March 24-30, 2014 1

(L-R): NN Kumar, IRS, Chairman, JNPT; Dr Vishwapati Trivedi, IAS, Secretary, Ministry of Shipping; G K Vasan, Union Minister of Shipping; Milind Deora, Union Minister of State for IT & Communications & Shipping, among others

Volume 3 l Issue No 12 l March 24-30, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication

Talks between Rajasthan government and Binani Cement reach stalemate

Tribal workers in Pindwara await intervention from state government

cement supply has been reduced affecting the neighbouring states of Gujarat, Uttar Pradesh, Punjab and Haryana as well.

Joshi further said that the company is facing problems in its day-to-day functions as its bank accounts have been seized. The company has requested the government for permission to repay the demanded amount of Rs 154.51 crores in 36 monthly instalments. The company has never refused its liability of payment to the government, but has only made an appeal to the government to allow it to make the payment in instalments.

He informed that the government officials were also briefed with the fact that the company annually pays

The ongoing dialogue between the company management and government to restart production at Binani Cement Ltd has yielded no result so far, and uncertainty still continues over the issue. Through a dialogue process engaged with the senior government officials, the company management tried to solve the issue, but the government officials have so far not even considered the proposed solution by the company.

W i th the product ion a t the company’s cement unit coming to a halt, the state government has incurred a revenue loss of almost Rs 100 crore, while the company too has to face a loss of around Rs 90 crore. The government and the company

can never regain the huge amount of Rs 190 crore.

T h e c o m p a n y ’ s P r e s i d e n t (Company Affairs), R S Joshi has explained that he recently called on Principal Secretary Subhash Garg, Secretary Praveen Gupta and Commissioner Sanjay Malhotra and requested them to take a decision considering the proposal submitted by the company, but the officials flatly refused to look into the proposed solution.

While the stalemate on the issue continues, Joshi stated that the company commands 16 per cent share in the cement industry. With the stopping of production, not only cement prices have gone up, but the

an amount of about Rs 650 crore to the exchequer, both the state and Central government, as taxes, excise and other levies.

However, as the current general financial condition of the company has not been healthy, the company in this case has requested the government for a more sympathetic view and allowing the payment to be made in instalments.

He once again urged upon the government to settle and resolve the issue by allowing for payment, as the closure of the factory was taking a toll on the factory workers associated with the company and the industry in general.

Notably, on getting information

about the government’s attitude of not resolving the issue at the earliest, the workers based in Pindwara, the tribal area of Sirohi district, are disappointed, as their livelihood has been snatched away. The workers had hopes that the government would listen to the company’s version and their bread and butter would be regained, with the restart of production.

However, under the prevailing uncertainty the future of the workers still hangs in thin air. The workers are extremely angry and agitated with the government’s view. They question that if the company management has proposed to make the payments in instalments, why the government is not accepting it.

No high-speed rail, says India to China

Foundation stone laid for JNPT’s 330-meter container terminal

Ind ia w i l l not seek China’s assistance in exploring the possibility of setting up its first-ever high-speed rail line. The government’s decision is a setback to the China Railway Corporation, which has been aggressively planning to enter the Indian market. The company has, in a span of five years, constructed the world’s largest high-speed rail network in China.

The agreed minutes of the third Strategic Economic Dialogue (SED), which was held in Beijing last week, carried no reference to high-speed rai l development, unl ike in the previous round. China had pushed for listing high-speed rail as one area of cooperation under the SED’s infrastructure working group – one of the five groups that meet under the umbrella of dialogue.

The previous SED dialogue, which took place in New Delhi in November 2012, had highlighted three areas of rail cooperation: high-speed rail development programme, heavy haul and station development.

The minutes released on March 18, however, referred to “raising speeds of existing routes” instead of h igh-speed ra i l . The Indian railway officials said Japan had been awarded a contract to carry out a detailed project report into the feasibility of a Mumbai-Vadodara high-speed rail line. Officials denied that security concerns were a factor in leaving China out of India’s high-speed rail plans.

Arunendra Kumar, Chairman of the Railway Board, said that cost was the biggest factor. High-speed rail will involve building entirely new tracks, which would also require significant land acquisition.

Kumar estimated the cost at Rs 120 crore per km of track. India is, however, keen to get Chinese expertise in raising the speed on three railway corridors — between New Delhi and Agra, Kanpur and Chandigarh. Chinese officials said they could help raise speed from the current 130 km per hour to 160 or 200 km.

Last week, Ind ian Rai lways officials got a first-hand experience of China’s impressive railway network, travelling on a 325 km per hour train between Beijing and Tianjin, from Beijing’s sprawling new South Railway station.

China has rapidly developed what is now the world’s largest high-speed rail network, building 13,000 km of entirely newly laid track. Wang Mengshu, a prominent railway and tunnelling expert at Beijing Jiaotong University, who advised the government on its high-speed rail programme, said land acquisition would not be a major factor for India, as in China, most tracks ran on elevated rails and required minimal farmland.

Deputy Chairman of the Planning C o m m i s s i o n , M o n t e k S i n g h Ahluwalia, who chaired SED and met with Chinese Premier Li Keqiang, said high-speed rail network may not be cost-effective for India. “In terms of cost effectiveness, we will be the lowest income country to have a high speed rail (network),” he said.

I n C h i n a , t h e t r a i n s h a v e established an impressive safety record, said Wang. In five years’ time, the high-speed rail system has managed to attract twice as many passengers as the entire domestic airline industry.

Union Minister of Shipping G K Vasan laid the foundation stone of 330-meter stand-alone container terminal project of India’s largest container handling port, Jawaharlal Nehru Port Trust (JNPT), on March 5 in Mumbai. It was awarded to Nhava Sheva (India) Gateway Terminal Pvt Ltd.

The minister also awarded the mega project of development of the fourth container terminal at JN Port on design, build, finance, operate & transfer (DBFOT) basis to PSA Bharat Investments Pte Ltd and launched the software project for software development and ERP awarded to CMC Ltd.

JNPT had signed the agreement with Dubai-based DP World’s Indian subsidiary Nhava Sheva(India) Gateway Terminal Pvt Ltd (NSIGI) for development of a standalone container handling facility at the port

in Navi Mumbai at an estimated cost of Rs 600 crore. The concession agreement entails the development of standalone container handling facility with a quay length of 330 metres at JN Port, Sheva, Navi Mumbai.

Under the agreement, the terminal will be developed by NSIGT at an estimated cost of Rs 600 crore, with an estimated capacity addition of 0.8 million TEUs per annum. The project is slated to be completed by December 2015.

As per the PPP policy of Government of India, Jawaharlal Nehru Port Trust floated a global tender and DP World was the successful bidder for the project, with their offer of 28.9 per cent revenue share to the port. DP World has formed a special purpose vehicle namely NhavaSheva (India) Gateway Terminal Pvt Ltd to implement this project.

“We are very delighted that the foundation stone has been laid for 330 meter stand-alone container terminal project along with the award of mega project of development of fourth container terminal at JN Port to PSA Bharat Investments Pte Ltd and launch of software development and ERP project,” said N N Kumar, Chairman, JNPT.

Minister of State for Shipping, IT & Communications Milind Deora graced the occasion.

JNPT is the biggest container handling port in India, handling around 56 per cent of the country’s containerized cargo, first crossing the historic landmark of 4 million TEUs in container throughput in the year 2007-08. The port is currently ranked 31st among the top 100 container ports in the world.

March 24-30, 2014 2CONSTRUCTION

Both scaffolding and formwork are very

important accessories in the construction of both small and big projects

and also buildings

The following are a few helpful tips which all in the construction industry need to take note. This is necessary for smooth working of the job and safety of workers, machinery and equipment from start to completion of the construction job.

I have worked on many big projects in a number of states such as Assam, West Bengal, Bihar, Uttar Pradesh, Maharashtra, Gujarat, Punjab and so on, and also overseas). I have noted that most works suffered mainly due to formwork. That is why this item needs to be planned very well.

Form-oil I strongly feels that the use of

waste oil prepared from burnt diesel and sewage waste must be banned. It does more harm than good to RCC structures. Reinforcement rods get coated with this oil while applying it to the formwork, which reduces bonding capacity.

T h i s w a s t e o i l s p i l l s o v e r construction joints, and thus there is no proper bond of concrete placed over it and a weak joint is susceptible to leakages. Only the good quality mould release agent manufactured by good construction chemical companies must be used.

If the contractor feels that his rate does not permit him to use good mould release agent, it is better not to use any oil, rather than use waste-oil and harm durability of the structure.

I feel that this must be religiously followed as suggested, to achieve durability. Form-oil covers a fraction

Two important accessories in construction

Greywater to treat and recycle 75,000 litres wastewater per day at Club Mahindra

of the total expense and needs proper education, change of attitude and insistence from the owner to use only good quality mould release agent.

Construction chemical companies inform the following advantages when good quality ‘mould release agent’ supplied by them is used.

Mould release agentThe agent provides fair-faced,

stain-free concrete, together with easy stripping of the mould. It is resistant to heat, up to 100 degrees centigrade.

Plaster can be applied later on the surface as it does not give bonding problem.

Mould release agent does not get washed out during curing, making stripping of formwork easy.

It prevents wooden formwork from absorbing moisture and swelling and protects steel formwork against corrosion.

It is chloride-free, hence, does not affect reinforced concrete.

Coil rod (nut with threaded bolt tie)

We must use only coil rod – nut with threaded bolt tie. This is as per international standard. In this system there is no through and through hole formed in the RCC member and the tie rod reinforcement which gets embedded is 50 mm inside the face of the concrete. (Refer to sketch 1 and photo 1.)

Jayakumar Jivraj Shah An expert on waterproofing, repairs, durability of RCC buildings, fixing leakage

Greywater, a Mumbai-based specialized technology company that pioneers the next generation products for sewage and wastewater treatment, announced the commissioning of 75 KLD packaged GREWA-RS STP at Club Mahindra’s Holiday resort at Mahabaleshwar.

“We are extremely proud to announce that we have commissioned our latest revolutionary STP, GREWA-RS at Club Mahindra’s Resort in Mahabaleshwar. The STP will treat and recycle 75,000 litres of sewage water per day during peak loads at the resort.

“Our STP products are critically designed, keeping in mind the challenges faced by our clients from the hospitality industry. Mahindra Holiday & Resorts is one of our earliest customers and a repeat order from them is a direct testimonial for our superior technology and satisfactory services,” said Arun Dubey, Head, Strategy & Business Development, Greywater.

“Greywater has already installed a STP plant at our GIR facility and we are very satisfied with the plant and post-order support and services provided by the Greywater team. Thus Greywater R was our preferred choice for STP in Mahabaleshwar.

“The GREWA-RS STP installed at our resort will recycle up to 75,000 litres of wastewater in peak season” said Basheer Ahmed, Corporate Chief Engineer, Mahindra Holidays & Resorts Pvt Ltd.

The resort is located in a highly environment regulated zone of Mahabaleshwar, the treated water is being used for landscaping a n d c o m m o n a r e a c l e a n i n g . Mahabaleshwar sees seasonal variation in a number of tourists vis i t ing the area, thus there is predictable variation in occupancy of the resort. The GREWA-RS STP comes with a unique feature to sense the reduction in load and accordingly take actions to operate at lower loads.

