All you need to know on the construction industry. A wholesome information.

1. June 09-15, 2014 1
An MMR, Braj Binani Group Publication Volume 3 l Issue No 23 l June 09-15, 2014 l Price: Rs 100
Banks may issue
infrastructure bonds soon
Given that banks remain the
main lenders to the infrastructure
space, the central bank believes it is
necessary to make it easier for them
to fund such loans as infrastructure
is a priority zone.
The regulator may also allow
The Reserve Bank of India (RBI),
in an effort to boost infrastructure
lending, is likely to allow banks to
issue infrastructure bonds. These
bonds will not attract the mandatory
cash reserve ratio (CRR) and statutory
liquidity ratio (SLR) provisions.
lending to the infrastructure sector in
April 2014 was up 11.1 per cent from
the same period last year and stood
at Rs 8,44,200 crore. This was lower
than the growth of 21.1 per cent seen
in the same period last year.
Indian banks, which have been
reeling under huge non-performing
assets, blame the stagnancy in the
infrastructure sector for their bad
loan pile-up. Banks that had lent to
the sector during the infrastructure
boom are now in trouble as stalled
projects are leading to borrowers not
repaying the loans.
Roads Ministry readies
list of 11 projects to be
awarded soon
The Roads Ministry has prepared
a list of 11 projects worth more than
Rs 18,000 crore that can be awarded
within the next six months. Transport
Minister Nitin Gadkari had asked for
a priority list of projects that can be
processed promptly, an official said.
“The appraisal process for most
of these projects is complete and we
will present these for the approval
of the minister. After that a cabinet
committee on economic affairs note
can be circulated,” said the official.
“We should be able to award these
projects with a six-month timeframe,”
he added.
The total length of these projects
is 1,300 km. The ministry has set an
internal target of awarding 8,500 km of
roads in the fiscal year ending March
next year. Of this 3,500 km of roads
projects are expected to be awarded
through the public-private partnership
(PPP) mode and the remaining under
the engineering, procurement and
construction (EPC) mode.
The list includes projects such as
Delhi-Meerut expressway and Eastern
Peripheral Expressway.
The push comes in the wake of
Prime Minister Narendra Modi calling
for a review meeting for different
sectors that is expected to be convened
soon. “We will include the list of these
projects too in the presentation to
be made to the Prime Minister,”
said another official, confirming the
development.
The ministry awarded just 3,169 km
of projects in the year ended March
31 against a target of 7,500 km. In the
previous year, it awarded 1,322 km of
projects against a target of 9,500 km.
“The ministry will be able to award
these projects as long they ensure
the projects are viable. Overall the
sentiment has improved,” said
Parvesh Minocha, Managing Director,
Feedback Infrastructure Services, an
infrastructure services company.
“There are companies who have
the resources to undertake these
projects but are only waiting for
good projects. On the other hand,
most other developers, who are in
a financially tight spot, are not in a
position to put spoiling bids. The era
of aggressive bidding is behind us,”
said Minocha.
The proposal for the 135 km
highway failed to get any bids despite
being kept open for months. The
project cost is estimated at Rs 4,500
crore. “There are concerns about how
much traffic will actually be diverted to
use the expressway,” said one of the
officials. “That is mainly why the private
sector did not come forth.”
The ministry is also exploring the
option of seeking a loan from the
Japan International Cooperation
Agency. The highway project that aims
to decongest traffic through the capital
has been stuck since 2007 because
of several controversies. The ministry
revived it last year after addressing
issues relating to toll fees and some
engineering specifications.
banks the flexibility to classify the
loans as standard assets even if the
repayment is not completed within
10 years. The idea seems to be to
structure the loan over a 25-year
period.
These bonds are expected to
Tata Housing to spend `3,000 cr
to buy more land
Tata Housing, the Tata Group’s
real estate company, plans to invest
Rs 3,000 crore to acquire more
land, including joint development
agreements, across major cities in
India in the current financial year.
“This year will be crucial for us.
We will be spending at least 50-60
per cent more on land acquisition
and joint development agreements
during the year as against FY14. Most
of it will be financed through internal
accruals,” said Brotin Banerjee, MD &
CEO, Tata Housing Development.
The company will focus on four
metros – Bengaluru, Kolkata, Delhi
NCR and Mumbai -- for its land
purchases and new projects, both
in the premium and affordable
category.
While proposed premium homes
will cost between Rs 6,500 and Rs
12,000 per sq ft, spread over 900-
3,500 sq ft each, depending on the
location, affordable homes will be
under Rs 40 lakh, between 450 and
1,250 sq ft.
“Around 65 per cent of the planned
launches will be in the premium
segment, while the rest will be in the
affordable category. Depending on
land feasibility, we will decide on the
launches,” said Banerjee.
The move will help Tata Realty add
90 million sq ft of additional property
in the next one year through new
launches. Currently, the Mumbai-based
realty firm has around 70
million sq ft under various stages of
development across eight states.
Of this 70 million, around 17-20
million sq ft was added last year. The
realty firm has been buying land since
last year, with major land parcels
like 7 acres from KEC international
0.47 per cent in Thane; 20 acres in
Bengaluru from Alstom 0.66 per cent
T&D India; 1.3 acres at Hailey Road
in Delhi and another land parcel at
Rajarhat in Kolkata.
It currently has projects in Mumbai,
Pune, Ahmedabad, Goa, Bengaluru,
Chennai, Gurgaon, Chandigarh,
Kolkata and Bhubaneswar, and is
exploring international markets,
including Sri Lanka and other South
Asian countries after venturing into
Maldives.
be subscribed by both retail and
institutional investors. Pension funds
and insurance funds are likely to be
buyers of these bonds.
Although the funds will be invested
in the infrastructure sector, they would
not be taking on a direct investment
risk to the infrastructure sector.
Typically, a bank needs to lend 40
per cent of the total advances to the
priority sector. However, the entire
amount raised from the bonds is likely
to be earmarked for infrastructure
loans.
According to the RBI data, bank

2. Cement June 09-15, 2014 2
Outlook for the cement industry
Infrastructure will
become the cement
industry’s growth engine
for the next 10 to 12
years
(Part 2)
Residential demand
How India consumes cement
is expected to change as different
segments see different rates of
growth. While demand from the
infrastructure sector will grow at a
high annual rate (12 to 13 per cent),
residential demand is expected to
grow at just 4 to 5 per cent.
At these rates, the infrastructure
sector would account for 40 per
cent of total cement demand by
2025. Still, although the residential
sector’s share of the cement market is
expected to decline, it will continue to
be a dominant segment and account
for a large share of demand in 2025,
leading to an Indian market that
closely resembles the consumption
profiles of economies such as the
United States and China.
The customer mix is also expected
to undergo a major shift, with the
share of large institutional buyers
increasing significantly. This could
lead to a change in the product
mix and the mode or form in which
cement is delivered. Demand for
OPC, RMC, and bulk cement is
expected to rise.
Infra plan crucial
After a decade of strong growth,
India’s economy has lost some
momentum recently. One primary
reason is that the creation of
infrastructure has not kept pace with
the demands of a growing economy.
