12
Volume 3 l Issue No 9 l March 03-09, 2014 l Price: Rs 100 An MMR, Braj Binani Group Publication Maha govt to set up housing regulatory authority by June $80 b for infra projects on Centre’s agenda The Maharashtra government proposes to put in place the housing regulatory authority by June this year as per the provisions of the Maharashtra Housing (Regulation and Development) Act 2012. The government will soon start formulation of necessary rules which will be ready by the same time. The government’s move comes close on the heels of Presidential assent received last month for the Maharashtra Housing (Regulation and Development) Act 2012. Maharashtra will be the first state to establish the regulatory authority for the housing sector. Minister of State for Housing Sachin Ahir, said, “The government is quite serious to set up the housing regulatory authority by June. The rules will be framed during the code of conduct for the ensuing elections. The Act aims to regulate and promote the construction, sale, management and transfer of flats on ownership basis. The Act will empower the flat owners and it will be a game changer in regulating the housing sector.” The government official indicated that the housing regulatory authority will be headed by a retired bureaucrat. that has yet to recover from global financial crisis. Opposition leader Narendra Modi, touted as the next leader of the world’s biggest democracy, has the backing of big business and a strong growth record running his home state of Gujarat. The elections are slated in May, but economists see no quick fix after The Cabinet’s task force set up by Prime Minister Manmohan Singh has fast-tracked approvals for projects worth 5 per cent of gross domestic product; severe bottlenecks will limit the scope for his successor to achieve a turnaround. The infrastructure investments in the projects are taking time to revive the economy as it will pay growth dividends for the next government in coming days. Figures out are expected to show that the economy grew by 4.9 per cent in the past three months of 2013 from a year earlier, near a decade low, as high inflation and increased borrowing costs depress confidence The Brihan Mumbai Municipal Corporation’s former commissioner Subodh Kumar is a frontrunner for the post. According to the Act, registering the housing project and displaying it on the website of the Housing Regulatory Authority becomes mandatory for the promoter. The promoter will have to pay fees not exceeding Rs 50,000 along with the application for registration. ‘’Hopefully, the state-level housing regulator will implement systems which will mitigate risks and increase accountability. It can potentially boost transparency by standardizing practices, streamlining procedure systems and attending to consumer grievances in a decisive and timely manner. It will therefore help in bringing about a greater level of trust between buyers, sellers, developers and financial institutions that fund the real estate sector. It can also help curb speculative activity in the sector and contribute towards keeping prices in check,’’ noted Anuj Puri, Chairman & Country Head, JLL. According to Puri, if the correct processes are followed as outlined, developers will benefit as much as the polls that can overcome malaise and bring a return to the double-digit rates of investment growth that drove India’s boom of the past decade. “Despite the recent spate of clearances an early revival seems unlikely, given the long gestation period of projects,” says Aditi Nayar, an economist with ratings agency Icra. Officials concede that rapid approvals won’t revive investment overnight, but they argue that India’s $1.8 trillion economy could still achieve growth rates of 7 per cent if projects are executed on time. “Delays in projects and critical inputs are hitting economic growth,” said C Rangarajan, Chairman of Singh’s Economic Advisory Council. The government had set a five- year target of investing $1 trillion in infrastructure by 2017, with half coming from the private sector, in a bid to lift economic growth to 8.4 per cent. The Asian Development Bank (ADB) identified a funding gap of more than $100 billion. The International Monetary Fund (IMF) attributes India’s slowdown in large part to infrastructure delays. India’s trend growth has declined as a result to 6-7 per cent from 8 per cent before the crisis, it estimates. buyers. While it is not certain whether the Act will provide single-window clearance of projects, it would be ideal if such a system were also introduced. Sunil Mantri, President, the National Real Estate Development Council, hopes that implementation of the Act will bring much more transparency into the sector. ‘’We want inclusion of various authorities such as civic bodies, the Maharashtra Housing & Area Development Authority (MHADA), the Mumbai Metropolitan Region Development Authority (MMRDA), the Maharashtra Pollution Control Board (MPCB) and the state distribution utility in the regulatory set up. “This is necessary to avoid delays in the completion of projects for want of final clearances from these authorities. Further, keeping 10 per cent flats under escrow till occupation certificate is received is very high, wherein huge funds of developers will get blocked when the sector is passing through a liquidity crunch,’’ he said. The state Act was passed by the Maharashtra legislature in 2012. Thereafter, Chief Minister Prithviraj Chavan had sent communications to the Centre on July 21, 2012, May 2, 2013 and November 18, 2013. On December 22 last year, Chavan had sought intervention of Union Minister of Housing & Urban Poverty Alleviation Girija Vyas for recommending the state Act for Presidential assent. The Act makes it mandatory for developers to disclose property title and layout and completion plans to buyers. The project details have to be registered with the regulatory authority and will be displayed on its website. Developers will be responsible for fixing major defects that crop up in the building during the first five years and may have to refund buyers for Chronic shortages of power generation capacity persist, too, although the broader economic lull has made it possible to narrow the deficit to an estimated 4.2 per cent of peak demand this fiscal year from 9 per cent last year. One project that has been a long time coming is the $2.3 billion North Karanpura thermal power plant in the eastern state of Jharkhand, where the foundation was laid in 2001 by Singh’s predecessor. Investment projects worth a combined $52 billion are at least starting to move forward, out of the $80 billion cleared, which should lift demand for raw materials such as steel and cement. Capital investment contributes nearly 35 per cent to India’s economy, but it is forecast to barely grow in the current fiscal year that ends in March. “A broad-based investment recovery holds the key to a sustainable uptick in GDP,” said economist Nayar. Yet, inflation running at 9 per cent and strained government and banking sector balance sheets pose significant constraints. However, India’s sprawling democracy is less responsive to a top-down approach, unlike China, with many projects encountering major opposition on the ground in addition to the country’s notorious amount of bureaucratic red tape. A slump in the tally of new investment proposals underscores his point. The number of new project announcements fell 83 per cent to 266 in the last quarter from 1,588 in the first quarter of 2011, according to CMIE, an economic think tank. delayed projects. The regulator has the powers of a civil court and can impose fines of up to Rs. 1 crore and prison terms up to three years. The Act excludes large housing stock from its purview: houses built by the state-run Maharashtra Housing and Development Authority (Mhada) and the City & Industrial Development Corporation of Maharashtra (Cidco). Also, the rehabilitation component of redevelopment projects, which form the bulk of construction in the city.

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Page 1: Construction Industry Review 9 2014

March 03-09, 2014 1

Volume 3 l Issue No 9 l March 03-09, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication

Maha govt to set up housing regulatory authority by June

$80 b for infra projects on Centre’s agenda

The Maharashtra government proposes to put in place the housing regulatory authority by June this year as per the provisions of the Maharashtra Housing (Regulation and Development) Act 2012.

The government will soon start formulation of necessary rules which will be ready by the same time. The government’s move comes close on the heels of Presidential assent received last month for the Maharashtra Housing (Regulation and Development) Act 2012. Maharashtra will be the first state to establish the regulatory authority for the housing sector.

Minister of State for Housing Sachin Ahir, said, “The government is quite serious to set up the housing regulatory authority by June. The rules will be framed during the code of conduct for the ensuing elections. The Act aims to regulate and promote the construction, sale, management and transfer of flats on ownership basis. The Act will empower the flat owners and it will be a game changer in regulating the housing sector.”

The government official indicated that the housing regulatory authority will be headed by a retired bureaucrat.

that has yet to recover from global financial crisis. Opposition leader Narendra Modi , touted as the next leader of the world’s biggest democracy, has the backing of big business and a strong growth record running his home state of Gujarat.

The elections are slated in May, but economists see no quick fix after

The Cabinet’s task force set up by Prime Minister Manmohan Singh has fast-tracked approvals for projects worth 5 per cent of gross domestic product; severe bottlenecks will limit the scope for his successor to achieve a turnaround. The infrastructure investments in the projects are taking time to revive

the economy as it will pay growth dividends for the next government in coming days.

Figures out are expected to show that the economy grew by 4.9 per cent in the past three months of 2013 from a year earlier, near a decade low, as high inflation and increased borrowing costs depress confidence

The Br ihan Mumbai Munic ipal Corporation’s former commissioner Subodh Kumar is a frontrunner for the post.

According to the Act, registering the housing project and displaying it on the website of the Housing Regulatory Author i ty becomes mandatory for the promoter. The promoter will have to pay fees not exceeding Rs 50,000 along with the application for registration.

‘’Hopefully, the state-level housing regulator will implement systems which will mitigate risks and increase accountability. It can potentially boost transparency by standardizing practices, streamlining procedure systems and attending to consumer grievances in a decisive and timely manner. It wil l therefore help in bringing about a greater level of trust between buyers, sellers, developers and financial institutions that fund the real estate sector. It can also help curb speculative activity in the sector and contribute towards keeping prices in check,’’ noted Anuj Puri, Chairman & Country Head, JLL. According to Puri, if the correct processes are followed as outlined, developers will benefit as much as

the polls that can overcome malaise and bring a return to the double-digit rates of investment growth that drove India’s boom of the past decade.

“Despite the recent spate of clearances an early revival seems unlikely, given the long gestation period of projects,” says Aditi Nayar, an economist with ratings agency Icra. Officials concede that rapid approvals won’t revive investment overnight, but they argue that India’s $1.8 tri l l ion economy could stil l achieve growth rates of 7 per cent if projects are executed on time.

“Delays in projects and critical inputs are hitting economic growth,” said C Rangarajan, Chairman of Singh’s Economic Advisory Council. The government had set a five-year target of investing $1 trillion in infrastructure by 2017, with half coming from the private sector, in a bid to lift economic growth to 8.4 per cent.

The Asian Development Bank (ADB) identified a funding gap of more than $100 billion. The International Monetary Fund (IMF) attr ibutes India’s slowdown in large part to infrastructure delays. India’s trend growth has declined as a result to 6-7 per cent from 8 per cent before the crisis, it estimates.

buyers. While it is not certain whether the Act will provide single-window clearance of projects, it would be ideal if such a system were also introduced.

Suni l Mantr i , President , the National Real Estate Development Council, hopes that implementation of the Act will bring much more transparency into the sector. ‘’We want inclusion of various authorities such as civic bodies, the Maharashtra Housing & Area Development Authority (MHADA), the Mumbai Metropolitan Region Development Authority (MMRDA), the Maharashtra Pollution Control Board (MPCB) and the state distribution utility in the regulatory set up.

“This is necessary to avoid delays in the completion of projects for want of final clearances from these authorities. Further, keeping 10 per cent flats under escrow till occupation certificate is received is very high, wherein huge funds of developers will get blocked when the sector is passing through a liquidity crunch,’’ he said.

The state Act was passed by the Maharashtra legislature in 2012. Thereafter, Chief Minister Prithviraj

Chavan had sent communications to the Centre on July 21, 2012, May 2, 2013 and November 18, 2013. On December 22 last year, Chavan had sought intervention of Union Minister of Housing & Urban Poverty Alleviation Girija Vyas for recommending the state Act for Presidential assent.

The Act makes it mandatory for developers to disclose property title and layout and completion plans to buyers. The project details have

to be registered with the regulatory authority and will be displayed on its website.

Developers will be responsible for fixing major defects that crop up in the building during the first five years and may have to refund buyers for

Chronic shortages of power generation capacity persist, too, although the broader economic lull has made it possible to narrow the deficit to an estimated 4.2 per cent of peak demand this fiscal year from 9 per cent last year.