Greywater is amongst the only

sewage, wastewater and effluent treatment. Funded by Nexus Venture Partners, Greywater’s compact plug-n-play products are being used in hospitality, commercial, hospitals, Sezs, IT parks, residential and industrial sectors.

The products significantly reduce space footprint by 30 per cent to 70 per cent and energy requirements by 40 per cent to 50 per cent compared to conventional plants. These plants

industry. This is supported on the masonary wall by providing pockets. (Refer to photos 2 and 3.)

Later, on the removal of the scaffold these pockets are not properly sealed, and remain a permanent source of leakage. There are innumerable examples, where no efforts are made, even to remove the portion of the horizontal member of the scaffold from the pocket of the masonary wall and the horizontal member is cut at the face of the wall, with the result, a portion of the bamboo/‘balli’ remains inside the masonary wall and becomes a source of severe leakage in the building.

There was severe leakage in the toilet block of managing director of a very reputed company and this was not resolved for many years. When I became involved it was decided to strip open the entire toilet, and to the surprise of everyone, bamboo pieces were left inside the masonary walls, which was the source of leakage not identified for years.

Hence this practice of single bamboo/‘balli’ scaffold needs to be totally discouraged. Let us provide double bamboo or ‘H ‘frame scaffold only, supported to inserts (photos show readily available M S bolt with anchor fastener used as insert and fixing of scaffold member to them) fixed to 16 mm anchor fasteners placed in RCC members by drilling a suitable hole and then hammering into it, when it splits and grips into it tightly.

(Please take note: Single bamboo scaffolding must be banned from safety

point of view.)

I worked as durability consultant on a building named Gitanjali built during 2001 to 2003 at of Napean Sea Road in Mumbai where these types of tie rods are used. I feel that possibly this is the first and the last building where these type of tie rods were used in India.

Design of formwork It is important to make a correct

assessment of forces due to weight of fresh concrete, wind, workmen and equipment, lateral pressure of green concrete and so on.

The weight of fresh concrete and lateral pressure exerted depend, among other things, on density of concrete, its slump, rate of pour,

method of discharge, height of discharge, concrete temperature, dimensions of sections to be cast, reinforcement detai ls, concrete vibration technique adopted and so on.

Scaffolding Single bamboo scaffold is very

commonly used in the building

are designed and built to handle variable loads and require minimal manual intervention.

Greywater ’s c l ients inc lude corporates such as Dahej Sez, M a h i n d r a H o l i d a y s , O b e r o i Realty, Gemco Power, Unitech, Leighton Welspun. The Greywater team compr ises exper ienced professionals, with over 108 years of combined industry experience.

company in India to provide truly packaged and next generation STP products. In the past three years the company has enabled several prestigious clients such as Leighton Welspun, Mahalaxmi Developers, Dell, Unitech, Wadhwa Builders and others to make their projects water sustainable.

Greywater i s a spec ia l i zed technology company that pioneers the next generation products for

1. Coil Nut Tie Rod 2. Coil Nut manufactured from 5 mm MS Rod3. Wooden or Plastic Cone 4. Rope Threaded Tie Rod 5. Inside Face of Formwork

Photos Samir Shirali

Sketch 1

Photo 1

Photo 3

Photo 2

March 24-30, 2014 3CONSTRUCTION

Cast on Cast considerably reduces material loss and time involved in designing,

manufacturing, transporting and

assembling expensive formworks and

scaffoldings

Efficient fabrication process

The use of complex geometries in contemporary architecture is common nowadays. However, known methods for creating such geometries, at least in the construction industry, are associated with considerable waste of time and materials. This affects the overall costs of a building project and damages the environment.

To date, no efficient and sustainable ways of building complex geometries, desired by most of contemporary architectural designs, are known. Can we design a sustainable way of fabricating geometrically complex architecture?

Parametrization systemCast on Cast, ef f ic ient and

sustainable fabrication process, is an investigation on the field of building technology, which aims to design an efficient and sustainable manufacturing system of complex geometries in architecture.

The research deals with the invention of a parametrization system of surfaces and its application in a novel efficient fabrication method of components for construction of geometrically complex shell structures, building envelopes and pavements.

B o t h t h e p a r a m e t r i z a t i o n system and the fabrication method complement each other. The first one is the brain, the mathematical

part; the second one makes the link with material and, therefore, makes possible the development of research as an architectural project.

The parameterization system consists of a set of mathematical algorithms which explore the idea that three-dimensional surfaces can be subdivided into smaller elements, which can be stacked in towers, one on top of the other ones.

New manufacturing systemThe fabrication method is a new

Cast on Cast considerably reduces material loss and time involved in designing, manufacturing, transporting and assembling expensive formworks and scaffoldings. An investigation that challenges the sterility of the existing processes and proves that the simplest ideas are the shortest way to achieve sustainability in construction.

Innovation and transferability Cast on Cast is an investigation

of a multidisciplinary nature, which connects the fields of mathematics,

Ethical standards We b e l i e v e t h a t e v e r y o n e

deserves to enjoy spatially interesting architecture and, therefore, one of the main goals of the project is to design a system that fabricates geometrically complex architecture affordable to anybody.

To achieve this, the research intends to improve the existing building practices, rather than replace them, by helping them to get higher standards in the construction of geometrically complex structures, while using same building materials and similar methods.

Environment quality Cast on Cast has environmental

advantages in all the stages of the building industry.

Design: Instead of bui ld ing passively what has been designed by the architect, the system proposes checking during the design process the feas ib i l i ty o f const ruct ion under efficiency and sustainability principles.

Fabrication: The innovative idea of production, which does not require specific moulds and formworks, reduces the use of material resources and minimizes the production of waste.

Transportation: The components are stacked in towers using the space in the most efficient way, which reduces time and pollution.

Construction: The assembly of the components, which does not require specific scaffoldings, reduces time and the use of material resources as well as minimizes the production of waste.

Demolition: The system follows the principles of Design for Disassembly (DFD), substituting demolition by disassembly.

Economic performance The system supposes the following

economic benefits: The merging of the building stages into one simple process reduces the time of coordination and, therefore, speeds up the building process.

The decrease on the need of molds, formworks and scaffoldings brings down drastically the production and construction costs. The reduction of waste produced during the fabrication and construction phases minimizes the cost of its transportation and the landfill fees.

Aesthetic impact Apart from the unquestionable

visual attractiveness and spatial quality of the geometrically complex shell structures, with their folds, double curvatures, openings and textures, the investigation pursues the beauty of those architectural projects which, by their overwhelming simplicity, are able to achieve more with less.

Project dataProject group: Materials, products

and construction technologiesProject background: Academic

researchEstimated start of construction:

Not applicableThe jury commended this project

which innovatively challenges new methods of designing and fabricating geometrically complex building elements and in addition provides efficiency improvements in terms of materials, storage, and transportation.

Overall, the project presents a way that considers simultaneously the design of free and ambitious shapes, as well as the material efficiency and economy of constructions.

manufacturing system based on using the previous product as a mould to shape the next product. This fabrication method relies on an additive process of casting components ones on top of the previous ones by using digital fabrication technology.

The process requires both parts to operate. First of all, the architect designs a three-dimensional surface and analyzes it with the parameterization system, which subdivides the surface into components capable of being stacked in towers.

Secondly, the coordinates of these components are converted to G-code programming language and transferred to the CNC machine, which manufactures the components. Finally, the towers of components are transported to the site where they are detached and assembled into the desired surface.

architecture, civil engineering and digital fabrication technologies. The research deals with the following:

The discovery in mathematics of a new parametrization system of three-dimensional surfaces, which is based on the idea that any surface can be subdivided into smaller components capable of being stacked in towers.

The invention of a logic of production based on using the previous product to shape the next product, which materializes in a fabrication process of customized components for construction without requiring molds, formworks or scaffoldings.

The combination of these two findings aims to design an efficient and sustainable system for the construction of complex geometries in architecture, in which design and fabrication are naturally welded into one simple process.

Cast on Cast components fabricated in towers Cast on Cast components assembled in surface

Edward Schwarz General Manager, Holcim Foundation for Sustainable Construction

March 24-30, 2014 4INFRASTRUCTURE

IL&FS Engg bags `300-cr Kolkata metro station contractIL&FS Engineering & Construction

Company Ltd has been awarded Rs 299.76-crore contract by Rail Vikas Nigam Ltd, Kolkata. This entails construction of seven elevated metro stations from Sub CBD-1 to Titumir in the New Garia-Airport Metro Corridor of Kolkata Metro Line in West Bengal. The project is to be completed in 36 months from the date of issue of Letter of Acceptance (LoA).

Mumbai-based IRB Infrastructure Developers has approached the National Highways Authority of India

IL&FS Engineer ing Services is already executing two railway contracts for RVNL, worth over Rs 500 crore. While one involves construction of a new broad gauge railway line in Kadapa and Nellore districts of Andhra Pradesh, the other involves doubling of the Bhigwan–Mohol Section (127.14 km) part of the Daund–Gulbarga Doubling in Solapur Division of Central Railway in Maharashtra.

(NHAI) for rescheduling premium payments related to two of its stressed projects.

IL&FS Engineering Services is also executing the Rapid Metro Project phase-2 in Gurgaon involving construction of 6.7 km of elevated viaduct, and 5 elevated stations of around Rs 350 crore value. The company executed RMRG (phase-1) contract worth Rs 259.30 crore, which involved construction of a single and double-track elevated viaduct, including six station buildings.

IRB’s first developer to seek the relief package is cleared by the government for salvaging road projects stressed due to less-than-anticipated toll revenue or delays in clearances. The company’s proposal is for two of its projects: 6-laning of the Ahmedabad-Vadodara (102 km) stretch and 4-laning of the Tumkur-Chitradurga (114 km) stretch in Karnataka. While the total value of the Ahmedabad-Vadodara project is Rs 2,226 crore, that of the Tumkur-Chitradurga project is Rs 839 crore.

After the much-talked makeover of government flats in Delhi’s Moti Bagh, public sector company National Buildings Construction Corporation (NBCC) is looking outside the national capital.

It is planning to redevelop at least three government housing projects worth Rs 5,000-6,000 crore in other parts of the country. The company is also exploring opportunities in Africa and West Asia to expand its business.

It has signed an agreement for makeover of a government building in Bhubaneswar, while pacts for another two projects – Kolkata and Bhopal — are expected to be signed shortly, said NBCC Chairman Anoop Kumar Mittal.

The old government housing structures will give way to high-rise buildings in the three cities to give it a contemporary look, as well as make optimum utilization of space. In Bhubaneswar, NBCC will redevelop

two government properties of 100 acres each.

It is still in discussions with the West Bengal and Madhya Pradesh governments for redevelopment of government properties with an area of 20-30 acres each and expects to sign final agreements by June.

Currently, NBCC is in the process of redeveloping flats in East Kidwai Nagar in Delhi. Earlier, it redeveloped Moti Bagh, where high-rise apartments as well as commercial spaces have come up in the complex, plus a club, banquet halls and amphitheater.

