All about the construction industry

1. August 11-17, 2014 1
An MMR, Braj Binani Group Publication Volume 3 l Issue No 32 l August 11 - 17, 2014 l Price: Rs 100
RBI makes provision for
long-term infra refinancing loans
The Reserve Bank of India (RBI)
in its third bi-monthly monetary policy
statement for 2014-15 kept the repo
rate unchanged at 8 per cent. The
reverse repo rate was kept unchanged
at 7 per cent and Cash Reserve Ratio
(CRR) was maintained at 4 per cent.
The SLR was cut by 50 bps to 22 per
cent.
“The RBI won’t hold rates any longer
than necessary. We will have room to
cut rates if disinflation continues,” said
RBI Governor Raghuram Rajan.
The apex bank said that the portfolio
flows to emerging market economies
(EMEs) have risen strongly. “The
global economic activity has been
picking up at a modest space from
a sharp slowdown in Q1. Investor
risk appetite has buoyed financial
markets, partly drawing strength from
assurances of continuing monetary
policy support in industrial countries,”
the bank says. “The implementation
of government policy actions that
have been announced should create
a congenial setting for a steady
improvement in domestic demand and
supply conditions,” the bank feels.
“The central bank is keen on
freeing up more money for lending
and injecting liquidity into the system,
and is thus a positive for real estate
development companies. Moreover,
it has guided for an inflation target of
8 per cent by January 2015.
“In the absence of a clear direction
of interest rate tapering, we expect
that developers will be cautious in
the upcoming festive season. We
reiterate that this might be hence, a
good time for consumers to bargain
for sweet deals. In our assessment,
once interest rates come off its current
levels, fresh demand will be generated
for housing sales, leading companies
to step up launches,” says Sanjay
Dutt, Executive Managing Director,
Cushman & Wakefield, South Asia.
The RBI said that it will continue
to monitor inflation developments
closely, and remain committed to
the disinflationary path of taking CPI
inflation to 8 per cent by January 2015
and 6 per cent by January 2016.
From April 2015, banks will have
to make a provision of at least 15 per
cent on the loans that are restructured
against 3.5 per cent now. The Reserve
Bank has relaxed norms for refinancing
of infrastructure loans which banks
want to be tagged as standard assets.
From April 2015, the moment a loan is
restructured, banks will have to classify
them as bad loan.
The RBI had made an exception to
the rule by allowing banks to classify
infrastructure loans as standard assets
if half of the outstanding loans are
refinanced by a new set of lenders in
the form of take-out financing.
The central bank later relaxed this
norm by allowing standard tag if 25
per cent of the outstanding is met
through take-out financing. Also, an
infrastructure loan that is refinanced
can be tagged as standard asset
provided promoters are willing to
invest more equity in the project.
The RBI has said a project would not
be classified as restructured provided it
has started commercial operation after
achieving date of commencement of
commercial operation (DCCO).
Last month, RBI gave more flexibility
to banks in structuring infrastructure
loans since a majority of the loans were
disbursed for a shorter tenure even
as it is known that companies take
a long time to execute infrastructure
projects.
In line with the recent initiatives of
the government as well as the RBI to
push for growth in infrastructure and
real estate – specifically affordable
housing -- the additional funds
allocated in the hands of commercial
banks through a SLR cut is positive for
both these sectors.
The investment cycle is picking
up, as is evidenced by the recent
Index of Industrial Production (IIP)
and Purchasing Managers’ Index
(PMI) numbers. Therefore, banks’
willingness to lend the excess liquidity
generated to these priority sectors
is likely to be high. As far as interest
rates are concerned, the real estate
sector will have to wait a little longer
for a rate cut.
Modi to flag off 3 new
metro projects
Reits, infra investment trusts
to get Sebi push
Land acquisition,
lack of funds roadblocks
to PPP projects
The Securities and Exchange
Board of India (Sebi) is set to
approve guidelines for the Real
Estate Investment Trust (Reits) and
the Infrastructure Investment Trusts
( InvITs). The Modi government had
announced plans for such trusts in
the July 10 Budget presented by
Finance Minister Arun Jaitley.
The trusts will allow companies
engaged in infrastructure and real
The Cent re said that poor
performance of the highways sector
in the past two years is due to factors
relating to tolling issues, lack of
equity with developers and delays in
the land acquisition process.
Identified bottlenecks in execution
of projects faced by the NHAI under
the PPP mode include delays in land
acquisition and green nods, lack of
equity with developers and reduced
traffic growth, among others, noted
Road Transport & Highways Minister
Nitin Gadkari.
He also said that currently the
National Highways Authority of India
(NHAI) is executing 158 projects
estate to raise long term resources at
competitive rates. The trust structure
is aimed at creating a framework of
fast-track, investment-friendly and
predictable public private partnerships
(PPPs) to build large-scale projects
that are of vital importance for India.
To raise long-term capital, the new
guidelines will incentivize the creation
of such trusts so that investors have a
lower tax burden, apart from avoiding
under the public private partnership
(PPP) mode which are under various
stages of development.
Already, 72 national highway
projects are delayed mainly due to
land acquisition problems. Of these,
12 projects are stuck in Assam, 11
in Tamil Nadu and 9 in Bihar. Five
projects each are stuck in Uttar
Pradesh, Uttarakhand, Rajasthan
and Maharashtra. Gadkari had said
that as many as 189 projects worth
Rs 180,000 crore were stuck due
to problems in land acquisition,
delays in forest and environment
clearances, etc.
multiple taxation at different levels.
“The proposed move will help
in unlocking funds from completed
projects in infrastructure and real
estate. The promoters of such
projects, particularly the completed
ones, would be able to sell their
stake to the trust, which, in turn, can
raise long-term, tax-free funds from
unit holders,” said an investment
banker.
Prime Minister Narendra Modi is
set to give green signal to three crucial
Metro projects this month at one go.
States set to get their Metro projects
include poll-bound Maharashtra, PM’s
home state Gujarat and Uttar Pradesh
where BJP bagged 71 out of 80 seats
in the recent Lok Sabha polls.
Modi is expected to announce the
NDA government’s decision to launch
metros in Nagpur, Ahmedabad and
Lucknow on August 21, 2014. The
Finance Ministry is set to clear the
three projects next week after which
the Urban Development Ministry will
go to the cabinet.
“The three metro projects will
come up for cabinet approval in
the next fortnight. The cabinet will
decide the funding model and its
approval would pave the way for formal
commencement of work on these
three projects,” said a finance ministry
official. The estimated cost of the 39
km-long Nagpur Metro project is Rs
8,500 crore. The project that is being
expedited with an eye on the assembly
polls in the state later this year would
be implemented through a Special
Purpose Vehicle (SPV) and would be
funded jointly by the Centre and the
Maharashtra government.
The first phase of the Ahmedabad-
Gandhinagar Metro link will cover a
stretch of 36 km and is estimated
to cost about Rs 10,000 crore while
the 22 km-long Lucknow Metro is
estimated to cost Rs 4,500 crore.
Finance Minister Arun Jaitley in the
2014-15 budget has also allocated Rs
100 crore each for the metro project in
Ahmedabad and Lucknow.

2. August 11-17, 2014 2
domestic
Puravankara records a 26 pc
revenue increase in Q1
Ashish R Puravankara, Joint Managing
Director, Puravankara Projects
Puravankara Projects Ltd, one
of the leading real estate developer
in India, recorded consolidated
profit before tax at Rs 83 crores, an
increase of 106 per cent in the first
quarter of the current financial year.
The company recorded a 28 per
cent rise in its consolidated revenue,
posting Rs 474 crores in the quarter
ended June 30, 2014 as against
Rs 369 crores in the first quarter
of last fiscal. The consolidated net
profit after tax stood at Rs 58 crore
during the first quarter ended June
30, 2014.
Commenting on the strong results,
Realty firm Godrej Properties is
planning to launch 15-16 residential
projects in the current fiscal.
“We are upbeat about revival of
the sector. Because of the slowdown
in last few years, some of our project
launches which were delayed we
plan to launch them this fiscal,”
company’s Managing Director and
CEO Pirojsha Godrej told.
The company may launch 15-16
residential projects this fiscal, he
said.
“While some will be the next
phases of the current projects,
some will be new launches. We may
launch new projects in markets like
Bangalore, NCR and Pune, while
the next phases launch will be in
Kolkata, Nagpur and Mumbai,” he
said.
“The new launches wi l l be
developed on joint development
model,” he said.
The company added one new
project in Gurgaon with 1.6 million sq
ft of saleable area. The company had
reported a net profit of Rs 39.47 crore
in the April-June quarter of FY’14.
For Q1 FY15, GPL’s total revenues
increased 48.57 per cent to Rs 362.93
crore from Rs 244.28 crore in the
Ashish R Puravankara, Joint Managing
Director, Puravankara Projects, said,
“Taking into consideration the current
macro-economic conditions, our
performance has been good and
we will continue this momentum in
the coming quarters. With the new
Government at the centre, sentiments
have been upbeat and the policy
initiatives including the push for
affordable housing will be a key driver
in the growth. Being the front-runners
in the premium affordable housing
segment, we will be entering new
markets starting with Mumbai and
Pune for this financial year.”
corresponding period last fiscal.
Pirojsha further said due to
improvement in the overall sentiment
in the real estate sector, it is getting
good response for its new project
launches.
“We look forward to sustaining
the momentum in the year ahead,”
he said, adding, “We also expect
realisations to improve in the medium
term.”
The company recorded 141 per
cent growth in volume and 260 per
cent growth in value of residential
sales, a company release said.
DSK Developers launches
Rs 200 cr public issue of debentures
Surge in capital market have
prompted many real estate companies
to explore the capital market and
DS Kulkarni Developers is one
among the first movers to issue
secured redeemable non-convertible
debentures (NCDs). This comes at
face value of Rs 5000 each for option I,
II and IV and Rs 25000 each for option
III aggregating upto Rs 100 crore (with
an option to retain oversubscription of
an equal amount) aggregating up to
Rs 200 crore (overall issue size). The
issue which opened on August 4th will
close on August 26th or earlier. The
effective yield would range from 13.1
per cent per annum to 13.52 per cent
per anum and the NCDs would be
listed on the BSE.
