerge as a more matured sector with large players and will attract institutional capital.
One may not see too much capital appreciation in prices of residential units. Values may remain stable in the short or medium term. Individual investors should not rely on immediate appreciation. During consolidation, everyone will not make money. And, we have to get aligned to this new paradigm shift in reality.With an enforcement of regulation, this will emerge as a more matured sector with many large players, and will attract institutional capital.
To share your views on this interview, write in at feedback@ConstructionWorld.in
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RESIDENTIAL AND COMMERCIAL PROPERTY RATES MUMBAI South Mumbai
Residential *`/sq ft
Commercial *`/sq ft
Central Suburbs
Residential *`/sq ft
Commercial *`/sq ft
Churchgate
32,000 - 50,000
27,000 - 30,000
Chembur
15,000 - 17,000
16,000 - 22,500
Cuffe Parade
67,000 - 69,000
25,000 - 30,000
Ghatkopar
17,430 - 21,280
14,800 - 17,500
Colaba
42,000 - 46,000
25,000 - 30,000
Kurla
12,470 - 16,250
8,000 - 12,000
Dadar
29,000 - 32,000
19,000 - 25,000
Sion
17,000 - 22,000
15,000 - 22,000
Prabhadevi
35,500 - 46,000
26,500 - 35,000
Wadala
19,820 - 24,320
Nariman Point
58,000 - 92,000
32,000 - 35,000
Navi Mumbai
Napean Sea Road
68,000 - 72,500
26,000 - 50,000
Residential *`/sq ft
Commercial *`/sq ft
Airoli
9,040 - 11,170
7,000 - 12,000
Residential *`/sq ft
Commercial *`/sq ft
CBD Belapur
6,000 - 9,000
9,490 - 13,945
Andheri (E/W)
14,740 - 18,450
16,300 - 18,500
Kharghar
7,160 - 9,070
8,199 - 13,308
Bandra (E/W)
38,930 - 51,070
25,000 - 30,000
Nerul
7,000 - 10,000
Borivali (E/W)
12,880 - 16,290
16,350 - 16,000
Panvel
3,000 - 6,000
6,480 - 8,000
Kandivali (E/W)
11,000 - 12,000
10,000 - 14,000
Vashi
9,000 - 12,000
9,108 - 15,297
Khar (E/W)
36,180 - 46,960
18,000 - 25,000
Kamothe
5,970 - 6,950
6,000 - 12,000
Mahim (E/W)
26,980 - 34,940
15,000 - 22,000
Kalamboli
4,000 - 9,000
4,500 - 7,500
Malad
12,000 - 14,000
12,700 - 14,500
Sanpada
8,000 - 10,000
Goregaon (E/W)
13,000 - 17,000
12,000 - 15,000
Juinagar
8,670 - 11,140
5,000 - 10,000
Vile Parle (E/W)
25,790 - 33,310
17,500 - 24,000
Koperkhairne
9,120 - 11,410
7,000 - 12,000
Western Suburbs
NA
Contacts: Bhavin Kanabar, Space Realtors (India) Pvt Ltd, Mumbai. Tel: 022-4299 9999. Mobile: (0) 99677 80009. Website: www.spacerealtors.in Neeraj Agarwal, Sunny Real Estate Consultants. Navi Mumbai. Mobile: (0) 97027 33333. Website: www.sunnyconsultants.com * The rates are subject to change based on the market ďŹ&#x201A;uctuations.
April 2016 Construction World
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PR CW PERTY TODAY Property Rates
KOLKATA Kolkata
Residential *`/sq ft
Alipore
16,000 - 22,000
9,000 - 11,000
AJC Bose Road
14,000 - 16,000
13,000 - 15,000
Ballygunge
16,000 - 22,000
9,000 - 11,000
4,000 - 5,000
7,500 - 8,500
8,000 - 11,000
8,000 - 10,000
15,000 - 20,000
8,000 - 9,000
Garcha Road
7,000 - 9,000
7,000 - 9,000
Kaikhali VIP Road
4,500 - 5,500
5,000 - 7,000
Lake Town
6,000 - 7,500
7,000 - 8,000
Naktala Road
4,500 - 5,500
5,000 - 7,000
New Alipore
8,000 - 10,000
8,000 - 10,000
Park Street
16,000 - 18,000
17,000 - 20,000
Prince Anwar Shah Rd
9,000 - 12,000
Behala Bhowanipore Belvedere Road (Alipore)
Salt Lake (Sec V) New Town (Rajarhat)
Commercial *`/sq ft
7,000 - 10,000
NA
4,000-5,000
4,000 - 5,000
3,500 - 4,500
Shakespeare Sarani
16,000 - 19,000
13,000 - 15,000
Thakurpukur
4,000 - 4,800
5,500 - 6,500
Baguihati
4,000 - 5,500
4,000 - 5,000
Sealdah
6,000 - 7,000
6,000 - 7,000
8,000 - 10,000
8,000 - 10,000
Garia
3,500 - 5,500
3,500 - 6,000
Shyambazar
6,000 - 7,000
6,000 - 7,500
Park Circus Connector
Contact: Pioneer Property Management Ltd, Kolkata. T: 033-4002 5555, 4018 5555, www.pioneerproperty.in * The rates are subject to change based on the market ďŹ&#x201A;uctuations.
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www.CWPropertyToday.com
DELHI Delhi
Residential *`/sq Yard
Connaught Place
550,000 - 910,000
Chanakyapuri Defence Colony Dwarka
CHENNAI Commercial *`/sq ft 18,500 - 38,500
Residential *`/sq ft
Commercial *`/sq ft
Alwarpet
12,030 - 21,856
17,054 - 20,460
Anna Nagar
8,396 - 13,305
13,542 - 14,744
Ashok Nagar
6,114 - 10,238
15,364 - 15,971
1,050,000 - 1,350,000
24,500 - 42,500
650,000 - 840,000
31,000 - 48,000
Besant Nagar
10,818 - 17,068
11,458 - 16,500
10,500 - 30,600
Egmore
13,183 - 18,322
13,323 - 14,766
Kilpauk
10,090 - 13,060
17,327 - 18,934
Guindy
9,400 - 11,930
11,000 - 11,313
160,000 - 340,000
Greater Kailash
450,000 - 525,000
30,000 - 50,000
Hauz Khas
400,000 - 500,000
24,000 - 45,000
Janpath
Chennai
NA
24,500 - 44,000
Kodambakkam Lloyds Road Mylapore
Kalkaji
400,000 - 480,000
11,079 - 19,569
13,323 - 14,766
4,909 - 7,506
5,000 - 7,500
Perungudi
5,016 - 7,692
3,473 - 7,661
Nungambakkam
10,749 - 18,491
13,323 - 14,766
Raja Annamalaipuram
13,008 - 18,056
13,323 - 14,766
8,404 - 14,522
12,000 - 16,000
18,000 - 45,500
Rajendra Nagar
225,500 - 330,500
17,000 - 31,000
Saket
455,000 - 575,000
23,500 - 40,500
Vasant Vihar
675,000 - 850,000
22,400 - 42,700
T Nagar Tambaram
3,273 - 4,796
6,562 - 7,000
8,274 - 13,616
7,500 - 13,000
5,401 - 9,502
7,045 - 8,594
Alwarpet
16,000 - 32,000
17,000 - 30,000
Anna Nagar
12,500 - 18,000
13,000 - 17,000
Ashok Nagar
7,500 - 15,000
8,500 - 16,000
Besant Nagar
10,000 - 18,000
11,000 - 16,500
Thiruvanmiyur NCR
Velachery 45,100 - 140,500
7,000 - 10,100
55,000 - 255,000
Noida
10,000 - 17,000
Mugappair
250,000 - 525,000
Gurgaon
7,500 - 13,500
9,000 - 18,000
12,000 - 20,500
Karol Bagh
Ghaziabad
5,622 - 9,338
6,500 - 60,500
45,400 - 285,000
8,000 - 35,500
Contacts: Ashwani Singh Virk, Jagson Realtors. Tel: 011-4175 1117. Mobile: (0) 98101 94724.
Contacts: Dream Castle Services Pvt Ltd. Tel: 044-4344 6565, 4340 6262, 080-4038 0555. Mobile: (0) 95510 79107. Website: www.dreamcastleservices.com
* The rates are subject to change based on the market ďŹ&#x201A;uctuations.