One project that has been a long time coming is the $2.3 billion North Karanpura thermal power plant in the eastern state of Jharkhand, where the foundation was laid in 2001 by Singh’s predecessor.

Investment projects worth a combined $52 billion are at least starting to move forward, out of the $80 billion cleared, which should lift demand for raw materials such as steel and cement. Capital investment contributes nearly 35 per cent to India’s economy, but it is forecast to barely grow in the current fiscal year that ends in March.

“A broad-based investment r ecove ry ho lds t he key to a sustainable uptick in GDP,” said economist Nayar. Yet, inf lat ion running at 9 per cent and strained government and banking sector balance sheets pose significant constraints.

However, Ind ia ’s sprawl ing democracy is less responsive to a top-down approach, unlike China, with many projects encountering major opposition on the ground in addition to the country’s notorious amount of bureaucratic red tape.

A s lump in the ta l ly of new investment proposals underscores his point. The number of new project announcements fell 83 per cent to 266 in the last quarter from 1,588 in the first quarter of 2011, according to CMIE, an economic think tank.

delayed projects. The regulator has the powers of a civil court and can impose fines of up to Rs. 1 crore and prison terms up to three years.

The Act excludes large housing stock from its purview: houses built by the state-run Maharashtra Housing and Development Authority (Mhada) and the City & Industrial Development Corporation of Maharashtra (Cidco). Also, the rehabilitation component of redevelopment projects, which form the bulk of construction in the city.

Page 2: Construction Industry Review 9 2014

March 03-09, 2014 2building materials

Export: Cement, Cement Products & Building Materials Date Export Items/ Products Port Code Foreign Port Qty (Kgs) Value (Rs) FOB Rate

Lime Stone/ Marble/ Granite stone 12/4/2013 NATURAL PROCESSED STONE GUR NETHERLANDS 26000 168776.08 6.4912/6/2013 NATURAL LIME STONE CHN FRANCE 100000 710921.36 7.112/9/2013 UNPOLISHED GRANITE STONES CHN DENMARK 10000 85107.59 8.5112/11/2013 COBBLE STONES CHN USA 14400000 51150540.56 3.612/12/2013 TRIMMED GRANITE CHN SRI LANKA 22000 274493.9 12.4812/16/2013 NATURAL STONE CHN JAPAN 84000 1180975 14.112/16/2013 UNPOLISHED GRANITE STONES CHN UAE 220000 1176621.28 5.312/16/2013 ROUGH GRANITE BLOCKS KAN CHINA 335532 8698667.1 25.912/17/2013 ALUMINIUM SILICATE MUN SPAIN 49000 395398.46 8.112/17/2013 GRANITE BLOCKS KRI HONGKONG 2438000 19972827.4 8.212/20/2013 MARBLE TILES PET BANGLADESH 21000 205251.14 9.7712/22/2013 LIMESTONE CHN BELGIUM 57200 1086281.84 19.012/22/2013 NATURAL LIMESTONE CHN U K 252000 1859244 7.412/25/2013 NATURAL LIME STONE CHN CANADA 20250 388663.72 19.1912/25/2013 NATURAL LIMESTONE CHN ECUADOR 100000 1210461.12 12.112/25/2013 UNPOLISHED GRANITE STONES CHN NORWAY 438000 995838.5 2.3 Total 18572982 89560069.05 4.8

Marble 12/5/2013 GREEN MARBLE MUN PAKISTAN 267220 2222222.62 8.3212/5/2013 MARBLE BLOCKS KNA CHINA 11554730 90006866.24 7.812/8/2013 MARBLE BLOCKS KAN HONGKONG 5894720 38095839.04 6.512/16/2013 MARBLE BLOCKS MUN TAIWAN 3508920 40247516.16 11.512/20/2013 ROUGH MARBLE BLOCKS MUN THAILAND 51450 694611.5 13.512/22/2013 MARBLE BLOCKS MUN BANGLADESH 603510 2237039.2 3.712/22/2013 ROUGH MARBLE BLOCKS MUN ITALY 1345662 13424415.96 10.012/30/2013 MARBLE BLOCKS MUN EGYPT 3001660 17884323.84 6.0 Total 26227872 204812834.6 7.8

Natural Manganese 12/18/2013 NATURAL MANGANESE DIOXIDE POWDER MUM NETHERLANDS 0.2 22 11012/25/2013 NATURAL MINERAL POWDER MICA MUM JAPAN 0.1 2 20 Total 0.3 24 80

Mica 12/1/2013 MICA FLAKES KOL EGYPT 160000 617373.9 3.912/1/2013 MICA POWDER CHN UAE 14000 681296 48.6612/3/2013 MICA BLOCKS KOL GREECE 315 774605.5 2459.0712/3/2013 MICA FLAKES KOL NETHERLANDS 725492 16590695.08 22.912/3/2013 MICA FINE CHN LIBYA 36000 370832 10.312/4/2013 MICA FLAKES CHN BELGIUM 2000 63517.97 31.7612/4/2013 WET GROUND MICA POWDER CHN INDONESIA 9000 702694.3 78.0812/5/2013 MICA ROUND KOL KOREA 40000 1345128.4 33.612/5/2013 MICA KOL AUSTRALIA 108000 1564609.2 14.512/6/2013 MICA BLOCKS CHN USA 10361.6 1627370.5 157.112/6/2013 MICRONISED MICA POWDER CHN MALAYSIA 17000 542247.48 31.912/8/2013 MICA BLOCKS KOL GERMANY 5740 670923.56 116.912/8/2013 MICA (WET GROUND MICA) CHN JAPAN 16000 1013760 63.3612/8/2013 RUBY MICA SCRAP KOL ESTONIA 144000 4824000 33.512/10/2013 MICA BLOCKS KOL RUSSIA FED. 120 712451 5937.0912/11/2013 MICA POWDERDETL KOL IRAN 200000 1116800 5.5812/11/2013 MICA SCRAP MUN CHINA 162700 3898175.3 24.012/12/2013 MINERAL POWDER MUN MYANMAR 1000 19651.14 19.6512/12/2013 MICA FLAKE KOL U K 308760 2933798.56 9.512/13/2013 MICA BLOCKS KOL TAIWAN 50 8536.33 170.7312/13/2013 MICA BLOCKS PET BANGLADESH 520 11364.58 21.8512/16/2013 MICA FLAKES MUN OMAN 153000 1892251.2 12.412/17/2013 MICA POWDER KOL S. ARABIA 18000 92293 5.1312/17/2013 MICA KOL THAILAND 17000 49464.9 2.9112/17/2013 MICA POWDER KOL POLAND 20000 225410.3 11.2712/17/2013 MICA SCRAPASPER KOL ROMANIA 25000 894412.5 35.7812/22/2013 MICA BLOCK CHN BRAZIL 88000 2903600 33.012/25/2013 MICA ROUND MUN KENYA 70 30850.77 440.7312/30/2013 MICA BLOCKS KOL SLOVAKIA 1000 785527.5 785.5312/30/2013 MICA POWDER JNP PAKISTAN 2000 166155 83.08 Total 2285128.6 47129795.97 20.6

Quartz (other than natural sands) 12/1/2013 QUARTZ GRITS MUN VIETNAM 450000 3362512.5 7.512/1/2013 SILICON DIOXIDE (QUARTZ) VIZ MALAYSIA 1369000 11180182.88 8.212/1/2013 QUARTZ POWDER MUN VIETNAM 383200 2220062.66 5.812/1/2013 QUARTZ SILICA KAN UAE 12000 47486.68 4.012/3/2013 QUARTZ POWDER CHN THAILAND 264000 5410442.1 20.512/4/2013 QUARTZ POWDER CHN S. ARABIA 5000 14323.87 2.8612/4/2013 QUARTZ POWDER CHN UAE 5000 14323.87 2.8612/4/2013 QUARTZ GRITS MUN ITALY 162000 1397088 8.612/5/2013 QUARTZ GRITZ MUN BANGLADESH 165000 1378492.5 8.3512/5/2013 QUARTZ GRITZ MUN IRAN 165000 1378492.5 8.3512/8/2013 SILICA RAMMING MASS KNA S. ARABIA 1264000 7231619.6 5.712/10/2013 QUARTZ LUMPS CHN MALAYSIA 1754000 5852008.7 3.312/10/2013 QUARTZ KRI USA 1134000 3769868.8 3.312/10/2013 QUARTZ POWDER KOL NIGERIA 1026000 6275971.7 6.112/11/2013 QUARTZ SAND MUN UAE 268000 1020264.9 3.812/11/2013 QUARTZ POWDER MUN TANZANIA 54000 240791.4 4.4612/11/2013 QUARTZ POWDER MUN USA 54000 240791.4 4.4612/11/2013 QUARTZ SILICA MUN UAE 3176000 12655464.72 4.012/11/2013 SILICA QUARTZ POWDER MUN MALAYSIA 222000 1503716 6.812/12/2013 QUARTZ POWDER KOL KENYA 172000 2401890.72 14.012/12/2013 SILICA RAMMING MASS KOL SRI LANKA 54000 340136 6.312/12/2013 SILICA RAMMING MASS KOL KENYA 54000 340136 6.312/15/2013 QUARTZ LUMPS CHN OMAN 172800 1443918.8 8.412/16/2013 QUARTZ POWDER CHN ITALY 40000 605089.5 15.1312/16/2013 QUARTZ POWDER CHN JAPAN 40000 605089.5 15.1312/16/2013 QUARTZ POWDER (SILICA POWDER) PET BANGLADESH 800000 3099330 3.912/18/2013 BUFF GREY QUARTZITE MUN ITALY 46900 390735.63 8.3312/18/2013 QUARTZITE MUN ITALY 46900 390735.63 8.3312/20/2013 QUARTZ POWDER KNA VIETNAM 27650 180785 6.5412/20/2013 QUARTZ POWDER KNA BANGLADESH 27650 180785 6.5412/20/2013 QUARTZ MUN OMAN 650000 4619835.02 7.112/20/2013 QUARTZ POWDER - MICRON SILICA PET BANGLADESH 512000 2328032.3 4.512/20/2013 QUARTZ POWDER CHN KOREA 20000 364609.2 18.2312/20/2013 QUARTZ POWER CHN KOREA 20000 364609.2 18.2312/23/2013 ARFURANE C POWDER AHM TUNISIA 19500 1274573.02 65.3612/23/2013 ARFURANE C POWDER AHM MAURITIUS 19500 1274573.02 65.3612/23/2013 QUARTZ POWDER MUN INDONESIA 216000 1126256.56 5.212/23/2013 SILICA SAND MUN MAURITIUS 212000 1950596.92 9.212/25/2013 QUARTZ LUMPS CHN CHINA 1000 15675 15.6812/25/2013 QUARTZ LUMPS CHN CHINA 1000 15675 15.6812/29/2013 QUARTZ GRITS VIZ VIETNAM 1104000 9192575.52 8.312/29/2013 ARFURANE C POWDER AHM MOROCCO 29600 522155.98 17.612/29/2013 QUARTZ GRITS MUN OMAN 736000 3752805.64 5.112/29/2013 QUARTZITE GRAINS & POWDER REX NEPAL 206000 1146599.98 5.612/30/2013 QUARTZ GRITS CHN KOREA 376000 3232624.3 8.612/31/2013 QUARTZ CHN JAPAN 3994000 39992520.38 10.0 Total 21530700 146346253.6 6.8