Announcing the launch of NCDs in
Chennai, Shirish Kulkarni, Executive
Director, DS Kulkarni Developers
Ltd, said that the company propose
to use the proceeds of the issue
mainly to finance the first phase of the
upcoming mega city DSK Dream City,
Pune consisting of 1044 residential
units at a cost of Rs 850 crore which
Bharti Realty appoints
S K Sayal as MD & CEO
Monu Ratra new CEO
for India Infoline
Housing Finance
will be ready by the end of 2017.
He said, “This integrated township
spread across 214.90 acres of land at
Pune-Sholapur road near Pune will be
developed in several phases under
the Maharashtra Special Township
Act. The total project cost is estimated
to be more than Rs 8000 crore and
involves building of 12,000 residential
units in addition to commercial and
retail space, facilities for various
sports including sports stadiums and
is targeted to be completed in 8-10
years.”
JNPT may launch
`1,000-cr port-Sez in Aug
in the Sez benefit from a complete
waiver on import duty, excise duty and
service tax on the capital goods or raw
materials they procure.
Kumar said 40 per cent of the
proposed Sez would be earmarked
as Free Trade and Warehousing
Zone and the remaining would be
allocated for electrical, software and
other industries. He said the port is
hiring architectural, master planning
and engineering design consultants
for its multipurpose Sez.
“The land development will be
undertaken in the next two months
with the help of consultant. We will
be investing Rs.1,000 crore from our
cash balance of Rs.5,000 crore. We
have already received proposals from
big industries,” Kumar said, without
disclosing names. JNPT, which was
established in 1989 to de-congest
the Mumbai Port, handles 56% of
the container cargo and is currently
ranked 31st among the top 100
container ports of the world.
Griha Pravesh to launch 7 luxury towers in Noida I I F L h a s announced t h e
appointment of Monu Ratra as CEO of
India Infoline Housing Finance Limited
(IIHFL), which is the housing finance
subsidiary of IIFL Holdings Limited,
one of the largest diversified financial
services companies in India.
As CEO, Monu Ratra will be the
prime driver for growing IIFL’s books
on the affordable housing product
line, says the company’s statement.
He is an alumnus of Lal Bahadur
Shastri Institute of Management, New
Delhi, and a graduate of Architecture.
Monu Ratra has been associated
with the financial services sector for
more than fifteen years, largely in the
home loans segment. For the past
Griha Pravesh Buildteck, which is
developing a luxury housing project
in Noida, will have seven towers,
18- storey each, and 501 units. It
will comprise 2-, 3- and 4-BHK ultra-luxury
homes, garden apartments and
penthouses. The project is spread over
five acres of lush green landscape
Abhay Kumar, Chairman & MD,
Griha Pravesh Buildteck, said, “Our
new project coming up in Sector
77, Noida, will have state-of-the-art
facilities. It will have rainwater
harvesting systems, a water softening
plant and a water recycling unit. Solar
Bharti Enterprises firm Bharti
Realty today appointed S K Sayal as
Managing Director and CEO. He will
be responsible for conceptualising
and implement ing a scalabl e
Jawaharlal Nehru Port Trust (JNPT),
one of the busiest container gateway
near Mumbai, will launch its port-based
special economic zone (Sez)
project by the third week of this month
with an investment of Rs 1,000 crore,
a top port official said. “This port-based
Sezwould be developed over
an area of 277 hectares. We have
secured all necessary approvals,
eight years, he was associated with
Indiabulls Housing Finance Limited,
most recently as National Business
Manager – Mortgages. He has also
held large responsibilities in the
ICICI Group including setting up the
wealth management practice in Japan
after starting his career with HDFC
Limited.
During his long career with the
Indiabulls, Ratra has been responsible
for setting up and building the retail
home loan business along with home
equity business. Earlier as National
Sales Manager he was responsible
for setting up sales process while
keeping a focus on branch profitability
and third party penetration.
panels are being installed for common
area lighting and hot water supply.
“We are offering machine to
machine communication technology
that will make life a lot easier for the
home owners. The system will enable
them to make their house energy and
cost efficient. We are making provision
for access to unbounded internet
speed in alliance with a telecom
player,” Kumar added.
Structurally, Griha Pravesh also
meets the highest safety standards
with seismic zone sustainability. A
key highlight is its prime location in
business strategy and providing
overall leadership to the business,
the company said in a statement.
In addition, he will explore and
seek new business opportunities via
joint development models to scale
the realty business to the next level
of growth, it added.
“I am confident that his rich
experience will add immense value
to Bharti Realty’s vision of becoming
one of the most admired real estate
companies in the country with
focus on quality, innovation and
commitment to customers,” Bharti
Enterprises Managing Director Manoj
Kohli said.
Sayal has over 30 years of
experience and has worked with
companies such as Alpha G:Corp,
Mahindra GESCO, DLF and Ansal
Group.
including environment nod, from
the government,” said NN Kumar,
Chairman, JNPT.
The Sez will compete with private
firm Adani Ports and Special Economic
Zone Ltd located near Mundra Port
spread over 6,473 hectares. Sezs are
industrial enclaves, deemed foreign
territories from the perspective of
several economic laws. Industrial units
Godrej Properties likely
to launch 15-16 projects
in FY15
Noida. Ideally located from various
landmarks, it is 10 minutes away from
the shopping hub of Sector 18, 1.5 km
from Sector 50, 3 km from Sai Dham
and 2.5 km from the nearest Metro
station. It is also close to schools and
educational institutions.
The Indira Gandhi International
Airport is about 33 km away. The
project will also comprise stack parking
for optimum space utilisation. The
other features include theme-based
entrance lobbies, and landscape
open areas.
Pirojsha Godrej,
Managing Director and CEO

3. in person August 11-17, 2014 3
‘Union Budget sops for PPP model to
boost demand for steel long products’
Topworth Group is one of India’s
fastest growing conglomerates with
revenues exceeding $1.5 billion. It
has presence in steel, power, pipes,
mining, infra and aluminium, etc of
which steel is the flagship business
of the company. The Group has
four manufacturing plants spread
across premier iron ore producing
regions, with a combined capacity
of 1,000,000 tons of iron and steel
products.
The diverse range and multiple
locations give the Group the
advantage of providing unparalleled
customer service. The manufacturing
processes are inherently flexible,
allowing it to respond quickly to
customer needs and provide them
with products that they need.
How do you see the demand for
steel long products catching the
market attention from urban, semi-urban
and rural segment?
Wi th the new government ’ s
focus on infrastructure and housing
sectors, India’s steel demand for long
products is likely to grow faster than
production. While steel production
continued to face intense pressure
due to lack of raw materials -- iron ore
and coal-linkage -- its consumption
will grow sustainably.
A recent study revealed that
India’s long product consumption
would grow by over 5 per cent in the
calendar year 2014 to 50 million tons
compared with 45 million tons the
country consumed in the previous
year. In contrast, however, steel
production in India would grow
a major raw material shortage due
to closure of iron ore mines in major
producing states, including Karnataka,
Goa and Odisha. However, the Union
Steel Minister claims that there is
sufficient iron ore production in the
country to meet domestic demand
and steel makers are not facing any
shortage of the key input.
Wi th steel consumpt ion set
to increase, the surplus of steel
inventory is likely to decline by 50 per
cent to a mere 1 million tons this year
as compared to 2 million tons in the
previous year.
As per Joint Plant Committee
(JPC) data, India’s steel consumption
growth remained muted at 0.5 per
cent during April-December 2013,
but production growth rate improved
steadily to 5.2 per cent during the
same period.
As per the Ministry of Steel,
total iron ore consumption stood
at 100.57 million tons while total
iron ore production was 167.29
million tons in 2011-12. The trend
continued in subsequent years as
well. India produced 135.85 million
tons of iron ore in 2012-13 against its
consumption of 103.59 million tons.
What would be the impact of the
Budget on steel long products,
keeping in view its proposal of PPP
model in infra, affordable housing,
smart cities and so on?
PPP model to boost infra: The
Government of India is developing
a sophisticated PPP model to boost
infrastructure.
It is working on a sophisticated
somewhat 3 per cent to 84 million
tons in the current calendar year,
compared with 81 million tons in the
previous year.
The analysis assumes significance
in terms of recent announcement
by the Government of India which
declared increased focus on the
infrastructure and housing sectors.
Immediately after the announcement,
corporates announced $5 billion
investment on budget housing
projects.
Steel production in India is facing
and flexible framework for the public-private
partnership (PPP) model to
boost infrastructure development.
What we need to do is to have a more
sophisticated PPP framework which
the government is working on now.
A framework that looks at PPPs in a
manner where there’s flexibility in the
circumstances that run over a period
of 25-30 years.
It also underlined the need to
de-stress the PPP model, which is
facing various regulatory hurdles for
infrastructure development. “There’s
a strong case to see whether we can
look at developing a framework which
is going to decide what stress is, who
is responsible for the stress, what is
causing the stress and how it can be
dealt with.
The var ious bodies in the
government should meet to look
at what a stress is and how it can
be defined. As regards the risks
associated with PPP projects,
it has been made clear that the
government alone cannot bear the
entire responsibility, adding that the
risk should be shared between the
private sector and government.
It underlined the need for bidding
out projects only after all statutory
clearances are available. The problem
is not with the bidding process itself
but arises due to very vigorous
bidding by the private sector which
overestimates its capacity and is
unable to assess the potential of
project on a 30-year basis.
“India’s long product consumption would grow by over 5 per cent in 2014
to 50 million tons, compared with 45 million tons in the previous year,”
says Rajiv Kumar Thakur, Head of Marketing &Sales, Topworth
Group of Companies, who shared some key insights on steel long
products demand, Union Budget impact, challenges and opportunities
for steel long products in an interview with Pramod Shinde. Excerpts:
(Contd. on pg 6)

4. INFRARSTUCTUER August 11-17, 2014 4
Telangana to expand
Hyderabad Metro to 250 km
The Telangana government said
it was committed to expedite the
Hyderabad Metro rail project. said
KT Rama Rao, State Minister for IT.