ÂŽ
April 2016 Construction World
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PR CW PERTY TODAY Guest Article
A BRIDGE OF HOPE
M
arch ushered in a fresh lease of Transparency Accountability Efficiency life for the Indian real-estate Enterprise Details ‘Likely period of time’ Timely completion sector with the much awaited within which promoter will lead to reduced Real-Estate Regulatory Bill Approvals Layout plan undertakes to complete speculation and sales at getting a nod from both phase-wise. the project or phase justified price points. Houses. The bill is based on three major thereof. foundation stones: Transparency, Development Work to Deception in prices will Accountability and Efficiency. be executed, proposed Minimum 70% of go as stock will be sold The benefits of the bill will be facilities. realisation to be at carpet area. In tune revealed in a domino effect not only deposited in separate with practices in across the realty sector but the economy Details of Professionals bank account to cover developed world. at large. From a bird’s eye view, it is quite and Real Estate Agents. the cost of construction. evident that increased accountability will Diversion of funds or be positive for all across the value chain. Declarations of Title and Builders will pay interest proceeds to different For instance, with increased disclosures encumbrances. to home buyers for projects and other and focus on corporate governance after any default or delays motives like land the establishment of SEBI, the scams in No of units to be at the same rate they accumulation will the stock market have reduced developed and their charge them. be curbed. considerably compared to the early 1990s. carpet area. Compulsory disclosures and Builders will be liable for registration ensure transparency, while structural defect for upto taking responsibility in case of any fi ve years. unwarranted deviations in the process ensures accountability. Together, these Regulatory Authorities proposed to be elements infuse efficiency by discarding Huge impact on the set up in capital cities. This reduces the any kind of deception in prices. residential market cost of litigation and makes the process First, sales will happen on carpet area, Based on our data, Urban convenient for buyers. which is a practice followed in Development Minister M Venkaiah developed countries such as Singapore, New launches across 27 cities the UK, etc. Second, the escrow account will help curb diversion Calendar Year No of Projects Units Launched Value of Units Launched (`crore) and misuse of funds, thus ruling out 2011 2,640 373,501 227,744 speculative practices. 2012 3,705 455,114 280,538 An important element of the bill is 2013 4,488 502,671 336,472 the redress mechanism. It envisages establishment of a fast-track dispute 2014 4,344 513,688 302,487 resolution mechanism for settlement of 2015 2,349 328,376 222,578 disputes through adjudicating officers and Total 17,526 2,173,350 1,369,820 the Appellate Tribunal. For the redress of grievances, buyers can now approach Source: Liases Foras consumer courts available at district level Cities covered: MMR (Mumbai Metropolitan Region), NCR (National Capital Region), Bengaluru, Chennai, Pune, Ahmedabad, Hyderabad, Surat, Kolkata, Chandigarh, Vadodara, Jaipur, Indore, across the country instead of only the Lucknow, Bhopal, Nagpur, Coimbatore, Nashik, Goa, Kochi, Mangalore, Thiruvananthapuram, Palghar, Boisar, Kanpur, Bhubaneswar, Rajkot, Patna.
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Construction World April 2016
www.CWPropertyToday.com
PANKAJ KAPOOR explains the benefits of the much-awaited Real Estate Regulatory Bill.
Naidu said, “As per available information for 27 major cities including 15 capitals, 2,349 to 4,488 new housing projects were launched every year between 2011 and 2015. Thus, in these 27 cities during these past five years, a total of 17,526 projects were launched with a total investment value of Rs 13,69,820 crore.”
standard is maintained and transactions monitored by a regulator. Moreover, project delays are the biggest menace for Indian real estate and one of the key reasons for sky-high prices. As far as responsibility for delays is concerned, it lies both with the developer as well as government authorities. Thus, if we
look at a broader aspect, delays on execution also have a negative bearing on India’s GDP. For our analysis, we have considered all the total supply across all the 27 cities under our coverage universe. About 34 per cent of this supply is over 12 months delayed. This estimated delay
Statistics of Delays (total supply figures in mn sq ft) Cities
NIL Launched in 1 year
More than 1 year
Less than 12 Months
12-24
24-36
36-48
48-60
More than 60 Months
Grand Total
NCR
65
140
201
195
111
84
21
16
833
MMR
59
95
130
83
35
27
19
20
466
Bengaluru
73
129
108
67
14
8
8
2
409
Pune
44
48
102
45
12
5
2
2
260
Ahmedabad
33
52
73
33
7
3
0
0
202
Chennai
12
59
72
26
11
5
3
1
190
Hyderabad
23
17
57
25
17
6
9
13
168
Surat
20
39
32
6
1
0
0
0
98
Kolkata
11
25
30
12
9
5
0
0
92
Bhopal
8
32
29
11
1
0
0
0
81
Vadodara
14
28
23
4
0
0
0
0
69
Chandigarh
3
10
26
15
7
4
0
0
65
Jaipur
7
21
20
10
4
0
0
0
62
Other cities*
24
62
98
47
15
8
3
2
260
Grand Total
396
758
1,001
579
244
155
65
57
3,255
%
12%
23%
31%
18%
8%
5%
2%
2%
100%
Source: Liases Foras. *Lucknow, Indore, Nagpur, Nashik, Kochi, Bhubaneshwar, Coimbatore, Mangalore, Patna, Thiruvananthapuram, Goa, Kanpur.
Impact on economy The Indian economy opened up to the world about two decades ago and we want foreign funds to roll in. Thus, it becomes imperative that a global
Total area delayed more than 12 months
1,100 (mn sq ft)
Cost to Economy (`crore)*
165,064
Proportion of GDP (2014-15) at current prices**
1.32%
* Cost to Economy is estimated at construction and other cost of `1,500 per sq ft **Estimated GDP 2014-15, at current prices is `125.41 lakh crore (Source: Central Statistics Office) Source: Liases Foras
of residential projects amounts to 1.32 per cent of GDP (2014-15) at current prices. The construction and sale of an apartment, the root of the real-estate sector, has the capacity to catapult
April 2016 Construction World
119
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PR CW PERTY TODAY Guest Article
3
The three dimensional way... 2
1 Increased sale of houses create ancillary demand. There will be automatic demand for furniture, consumer durables, ďŹ t-outs, automobiles, ďŹ bre optics and telecom companies.
This will spur job creation and expansion of industries giving a boost to commercial segment. BeneďŹ ts of this will also trickle to retail realty as increased income implies enhanced purchasing power.
the growth of an entire ecosystem on its own. Once execution delays are considerably reduced, housing sales will receive a boost. The Indian economy will stand to beneďŹ t through this equation in a three dimensional way, as shown above:
Only half the problem solved The bill not only protects consumer interest but recognises that faster approvals are also crucial for developers to
An upbeat economy with a functional regulatory mechanism will place India on a global footing and make it one of the most sought after destinations for international investors.
prevent delays. Against this backdrop, regulatory authorities also aim to promote a single-window system of clearances for real-estate projects beneďŹ ting the sector and can now grade projects along with grading of promoters, besides ensuring the much desired digitisation of land records. However, the bill has a long way to go as far as faster sanctioning process is concerned. Thus, the problem is only half-solved. Nevertheless, with a vast universe
under coverage, it can be expected that the bill will have far reaching positive effects on execution and accountability. A nationâ&#x20AC;&#x2122;s economy has its foundation in consumer conďŹ dence. The bill will be instrumental in alleviating the prevalent dwindling conďŹ dence and weak sentiment across the sector. With increased transparency, the real-estate sector will start to look up and attract increased funds from overseas. Without a proper regulatory mechanism in place, the governmentâ&#x20AC;&#x2122;s ambitious â&#x20AC;&#x2DC;Housing for Allâ&#x20AC;&#x2122; policy will be unable to yield the desired results. The amendments are a step in the right direction, but it is imperative that they be implemented within the timeframe that the momentum is intact. About the author: Pankaj Kapoor, Founder and Managing Director of Liases Foras, is an expert particularly in the ďŹ eld of valuation, risk assessment and forecast of the price behaviour.
To share your views on the Real Estate Bill, write in at feedback@constructionworld.in
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EVENT PREVIEW
BAUMA 2016 Over 3,400 exhibitors and more than half a million visitors are expected at the expo, which is scheduled to be held in Munich, Germany on April 11-17, 2016.
B
auma 2016 Munich, the world’s biggest construction and mining equipment expo is around the corner. The trade-fair center has been expanded to occupy 605,000 sq m of exhibition space, which is booked to capacity. In an unprecedented move, some prospective exhibitors, who were on the waiting list, have accepted to be only listed in the Bauma directory and be digitally present through the media video screens. Nearly 40 per cent exhibitors are global leaders in mining equipment, who are aggressively positioning their equipment and services, to woo the Indian customers. A significant paradigm shift, driven by global recession in mining while India projects a steep rise in this business.
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Construction World April 2016
Bauma Innovations Awards, an ongoing tradition, remain in vogue. Klaus Dittrich, Chairman & CEO Messe München, will announce the 15 nominated companies and their innovations on the occasion of Bauma. The Innovation Award is presented in five categories: Machinery; Components; Construction Process or Construction Work; Research; and Design. In total, 118 applications were received from Germany and abroad. The jury has now selected three new developments in each category to go forward to the final round. All of the nominated innovations offer significant practical benefit and economic potential; they are sustainable and make a contribution towards energy- and resource-efficiency and/or towards the
humanisation of the workplace. The final awards will be given at a gala function during the expo. New products, processes and solutions are at the heart of every trade fair. Needless to say, this is especially true of Bauma, the largest trade fair in the world. The coming edition of the world’s leading trade fair for construction machinery, building material machines, mining machines, construction vehicles and construction equipment of their new products on show and outline emerging trends in terms of advancements and innovations in construction machinery. Cranes rising high into the sky and gigantic machinery has been a familiar and exciting skyline of the expo. But in the shade of all the XXL lifting gear
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EVENT PREVIEW
and heavyweight mining machinery, this world-leading trade fair has many, much smaller, but equally innovative products and solutions to interest trade visitors. Allied equipment like formwork, are critical success factors to achieve construction speed, quality and economy.