It has another three projects in Delhi – Netaji Nagar, Tyagraj Nagar and Kasturba Nagar — in the pipeline, estimated at Rs 10,000-15,000 crore. NBCC also received board approval for opening offices in Muscat in West Asia and Botswana in Africa. “We hope to get new orders from these countries within a year,” said Mittal. NBCC is already executing project management consultancy projects in Maldives.

NBCC to redevelop govt projects in 3 cities

IRB first to sign up for road premium recast

India Infoline Ltd’s (IIFL), a non-banking financial company, India Infoline Finance Ltd, and some of its wealthy clients have together invested Rs 150 crore in a 500-acre Navi Mumbai township project of property developer Wadhwa Group.

S r i n i vasan Gopa lan , Ch ie f Financial Officer & Chief Operating Officer, Wadhwa Group, said the company has completed acquiring land for the project and will now

begin work on infrastructure such as roads and sewage.

“We have land permissions in place and the project is a year away from launch,” he said. After developing the entire project, Wadhwa Group will give 1.2 million sq ft of built-up or developed area to Gulf Finance House in about eight years.

This is in addition to an upfront payment already made to the Bahrain bank. India Infoline’s first real estate fund also invested around Rs 350

crore in Wadhwa’s high-end residential project in Chembur, in suburban Mumbai, last year.

While many large developers today stay away from such long-gestation, capital-intensive projects, some large projects are still underway. Earlier this year, Mumbai’s Lodha Group announced an 800-acre township with an investment of close to Rs 14,000 crore as part of its plan to develop the ‘Palava’ project on 4,000 acres of land between Navi Mumbai and Dombivli.

IIFL invests in Wadhwa Group’s Navi Mumbai township

`4.5-lakh cr projects seekingbank loans suggest industry revival

Adani may divest 50 pc stake in Australia rail projects

Ramky Infra commissions toll way road project in AP

Ramky Infrastructure Ltd has commenced commercial operations (tol l ing activit ies) at the 4-lane Narketpally-Addanki-Medarametla Road (state highway-2) in Andhra Pradesh with effect from March 11, 2014.

The toll way road project was awarded to the joint venture of Ramky Infrastructure Ltd and IL&FS Transportation Networks Ltd in the ratio of 50:50 by the Andhra Pradesh Road Development Corporation.

The project is based on tol l collection with a concession period

of 24 years including two-and-a-half years of construction period. To ease the liquidity concerns, the company’s board of directors last month discussed the possibilities of sale of some of its operational road assets.

Cabinet may take up plan for border road projects

The Centre is likely to consider a proposal for setting up a company, the National Highways Construction Company, for building roads in border areas and north-eastern regions. The Cabinet in its meeting scheduled may approve the Road Ministry’s proposal of setting up the new company.

“The NHAI undertakes mainly road projects on build, own and

operate basis all over the country and this proposed company will focus only on constructing border roads and highways in the north-east,” said a road ministry official.

The government may put in close to Rs 30 crore capital initially in the company. At present the country’s road network is 33 lakh km, of which over 79,000 km are national highways.

As per the data collected by the Finance Ministry, 103 new projects/proposals, with investment size of Rs 250 crore or more in each have come in. The number of proposals is lower compared with the July-September quarter, but the investment amount is higher. It may be noted that banks got a total of 173 projects/proposals with total

The Ahmedabad-based Adanis is planning to sell half their stake in projects they took over in 2011 to develop an Australian coal mine and lay a rail line to finance a part of the $8-9 billion investment needed. The Adanis is in negotiations with China Rail Corporation and another Chinese company but no deal had been finalised, said a high-ranking executive in the Adani group.

The Carmichael mine, in which the

investment of over Rs 3.24 lakh crore.The commercial real estate sector

topped the list in terms of number of proposals, but in value terms the power sector is way ahead of the other sectors. Iron & steel, telecom, oil & natural gas and railway infrastructure are other leading sectors which have pitched in with proposals.

Adanis is planning to shed half their stake, needs an investment of around $5 billion. Another $2.5 billion must be spent on a 400-km rail line to cart the coal to a port, which in turn will need yet another $1 billion to build.

The $8-9 billion Australian project is ambitious for the Adanis. When ready, it will be the biggest coal mine development in Australia. The project is expected to start exporting coal from 2017.

March 24-30, 2014 5IN PERSON

It is now almost 20 years since Sobha Developers was founded. How instrumental has it been in transforming the real estate definition in the country?

We have come a long way since our founder, PNC Menon, started the company in 1995. Our focus has always been on providing the highest quality products, timely del ivery, customer sat isfact ion and transparency in all spheres of business.

All these factors have contributed in making Sobha one of the most preferred real estate brands in the country. Sobha is a process-driven organization and has constantly maintained uniformity, be it in timely complet ion of projects or high standard of quality that reflects in every project done till date. In the real estate sector, Sobha has become a brand to reckon with.

How would you justify the claim that Sobha is “the largest and only backward integrated real estate player in India”?

The backward integration model is one of Sobha’s key competitive strengths. This means that the company has all the key competencies and in-house resources to deliver a project from conceptualization to completion. Backward integration includes an interiors division with one of India’s largest woodworking factories, a metal works and glazing factory, and a concrete products factory.

The Interiors Division is engaged in woodwork and manufacturing wood or wood-based products of the highest quality, superlative finish and incredible durability, including doors and w indows, wooden floorings, ceilings, panels, pillars and staircases, and custom-built furniture for commercial and residential use. In addition, this division also includes an in-house woodworking design studio and a dedicated design team that provides interior design schemes and production specific drawings.

The Glazing & Metal Works Division carries out metal fabrication work such as aluminium windows and doors, structural, and architectural glazing. The fabrication activities are

‘Indian real estate annual revenue $180 b by 2020’

Bengaluru-based Sobha Developers is the only backward integrated real estate company in India. Since inception, Sobha has completed 88 real estate projects and 234 contractual projects covering about 5.37 million sq metres (57.87 million sq feet) of area. The company currently has 45 ongoing real estate projects aggregating to 2.58 million sq metre (27.77 million sq ft) of developable area and 1.79 million square metres (19.35 million sq ft) of saleable area, and 38 ongoing contractual projects aggregating to 1.03 million sq metres (11.11 million sq ft) under various stages of construction. J C Sharma, Vice Chairman & Managing Director, Sobha Developers Ltd, highlights the company’s remarkable journey and achievements, exponential growth of the real estate sector and its contribution to the national GDP, in this interview with Dilip Phansalkar. Excerpts:

carried out at the factory premises, whereas assembly and the installation are carried out at the project sites.

The Concrete Block Making Division manufactures concrete blocks, pavers, kerbs, water drainage channels, paving slabs and related landscape products.

All our factories are state-of-the-art and have a built-up area of over 55741.824 sq metres (600,000 sq ft), comparable to some of the best of its kind.

Leveraging our expert ise in manufacturing capabil it ies, this in-house init iative brings to the table a formidable resource that embodies performance parameters that are world-class. Sobha is one of those rare companies practicing backward integration, which takes us ahead in maximizing value for our stakeholders!

What elements have helped the company become a preferred real estate brand?

Sobha is a brand renowned for quality of work and timely delivery of all its projects. Being the only Indian backward integrated company in the sector, we ensure that only the best quality materials are used in building our homes.

It also reduces our dependency on input materials, thereby ensuring prompt delivery of all our projects. Our skilled workforce and highly trained professionals work assiduously to ensure that we give the best possible living experience to our customers.

We believe in the adage ‘Customer is the King’. Our line of services do not end with the sale of the property. Our customer relationship management team consists of highly qualified professionals who work tirelessly to

give our customers the best possible post-sales service.

Our transparent operations and full disclosure policies have garnered the faith of all our investors. We have been and we will continue to create maximum value to all our stakeholders.

Would you like to elaborate on the company’s ‘superior execution capability’ which is one of its core strengths?

Sobha’s super ior execut ion capability is its core strength. Since inception, Sobha has completed 88 real estate projects and 234 contractual projects covering about 5.37 million sq metres (57.87 million sq feet) of area.

The company current ly has 45 ongoing real estate projects aggregating to 2.58 million sq metre

(27.77 million sq ft) of developable area and 1.79 million square metres (19.35 million sq ft) of saleable area, and 38 ongoing contractual projects aggregating to 1.03 million sq metres (11.11 million sq ft) under various stages of construction.

The company has a real estate presence in 8 cities, viz. Bengaluru, G u r g a o n , C h e n n a i , T h r i s s u r, Coimbatore, Pune, Mysore and Kozhikode. Overall, Sobha has a footprint in 24 cities and 13 states across India.

Acquiring large tracts of land in various states and cities for over 300 projects during the past 18 years must have been a difficult and mammoth task.

It is indeed a challenging task to acquire a clean land parcel. It is more difficult to aggregate the same. However, when we create a professional team of highly competent people and set up the right processes, it works better.

Which states came across as developer-friendly, offering the company the cooperat ion i t needed in undertaking construction projects?

Our home base, Bengaluru market, has been the most favourite market for the growth of the real estate sector. This city is home to about 850,000 IT/ITES professionals who drive the demand in this market.

During the time frame of July 2013 to September 2013, 21,000 new jobs were created in the city, up 12.3 per cent from Q1 where 18,700 new jobs were created. With the creation of numerous job opportunities in the city due to the IT boom, which accounted for 67 per cent of the total jobs created in this period, people from all over the country migrated to the city and began settling down, leading to an increase in the demand for real estate properties.

Kerala is another such market that has favoured the growth and development of the real estate sector. This market is primarily driven by NRIs. With the rupee depreciation, more and more NRIs began to invest

(contd. on pg. 11)

in India, Kerala market to be more specific.

These two places hold immense potential for growth as far as the real estate sector is concerned.

Would you like to throw some light on the ‘backward integration model’ the company is so proud of?

Sobha is the only backward integrated real estate company in India. The various divisions included in the backward integration model are:

Sobha Interiors Division: Set up in 1999, Sobha Interiors Division more than exemplifies Sobha’s thrust on backward integration. Sobha Interiors is an endeavour to create products of consistent high quality adopting unique construction methodology, superlative finish and lasting value.

Sobha City, Bengaluru

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Sobha Lifestyle, Bengaluru.

March 24-30, 2014 6PROJECTS UPDATE

Tata Group draws $8 b in infrastructure plan

Cyrus Mistry, Chairman of the Tata Group, is planning to spend at least $8 billion in building roads, airports and housing, betting a stable administration after the country’s coming elections will lead to a new wave of infrastructure development.

Mistry, 45, who took over as the group’s Chairman in December 2012 after Ratan Tata’s two decades at the helm, is expanding at least three unlisted infrastructure companies within the $100-billion conglomerate. The businesses will get more attention after Mistry has overhauled operations at bigger, listed Tata companies, including the auto and steel units. The initiative from Tata underscores the hope among Indian corporates that infrastructure project approvals and spending will pick up when a new government is formed after elections ending in mid-May.