He said the government was keen to
complete the project as per schedule
and provide necessary support.
However, he said, there were a few
issues that need to be sorted out
with regard to the Metro project and
expressed confidence in implementing
the project as per plans.
He said with Hyderabad projected
to grow to a mega metropolis over
the next 20 years, the state might
have to draw up plans to increase
the network from the current 72 km
to 250 km to meet the needs of the
growing population. Speaking at
the launch of the first batch of post-graduate
course in Metro and rail
technology by the Institute of Metro
& Rail Technology (IMRT), he said,
“Hyderabad will be developed as
an investment destination in various
sectors including IT, science, pharma,
films, sports, etc.” He said the state
was exploring the option of a Light Rail
Transport System for Hyderabad.
NVS Reddy, Managing Director of
Hyderabad Metro Rail Ltd, said the
Telangana government now owns
the Rs 14,132-crore project, which is
supported by a viability gap funding
of Rs 1,458 crore from the Central
government, working out to about 10
per cent of the project cost.
A Central Project Monitoring
Group is monitoring all projects with
investments of over Rs 1,000 crore and
this project is part of that. Telangana
Chief Minister K Chandrasekhar Rao
has suggested the Metro project
could consider the alignment change
at two places where historical sites
are located at Assembly and Sultan
Bazaar.
About 40 per cent of the project
work has been completed and Rs
4,300 crore spent. By March 2015,
stage one will be operational, he said.
IMRT commenced its first batch of
one-year specialised post graduate
programme.
Jusco to foray into Odisha
with infra projects
Tata Group firm Jamshedpur
Utilities & Services Company (Jusco),
is all set to foray into Odsha to
implement three urban infrastructure
projects in the pilgrimage town of
Puri. The Odisha government is
close to awarding three projects --
renovation of waste water treatment
plant at Banki Muhan, installation of
an effluent treatment plant at Pejanala
and municipal solid waste treatment
project at Grand Road, Puri.Together,
the three projects have a financial
implication of Rs 30.58 crore.
The state government has
nominated Jusco for implementing
three urban infrastructure projects in
Puri. The chief minister’s office has
already cleared the proposal. We are
soon going to award the projects to
Jusco, said a government official.
Jayanta Sarangi, Chairman of Puri
municipality, said “A technical team
of Jusco and officials of the state
government visited the site nearly
two months back. It has come to our
knowledge that the government will
award three urban projects to Jusco
in Puri.
But work will commence after
an agreement is signed between
the government and the service
provider. Jusco ‘s entry into the
urban infrastructure realm in Puri is
set to give a facelift to the holy town
thronged by tourists.
Centre switches over to EPC route
for road building
With developers not showing interest
in the PPP mode, the government said
it has shifted its focus to the EPC
route for road building. Almost 21
projects bid under PPP could elicit any
response, the government said.
At present, 180 road projects
under PPP mode valued at Rs 1.9 lakh
crore are under construction through
various agencies. During 2013-14,
the NHAI had awarded 17 projects
for a total length of 1,435.84 km, of
which two projects are on PPP mode,
he added.
Considering the current market
conditions, particularly with reference
to the highway sector, the focus of
the government is on implementation
of highways through public funded
engineering, procurement and
construction (EPC) mode.
Once the highways sector gathers
momentum through execution of EPC
projects and the issues plaguing the
PPP mode are addressed, the focus
on the mode, including build, operate
and transfer (BoT), would be restored.
Essar Projects bags
$54 m contract from
Saudi Aramco
Essar Projects said it has bagged
a $54 million (over Rs 328 crore)
maiden contract from Saudi Arabian
national oil company Saudi Aramco.
The $54-million EPC project involves
upgradation of a Crude Stabilization
Unit at Aramco’s Abqaiq Plant, in
Shaybah, one of the largest oilfields
in the world, the company said.
The scope of work entai l s
engineering, procurement and
const ruct ion of a crude tank,
replacement of crude pumps and
associated civil, piping, electrical and
instrumentation facilities. The project
is scheduled to be completed in 29
months.
The Hydrocarbon SBU of Essar
Projects, a global engineering,
procurement, construction (EPC)
contractor, has secured the contract
from Saudi Aramco. The company is
already executing five other projects
in the region in the hydrocarbon
sector.
Essar Projects, CEO, Amit Gupta
said, “This contract is a reflection of
our capability to undertake global
projects from reputed clients in
this region. We will leverage the
capabilities gained to enhance
our foot print in other Middle East
countries.”
The company has experience in
refinery projects having previously
executed a world-scale grass-roots
refinery at Vadinar, Gujarat, with an
initial capacity of 10 million tons
per annum, which was gradually
expanded to 14 million tons and then
20 million tons.
It also executed the supporting
infrastructure and facilities that
include SBM for crude unloading,
product jetty for refinery product
export, a tank farm with total tankage
of 3 million cubic metres for crude,
products and intermediate and 77
MW of captive power plant.
Rajasthan pumps for
PPP in roads
When the Union Ministry of Roads
& Transport is averse to awarding
projects through public-private
partnership (PPP), the government
of Rajasthan plans to award 20,000
km of state highways through this
mode.
To this effect, the state’s legislative
assembly passed the Rajasthan State
Highways Bill 2014. It seeks to set up
a state highways authority within a
month, to achieve 20,000 km of road
building over the next five years.
The new law will empower the
state government and the highways
authority to prescribe the manner
for determination of compensation
Thailand to expand railway
to link India, China
Thailand’s military junta has said
that it wants to widen the country’s
railway tracks and expand the network
to form transport links with important
markets in India and China. The chief of
the junta’s National Council for Peace
& Order (NCPO) General Prayuth
Chan-ocha has said the NCPO’s
working plan includes initiatives to
repair existing one-metre wide tracks
and construct new 1.435 metre wide
tracks in parallel.
The new wider tracks will also be
built on whichever routes are necessary
to open up rail connections with China,
India and other regional countries;
and rules regarding land acquisition,
operation and safety. While most
of the projects will be financed by
private investment, Central and
state budgetary grants will also be
utilized.
The state highways authority would
also be able to raise funds from the
market. There is also an introduction
of a control zone comprising a
strip of 100-metre width along the
roads. While no construction will
be allowed within 25 metres of the
road boundary, development in the
remaining 75 metres will be permitted
in line with rules to be made by the
state government.
he was quoted as saying. Prayuth
said the NCPO has approved a basic
infrastructure strategy for the country.
The country’s transport network must
link up with other Asean countries and
beyond the region later.

5. August 11-17, 2014 5
How to paint your home
mixing paint. If you plan to paint the
ceiling, disconnect and remove any
fancy light fittings. The work will move
faster and more efficiently, and painters
are likely to make less errors. That is
why all obstructions that impede work
should be got rid of.
Prepare the surfaces to be painted.
They must be completely clean of dust,
spider webs, etc., and also completely
dry. You should be able to wipe the wall
down with a sponge without having
anything come off.
Apply your masking tape to the
edges of areas that will not be painted
(cabinets, windows, woodwork, floor,
ceiling, etc.)
Work top down
Always start from the top down
when painting. It helps to see and
correct any drips or runs as your
work progresses. When painting an
entire room, paint the ceiling first, and
then the walls. Rub clean old layer of
flaking paint, and lightly sand painted
woodwork to erase glossy surfaces
and prepare it for fresh paint. Before
repainting, use a primer-sealer to cover
high-gloss enamel paints.
Keep in mind to paint only on
clean, dry surface. If the weather is
damp, especially in monsoon, close
all windows and run an air-conditioner
or dehumidifier before painting, or
just wait for more favourable weather
conditions.
Most modern brands of paint are
lower in volatile organic compounds
(VOCs) and less noxious than paints
that once contained strong solvents
and emitted dangerous fumes.
However, good ventilation in the work
area is very important. While work is in
progress, open windows or switch on
fans for a continuous supply of fresh
air. This will also help to dry the paint
more quickly.
Paints and tools
When purchasing paint, ask what
type of brush and roller is right for the
job. Rollers have different naps, or fiber
lengths that correspond with different
types of paint and desired finishes. In
general, the rougher the surface, the
longer the roller nap should be.
Synthetic brushes and rollers are
generally used with latex or water-based
paint. Oil-base and alkyd paints
INTERIORS
Painting interior walls
is the easiest way to
freshen up your place.
A fresh paint job has
the power to totally
transform the look of
your house in less time
and for less cash than a
costly renovation
Every one of us likes to give a new
look to our home once in a few years
by painting the walls with fresh, latest
shades of colour. This is a great way
to make the place we live in more
exciting and lively. But it’s necessary
to adopt a certain modus operandi to
make certain one doesn’t end up with
a cluttered, scuzzy room or walls.
Now the question is: What time
of the year should one undertake
the painting job? Which is the ideal
season to get best results?
For most of us Indians, festive
seasons are the most auspicious to
brighten up the interiors of our homes.
When it comes to choice, Diwali tops
the list as the most popular festival
when house cleaning and painting is
undertaken on a large scale.
Another well-liked time of the year
is undoubtedly the summer season.
Apart from several advantages the
hot months offer, perhaps the best
ones are that walls are moisture-free
and the paint dries up quickly in hot
weather. Also, one can quickly run out
to a hardware store and purchase all
the tools and supplies you need.
However, our intui t ion and
observation tell us that monsoon
months are not at all a suitable time
for application of paint. There is
dampness in the climate and walls
remain humid which makes it difficult
for them to absorb paint quickly and
become dry.
Get organized
But there are a few important
matters to take care of before we get
down to the actual job. That means get
well organized first before beginning
the actual job on hand.
Almost all groundwork can be done
a day or more before starting to paint.
Whichever room you choose to paint
first, shift out of your way all furniture,
photo frames on walls, ceiling and wall
decorations, etc. Also remove tube
lights, nails, screws and other things
protruding from walls. Fix any dents,
chips or cracks in the walls before
you begin to paint. Detach electrical
switch and outlet covers. Remove
hardware (doorknobs, handles,
hinges, doorbells, etc) you don’t need
to paint over.