While aggressive plans have been
included in the past two Five-Year
Plans, execution has been delayed
by policy bottlenecks regarding
Strong economic growth has
spurred a significant increase in
India’s cement demand over the
past two decades. Although the
demand growth has tapered off in
the past few years, the long-term
potential remains promising, as
India’s economy is expected to grow
between 6 and 7 per cent per year
over the next decade.
While residential and commercial
construction will continue to spur
cement demand, the industry’s real
boost is expected to come from an
increase in the pace of infrastructure
creation over the next 10 years.
Based on estimations from each
of the cement-consuming sectors,
demand is projected to grow between
2.5 and 2.7 times current volumes
and reach 550 to 600 mtpa by 2025.
The implied demand elasticity of
1.2 to 1.3 times GDP growth will
be similar to the average demand
elasticity over the past decade.
Maturity curve
Increased consumption will help
India’s cement industry evolve along
the industry maturity curve by 2025.
India could even overtake developed
countries such as the United States,
the United Kingdom, and Canada,
where incremental infrastructure
building has tapered off.
We expect India’s cement intensity
(cement consumption per GDP) to
be moderate, falling between high-intensity
countries such as China
and South Korea and low-intensity
markets such as South Africa and
Argentina.
This trend becomes evident when
examining historical data of other
economies that had similar per capita
GDP levels to that of India’s expected
2025 level of $6,900 purchasing
power parity. High cement-intensive
economies have higher levels of GCF,
with an average of 31 percent of total
GDP, and rapid rates of urbanization,
with an average annual increase in
urban population of 1.6 per cent in
the preceding five years.
land acquisition, environmental
clearances, and tariff setting. Project
financing issues and a shortage of
skilled manpower have also slowed
progress.
C h i n a ’ s i n f r a s t r u c t u r e
development—particularly in roads,
railways, ports, and power—stands
in sharp contrast to that of India. For
example, while India has added just
16,000 km of national highways in the
past 10 years, China has expanded
its network of expressways from less
than 25,000 km in 2002 to more than
75,000 km 10 years later.
China spends $116 per capita
annually on capital investments in
urban infrastructure, compared to $17
in India. For the cement industry, the
disparity between the two countries is
reflected in the significant difference
in per capita cement consumption.
An infrastructure investment of
between 9 and 12 per cent of GDP
will be required to enable sustained
economic growth in India. We expect
India to spend roughly $650 billion
on infrastructure development in the
12th Five-Year Plan, and close to $1
trillion and $1.4 trillion, respectively, in
the 13th and 14th Five-Year Plans.
About 55 to 60 per cent of that
expected spending will likely go to
cement-intensive activities such as
roads, bridges, power, and irrigation,
which together would represent 80
to 85 per cent of the infrastructure
sector’s total cement demand. Thus,
infrastructure will become the cement
industry’s growth engine for the next
10 to 12 years.
Higher cement intensity
Increasing cement intensity in
roads and irrigation projects is crucial
for achieving the full potential of
cement demand growth. Currently,
only about 3 per cent of roads in India
are concretized, compared to nearly
40 per cent in the United States.
Although concrete roads have
higher initial construction costs than
traditional bituminous roads, they
have much lower maintenance costs
and longer life spans and cause less
wear and tear on vehicles.
For instance, while the initial
construction cost for concrete roads
(assuming a typical pavement
composition for rural roads) is 25 to
30 per cent higher than bituminous
roads, the annual maintenance cost
is almost 20 per cent lower. Over
a 20-year period, the total lifecycle
cost of concrete roads ends up 20
overall cement demand from the
residential sector.
An increase in the number of
households due to nuclearization of
families. The average household size
in India is about 4.7 people, much
higher than in other large emerging
markets such as Brazil (3.3), China
(3.1), and Indonesia (4.2). Both
cultural and demographic factors
affect these numbers. While Indian
society has traditionally preferred the
joint (extended) family system, it is
also important to note that nearly 40
per cent of India’s current population
is under the age of 18.
Over the next 12 years, many of
these people will become independent
and create new households as
the share of people older than 18
increases from 60 per cent today to
66 per cent in 2025. Also, the average
size of rural households will fall from
4.8 to 4 by 2025, leading to increased
demand for new houses.
Upgrade of non-pucca
houses
Growing economic prosperity
and government focus on ultra-low-
cost housing could lead to a
sharp increase in pucca houses,
which consume more cement than
non-pucca homes, which in turn
increases the demand for cement in
the residential sector.
In rural areas, the share of pucca
homes is expected to increase from
46 per cent today to 60 per cent by
2025; in urban areas, the share will
rise from 68 to 80 per cent.
The share of large institutional
buyers will rise. The cement customer
mix is expected to undergo a
major shift, with the share of large
institutional buyers increasing from
30 per cent today to 40 per cent by
2025. This, coupled with an increase
in the share of RMC players, could
increase demand from direct buyers
of cement up to 65 to 70 per cent of
total demand.
India’s cement taxes are higher than in most developing countries
Direct and indirect taxes on cement
32%
35%
20%
15%
13%
36%
18%
16%
10%
India Pakistan Sri Lanka Bangladesh Nepal Brazil Turkey China Indonesia
Neighbouring countries Other developing countries
Demand for cement is expected to grow
Cement consumption (million tons per year)
Real GDP (trillion rupees)
CAGR
6.1%
7.2-7.8%
2012
185 kg
2020e
290-300 kg
2016e
225 kg
2025e
385-415 kg Consumption per capita
58
221
74
290
95
395-405
125
550-590
to 25 per cent lower than traditional
bituminous roads.
Similarly, cement-lined canals
offer benefits such as reduced water
loss from seepage, reduced silting,
and smaller land requirements. The
industry needs to take proactive
measures to increase awareness
and prompt the relevant authorities
to evaluate the benefits of concrete
roads and cement-lined canals over
the entire lifecycle.
Steady demand
The residential sector will remain
a leading consumer of cement,
accounting for 42 to 45 per cent of the
total cement demand in 2025. Demand
growth will be driven by three main
factors: Increasing urbanization.
India’s current level of urbanization
(31 per cent) is much lower than other
large developing markets such as
Brazil (85 per cent), Indonesia (51 per
cent), and China (52 per cent). But
by 2025, India’s urban population is
projected to comprise about 38 to 40
per cent of the total population.
Increased urbanization will lead
to a growth in demand for houses
in cities, where cement has a
larger penetration and the level of
development is higher, increasing
Expected shift
The cement customer mix is
expected to shift toward institutional
and transformational customers.
This shift in the customer mix will
arise from two primary trends. First,
there is a demand increase from
the infrastructure sector, where the
largest players prefer to buy cement
directly from the cement companies
or buy RMC.
As the demand from this segment
increases, the share of such direct
buyers will grow correspondingly.
Secondly, the number of large real
estate players is increasing as the
residential market consolidates
and leads to growth in the size and
share of large, organized real estate
players. Certain factors, such as an
increase in ultra-low-cost housing,
higher growth of large real estate
projects, or policies such as 100 per
cent foreign direct investment in real
estate, could accelerate this trend.