Formwork experts who are tackling these challenges will present a large number of products and innovations at Bauma. Following its successful launch at Bauma in 2013, the second â&#x20AC;&#x153;THINK BIG!â&#x20AC;? initiative is being held at Bauma. The organiser is the German Engineering
Federation, the VDMA in cooperation with Messe MĂźnchen. On 3,000 sq m of space, â&#x20AC;&#x153;THINK BIG!â&#x20AC;? will feature an extensive and interactive programme focusing on technical training, educational and career opportunities in the construction and building materials machinery industry. Over 3,400 exhibitors and more than half a million visitors are expected at this yearâ&#x20AC;&#x2122;s expo. These numbers also spell pressure on the roads around the Messe MĂźnchen exhibition center and on the local public transport system. To ensure your journey here is as trouble-free as possible, Messe MĂźnchen are offering a number of services. CW advises all to visit their website www.bauma.de for more details. CW and EQUIPMENT INDIA are giving weekly updates through the newsletter whats@bauma 2016 Munich. After the expo starts the newsletter will be updated daily. Please subscribe.
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COMMUNICATION FEATURE
TOWERING ACHIEVEMENT VG SAKTHIKUMAR, Managing Director, SCHWING Stetter Sales and Services Pvt Ltd, Chairman of Mechanisation Committee, Builders Association of India, elaborates on the company’s operations and products. Initiated in June 1998, Schwing Stetter is a premier manufacturer of concrete equipment in India. A 100 per cent subsidiary of SCHWING Group of companies, an 850 million Euro German Concrete machinery manufacturer and a part of SCHWING-XCMG Group, SCHWING Stetter India is a pioneer in manufacturing equipment for concrete preparation, placement, transportation and recycling.
Wide operations The company’s well-established range of products for the last 15 years include concrete mixers, concrete batching plants, concrete pumps, concrete placer boom, mobile concrete conveyor, shotcreting machines, recycling plants, water chilling plant, etc. The company has recently launched its new range of equipment including tower cranes, wheel loaders, motor graders and sludge pumps. SCHWING Stetter has its manufacturing units in 11 countries including Germany, Austria, the US, Brazil, Russia, China, Ostrava, India; sales and service centres in France, Netherlands, Austria and Sweden; as well as representations in more than 145 countries worldwide. SCHWING Stetter India has 26 sales offices, nine service centres and 18 spares centres in India. The company has over 250 service engineers besides a project department and a training centre. Schwing Stetter India has collaborated with XCMG for
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Construction World April 2016
introducing advanced tower cranes in India. The company has introduced 5 tonne and 6 tonne tower cranes that withstand extreme conditions on construction sites. These highly adaptable fast erecting tower cranes withstand up to 1.3 tonne at the tip load and 5 tonne at minimum radius of 2.4 m and maximum height can go upto 140 m.
Prominent features Some of the pioneering features of the Schwing-XCMG tower crane includes: • Trolley equipped with front and rear trolley mechanism for convenient to change four fall to two fall. • Fish plate welded on the mast for pin connection helps to interchange the mast with other angle masts. • Fixed mast with the dimension of 1.2 x 1.2 x 3 m is made for easy transportation and assembly. • Special high yield strength angle steel in the mast, basic mast and fixing angles with eight pins clamping of mast from external and internal side pins interlocked, offer strong fastening of masts, good stiffness stability and high reliability and sustain higher wind loads. • Ladder with safety cage and rest platform for the convenience of operator and maintenance crew on masts. • Introduction trolley is provided for adding the mast, which is safe and efficient. • Hook made for changing from four fall to two fall. Nylon pulley on hook provided for safety. • The hoisting mechanism is designed to lift 5 tonne, having larger size rope cable drum. Option of nonvariable frequency motors (three speed-pole changing motor) provide simple and reliable hoisting operation. • According to the demand of users, the frequency altering and step less regulated, eddy-brake and electro mechanical brake or thruster, the brake speed regulated motor is adopted in hoisting mechanism.
Safety features The safety features of these tower cranes include: • Trolley limit switch stops the trolley movement when it approaches the jib end. • Moment limit was integrated with over weight limit. These limit switches ensure that the operator does not exceed the specified load at the respective radius. • Schwing Stetter India also imports 8 tonne, 10 tonne capacity tower cranes and luffing cranes. (Communication by the management of the company)
COMMUNICATION FEATURE
ENSURING SMOOTH MOVEMENT KONE offers solutions that enable people to move smoothly, safely and comfortably. Founded in 1910, KONE is one of the global leaders in the elevator and escalator industry. The company, till date, has many achievements to its credit including: • It was awarded a position on the Climate Performance A List by CDP – an international, not-for-profit organisation providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. • The company was recognised as a world leader for
corporate action on climate change. • It received the best possible climate disclosure score of 100 in the CDP Nordic report 2015. • Included in the Carbon Disclosure Leadership Index (CDLI) for the fifth consecutive year. • Succeeded in reducing energy use carbon footprint relative to orders by 60 per cent.
Elevators The major features of KONE elevators include: • KONE EcoDisc hoisting machines are 50-70 per cent energy-efficient than conventional machines. • KONE Regenerative solutions recover 20-35 per cent energy used by the elevator. • LED lighting reduces energy consumption by upto 80 per cent compared to halogen lights. • Standby solutions provide substantial energy savings by powering down the elevator when not in use. • KONE Destination Control System reduces the size and number of elevators needed by optimising people traffic.
Escalators KONE escalators boast of the following features: • Lubrication-free step chain saves oil, reduces chain wear and decreases fire risk.
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Construction World April 2016
• Eco-efficient operation saves upto 50 per cent energy by slowing down during low traffic and stopping when not in use. • LED lighting reduces energy consumption by up to 80 per cent compared to halogen lights. • Regenerative solutions reduce consumption by recovering the energy created when in use. (Communication by the management of the company)
速
Solution For The Construction Industry Integral Water Proofing Compounds Surface Applied Water Proofing Coatings Tile Fixing Adhesives And Joint Fillers Structural Repair Products Bonding Agents Plasticisers Flooring Products & Industrial Coatings AN ISO 9001 : 2008 & NSIC - CRISIL SME 2 RATED COMPANY Member of Construction Chemicals Manufacturers Association
速
Solution For The Construction Industry Integral Water Proofing Compounds Surface Applied Water Proofing Coatings Tile Fixing Adhesives And Joint Fillers Structural Repair Products Bonding Agents Plasticisers Flooring Products & Industrial Coatings AN ISO 9001 : 2008 & NSIC - CRISIL SME 2 RATED COMPANY Member of Construction Chemicals Manufacturers Association
COMMUNICATION FEATURE
AUTOMISED TO PERFECTION Gandhi Automations introduces two new ranges of automatic sectional overhead doors. Gandhi Automations has introduced two new ranges of automatic sectional overhead doors – Porto and Max Vista – which offer an ideal solution for all industrial and commercial needs.
Porto The Porto ranges of sectional overhead doors are ideal for all industrial and logistics needs. Aesthetically designed, these doors suit all architectural environments – from modern and traditional buildings to fine commercial buildings. They ensure highest ease and flexibility of use which, in turn ensures a quick, hassle-free and accurate replacement of old doors. Their compact size ensures more space, both inside and outside the premises. Choices include a standard lift, vertical lift, horizontal lift, low headroom or inclined lift.
Max Vista Max Vista sectional overhead doors are ideal for industrial and commercial buildings. Made with a combination of aluminium panels and transparent acrylic, grilled or meshed windows, these doors give a distinctive
• • • • • • • • •
look to a building. Key features include: • Reliable and low- noise operation. • Extreme robustness. • Safe operation. • Design-oriented surfaces and optimum light solutions. • Minimal bulk for more space indoors and outdoors. • Easy and practical to open and operate. • Energy savings and more comfort. Bright indoor environment and attractive design. Pre-painted, galvanised steel, sandwich panel, thickness 40 mm. The gaskets, made of a special non-ageing rubber, seal the perimeter of the door opening. They produce a perfect seal, preventing water, air and dust infiltration. Minimal bulk for more space indoors and outdoors. Easy and practical to open and operate. Energy savings and more comfort. Bright indoor environment and attractive design. Can also be customised as gas tight ripening room doors.