Kaolin and other kaolinic clays 12/1/2013 KAOLIN CLAY/ CHINA CLAY POWDER /KAOLIN POWDER MUN UAE 72216000 78152774.4 1.112/1/2013 CALCINED KAOLIN MUN NIGERIA 80000 2134440 26.6812/1/2013 CALCINED KAOLIN MUN GERMANY 80000 2134440 26.6812/1/2013 KAOLIN COC NETHERLANDS 24200 313990.68 12.9712/1/2013 KAOLIN BCK POWDER COC TURKEY 24200 313990.68 12.9712/8/2013 CHINA CLAY MUN KUWAIT 1008000 6108379.2 6.112/8/2013 KAOLIN LUMPS MUN TAIWAN 300000 1384187.6 4.612/8/2013 BENEFITS COC CHINA 1000 31006.3 31.0112/8/2013 CHINA CLAY COC TURKEY 1000 31006.3 31.0112/8/2013 KAOLIN- (PROCESSED CHINA CLAY) COC PHILIPPINES 25000 654476.63 26.1812/8/2013 KAOLIN- (PROCESSED CHINA CLAY) COC KENYA 25000 654476.63 26.1812/9/2013 KAOLIN / CHINA CLAY KAN UAE 20000 80574.9 4.0312/9/2013 KAOLIN / CHINA CLAY KAN KENYA 20000 80574.9 4.0312/10/2013 KAOLIN CLAY MUN IRAN 175000 1363250 7.7912/10/2013 KAOLIN CLAY MUN GERMANY 175000 1363250 7.7912/10/2013 KAOLIN MUN KOREA 32000 193177.6 6.0

Date Export Items/ Products Port Code Foreign Port Qty (Kgs) Value (Rs) FOB Rate

12/11/2013 CERAMIC INDUSTRIES ( KAOLIN LUMPS) MUN IRAN 350000 2329621.5 6.712/13/2013 KAOLENE - CHINA CLAY PET BANGLADESH 200530 1915968.1 9.612/13/2013 LIGHT KAOLIN JNP MAURITIUS 238325 5618029.92 23.612/16/2013 KAOLINIC CLAYS PET BANGLADESH 328000 2597391.3 7.912/18/2013 KAOLIN MUN ANGOLA 1120000 10374896 9.312/23/2013 KAOLIN PAN JORDAN 40000 416328 10.4112/23/2013 KAOLIN PAN GERMANY 40000 416328 10.4112/23/2013 KAOLIN POWDER MUN CHINA 144000 1017978.5 7.112/25/2013 KAOLIN- (PROCESSED CHINA CLAY) COC OMAN 28000 347966.71 12.4312/25/2013 KAOLIN- (PROCESSED CHINA CLAY) COC KENYA 28000 347966.71 12.4312/25/2013 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC TURKEY 5000 94703.12 18.9412/25/2013 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC GUATEMALA 5000 94703.12 18.9412/26/2013 CHINA CLAY MUN KOREA 480000 3146449.9 6.612/30/2013 KAOLINIC CLAYS PET BANGLADESH 254000 1633589.8 6.412/30/2013 HYDROUS ALUMINIUM SILICATE COC SRI LANKA 58000 681084.44 11.712/30/2013 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC GERMANY 775800 10977641.92 14.212/31/2013 HYDRO CHLORIDE MUM CANADA 100 522.5 5.2312/31/2013 HYDRO CHLORIDE MUM GERMANY 100 522.5 5.2312/31/2013 KAOLIN- (PROCESSED CHINA CLAY) MUN S. AFRICA 532000 4144676.8 7.812/31/2013 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC INDONESIA 240000 4261407.1 17.8 Total 79073255 145411771.8 1.8

Clay 12/4/2013 CHINA CLAY MUN S. ARABIA 236000 1974780.2 8.412/4/2013 CHINA CLAY MUN UAE 23000 118389.73 5.1512/4/2013 CHINA CLAY MUN CHINA 23000 118389.73 5.1512/4/2013 REFINED CLAY JNP U K 2304 118332.29 51.3612/4/2013 REFINED CLAY JNP IRAN 2304 118332.29 51.3612/9/2013 CHINA CLAY PET BANGLADESH 156000 1609939.74 10.312/11/2013 FULLERS EARTH POWDER REX NEPAL 80000 364800 4.612/15/2013 CALCINED CHINA CLAY POWDER MUN YEMEN 17000 323025.5 1912/15/2013 CALCINED CHINA CLAY POWDER MUN GHANA 17000 323025.5 1912/18/2013 CLAY JNP GERMANY 600 1555.52 2.612/18/2013 PROCESSED CHINA CLAY COC GUINEA 16000 169736.16 10.6112/18/2013 PROCESSED CHINA CLAY COC USA 16000 169736.16 10.6112/23/2013 HYDROUS KAOLIN MUN KOREA 160000 1128280.3 7.112/27/2013 CHINA CLAY JNP SRI LANKA 228000 1398488 6.112/31/2013 CLAY/EARTH JNP KENYA 120000 1933244.56 16.1 Total 1097208 9870055.68 9.0

Natural Garnet 12/5/2013 GARNET VIZ JAPAN 40000 401555 10.0412/26/2013 GARNET VIZ MALAYSIA 840000 8275260 9.912/16/2013 GARNET VIZ UKRAINE 54000 232702.8 4.3112/16/2013 GARNET VIZ USA 612000 5947195 9.712/16/2013 GARNET VIZ CEI (BALTIC SEA) 784000 5699766.8 7.312/22/2013 GARNET VIZ QATAR 840000 8239483.5 9.812/22/2013 GARNET VIZ THAILAND 24000 292600 12.1912/22/2013 GARNET VIZ AUSTRALIA 2122000 20792633.5 9.812/23/2013 GARNET VIZ ISRAEL 56000 574750 10.312/25/2013 GARNET VIZ UAE 4200000 34596293.8 8.212/26/2013 GARNET VIZ CANADA 56000 526680 9.4112/30/2013 GARNET VIZ EGYPT 224000 2054888 9.17 Total 9852000 87633808.4 8.9

Fly Ash 12/2/2013 PROCESSED FLYASH JNP BAHARAIN 623340 1862761.36 3.012/6/2013 FLY ASH MUN UAE 485280 627758.21 1.2912/15/2013 FLY ASH MUN QATAR 4872000 11865076.48 2.412/16/2013 SYNTHETIC ORGANIC MUM BRAZIL 2000 8192.31 4.112/16/2013 INSULATING POWDER LUD POLAND 25000 297878.25 11.9212/17/2013 DRY FLY ASH MUN S. ARABIA 24132120 68803939.8 2.912/17/2013 FLY ASH MUN JORDAN 112000 432872.84 3.8612/20/2013 FLY ASH PIP USA 224050 1101760.54 4.912/23/2013 ALUMINA AND SILICA - CERAMIC NAG KOREA 144000 8964288 62.312/25/2013 FLY ASH POZZOCRETE JNP EGYPT 2223480 8050149.38 3.612/29/2013 FLY ASH MUN BAHARAIN 2016000 5025713.96 2.512/30/2013 PROCESSED FLY ASH JNP OMAN 3638780 11636082.64 3.212/31/2013 FLY ASH VIZ MALAYSIA 22400 41841.8 1.8712/31/2013 FLY ASH JNP THAILAND 1000 26799.39 26.8 Total 38521450 118745115 3.1

Alumina 12/3/2013 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP THAILAND 40000 1192429.7 29.8112/4/2013 ALUMINIUM HYDROXIDE AMORPHOUS JNP KOREA 20000 1897280 94.8612/6/2013 ALUMINIUM OXIDE AHM USA 400 313174 782.912/7/2013 ALUMINA TRIHYDRATE ALUMINIUM HYDROXIDE JNP S. ARABIA 968000 17852237 18.412/8/2013 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP URUGUAY 22000 391314 17.7912/9/2013 ALUMINIUM HYDROXIDE AMORPHOUS MUM INDONESIA 110400 4977582 45.112/10/2013 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP PAKISTAN 511000 7687384.7 15.012/11/2013 CALCINED ALUMINA (INDAL CALCINED ALUMINA) JNP KOREA 160000 4739146.1 29.612/12/2013 CALCINED ALUMINA (INDAL CALCINED ALUMINA) JNP MEXICO 100000 3482660.8 34.8312/13/2013 DRIED ALUMINIUM HYDROXIDE JNP GHANA 24750 2237586.79 90.412/26/2013 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP JAPAN 160000 3239363 20.212/15/2013 ALUMINIUM HYDROXIDE JNP GHANA 3000 371764.5 123.9212/16/2013 CALCINED ALUMINA (INDAL CALCINED ALUMINA) JNP SRI LANKA 48000 2181733.8 45.512/17/2013 ALUMINA TRIHYDRATE (INDAL ALUMINA) CHN PHILIPPINES 660000 8213040 12.412/18/2013 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) JNP MALAYSIA 2068000 26928110 13.012/19/2013 DRIED ALUMINIUM HYDROXIDE GEL JNP PAKISTAN 50000 4013503.34 80.312/20/2013 ALUMINIUM HYDROXIDE HYD IRELAND 20000 1091200 54.5612/21/2013 DRIED ALUMINIUM HYDROXIDE GEL JNP MEXICO 45200 6035904.04 133.512/22/2013 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) CHN TAIWAN 2156000 25881428 12.012/23/2013 ALUMINIUM HYDROXIDE AMORPHOUS JNP AUSTRALIA 76000 7028550 92.512/24/2013 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP OMAN 40000 790333.5 19.7612/25/2013 ALUMINA COC SLOVAKIA 400 305196.42 763.012/29/2013 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) CHN INDONESIA 1408000 19036325 13.512/30/2013 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) CHN KOREA 2800000 40535952.5 14.512/31/2013 ALUMINA COC GERMANY 150 160201.8 1068.01 Total 11491300 190583401 16.59

Barytes 12/1/2013 MINERAL POWDER MICRON BARYTES CHN MAURITIUS 20400 604758 29.6512/3/2013 BARITE POWDER - API CHN U K 540000 5110798 9.4612/4/2013 BARITE ORE KRI USA 98800000 342580952 3.512/4/2013 BARITE POWDER CHN NETHERLANDS 7 75.46 10.7812/8/2013 BARIUM SULPHATE BARYTES CHN SINGAPORE 588000 5618104 9.612/9/2013 BARYTES POWDER CHN S. ARABIA 9455000 71367413.1 7.512/12/2013 MINERAL POWDER MUN MYANMAR 5000 148550.26 29.7112/13/2013 MINERAL POWDER MUN TANZANIA 4009000 32037947 8.012/15/2013 BARITE POWDER API CHN UAE 810000 4291624.5 5.312/16/2013 BARIUM SULPHATE BARYTES CHN INDONESIA 24000 476760.75 19.8712/17/2013 BARRITE POWDER CHN KUWAIT 1890000 8693214.22 4.612/19/2013 MICRON BARYTE BAR SPAIN 2000 77447.3 38.7212/21/2013 BARITE POWDER CHN BANGLADESH 400000 3961547.4 9.912/22/2013 BARITE POWDER CHN VENEZUELA 756000 7257305.66 9.612/25/2013 BARITE POWDER CHN MOZAMBIQUE 1125000 8938680.75 7.9512/26/2013 BARITE POWDER CHN OMAN 3240000 27288976 8.412/26/2013 MICRON BARYTER BAR AUSTRALIA 5000 153876.26 30.7812/30/2013 BARITE POWDER - API CHN THAILAND 5130000 42501623 8.312/30/2013 MINERAL POWDER MICRON BARYTE CHN SRI LANKA 27000 715250.25 26.4912/31/2013 BARITE POWDER TON KENYA 468000 8746650 18.69 Total 127294407 570571553.9 4.5