(Continued in next issue)
(Courtesy: AT Kearney-CII)

4. June 09-15, 2014 4
Housing for all by
2022: Naidu
Huda to spend `2,070 cr
on development works
The Haryana Urban Development
Authority (Huda) ) will spend Rs
2,070 crore for undertaking various
development works in urban areas of
the state during the current financial
year as against Rs 1,908 crore spent
by the authority during the last financial
year.
These budget approvals were
granted at a meeting of the Huda
held under the chairmanship of Chief
Minister Bhupinder Singh Hooda. It
was informed at the meeting that the
development works that would be
undertaken during the current financial
year included laying of water supply
pipeline of 287.97 km, sewerage
pipeline of 167.73 km and storm
water drainage pipeline of 170.83
km, construction of 329.39-km roads,
special repair of roads of 464.29 km,
erection of 9,087 poles and setting up
of 397 transformers.
As many as 41 projects of community
building are under construction,
whereas 85 new projects would be
also undertaken. The sub-committee
of Huda also approved the estimates
amounting to Rs 196 crore for nine
development works to be undertaken
in Gurgaon, Faridabad, Sonepat, Hisar
and Kaithal districts.
INFRASTRUCTURE
$176 m ADB loan
for Jaipur Metro
The Asian Development Bank
(ADB) and the Government of India
have signed $176 million loan
agreement that will fund the extension
of Jaipur’s first Metro line. Extending
the line will reduce both congestion
and pollution in the fast-growing
heritage city.
“Efficient and modern public
transport is key to making cities more
livable by making it easier for people
to get to their workplace and home
again. It also means fewer cars on
roads which also lead to cleaner air,”
said M Teresa Kho, Country Director
of ADB’s India Resident Mission, who
signed the loan agreement on behalf
of the ADB.
Nilaya Mitash, Joint Secretary
(multilateral institutions), Department
of Economic Affairs at the Ministry
of Finance, signed on behalf of
the Government of India. The
project agreements were signed
by DB Gupta, Principal Secretary,
Urban Development & Housing,
the Government of Rajasthan and
Nihal Chand Goel, Chairman &
Managing Director, the Jaipur Metro
Rail Corporation Ltd.
In July, a new 9.7-km elevated Line
1 Metro line from Mansarovar, in the
Highlighting the priorities of his
ministry, Union Minister for Urban
Development, Housing & Poverty
Alleviation Venkaiah Naidu said that
private sector, as part of their social
responsibility, should go for housing
for their staff.
“I want to motivate private sector
to go for housing for their staff as part
of their social responsibility because
‘housing for all by 2022’ is the motto
of the government.”
Describing it as “a gigantic task”,
he said government alone will not
be able to achieve it and so need to
western part of the city, to Chandpole,
on the western edge of the central
business district will open. The ADB’s
loan will help finance an additional
2.3 km underground stretch from
Chandpole to Badi Chopar.
involve public private partnership and
the corporate sector.
“We want to involve the state, local
bodies, private sector, public sector in
this massive ambitious programme of
housing for all,” he said. “It was 17 per
cent in 1951 and now it is more than 32
per cent. Going by the trend by 2050,
50 per cent of our population would
migrate to towns.”
Listing out the focus areas for
the government and his ministry
with regard to urban issues, he said,
“mission on smart satellite twin cities
and clean cities will be our priority.”
Odisha to fast track `3,300-cr
health infra projects
Finance Ministry to boost infra investment
The Finance Ministry is drawing
up a two-pronged strategy to boost
infrastructure investment. While other
ministries will be asked to take care of
policy matters related to investments
in the sectors they administer, North
Block will work on the financial side
issues to speed up the process.
The Finance Ministry will ensure
that all payments to private players
that are stuck with government are
released and stalled projects get a
push. The second and more crucial
element is to create more room for
banks to lend to the sector.
Infrastructure debt funds and
infrastructure finance companies will
take over some projects in debt-laden
sectors, such as power, by acquiring
their loans from banks. They would
acquire projects that are ready for
commercial operations as this would
help them reduce risks associated
with investments.
The mini s t r y i s look ing at
mechanisms such as infrastructure
debt funds and trusts to take over
projects that have begun operations
and have revenue stream flowing.
Besides, banks also have limitations
with regard to long-term infrastructure
lending as that leads to asset-liability
mismatch.
The infrastructure sector’s funding
requirement is pegged at $1 trillion
(about Rs 59 lakh crore) in the 12th
Plan period through March 2017,
and the private sector is expected to
meet about 40 per cent of this. The
Finance Ministry is also pushing for
expeditious clearance of pending
payments to the private sector to lift
business sentiment as also to make
capital available to them.
The Odisha government has
decided to fast track clearance of
health infrastructure project proposals
of the National Health Mission (NHM)
by authorizing district level officers to
clear applications. The total cost of
projects involves Rs 3,300 crore and
is scheduled to be spent in three years
starting 2014-15.
In a recently concluded meeting
under the chairmanship of Chief
Secretary, J K Mohapatra, the
Works Department was instructed
to prepare integrated building
designs by combining resources of
civil, electric and internal sanitation
works for completion of the building
construction in one go. The Public
Health Department has been directed
to make all necessary water and
sanitation connection plan for health
institutions well in advance.
T h e e xpe n s e s h a v e b e e n
earmarked under the perspective
development plan prepared by NHM
for development of health infrastructure
at the grassroots level in Odisha.
According to the plan, decisions
have been taken for completion of up
gradation of all sub-centre buildings
by 2017, complete construction of
all PHC buildings, establishment of
high-end critical care units like Sick
Newborn Care Unit (SNCU), New
Born Stabilization Unit (NBSU), New
Born Care Corner ( NBCC) at all
delivery-point hospitals, construction
of accommodation for health staff,
etc.
Along with infrastructure push, the
state government also wants all health
institutions in the state be equipped
with adequate trained staffs. The
Chief Secretary has asked the project
implementing authorities to see that
all district hospitals are fully equipped
with latest medical tools and adequate
nursing staff.
UPA-II spiked road projects
worth `30k cr
Revival of the highway sector
seems to be a tough task for the
new government. While the previous
UPA-II has stalled awarding of fresh
projects, over a dozen premium
projects involving more than Rs 17,000
crore investments were terminated
recently.
With this, the total number of
terminated projects increased to 28
since 2011, entailing an investment
of around Rs 30,000 crore, sources
said. According to sources, at least
half of these terminated projects,
covering about 2,900 km, were bid
out with premium, where developers
had promised to give annual upfront
revenue to the National Highways
Authority of India (NHAI. But in many
cases, the NHAI could not provide
land and get clearances in time, while
financial slowdown hit developers
badly.
It is learnt that 14-15 terminated
projects, which have been foreclosed
amicably between the NHAI and
developers for defaults on their part,
will be awarded again with new
conditions. “But before we invite
bids there is a need to hold talks with
developers and bankers to address
their concerns. We also need to find
out whether enough land is available
and whether we have the statutory
clearances,” said an official at the
NHAI.
Road Transport & Highways
Minister, Nitin Gadkari, has asked the
NHAI officials to address irritants in the
concession agreement and even to go
for a fresh one if the need be, rather
than focus more on awarding. “The
intent seems to ensure that projects
can take off quickly and are completed
without time and cost overrun,” said a
road transport ministry official.