“Mistry looks at this sector as a phenomenal opportunity,” said U R Bhat, Managing Director of the India unit of UK-based Dalton Strategic Partnership which manages $2 billion globally. “It’s a natural extension of their capabilities. Tata has the financial muscle to bid for the biggest of the projects and dominate,” he said.

India needs to spend $2.2 trillion by 2030 on urban transportation, housing and office space to boost infrastructure ranked below that of Guatemala and Namibia by the World Economic Forum, McKinsey said in a 2010 study.

Tata Housing Development, Tata Projects and Tata Realty & Infrastructure (Tril) which builds techno logy pa rks , ma l l s and residential complexes, are among the infrastructure units that are

aiming to more than triple their order books to Rs 70,000 crore in five years, said Sarika Kapoor Chokshi, a Tata Sons spokeswoman in Mumbai. Tril plans to spend Rs 22,700 crore in the next five years, building highways, airports, hotels and urban transportation, according to a presentation made by MD Sanjay Ubale last June.

Tata Housing is developing 26 projects across 10 Indian states. Mistry also is encouraging the units to seek contracts abroad, in particular in western Asia and southern and western Africa. The Tata management expects infrastructure activity will expand in a year or two after a new Indian government spurs an economic rebound, said a person familiar with the developments taking place.

India, Saudi Arabia to channelize $750 b into infra

In what will channelize investments from oil-rich Saudi Arabia into India’s infrastructure sector, India and Saudi Arabia have formalized the structuring of the $750-million (about Rs 4,650-crore) India-Saudi Investment Fund that was announced during Prime Minister Manmohan Singh’s visit to Riyadh in 2010.

The infrastructure sector requires an estimated $1 trillion (or Rs 62 lakh crore) in investments over the next four-five years. Top official sources said that following the recent visit of Finance Minister P Chidambaram to Riyadh in January this year, both sides have finally agreed to proceed with the setting up the fund and have decided to appoint nodal points in a time-bound manner.

“Joint secretary (infra) in the department of economic affairs (DEA), the Ministry of Finance will be the nodal point from the Indian side and director general, Public Investment Fund, shall be the nodal point from the Saudi side,” said officials.

Saudi Arabia is India’s fourth-largest trading partner at $43.78 bill ion in 2012-13. During April-November 2013-14, the two-way trade was $32.7 bil l ion. India’s imports of crude form a major part of this trade with almost one-fifth of the country’s oil imports coming from Saudi Arabia.

Besides Saudi Arabia, other cash-rich Gulf nations including Kuwait, Abu Dhabi and several other

sovereign wealth funds (SWFs) from across the globe including Japan, UAE , Norway, Canada among others have also shown interest in investing in India’s infrastructure projects including the Delhi Mumbai Industrial Corridor, power projects, toll bridges, civil aviation and oil and gas projects.

L e a d i n g S W F s h a v e a l s o expressed interests in investing in government bonds f loa ted specifically for funding infrastructure projects, officials said.

“India is preferred as one of the top three investment destinations amongst the emerging economies of Brazil, China and India. Returns on infrastructure in India are among the highest in the world,” they added.

The environment clearance given to the Rs 5,000-crore Vizhinjam sea port has come under the scanner of the National Green Tribunal (NGT), Southern Bench.

Admitting an appeal that challenged the clearances given to the project, the tribunal Bench on March 14 directed the Union government, the Kerala government, the Kerala State Pollution Control Board, and Vizhinjam International Seaport Ltd to file their replies on April 25. The appeal seeks to know if there is any procedural lapse on the part of the authorities in giving clearance for the project.

The Bench, comprising its judicial member Justice M Chockalingam and expert member R Nagendran, sa id , “The appea l ra i sed an important question concerned with environment.”

The appeal was filed by social workers A Joseph Vijayan and P Michael and fisherman of Poonthura P Christopher. They challenged the environment clearance and coastal regulation zone clearance for the port, to be developed in open sea by reclaiming coastal waters.

They submitted that fishermen and their families at Poonthura were affected by shoreline changes, which were occurring because of structures put up along the foreshore and construction of port structures.

The appellants said the Union Ministry of Environment & Forests had granted the env i ronment clearance to the project proponent without considering the deleterious effects of the proposed port on the rich, diverse, and pristine marine environment of the coastal waters owing to reclamation and construction of artificial structures.

The impact on the fragile coastal land owing to shoreline changes as a result of construction of artificial support structures for the port such as breakwaters was also overlooked. The ministry did not consider the plight of the fishermen and the thousands of people living in the area while granting the clearance.

The appellants also said the public hearing was not conducted in accordance with the procedure provided in the Environmental Impact Assessment Notification, 2006.

Clearance given to Vizhinjam port under green

tribunal lens

Centre urged to reconsider decision on new AP port

NHAI to invite fresh bids for NH-73 project

The Union government has been urged to reconsider its decision to locate the second major port in Andhra Pradesh at Dugarajapatnam in Nellore district, and to stick to the original plan of constructing the port at Ramayapatnam in Prakasam district.

The Organisation for Development

With Gammon Infrastructure Projects Ltd pulling out of the four-laning project of the Yamunanagar-Panchkula highway (NH-73), the National Highway Authority of India (NHAI) has decided to invite fresh bids for the project.

In a communication to the Haryana government, the NHAI urged the government to take “expeditous wildlife and forest clearances and disbursement of compensation to enable the authority to invite bids for the project”.

Ear l i e r, the concess iona i re had issued notice to the NHAI for the closure of the project citing reasons of uncertainty for obtaining approvals from the Departments

of Prakasam District said 2-3 million tons of cargo (tobacco, granite and others) originates from Krishna, Guntur and Prakasam districts and the port at Ramayapatnam can also attract cargo from Telangana and Rayalaseema, making it a viable proposition.

of Forest for protected forest and wildlife sanctuary, non-availability of land and escalation of the cost of construction material for the unviability of the project.

Meanwhile, Vijay Bansal, president of the Shivalik Vika Manch, who has been taking up issue with the NHAI and the Haryana government for a long time, urged the state government to get all clearances before the bids were invited again by the NHAI.

The project had been hanging fire for the past over two months as the mandatory clearances from the Forest Department were yet to be obtained, forcing Gammon India to withdraw from the project.

March 24-30, 2014 7CONSTRUCTION

ConstructSim V8i is a revolutionary programme that

optimizes your project through planning and execution of

construction activities

Bentley’s RM Bridge software

The Bridge Information Modeling ( B r I M ) i s a c o m p e l l i n g n e w methodology for project delivery that dramatically improves bridge quality and reduces risk. Using the Bentley bridge solution for BrIM, engineers develop and employ an unprecedented depth of information about the bridge as they streamline the entire bridge development process, design through construction engineering.

ConstructSim V8i is a revolutionary programme that optimizes your project through planning, sequencing, execu t ion and mon i to r i ng o f construction activities from within a virtual plant model.

ConstructSim V8i links together project IT systems, including the 3D CAD model (all major formats: Auto Plant, PDS, PDMS, etc), schedule, materials management system, project controls databases and others to create an integrated virtual environment that is constantly up-to-date.

Integrated virtual environment

This integrated virtual environment enables the following functionality within ConstructSim V8i:

Virtual walk through; 4D (3D+time) schedule simulations; automated construction material take-offs; automated detail task list generation; lifecycle status tracking (colour coding material availability and progress by area, system, spool/sheet, piece mark, task, etc)

Pipe and steel work packaging at weekly crew level; generic work packs for other disciplines (E&I, civil, mechanical) that take advantage of the database more than the virtual plant model.

Pipe and steel change order impact analysis; tracking of the design changes back to the model.

8-week look-ahead planner/constraint analysis and crew planning (Beta); weld tracking QA/QC (Beta); crane and scaffold simulation/crew density analysis (Beta).

Improved productivityMany EPC f i rms have spent

millions of dollars and many years developing in-house construction automation systems that offer only a portion of the functionality provided by ConstructSim V8i. The implementation of ConstructSim V8i on your project will improve productivity by providing the following benefits:

Improved constructability analysis, interactive planning and coordination between engineering office and site field office using Virtual Plant Model.

Visually plan more optimal pipe installation and hydro test work crew packages; streamline material, equipment and sequencing; reduce rework/out-of sequence work; automated task estimates/automate data entry; speed time to start-up by systems tracking; Better predictability of where you are on the project; reduce time looking for information via visually monitoring the status of engineering, materials and construction execution progress.

Most automated planning tool

ConstructSim V8i and workflow methodology for pipe workface

planning have experienced savings ranging from 1-5 per cent of the total installed cost of the project.

ConstructSim V8i is by far the most automated workface planning tool available. To manually build a crew level pipe (installation or hydro test) work package at a level 4 or 5 schedule of detail typically requires three to eight hours per work pack.

Using ConstructSim V8i, a pipe work pack can be created in less than 10 minutes. An entire schedule priority area can be completed in two hours. Changes and revisions can be accurately tracked and work packs updated accordingly. And you can then track progress at the individual spool, bolt, weld and work step level. ConstructSim V8i offers a substantial and compelling RoI.

Benefit for engineersA Vietnamese cable-stayed bridge

has been modeled in four dimensions, taking every stage of construction into account in the analysis.

Bentley’s RM Bridge software to model every stage of construction has completely changed WSP Finland’s philosophy of analyzing bridges, says head of bridge division, Sami Niemelä. The software allows engineers to work in four dimensions, taking account of the effect of time on structural behaviour during construction of bridges, including a new cable-stayed crossing in Da Nang. “We can now accurately analyze the construction of the bridge in a realistic, beginning-

to-completion sequence, stage by stage,” he says.

Da Nang city is a key commercial port on the South China Sea in central Vietnam and is one of the country’s four main municipalities. For centuries it has been host to visitors from around the world and is a hub in an area known for its natural beauty and world heritage landmarks. The city announced a design contest in 2007 for the new Nguyen Van Troi–Tran Thi Ly Bridge over the River Han.

The chosen design is by WSP Finland, with Esko Leppäluoto as lead designer. It is a concrete cable-stayed bridge with a backward-inclined tower and features striking twin- spiraled back cable arrangements that tie to an open park area on the western side.

Visitors to the riverside park will pass under the bridge and from there gain access to the main tower, where they can take an elevator running at an angled, 12° approach to the top of the inclined tower. There, a glass-enclosed observation platform 145 m over the river will offer 360° views of the port city.

Structural analysisThe six-lane bridge will be 731 m

long and 34.5 m wide, with a main span of 230 m. Although designed primarily for vehicular traffic, it will also accommodate pedestrians with two 3.5 m-wide footpaths. Cantilevered construction is proposed for the main span; all other spans will be cast using conventional scaffolding.

Construction of the $100 million bridge is due to begin this year. Although working to a tight timescale, WSP engineers have been able to run multiple intensive analyses of the structure in every construction stage as well as its built condition.

Features of the Bentley’s RM Bridge software include linear and non-linear structural analysis and construction engineering. WSP Finland chose the software for its accuracy and dependability in stage-by-stage erection of concrete cable-stayed structures.

It helped engineers address a full spectrum of structural, material, performance, and construction issues. The WSP team also used the specialized RM Bridge Addcon application to optimize the stressing sequences of stay cables through linear and non- linear analysis.