(Communication by the management of the company)
LEADING THE FRONT With over 50,000 parking systems installed, KLAUS Multiparking Systems is a world leader in mechanised parking systems. KLAUS Multiparking Systems, founded in Germany, has over 50 years of experience and a presence in about 80 countries. Catering to the global demand, the company provides state-of-the art German technology products, ranging from simple stack parker to a semi-automatic parking automat and a fully automatic parking system, installed either over-ground or under-ground.
A vision personified
Instant service
All these achievements can be attributed to the long- term vision and foresight of Nitin Bhave, Director, Klaus Multiparking, who foresaw the increasing gravity of the parking issue, with the growth in car sales and infrastructure development in the city. He strongly believes that with proper planning by the government authorities, architects, developers and specialist parking companies, space allocation and utilisation with regards to parking issues can be resolved effectively.
Offering a 24-hour service, KLAUS has introduced the concept of WOW –‘Workshop on Wheels’, which boasts of
(Communication by the management of the company)
Product offerings The complete range of parking solutions offered by the company include: Stack parkers, parking automats, over-ground puzzle parkers, tower parkers, fully automatic parking system, turn-tables and parking pallets.
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99.0 per cent uptime. This service provides a fully-equipped van along with trained technicians, tooling and spares on ground, pan India throughout the year. KLAUS, in India, has installed over 50,000 spaces, thus helping the cities to cope-up with parking woes, improve mobility and the environment.
Construction World April 2016
GROUND TO PERFECTION A market leader, Wirtgen offers the largest range of cold milling machines industry-wide. With a milling width of 1.2 m, the W 120 Ri is the first mobile rear-loading machine on wheels. The machine, along with W 100 Ri, forms Wirtgen’s new generation of small milling machines. The W 120 Ri features the same operating concept as the W 35 Ri, W 50 Ri and W 60 Ri – 50 cm class machines, which are already successfully established on the market. They integrate Level Pro Plus, the brand-new leveling system developed by the company, into their control system, ensuring a precise, high-quality milled finish, thanks to its simple intuitive operation.
A class apart The W 150 CFi machine features environmentally unbeatable engine technology in compliance with emission level EU Stage 4 / US Tier-4 Final. It combines the advantages of small milling machines – maneuvrability, one-man operation and flexibility – with the front-loading principle and the productivity of large Wirtgen milling machines. With working widths ranging from 1 m to 1.5 m and milling depths up to 330 mm, the complete machine
series, which includes not only the W 150 CFi, but also the models W 130 CFi, W 120 CFi and W 100 CFi, stands out through its high performance and cost-efficiency. The W 150 CFi, is ideal for larger job sites, where space is limited such as in downtown areas. The machine’s sophisticated visibility system, in combination with the camera systems, help the machine operator to maneuver the cold milling machine.
Power-packed From the W 200i, W 200 Hi, W 210i and W 220i to the W 250i, Wirtgen offers a complete machine range with milling widths from 2.00 m to 4.40 m and milling depths up to 35 cm. Their applications encompasses not only layer-by-layer removal of asphalt or concrete roadway pavements, but also roughening surfaces, leveling substrates, producing plane surfaces with millimetre accuracy and removing tunnel floors. (Communication by the management of the company)
FOR A ‘COOL’ ROOF The new COLORBOND® Steel with Thermatech® Solar Reflectance Technology, not only saves energy, but also ensures greater durability for entire roofing systems. Tata BlueScope has introduced COLORBOND® steel with Thermatech™ Solar Reflectance Technology – a solar reflectance technology that lowers surface temperature by absorbing lesser heat from the sun, thereby keeping both roofs and buildings cooler. Reduced heat stress also ensures greater durability for entire roofing systems and superior ROI.
insulation and the usage of the building. School buildings, with their often high roof to wall ratio, typically derive high-energy savings. This translates to energy savings up to 12 per cent through the inclusion of Thermatech™ for Woodland Grey.
Reduction in peak load Increase in solar reflectance The inclusion of this technology has increased the solar reflectance of all colours in the standard COLORBOND® steel palette, with an average increase of about 5 per cent. Available in a wide range of colours, the inclusion of Thermatech® increases the solar reflectance of Woodland Grey by about 15 per cent. This will keep the roof up to 10°C cooler, thus reducing the need for air-conditioning. Studies indicate that in moderate to hot climates, the energy savings from increased roof solar reflectance vary from about 10 per cent to 50 per cent. The savings depend upon factors such as the climate, the building shape and form, the level of
Increasing roof solar reflectance reduces peak cooling loads on air-conditioning equipment. The inclusion of Thermatech™ reduces the peak cooling load from an insulated Woodland Grey roof by about 2.6 W per sq m. This places less strain on the air-conditioning equipment or for a 1,000 sq m conditioned school building, allows equipment downsizing as a result of a 2.6 kW reduction in load. High solar reflectance roofing also offers other benefits as a result of reduced warming of the local environment (urban heat islands). This translates to reduced cooling loads on other buildings. (Communication by the management of the company)
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PRODUCT PARADE
IN WOOD GLORY Pergo has unveiled its latest Wood Parquet flooring, which is easy to install and durable. With the launch of this flooring, 14 different designs with the new manufacturing technologies such as brushed surface, sawcut and dutch pattern designer look are introduced. The high quality oiled and lacquered surface is factory-applied and with a special base treatment, for a particularly natural radiance. Contact: Pergo. Tel: 011-4143 5741. Website: www.pergo.co.in
FLEXIBLE AIR DISTRIBUTOR Schneider Electric India has launched Under Floor Air Distribution System (UFAD), which uses the space between the structural concrete slab and the underside of a raised access floor to deliver conditioned air directly into the occupied zone of the building. The principle can be developed in different configurations according to customer and project requirements. The advantages include zero per cent wastage of space, it saves more than 20 per cent energy, has 40 per cent faster construction time and is 100 per cent flexible. Contact: Schneider Electric ndia. Website: www.schneider-electric.co.in/en
PRE-MONSOON SOLUTION British Paints offers their latest British Waterproofing ‘TerraceMaster’ – a highly durable acrylic waterproofing coating, a solution to prepare early for the monsoon. TerraceMaster comes with eight benefits in every litre; besides waterproofing, the coating is foot trafficable, abrasion resistant, UV resistant, breathable, crack bridging, anti-algal and provides cool roof advantage. It has high Solar Reflective Index, which gives the surface the ability to reflect sunlight. Contact: British Paints. Tel: 011-2924 0394. Website: www.britishpaints.in
IRRESISTIBLE FLOORING NOTION launches a series of irresistible Laminate Flooring Collection, built to meet the requirements of high F traffi c domestic areas. Laminate Flooring Collection is cut out t for f heavy duty performance and enhances the aura of every setting, even in the most demanding domestic areas. The s collection has 5 G lock profile and is available in lots of finishes like l chrome, oiled, silk matt, brushed, etc. C Contact: Notion. Tel: 80104 50450. E-mail: info@notion.net.in W Website: www.notion.net.in
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DAZZLING LIGHTING Flexa Lighting launches the Sky range of professional lighting fixtures, offering high quality solutions in more than seven finishes for indoor and outdoor installations. It provides the highest optical performance in devices with an incredibly small size. The range offers IP44 0,75W constant micro recessed fixtures that come in two shapes, seven finishes and two beam apertures. Contact: Flexa Lighting. Website: www.flexalighting.net
EFFICIENT PUMPS SUSTAINABLY SLIM Parryware introduces its range of exceptionally super slim wash basins – In-Slim. The surface pattern being partly decorative and partly functional, In-Slim’s unique aesthetic allows a tight radii of 4-5 mm, which has wafer-thin walls, economises on space, lightweight and is even more sustainable, as compared to traditional basins, that makes more space for contemporary bathroom. Contact: Parryware. Tel: 044-4902 2000. Website: www.parryware.in
Grundfos Pumps India (Grundfos India) participated in the 17th edition of ACREX 2016. Its intelligent energy-efficient in-line pump TPE3, which was one of the products exhibited at the event, is designed specifically for use in heating and cooling systems for commercial buildings, with a built-in heat energy metre and flow limiting function. Besides, its MAGNA3 is designed to offer a complete range of control mode options expected from a state-of-the-art circulator pump. Contact: Grundfos Pumps India. Tel: 044-4596 6800. Website: www.grundfos.in
BLENDING DESIGN AND INNOVATION Jaquar Group launches Linea by its luxury bath brand Artize. Artize’s Linea is a perfect blend of elegant design and innovation. Linea’s exceptional feature is the elegant oscillating motion of its spout, which also acts as its on-off mechanism. The faucets spout moves in a graceful arc, controlling the temperature and flow of the water as it moves along its curve. Colours are available in chrome, black chrome, copper, bronze, black and white polymer. Contact: Jaquar Group. Tel: 0124-474 6800. E-mail: info@artize.com Website: www.artize.com To share your latest products with us, write in at feedback@ConstructionWorld.in April 2016 Construction World
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134 STATE
TENDER VALUE (`)
EMD/ DOCUMENT COST (`)
Construction World April 2016
Karnataka
6 North West Karnataka Road Transport Corporation Bengaluru Details: Tenders are invited for construction of Hi-Tech bus station with its sub works.