Bauxite 12/3/2013 CALCINED BAUXITE MUN S. AFRICA 198000 2142794.5 10.8212/9/2013 CALCINED BAUXITE MUN JAPAN 1000000 19588672 19.612/12/2013 CALCINED BAUXITE MUN BAHARAIN 25000 308455.65 12.3412/26/2013 CALCINED BAUXITE JNP ITALY 383720 4890717.5 12.712/18/2013 BAUXITE ORE JNP KOREA 162000 1084702 6.712/18/2013 BAUXITE JNP GERMANY 1546 8395.22 5.412/18/2013 BAUXITE (GROUNDED BAUXITE) KAN S. ARABIA 400000 2778123 6.912/25/2013 CALCINED BAUXITE AHM UAE 22000 470249.02 21.3712/29/2013 BAUXITE CEMENT REX NEPAL 85840 77256 0.912/30/2013 CALCINED BAUXITE JNP SLOVENIA 1580840 17298862.08 10.912/31/2013 BAUXITE POWDER MUN OMAN 2800000 16093000 5.7 Total 6658946 64741226.97 9.7

Page 3: Construction Industry Review 9 2014

March 03-09, 2014 3

Karan Turakhiya, Executive Director, Eskay Eelvators, says there’s a lot of scope for development in tier-3 cities, but it will take time for the situation to change, in this interaction with Remona Divekar. Excerpts:

in PersOn

The real estate sector is highly fragmented, capital intensive, and has close links with the economy. How does it impact developers in such uncertain situations?

I think today developers are much more aware of the cyclical nature of industry and business environment. Thus I don’t think any major hard hitting impact would take place, unless it’s something like the late 1990s recession.

A typical real estate project has a gestation period of 3-4 years and any adverse change in the macro-economy can affect cash flows of the developer. How do you cope with such crises?

Developers today understand business environment and market nature. Keeping all such scenarios in mind, developers plan their projects. Developers usually have a fix set of investors to support cash flow and a lot of developers have opted for NBFCs (non-bank financial companies) to ease finance pressure.

Tell us about investment opportunities in the realty sector, considering the current market condition and the projected growth for tier-2 and -3 cities.

In tier-3 cities, the potential is high; however, opportunities are slow. The metros and tier-2 cities see a good growth with great opportunities. Delay in approvals and licensing is becoming an economic burden. The investment flow as against opportunities in the Indian realty sector as of now is slow as the investor mood is not fine.

‘The need is to work towards world-class infrastructure’

Despi te adverse condi t ions, property prices in most cities have been holding ground for a long time now. What impact would it have on property development in metros as well as tier-2 and -3 cities?

There has been a rise in price and that’s only because cost in general has increased. Another reason would be delay in approvals and licensing. It takes a lot of time for these formalities to get sanctioned, which in turn leads to increase in overall costing which thus leads to high prices. The property development in metros as well as tier-2 and -3 cities might see a general slowdown, depending upon regional conditions.

What measures are developers taking to curb adverse crises such as falling exports, sagging GDP and depreciating rupee? Is FDI a feasible bet making the sector more organized?

We as developers are getting used to the business scenario, thus becoming more organized. Costs of business and corruption have gone extremely high, which restricts the feasibility of a project.

T h u s , t o f a c i l i t a t e p r o p e r development and accomplishment of our projects costs estimated end up being inflated. As far as FDI is concerned, I don’t think it’s a good bet as easing FDI towards real estate does not guarantee inflow of funds.

There’s a lot of scope of development in tier-3 cities, but it will take time for the situations to change.

Give us more details on your projects developed and those in stages of completion in the commercial, residential sector. In all how much area are you developing?

There is nothing under development as of now. We have finished an industrial project of approximately 1,00,000 sq ft on the outskirts of Mumbai. We intend to start a new project ITUS in Andheri west. ITUS is a redevelopment project in an area of 1,20,000 sq ft.

In the residential and commercial segment what is the total area of development in the completed projects so far?

The total area developed by us is close to 7,00,000 sq feet. The total area in planning and developing stages is close to 3,00,000 sq feet.

As a prime developer what is your take on the slow rate of approvals, recent regulatory changes in key micro market – Mumbai, inflation impacting cost structure, declining demand due to increasing prices?

Major concern would be the government approvals. If approvals are not given easily and regulations are not developed to support business environment, we developers would not be able to deliver our best.

Today, housing has become a necessity. The government needs to start thinking and planning in a 360 degree view. Delay in formalities leads

to increase in interest that has to be paid, thus prices tend to go extremely high.

The Ministry of Housing & Urban Poverty Alleviation plans to ease norms for FDI in real estate up to 100 per cent under the automatic route in townships, housing, built-up infrastructure and construction development projects. Is it a boon or bane?

Easing of FDI norms could be a boon only if the approvals of projects get smooth and fast without which the effect of the ease in norms cannot be felt in the market. So long as the project approvals move fast the market would be in a much better state irrespective of FDI norms.

What is your view on the real estate regulation and development bill which has been passed recently?

The real estate regulation bill, if addresses the right issues and plugs policy gaps, can have a positive impact. The bill aims to clean up the system and this is a must to improve business environment and have corrective effect.

Will larger established and well-capitalized companies be in a better position to manage risks as compared to smaller players?

Yes. I think larger established companies would be in a better position to manage risks as they usually have access to banks and NBFCs and have a bigger play area and thus are able to manage risks better.

Page 4: Construction Industry Review 9 2014

March 03-09, 2014 4inFrastruCture

Obstacles in Asia-Pacific regionAustralia must confront the large gap between government funds and

costly infrastructure needs. Indonesia wants

to finance as much as $250 billion in new roads, ports, railways, etc over the next five

years(Part 4)

Like most developed countries, Australia is coping with the costs and inevitable pol i t ical hurdles inherent in enhancing and reworking its aging infrastructure, which is straining to meet expanding 21st-century industrial and demographic demands.

Unremitting traffic snarls in major cities like Sydney, Melbourne, and Brisbane and various port bottlenecks threaten to sap productivity, and inadequate transit systems add to the strain. Ensuring water for a growing population in a notoriously water-scarce continent raises increasing challenges. In addressing climate change concerns, the government appears determined to push utilities away from reliance on coal-based power plants to c leaner fuels, primarily natural gas.

Funds and infra needsEven with the past 20 years of

strong economic gains and low unemployment, supported by an export-oriented mining boom, the country must confront the large gap between available government funds and costly infrastructure needs.

A recen t s lowdown, l i nked to weaker growth in China, may make government spending on in f ras t ructure more d i f f icu l t—especially at the state level, where Queensland and New South Wales in particular suffer from large deficits.

National priorityTo its credit, the federal government

has taken the initiative over the past half-decade to prior i t ize needs through the Infrastructure Australia authority, fund a $37 billion ($A36 billion) national building plan, and marshal private financing through the Infrastructure Partnerships Australia programme.

As a resul t o f th is nat ional commi tment and a h is to ry o f innovat ion in pro ject f inance, interviewees say that “Australia is one of the best countries for undertaking PPPs,” having fashioned an “ac-cepted model” and attained “a comfort level” in working between the public and private sectors.

Since 2007, federal infrastructure spending per capita has increased

from $145 (A$141) to $277 (A$269), and the country’s privately managed superannuation (pension) funds have allocated between 5 and 10 per cent of total assets into infrastructure investments—well above the levels of pension plan sponsors in other countries, which range from under 2 per cent in the Eurozone to below 1 per cent in the United States.

Biggest challengesHowever, these investments have

not targeted domestic infrastructure. U n l o c k i n g t h i s f u n d i n g p o o l remains one of Australia’s biggest chal lenges—and opportunit ies. Infrastructure Australia also has identified $206 billion (A$200 billion) in government assets—por ts , airports, rail terminals, and power and water uti l it ies—that can be privatized to help fund infrastructure shortfalls, reduce debt, and improve operational productivity.

So far, 124 projects, totaling more than $62 billion (A$60 billion), have been contracted through PPPs. For example, a recent decision to lease two ports—Botany and Kembla—to private operators should improve ef f ic iency in moving container shipments through the facilities.

Over the near term, high-priority national transport initiatives focus on augmenting connectivity between major cities and ports, concentrating f re igh t on ra i lways , re l i ev ing intracity congestion, and reducing greenhouse gas emissions.

High-profile projects include: Highways. Dual-carriage highways l ink ing Br isbane, Sydney and Melbourne are being built.

Rail improvements. Investments include rebuilding and modernizing a third of the national freight-rail network to help reduce truck traffic, and constructing an under-ground rail line through Brisbane. The country’s longest and deepest rail tunnels are being bored near Sydney.

Investments in Melbourne. Intra-city road chokepoints are being addressed in Melbourne, and the city’s metro capacity is also being increased.

Sydney airport. Planning for a second airport to handle expected increases in jet traffic into Sydney’s global gateway is continuing.

expensive light rail or subways (which cost about $50 million per km).

An attempt to build a monorail system was aborted five years ago, leaving rusting base supports in its wake. Since 2004, the city has built 11 bus rapid transit lines, which now move 350,000 riders daily—still a small fraction of the 20 million who live in its environs.

The country wants to finance as much as $250 billion in new roads, ports, railways, and power plants over the next five years, and the central government plans to increase infrastructure spending by as much as 15 per cent in 2013.

Opportunities, meanwhile, have been attracting PPP investors from Japan, India, South Korea, and the United States, looking at power, water, and rail projects.

Philippines, South Korea A regu la to r y f r amework i s

taking shape in the Philippines to

infrastructure, including a sports/entertainment development that comprises a stadium and arena.

Momentum behind infrastructure funding has dissipated in most European countries—at least for the time being—as the region copes with severe government debt problems by slashing budgets and postponing many infrastructure projects.

The EU is continuing to fund its programme aimed at connecting member states through freight-rail, high-speed passenger rail, motorway, canal, and port terminal projects. Unlike the United States and most Asian nations, the EU stipulates that transport initiatives address energy efficiency and climate change despite potentially higher costs.

High prioritiesRenewable energy and broadband

communications capabil ity also remain high priorities. But it may be difficult to deliver on upfront financing to meet the $1.9 trillion (¤1.5 trillion) investment goals through 2020.

As a barometer of current activity, ‘the size of the market has really shrunk’ for concessions and PPP deals, says an interviewee. It maybe 50 per cent of what it was. Players hope that ‘austerity runs its course and government balance sheets are addressed, but people need to

Patrick PhillipsCEO, Urban Land Institute,Washington

Howard roth Global Real Estate Leader, Ernst & Young

IndonesiaIndonesia’s burgeoning middle-

class and expanding economy—now Southeast Asia’s largest—lead the government to address obvious inf rastructure shortcomings to sustain growth.