Large furnishings can be piled in
the middle of the room and covered
with tarpaulin or plastic sheets. Spread
them out on the floor as well. Keep the
tools and supplies in a fixed corner of
the room when you need them while
usually call for natural or synthetic
brushes and rollers. Your paint
dealer should guide you to the right
combination of tools and materials
for the project.
If the painting job requires several
gallons of paint, avoid colour variations
from one can to another by opening all
the cans and mixing, or packing them
together in a separate container. While
you work, use a paint stick to mix the
paint frequently, giving it a good stir
from the bottom up to prevent the
pigments from settling.
To keep paint from building up in
the paint can rim and spilling over
the sides, use a hammer and nail to
punch a small hole in the interior rim
of the can, this will allow excess paint
to drain back into the can.
Brushes & rollers
Brushes come in many shapes,
looks and sizes. Wall brushes are 3 to
4 inches wide and designed for large,
flat expanses. Trim brushes have a 2-
or 3-inch-wide straight edge and are
a good choice for doors and window
frames. Sash brushes have tips cut at
an angle and are usually 1-1/2 inches
wide, making them ideal for detailed
areas.
Load a brush by dipping the bristles
one-third of the way into the paint.
Lightly pull the brush back against the
inner edge of the paint can or bucket,
using the edge to squeegee off the
excess paint on the bristles’ surface.
Try to make long, smooth brushstrokes
to avoid streaks and brush marks.
When painting, especially ceilings,
cover your head with a scarf, a cloth
or a broad-rim hat and wear protective
eyewear to guard against spatter of
paint and drips. An extension pole
screwed onto the paint roller handle
will help to reach overhead areas.
Use a 12-inch roller with a nap
length that matches the type of paint
and finish you want. Do not overload
the roller with paint—fill the well of the
roller tray and dip the roller in halfway,
then roll it back onto the tray’s angled
platform to remove excess paint.
Apply paint first in an overlapping
vertical ‘W’ pattern, then re-roll this
area horizontally, working in a space
about 3 to 4 feet square. Refill the
roller and begin your next application
outside the painted area, rolling back
into the wet paint as you work.
Cover all areas of the wall and try
to avoid missed spots. Don’t let it
bother you if the first coat looks thin
or appears lighter than the shade you
chose, or doesn’t completely hide
the original coat. A second layer is
usually required to provide a uniform,
finished coat that accurately matches
the colour you bought.
When you need to take a break
during the project, wrap brushes and
rollers with plastic wrap to keep them
wet and pliable for up to a day or more.
When you’re ready to work again,
simply unwrap them and resume
painting. Paint rollers are inexpensive
and disposable, but brushes are costly
and worth saving, and they can be
used many times if given proper care
and cleaning.
Mundane to exciting
Painting the entire interior of a
house can transform it from humdrum
to exciting and inspiring. Covering
interior walls with a fresh, bright paint
can dramatically change the look and
feel of your home.
Painting is an inexpensive way
to transform an ordinary room into
something extraordinary. It can also
raise property value and help a home
for sale move more quickly. However,
doing it right requires serious planning,
but can be worth the effort .
Colour changes everything. You
can give your drab, washed-out
walls a burst of brilliant depth just by
simply picking up a paint can and a
brush. And voila! It’s that simple—and
rewarding, too!

6. in person August 11-17, 2014 6
In a record of sorts Delhi Metro
completes twin tunnels
Delhi Metro seems to be working
overtime on phase-3 as its 2016
deadline draws close. On August 5 it
announced completion of two tunnels
on the Janakpuri (west)-Botanical
Garden corridor. Two parallel tunnels
at Dabri Mor were completed with the
help of two tunnel boring machines.
The two TBMs — named ‘Riddhi’
and ‘Siddhi’— emerged at the Dabri
Mor station after boring the two 1.2
km long twin tunnels. While one of the
TBMs was inserted in December last
year, the other TBM had started work
in January. These are the first tunnels
to be completed on this corridor.
The Delhi Metro Rail Corporation
spokesperson Anuj Dayal said, “This is
the first occasion that twin tunnels have
been completed together in any Metro
project in India. The decision to go for
a twin TBM breakthrough was taken
since both TBMs were progressing
almost simultaneously. The first such
instance of a twin breakthrough had
happened during work on the 8.6 km
long Toronto-York Spadina subway
extension in year 2002.”
The tunnels have been constructed
at a depth of 16.5 metres and the
internal diameter of the tunnels is 5.8
metres. The casting of the segments
has been done at the Dwarka
casting yard. According to Delhi
Metro, the construction was a “major
engineering challenge” as the tunnels
passed underneath thickly populated
residential and commercial areas
and needed “extensive geotechnical
instrumentation and monitoring”.
At present, about 28 TBMs are
engaged in tunnelling works in different
parts of Delhi as compared to 14 TBMs
used in phase-2.
Railways to spend `73k cr on
two freight corridors
The Indian Railways will spend
over Rs 73,000 crore on two
Dedicated Freight Corridors (DFCs)
under construction from Dankuni
to Ludhiana (eastern DFC) and
the Jawaharlal Nehru Port Terminal
(JNPT) to Dadri (western DFC).
Minister of State for Railways
Manoj Sinha said two DFCs —
eastern (1,839 km-long Dankuni-
Ludhiana section) and western (1,499
km-long JNPT-Dadri section) — had
been sanctioned.
In Eastern DFC, construction work
is underway on the Mughalsarai-
Sonnagar section. Civil contract
has been awarded on the 343-km
Khurja-Kanpur section and work
has started. In Western DFC, civil
contract has been awarded on the
625-km Rewari-Palanpur section and
work has started. Construction of 25
major bridges between Vaitarana and
Bharuch has been completed.
The estimated completion cost
of construction of the two, excluding
land and the Sonnagar-Dankuni
section — to be implemented through
public private partnership (PPP) — is
Rs 73,392 crore (Rs 26,674 crore for
eastern DFC and Rs 46,718 crore
for western DFC). The cost of land is
estimated at Rs 8,067 crore (Rs 3,684
crore for eastern DFC and Rs 4,383
crore for western DFC).
Western DFC is being funded by
loan from the Japan International
Cooperation Agency (Jica), which
has extended 77 per cent (Rs 38,772
crore) of the project cost. The World
Bank is funding the 1,183 km section
from Ludhiana to Mughalsarai of
eastern DFC. It has extended Rs
13,625 crore in loan, which is 66 per
cent of the project cost.
Further, the 122 km stretch of
the Mughalsarai-Sonnagar section
in eastern DFC is funded by Gross
Budgetary Support and the cost is Rs
3,679 crore. The 534 km stretch of the
Sonnagar-Dankuni section of eastern
DFC is to be implemented through PPP.
Affordable housing: Affordable
housing refers to housing units
that are affordable by that section
of society whose income is below
the median household income.
Affordable housing becomes a key
issue especially in developing nations
where a majority of the population
isn’t able to buy houses at the market
price.
The disposable income of
people remains the primary factor in
determining affordability. As a result,
it becomes increased responsibility
of the government to cater to the
rising demand for affordable housing.
The Government of India has taken
various measures to meet the
increased demand for affordable
housing along with some developers
and stressing on public-private
partnerships (PPP) for development
of these units.
The long products demand will
get a boost by construction of this
type of housing by PPP. The biggest
advantage would be for local players
who are nearer to the site since the
steel price would play a major role
for PPP.
100 smart cities: The government
is planning to set up 100 smart cities
across the country that will provide
modern amenities, education and
employment opportunities. Urban
Development Minister M Venkaiah
Naidu said the project of 100 smart
cities is in conceptualized stage and
details are being worked out through
discussions with all stakeholders,
including state governments.
“The cities are yet to be identified,”
he said. The minister said education,
employment and entertainment are
considered to be the key factors
which forced people to migrate from
rural areas to urban centres.
“Opportunities of education,
employment and entertainment
are concentrated mostly in urban
and semi-urban centres and these
three factors are forcing more and
more people to leave rural areas
and migrate to towns and cities. The
smart cities concept also translates
into demand for long products to a
very large extent.
What are the biggest challenges
and opportunities for steel long
products?
Challenges: Higher input costs
burden steel makers, which would
make steel dearer by $8-16 per
ton very soon. During the past two
months, the input costs used by steel
makers have gone up by around
Rs 1,600 ($26) per ton with the rise
in inputs. The price of iron ore and
diesel has gone up. The rise in costs
of coking coal and zinc is because
of the duty hike in the Budget. Rail
freight was also raised. All these have
escalated pressure on us, according
to a leading steel maker.
The Centre levied 2.5 per cent
duty on imports of coking coal, a
key steel making input, in the Budget
from nil. The duty hike would lead to
Rs 200 ($3) per ton increase in the
cost of steel production. Steel makers
have been holding the prices for the
past couple of months and now will
be forced to pass on the escalated
cost.
Could you elaborate more on
Topworth Group long products
variants with their market size in
India as well as overseas? Which
are its key demand drivers?
Lodha TMT: Presently, our strategy
is to feed the Maharashtra TMT market
since the demand in Maharashtra is
to the tune of 4.5 million tons per
annum as against our production of
1.5 lakh tons. Our first priority is to
our state and any excess would be
sold outside Maharashtra. However,
we do supply to various projects
and construction industries outside
Maharashtra .
Lodha structural: Our production is
to the tune of 180,000 mt per annum
at our Durg plant. Our presence is
mainly on various projects and we
also cater to various end-users and
fabricators on all-India basis. To serve
the small and local buyer, we also
market through trade channel.
Lodha pipes: We are in ERW and
spiral pipes manufacturing having
a capacity of 75,000 mt per annum
(back & galvanized up to 4”) and
300,000 mt per annum (up to API x 80
PSL II from 18” to 80”) respectively.
In oil & gas pipe lines we are
a regular supplier to Gail, IOCL,
IPCL and others, and we are also
exporting to the Middle East for
cross country pipelines. We are also
supplying water pipes to various
governments well as private sector
projects under state government
water transportation scheme for
semi-urban and rural areas.
Could you elaborate on the unique
process of Topworth Lodha Thermax
TMT bar which makes the product
stronger, safer and more ductile?
It has a uniform rib depth and
spacing which makes it unique from
ordinary TMT bars.