1,399,922,052 7,149,620 / 25,000 27/04/2016 27/04/2016 / 27/04/2016 Contact: Sushil Kumar, Office of the Chief Administrative Officer, Mahendrughat, Patna, Bihar. Tel: 0612-267 7120, 2677 120. E-mail: sushianh@rediffmail.com
1,884,100,000 NA / NA 26/04/2016 26/04/2016 / 26/04/2016 Contact: G-5 and 6, Sector-10, Dwarka , New Delhi. Tel: 011-2509 3507, 2509 3514.
9 Military Engineer Services Jabalpur Madhy Pradesh Details: Tenders are invited for supply of chlorination chemical, coagulants and miscellaneous items for water supply installation under CWE Jabalpur. 10 Greater Noida Industrial Development Authority Ghaziabad Uttar Pradesh Details: Tenders are invited for design, construction, operation and maintenance of primary treatment works at Dehra (Ghaziabad) and 210 MLD water treatment plant at Palla (Greater Noida) and allied works under 85 cusec Gangajal project.
1,343,470,000 14,435,000 / NA 13/05/2016 13/05/2016 / 13/05/2016 Contact: 169, Chitvan Estate, Sector-Gamma-II, Greater Noida City, Gautam Budh Nagar, Noida, Uttar Pradesh. Tel: 0120-232 6540. E-mail: authority@gnida.in
3,500,000 70,000 / 500 28/04/2016 28/04/2016 / 28/04/2016 Contact: Shri Sanjiv Agarwal, Ee Dcwe, Jabalpur, Madhya Pradesh. Tel: 0761-262 5873.
WATER SECTOR
7 National Highway Authority of India Dahisar Maharashtra Details: Tenders are invited for construction of new four-lane bridge across Varsova Creek and its approaches with interchange from 496.100 km to 498.350 km (approximately 2.250 km) between Surat-Dahisar section of NH-8 (New NH-48) in Maharashtra on design, build, operate and transfer (the DBOT annuity or hybrid annuity ) basis. 8 East Central Railway Dhanbad Jharkhand Details: Tenders are invited for construction of foundation and substructure and superstructure including assembling, erection and launching of girders of major bridges and other associated work in between Jogidih (110.19 km) - Obra Dam (137.89 km) section in connection with Ramna-Singrauli doubling projects under Dhanbad division in ECR.
15/06/2016 / 15/06/2016
37,211,878 336,060 / 10,000 26/04/2016 27/04/2016 / 29/04/2016 Contact: Chief Administrative Officer, EC Railway, Mahendrughat, Patna-800 004, Bihar. K Mal, Tel: 0612-268 3409. Fax: 268 3409. E-mail: caoecrmhx1@hotmail.com 49,199,946 738,000 / 5,000 05/07/2016 05/07/2016 / 05/10/2016 Contact: Bengaluru, Karnataka. T: 0836-233 2383.
ROADS/ROAD OVER BRIDGE//BRIDGES/FLYOVERS/HIGHWAYS
Bihar
5 East Central Railway Patna Details: Tenders are invited for construction of RRI building at Sonpur.
15/06/2016
76,900,000 709,500 / 3,000 25/04/2016 25/04/2016 / 25/04/2016 Contact: CE Pathankot Zone Pathankot-145 001, Bihar. Tel: 0186-225 6361. Fax: 0186-223 1402. E-mail: cepz1e8@gmail.com 6,735,600 134,720 / 5,480 25/04/2016 25/04/2016 / 25/04/2016 Contact: Anupam Sharma, Office of the Divisional Railway Manager, Tiruchchirappalli Junction, Tamil Nadu. Tel: 044-2535 5900. Mobile: (0) 90030 61000.
RESIDENTIAL/COMMERCIAL BUILDINGS
3 Military Engineer Services Pathankot Bihar Details: Tenders are invited for provision of RCC retaining wall, RR masonry wall along with drain and culverts at AP, Birpur Mil Station Ratnuchak. Completion period: 365 days. 4 Southern Railway Trichchirappalli Tamil Nadu Details: Tenders are invited for displaying advertisments through glow sign boxes with illumination through LED bulbs on the median and through stickers on the side walls leading to Kallukuzhi from Tiruchirappalli junction main entry side.
EPC/CIVIL WORKS/FENCING/WALL WORKS
NA / NA
Contact: Thiruvananthapuram-695 006, Kerala. T: 0471-236 5873, 872. Fax: 0471-236 8144.
SUBMISSION/ OPENING DATE
Details: Tenders are invited for contractors for interior works.
DOCUMENT SALE DATE
NA NA / NA 42500 42500 / 42500 Contact: NHPC Office Complex, Sec-33, Faridabad-1210 031, Haryana. Tel: 0129-227 0974. E-mail: narender@nhpc.nic.in
ARCHITECTS/INTERIOR WORK/CONSULTANCY
LOCATION
NA
ORGANISATION
1 National Hydroelectric Power Corporation Ltd Kishanganga Jammu and Kashmir Details: Tenders are invited for civil, hydro-mechanical and electromechanical works for construction of surface power house building including architectural works, tail race channel and penstocks, etc, of 1.6 MW (2 x 0.8 MW) hydroelectric project at TOE of dam in Kishanganga HE project, Jammu and Kashmir. 2 HLL Lifecare Ltd Thiruvananthapuram Kerala
SL No.
TENDERS
CONTRACTS AWARDED
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BAGGED IT! Contract value: `2,149 crore Particulars: Re-development NBCC Ltd has bagged an order from India Trade Promotion Organisation (ITPO) for the re-development of Pragati Maidan, New Delhi.
Contract value: `145.15 crore Particulars: Water supply Indian Hume Pipe Company has bagged a contract from the Government of Rajasthan. The order is for water supply project in Alwar in Rajasthan.
Contract value: `2,759 crore Particulars: Thermal power project Bharat Heavy Electricals Ltd has bagged an order from TANGEDCO for setting up a supercritical thermal power project involving one unit of the countryâ&#x20AC;&#x2122;s highest rating 800 MW sets in Tamil Nadu. The project shall be commissioned by August, 2019.
Contract value: `120 crore Particulars: Transport MP Group has received a contract from the Noida Metro Rail Corporation (NMRC) for plying buses within Noida and Greater Noida. The company has developed an SPV to implement its NMRC project for City Bus Service operation.
Contract value: `864 crore Particulars: Transmission line Kalpataru Power Transmission Ltd has bagged an order for a 400 KV transmission line project strengthening the transfer of power from new hydro-electric power projects in Bhutan to India. The transmission line project is to be constructed in West Bengal and Bihar.
Contract value: `139 crore Particulars: Construction Jyoti Ltd has bagged an order from DRN Infrastructure, Hubli, for the design, manufacturing, supply, erection, testing and commissioning of ďŹ ve metallic volute pumps with allied mechanical, electrical and instrumentation equipment, for TubchiBableshwar Lift Irrigation Scheme.
Contract value: `635 crore Particulars: Tunnel construction Hindustan Construction Company Ltd (HCC) has been awarded a contract by national power company NTPC Ltd to construct head race tunnel for Tapovan Vishnugad Hydroelectric power project on the River Dhauliganga in Chamoli district of Uttarakhand.
Contract value: `105.91 crore Particulars: Construction Om Metals Infraprojects Ltd has bagged a contract from Uttarakhand Jal Vidyut Nigam Ltd for detailed engineering and designing, procurement, manufacturing, inspection, shop assembly, testing and commissioning of hydro mechanical works of Vyasi HE project in Dehradun.
Contract value: `384.53 crore Particulars: Power KEI Industries Ltd has bagged an order from Power Grid Corporation of India Ltd comprising supply and service contracts for Package A&B under Integrated Power Development Scheme (IPDS) works in Varanasi at Uttar Pradesh.
Contract value: `52.4 crore Particulars: Pipeline construction IL&FS Engineering and Construction Company Ltd has received a Letter of Acceptance (LoA) from GAIL for laying and construction of a 85-km pipeline along with associated works for a pipeline replacement project in Gujarat. The completion is targeted in 16 months.