Space frame modelThe team of 25 first created a

space frame model for static analysis of the bridge system and from there began a range of analyses to help optimise the structure. Design loading and combinations were applied in accordance with AASHTO LRFD and Vietnamese 22 TCN-272-01 bridge design specifications.

Permanent loads, traffic loads, wind loads, temperature changes and settlements were calculated, applied and analysed. Tests and simulations helped the team plan for the effects of a host of possible events, such as ship

collisions or earthquakes: the bridge is required to withstand an earthquake of magnitude 6. RM Bridge was also used to determine and design for creep and shrinkage over time.

WSP found the application of the software’s 4D modelling capabilities to be highly effective. This incorporates the time dimension in construction engineering, allowing engineers to model the entire cantilevered construction sequence. The stage-by-stage analysis enabled the team to determine long-term effects on materials, including creep and shrinkage and cracking of the concrete.

This capability has categorically changed our philosophy of how we analyze bridges for construction. “In the past, the construction was concentrated on calculating the final stages of the bridge in service and would then work backwards, segment by segment, using rough calculations to estimate creep and shrinkage. You always question to some degree whether the estimate is sufficient. RM Bridge has changed all that.”

Accurate analysisThe team can now carry out

accurate analysis stage by stage in a sequence spanning from the beginning to completion. The software performs intensive calculations that would be impossible to do by hand.

Using RM Bridge, I have a high level of confidence in our design. The model can also be used in construction. The software can perform calculations at each cross-section at any point in construction, stating the moments and calculating the stresses, he adds. Material and structural conditions can be analysed in real-time at any stage.

Designers used the optimization tool in the design of stay cable tensioning. The main span cables are in a single plane along the centre line of the bridge, while the back cables, twisted into a wing-like arrangement, are anchored on both sides of the bridge outside the deck, parallel to the river bank.

The cables penetrate the tower, giving the simplest force transfer from main span cables to back span cables and to the tower. RM Bridge was used to design strength limit states taking account of combined flexure and axial forces, shear and torsion effects. Service limit states for maximum stress in the reinforcement were also calculated and used for crack-width checks.

Comprehensive toolBentley Systems says that its RM

Bridge software enables users to develop and analyze a consistent bridge model in a continuous cycle, which substantially reduces the total engineering time required. The information is seamlessly reused, refined, and reprocessed across the design, engineering, and construction phases, avoiding the need for repeat input of information.

The software system has been designed as a comprehensive tool specifically for bridges that can streamline analytical tasks. The software has been developed by bridge engineers directly engaged on projects including the major long-span cable-stayed crossings such as Stonecutters Bridge and Sutong Bridge.

RM Bridge is a family of integrated software applications developed to allow users to solve engineering or construction problems in a single engineering environment. Specialized applications offer analysis of cable sagging, wind dynamics, large deflections, wind tunnel simulation, e rect ion cont ro l , cant i levered construction, incremental launching and rolling stock. A new tool soon to join the family is RM Bridge cast, for segment-by-segment casting and fitting of precast bridges.

March 24-30, 2014 8INFRASTRUCTURE

Europe’s plan for mega projectsWith high speed rail

and international road network, people in

Europe will soon travel from one country to

another with great ease and rapidity

(Part 5: Continued from March 3 issue)

In the United Kingdom, infrastructure spending gains favour with the public—“once one of the first areas slashed in troubled times, it’s now better protected.” After the success of the 2012 Summer Olympics, the anticipation of London Crossrail, and the convenience of high-speed rail connections to Europe, voters have grown to view major public works expenditures as “a good way to fix the economy, create jobs, and inject capital into society,” while adding to the “nation’s strategic asset base.”

In turn, the government has developed an extensive, top-down National Infrastructure Plan (NIP), which “lays out big plans—averaging more than $44 billion (£30 billion) in outlays annually and has identified 550 projects totaling $471 billion (£310 billion) to 2015 and beyond,” with “a particular focus on transport and power.” But how to fund the ambitious plan remains a concern.

High Speed Rail, housing High Speed Rail 2, a $45 billion (£30

billion) project planned to zip riders from London to Scotland, would take pressure off increasingly congested motorways and constricted airspace around Heathrow, but remains in a “talk but no action” limbo.

The $36 bi l l ion (£24 bi l l ion) Crossrail, scheduled to open in 2018 and connect London’s east and west suburbs by underground commuter trains through the centre city, is the “only big project that has seen any action.”

Housing—“the best way to drive economic growth”—sees “l i t t le activity,” although hospitals and schools will receive funding from members of Parliament eager to meet local constituent needs. Many decisions about power strategies are getting caught up in debates about choices between nuclear, gas, and wind generation, although Parliament pushes a long-term $152 billion (£100 billion) energy plan to protect the economy and reduce carbon emissions.

PPPs S ince the pub l i c pu rse i s

constrained, initiatives increasingly must rely on private capital sources to move ahead. But a parliamentary

review of the PPP programme, the Private Finance Initiative, now called PF2, “has caused a big pause to many projects.”

Complicating matters, government reluctance to provide guarantees on greenfield initiatives “adds uncertainty and makes attracting funders more difficult.” Risk-averse pension funds in particular “are not coming to the table as hoped.”

Many of the PF2 reforms “make sense” to control costs and emphasize lifecycle maintenance where each stage of development, construction, and operation is coordinated and handled by the most appropriate party (whether government or private sector), with “zero tolerance” for overruns in budgets and missed schedules.

UK capability“The success of the Olympics

demonstrated the skills and capability in the UK when the conditions are right and red-tape barriers are removed,” but “the tension between localism (planning prerogatives) and central control (bureaucratic overreach) has not been resolved.”

Some lament the UK’s loss of manufacturing capacity, engineering skill sets, and jobs in the rail sector (rolling stock, signaling, and other technology) as well as other industries supporting infrastructure development. “Greater emphasis needs to be placed on highlighting engineering and infrastructure as a career” to overcome the country’s expertise and experience gap.

In addition, the arm’s-length relationship between the government and infrastructure providers makes things more challenging. “German and French firms have better relationships with their governments, enabling them to make more informed long-term plans and investment decisions” in the procurement process, which can lead to innovation and lower costs.

Expectations are growing among policy makers that motorways may require privatizing to pay for new roads and maintenance, but few politicians expect the public to provide support for tolling schemes on the country’s mostly free highway network. A cheap but efficient way to expand lanes without widening roads is letting drivers use shoulders during rush hours.

Infrastructure prioritiesIn recent moves, the government

has implemented reforms to speed up various energy infrastructure plans, established a Green Investment Bank to help finance $4.5 billion (£3 billion) in large-scale offshore wind and energy-from-waste projects; started construction on four new highways;

committed $14 billion (£9.4 billion) to invest in the country’s rail network through 2019 (“the biggest railway modernization since the Victorian era)”; and accelerated the delivery of superfast broad-band to ten “super-connected” cities.

“W ide r accep tance o f t he importance of London to the UK economy” generates discussion about further expanding Heathrow and/or the city’s four other nearby airports to avoid potential airspace gridlock.

Forecasts anticipate that greater London’s population will increase through 2020 by approximately 1 mill ion people. Accommodating this growth from both offshore and domestic in-migration will necessitate augmenting transport systems and facilities—rail, roads, and mass transit—and providing additional housing.

More bridgesAn immediate need may be

building more bridges to access the city from east of the Tower Bridge. The ongoing transformation of the Olympic Park site—formerly a dilapidated area in East London—into a new city district also takes on added significance.

By design, the $13.4 billion (£9 billion) Olympics site will evolve into an expanse of recreational areas and entertainment venues with a commercial centre and housing for 8,000 families in five planned neighbourhoods—all connected to the London rail and underground system through extensive new transit lines built for the competition.

Olympic facilities in other boroughs, including athletes’ housing, are also serving to help regenerate once-downtrodden districts and absorb some of the city’s expected population increases.

FranceThe cash-strapped government’s

limited capacity to fund major projects outright leads to some cutbacks and postponements and greater reliance on PPP funding. Currently, PPP initiatives priced at $43 billion (¤33 billion) are in the infrastructure pipeline through 2020, and a stimulus programme provides $13 billion (¤10 billion) for financing of up to 80 per cent of infrastructure projects.

Despite the fiscal constraints, France is moving forward with expanding its already world-renowned high-speed rail lines (building out routes from Tours to Bordeaux and Bretagne to Pays de la Loire), constructing a high-speed airport rail link in Paris, approving a new motorway concession between Bordeaux and Bayonne, and awarding contracts on a 60-mile (96 km) canal

project connecting the Rhine-Scheldt waterway in Germany to the Seine.

The new socialist government is paring back investment in nuclear power, the nation’s primary energy source, and looking to gain efficiencies from energy-saving technologies, equipment, and systems as well as promoting green power alternatives.

GermanyEurope’s economic powerhouse,

Germany is one of the few countries in the world that can afford to back off infrastructure initiatives. Germany is benefiting from its already built-out infrastructure systems, which feature some of the world’s best rail (both freight and high-speed passenger) and road networks as well as efficient power grids and modern water facilities.

As a result, the country does not require significant infrastructure expansions, except for projects to hasten the transition away from nuclear energy to renewable sources of power.

Most outlays are directed at upgrading existing roads—some Autobahns are approaching the end of 50-year lifecycles and require ongoing capital for preservation and enhancement. Others are being directed at closing the remaining gaps in the intranational Autobahn infrastructure.

Railway, airportsRailway projects are also focused

on maintenance, although the $8.4 billion (¤6.5 billion) Stuttgart 21 rail project will build out 35 miles (56 km) of high-speed rail track, the latest leg of an inter-country European Union route connecting Paris to Bratislava, Slovakia.

Major airport expansions are underway in Munich and Frankfurt, and the new Berlin-Brandenburg Airport will open in the fall after cost overruns and delays. These projects will cement Germany’s place as the hub of central Europe’s transport network and primary connection point for international travel as well as freight delivery.

SpainSpain’s big-budget infrastructure

building binge is hitting the wall—EU bailouts are keeping the government afloat but require significant spending reductions, including the mothballing of many road and rail projects. Some people have called for a “more proactive role from the government in developing infrastructure,” lamenting that “last year was an empty and lost year for the sector.”

On the bright side, recent work by the country has upgraded transport systems dramatically. Spain now features 8,750 miles of motorways and dual carriageways—more than any other European country. Its rail network has expanded to more than 9,000 miles.

The government remains determined to complete build-out of the longest

Patrick PhillipsCEO, Urban Land Institute,Washington

Howard Roth Global Real Estate Leader, Ernst & Young

high-speed passenger-rail system in Europe (second only to China’s) with more than 6,000 miles of lines connecting all major cities, by 2020.

The latest high-speed rail milestone, a new line now links Barcelona and Madrid to Paris. But severe budget cutbacks are hitting local projects (water, sewer, highway repairs) and rural areas where road conditions remain poor, and the country’s electricity transmission sys-tem requires new investment. After a spate of bankruptcies in the road sector attributable to changes in expropriation laws and lower-than-expected vehicle traffic, the government plans to toll roads and increase energy tariffs to help raise money.