5. INFRASTRUCTURE June 09-15, 2014 5
Cities of the future
For a successful New
City development, the
creation of social and
physical infrastructure is
of equal importance
Su s t a i n abl e a nd i n c l u s i v e
urban development is of particular
importance at this juncture of our
economic growth. With the urban
infrastructure of our major metropolitan
cities bursting at the seams from
increasing urban migratory patterns—
which is only set to accelerate in
years to come—the development of
new integrated cities has become the
need of the hour.
Such planned des ign and
development of new urban landscapes
should not only address present
needs, but should also be capable
of foreseeing and accommodating
future requirements as well. ‘Planning’
being the keyword in this context,
there is a rising requirement for the
integration of economic, social and
environmental approaches towards
development.
Lack of long-term vision
The main challenge facing such
development initiatives is the lack
of any long-term vision in new town
development and urban infrastructure
planning in the country. What is
missing is a clearly defined ‘New City
Policy’ or ‘Future City Policy’ from
the government, together with an
umbrella organization for the same.
Consequently, organizations like
the Delhi-Mumbai Industrial Corridor
Development Corporation (DMICDC)
and town planning agencies like
the City & Industrial Development
Corporation of Maharashtra Ltd
(Cidco) work independently, without
any overall coherence or long-term
master plan vision for the country to
weave all their large, regional-level
development projects together.
Even state-level policies often
fall short, and fail to keep up with a
larger national vision. An instance
of this would be the difficulties
and/or difference in planning and
implementation approach faced
by large regional infrastructure
development bodies for nodal projects
across different states.
It has been observed that at
present small-scale projects, even
private initiatives, work successfully
to a certain extent—a case in point
being Magarpatta Cyber City in Pune.
Problems begin, however, when such
projects are scaled up to larger city-level
or regional level ventures, at
which point the projects fall through
because of the lack of larger mapping
efforts to drive such development
planning attempts forward.
Workable approach
The Town Planning Scheme
(TPS)—also known as the Land
Pooling Scheme (LPS)—has been a
workable approach for the planning
and development of new towns.
It is also included in the Urban
Development Plan Formulation &
Implementation (UDPFI) guidelines of
the Ministry of Urban Development.
State as well as private/semi-private
development firms have
considered such development
policies for preparing comprehensive
regional plans—particularly for
addressing problems arising out
creating dynamic planning efforts
with periodic fast track review and
implementation mechanisms.
Rampant urbanization
Smarter transit initiatives for DLF’s
Cyber City development in Gurgaon,
for instance, began with road widening
projects before a rapid Metro rail was
introduced, and still later road under-pass
work was added on to benefit
commuters from multiple nodes.
For a successful New Ci t y
development, however, the creation
of social and physical infrastructure
is of equal importance. By way
of a recent example, till such
infrastructure additions like schools,
malls, hospitals and expressways
had been put in place, Greater
Noida was just an area dominated
by real estate development, waiting
to become operational and attract a
share of the National Capital Region’s
population.
But what is to ensure that
independent, even private initiatives
co-operate with each other in building
new integrated cities in India? The
problems created by rampant
urbanization are among the most
important challenges of our times—
and they also represent one of the
greatest opportunities for the private
sector in our country.
By taking advantage of this
development gap, India’s construction
and real estate business is uniquely
positioned to shape sustainable and
economically competitive cities of
the future.
of disconnected development
along suburban/peripheral zones
of metropolitan centres, industrial
corridors and large township
development.
L a r g e r Tr a n s i t ’ -Or i e n t e d
Development (Tod) concepts have
metamorphosed over the years too.
A case in point would be Cidco’s
ongoing development of Navi
Mumbai, as an example of a functional
new city with ongoing transit-oriented
infrastructure development.
Other recent instances of Tod
planning for new cities or Smart City
development would be the state
government of Chhattisgarh’s master
planning initiative for Naya Raipur.
Keeping abreast of rapidly changing
technology in this arena could help
in creating Integrated multi-modal
transport systems, as well as in
Anshuman
Magazine
CMD, CBRE South
Asia Pvt Ltd
Magarpatta Cyber City, Pune

6. PROJECTS UPDAET June 09-15, 2014 6
Highways Ministry plans to
expedite slow road projects
Slow-moving highway projects
are likely to be kick-started with the
Highways Ministry planning to review
all ongoing projects along with all
stakeholders.
The new Road Transport, Highways
& Shipping Minister, Nitin Gadkari, held
a meeting with the Highways Ministry
and the National Highways Authority
of India (NHAI) officials where it was
decided that region-wise reviews of
projects will be held, especially those
that are languishing.
The ministry will also take up the
issue of land acquisition costs as
per the new Land Act and apprise
the minister of the difficulties it will
impose on the highways sector
and possible alternatives. These
are part of an action plan thrashed
out at the meeting held at the NHAI
headquarters on May 30.
“Region-wise meetings of three
to four states at a time will be held to
discuss ongoing projects, particularly
those that are progressing slowly.
The meeting will include key officials
from the NHAI, state governments
as well as key concessionaires who
are working on projects in those
regions,” said an official aware of the
development.
The NHAI officials said there are
about 45-50 projects that are behind
schedule and a list will be given to the
minister specifying the bottlenecks
and the status of each of these
projects. Of these, about 10-15 are in
a bad shape where work has stopped
and there’s little possibility of any
progress, said an official.
The Highways Ministry, which
had recently approached the former
government about the increase in
land costs and the impact of the new
Land Acquisition Act on key projects
like the Delhi-Jaipur Expressway, will
now identify difficulties that the Act
poses with regard to its impact on the
road sector and apprise the minister
of the same.
Centre may fund building
multi-use terminal in Iranian port
The Jawaharlal Nehru (JNPT) and
Kandla Port trusts are in discussion
with the government of Iran for
operating a multi-purpose terminal
at the port of Chabahar on the Gulf
of Oman, near Iran’s border with
Pakistan. JNPT, the country’s largest
container port at Navi Mumbai, and
Kandla in Gujarat’s Kutch, the largest
port by total cargo, will come together
to form a Special Purpose Vehicle to
operate the terminal at Chabahar,
under a revenue-share agreement
with the Port & Maritime Organization,
Iran. The agreement would be for a
minimum of 20 years.
The two major ports are likely to
seek financial assistance from the
External Affairs Ministry to operate
Chabahar, of strategic interest
to India for decades. The Union
Shipping Ministry finds the project
financially unviable and, therefore,
wants the ministry— which is piloting
the project — to provide a one-time
capital grant and an annual grant to
make the project sustainable.
“We are in the process of
formulating a Cabinet note asking
for a grant, since it has to make
financial sense for the Indian ports
to invest in the terminal. The final
decision in this matter has to be taken
by the External Affairs Ministry,” said
a senior government official.
Experts said Chabahar’s economic
potential cannot be estimated in the
short run and can be done only after
a certain time frame. The estimated
project cost is around $100 million.
The port project has been delayed
because of various reasons, including
the US and European Union sanctions
on Iran because of its nuclear
programme. It is believed Chabahar
would give India an unprecedented
geopolitical network.