It is being processed in the world’s
proven Thermax® technology for
imparting superior strength and
quality to ribbed bars -- quenching,
self-tempering and atmospheric
cooling.
Ribs are made using CNC (machine
rolls) advanced technology, thereby
avoiding uneven rib pattern which
gives rise to weaker bonding strength.
Lodha Thermax TMT gives better
fatigue strength than ordinary rib bar
ensuring the RCC structure stands
for generations.
Possesses a unique combination
of strength, ductility and bendability
which is significantly higher than
the stipulated requirements of
IS:1786/85.
What is your strategy to enhance
the significance of Lodha Thermax
TMT rebars?
Our st rategy to reach the
every nook & corner & doorstep of
customers per end-user in state,
districts, talukas and villages through
our dedicated sales force
How do you ensure the availability of
TMT and pipes products in India?
We have a full-fledged customer
servicing & order management team
which ensures tracking and execution
of every order in time and also get
regular input from our sales force
on requirement in the market of our
product.
What are the biggest advantages
of Lodha Thermax TMT and pipes
products in terms of mechanical
properties?
Durability and long lasting of
concrete structures; ideally suited
for high-rise buildings, dams, bridges
and industrial constructions. Very well
suited for earthquake-prone areas.
Better elongation gives more
strength and safety to any concrete
structure which is vital and essential
for earthquake-prone areas.
Bend and re-bend tests are mainly
carried out by IS:1786 and British
4449 standards. Lodha Thermax TMT
meets all such standards.
Easy and fast work ability, saves
time & cost due to higher bendability.
Easy weldability with no loss of
strength at joints. No pre-heating and
post-heating required during welding.
Pre-welded meshes can be used to
save time.
Safe and has significant strength
at higher temperatures.
Highly effective in humid and
coastal areas.
Topworth innovations towards
strength and agility of TMT bars to
be competitive and sustainable in
the market.
Online hot billet direct rolling of
Lodha Thermax TMT bars.
Hot charging refers to the practice
of handling the billet directly from the
end of the continuous caster run out
table to the roughing mill of TMT bar
rolling mill without any stoppage.
To attain Direct Hot Rolling:
A high-speed roller table is
installed from caster run out table
to the roughing mill working roller
table.
Increase in casting speeds to
the desired limits to get desired
temperatures.
Direct transfer of the hot billets
at required rolling temperature from
caster to roughing stand.
Net savings of almost 35 per cent
in rolling costs in terms of scale loss
and fuel costs.
Unique properties of Lodha
Thermax TMT bars
Bendab i l i t y : Tough outer
surface and soft core of the Lodha
Thermax®TMT make TMT bar s
bendable and ideal for construction.
Fire resistance: As compared to
TOR steel, Lodha Thermax® TMT
bars have higher thermal stability
and therefore can withstand elevated
temperatures.
Excellent weldability: Lodha
Thermax® TMT bars can be used for
butt and other welded joints without
reduction in the strength at the
welded joints.
(Contd. from pg 3)
Steel long product process
P rojects U pd a te

7. INFRARSTUCTUER August 11-17, 2014 7
Evolution of logistics
The logistics and
warehousing industry
has a very high
dependence on physical
infrastructure. The
challenges pertaining to
it are manifold ranging
from lack of ample
road and rail network
to accessible storage
options
sector
(Part 2)
Currently the Indian logistics
and warehousing industry is highly
fragmented and unorganized. The
logistics and warehousing sector
in India is still in its initial stage of
development and has a long way to
catch up with most of the advanced
economies.
Managing transportation network
and storage of finished goods, used
to define the supply chain strategy for
most of the companies in India until a
few years back. However, integration
of the Indian economy with global
economy and various multi-national
companies setting up manufacturing
facilities locally have helped in
bringing global best practices to the
domestic market.
This has resulted in a gradual
shift from simply managing transport
network and godowns towards
a more integrated supply chain
management system.
In order to understand the
evolution of the logistics sector in
India, it is imperative to study the
competing markets that have moved
ahead in the value chain. The United
States of America is considered to
be the most evolved logistics market
in the world and can be used as
a benchmark to compare with the
Indian market.
China, sharing a great amount of
characteristics in terms of economy
and geography with India, can be
considered as another benchmark
for comparison. The comparison of
USA and China with India will help in
understanding the various gaps and
the current status of the domestic
logistics market.
Different needs
The need for logistics arises when
there is a gap between the time a
product is initially manufactured and
then finally consumed. The larger this
gap, the higher the need for storing
the product. Since each product
is uniquely placed depending on
who consumes it and where it is
consumed, the need for logistics is
different for each product category.
For example, a TV unit that is
manufactured in India and sold in
the domestic market will have a
different requirement for logistics
compared to the same TV unit sold
in the export market. For domestic
consumption, the TV unit will have
to be warehoused close to one of
the urban centres from where it can
be delivered to the final point of
consumption.
However, in case of export, it will
have to be stacked in a container that
will be warehoused in a Container
Freight Station (CFS) close to one
of the ports from where it can be
exported. Taking into account such
varying needs for each product,
demand drivers of logistics can be
broadly classified into four categories
namely:
Manufactur ing led demand;
consumption led demand; exim
(export-import) led demand and
agriculture led demand.
For the purpose of this report,
agriculture led demand has not
been considered for analysis as it
is a largely unorganized market with
go down type structures spread
across a vast geography of the
country. Additionally, the government
contracted agriculture warehouses
have caps on rentals and construction
cost thereby distorting free market
economics.
corridors and investment zones, the
logistics sector in the country is
bound to reap the benefits in coming
years. Additionally, opening up of
various manufacturing sectors to
Foreign Direct Investment (FDI) in
the past decade has provided a fresh
impetus to the logistics sector.
Consumption-led demand
The changing dynamics of the
retail industry have shifted the focus
from supplier to consumer in the past
two decades with concepts such as
delivering the right product at the
right time gaining importance.
This has compelled retailers in
maintaining a steady flow of SKUs
(Stock Keeping Units) with real time
inventory management and order
placement.
The changing dynamics of the
retail industry in India has resulted
in the business model of a modern
retailer becoming heavily dependent
on a smooth and efficient supply
chain network. This has brought the
logistics industry at the forefront of
this business.
Large consumption markets like
NCR, Mumbai, Bengaluru, Chennai
and Kolkata among others require
a massive amount of investment
in logistics in order to ensure an
uninterrupted supply of goods. This
has created demand for logistic
services like warehousing, last-mile
connectivity and inventory
management
The demand for logistic services
is strongly linked to growth in the
retail industry which is induced by
higher consumption spending. The
emergence of modern retail in the
last decade has accelerated retail
in the last decade has accelerated
the need for maintaining an efficient
supply chain network.
Additionally, opening up of the
retail industry to the FDI has further
boosted demand for logistics
services in the past few years as
foreign retailers rope in global best
practices in the sector.
Exim-led demand
Export-import (Exim) market
constitutes the largest demand
driver for the logistics sector in India
as the cargo that moves through
ports requires a huge amount of
supporting logistics infrastructure.
Services such as transportation
(rail, road and sea) and warehousing
form the primary activities in Exim
related logistics. Currently, majority
of the Exim cargo in India is moved
through containers that are standard
in terms of dimension (20-foot
equivalent unit or teu) across the
globe.
This makes it easier to transport
cargo from one modal to another
whether it is rail, road or sea. India’s
containerized traffic in teus has
grown at an annual average growth
rate of 11 per cent in the past 10
years, fuelling robust demand for
logistic services.
Apart from the huge investment
in the transportation sector, Inland
Container Depots (ICD) and Container
Freight Stations (CFS) have also
attracted significant traction due to
strong growth achieved in the Exim
trade. Currently, India has more than
200 operational ICD & CFS with
another 50 expected to become
operational in the next five years.
Economic recovery in key western
markets of the USA and Europe is
expected to further boost India’s Exim
trade in coming years, thereby driving
the domestic logistics market.
Warehousing space demand
Logistics cost can be broadly
divided into three major components
namely transportation, storage and
distribution. The focus of this report
is primarily on storage or in other
words warehousing component of
logistics.
Warehousing costs constitute
around 15 per cent-35 per cent of
the total logistics cost, depending on
the product and markets served. The
sheer size and growth potential of
warehousing space in India warrants
the need to study it separately
from other components of logistic
services.
Demand driver of warehousing
space, similar to logistics, can be
broadly classified into manufacturing,
consumption and Exim. Currently,
manufacturing based demand has
the largest share in total warehousing
space at 631 million sq ft in 2014.
This is primarily because of three
reasons. Firstly, India has a large
manufacturing base covering all the
major sectors like automobile, steel,
cement, pharmaceutical, fertilizer
and textile, among others that require
a vast amount of space for raw
material and final product storage.
S e c o n d l y ,
I n d i a ’ s l a r g e
landmass results
in a wider gap
between production
and consumption
of manufactured
p r o d u c t s . T h i s
compounds the
need for holding
a larger inventory
at warehouses in
order to avoid disruptions
in the supply chain network.
Manufacturing-led demand
Logistics cost constitutes a critical
component of a manufacturer’s
total cost and is largely dependent
on the location of his plant. The
distance between the manufacturer’s
factories, his raw material suppliers
and the consumption markets of final
goods primarily determine the cost of
logistics for a company.
Apart from these factors, the
type of product manufactured also
influences the total logistics cost. For
example, the cost of transporting and
storing diamond products is much
higher than that of cement or steel.
Thereby, within the manufacturing led
demand for logistics, the cost can
differ drastically for different types
of products.
The manufacturing sector is a
major driver of the logistics industry
in India with companies spending
anywhere between 2 per cent – 20
per cent of their revenue on this.
Growth of the logistics sector is
positively related to growth of the
manufacturing sector.
With the government of India’s
renewed focus on expanding the
manufacturing sector through various
initiatives such as dedicated industrial
Previously consumers had few
options as most of the retailers were
small-time operators facing frequent
stock-outs and limited choice of
products. The entire retail segment
was heavily skewed towards the
supplier.
However, with the advent of
modern retail and emergence of
large-size retail formats, the entire
focus of retailing has shifted towards
consumers.