April 2016 Construction World
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www.ConstructionWorld.in
DIARY
EXHIBITIONS, CONFERENCES AND SEMINARS APRIL 2016 Secutech India 2016. Date: Apr 21-23, 2016. Venue: Mumbai. Organiser: ABEC. Tel: 022-6681 4900. E-mail: info@secutechexpo.com Category: Security & Automation Roof India. Date: Apr 7-9, 2016. Venue: Chennai. Organiser: ITEI. Tel: 044-3074 4444. E-mail: sudeep@itei.in Category: Building Material
MAY 2016 2nd Smart Cities India Expo. Date: May 11-13, 2016. Venue: New Delhi. Organiser: Exhibitions India Group. Tel: 011-4279 5000. E-mail: pravins@eigroup.in Category: Smart Cities World Of Concrete India. Date: May 18-20, 2016. Venue: New Delhi. Organiser: Hanley Wood Exhibitions. Tel: 0124-452 4207. E-mail: vivek.tyagi@interads.in Category: Building Material Concrete Show India. Date: May 19-21, 2016. Venue: Mumbai. Organiser: UBM India. Tel: 022-6172 7152. E-mail: akash.damani@ubm.com Category: Building Material
CW Annual Awards. Date: Oct 21, 2016. Venue: Mumbai. Organiser: ASAPP Info. Tel: 022-2419 3000. E-mail: Delegate@ASAPPmedia.com Category: Construction Economic Times Acetech. Date: Oct 21-23, 2016. Venue: Bengaluru. Organiser: Asian Business Exhibitions & Conferences Ltd. Tel: 022-2634 5760. E-mail: info@etacetech.com Category: Building Material
NOVEMBER 2016 Economic Times Acetech. Date: Nov 10-13, 2016. Venue: Mumbai. Organiser: Asian Business Exhibitions & Conferences Ltd. Tel: 022-2634 5760. E-mail: info@etacetech.com Category: Building Material
DECEMBER 2016 4th Equipment India Awards & CEO Forum. Date: December. Venue: New Delhi. Organiser: ASAPP Info. Tel: 022-2419 3000. E-mail: delegate@ASAPPmedia.com Category: Construction Equipment Win India 2016. Date: Dec 1-3, 2016. Venue: New Delhi.
JUNE 2016 India Warehousing Show 2016. Date: Jun 8-10, 2016. Venue: New Delhi. Organiser: Reed Manch. Tel: 0120-428 7700. E-mail: akshita.kapoor@reedmanch.com Category: Infrastructure
Organiser: Hannover Milano. Tel: 022-6687 5500. E-mail: info@hmf-india.com Category: Construction Equipment
AUGUST 2016
4 Indian Cement Review Conference. Date: Dec 8, 2016.
11 CWAB Awards. Date: Aug 12, 2016. Venue: Mumbai. Organiser: ASAPP Info. Tel: 022-2419 3000. E-mail: Delegate@ASAPPmedia.com Category: Real Estate
Venue: Mumbai. Organiser: ASAPP Info. Tel: 022-2419 3000.
Zak Interior Exterior Expo. Date: Aug 25-28, 2016. Venue: Chennai. Organiser: Zak Trade Fairs & Exhibitions Pvt Ltd. Tel: 044-4295 9595. E-mail: mktg@zakgroup.com Category: Interiors
9 Cement Expo 2016. Date: Dec 8-9, 2016. Venue: Mumbai.
th
th
E-mail: cementexpo@ASAPPmedia.com Category: Building Material th
Organiser: ASAPP Info. Tel: 022-2419 3000. E-mail: cementexpo@ASAPPmedia.com Category: Building Material
SEPTEMBER 2016
2
Big 5 Construct India 2016. Date: Sep 28-30, 2016.
Venue: Mumbai. Organiser: ASAPP Info. Tel: 022-2419 3000.
Venue: Mumbai. Organiser: FICCI. Tel: (+)971-044380355.
E-mail: cementexpo@ASAPPmedia.com
nd
Indian Cement Review Awards. Date: Dec 9, 2016.
E-mail: info@thebig5constructionindia.com
Category: Building Material Category: Construction
OCTOBER 2016
bauma Conexpo. Date: Dec 12-15, 2016. Venue: New Delhi. Organiser: bC Expo India Pvt Ltd. Tel: 022-6787 9800.
Light India. Date: Oct 5-7, 2016. Venue: New Delhi.
E-mail: info@bcindia.co.in
Organiser: Messe Fralkfurt Trade India Pvt Ltd. Tel: 022-6144 5900. E-mail: info@messefralkfurt.com Category: Interiors
Category: Construction Equipment
FEBRUARY 2017
Electrical Building Technology India. Date: Oct 5-7, 2016.
Build Mat. Date: Feb 2-5, 2017. Venue: Coimbatore.
Venue: New Delhi. Organiser: Messe Frankfurt India.
Organiser: Builders Association of India (BAI). Tel: 0422-439 4536.
Tel: 022-6144 5900. E-mail: info@india.messefrankfurt.com
E-mail: buildmat2017@gmail.com
Category: Building Technology
To share your events with us, write in at feedback@ConstructionWorld.in
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Construction World April 2016
Category: Building Material
BUILDING MATERIALS PRICES CEMENT (Unit:1 metric tonne; Price in `)
ACC Ltd Grade 43 Grade 53 PPC Ambuja Grade 43
Mumbai
Delhi
Chennai
Pune
Hyderabad
Bengaluru
Ahmedabad
Kolkata
NA 6,000 NA
NA NA 6,000
7,800 7,800 7,600
5,200 NA 5,100
NA NA 7,000
7,700 7,700 7,600
NA NA NA
NA NA 6,100
NA
NA
NA
NA
NA
NA
NA
NA
NA 6,100
NA NA
NA 5,200
NA NA
NA NA
NA 5,720
NA 6,100
NA 6,500 6,100
NA 8,100 7,900
NA NA NA
NA 5,380 NA
NA NA 7,700
NA NA 5,680
NA NA 6,100
NA
NA
5,400
NA
7,800
NA
NA
NA 14,700
18,200 18,200
18,500 18,500
18,000 NA
17,000 NA
16,200 16,000
NA 17,200
NA NA NA
NA 7,900 7,900
5,100 5,140 5,000
NA 5,000 4,800
7,600 15,600 7,500
NA NA NA
NA NA NA
NA NA NA
NA NA NA
5,100 5,140 5,000
NA NA NA
7,500 7,500 7,400
NA NA NA
NA NA NA
Grade 53 6,000 PPC NA Ultratech Grade 43 NA Grade 53 6,000 PPC NA Birla Super Grade 53 NA White Cement Birla 18,000 JK 18,000 Coromandel Cement Grade 43 5,800 Grade 53 NA PPC NA Vasavadatta Cement Grade 43 5,900 Grade 53 NA PPC NA
Mumbai: Shekhar, Neelesh Industrial Agency. Tel: 022-2408 2121. Mobile: (0) 93247 16192. Kirti Shah, Paras Sales Corporation. Mobile: (0) 92241 87800. Delhi: Girish Agarwal, Mahabir Building Material Store. Tel: 011-2664 2348. Mobile: (0) 98100 62315. Chennai: Nazir Badshah, Super Traders. Tel: 044-2651 2577. Mobile: (0) 72999 95577, 97892 57452. Pune: Ravindra, Kamal Distributors. Mobile: (0) 98224 28574. Hyderabad: Poonamchand Hambar, Techno Steel and Cement. Tel: 040-3370 6863. Mobile: (0) 92480 04200. Bengaluru: Apna Stock. Tel: 080-3083 2304. Mobile: (0) 98458 68182. Ahmedabad: PD Agrawal, Agrawal Traders. Tel: 079-2585 1616. Kolkata: Pintu Roy, Arun Distributors Ltd. Tel: 033-2557 8632. Mobile: (0) 9830 997677, 98309 97672. Debashish Seth, Murari Mohan Seth and Co. Mobile: (0) 94323 39405.
PAINTS: ENAMEL-WHITE (4 litre: Price in `)
Asian Paints
Mumbai
Delhi
Chennai
Pune
Hyderabad
Bengaluru
Ahmedabad
Kolkata
1,060
980
1,021.34
995
950
1,020
1,000
1,080
Kansai Nerolac
1,030
950
1,021.34
950
950
NA
NA
1,080
Berger
1,050
930
1,021.34
950
950
1,020
1,020
1,080
Shalimar
NA
NA
1,021.34
NA
NA
NA
NA
NA
ICI
1,060
950
NA
950
950
NA
NA
1,080
Mumbai: Pragnesh Kapasi, Poojan Colour Point. Mobile: (0) 78755 18999. Delhi: KL Wasan, Wasan Enterprises. Mobile: (0) 98105 81561, 98716 66577. Chennai: Umesh Dave, Tamilnad Traders. Mobile: (0) 72000 97550. Pune: Tejas Vora, Shahabad Cement Depot. Tel: 020-2588 5700. Mobile: (0) 99608 00820. Hyderabad: Mukesh Chaudhary, Tirupathi Hardware. Mobile: (0) 99633 47374. Bengaluru: GV Balakrishna, Balaji Paints and Hardware. Tel: 080-4915 8239. Mobile: (0) 94487 55711. Ahmedabad: Shanti Prajapati, Swastik Traders. Tel: 079-2646 4766. Kolkata: Saif Alam, Hindusthan Paints. Tel: 033-6634 2216. Mobile: (0) 80480 05598.