Clogged roads and bottlenecks plague Jakarta’s roadways. Like other local governments in emerging markets, Jakarta relies on less-capital-intensive bus rapid transit solutions (which cost about $4 mill ion per km to build) to help relieve congestion as alternatives to

finance badly needed infrastructure improvements through PPP structures that can attract offshore partners.

B a n k r o l l e d b y d o m e s t i c institutions, companies in South Korea are exporting their skill sets ‘in road building, power, and civil engineering’ to regional neighbours. Singapore boasts some of the world’s most advanced ports and airport facilities.

The government has adopted the classic British PPP structure for long-term management agree-ments on hospitals, schools, and other social

get back to work’ for con-ditions to generate enough tax revenues to support infrastructure spending.

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

Jakarta, Indonesia

Melbourne, Australia

Page 5: Construction Industry Review 9 2014

March 03-09, 2014 5

Logistics safety and traffic-related incidents are the main cause of on-site and off-site fatalities in the cement industry. The impact of road safety on business and society is expected to further increase in future.

lOgistiCs

Implementing good practices focused on people, vehicles and processes can avert

traffic- related incidents in the cement industry

competence through defensive driver training.

The ini t iat ives also included upgrading ameni t ies for t ruck drivers at plants, risk-based journey management with route hazard analysis, and multiplication of best practices by improving networking and knowledge sharing as a platform for successful implementation of good practices.

Major objectivesThe major aims of our logistics

safety programme are to: Reduce vehicle and traff ic

The Logistics Safety Programme Address critical issues like

journey risk mapping and driver fatigue to control accidents. The logistics safety programme was deemed necessary in view of several factors such as:

Driving skillsVery large outbound cement

despatches of around 40,000 mt daily (over 2,500 trucks per day) as well as high inbound movement of raw materials like fly ash, slag and coal by trucks which increases the risk of vehicle- and traffic-related accidents.

and encouraging them to take ownership of the driver and vehicle cert i f icat ion by issuing ‘Dr iver Passports’ (to drivers assessed as competent to drive on company’s business) and ‘Vehicle Passports’ (to vehicles which have been inspected and found f i t to be dr iven on company’s business). Over 11,000 drivers and vehicle passports each have been issued by our transporters in 2013.

Quality of manpowerIntensive transporter engagement

was undertaken to sensitize them to improve the condition of vehicles and quality and skills of manpower (drivers). A 30 point vehicle inspection checklist has been introduced for daily inspection of trucks and a defensive driving training drive launched across the plants covering over 6,000 drivers in 2013.

Also, around 2,500 drivers were administered a health check at our plants in 2013. Both these activities are continuing on a regular basis.

Traffic mappingTraffic flow mapping was carried

out in all plants to map the ‘As Is’ and ‘Should Be’ movement of each type of vehicle inside the plant and the route was made unidirectional, to the extent possible.

Positive barricading has been done to segregate pedestrian and

The ACC i s commi t t ed t o eliminating logistics safety-related injuries and fatalities. We believe that this can be achieved by implementing good practices focused on people, vehicles and processes.

W i th th is miss ion, the ACC embarked on its logistics safety journey in early 2012, as one of the key pillars of our Institutionalizing Excellence programme.

Safety initiativesIt launched several initiatives to

improve safety relating to people, vehicles and processes, such as improving on-site traffic management and on-site layout to physically segregate pedestrian and vehicular traffic.

Also, implementat ion of on-site mandatory steps, screening of drivers to ensure they are fit to drive vehicles on company’s business, screening of vehicles for roadworthiness to ensure they are safe to be driven, improving drivers’

related accidents, fatalities and i n j u r i e s t h r o u g h s u s t a i n a b l e improvement of processes (for example, unidirectional traffic flow and segregation of pedestrian and vehicle traffic inside a plant).

Improve vehicle and driver fitness, and getting drivers to change their behaviour and improve their driving skills.

Effective use of technology like RFID (Radio Frequency Identification Device) to control the number of vehicles moving in plant premises at any point of time and GPS to track vehicle movement against various parameters from ‘Gate Out’ to ‘Gate In.’

(The RFID technology has been installed in three of our plants over the past one year, and other plants are also being covered in a phased manner, and the dedicated vehicle fleet of our transporters is also being made GPS enabled in a phased manner.)

A very high driver population which requires constant defensive driving training skills.

Existing plant layouts, especially in plants which are comparatively old and have undergone expansion of capacity, necessitating a greater focus on aspects like segregation of pedestrian and vehicle traffic, achieving unidirectional flow of traffic, and eliminating/reducing reversing of vehicles inside the plants and parking yards.

The logistics safety programme was launched across all plants through two sets of ‘mandatory steps’ (phase 1 comprising 8 steps; phase 2 of 16 steps). The steps were based on a ‘systems’ approach focussing on people, vehicles and processes. The basic objective was to achieve ‘quick wins’ in a short spell of time to motivate the teams to further improve safety standards.

Some major steps taken included engaging our transport contractors

vehicular traffic inside all plants. Mandatory use of PPE by truck drivers and stopping use of mobiles inside the plant is yet another initiative. Also, rear view cameras have been installed

Rajesh Seth at ACC Thondebhavi Cement Works, Karnataka

Verification of vehicle passport- ACC Thondebhavi

State-of- the-art new truck parking yard at ACC’s Chanda works

in all vehicles with obstructed view like dumpers, and hydras operating inside the plant.

Development of truck parking yards with driver facilities like rest rooms, canteen, toilet facilities, and clean drinking water and maintenance facilities is yet another initiative taken to address the issue of driver fatigue. A model state-of-the-art parking yard with concrete surfacing has also been developed at one of the plants in central India.

MoU with transportersA b o v e a l l , w e h a v e a l s o

launched a drive to enter into an MoU with our transporters covering the areas of driver management, vehicle management and journey management. Various other initiatives taken include a seat belt awareness drive and imparting training to truck drivers on a truck simulator. And around 600 drivers have already been trained so far on simulator.

We do realize that our logistics safety journey has just begun, and we still have considerable ground to cover. We are, however, confident that in the months ahead we will continue to sustain the pace of hard work to achieve our goal.

rajesh seth Vice President, Central Logistics Safety &

Traffic, the ACC Ltd

Page 6: Construction Industry Review 9 2014

March 03-09, 2014 6PrOJeCts uPdate

Maha govt mulls to link Pune IT hubs by light rail

Centre explores funding options for Delhi-Jaipur e’way

Maha govt clears 25 new mega projects

worth Rs 9k-cr

A month after the PMO asked the Road Transport & Highways (RTH) Ministry to move a Cabinet note for Delhi-Jaipur Expressway, the ministry is exploring options like real estate development along the stretch to finance it, as land cost alone has trebled on the back of a new law.

The cost of Rs 11,750 crore project which included provision for land acquisition is likely to shoot up by at least Rs 30,000 crore as the land cost has trebled after the new land acquisition law coming into force last month, said a senior Road Ministry official.

“The National Highways Authority of India (NHAI) has informed us that the cost of land alone for 272 km expressway would be about Rs 18,000 crore from the estimated Rs 6,000 crore,” said the official.

The development comes barely a month after the Prime Minister’s

Office asked the RTH Ministry to move a Cabinet note for the project, saying it would be the first such highway to be built by the Central government.

“The Delhi-Jaipur Expressway is one of the announcements of the Prime Minister in November 2013 which has been taken up as a priority project of the government. As on date, there is no expressway built by Central

government and Delhi-Jaipur Expressway would be the first,” said a PMO statement.

The official said the ministry is exploring ways for f inancing the project which may include development of real estate along the stretch or building it around the existing highway.

The ministry has sought advice on possible financing modes from stakeholder states -- Delhi, Rajasthan

The Maharashtra government has 25 new mega projects with an investment of Rs 9,725 crore for 2013-2014. “A provision of Rs 2,500 crore has been proposed for the implementat ion of the industrial incentives scheme,” said Ajit Pawar, Deputy CM (Finance), while presenting the state’s interim budget.

Bes ides, 2 ,964 hectares of land has been acquired for the Rs 2,581-crore Mihan (Multi-model International Passenger & Cargo Hub Airport at Nagpur) project and the state has given Rs 478.89 crore to MADC (Maharashtra Airport Development Company) for land acquisition.

“IT companies such as TCS, Infosys, Tech Mahindra and Wipro

and Haryana, before proceeding on the project, the official added.

An expressway is a controlled-access highway designed exclusively for high-speed traffic.

The Road Ministry has estimated the project cost for the Delhi-Jaipur Expressway at Rs 11,750 crore, including land acquisition and pre-construction activities.

RTH Minister Oscar Fernandes had earlier said that unless a major portion of the land is handed over in the construction of the proposed Delhi-Jaipur expressway, financial institutions could shy away from funding the project.

“Delhi-Jaipur Expressway, the work on this project is on, but unless 60 per cent of the land is not handed over, the work cannot start because the financial institution will not lend money,” he had said.

The starting point in Delhi for the expressway, in all probability, would be the Indira Gandhi International Airport.

The Ministry of Road Transport & Highways, in 2006-07, planned to construct 10 expressways but progress could be made only in two, namely Delhi-Jaipur and Delhi-Chandigarh.

The government had accorded approval for building 1,000 km of expressways in the country in October 2011.

It will build seven expressways under the Nat iona l H ighways Development Project VI.

The remaining f ive projects include 400 km Vadodara-Mumbai, 66 km Delhi-Meerut, Delhi-Agra, 277 km Bengaluru-Chennai and 334 km Kolkata-Dhanbad.

have started construction at Mihan. Cipla pharmaceutical company has completed construction and is about to start commercial production...an outlay of Rs 250 crore is provided for land acquisition and rehabilitation,” said Pawar.

Pawar said Metro railway project proposals for Pune and Nagpur have been sent to the Central government for approval. For Pune, the Mahanagar Metro Rail Project has Pimpri-Chinchvad to Swargate as Route-1 and Vanaz to Ramwadi as Route-2 in the first phase.

The expected costs of these routes are Rs 6,960 crore and Rs 3,223 crore, respectively. In addition, a 15 km extension from Pimpri to Nigdi and Swargate to Katraj has also been approved in-principle.

India will conduct a dry run study next month for multi-nation and multi-modal transport corridor, a move aimed at reducing cargo transportation time and transactions cost between India, Central Asia and Russia.

The International North-South Transport Corridor (lNSTC) is a multi-modal network which would connect India to Central Asia through Iran. The announcement figured in the meeting of the 3rd India-Azerbaijan Inter Governmental Commission.

“The Indian Side informed the Commission that India is conducting a dry run study in March on the route of Nhava

S h e v a ( M u m b a i ) - B a n d a r Abbas(Iran)-Tehran-Bandar Anzali (Iran)-Astrakhan (Russia) through Federation of Freight Forwarders of India (FFFAI), an Indian organization,” an official statement said.

The multi-modal transport corridor will pass through Astara in Azerbaijain. A dry run or a practice run is a testing process where the consequences of a possib le mal funct ion are intentionally mitigated. “Completion of the corridor will lead to mutually beneficial connectivity between the two regions,” the statement said quot ing Minister of State for Commerce & Industry E M S Natchiappan.

India to conduct dry run on multi-nation

transport corridor

The Maharashtra government is planning to connect the prominent IT hubs of Hinjewadi and Talawade near Pune by a light rail system, said Chief Minister Prithviraj Chavan.