Today, any delay in the
delivery of product or stock-outs
at the stores could
threaten the entire
business model
o f a ret a i l e r.
Godown
W aehouse
Hub
Godown
Warehouse
Integrated Logistic Park

8. infrastructure August 11-17, 2014 8
Finally, the existing tax structure
(detailed discussion in policy and
regulations section) has compelled
manufacturers to maintain a separate
warehouse in each state in order to
avoid a higher tax outgo.
Strong demand
Such dynamics have shaped a
strong demand base for warehousing
space in the country from the
manufacturing sector. Demand for
warehousing space from the Exim
sector constitutes the second largest
share at 211 million.sq ft in 2014.
This is primarily because ICD
& CFS require a much larger land
area to operate the various material
handling equipment and supporting
infrastructure like rail sidings. In terms
of future growth, Exim led demand is
Prudent RBI monitory
policy
In line with the recent initiatives of the government as well as the RBI
to push for growth in infrastructure and real estate, the additional
funds allocated in the hands of commercial banks through a SLR cut
is positive for both these sectors
In India, leading indicators such
as the monthly Industrial Production
and Purchasing Managers’ Index
(PMI) have provided early signals of
strengthening corporate sales and
business flows. The benign outlook
on global non-oil commodity prices
and still-subdued corporate pricing
power should all support continued
disinflation, as should the recent
government measures to improve
food management.
However, the RBI has deemed it
premature to conclude that future
food inflation and its effects on
broader inflation can be discounted.
Also, the government is currently
constrained by high deficit and
its ability to spend is therefore
restricted.
This actually opens up space
for banks to increase lending to the
private sector. Thus, there is a need
to increase liquidity with banks in
The monetary policy announced
indicates that the Reserve Bank
of India is keeping a close eye
on inflation rather than facilitating
growth just as yet. This makes
sense. Globally, emerging markets
(including India) continue to remain
vulnerable from decisions by US
Federal government on withdrawal
of stimulus, as well as geopolitical
tension in the Middle East – which
could impact crude oil prices.
expected to lead with a 13 per cent
Compounded Annual Growth Rate
(CAGR) from 2014-2019.
Strong recovery of the export
market and rapid expansion by
CFS operators in coming five years
are expected to support such a
growth. The total warehousing space
demand in India is expected to grow
at 9 per cent CAGR from 919 million
sq ft in 2014 to 1,439 million sq ft by
2019. A total of 520 million sq ft of
incremental warehousing space will
be required by the end of 2019 or 104
million sq ft in each of the coming
five years.
Issues and challenges
Despite showing immense growth
potential, the Indian logistics and
warehousing industry encounters
various issues and challenges today.
Success of this industry will depend
largely on the resolution of these.
Even though some of the biggest
challenges require initiatives at
the government level, the private
sector will also play an equally
important role. Some of the key
challenges witnessed by the industry
are explained below.
Transport infrastructure
The logistics and warehousing
industry has a very high dependence
on physical infrastructure. The
challenges pertaining to it are
manifold ranging from lack of ample
road and rail network to accessible
storage options.
India lacks efficient road and
rail network to facilitate smooth
movement of goods. Also there
i s overdependence on road
infrastructure unlike the developed
countries where rail is an equally
imp o r t a n t mo d e o f f r e i g h t
movement.
The rail network in our country
is saturated due to limited addition
in tracks during the past decade.
Likewise cargo handling capacity of
our ports is also inadequate leading
to delay in deliveries.
The typical turnaround time of
Indian ports is twice that of the
neighboring ports of Colombo and
Singapore. All the above transport
related issues in turn affect the export
and import time which in turn poses
a challenge for companies.
Information technology
The importance of information
technology cannot be undervalued in
the logistics sector. Low penetration
of IT and absence of efficient
communicat ion inf rast ructur e
pose a big challenge for logistics
companies. Whether it is the use
of transport management systems,
Construction Cost of Warehouse Developments
Cost components for construction of a warehouse (Rs/sq ft on built-up area basis)
Cost component PEB RCC
Structure 350 - 500 400 - 550
Plinth/ Flooring 300 - 450 300 - 450
Infrastructure (Sewage, roads, Boundry wall, etc) 150 - 650 150 - 650
Total 800 - 1600 850 - 1650
order to enable them to meet the
additional financing requirements.
Key policy changes
In line with the street estimate,
the RBI has kept the benchmark
interest rate (repo rate) unchanged
at 8.0 per cent. All other key policy
rates, barring SLR, also remain
unchanged.
The statutory liquidity ratio (SLR)
of scheduled commercial banks has
been reduced by 50 basis points
from 22.5 per cent to 22.0 per cent,
thereby increasing funds available
with banks for lending to the private
sector.
Impact on real estate
In line with the recent initiatives of
the government as well as the RBI to
push for growth in infrastructure and
real estate – specifically affordable
housing -- the additional funds
allocated in the hands of commercial
banks through a SLR cut is positive
for both these sectors.
The investment cycle is picking
up, as is evidenced by the recent
Index of Industrial Production (IIP)
and Purchasing Managers’ Index
(PMI) numbers. Therefore, banks’
willingness to lend the excess
liquidity generated to these priority
sectors is likely to be high. As far as
interest rates are concerned, the real
estate sector will have to wait a little
longer for a rate cut.
Generalised inflation and interest
rates are just one aspect of the costs
incurred by developers in India. The
other major aspect is construction
cost, which has been rising at around
17 per cent year on year for past four
to five years.
The reason for this imbalance is
largely the supply-side constraints.
It is important for the RBI and the
government to cohesively work
towards clearing this demand-supply
imbalance. The signals coming from
the monetary and fiscal authorities
are currently positive. To that extent,
the real estate sector certainly
has reason to look forward with
enthusiasm.
Current inflation
Over the last three months, CPI
inflation (a number that RBI closely
follows) has moderated. As of June
2014, it stood at 7.3 per cent y-o-y,
giving some comfort to RBI. The
RBI could have lowered its hawkish
tone and reduced interest rates
marginally at this point, but the
deficit in monsoon and a yet-to-reflect
impact of the recent hike in
rail ticket prices are potential threats.
Therefore, lowering its guard against
the inflation threat would have been
premature.
Anuj Puri
Chairman & Country
Head, JLL India
Radio Frequency Identification Device
(RFID) or warehouse management
systems, India lacks on every front.
Fragmented market
The logistics sector in India is
highly unorganized and fragmented.
Most of the truck operators are small
private players and are unable to
contract directly with the clients. As
a result of this, mediators come into
play and generate business for them
and take commission.
All this leads to operational
inefficiencies and compels truck
owners to overload in order to achieve
profit margins. Since the operations
are so fragmented, economics of
scale cannot be adopted. Presence
of multiple check points for trucks
is another challenge. Every state
requires certain documentation for a
truck to pass the border such as RTO
inspection, octroi and toll tax among
others leading to huge delays during
the journey.
Land availability
Affordable land availability with
clear titles in tactical locations is a
big challenge currently. Since land
is a state subject, it adds to the
challenges as different states have
different set of procedures pertaining
to agriculture land acquisition.
Increasing land values even in the
peripheral areas of a city further
Warehouse Clusters In MMR
makes it unviable for companies to
invest in warehousing.
Lack of standardization
As discussed earlier the demand
drivers of the logistics industry
are var ied and have speci f i c
requirements. These requirements
are further reflected in transportation
and warehouse needs. There is lack
of standards related to design, safety
and type of facilities and amenities
of warehouses.
Increasing globalization and
entrance of international players
has increased the demand for good
quality warehouses which are at par
with other countries. Currently there
is a dearth of such warehouses which
compels companies to invest further
in order to support their operations.
Lack of trained manpower
There are limited options of
specialized studies on logistics
management in the country. Most
of the warehousing players lack
the required expertise leading to
operational inefficiencies. As the
industry evolves, the need for experts
is also expected to grow. A majority
of logistics players today have limited
knowledge of material loading,
handling and storage leading to
wastage.
(Concluded)
(Courtesy: Knight Frank India)
R e a l E st a te

9. EQUEIMNPT August 11-17, 2014 9
Grove cranes enlisted for
$670 m chemical complex
1,188 t in total; 51 heat exchangers;
78 reactor vessels; eight thermal
columns; 18 mixer units; 125 pumps
and 51 km of piping.
Despite having an installation
list that would keep most project
managers up at night, Luca Pibiri,
general manager at main contractor
and crane owner I.COM, says his
Grove cranes keep him relaxed.
“This is not the first time we’ve
used our Grove cranes on a project
of this size and importance and, as
before, we are confident they will
deliver excellent performance,” he
says. “Grove cranes are durable and
reliable machines, and our operators
find their simple operating systems
Sany Heavy Indust r y, the
construction equipment maker
controlled by Chinese billionaire
Liang Wengen, is planning to list a
subsidiary in Hong Kong, according
to the company’s statement.
Sany Heavy Machinery (China),
which makes excavators, hopes the
Hong Kong listing will help boost
overseas sales and improve its
competitiveness, the statement said.
The board of directors of Shanghai
and fast set-up make life much
easier.”
The Porto Torres job site is a
tricky place for a crane to negotiate –
especially for the 300 t capacity Grove
GMK6300L, the largest crane on site.
Tight corners and an intricate maze
of equipment means maneuverability
is the key, which Grove’s mobile
cranes are designed for. The Grove
AT range features all-wheel steering
to minimize turning circles, while the
Grove RT range has four steering
modes, allowing them to access even
the tightest spaces.
The coastal locat ion of the
Porto Torres project brings its own
difficulties. The marine environment,
Heavy Industry, whose shares trade
at the Shanghai Stock Exchange, has
approved the Hong Kong listing.
Sany Heavy Industry has been
hurt by tough competition in China
and a slowdown in economic growth.
Its shares have lost more than 10
per cent of their value in the past
year and are down by almost three-quarters
from their most recent
peak in 2010. Sany’s rivals in China
include Caterpillar.
A team of Grove all-terrain and
rough-terrain cranes is working at
one of the most significant chemical
processing plant projects in Europe.
The Porto Torres Green Hub project
in Sardinia, off the coast of Italy, will
see the complete conversion of the
existing facility from a fossil fuel plant
to a bio-based production facility.