CLEAR GLASS (Unit: 1sq ft; Price in `)
4 mm
Mumbai
Delhi
Chennai
Pune
Hyderabad
Bengaluru
Ahmedabad
Kolkata
35
26
32
35
50
37
38
38
5 mm
45
32.5
40
45
55
46.25
43
48
6 mm
55
39
48
55
65
55.5
55
58
Mumbai: Shabbir, Galaxy Glass Dealers. Tel: 022-2568 4351. Mobile: (0) 98207 69157. Delhi: Ajay Dhamija, Ajay Glass. Mobile: (0) 98102 65787. Chennai: Muthu Vijay, Glass Point Industries. Mobile: (0) 93810 04580. Pune: Nomani Kachwala, Poona Glass Depot. Tel: 020-2445 9238. Mobile: (0) 99602 50786. Hyderabad: Sameer Petkar, Krisha Glass Solution. Tel: 040-3308 1594. Mobile: (0) 90000 11528. Bengaluru: AV Stayanarayan, Sri Venkateshwara Glass and Plywoods. Mobile: (0) 99800 98005, 93437 05809 . Ahmedabad: Anil Maken, Rajkamal Corporation. Tel: 079-2220 4090. Mobile: (0) 937611 2220. Kolkata: Pradeep Khetan, RP Glass Traders. Mobile: (0) 93304 60999.
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BUILDING MATERIALS PRICES STEEL (Unit:1mt; Price in `) Product
Material
Mumbai
Delhi
Chennai
Pune
Hyderabad
Bengaluru
Ahmedabad
MS
6 mm dia
32,000
33,500
39,500
35,000
34,000
35,000
36,500
TMT
8 mm dia
32,500
37,000
40,300
35,000
37,500
37,000
36,600
TMT
10 mm dia
31,800
35,000
31,500
33,000
36,750
36,700
35,300
TMT
12 mm dia
31,600
34,500
31,500
33,000
36,000
36,700
34,400
TMT
16 mm dia
31,600
34,500
31,500
33,000
36,000
36,700
34,400
TMT
20 mm dia
31,600
34,500
31,500
33,000
36,000
36,700
34,400
TMT
25 mm dia
31,600
34,500
31,500
33,000
36,000
36,700
34,400
Angle
50 x 50 x 6
32,500
33,500
33,500
34,000
35,000
36,000
34,600
150 x 150 x 12
35,000
NA
34,000
39,000
36,000
41,000
36,000
75 x 40
32,900
34,000
34,000
34,800
35,000
37,000
34,600
100 x 50
32,500
34,000
34,000
34,800
35,000
37,000
35,100
125 x 65
32,500
34,000
35,500
35,000
35,500
37,500
36,500
150 x 75
33,000
34,000
37,000
35,000
36,000
37,500
36,500
200 x 75
33,200
NA
36,500
36,500
36,500
38,000
36,500
300 x 90
34,000
NA
38,500
37,500
36,500
39,000
37,000
400 x 100
34,500
NA
41,500
39,000
40,000
41,000
37,000
125 x 70
33,300
38,500
41,000
35,500
37,500
38,000
36,500
150 x 75
33,000
35,500
41,000
35,500
36,000
38,000
36,500
200 x 100
33,000
38,500
31,000
35,500
36,500
38,500
37,000
250 x 125
33,300
NA
31,000
36,000
37,000
39,000
37,500
300 x 140
33,800
NA
31,000
37,000
37,500
40,000
37,500
400 x 140
34,800
NA
31,000
38,500
41,500
42,000
37,500
450 x 150
35,200
NA
31,000
40,000
43,000
43,000
37,500
500 x 180
36,300
NA
31,000
40,000
45,000
45,000
37,500
600 x 210
38,300
NA
31,000
42,500
48,000
47,000
37,500
5-12 mm
34,600
NA
31,000
36,000
35,000
38,500
40,000
12-20 mm
34,600
NA
42,000
36,000
35,500
39,000
40,000
21-40 mm
34,800
NA
42,000
37,500
36,500
40,000
40,000
Reinforcement
Channel
Beams
Plates
Mumbai: Sunil Nagori, Sansui Steel Pvt Ltd. Tel: 022-2867 3673. Mobile: (0) 98211 13673 Pune: Ashish Kasat, Manish Industrial Corporation. Tel: 020- 2612 4182. Mobile: (0) 94220 15212. Delhi: Vijay Buddhiraja, Vijay Steel Con Pvt Ltd. Mobile: (0) 98100 67011. Chennai: Kunal Maheshwari, Kapil Metal Processing Agencies. Tel: 044-2522 5443. Mobile: (0) 95000 95902. (Ravi Sanker). Hyderabad: Sunil Surana, RK Steel Udyog Pvt Ltd. Mobile: (0) 92463 35002, 92465 74433. Bengaluru: Umang Agarwal, Kaushalesh Steels. Mobile: (0) 98450 22217. Ahmedabad: Ankit Mehta, Shree Mallinath Steel Traders. Tel: 079-6524 7800. Mobile: (0) 99254 60170.
* Figures are approximate and subject to change denotes increase in price compared to previous month. denotes decrease in price compared to previous month.
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WOOD
(Unit:1cu ft; Price in `)
Sal Wood
Mumbai
Delhi
Chennai
Pune
Hyderabad
Bengaluru
Ahmedabad
Kolkata
550-1,250
1,975
2,100-2,300
1,250
1,100-1,250
1,350
NA
2,400
Silver Wood
NA
1,750
380-680
500
NA
650-800
NA
NA
Sagwan Wood
1,050-6,000
1,200-3,600
NA
2,850
1,300-6,000
3,500-8,000
1,650-1,850
3,600
Pine Wood
550
480
1,400-1,950
900
NA
NA
900-1,150
NA
PLYWOOD
(Unit:1sq ft; Price in `) Mumbai
Delhi
Chennai
Pune
Hyderabad
Bengaluru
Ahmedabad
Kolkata
Commercial 4 mm 6 mm 12 mm 18 mm
15.5 22.5 36 45
16.5 21.5 45 54
22 32 49 68
26 32 55 75
NA 33 43 53
12 20 35 45
29.96 41.95 55.13 110.31
18 28 38 48
Waterproof 4 mm 6 mm 12 mm 18 mm
28 36 48 60
21.5 37.5 52 65
38 55 78 120
32 40 62 90
NA 47 65 84
22 30 45 55
37.76 50.63 62.94 100.71
25 35 50 70
MDF
(Unit:1sq ft; Price in `)
6 mm
Mumbai
Delhi
Chennai
Pune
Hyderabad
Bengaluru
Ahmedabad
Kolkata
18.50
13.5
25
26
18.5
16
31.82
18
9 mm
26
18.75
30
33
29.5
22
37.12
24
12 mm
24
26.5
38
45
36
30
47.74
32
18 mm
48
37.75
45
60
40
45
63.64
48
Mumbai: Lucky Ply & Laminates. Tel: 022-6113 0000. Mobile: (0) 74981 88777. E-mail: umesh@timexply.com Bharat Kothari, Kunal Timber (Wood & MDF). Tel: 022-2836 5879. Mobile: (0) 98696 20982. Delhi: Gangan Mohan, Ashu Plywood. Moblile: (0) 98117 16949. Chennai: Deva Kumar, BIS Building Interior Solutions. Mobile: (0) 90430 72221. Pune: Praful Chaudhary, Kailash Shah, Mayur Plylam. Tel: 020-2638 6678. (Wood, Plywood, MDF). Harshid Jain, Shree Vinayak Plywood and Hardware. Mobile: (0) 98237 48729. Hyderabad: Ali Mohammed, New Fame Timber Traders. Mobile: (0) 98480 43123, 98853 78122, 90000 10700. Deepak Patel, Parvathi Timber Traders. Mobile: (0) 99490 12853. Bengaluru: Govind Patel, Krishna Timber Depot. Mobile: (0) 98458 38640. (Wood and Plywood). Nilesh Kuhad, Darpan Glass and Ply Concepts. Mobile: (0) 98869 71801. Ahmedabad: Sumit Bagrecha, Virshakti Plywood. Mobile: (0) 98791 66731, 96620 04353. Kolkata: Subrata Das, Mangal Das, Das Timber and Traders. Mobile: (0) 98303 62659. (Wood, Plywood, MDF).