Because of its strategic location
near the landlocked countries of
Afghanistan and Turkmenistan, India
would get road access to these
countries. “This project could give us
access to the Turkmenistan and Iran
pipeline, since India could operate the
LNG terminal at Chabahar. We can
also readily approach Central Asia
and not be blocked by Pakistan,” said
Talmiz Ahmed, former ambassador
to the UAE.
NHAI to develop Paradip-Daitary
highway on OMT mode
With Paradip-Daitary expressway in
Odisha in pathetic shape, the National
Highway Authority of India (NHAI) has
decided to develop the highway on
an ‘Operate-Maintain Transfer’ (OMT)
mode, said the NHAI officials.
The tender-bidding process is on
to hand over maintenance work of the
highway to a private firm. The contract
would be for six years to repair and
maintain the highway. As the highway
is in bad shape in certain patches, a
local construction company has been
entrusted to undertake repair till OMT
bid is finalized, said the officials.
The busy highway, otherwise
called as Paradip-Daitary expressway,
incidentally happens to be the principal
road between the mineral-rich areas
and Paradip Port, a stretch of 77 km.
Replete with potholes, the highway has
come under roadside encroachment
at strategic traffic junctions. A 10 km
stretch of the road (Bhutamundai
to Atharbanki) is not in a motorable
condition and one has to undergo a
bitter experience at many places on the
road as it is replete with hundreds of
potholes. “We have urged the officials
to set right the road in perfect condition
so as to ensure speedy travel,” said
Paradip Private Truck Operators’ Union
President Sumant Biswal.
Essar Projects-Saudi co
tie-up for construction
services
Essar Projects has entered into
a deal with Mohammed Al-Mojil
Group (MMG), one of the largest
Saudi construction service providers,
to supply construction services for
project developments in Jazan.
This will include Saudi Aramco’s
400,000 barrels per day Jazan
refinery, which is expected to be the
mainstay of a new economic city
fulfilling the objectives of the economic
development in Jazan, Saudi Arabia.
The refinery is expected to process
per day up to 75,000 barrel gasoline,
250,000 barrel low-sulfur diesel and
80,000 barrel vacuum distillation
material to be used as fuel for power
plants.
Essar Projects is a global
EPC (engineering, procurement,
construction) contractor headquartered
in Dubai. The company has a large
engineering and procurement division
as well as operating extensive
fabrication facilities and a large
construction equipment bank operated
from a low-cost Indian base.
The deal aligns with MMG’s
restructuring plan, and its new
business model, focusing on core
business units of skilled workforce,
scaffolding, steel fabrication, camping/
catering plus other services required
by the construction industry, and
Essar Projects’ goal to be immediately
operative in Saudi Arabia.
Go-ahead given for
Vizhinjam Port project
tender
The southern bench of the National
Green Tribunal has allowed the Kerala
government to go ahead with tenders
for the Vizhinjam international seaport
and container terminal project.
Official sources said the tribunal
made the observation while hearing an
appeal challenging the environmental
clearance given to the project by the
UPA-2 government.
Vizhinjam International Seaport Ltd
(VISL), the company that is piloting
the project, may proceed with the
tender procedures initiated by it to
select a port operator. The tribunal
has posted the next hearing in the
case against the project to July 1,
said sources.
A consortium of South Korean
business conglomerate Hyundai
and Indian steel industry player
$310.2 m loan pact with
WB for U’khand, Maha
The Centre has signed agreements
with the World Bank for loans worth
$310.2 million for funding development
programmes in Uttarakhand and
Maharashtra. These programmes
include watershed development, rural
water supply and sanitation in these
two states.
The agreements include loan of
$165 million for Maharashtra rural water
supply and sanitation programme,
$121.20 million credit for Uttarakhand
decentralized watershed development
project and $ 24 million for additional
financing of Uttarakhand rural water
supply and sanitation.
T h e wa t e r s h ed pr o j e c t i n
Uttarakhand seeks to increase
efficiency of natural resource use and
productivity of rain-fed agriculture.
It is expected to be completed by
Concast are among the five port
operators who have responded to
the global tender. The other four are
Gammon Infrastructure, Essar Ports,
Adani Ports and Special Economic
Zone and a consortium of Spanish
construction firm Obrascon Huarte
Lain and Srei Infrastructure.
VISL had earlier called for Requests
for Qualification (RfQ) to build the
port superstructure and operate
the proposed deepwater port and
container transhipment terminal. The
same five players have responded
to the other RFQ for engineering,
procurement and construction works
floated separately.
Deadline for the first tender (building
superstructure and operating the port)
was March 10, while the last date for
the second tender was June 30.
September 2021, said an official
release.
The $165 million credit agreement
has the object ive to improve
performance of Maharashtra’s sector
institution in planning, implementation
and monitoring of its rural water supply
and sanitation programme, improve
access to quality and sustainable
services around urban villages.
The closing date for the project is
March 31, 2020. The $24 million project
for Uttarakhand has the objective
to improve effectiveness of rural
water supply and sanitation services
through decentralization and restore
services of damaged schemes in the
disaster affected areas in the state
of Uttarakhand. The programme is
expected to be completed by June
30, 2015.

7. IN PERSON June 09-15, 2014 7
‘Major driver for zinc galvanizing is the
growth of construction and infra sectors’
16th June 2014
& Escalators
Elevators
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Market for escalators & elevators
Growth drivers - Rapid urbanisation, Tier II & III cities,
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Challenges & solutions to tall structures
Elevator technology & solutions: Concepts for tall
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Quality & brand: value, features & benefits
Installations and customer services
Opportunities for component manufacturers
For further details:
Tel. : +91-22-22660623 / 22664710 /22666428
Email : contact@konstructionreview.com
Hindustan Zinc Ltd (HZL), a Vedanta
Group company, is one of the largest
integrated producers of zinc-lead and
silver globally.
With a world-class resource base,
the company has a total reserves
and resources of 348.3 million tons
and average zinc-lead reserve grade
of 12 per cent. The company has a
track record of consistently growing
its reserves and resource base since
2003, and currently has a mine life of
over 25 years.
What are the key demand drivers for
zinc in India?
The highest consumption of zinc
is in galvanizing of steel and hence
the demand of zinc follows closely
the demand of coated steel products.
The major driver for zinc galvanizing
is the growth of construction and
infrastructure in the country.
The potential for the growth of zinc
in future is immense as the current
per capita consumption is only 0.5 kg
against the world average of over 1.5
kg. With the growth of infrastructure
development in roads, railways, ports,
refineries, airports, mass rapid transit
systems, etc, the consumption of steel
and zinc is bound to increase.
How do you see the current
slowdown of steel sector and its
impact on zinc sector? You are a big
supporter of the idea ‘growth with
responsibility’. Would you like to
share your thoughts on this?
Our company believes in inclusive
growth along with our customers,
and are continuously engaged in
developing the market for zinc-coated
steel in construction and automobiles;
for die casting in hardware, bathware ,
kitchenware; and for zinc ash in zinc-based
fertilizers in agriculture.