The six Grove cranes, which offer
capacities from 40 t to 300 t, will
spend six years at the giant coastal
job site. They are charged with
installing a demanding and expensive
list of chemical plant equipment and
materials that includes 15 tanks,
which vary in size up to 500 m3; 17
racks measuring 950 m and weighing
Volvo acquisition strengthens
Terex Trucks brand
The newly named Terex Trucks is
committed to its customers, products
and dealers, says the company’s
longstanding Managing Director Paul
Douglas in a statement almost two
months since its acquisition by Volvo
Construction Equipment (Volvo CE).
In his first public announcement
since the company’s acquisition was
completed on June 1, 2014, Douglas
said Terex Trucks would continue to
operate as an independent business
while at the same time drawing on the
resources and expertise of its parent
company.
“Our new ‘owned but independent’
status gives us the best of both
worlds,” said Douglas. “We retain
our lean and agile organizational
structure, our entrepreneurial spirit,
customer focus and speed of
execution – but with the added
benefits that being part of a global
leader in the construction equipment
industry brings with it.”
Douglas also used the occasion
to make clear statements about the
future of the company. “The Terex
Trucks name will remain for the long
term and we remain fully committed
to our entire customer base and
product range. That means both
rigid and articulated haulers will play
important roles in the company’s
future, and we will continue to support
the entire field population with parts
and service. We are also committed
to retaining our dealer partners, our
existing production footprint and our
skilled and committed workforce.”
Sany unit seeks HK
listing
Terex Trucks’ new owner is also
satisfied with its purchase. According
to Andrew Knight, VP strategy and
business development, “Volvo CE has
made no secret of its longstanding
wish to offer customers a rigid hauler
option. Terex Trucks products are well
respected in the market and there is
a large field population to support
its parts business. Both rigid and
articulated haulers provide a strong
complement to Volvo CE’s product
range, and since the deal closed
we have had greater insight into the
strengths of the business, reinforcing
our view that Terex Trucks is a good
strategic fit.
“Terex Trucks is a lean, agile and
well-run organization and Volvo CE will
apply only a ‘light touch’ approach to
its running,” continued Knight. “That
said, we acquired this business with
a very clear vision for the future with
a strong desire to grow the business.
As such we will be providing strong
support in terms of resources and
investment wherever it is required.”
“Becoming part of Volvo CE is also
well-timed in terms of market outlook,”
concluded Douglas. “Although the
mining sector – a big customer of
Terex Trucks – is currently depressed,
the benefits of our new investment
and cooperation relationship with
Volvo CE looks set to coincide
with the cyclical upswing of the
segment, further strengthening the
acquisition rationale. Terex Trucks as
part of Volvo CE provides a mutually
beneficial best of both worlds for both
companies.”
sand and uneven terrain make for
tough working conditions. But the
rugged design of the Grove cranes,
which have the patented Megatrak
suspension system on the ATs and
deep box-section frames on the RTs,
means they are built to tackle much
worse.
Work began at Porto Torres in
June 2011 and the first Grove crane
arrived at the site in September 2012.
All six will remain there until work is
completed in 2018.
All of the Grove cranes were
supplied by Italian dealer FIMI spa.
The company was a key reason why
Grove was selected for this major
project as Enrico Angiolini, director
South Europe at Manitowoc Italy,
adds.
“This is such a big project that
needs the best equipment and the
best service,” he says. “FIMI’s staff
has the expertise and the experience
to fully meet the needs of the customer
and ensure this ambitious project
moves ahead on schedule.”
The Grove all-terrain cranes at
the Porto Torres Green Hub project
include two 75 t capacity GMK4075s,
a 100 t capacity GMK5095 and a
300 t GMK6300L all-terrain crane.
The Grove GMK6300L offers the
longest boom in its class, at 80 m,
and is among Grove’s most popular
models.
The rough-terrain cranes at the
project include Grove’s 35 t capacity
RT540E and the new 45 t capacity
RT550E rough-terrain crane, which
features Manitowoc’s Crane Control
System that makes lift set-up even
easier. Both these units are built at the
Grove factory in Niella Tanaro, Italy.
I .COM, a l e a d i n g I t a l i a n
construction company for chemical
and power generation industries, is
also the owner of the largest fleet of
cranes in Sardinia. It is transforming
the Porto Torres facility for Matrica
SpA, a joint venture between Polimeri
Europa, the biggest Italian chemical
company, and Novamont, a global
market leader in biodegradable
plastics.
The Porto Torres Green Hub
project will convert the plant from
using traditional fossil fuels to bio-based
alternatives. The project will
reportedly usher in a ‘new age’ for
the Italian bio-chemical industry. Once
operational, the plant will produce
bio-plastics, bio-lubricants and bio-additives.
CNH construction
equipment sales rise in Q2
CNH Industrial’s construction
equipment business recorded sales
of $931 million in the second quarter
of the financial year, a 0.9 per cent
decline on the same period last year.
However, it achieved an operating
profit of $28 million, up 15 per cent
on Q2 of 2013.
Moreover, the businesses sales
for the first half of the year were up
0.7 per cent on the first half of last
year at $1.71 billion. The first half
operating profit was $31 million,
compared to a loss of $13 million a
year ago.
CNH Industrial said its increase
in sales was due to higher demand
in North America, which offset a
decline in Latin American and Asian
territories. It also noted a recovery
in the Europe, Africa and Middle
East region.
The company also said it ramped-up
production in the second quarter,
with output some +12 per cent
higher than retail sales, in response
to the recovery in North American
and European markets.
Overall, CNH Industrial’s sales
for the quarter were up 0.9 per
cent compared to a year ago at
$8.91 billion. Operating profits were
up 10 per cent at $358 million.
CNH Industrial sells construction
equipment under the Case and New
Holland brands.

10. real estate August 11-17, 2014 10
DLF eyes `200 cr rent
from ‘Mall of India’
in Noida
India’s biggest realty firm DLF is
expecting Rs 200 crore rental income
per year from its large luxury shopping
mall in Noida to be launched early
next year. ‘DLF Mall of India’ with 2
million sq ft of leasable area is being
developed in Noida in the National
Capital Region at an investment of Rs
1,100 crore and touted as one of the
biggest in the country.
DLF has leased about 90 per cent
of the area and the mall is expected
to be launched in February-March
2015, sources said, adding that more
than 200 brands have signed so far.
DLF’s annual rental income from
Modi govt set to
relaunch rural housing
scheme
The Centre is likely to expand
the reach of the 30-year-old rural
housing scheme by relaunching it
as a national mission with a target to
build 3.2 crore pucca houses for the
poor over the next eight years.
The move is in line with Prime
Minister Narendra Modi’s vision of
housing with water, electricity and
toilets for all Indians by 2022. The
Rural Development Ministry has
floated a discussion paper that
proposes to give a new identity to
its flagship programme, Indira Awaas
Yojana, by launching it as National
Gramin Awaas Mission or Gram.
According to the paper, Gram
will have an annual target of 25 lakh
houses and fund requirement of
Rs 27,300 crore per year. The key
proposals placed for stakeholder
consultation include doubling the
per unit assistance to Rs 150,000
in plains and a little more in hilly
or difficult areas with toilets being
an integral part of the house and
enhancing the area of each unit to
30 sq meters from 20 sq m.
“This would have a significant
cost implication, but is inevitable
if the problem of housing in rural
areas is to be addressed,” said the
ministry. As of now, the government
gives a grant of Rs 70,000 per unit
for construction of new houses in
plain areas and Rs 75,000 for hilly
and difficult areas.
Though construction of toilets has
been mandatory since April 2013,
Centre to recast of land-use
policy to check displacement
Xander Group invests
Rs 400 cr in Supertech’s
project
NCR-based Supertech Ltd has
received an investment of Rs 400
crore from the Singapore-based real
estate investment arm of the Xander
Group Inc. The investment has been
made in Supertech’s Township and
Group Housing projects in Gurgaon
Sector 79.
Rohan Sikri, Partner at Xander
Investment Management, Singapore,
said, “We continue to see the National
Capital Region as an important
market for us in India, and the
relationship with Supertech, one of
the largest NCR-based developers,
reinforces our investment appetite for
end user focused residential projects
with quality partners.” The Xander
Group Inc is a global investment
firm focused on the infrastructure,
hospitality, retail and real estate
markets.
DDA may reserve 80 pc
flats for Delhi residents
The Narendra Modi government
has set its eye on a recast of the
country’s land-use policy to make
it more scientific and minimize
displacement, much along the lines of
the Gujarat model that enabled rapid
industrialization, by offering wasteland
for development.
There has been much criticism of
the Land Acquisition Act of 2013, which
the government and private players
say will make land purchases almost
impossible because it mandates high
compensation and resettlement and
rehabilitation of affected families.
The department of land resources,
under the ministry, will revisit the land-use
policy in the light of Gujarat’s
The Delhi Development Authority
(DDA) has said it is considering
to reserve 80 per cent of the flats
under Housing Scheme 2014 for
Delhi residents only. That means that
that people living in Noida, Gurgaon
and other satellite cities can only be
allotted homes from the remaining 20
per cent, officials said.
“We are looking at introducing a
condition in the DDA housing scheme
2014, under which 80 per cent of the
houses will be reserved for people
residing in Delhi. While a person
already owning a DDA flat cannot
apply under the scheme, those who
own builder or private houses can
apply,” said DDA Vice Chairman
Balvinder Kumar. This scheme is
expected to have 26,000 flats on offer
across various categories.
“We are considering introducing
a clause in the agreement whereby
these flats will only be registered
scientific model of land use for
industrialization to enforce it at the
all-India level.
“Such a plan will help limit
land acquisition and minimize
displacement. It will help in creative
integration of state plans on the one
hand and the national perspective of
development plan on the other,” said
an official, adding that officials will
soon visit the western state to study
its model.
The move will help industrialists
pick up plots within a short span
of time at a relatively low cost with
barely any obligation of rehabilitation
because these would be tracts of
wasteland. Besides, it will ensure that
after five years,’’ said Kumar. Many
people tend to buy DDA flats only to
sell it for a profit to builders at a later
stage. Such a clause would prevent
this, he said.