ELECTRICAL WIRES 1.5 sq mm 2.5 sq mm 4 sq mm
Mumbai 8.45 13.90 20.68
(Unit:1m; Price in `) Delhi 8.65 13.87 20.63
Chennai 7 13 17
Pune 8.5 13.55 20.73
Hyderabad 11 16 26
Bengaluru 8.11 13.89 20
Ahmedabad 9.45 15.17 22.17
Kolkata 7.84 12.6 18.75
Mumbai: Sushil Electricals & Co. Tel: 022-2208 4491. Delhi: Sanjay Taneja, Taneja Electrical and Lights. (Polycab). Tel: 011-6622 3747, 4644 0016. JS Electricals, Mobile: (0) 98111 56558. (Finolex). Chennai: Kamlesh Jain, Kamlesh Cable Co. Tel: 044-2539 2124. Mobile: (0) 98840 54386. Pune: Hitesh Parwani, Parwani Enterprises. Tel: 020-3993 6427, 4276 5947. Mobile: (0) 98904 76754. Hyderabad: Ramesh, Ramesh Electrical, Mobile: (0) 93488 88088. Bengaluru: Muni Raj, Amar Electricals. Tel: 080-2225 8173. Ahmedabad: Anil Patel, Darshna Electricals. Mobile: (0) 99980 11000, 99743 18982. (Finolex). Kolkata: Anand Singh, Sinha Electric Stores. Tel: 033-2235 4821. Mobile: (0) 90070 30333, 98302 70590.
STONES and TILES Granite Marble Makrana Kota Cuddappa
Mumbai 90-1,030 40-515 500-1,030 30.9 30.9
(Unit:1sq ft; Price in `) Delhi NA 50-500 NA 30 NA
Chennai 45-120 55-350 200-750 45-75 35-50
Pune 85-330 50-200 NA 55 46
Hyderabad 40-130 NA NA 35 35
Bengaluru 85-150 90-150 175-185 42 45
Ahmedabad 90-250 30-200 60-100 20-60 40
Kolkata 145-250 60 55 45 NA
Mumbai: Sushil Vohra, Vikas Marble and Granite. Tel: 022-2846 4150. Mobile: (0) 98923 43332. Delhi: Alok Hasija, Meera Marbles. Mobile: (0) 98111 11569, 92120 43662. Chennai: Sunil Agarwal, Sunshine Marbles & Granites, Mobile: (0) 91766 14499 . Pune: Santosh Ganeshkar, Mohan Stone Depot. Tel: 020-2612 8805. Hyderabad: Mohammad Abdul Muqeet, Super Stones and Marbles. Mobile: (0) 99662 83516, 98855 13354. Bengaluru: Mohammed Ali, Avon Granite and Marble Co. Mobile (0) 99458 82017. Ahmedabad: Rakhi T Neema, Rudra Ceramic and Stone. Mobile: (0) 78785 01212. Kolkata: SK Singh, Durga Marble and Tiles Co. Tel: 033-2552 1425. Mobile: (0) 94333 56962.
April 2016 Construction World
139
CALL FOR ENTRIES
11th AWARDS 2016 11th August 2016, Mumbai
The 11th CWAB Awards introduce a new category:
‘Noteworthy Projects’ Builders and Architects can nominate their projects across the following categories: UÊ,ià `i Ì >
UÊ `ÕÃÌÀ >
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A ‘Noteworthy Project’ in this context can include one which is either (but not limited to) one or more of the following: sustainable, energy-efficient, water-efficient, green, most affordable, has achieved (certain) milestones, has state-of-the- art amenities, set aesthetic benchmarks, used innovative materials, etc.*
About 7 Ê 7 , -: They are the most coveted awards of the architecture and building industry. The awards recognize the people and organizations responsible for the changing > `ÃV>«iÊ vÊ ÕÀÊV Õ ÌÀÞ\ÊÌ iÊ/ «Ê ÀV ÌiVÌÃÊ> `Ê Õ `iÀÃÊ vÊ ` >°
To submit your nominations and know more, please log on to www.CWABawards.com/Projects Contact: Vrushali Pawar | 022-2419 3000 | Email: Vrushali.p@ASAPPinfoGlobal.com ΎdĞƌŵƐ Θ ŽŶĚŝƟŽŶƐ ĂƉƉůLJ͕ >ŽŐ ŽŶ ƚŽ ǁǁǁ͘ t ĂǁĂƌĚƐ͘ĐŽŵͬWƌŽũĞĐƚƐ ƚŽ ŬŶŽǁ ŵŽƌĞ
www.ConstructionWorld.in
HRD
TIPS
MANOJ PANDEY, Head-HR, Ador Welding, shares more on his experience, learning and beliefs in human resource (HR) management.
H
e has always been passionate about interacting with people and has always enjoyed communicating and explaining any concept to a group. It was when one of his managers realised this potential, Manoj Pandey was transferred to a training role from his core technical job. There has been no looking back for him since, as his engagement with HR evolved and intensiďŹ ed. Today, as Head-HR of Ador Welding, he shares more on his experience, learning and beliefs with CW. Lessons learnt: In an enriching career spanning over two decades, there have been some experiences that have taught important life lessons. One of the most important lessons I have learnt is to acquire a skill, master it in a role, achieve excellence and then train and delegate it to someone else, so you can be free to learn the next skill. Distinct advantage: My engineering background and competencies gathered from it, helped me immensely in my HR career. Engineering
Existing skill gaps: I visit various B-schools and engineering colleges for campus hiring. From the kind of skill gaps I have observed, my simple advice to these institutions is to graduate students to understand their Well-established Manoj Pandey, Head-HR career motivation and select system or starting from ADOR WELDING companies or roles scratch? My preference accordingly. There are ample would be to start from scratch. opportunities available for deserving I feel suffocated working under too many candidates.Young job seekers today need tight policies and processes. While I am to try to learn as much as possible and not against structured policies and be a bit patient. If you excel in any work processes, I feel a certain amount of or role, you will get recognised sooner ambiguity, uncertainty or customisation or later. brings the best out of your mind. Every human being is unique and hence cannot be handled with 100 per cent set For budding HR processes and policies. professionals: Lots of talk and new theories are emerging about the evolved role of HR in business. While HR should Tackling the war for talent: always contribute to business, and align all In my opinion, buying talent must always employees and processes to business, we be the last option; you can do it any should not forget our basic work of day. But building talent is tough, ensuring employee well-being in any complicated and a lengthy process. organisation. Often, on the pretext of However, if done properly, it will give business results, human needs are ignored. immense satisfaction to employees as well We must be watchful of the same. as the organisation. education sharpens oneâ&#x20AC;&#x2122;s analytical ability, improves rational thinking capability, enhances multitasking ability and prepares one to learn any new concept.
To share your HR initiatives, write in at feedback@ConstructionWorld.in
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NEWSMAKERS Infra booster ostter Indian infrastructuree will soon get a Japanese boost with Takema Sakamoto, Chief Representive, Japan International Cooperation Agency (JICA), India, signing a pact with Sanjeev Ghai, Chief General Manager, IIFCL. The pact delegates JICA to provide ¥50 billion (Rs 2,866 crore) Official Development Assistance (ODA) loan for the implementation of PPP infrastructure financing projects in the country. The assistance will promote such developments in the field of non-fossil power projects by providing long term finance to private or public enterprises and the banks or public financial institutions. The terms of these ODA loans are quite concessional with the repayment period, after a grace period of six years, being 14 years and the rate of interest being a floating rate of the London interbank offered rate for six month deposits in Japanese Yen. With such assistance, it won’t be long before India achieves its target of ¥3.5 trillion of public and private investment and financing from Japan, including ODA, to India within five years.
EPC tracker
After carving a niche in the ro ads, ir rigation and in dustr ial sectors, Gayatri Projects has ad ded a new feat her to its cap by foraying into the fast-gr owing railway EPC se ctor. The compa ny, led by TV Sandeep Kumar Reddy , Managing Director, has w on a Rs 4,744 crore contract to design and bu ild the Iqbbalgarh-Vado dara secction of the W estern Deedicated Frei ght Cor ridor (DFC C). The project incl udes ddeessig ign and construc of civill, buildiin tion g and track wor ks for double line railw ay involving fo rmation in embankmen ts or cuttings, br idges, structures along with works rela ted to br idges across ri vers of Mahi an d Sabarmati. The contract, w on in consortiu m with Japan’s Sojitz C or p and L&T, is one of the country’s most ambitious infras tructure projects that pr omise to transfo rm the business landsc ape of India. It w ill not only play a key role in realising India’s manufacturing and industr ial as pirations, but also prove to be one of th e la rgest EPC opportunities in the country.
The port man Taking a leaf from the popular saying that you need right people for the right job, the government recently appointed Sanjay Bhatia, who was vice chairman and managing director of CIDCO, as Chairman of the Mumbai Port Trust (MPT). Bhatia, prior to his CIDCO assignment, was responsible for reforming the Sales Tax Department by introducing electronics returns and computerisation. His appointment at MPT assumes significance given Road Transport & Highway Minister Nitin Gadkari’s plan to develop over 1,000 acre that is owned by the trust. The project will include development of three-four towers exclusively for financial institutions, a convention centre, marina, entertainment zone and cruise terminal in the MPT owned areas. In CIDCO, Bhatia was responsible for planning and development of Navi Mumbai and other new towns in Maharashtra including special projects like Metro and Navi Mumbai International Airport. He has also played an important role in restructuring of state-run Maharashtra State Electricity Board (MSEB) into three companies. And, with his new appointment, one is to see the new records Bhatia will create for the Trust. We wish him all the best!
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