We arrange regular visits from
subject experts of international repute
in galvanizing, diecasting, fertilizer and
help in transition of best practices and
latest technology to Indian producers
which help them in increasing the scale
of operations, product development
and application development.
We work closely with the International
Zinc Association (IZA) and the Indian
Lead & Zinc Development Association
(ILZDA) to deliver technical and market
development education to the industry.
We want the country to save losses
on corrosion to steel infrastructure
and utilize tax payer’s money in more
development work rather than in
maintenance and repair of corroded
steel. We want farmers to reap benefits
from higher crop yield and better
preservation of fertility of soil by using
zinc-based micronutrient fertilizers
and thus contribute in solving the food
problem of the country.
new mine development in a timely
manner.
At the same time, global zinc
demand has been strong, growing at
a 5-6 per cent with China and India
driving this growth. The Indian zinc
demand has seen robust growth in
2013, mainly on account of demand
from the galvanizing sector.
This momentum is expected to
continue in the next few years as
investment in infrastructure projects
is expected to support demand of
industrial metals including zinc. Various
new developments for zinc application
are further expected to buoy domestic
demand.
What are the new emerging
appl i c a t ions of z inc being
developed?
Lots of new applications are being
promoted in India by the zinc industry
with the help of experts of IZA. These
applications are not only cost-effective
in comparison to other alternate
materials, but also are proven success
in lots of global markets.
These tried and tested applications
significantly enhance the life of the
product and reduce the lifecycle cost.
area of bars and exerts pressure
on concrete, leading to breakage of
concrete and falling of structure. Such
situation may lead to accident and
pose a serious threat to safety.
We are helping the construction
industry getting familiar with the
galvanized rebar, which are zinc-coated
steel bars and provide the
best cost-effective solution against
the cracking of concrete and corrosion
problem in RCC structure. We are
also helping galvanizers to increase
availability of galvanized rebars by
adopting the continuous galvanizing
process for higher productivity.
Zinc-coated steel sheets in
automobiles: Perforation of steel
body of automobiles and damage
to structure of vehicle is a common
problem caused by corrosion of steel
especially in corrosive environment
like coastal areas and high rainfall
region.
The usage of zinc-coated steel
sheets in passenger cars could
avoid this corrosion problem and
significantly increases the life of
the body of a car. This application
is prevalent in North America and
Europe markets with 100 per cent
usage rate and has started picking
up in India also.
Zinc metallization: Zinc metallization
of steel bridges, railway track liners,
etc can be done on the spot and
on existing steel structures that are
already exposed to atmosphere. Zinc
metallization is a very effective way that
can help in reducing the maintenance
overhead, especially in coastal areas
and avoiding a loss to the extent of Rs
400 crore every year in steel corrosion-related
losses to railway.
What is your forecast for zinc prices
in the near-term?
Zinc prices are poised to move
higher on the back of imminent mine
closures and steady demand growth.
They are anticipated to rise gradually
to around $2300-2400 range by 2015,
along with stronger premiums.
“We want the country to save losses on corrosion to steel infrastructure
and utilize tax payer’s money in more development work rather than on
maintenance and repair of corroded steel,” says the Hindustan Zinc
Ltd’s Chief Marketing Officer, Rajesh Mohata, in an interview with
Paresh Parmar. Excerpts:
How do you see the zinc market at
present?
Global zinc refined metal market
was in deficit as Chinese smelter
cut production last year due to low
margins, which also resulted in surplus
in China’s and global concentrate
market. The current zinc mine supply
along with existing inventories is
sufficient to satisfy demand from
smelter.
However, this surplus is forecast to
gradually shrink and turn to deficit as
some high profile mines are expected
to close in coming three to four years.
A total of 1.8 million MT per annum
of global mine capability will be
eliminated due to closure by 2018,
rising to 2.2 million MT per annum
in 2019.
Whilst some of the extra mine
capacity will come from expansions
and mine life extensions of existing
mines, the majority will be from new
mines. However, the current level
of metal prices is not supportive for
Some of these applications include:
Galvanized rebars: Traditionally
TMT bars are used in RCC structures,
but over a period of time TMT bars
start getting corroded when moisture
seeps through porous concrete and
attacks steel.
Rust formation increases surface
HZL smelter at Dariba

8. real estate June 09-15, 2014 8
Top investment option
There will be significant
appreciation in real
estate prices on the
heels of higher demand
in coming years
Global investors are now markedly
optimistic about the Indian economy,
which is expected to witness more
than 100 per cent increase in foreign
investment inflows, both via FDIs and
FIIs, to above $60 billion in the current
financial year, as compared to $29
billion during FY 2013-14.
The Urban Development Ministry
is expected to repeal the existing
restrictions on real estate firms by
allowing foreign investment up to 49
per cent, free of all conditions.
This will help the real estate sector
to raise foreign capital at competitive
rates and reduce stakeholder
dependency on the beleaguered
local financial institutions. Foreign
capital for urban renewal and slum
redevelopment projects is also
expected to see major relaxations.
Retailers to reap benefits
The retail sector is also expecting
significantly enhanced domestic as
well as foreign investments. India’s
large but capital-constrained retailers
have welcomed the liberalised rules
that are expected to bring funding
and new technologies into the sector.
As a result, demand for retail space is
going to increase enormously as more
and more domestic retailers plunge in
to reap benefits of the new policies.
Boost to logistics
T h e c omp l e t i o n o f l a r g e
infrastructure projects like the DMIC
(Delhi Mumbai Industrial Corridor) and
the DFC (Dedicated Freight Corridor)
will be expedited. This, in turn, would
mean development of many new cities
across the belt of these projects.
T h e s e ma s s i v e o n g o i n g
infrastructure projects will lead to
a huge demand for warehouses,
thereby giving a significant boost to
warehousing and logistics-related
real estate demand. Once completed,
the growth of real estate at India’s
hinterlands that will be connected by
these corridors will be exponential.
In terms of real estate, some of the
For the common man of India, the
dream to own a house will soon turn
into reality with the Narendra Modi-led
NDA government taking charge.
Issues such as affordability of real
estate, delayed construction projects,
delays due to litigations surrounding
real estate projects, etc impacted
developers as well as consumers.
The new government promises
to aggressively promote affordable
housing. Property is once again
going to become the most popular
investment option, as there will be
significant appreciation in real estate
prices on the heels of higher demand
in coming years. With the easing of
regulations, developers are expected
to speed up the construction process,
providing relief to buyers who have
already invested.
The big names of the Indian
industry have welcomed the new
government with a hope that it will
bring the economy back on track and
raise the currently plummeting GDP to
8-9 per cent in the coming fiscal.
The new government at the Centre
is expected to infuse life in the existing
policy paralysis in the country by
removing major bottlenecks that are
deterring growth.
Fund flows relaxed
FDI in the Indian real estate sector
is expected to get a lift, resulting
in amplification of fund flows and
strengthening of the battered Indian
rupee. With a clear majority triumph,
the incumbent government will enjoy
unwavering stability at the Centre,
which will in turn encourage investors’
sentiments with regards to the real
estate market.
urgent steps that the NDA government
needs to take with immediate effect
are:
Reversal of
Land Acquisition Act
Clearance of pending receivables
to the private sector via fast-tracked
bureaucratic decision-making
Provision of fiscal stimuli to improve
industrial growth
Creation of investment-friendly real
estate market via lowered interest
rates and increased employment
generation.