ItalyIn I ta ly, auster i ty budget ing

underfunds and delays government development plans, which focus on upgrading deficient infrastructure—roads, rails, energy, and water—in the historically neglected southern region.

Credit concerns over the country’s high debt-to-GDP ratio raise borrowing costs for private investors and further compromise attempts to finance initiatives. Most prominent among sidelined projects is the long-sought-after suspension bridge across the Messina Straits to connect Sicily and the mainland—at least the government has allocated monies for additional “exploratory work” on the massive span.

Major rai l routes and tol led motorways receive generally high marks for service and management, but provincial tracks and back roads tend to suffer from years of underinvestment. At the beginning of last year, the government hiked road tolls by nearly 3 per cent to help private concessionaires fund maintenance.

Also moving forward is the construction of a high-speed rail line from Turin, Italy, to Lyon, France. The $11 billion first phase will begin in 2014 and involve boring a tunnel underneath the Alps at the border. When completed in 2021, the new line should help reduce travel time between Paris and Milan from seven to four hours.

Other government priorities include building enhanced cross-border passenger- and freight-rail links to the Netherlands, Sweden, Germany, and England.

(Continued in next issue)(Courtesy: Ernst & Young)

London Olympics Stadium 2014

Paris-Barcelona high speed train

March 24-30, 2014 9

JCB launches compact 525-60 Hi-Viz Telehandler

JCB, the world’s number one telescopic handler producer, is unveiling a new compact model at Conepxo 2014 to add to i ts growing Hi-Viz Loadall range for construction.

The launch of the 525-60 brings full-size telehandler performance and features to the compact sector.

With a maximum lift height of 6m and a load capacity of 2.5 tons, the 525-60 is just 1.8m wide and 1.91m tall, allowing access to multi-storey car parks and permitting operation in confined site conditions.

During ConExpo, the Linden Comansa team and its subsidiary in the United States experienced the reality of an optimistic market returning back.

Linden Comansa America’s booth was visited by top construction companies in the United States and Canada, as well as many rental companies of tower cranes and lifting equipment. The interest of the visitors focused on the large cranes from the LC2100 Series, such as the 21LC750 and the 21LC660, whose turntable was exposed in Las Vegas.

Both models feature versions with up to 48 tonne of maximum load and are designed to deliver high performances at any type of public work.

“We experienced over twice the activity of the last show,” says Bill Carbeau, Vice President, Business Development, Linden Comansa America. “The visitors had high interest and were ready to talk about purchases or equipment purchase plans. Over 60 per cent were qualified candidates with over half of those requesting information and quotations.”

“Our theme was to generate awareness and educate the potential owner of the benefits of the Linden Comansa product range. About 25 per cent of inquiries were related

The 525-60 Hi-Viz replaces the 524-50, 527-55 and the 520-50 rear-engine models, with a modern side-engine mount design. This permits a low boom pivot point for maximum stability and increased visibility to the rear and across the boom.

to the luffing-jib crane family, while about 75 per cent related to various sizes of the highly acclaimed flat top tower cranes. Although no orders were written at the show, we received requests for quotes totaling over 30 tower cranes. We are confident that it will not comply with the phrase. ‘What happens in Las Vegas stays in Las Vegas’ and that the show will be a precursor to a great year for sales.”

According to Martín Echevarría, Linden Comansa’s Sales Director, the ConExpo fair was much better than expected. “We knew that the North American market was improving, but we were pleasantly surprised with the atmosphere so optimistic and the number of new projects that are coming out. We have been very busy during the entire fair, preparing offers and making new contacts which we hope will be fruitful in the upcoming weeks,” he said.

The Las Vegas Convention Center has also served to bring together many dealers of Linden Comansa, who came mainly from the Americas, Europe and the Middle East, Canada, Colombia, Chile, Brazil, Germany, Sweden, United Arab Emirates, etc. Along with them were also present at ConExpo many final customers and rental companies that use Linden Comansa cranes in their projects.

EQUIPMENT

Sandvik appoints Parag Satpute to head India operations

Parag Satpute has been appointed as the new Country Manager, India, at Sandvik Asia and will assume

office with immediate effect at the company’s India headquarters in Pune.

Sandvik Group is regarded as one of the market leaders in the areas it operates; Sandvik Mining, Sandvik Machining Solutions, Sandvik Materials Technology, Sandvik Construction and Sandvik Venture.

Commenting on the appointment, Olof Faxander, Sandvik Group’s President & CEO said, “India is an important country and part of Sandvik’s emerging market strategy. Satpute will continue to develop and further accelerate our growth plans in the Indian market. He has the appropriate acumen to take our

Indian organization forward.” Satpute has held several leadership

positions within Sandvik Materials Technology, including Head of product area Wire & Heating Technology, Regional Sales & Marketing Manager for product area Strip within EMEA (Europe, Middle East and Africa), as well as Global Sales & Marketing Manager for DieCutting.

His past positions also include General Manager for Sandvik Saxon. Prior to this he held a number of posi t ions wi th in Sandvik Asia. He holds an MBA from Warwick Business School, UK and a Bachelor in Mechanical Engineering from the Pune University.

Busy ConExpo for Linden Comansa

CASE showcases new products atConexpo-CON/AGG 2014 in Las Vegas

Grove’s RT770E launched at ConExpo

CASE Construction Equipment i n t r o d u c e d t h e n e w C X 3 5 0 D Hydraulic Excavator, CASE 821F and 921F wheel loaders and five models of the M Series dozers; all equipment meeting the new Tier 4 final regulations for emissions control and selective catalytic reduction (SCR) technology.

The CX350D offers significant advances in power, fuel savings, operation and control it features an innovative combination of cooled exhaust gas recirculation (CEGR), selective catalytic reduction (SCR) and diesel oxidation catalyst (DOC) technologies, which helps maximize uptime and performance.

The CASE CX350D is rated at 268 horsepower and provides maximum torque of 1048 NM; weighing in at 37376 kg, the machine features an arm digging force of 16774 kg and a bucket digging force of.23424 kg. The ‘Auto Power Up’ function increases each of those to 18234 kg and 25474 kg, respectively.

CASE Construction Equipment has equipped each model of 821 F and 921 F wheel loader with a selective catalytic reduction (SCR)-only solution that treats emissions separately with Diesel Exhaust Fluid (DEF) and does not require the engine to re-circulate exhaust gas.

Th is opt imizes combust ion and machine performance, lowers engine temperatures, and eliminates m a i n t e n a n c e a n d d o w n t i m e associated with filter replacement and regeneration. It also helps lower fuel consumption.

“CASE was the first to implement SCR into our Tier 4 interim machines

Among the mobile cranes that were on display at ConExpo this year was the new Grove RT770E rough-terrain crane. The 70-ton (65 t) capacity crane offers the longest boom in its class, at 138 ft. (42 m), and is specially designed to give customers all the benefits of a traditional Grove rough-terrain crane, but with extra-long reach.

Paul Cutchal l , rough-terra in product manager of Manitowoc Cranes in North America, said the new technology and cutting edge design of the RT770E make it a logical choice to be shown at ConExpo.

“We’re launching the RT770E into probably the most popular capacity class, so we knew we had to make it stand out from the crowd, and with its boom design I believe we’ve done that,” said Cutchall.

“We were able to lengthen the boom without adding more size and weight to the chassis. This enables the crane to be manoeuvrable, while delivering greater lift capacity and longer reach than other cranes in its class. All of which means it is

because that solution makes the most sense for wheel loaders based on the inconsistent engine loads placed on the machine throughout its regular work cycle,” says Philippe Bisson, Brand Marketing Manager, CASE Construction Equipment.

Each new Tier 4 final wheel loader delivers best-in-class horsepower with a 6.7-liter Tier 4 final-certified engine that also provides quick throttle response and impressive torque. The 821F and 921F wheel loaders produce 212 and 241 net peak horsepower (158 and 180 kW), respectively.

To provide operator comfort and help boost productivity, the 821F and 921F wheel loaders feature a cab with full climate control, as well as an award-winning joystick steering option, and equipped with two-level hydraulic control system.

receiving plenty of interest here at ConExpo,” he said.

The Grove RT770E’ s five-section, full-power boom features single-cylinder technology that eliminates the need for a hydraulic hose reel, which lightens the boom and in turn, the entire crane. The design also eliminates the need to install boom inserts, which requires an assist crane, saving both time and money for customers.

The M Series dozers displayed at Conexpo included five models ranging from 92 to 214 net horsepower. It uses highly-efficient hydrostatic transmissions to deliver a class-leading drawbar pull. The new M series dozer is powered by a fuel efficient FPT Industrial engine which allows fuel savings up to 14 per cent. This is the first time that selective catalytic reduction (SCR) technology is built into a CASE dozer. The new CASE M Series dozer was fully launched in the North American markets by March 2014. In other regions where the company operates, models will be introduced with different timing and in line with different market’s emission requirements. CASE Construction Equipment is now all set to introduce the new product range with Tier 4 norms in India once it is implemented.

March 24-30, 2014 10REAL ESTATE

Pure investors have a better chance of making a profit in their dealings

simply because their options are wider

How to succeed in property investment

Asian Granito India opens AGL tiles exclusive showroom in Nagpur

Getting into real estate investment without proper understanding of what you aim to achieve is not advisable. There are many risks involved in real estate investment. However, with the right data and advice, you can definitely succeed in property investment. Here is a general blueprint.

To begin with, you should know what the odds are. The fact is that the chances for inexperienced property investors to either succeed or lose a lot of money are more or less evenly balanced. The likelihood of suffering a loss is greater if the investor does not have a good idea of the state of the local property market.

Before investing in property, make sure that you have enough insurance. Many investors who have succeeded in the property arena safeguard their investments by floating a nominal limited liability company for their activities. This is certainly an option, but not really a necessity unless you are playing for very high stakes and investing in multiple properties.

Advice to end-user investorsProperty investors actually fall

into two broad categories: end-users and pure investors. That’s right -- even end-users can technically be described as investors in some cases. These individuals seek to make a percentage of profit on properties that they are themselves occupying. This may involve partial rental or sale of a home or office, retail or factory space.

Th is is not a very common practice, and is usually seen only in cases where the property is of larger proportions and the part being rented out or sold would otherwise remain idle and non-productive.

More commonly, an end-user seeks to sell the entire property. This is usually done for reasons other than returns on investment -- the seller may be seeking larger or more luxurious premises, may be

Asian Granito India Ltd (AGL), among the top five ceramic ti le manufacturers in India, opened an AGL tiles exclusive showroom in Nagpur, Maharashtra. The showroom will feature out-of- the-box, never-seen-before collections of a wide range of wall and f loor t i les of superior quality and unparalleled variety under a single roof. This will be the company’s fourth exclusive showroom in the state.

With an aim of giving shape to the company’s dream project of having a strong retail presence pan-India, Asian Grani to India Ltd has successfully opened 45 exclusive showrooms in cities like Delhi, Jaipur, Bengaluru, Chennai,

ventilation and, ideally, the use of a swimming pool, clubhouse and other trendy facilities. They should also be backed by adequate parking facilities. Most buyers do not make compromises on this last factor, even if they give consideration to the others

Choose to invest in properties by reputable developers. The very name of a famous builder makes a definite difference on the bottom-line of the sales deed.