The much-awaited scheme comes
four years after DDA offered over
16,000 flats in its 2010 scheme. This
scheme will mainly comprise housing
for those from the economically
weaker sections. Previously, the DDA
used to announce housing schemes
every two years leading to a major
housing crunch in Delhi. Union Urban
Development Minister Venkaiah
Naidu had also emphasised the need
for DDA to create more housing .
Of the 26,000 flats, the first set of
15,000 flats will be ready by August-end
and another chunk by December-end.
About 1,000 houses will be
completed by March next year. The
houses will be priced from Rs 14-15
lakh to Rs 1 crore.
barely 38 per cent houses reported
construction of toilets in the last fiscal
because of insufficient funds and
lack of coordination while provision
for water and electricity, through
convergence, is still optional. The
Rural Development Ministry has
proposed to set up Gram in the
form of an autonomous registered
society to implement and monitor the
scheme at the national level.
industries come up in such regions,
which have been neglected, and
boost their local economy.
Today, most new factories are
coming up in developed areas, where
land acquisition is not only expensive
but also leads to extensive delays and
displaces a large number of families.
The changeover would require the
government to update the wasteland
atlas of the country with detailed
descriptions so that it can be used by
public and private players scouting for
hassle-free land.
Of the national land area of about
3,166 lakh hectares, 467 lakh hectares,
or 15 per cent, is wasteland, including
uncultivable land.
commercial properties, including
offices and shopping malls, stood at
Rs 1,950 crore last fiscal. It is targeting
8 per cent growth this financial year to
Rs 2,100 crore, according to analyst
presentation.
Rental income could reach Rs
2,500 crore during 2015-16 fiscal
on the back of normal 8-10 per cent
growth plus additional Rs 200 crore
coming from Noida mall, sources said.
DLF currently has about 28 million sq
ft of operational commercial area, of
which about 2.5 million sq ft is retail.
It has three operational malls in the
national capital.
South real estate firms tie up
to set up cement unit
Wi th cement manufacturer s
refusing to roll back prices, property
developers and builders in the south
are considering setting up their own
manufacturing units to meet their bulk
needs at lower costs.
A few key members of a committee,
comprising hundreds of property
developers and infrastructure firms,
said they were thinking of jointly
buying one of the distressed cement
factories in the south and deploying
the latest technologies to bring down
operational costs.
The factory will operate on a
cooperat ive model , they said.
“Some of our joint action committee
members have come up with this idea
to overcome the abnormal price hikes
by cartelised cement manufacturers,”
said C Shekar Reddy, national
president of real estate developers’
body Credai.
Reddy said several builders and
realtors conveyed their willingness
to invest Rs 10 crore each for the
proposed facility, which could have
a capacity of 1-3 million tons and
cost Rs 500-1,500 crore. Nearly
80 per cent of the country’s large
builders hail from Andhra Pradesh
and Telangana.
The cement indust ry in the
south grew at a mere 1 per cent
compounded annual growth rate
from April 2010 to March 2014,
compared with 6 per cent across the
country. The weak growth in the south
was mainly due to a political unrest in
Andhra Pradesh.

11. EINRTAINOTAL August 11-17, 2014 11
UK cities unveil £15 b plan
to improve transport
Five major cities in the north of
England have unveiled £15 billion plan
to boost road and rail infrastructure
in the region, under the One North
plan. The One North Consortium,
which comprises the city regions
of Liverpool, Manchester, Leeds,
Sheffield and Newcastle have outlined
a 15-year investment, aimed to boost
connectivity between cities across the
north, including a new east-west line
across the Pennines.
It complements the HS2 proposals
and includes proposals to increase
road capacity for both freight and
personal travel through extended
managed motorways; improve
regional rail networks; new rolling
stock, electrification of existing lines,
higher service frequencies and
addressing pinch-points on the rail
network.
The plan also includes improved
access to enable efficient freight
movements by rail, road and water
including ports, rail links and
distribution centres; building HS2; and
improve east/west rail freight capability
across the Pennines, linking major
ports to north/south rail routes.
Atkins designs ‘Window of
Guangzhou’ in China
Atkins has completed the design of
an office development called ‘Window
of Guangzhou’ in Guangzhou,
one of China’s biggest cities. It is
Atkins’ first architecture project for
CCCC following a memorandum of
understanding for a global strategic
cooperation between the firms signed
in April this year.
Under the contract, Atkins provided
architecture services from concept
through to extended preliminary
design stage for the new ‘Window
of Guangzhou’ development. It is
due to be completed in 2018, and
consists of three stand-alone office
Ferrovial consortium bags
expressway in Poland
A consortium comprising Ferrovial
Agroman subsidiary Budimex and
Germany-based Heilit+Woerner has
secured a contract to build a 15 km
section of Expressway S5 between
Wroclaw and Korzensko in south-west
Poland.
Work under the contract involves
upgrading adjacent roads, as well as
the construction of two new junctions,
11 bridges and service areas. The
buildings which will house high-end
office space.
Of the three buildings, two are said
to resemble floating windows, while
the third tower stands at 208 m tall.
From a distance the development is
meant to read as ‘001’, a symbolic
reference to Guangzhou being the first
Chinese city to open for international
trade on the ancient Silk Road. Atkins’
senior design director KY Cheung said,
“Our design provides a dramatic visual
impact, ensuring that the breathtaking
view of the Zhujiang River is maximized
for occupants and the community
behind the project as well.”
project is worth 113 million and is
set to be completed in two and a half
years.
Upon completion, Expressway S5
will connect Wroclaw with Poznan,
providing a direct link between south-west
Poland and the port city of
Gdansk via the junction with the A1
motorway. The Polish government has
approved a road plan for 2014-2017
with a budget of roughly 8.5 billion.
Kenya signs $478 m deal with
China firm for Lamu Port
The Kenya Ports Authority has
signed KES42 billion ($478 million)
contract with China Communication
C o n s t r u c t i o n C omp a n y f o r
development of the first three berths
of Lamu Port. The contract is a part
of the $24billion Lamu Port-South
Sudan-Ethiopia Transport corridor
that includes construction of 29
berths.
The signing of the agreement
was attended by President Uhuru
Kenyatta and Deputy President
William Ruto along with other Lamu
Hill International to renovate
terminal at Cairo airport
US e n g i n e e r i n g f i rm Hi l l
International has secured a contract
to manage the terminal renovations
project at Cairo international airport
in Egypt. Awarded by the Cairo
Airport Company, the contract forms
a part of a $500 million project that
includes the renovation of the existing
Acciona Ferrovial JV to design
Pacific Highway in Australia
Acciona Ferrovial joint venture
has been awarded a contract for the
design and construction of the Pacific
Highway duplication between Warrell
Creek and Nambucca Heads in
leaders. The construction is expected
to commence in September 2015.
Kenyatta said the commencement
of the project reinforces government’s
resolve to make infrastructure a key
facilitator of its social and economic
development. “The signing of this
contract is a major milestone in
delivering the LAPSSET Corridor
Program as well as achieving Kenya’s
Vision 2030,” added Kenyatta.
“The construction of the first
three berths will present a strong
case and trigger for participation of
terminal building, as well as the
construction of a new departure hall
and airside pier. Under the contract,
Hill International will provide project
management consultancy services
associated with the renovation and
development of Terminal 2 over the
next 15 months.
Australia. The 20 km Warrell Creek to
Nambucca Heads upgrade will make
it a four-lane divided road between
the Allgomera deviation, south of
Warrell Creek and Nambucca Heads.
the private sector in construction of
the remaining 29 berths and other
components of the corridor.”
The President also added that the
Ministry of Transport will conclude
the inter-governmental agreement
for development and operation of
the transport corridor with South
Sudan. As per the plans, the port
is estimated to manage some 24
million tons of cargo a year from
giant container ships, besides
providing infrastructure to support oil
discoveries in Kenya’s arid north.
Hill International Senior Vice
President Waleed Abdel Fattah said,
“This project will have a very positive
impact on business, tourism and the
overall economy. Upon completion
of the renovations, Terminal 2 will
handle approximately 7.5 million
passengers per year.
The project is jointly funded 80:20 by
the federal and state governments,
respectively. Australia Deputy Prime
Minister and Minister for Infrastructure
& Regional Development Warren
Truss said this is the latest installment
in the coalition government’s $5.64
billion commitment to duplicate the
Pacific Highway from Sydney to the
Queensland border.
The joint venture was announced
as the preferred tenderer in April and
with the contract now signed, detailed
design work and site preparation
is already underway. The Pacific
Highway is a top priority for the new
coalition government.
“That’s why we have pumped
an extra $2.1 billion into the Pacific
Highway to give commuters the safer,
more reliable and easier journey they
deserve and ensure this vital freight
route is up to the task ahead,” Truss
added. Construction of the major
work is scheduled to start in the
second half of this year.
MNC Infrastruktur Utama to begin
Ciawi-Sukabumi toll road in Indonesia
MNC Infrastruktur Utama, a part of the MNC Group conglomerate, will
commence the construction of the first phase of the 54 km long Ciawi-
Sukabumi toll road in West Java, Indonesia.
The total investment needed for the first phase reached $172.71million.
Half of the required funds will be taken from our internal cash, and the rest
will be funded by bank loans. The toll road will be built in four sections:
Section I Ciawi-Cigombong (15 km), section II Cigombong-Cibadak (12
km), Section III-Sukabumi Cibadak West (14 km), and section IV Sukabumi
West-East Sukabumi (13 km). The highway will be through four areas in
Bogor, Bogor, Sukabumi and Sukabumi District. Upon completion, the
road is expected to ease traffic congestion along the route actively used
for logistics distribution.
Thailand okays $75 b transport upgrade plan
Thailand's transport infrastructure is all set to undergo transformation
over the next eight years, following the approval of a $75 billion master plan
by the country's ruling military. The upgrade work will also see the extension
of elevated train lines in Bangkok and the metropolitan area, increasing the
capacity of airport and seaport improvements. Previous governments also
proposed plans to improve the ageing rail and road links in the country, but
these were put on hold due to frequent changes of governments.