Further, the real estate market
expects the government and the RBI
to be on the same page with respect
to checking inflation and curtailing
of interest rates, so as to revive the
tumbling demand for property in India.
Developers’ hopes
India’s developers are hoping
that:
The new government will expedite
the process of granting regulatory
approvals. The chronic lag in this
Truth about ‘Dream Home’
The original blueprint of
our dream home tends
to linger -- and this is
where many aspiring
home buyers make
serious mistakes
Let us examine this in some depth.
Home ownership is not a desire we
suddenly wake up with one morning --
as Indians, it is practically something
we grow up with. It is the highest
ideal of the Indian way of life to own a
home, so we dream about ours from
very early on. Usually, this ‘dream
home’ is larger than life, beautifully
decorated, in an impeccably planned
neighbourhood and the envy of our
friends and relatives.
Mental imagery
With the passage of time, our
dream home tends to become a little
more realistic. For example, most of
us have to accept that a bungalow
in the classiest part of the city may
When you look at the hoardings
and advertisements put up by real
estate developers, the phrase ‘dream
home’ is almost always part of the
promotion. And since we all dream
of owning our home one day, this is
definitely a useful psychological hook
to use in property promotion. But what
really constitutes your dream home?
The new government will ease
land acquisition parameters so that
availability of land is no longer a major
constraint. Difficulties in acquiring land
due to the current policies have led to
vastly escalated real estate cost.
With the slowdown in home sales,
developers have been battling a severe
liquidity crunch and a rise in their
inventory levels. Many prospective
buyers have abstained from investing
in property because of market
negativity, an unstable government at
the centre, high inflation, high interest
rates on home loans, etc.
Now, with the stock market rocketing
and the Indian rupee appreciating,
these buyers are expected to snap
into action. Increased sales, along
with availability of funds from both
domestic and foreign investors, will
bring significant respite to developers
and finally bring an end to the liquidity
crunch that they have been facing.
Major promises
The three major promises made by
the NDA in their manifesto that have
Planning for low-cost housing
Modi’s pledge to implement an
affordable housing policy and thereby
provide homes to every Indian family
presents a $150 billion business
opportunity to the sector. The real
estate industry now also has real
hopes of being granted the coveted
industry status, which will further ease
fund flows.
Meanwhile, consumers are
optimistic about the impact that the
new government will have on real
estate pricing, and expect a reduction
in home loans, the implementation of
the proposed GST framework and the
implied tax benefits to buyers.
not be within our means. In other
words, the mental imagery of a
mansion surrounded by lush lawns
and trees lining the compound fade,
to be replaced by a spacious, ultra-modern
flat.
By the time we have launched our
career and managed to save enough
money for a down payment, even
this picture will have moderated in
accordance with new realities such
as actual spending power.
Nevertheless, the original blueprint
of our dream home tends to linger
-- and this is where many aspiring
home buyers make serious mistakes
during the home selection process.
The maximum mistakes in this respect
Arvind Jain
Managing Director,
Pride Group
are committed on the resale.
The ideal home for you should
not be as close a match of your
dream picture of it, regardless of how
tempered it has become by reality.
For instance, you should not have to
pay for the expensive interior decor
and German modular kitchen that the
previous owner has put in. Nor should
you have to pay for two parking
spaces when you have no intention of
ever owning more than one car.
Factors which affect
In actual fact, the factors on which
you should buy a home must be:
Price: Can you afford it, are you
getting what you paid for according
to the prevailing property market
rates, and have you factored in all the
hidden and future costs?
Size: Is the home large enough
for you now as well as your future
needs?
Locality: Is it safe for your, does
it have the right conveniences within
reach and can you feasibly travel to
and from your place of work from
there every day?
Investment value: Will it appreciate
sufficiently to enable you to sell it at
some point in the future and move to
another home? Is the building new
enough to prevent investment erosion
due to age-related depreciation of the
building?
All these factors are most readily
visible when you buy a new property
rather than a resale one. Properties in
new projects being sold by reputed
developers provide you with a
WYSIWYG (What You See Is What
You Get) opportunity.
While it may not be anywhere close
to your original ‘dream home’, it is a
fresh, blank canvas with sufficient
potential to paint a realistic, real-time
dream on.
By the same coin, many properties
on the resale market are pictures
drawn on the canvas of other people’s
dreams. Often, you have to pay for
things you don’t really want and inherit
structural or design aspects that you
cannot refashion to match your own
vision.
regard has been a major obstacle for
most of their projects.
The Real Estate Development
Regulation & Development bill, which
has been lingering for quite some time
now, will be passed.
direct pertinence to the real estate
sector are:
The development of 100 new
cities
Putting a new land use policy in
place
Santhosh
Kumar
CEO - Operations,
Jones Lang LaSalle
India

9. EQUIPEMNT June 09-15, 2014 9
Tata-Hitachi looks to
launch 100-ton dumper
in 2016
investment of around Rs 600 crore.
The JV expects growth in the current
fiscal to be around 5 per cent, while
the growth for next fiscal year would
be up to 15 per cent.
With the budget expected in almost
two months down the line, the JV said,
“We are looking at 15 per cent growth
next year and the following year to see
a growth of 20 per cent,” said Sinha.
CECE Congress
in Antwerp with focus
on ‘agility’
How to become more agile in a
fast changing environment? This is
the core topic of this year’s CECE
Congress 2014 which is being held
from October 16 to 17 in Antwerp in
Belgium.
Despite good signs for 2014,
the situation for the construction
equipment industry in Europe remains
challenging. Debt problems have
not been solved by many countries,
demand is only slightly picking up,
labour costs are high, products are
changing fast and competition from
outside Europe is growing.
It is crucial for the construction
equipment industry to be flexible in
terms of management of people,
demand, new and changing products
and volumes, change of construction
processes and of customers’
requirements. Companies need to be
innovative in marketing, in production
processes and product design. “This
is the only way to win in Europe,” said
Eric Lepine, President of CECE.
“At the congress we want to share
best practice in our industry, and best
practices from other industries, like
from the car sector,” Lepine pointed
out his goals for the event.
The congress should provide
company representatives with new
insights. “We would like to raise
awareness among companies for
these challenges and would like them
to identify the areas where they may
explore their potential.”
Manufacturing is now widely
recognized as a domain where
innovation is critical. CECE has invited
an excellent panel of speakers, CEOs
of companies like Volvo, Caterpillar,
Bosch Rexroth or JLG who will look
at the issue of agility and changing
patterns from different angles.
One aspect will be innovation
in manufacturing processes and
smart factories. A major innovation is
expected from areas such as additive
manufacturing and paradigms like
Industry 4.0, including an interaction
between human workforce and
production systems. CECE congress
raises the question whether the
construction equipment sector is ready
to generate factories of the future.
Secondly, congress participants
will also learn how other sectors have
established cooperation on production-design-
finances-sales collaboration in
technology. The question is whether this
can be applicable also to construction
equipment companies.