“We have sanctioned two corridors for the Metro in Pune, but since Metro is not feasible here, we are looking at a light rail,” he said, adding that primary discussions for the project were underway. The light rail will connect Hinjewadi with Talawade, as the city becomes attractive for industries like auto, engineering and IT, he added. Chavan, who was speaking at the

launch of a new campus of French IT major Capgemini at Talawade, said that the state received 37 per cent of the total FDI coming to India, and Nagpur, Aurangabad and Nashik were the upcoming industry destinations.

“The multimodal international cargo hub and airport (Mihan) is coming up at Nagpur. TCS has come, Infosys is doing a ground-breaking there in the next few days, and Boeing is now at take-off stage,” he said referring to the MRO facility Boeing is setting up.

There were huge investments happening at the National Investment

& Manufacturing Zones (Nimz) in Shendra-Bidkin region of Aurangabad with Japanese funding, while the Delhi Mumbai Industrial Corridor also passes through this belt.

“We are focusing on developing infrastructure in Mumbai and have built a new airport terminal. A third underground Metro is coming up between Colaba and Santracruz,” said Chavan, adding that he wanted to develop one city airport in each of the state’s 33 districts, and land acquisition was underway at Chakan for a dedicated freight corridor.

FORM IVThe following statement about ownership and other particulars relating

to Construction Industry Review is published as required under Section 19 D sub-section (b) of the Press and Registration of Book Act of 1867 as modified in 1958.

1. Place of Publication : Mumbai

2. Periodicity of its Publication : Weekly

3. Editor, Publisher & Printer’s Name : Bina Verma

4. Nationality : Indian

5. Address (Corporate office) : Feltham House, 1st Floor 10, J. N. Heredia Marg, Ballard Estate, Mumbai - 400 001.

6. Name & addresses of The owner is a Private Limited individuals who own the Company called Asian Industry newspaper and partners or & Information Services Private shareholders holding more Limited having office at than one per cent of the 1st Floor, Feltham House, total capital. 10, J.N. Heredia Marg, Ballard Estate, Mumbai - 400 001.

Shareholder of the Company : Binani Metals LimitedAddress : 37/2 Chinar Park, New Town,

Rajarhat Main Road, P.O. Hatiara, North 24 Parganas, Kolkata - 700157.

I, Bina Verma, hereby declare that the particulars given above are true to the best of my knowledge and belief.

For Asian Industry & Information Services Private Limited

Sd/-Date : 1st March 2014 Bina VermaPlace : Mumbai Editor

Page 7: Construction Industry Review 9 2014

March 03-09, 2014 7in PersOn

scaffolding & form work - ad -10 02 14 .indd 2 2/10/2014 9:37:00 PM

Pune-based Fine Equipment is a well-known name in the field of selling demolition and construction equipment. It is also one of the India’s largest selling hydraulic rock breakers and has established itself in other demolition and construction equipment. The company specializes in rock breakers, quick coupler, light construction machines, excavator attachment crushers, crushing & screening plant, grapple series, piping kit and other attachments. It provides all solutions related to excavator attachment and construction equipment at one place. It has carved a niche for itself as the highest value for money in the rock breaker and attachments market.

Fine products are designed and manufactured using advanced technologies. It has one of the largest installation base of rock-breakers in India and growing worldwide. The advanced features and modern technology used in the products give a unique identity.

How would you estimate the demol i t ion and construct ion equipment market in the country?

The demolition market is stil l in the nascent stages. We are still constructing and have a lot to build.

How successful have you been in bridging the gap between high-price maintenance cost products and low-price service products?

We have been able to do that quite successfully. We are trying very hard to provide good quality and reasonable pricing coupled with excellent after-sales service support.

In these times of economic slowdown and intensifying inflation, how do you manage to offer products at moderate cost?

We are currently absorbing the costs with a hope that the things will change. It is all a matter of time.

What efforts have gone into making the company a name to reckon with in the construction equipment industry?

We have consistently tried to improvise on the product features and quality. We have worked hard in training the manpower and kept customer as our main focus.

How did you acquire the top position in selling hydraulic rock breakers?

It is a combination of many things but mainly the manpower. Right pricing for the product and after -sales support are the key factors. Fotunately, right time of entry into the market also helped us

What kind of choices and needs do you provide for clients as well as contractors when it comes to choosing equipment?

We offer various models in similar category. Customers can choose higher output or power models with some additional cost. Customers can also choose for service contracts at a very reasonable cost.

What are some of the features of advanced technology employed in design and manufacture that make your products matchless?

Although there are many, the most important is the fact that the products are tested, modified and improvised according to the Indian market conditions and usage.

We use Hardox plates, Extra strengthening plates, Blank firing protection etc .which are a must in Indian conditions.

Tell us about the installation base of rock breakers in India?

Approximately 3,000+units

How has your dealer network reinforced the promotion of company products in far-off regions of the country?

The dealers are equipped with complete 3S facilities. They are trained by us continuously and are surely helping in product promotion.

Would you like to share the up-to-date list of your equipment products?

Rock breaker, quick coupler, grapple, crusher, plate compactor, concrete cutter, tamping rammer, power trowel, vibratory screed and other light construction equipment.

Which are some of the projects where the company equipment has been implemented?

The Panvel-Ratnagiri pipeline project by Punj Lloyd, part of Nashik- Mumbai highway done by Sadbhjav

Engineering, grade separator in Nigdi (Pune) done by J Kumar, and many more...

What is the variety of specialized attachments and components you provide with demolition?

Rock breaker, quick coupler, grapple series, crusher.

When it comes to demolition and construction of bigger buildings or projects, how capable is your equipment to handle the task?

They are absolutely capable of handling any kind or size of tasks.

What are the many steps one needs to take before demolition can actually begin?

Study of rock strata, study of disposal of material, study of safety

“We are absolutely capable of handling any kind or size of tasks,” states Neeraj Gaur, Managing Director, Fine Equipment (India) Pvt Ltd in this interview with Dilip Phansalkar

What do you know about a new method of demol i t ion us ing computer-controlled hydraulic jacks?

It has some specific usage and may be good in specific applications.

Demolitions can be disastrous. What are the greatest dangers you have faced?

None till now. Thank God for that!

What do you have to say about ‘Green’ approach – deconstruction instead of demolition?

It all depends on the project or the need. It is always better to approach the Green way.

of material, buildings and life, size of job, duration of job, kind of demolition (primary, secondary, building, etc.)

Screen Crusher

Fine Grapple

Jaw Crusher

‘Demolition market is still in nascent stage’

Page 8: Construction Industry Review 9 2014

March 03-09, 2014 8inFrastruCture

Cabinet nod to convert 7,200 km state roads to highways

Centre invites Nordic, Central European companies

Plastic waste, fly ash for building roads in Rajasthan

NH8-RTR flyover stretch to be widened

Railways to earn `5,000 cr by monetizing land

Inviting companies from Nordic and Central Europe to invest in the infrastructure sector in India, Dr E M Sudarsana Natchiappan, Minister of State for Commerce & Industry, Government of India, stated that conducive policy measures had now been put in place to promote the growth of this sector.

The minister was addressing a conference on promoting economic engagement between India and Central /Nordic Region of Europe organized by the Confederation of Indian Industry (CII) in New Delhi.

In his address, the Minister stated that the new industrial corridors and the National Manufacturing Zones (NMZs) that were being implemented in the country also provided a whole host of opportunities for businesses

In an innovative way to save environment, the Rajasthan Public

from these regions of Europe to invest. According to Natchiappan, the

government was also seeking to improve facilities at the various ports in India to improve access to the country. Another area of opportunity which the minister highlighted was agriculture and allied sectors.

Deep Kapuria, Chairman, CII Regional Committee on Central Europe and Chairman, Hi-Tech Group, observed that the growth in bilateral trade between India and Central Europe has been robust despite global economic slowdown. He felt that there was enormous potential for collaboration in areas such as capital goods, ICT, green technologies, among others.

Chandrasekhar Kakal, Chairman, CII Regional Committee on Nordics

Works Department (PWD) Minister Yunus Khan has approved a project

The closing down of the Gurgaon toll plaza has led to massive traffic congestion on Outer Ring Road for which the public works department and traffic police have decided to take immediate remedial measures. Residents on the stretch between NH-8 and Rao Tula Ram flyover will have to contend with a narrower service lane for at least the next few months till a long term plan is put in place.

After a detailed inspection of the stretch, PWD has decided to expand the road between NH-8 and the RTR flyover. Dinesh Kumar, engineer-in-chief, said, “There has been a sudden increase in traffic due to closure of the toll plaza. We have identified the problem points and will be undertaking road widening along these stretches. Road widening will also be carried out in NH8 and on the

During the next financial year, the Indian Railways plans to generate about Rs 5,000 crore by monetizing its land reserves. The initiative, led by the Rail Land Development Authority (RLDA), involves five projects across the country.

So far this financial year, RLDA has generated Rs 937 crore by way of public-private partnerships. It expects to garner Rs 1,000 crore by the end of 2013-14. For RLDA, a residential project in Sarai Rohilla was one of the first big-ticket projects to take off this year.

The project could fetch the railways as much as Rs 1,650 crore. Here, of the 15.27 hectares, Parsvnath Developers will build residential and shopping complexes, etc, on about 11 hectares. For the remaining land, the developer will build 750 quarters for the railways. For the 11-acre project, Callison LLC of the US is the architect, while Red Fort Capital is the foreign investor.

Parsvnath will lease the land for 99 years. Other resident ial and commercial projects also are expected to come up in Ashok Vihar (Delhi), Kurla and Mahalaxmi (Mumbai), Nirala Nagar (Kanpur), Aishbagh (Lucknow), etc.

and Senior Vice President & Executive Council Member, Infosys Ltd, stated that bilateral trade between India and the Nordic region, which currently stood at $6.3 billion, was below potential. He stated that sectors such as steel, pulp and paper, auto components, pharmaceuticals, IT & ITES, biomass, trade and tourism among others held enormous potential for growth.

Speaking at the session on Enhancing Economic Relations between India and Central Europe and Nordic Region, Maurizio Cillini, Head of Trade and Economic Affairs, Delegation of EU to India, highlighted the importance of India-EU FTA. He said that the FTA would provide market access to around 500 million people of Europe.

to build roads by using plastic waste and fly ash in Jaipur and Dausa districts.

A total of 24 roads -- 19 in Jaipur and 5 in Dausa -- would be built using plastic waste and fly ash under the project approved by the minister. Of the 74 km-long road, plastic waste would be used in the construction of 62 km.

Fly ash would be used in the foundation of roads, Khan said. The minister said the use of plastic waste and fly ash is an innovation in road construction to help save environment from pollution and bring down cost as the expenses on tar and other conventional materials would be brought down by 10 per cent.

stretch from NH-8 towards Dhaula Kuan to ease traffic pressure.”

Calling them short-term measures, Kumar said the widening of the road between NH-8 and the RTR flyover in front of the Research & Referral Hospital, would start in the next two weeks. “We will try not to affect the service lane on one side of the road. It will have to be narrowed down but will not be removed completely. Our focus will be on the other side of the road where a service lane does not exist. Simultaneously, some improvements will also be carried out on NH-8,” he said.

For the t ime being, the RTR flyover will not be touched. PWD is in the stage of appointing a project consultant for it only after which construction work on it will start. The tender for road widening work, will be issued and work will start shortly.