Certain dynamicsA qu ick no te on ready fo r

possession propert ies. Certain dynamics of the property market remain constant, so a profit is still possible. However, a ‘readymade’ property bought for the purpose of investment will have to be given suff icient t ime to appreciate in value.

A lso , cer ta in modi f ica t ions specific to a potential customer’s needs may have to be made. The cost that this involves would have to be adjusted in the final amount.

Finally, if you are new at property investment and are ut i l iz ing a housing/investment loan in order to invest in property, ensure that the ratio of self-finance-to-loan amount is conducive to a future profit. Also, double-check all legal documents.

Property investment is not a game of blind man’s bluff. Fortunes can be lost for many reasons, including spurious or incomplete documentation, faulty judgment and dealing with fly-by-night developers. There are a number of bases that need to be covered to reduce the risk factor.

in the process of relocation, or may not be satisfied with the property for other reasons.

There may also be a need to downgrade on certain expenses such as maintenance costs. If the sale of such a property is need-based, the

Ahmedabad, Udaipur, Trichy, Nashik and Jalandhar till now.

With the opening of this showroom in Nagpur, the number of AGL tiles world exclusives has gone up to 46 outlets. The company is planning to open 100 AGL tiles world exclusive stores in the next two years. The company has launched its AGL tiles world exclusive’ showroom in partnership with Asian Homes Style, Nagpur.

Explaining the strategic plans of the company, Kamlesh Patel, Chairman & Managing Director of Asian Granito India Ltd said, “Maharashtra is a very important market for us with a large portion of our revenues coming from the southern part of India.

The properties in question can be residential (flats, bungalows, row houses, duplexes, etc), commercial properties (offices, factory sheds, etc), retail (eg mall space) and non-developed or partially developed land.

Pure investors have a better

GuidelinesInvestors of this kind should keep

the following guidelines in mind:Location is everything. Even if

rates are steeper in a preferred area, go for it. It will pay rich dividends in the final analysis

profitability usually reduces since the seller needs to cash in within a limited period.

The kind of profit an end-user can make on the sale of a property depends on the age and state of the property, its location and its inherent value on the market. A residence purchased 5 or 10 years ago will have appreciated in value for the simple reason that property rates are constantly increasing. The value of the property will be even higher if the location is one in high demand.

However, the price that a property which was in use until the time it is put on the market will fetch also depends on whether or not it is well maintained, whether or not the owner upgraded certain features to make it more attractive to buyers, etc.

Advice to pure investorsExclusive or pure investors buy

property for the exclusive purpose of earning a profit on them; they do not utilize the estate personally.

chance of making a profit in their deal ings s imply because thei r options are wider. There is also no immediacy or urgency involved, since the basic objective is profit.

Since they do not intend to occupy the premises themselves, they can rent out the property until the time when they intend to sell it off at appreciated rates.

It is always more profitable to invest in properties under construction or still in the planning stage. By the date of actual completion, rates will tend to be higher

I f one chooses to invest in residential real estate, the f irst preference should be towards flats that are located on the first floor. They should offer a good view and

Kishor Pate CMD, Amit Enterprises Housing Ltd

P u n e - b a s e d V a s t u s h o d h Projects announced the launch of its AnandGram affordable housing project at Ketkawale on Pune-Satara Highway. AnandGram’ housing projects are aimed at catering to the needs of lower & middle income group, where homes with all amenities are provided in the price range of Rs 500,000 to Rs 20 lakh.

“The first upgraded ‘AnandGram’ with more than 500 homes will come up at Ketkawale, on an eight acre plot. It will set an all new benchmark in the affordable housing segment with the additions of some of the most desired features and amenities,” said Sachin Kulkarni, Managing Director, Vastushodh Projects.

AnandGram projects are built in the suburbs on highways connected to Pune that are just 25 to 35 km away from the city of Pune.

Vas tushodh pro jec ts come under two brands—AnandGram and UrbanGram—for lower and middle income group customers. AnandGram offers homes in the range of Rs 500,000 to Rs 1,500,000 and UrbanGram flats are available in the range of Rs 15 lakh to Rs 30 lakh.

So far Vastushodh has completed construction of 1,700 housing units at multiple locations in Pune and is currently in the process of developing about 7.5 million sq ft with over 13,000 units of affordable housing.

Vastushodh launches affordable

Pune housing project

“We have already opened 45 AGL tiles world exclusive stores and in coming years will strengthen our presence in Maharashtra. At Asian Granito India Ltd, we believe in providing more to our customers, not only in terms of quantity, but also quality, which is precisely what AGL tiles world exclusives is set to achieve.

“We felt the need of an exclusive t i les showroom for people with discerning taste, who are always on the lookout for something different and exclusive. A place where one can choose from a wide range of tiles available in varied sizes and types for home and office spaces.”

In the past decade, the ti les industry has evolved into a more organized market with new users emerging in various industries. Competition and affordability have transformed the industry and tiles have become a fashion product and its application areas have undergone a tremendous change.

“Earlier tiles were mainly found in bathrooms and kitchens, but now due to the wide range of designs and beaut i fu l character is t ics , interior decorators, architects and individuals as well are willing to use tiles for flooring, drawing rooms, bedrooms, exteriors and balcony as decorative products. Printing technology too has transformed dramatically as digital printing has opened up new avenues for the tiles industry,” said Patel.

March 24-30, 2014 11

(Contd. from pg. 5)

Its work is on a par with the best in the world and conforms to international standards. It is a reiteration of the Sobha philosophy of using only international quality products and construction technology in all its projects and products.

Some of the key differentiators of Sobha Interiors are:

Largest woodworking facility in India spread over 325,000 sq ft

Best industrial practices followed to achieve highest quality standards and attain maximum efficiency

State-of-the-art machines with latest available technology

Workforce proficient in modern wood working technology

In-house detail design studioFull-time German Master Joiner

at the factory to emphasize training to attain highest level of efficiency in production and quality control

Multi-level inspection and stringent quality assurance protocol at all stages of production

In-house computerized kiln drying and wood seasoning plant

Fu l l y au tomated robo t i zed polishing line to attain highest level of finishes

Sobha Glazing & Metal Works Division: Sobha Glazing & Metal Works (SGM) has technical collaboration with ‘Schuco International KG’ and is authorized to market their aluminium doors, window and glazing systems in the country.

Till date, this 25,000 sq ft state-of-the-art manufacturing unit of the Sobha Group has successfully executed a plethora of projects for various prestigious organizations. Its principal focus is to consistently evolve products of high quality and lasting value.

Sobha Concre te P roduc ts : The Concrete Products Division (CPD) of Sobha Developers Ltd is a continuation of the Sobha Group’s journey of excellence. Set up in Jigani Industrial Area, Bengaluru, with the same philosophy, vision and business ethos, CPD manufactures concrete blocks, pavers, kerbs, water drainage channels, paving slabs and related landscape products of international quality in large scale volumes. Its salient features include:

Hi-tech, full-fledged manufacturing facility spread over 8 acres

Fully automated plant with an asset base of over Rs 35 crore

Quality of products matching international standards

Annual production capacity of 12 million units and above

Strengths from 5N/ sq.mm to 15N/ sq mm

S o b h a R e s t o p l u s - S p r i n g Mattress: ‘Restoplus’ brand of spring mattresses by Sobha Developers Ltd was launched in 2007. Starting off with 250 franchises nationwide (except East India), Restoplus has grown to a Rs 30-crore annual business.

The volume of sales is split 30:70 between institutions (hotels and big projects) and franchisee outlets. Infosys alone has bought 16,000 mattresses for its various facilities so far. High quality steel is used to make the springs, coils and the shell.

Once ready, a couple of layers

of insulating mesh, some imported from Spain, and protective felt are attached. Then comes a layer of foam, differing in thickness and density to give ‘soft’ or ‘hard’ sleeping surfaces. This is clothed in fabric. Once all this is stapled together, the final (outer) quilted fabric goes on.

What impact has the Indian Green Building Council made in promulgating protection of environment and safety standards in the construction industry?

The Indian Green Building Council has made substantial impact on the industry. Responsible industry players have inculcated safety practices and maintain safety standards in construction.

Sobha is a p rocess-dr i ven organization and is amongst the first companies in the industry to obtain the ISO 9001 certification. The company has a lso received the OHSAS 18001:2007 and ISO 14001:2004 certifications for environment, health and safety management systems.

The concept of a construction industry council for the seven Saarc countries was mooted in Sri Lanka in 1999 to fight for their rightful place in the global construction industry.

Our industry body Credai is the best one to explain this.

The real estate sector is one of the fastest growing markets. What influences have contributed to the growth?

In the past decade, the Indian real estate sector has grown exponentially. The sector has expanded beyond the metropolitan cities into tier-2 and tier-3 cities as well. It is also the second largest creator of employment opportunities in India.

The growth of this sector has also fostered the growth of the 250-plus ancillary industries such as steel, cement, building blocks, paints to name a few. Today, the sector contributes to about 5 per cent of the national GDP.

Since the economic liberalization in 1991, the economy as a whole and the real estate sector specifically have witnessed tremendous growth. In 2005, FDI in the real estate sector was permitted and it opened up a window of opportunities.

In the same period, the Indian economy was growing at about 8 per cent and continued to do so for the next few years to come. The IT and other services sectors such as banking and insurance gained prominence.

With this, there was an increase in job opportunities and more and more salaried professionals began investing in real estate properties. The high starting salaries in private companies led to the deepening of the market and this led to the investors looking at the real estate sector favourably.

How does infrastructure form a prerequisite for sustaining long term growth of the real estate sector?

In f rast ructure cer ta in ly is a prerequisite for sustainable growth. While the real sector has come a long

way and is significantly contributing towards the economic growth of the country, infrastructure plays a key role since growth of sectors like urban development, railways, roadways, airports, power transportation, etc has persuaded effect in the real estate industry, and expansion in these sectors is concurrent to the development in infrastructure. Also, increasing infrastructure requirements from sectors such as hospitality, education, tourism and healthcare are providing numerous opportunities in the real estate sector.

In the next 10 years how much revenue the Indian sector is expected to earn in US dollars?

Numerous reports and studies estimate the Indian real estate sector to post annual revenues of $180 billion by 2020 vis-à-vis $66.8 billion in FY ’11, registering a CAGR of 11.6 per cent. FDI in the sector is expected to increase to $25 billion in 10 years from the current $4 billion.

How much investment (in US dol lars) does India need to modernize urban infrastructure over the next 20 years?

According to a McKinsey report, an additional capital investment of $1.2 trillion will be necessary to meet the demand projected in Indian cities and represent an increase in urban infrastructure over the next 20 years. This amounts to $134 per capita per year, which is an eight-fold increase from the level of spending today in per capita terms.

Why do economic and financial conditions have a major influence on the commercial real estate market in India?

No industry can operate in isolation from the economic climate of a country. Market conditions such as inflation, stock market volatility

and rupee fluctuation have a direct impact on the prices of real estate properties.