“Even if we manage to award two or three projects this year, we will get about Rs 5,000-6,000 crore. These are big projects and tenders for the project in Ashok Vihar, Delhi, and Bandra east, Mumbai, will be floated by next month,” said Y P Singh, Vice Chairman, RLDA.

The structure of each project will be based on the location and feasibility. All of these will be public-private partnerships, with the railways leasing the land to earn revenue. “We can explore the option of revenue-sharing, but it depends on the kind of project it is,” said Singh.

An i ruddh Waha l , Managing Director, Occupier Services, said, “Railways should have considered engaging as a joint developer, but given the structure of the government, it doesn’t have the sophistication to engage as an active partner.

“The model has various long-term impacts. Though Indian Railways leases land for 99 years, once the land is sold to many people, as is the case in residential complexes, it becomes difficult to get it back. From a monetary perspective, it’s a good deal but you lose effective ownership, which could be a challenge in the future.”

Days before the Lok Sabha poll dates are to be announced, the government is likely to notify the revised regional plan for NCR (2021) which allows tourism activities in ecologically sensitive zones and permits constructions in these areas beyond the current 0.5 per cent cap — moves that environmentalists claim will be disastrous for green belts such as the Aravalis.

Urban Development Minister Kamal Nath, who chairs the NCR Planning Board (NCRPB), has approved minutes of the last board meeting in which it was decided to allow tourism activities in nature conservat ion zones (NCZ) and construction beyond current limit, albeit with the permission of the Union environment ministry.

Construction cap in NCR green zones

to be easedThe Centre has decided to convert

7,200 km of states roads into national highways for which the Cabinet Committee on Economic Affairs (CCEA) has given its nod. With this the total length of state highways converted into national highways during the UPA regime would reach about 17,000 km. About 10,000 km of state highways were declared national highways in the past 10 years.

These roads are spread across states including Andhra Pradesh, Madhya Pradesh, Bihar and Uttar Pradesh, besides bordering areas

like Leh and Ladakh regions. The present length of national highways is about 80,000 km.

As per the sources there would be sufficient funds to take up improvement on new national highways. Keeping in view the estimated allocations likely to be made available for development of non-NHDP national highways based on the previous years’ trends, it is anticipated that there would be adequate funds available for taking up improvement works on these national highways.

T h e N a t i o n a l H i g h w a y s Development Project (NHDP) is the

flagship road building programme of the Ministry of Road Transport & Highways, currently running into seven phases. It added that there would also be adequate funds available for taking up improvement of the remaining existing NH network of 21,271 km, not covered under any programme so far.

The statement said expansion of the NH network is a continuous process and declaration of a new NH is taken up from time to time, depending upon requirement of connectivity, inter-se priority and availability of funds.

Page 9: Construction Industry Review 9 2014

March 03-09, 2014 9

P Ravishankar, CEO (left) and Dr V Sumantran, Chairman, Ashok Leyland John Deere Construction Equipment Co at the launch of new 435E BHL in Chennai

eQuiPment

VDMA construction equipment & machinery industry optimistic for 2014

Compared to the previous year, turnover in the German construction equipment and building material m a c h i n e r y i n d u s t r y d e c l i n e d slightly in 2013 by 6 per cent to the current figure of 11.7 billion euro. Nevertheless, the industry is entering 2014 in an optimistic mood. Incoming orders for construction equipment are currently up by 7 per cent.

“We can look back on a satisfactory business year overall; given all the heterogeneity of our sector”, said Johann Sailer, Chairman of the VDMA’s Construction Equipment & Bui ld ing Mater ia l Machinery Association, commenting on the resul t of the economic survey at h is associat ion’s execut ive board meeting in mid-February in Frankfurt.

Despite a continual improvement in the course of the year, at the end of the day the construction equipment

picture for construction equipment manufacturers, with the exception of civil and structural engineering machines.

In Europe, France and Switzerland as well as Scandinavia impressed. Business in the Middle East and North America continued to develop well. The Bric nations, and also the hope-bearing markets such as South Africa or Indonesia, generated too few impulses.

In 2014 the manufacturers expect an improvement here. The same applies for the European market, where in Southern Europe the economic recession is now expected to have finally bottomed out. The indications for 2014 are generally of an upward trend.

Exchange rates impact As far as the building materials

m a c h i n e m a n u f a c t u r e r s a r e concerned, it is Russia, the Middle

Ashok Ley land John Deere Construction Equipment Company Pvt Ltd, a joint venture between Ashok Leyland and John Deere, unveiled the 435E Backhoe Loader (BHL) in Chennai recently.

The current economic conditions demand even greater focus on eff iciency and operating costs. Especially focused on these needs, Leyland Deere has newly-launched 435E BHL, specifically targeted at first-time users, offers 10 per cent improvement in fuel cost.

Built on the rugged and durable 435 BHL platform, Leyland Deere’s new 435E BHL offers reduction in cost of operations and delivers savings up to 20 per cent of the EMI value, giving the product an important competitive edge.

The 435E BHL is backed by best-in-class after-sales support with a service engineer-to-machine

ratio of 1:8, rapid response mobile service vans and a dedicated call centre. This enables Leyland Deere to offer Indian customers an industry-best Mean-time to Restore (MTTR), maximizing availability of the machine and earnings for customers.

The 435E delivers superior value by addressing a customer’s core needs of higher fuel eff iciency, superior reliability and durability, greater machine up time and lower operating costs. Its rugged structure ensures performance under the most demanding operating conditions.

Dr V Sumantran, Chairman, Ashok Leyland John Deere Construction Equipment Co, said, “There is a huge scope for infrastructure development in India and the long-term growth story of this sector is still very much intact. With the ‘E’ standing for ‘Efficiency’, the 435E BHL is best positioned to cater to

new entrepreneurs in infrastructure and construction industries.

“The new ‘435E’ BHL will join its sibling -- the 435 BHL, and together, Leyland Deere will offer machines to cover the spectrum – Sol id Performance with the 435 and Solid Efficiency with the 435E. Backed by class-leading service levels, we are confident that our new product will set new standards of efficiency and customer service and offer great return on investment to our customers.”

P Ravishankar, CEO, Ashok Leyland John Deere Construction Equipment Co, said, “We have made significant progress in product development and channel growth with 155+ touch points, and have acquired over 1,000 delighted customers in our two years of operations. The 435E BHL is a winning proposition, especially for first time buyers.

Johann Sailer, Chairman, VDMA's Construction Equipment and Building Material Machinery Association

industry still had to contend with a moderate sales decline of 3 per cent to a current total of 7.7 billion euro. In contrast, in the building material machinery sector, the turnover clearly declined by a total of 13 per cent to the current level of four billion euro.

Less demand from Bric In view of the splendid situation

in the domest ic cons t ruc t ion indus t r y, the German marke t p a i n t e d a s u r p r i s i n g l y w e a k

East and countries of South-East Asia in particular where business is currently going well. But this is not sufficient at the moment to compensate for the declines in other regions.

In this connection there is a halt to investment for sectors with excess capacities, which also include the cement industry. In several threshold countries projects have been put on hold also due to the worsening

in the exchange rate, because they are simply becoming too expensive for local investors. “Nevertheless, in 2013 some really good orders were also received”, said Sailer. But due to the longer processing times compared to standard machines, they will not make an impression in terms of sales until later during this year.

“There is currently a product renewal process like never before,” Sailer pointed out.

Because various transit ional periods are also used in different ways by the manufacturers, the market is responding correspondingly. Fo r t h e c u s t o m e r s t h e n e w machines produced at extremely high development costs did not

embargo -- very good market for our companies.

“We know about the good reputation, which our machinery and plant enjoy there”, said Sailer. “The customers are there, the demand is there and also the desire and will of the German industry to deliver. The problem is the banks. Currently it is simply not possible to get any capital investment.”

Reliable energy policy T h e G e r m a n c o n s t r u c t i o n

equipment and building material machinery industry is calling on the new federal government to once again earmark the revenue from truck and potential private vehicle toll charges for the development and renewal of the infrastructure. “Beyond that we need greater reliability in energy policy”, says Sailer.

Particularly with regards to the wind and maritime energy theme, an area where many building machinery manufacturers are also involved and invest ing new technology, clear decisions by the legislators and cont inu i ty a re abso lu te ly indispensable, he said.

Cat 3406C launched Caterpi l lar India announced

the launch of its Industrial Diesel Engine that provides customers in lesser regulated countries in the Asia Pacific region, including India, with an economical, fuel efficient and dependable solution.

The Cat 3406C is designed and built for Industrial, Electric power and Petroleum engine applications with a proven core engine design that assures reliability, quiet operation, and many hours of productive life.

In i t ia l ly int roduced in 1974, t h e C a t 3 4 0 6 C h a s undergone several transformations over the earlier vers ions of e n g i n e s . The engine i s e a s y t o i n s t a l l , operate and

maintain featuring many shared components from the original engine design.

One of the benefits of the engine is that fuel consumption is optimized to match operating cycles of a wide range of equipment and applications while maintaining low operating costs. The 3406C incorporates many other features to enhance performance and safety and reduce lifecycle costs. The mechanically-governed 3406C engine will be available in the power range 218 kW (292 bhp) to 365 kW

(490 bhp) for industrial and petroleum

applications.

Leyland Deere launches 435E Backhoe Loader

EU emissions directive A top ic o f cons tan t wo r r y

for the construction equipment manufacturers is the implementation of the EU emissions directive. In some companies this issue has tied up R+D capacities by almost 100 per cent.

As a result, innovations in other sectors have fallen by the wayside. A further challenge is the recent new complexity, that is, the diversity of the products offered per manufacturer.

automatically mean greater benefit or product improvement. To that extent, it was difficult, he said, to convince them to pay a higher price for the machines. Many manufacturers have thus suffered.

More commitment in Iran In the wake of the thaw in the

po l i t i ca l c l imate , the German construction equipment and building material machines industry would like to show more commitment again in Iran, a giant -- and prior to the

in EUR bn, source: VDMA February 20142 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3

16

14

12

10

8

6

4

2

0

Building Material MachineryConstruction Equipment

Industry Turnover of German ManufacturersLevel of previous year could not be kept in 2013

Economic Situation of the IndustryDays of extreme volatility are over

200

180

160

140

120

100

80

602004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Seasonally adjusted, smoothed line, index 2010=100 source: VDMA February 2014

Incoming orders

Sales

Page 10: Construction Industry Review 9 2014

March 03-09, 2014 10

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: [email protected], [email protected]

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.

real estate

Pune – economic powerhouse The city’s economy is very much dependent

on foreign business, and opening the city up to global business travel

will assuredly bode well for its various industries

With possession-linked plans, the benefit to buyers must always

be seen in the light of multiple risks

with the number of people migrating into the city from all over the country increasing every year. This influx has required major infrastructure upgradation on all fronts, including road connectivity, parking facilities, public transport and electricity and water supply.

Accordingly, the Government has laid out a very ambitious roadmap for Pune’s infrastructure in the Pune Development Plan 2041. One of the most important aspects of this plan is a multi-faceted transport which envisages a considerably enhanced road network, a metro system as well as a number of new bridges, flyovers, subways and skywalks.

This is necessary, as it is very evident that Pune’s growth is not a temporary phenomenon -- the city will expand exponentially in years to come, both geographically and in scope. If Pune’s development authorities do not take a realistic look at what the next two to three decades hold in store, the city will eventually fail to maintain this growth and begin to decay.

There are good reasons why Pune has emerged as one of the most aspired-for residential destinations in India today. The fact that it is so well connected to Mumbai is only the tip of the iceberg.

Pune is an economic powerhouse in its own right, being home to a wealth of multinational companies and industries. These organizations have ensured that Pune has emerged as one of the most important employment centres in the country.

Unparalleled growthNeedless to say, employment

drives demand for Pune’s pace of urban growth has been unparalleled,

AccessibilityOne of the most important aspects

that need to be considered is the maintenance and enhancement of accessibility. This includes internal accessibility between Pune’s various residential and commercial nodes, as well as approachability from other key cities.

Boosting accessibility includes the construction of new roads, widening of existing roads which tend to bottleneck, providing flyovers and subways to ease traffic congestion and more efficient and reliable public transport. As far as the proposed Pune Metro is concerned, there are serious questions about how effective it would be to ease the city’s rapidly increasing accessibility issues.

On the other hand, the approval of the 90-meter wide Ring Road which will connect the PMC and PCMC is definitely a reason to cheer. Likewise, the approval of Pune’s new international airport is definitely a step in the right direction.

The city’s economy is very much

dependent on foreign business, and opening the city up to global business travel will assuredly bode well for its various industries.

Horizontal growthBut is accessibility the only aspect

that the city’s development plan should focus on? Is more efficient transport really all it takes to keep a city like this viable over the long haul? Thanks to the fact that Pune has a lot of potential for horizontal urban growth, the city is constantly adding new areas to its borders.

But at the same time, the standard of living within the inner city is on a visible decline. Holistic urban growth is not just about expansion, but also about the constant improvement of existing central areas.

Also, it is important for Pune to maintain a healthy balance of housing types across various affordability bands. As we face the prospect of ever-increasing urban density in the city, both the planning authorities and Pune’s real estate developers must remember that it takes more than just ‘premium’ and ‘luxury’ housing to maintain and grow a city. Whenever an imbalance of housing for all income groups occurs, the economic viability of a city begins to degrade.

A city like Pune is sustained a huge cross-section of service streams, ranging from blue-collar workers on factory shop floors and in retail warehouses to white-collar business

executives and CEOs. The economic relationship between these classes is inalienable and symbiotic -- neither can exist without the other.

Affordable housingEach individual from all income

streams has a family that needs to be housed in safety and relative comfort. This means that the city will, at all times, have to produce housing that is affordable from the lowest to the highest income streams.

The latest regulations require a minimum of 20 per cent housing in large townships to be reserved for the economically weaker sections. However, despite the fact that townships are proliferating in Pune, such a reservation will not suffice to meet the needs of the city’s less prosperous denizens in the future. Meanwhile, we are looking at a scenario wherein Pune’s developers are increasingly focusing on high-priced mid-income and premium housing projects.

Affordable housing requires special incentives to developers, and these must necessarily come from the government. However, it also requires a consensus of collective consciousness among a city’s developers themselves. There has to be a point at which one is willing to look less at the bottom line and more at what the city really needs in order to continue to grow and prosper.

Possession-linked vs construction-linked plans

The current market scenario clearly reflects the market mood. Developers are extending many offers to attract demand, clearly indicating that buyers are in wait and watch mode. Various press articles have been suggesting price correction for over last three quarters, but we have not seen any serious correction in prices (with a few exceptions in some markets).

Developers are proffering bundled offers instead of negotiating prices. One such offer is the possession-

‘off-plan’ and this can be approved by the local regulator, but only on the basis of a special request and the overall credibility of the developer. Such checks are missing in India. With possession-linked plans, the benefit to buyers must always be seen in the light of multiple risks.

Critical safeguards Three critical safeguards that

buyers must put in place before investing into such offers are:

Ensuring that the developer does not have two different pricing structures (i.e. one for construction-linked and another for possession-linked plans). If there are two such different pricing offers, then the developer has already built in the cost of funding that is applicable for a possession-linked plan. This effectively means that the buyer is

linked payment plan, in which the buyer pays 20-25 per cent of the apartment cost in advance and the rest on possession.

Benefits and risks A critical point here is delivery risk

and exposure of credit to developer. Buyers see immense benefits in paying just 20-25 per cent to the developer while booking and paying the balance amount on possession.

Th is e rad icates the r isk o f developer not completing the project on time, and of the developer going bankrupt and not having to pay for a product that is not yet ready.

We are seeing buyers favouring this option against the construction-linked plans. In the developed world, builders have to complete the product before they can sell to their buyer. Selling before completion is called

arvind Jain Managing Director, Pride Group

indirectly funding the developer, and that is not an attractive scenario.

Establishing that the developer has all necessary approvals in place. Buyers funding the developers without approvals is like any another non-approved deposit collection scheme that can catch the eye of financial regulators like the Sebi and the RBI.

Buyers need to use caut ion while investing in any project where approvals are yet to come and there is a assured-return type of structure. These are very risky structures and have high chances of default and delay in terms of payments.

Reading the fine print. Laypeople generally do not read those critical few lines at the end of the document before investing, but there is a huge r isk of los ing money by such oversight. For instance, the connotations of terms such as ‘Act of God’ as well as other obscure verbiage in the terms and conditions present a risk to buyers that do not understand them.

Any condition that de-risks or absolves the developer can be perceived as a risk of losing the 20-25 per cent of the initial investment. It is therefore prudent for the buyer to review all points mentioned in such an agreement.

The developer will cancel the sale agreement and basis the agreement has the full right to forfeit the initial payment of the buyer. Reputed developers only forfeit part of the

initial amount, not the full amount. This is normally captured in the options agreement that the buyer will sign with the developer.

Limited risks Many t imes, buyers go fo r

const ruct ion- l inked p lans and developers draw 90 per cent of the amount from the bank providing home loan. Delay by the developer in terms of delivering the finished product can sometimes extend to two to five years or more, and for various reasons. Buyers continue to bear the interest cost for the amount that the bank has funded the developer with, but cannot enjoy the finished product.

In a possession-linked plan, the risk involved is limited to the initial capital of 20-25 per cent that a buyer pays to book the apartment. Buyers clearly stand to gain from a possession-linked plan as it reduces their risk and ensures that they do not have to bear the cost of funding the developer with multiple open risks.

Because of various potential policy changes after the elections, these plans may not be available very long. It is therefore a very good time for buyers to invest in projects that offer possession-linked plans.

Om ahuja CEO, Residential Services, Jones Lang LaSalle India

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March 03-09, 2014 12

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news

CASE launches 851 EX backhoe loader in India

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/-

years its resources on the Pithampur manufacturing operations, dedicated to developing and producing its machines for the construct ion industry.

Today, the facility implements w o r l d - c l a s s m a n u f a c t u r i n g methodologies to achieve the high levels of quality and efficiency of CNH Industrial’s facilities around the world. It produces market leading equipment, such as its range of vibratory soil compactors that holds the No 1 position in India and was recently expanded with the addition of the new DX1107 model.

The continued investments in product development and of the production line at Pithampur are testament to CASE’s dedicated efforts towards achieving their long term goal

CASE Construction Equipment, a brand of CNH Industrial, announced the fu l l ava i lab i l i ty o f new 96 horsepower 851 EX backhoe loaders, the most powerful backhoe loader in India.

Richard Tobin, CEO of CNH Industrial, officially handed over the keys of the first full production unit of the new 851 EX backhoe loader to a key contractor Nabada Johari at a ceremony held at the CASE India plant in Pithampur, Madhya Pradesh, where it was designed and manufactured.

“India and the Asia Pacific Region are key markets for CNH Industrial, and we have maintained significant investments in order to provide the best products and support to our customers in the region. Our investments have also enabled us to develop the new EX Series backhoes at the Pithampur plant to meet the specific requirements of construction businesses,” said Tobin.

The new CASE 851 EX Series backhoe loader, which was previewed at the Excon 2013 show in November 2013 at Bengaluru, is the most powerful model available in the Indian market and fits at the top of the three-

model range that also includes the 770 EX and 770 EX Magnum.

The re l iable and proven 96 horsepower 8000 engine, developed by CASE sister partner FPT Industrial, delivers a powerful performance and fast response time, enabling operators to maximize productivity. This coupled with the exceptional fuel savings of up to 13 per cent resulting from the air aftercooler system, makes the 8000 series the most fuel-efficient engine in the market.

The load sensing hydraulic system delivers maximum power where it is needed, while the simultaneous operation of the hydraulic receivers m a x i m i z e s p r o d u c t i v i t y a n d minimizes fuel consumption. With the hydraulically shifted clutches the operator can change direction and travel speed on the go. The control valves deliver smooth speed and direction shifts, resulting in smooth and accurate operation.

CASE is one of the leading backhoe loader manufacturers with over 600,000 units sold. In India, it is a major player in this segment leveraging its expertise and strong local manufacturing capabilities.

The company has focused over the

eVentsMarch 13-15, 2014

Concrete Show – 2014Concrete Material & Machinery, Mumbai Contact: UBM India, Unit No. 1&2, B-Wing 5th floor, Times Square, Andheri-Kurla Rd, Marol, Andheri (E), Mumbai - 59.

Phone: +91-22-61727272

Fax: +91-22-61727273

[email protected]

www.ubmindia.in

March 20-22, 2014International Elevator & Escalator ExpoBombay Convention & Exhibition Centre, Mumbai The event provides an exclusive platform to get an insight into the market, trends and technologies that drive the elevator and escalator industry. The forum, apart from fostering thought leading insights from the stalwarts of the industry, also dwells extensively on leading edge technological advancements to the most contemporary design trends, safety standards, environment compliance codes and regulations.

Contact: Virgo Communications & Exhibitions Pvt Ltd Virgo House, 250 Amarjyoti Layout,

Domlur Extension, Bengaluru

Tel: +(91)-(80)-25357028/41493996/41493997

Fax: +(91)-(80)-25357028

Contact person : G. Raghu

Mob: +91-9845095803

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

Majority property brokers in Dubai are Indians, Pakistanis

As many as 676 real estate brokers from India and Pakistan are operating in Dubai out of a total 2,238 in the Gulf emirate. The UAE nationals made up the largest percentage of the city’s property brokers and there was one woman for almost every five men working in the sector, said the Dubai Land Department (DLD).

There are 336 Indians and 340 Pakistanis operating as real estate

brokers in Dubai while the number of Br i t ish property dealers are said to be 177. There were 134 Egyptian brokers registered with other nations represented, including the Philippines, Iran, Russia and Uzbekistan.

“Brokers in Dubai are reassured by the legislation and laws that exist to guarantee the rights of all dealers in the market,” said Yousif Al

Hashimi, Deputy Chief Executive of the Real Estate Regulatory Agency, the regulatory arm of DLD.

The report showed that there were 468 women registered to conduct property transactions in Dubai last year, compared to 1,770 men. The figures equate to a female share of approximately 21 per cent, or one woman for every five men.

(L-R): Nabada Johar from Silchar; Richard Tobin, CEO; Derek Neilson, Chief Manufacturing Officer, and Stefano Pampalone, COO (APAC), CNH Industrial

of optimizing these operations for the domestic and global construction equipment needs.

CASE construction equipment sells and supports a full l ine of construction equipment around the

world, including the loader/backhoes, excavators, motor graders, wheel loaders, vibratory compaction rollers, crawler dozers, skid steers, compact track loaders and rough-terrain forklifts.