Inflationary costs tend to directly increase the cost of input materials used in construction. We have also seen how the recent monetary policies, that are used to curb the inflation, have led to an increase in the interest rates. In this light, the real estate sector is not insulated from the economic and financial conditions.

The economic conditions have also led to the boom in the real estate sector. Post the 1991 liberalization, our economy has witnessed tremendous growth and numerous opportunities remain to be explored.

The economic re forms and financial conditions have fostered the growth in the real estate sector. An increase in the number of job opportunities and a subsequent increase in the spending power of the working population have increased the demand for real estate properties. FDI in the sector has opened up plethora of possibilities. We now have access to latest technologies and construction methodologies.

What are Sobha’s quality standards that go into making a world-class structure?

At Sobha, we believe in developing aesthetically designed, functionally efficient residential and commercial complexes of world-class quality, offering the highest value for money. Our buildings reflect engineering excellence and we work to provide complete customer satisfaction. While rendering our construction services, we also focus on environment, health and safety (EHS) matters to ensure safety of all our employees.

Sobha is one of the first companies in this sector to be awarded the ISO 9001:2008 certification for meeting the requirements of Quality Standards in

1998. The company was also awarded the ISO 9001:2000 certification for adhering to the requirements of the revised standard.

Sobha has also been awarded the ISO 14001 (2004 series) and OHSAS 18001 (2007 series) certificates for adhering to environment, health and safety standards.

With the in-house Research & Development (R&D) Department, Sobha benchmarks itself against world standards in project conception, execution and delivery. The focus is therefore on innovat ions in construction and methods to adapt and integrate these innovations into work processes.

Sobha is highly regarded for its transparency, fair play, integrity and honesty. Every Sobhaite is pledged to working towards redefining quality for all its stakeholders. As a team, we believe that Sobha epitomizes ‘Passion at Work’.

Which are some of Sobha’s current projects under construction in major locations?

This year, we launched Sobha Palladian, a project based on neo-classical architecture located on Old Airport Road, Bengaluru and Sobha Bela Encosta in Kozhikode, Kerala. International City, our Gurgaon project is also underway.

As an outstanding developer, what benchmarks has Sobha created in the industry?

A Sobha home exemplifies comfort living. As an organization, Sobha, in its every project undertaken till date, has beautifully blended quality with excellence, technology with aesthetics and the sheer passion for bringing out what an ideal home reflects has culminated in the brand Sobha stands for – PERFECTION!

INTERNATIONAL

Skanska signs $108 m deal for Florida children’s hospital

Carillion lands £61 m Dubai contract

Skanska USA has signed a $108 million (£65 million) contract for renovation and construction work at Golisano Children’s Hospital in Florida, USA. It is leading a joint venture with Gates Construction in building a new eight-storey patient block and renovating an existing facility. .

The new patient tower will include a paediatric emergency department located on the second level. There will be a total of 128 beds in the new patient pavilion, with the capability to expand to 160. Other services located in the new children’s pavilion include paediatric surgical services, intensive care, oncology care, outpatient clinics and a pharmacy. The new pavilion will be designed to withstand a Category 5 hurricane.

“We are eager to get major construction underway,” said Dave

Duba i Wor ld Trade Cen t re awarded the contract, which involves a 146,000m2 development in the heart of the city’s central business district. The contract, which is worth approximately £61 million and includes an 8-storey office building and a 588-room business and tourism hotel, will begin next month and is scheduled for completion in

Kistel, Vice President of facilities for client Lee Memorial Health System. “The demand for children’s services in our community continues to grow and our current facilities are often at capacity. Travelling to get care in hospitals in Miami or Tampa compounds the stress on these

the third quarter of 2015. Phase-1 of the DTCD development wi l l include internat ional ‘grade A’ offices and has achieved Leed Gold precertification from the US Green Building Council. The development is also being designed in line with the Dubai government’s Smart City strategic agenda for incorporation of technology.

IN PERSON

young patients and their families. The new hospital will expand our capabilities and keep children’s care close to home.” Construction of the new patient tower will begin in April 2014. Both the renovation and construction are slated for completion in April 2017.

March 24-30, 2014 12

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Regd. No. MH/MR/South-355/2012-14

EVENTS

Printed & published by Bina Verma on behalf of Asian Industry & Information Services Pvt. Ltd., and printed at Amruta Print Arts, 205, Tantia Industrial Estate, J. R. Boricha Marg, Opp. Kastruba Hospital, Mahalaxmi, Mumbai 400 011 and published at 1st Floor, Feltham House, 10, J. N. Heredia Marg, Ballard Estate, Mumbai 400 001. Tel.: 022-2266 0623. Editor: Bina Verma Annual Subscription : Rs. 5,000/-

Ficci seminar promotes steel slag as alternative building material

Ficci and the Ministry of Steel will be jointly organizing a technical seminar for promoting the awareness and usage of steel slag in end-user segments like construction and railways on April 25, 2014, at Federation House, New Delhi.

Various government agencies like the Bureau of Indian Standards and the Indian Roads Congress are also a part of the event.

Through this conglomeration of government, policymakers, industrial leaders, steel manufacturers and end-user segments from India, the seminar endeavours to promote the slag as an alternative construction material, highlighting its superior environment friendly qualities and better product features.

The seminar would serve as a platform for steel manufacturers to promote slag among users, while potential customers would be able to discuss and resolve their myths around slag usage.

Some of the key objectives of this seminar include: Promoting steel slag as an alternative construction material with focus on its product qualities and environment friendly usage; disseminating knowledge on steel slag and its chemical properties; and to act as platform for networking and business alliances among end-users and steel manufacturers

Focus on steel slagSteel slag is a byproduct of the

steel making process. Depending on the stage or type of steel making process, the slag generated is called high sulphur slag, LD slag, LF slag or Electric Arc Furnace (EAF) slag.

The country's eastern region will account for close to one-third of the new cement production capacity over the next two fiscals. A total of 46.7 million tons (mt) of new capacity is likely to come up over this period. The eastern region will contribute 32 per cent, followed by the northern region at 23 per cent.

In the past two years, there was no capacity addition in the eastern part, which recorded capacity utilization in the range of 75-80 per cent. The analysis shows that over the next two fiscals, large cement companies will add 6.7 mt production capacity, while mid- and small-size ones will chip in

with close to 8.2 mt. According to a report by ICICI Securities, the new capacity will increase overcapacity in the eastern region by 30 per cent in the next three years. Even if cement demand grows 7-8 per cent, utilization levels in the region may fall to 79 per cent in FY16 from 82 per cent in FY14 because of overcapacity.

Cement supply in nor thern, western and central regions, however, has been in sync with demand. These regions, which have utilization levels of 80-85 per cent, will see prices as well as utilization rise as there is no oversupply.

East to account for one-third of total 46.7 mt

new cement capacity

EVENTSMay 22-24, 2014

Metal Buildings & Steel Structures ExpoBombay Convention Centre, MumbaiMBSS Expo is an initiative designed to promote the use of steel and allied metals in construction to showcase the latest products and innovations in the industry. The event also proves to be an ideal platform for exploring new business opportunities and for dissemination of knowledge in the quest to deliver world class technology/services.

Contact: INIS Enterprises Pvt Ltd, 116 Atlanta Estate, VItth Bhatti, Goregaon East, Mumbai

April 19, 201418th One-day Workshop on Jirnoddhara of RCC BuildingsThe Institution of Engineers (India), Mahalaxmi, MumbaiThe workshop contains structural audit, upgrading (housekeeping, regular maintenance, repairs, rehabilitation, fixing leakage, waterproofing of RCC buildings and a new concept to construct durable RCC structures without leakage

Contact: Jayakumar Jivraj Shah Tel: 28483541 Mobile: 9819242649

May15-17, 2014Ecobuild India To be decided soonIt is the largest exhibition of the sector that concentrates on the future of sustainable building design, construction and built environment. It plays an important role in the development and advancement of the sector and helps the exhibitors to showcase their products and services associated with the sector.

Contact: UBM India Pvt Ltd. Times Square, B- Wing, Unit 1 & 2,5th Flr, Marol, Andheri Kurla Road, Andheri East. Mumbai

May 16-18, 2014Roof India 2014 Chennai Trade Centre, Chennai The exhibitors will showcase roofing systems, architectural cladding, facade engineering, roof waterproofing, pre-engineered buildings, space frames and more.

Contact: International Trade & Exhibitions India Pvt Ltd 1106-1107, Kailash Building, Kasturba Gandhi Marg, New Delhi

July 11-13, 2014India International Build Expo ChennaiChennai Trade Centre, Chennai,This event helps the professionals and experts of the industry to come together under the same roof and experience an ideal platform to network and interact with each other. Contact: Prompt Trade fairs (India) Pvt Ltd, 621, 3rd Floor, SIRE Mansion Thousand Lights, Chennai

September 11-13, 2014The Big 5 Construct IndiaBombay Convention Centre, MumbaiIt will provide the ideal platform for influential architects, contractors, consultants and engineers to share ideas about innovative construction tools and services. Contact: DMG: Events. PO Box No 33817 Dubai, UAE

December 4-6, 2014Ceramics AsiaGujarat University Exhibition Hall, Ahmedabad This event will be organized to enhance that potential by bringing industry professionals from different corners of the world under one roof. Ceramics Asia is going to be organized for three days at the Gujarat University Exhibition Center in Ahmedabad Contact: Unifair Exhibition Service Co. Ltd, Room 802-804, Daxin Building, 538 Dezheng North Road Guangzhou, China

December 15-18, 2014bC India ShowIndia Expo Centre and Mart, Greater Noida The International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles-provides the international construction industry with a professional platform for the construction industry. Contact: B C Expo India Pvt Ltd, Lalani Aura, 5th Floor, 34th Road, Khar (West), Mumbai

Steel slag and in particular LD and EAF slag are being used extensively for various applications in many countries across the world, including USA, Australia, China, and others. Some of the established applications of steel slag outside India include its usage as an aggregate for road construction, as rail ballast, for land and mine fill, for cement and for agriculture.

In fact, steel slag has been found to be environmentally superior to the traditional material in many ways. Considering the inherent advantages of steel slag over natural material, both from usage and environment perspective, Ficci has taken the initiative of promoting the awareness

and usage of steel slag in the country.

Also, before any application can be accepted and established, it requires statutory approvals from various government agencies like the Indian Roads Congress for road construction, the Bureau of Indian Standards & Research Designs & Standards Organization (RDSO) for rail ballast.

Therefore, the event serves dual objectives of reaching out to the government agencies for necessary amendments in the regulations and of making the end-user segments aware about the steel slag usage and benefits.

Editor : Bina VermaEditorial Team: Dilip Phansalkar, Paresh Parmar, Remona Divekar Designer: Rajen Mistry

Business Team: Milind Joglekar (9833357005), Shantanu Baraskar (9820904795), Seema Kohli (9820904931)Email: contact@konstructionreview.com, editor@mmronline.com

No part of the contents of Construction Industry Review, in abridged or unabridged form, can be reproduced without the written permission of the Editor. CIR does not accept any

responsibility for statements and opinions expressed by the authors.