Innovation in product design and
customers’ needs will be another focus.
Speakers from different backgrounds
will debate on how technologies
like robotics, intelligent construction
machines or future drives in the context
of energy and resource-efficiency
have an impact on the construction
equipment industry.
HR is an important issue in modern
companies and thus also at the
congress. No manufacturing or
technology company can compete
on global stage without a highly skilled
and motivated workforce. Developing,
deploying and connecting employees
and keeping them engaged, therefore,
assumes more importance than ever
before. An increasing shortage of
high-skilled workers and the aging of
workforces in many parts of the world
will exacerbate the talent shortage
challenge for global manufacturing
companies.
Last year, the company had sales
of around 4,500 units and posted a
turnover of Rs 2,400 crore, though
the overall market shrunk 27 per cent
during the year. The year before that
the overall market shrunk by 20 per
cent, added Sinha.
Launching the new product,
company officials said the industry
had started to see positive signs, and
contractors, who had been going
through the slowdown past
two years might come back
active.
Tata Hitachi Construction Machinery
Company Ltd, a JV between Tata Motors
and Japan’s Hitachi Construction
Machinery, is expecting its 100-ton
dump truck to hit the market during
the first half of 2016.
“The 100-ton dump truck is very
much on the cards. We are conducting
trials and expect it to be launched in
2016,” said Rana Sinha, Managing
Director of Tata Hitachi Construction
Machinery Company Ltd.
Sinha was in Chennai recently to
launch the JV’s Zaxis 20 LC – the
GI Series hydraulic excavator.
The 100-ton dump truck
is mostly used in iron and
coal mining activities, and
considering the industry
is returning to growth with
the demand growing for
higher capacity off-highway
truck, the JV expects good
response for the new truck.
It expects to sell around 160
of them.
The truck would be manufactured
at the JV’s Kharagpur facility in West
Bengal. The plant was set up with an
Zoomlion gets $44m
from China Exim Bank
to buy German firm
China Exim Bank (Export-Import
Bank of China) has loaned Chinese
construction machinery giant Zoomlion
$44.8 million to buy German company
M-TEC, which is a global leader in dry
mix mortar equipment, according to
industry sources.
Zoomlion produces and develops
heavy construction equipment and is
the only Chinese company of its kind
to be listed on both the Hong Kong
and Shanghai stock exchanges. The
acquisition may propel the company to
become a world leader in equipment
production.
It is the second time the bank
has offered financial support to the
company to make a foreign acquisition
since 2008 when Zoomilon bought
Italian construction equipment maker
Cifa. A bank official said the loans will
help the manufacturer to transform,
upgrade and develop internationally.
In addition, China Exim Bank has
been supporting other domestic
enterprises to expand overseas. It has
lent money to firms in the country’s
struggling ship making industry and
provided funds to companies to buy
aircraft. The bank has also supported
Fijian-based San’an Optoelectronics
to buy shares in Taiwan’s Formosa
Epitaxy Incorporation.
Wi th the latest acquisi t ion,
Zoomlion will be able solve its
problems of traditional mortar mixing
stations, which have not been able
to recycle resources, suffering from
sand shortages and causing severe
pollution.
Chen Xiaofei, Zoomlion’s Vice
President, estimated that the
acquisition will begin generating
profit in the first year and profits could
exceed its investment in three years
since dry mix mortar equipment and
products have high margins. The
company aims to produce mortar that
is fireproof, heat-insulated and can
prevent leaks.
Eric Lepine, President of CECE

10. REAL ESTAET June 09-15, 2014 10
Demerits of high-rises
High-rise buildings are
a good gambit, but the
coin has two sides
buyers, and high-rise buildings are a
good gambit to differentiate their
offerings from the rest of the pack.
However, this coin has two sides –
high-rise development has its own
share of demerits, too.
Effect on urban wind
Rise in the elevation of a building
increases the distance of the wind
shadow and minimizes the air flow at
street level behind the building. Near
high-rise buildings, local wind speed
is high even in summer. In addition,
high-rise buildings tend to create a
turbulent flow of gradient wind as a
result of increasing roughness of the
boundary layer surface.
More air pollution
In summer, local wind speeds
Until recently, Mumbai was the only
Indian city with high-rise buildings.
The financial capital continues to see
the highest demand for skyscrapers,
as the only option to grow there is
vertically.
It now seems that in coming
decade, Maximum City will receive
an even more cohesive skyline, with
a host of projects in --the race to
touch the sky -- being constructed.
The demand for high-rise buildings is
certainly growing.
On their part, developers are always
looking for new ways to attract potential
near skyscrapers are very high
and troublesome. The ventilation
conditions in urban spaces and major
streets with high vehicular traffic have
significant impact on concentration of
air pollutants at the street level. The
high velocity and turbulent wind at
street level results in mixing of highly
polluted low-level air with cleaner air-flowing
above urban canopy.
Effect on urban radiation
High-rise buildings absorb direct
and reflected solar radiation of
surrounding low-rise buildings and
convert it into heat via convection of
long wave radiation. However, when
buildings are of different height, walls
of higher buildings absorb part of the
reflected and emitted radiation and
block a portion of the sky, resulting
in reduced solar exposure and long-wave
emission from roofs of the lower
buildings.
High urban temperature
The size and density of the
built-up areas affect urban area’s
temperatures. In the congested
centres of large cities, temperature
levels are generally higher than in
suburbs.
The largest elevations of urban
temperature occur during clear and
still-air nights, also called ‘Urban Heat
Island’. Excessive opacity of high-rise
buildings in city centres results
in concentrated heat generation by
high-density land use (traffic, lighting,
heat exhaust) and contributes to the
creation of urban heat islands.
Effect on night-time cooling
Nocturnal radiation is a major
clima ti c f a c t o r tha t reduces
atmospheric heat in urban areas
located in hot, dry regions. Nocturnal
radiation decreases when density
and height of built-up urban masses
increase.
High-rise buildings store solar
energy during daytime and release
it slowly into low-speed local wind,
especially at night. The vertical
distance between cool winds above
building roofs and ground surface is
long, and this results in decreased
radiant cooling during nights.
Low-rise buildings that match trees
heights of 12-15 meters, on the other
hand, penetrate night-time ventilated
cooling at ground level and also store
cool radiation through built-up urban
areas.
Other factors
Tall buildings are colder in winter
and hotter in summer than regular
buildings, and therefore require
more heating and more cooling.
This is particularly true of modern
glass towers. Thus, a lot of energy
is required to keep these high-rises
functioning.
Exterior cleaning and maintenance
of a high-rise building can be very
costly and dangerous. With global
warming (which causes higher
wind speeds) on the rise, insurance
companies often refuse coverage to
maintenance companies in charge
of high-rise buildings at certain times
of the year.
High-rise buildings take longer
to build, and due to rapid and
heavy construction activity within a
city, there is a heavy load on civic
infrastructure.
In-high rise buildings, average
construction cost per square foot is
20-25 per cent higher if the building
has more than 12 floors.
It is more expensive to carry out
major alterations and renovations in
a high-rise building.
If a new building has to be built on
the same piece of land, the number
of claimants is vastly higher.
When it comes to a metropolis like
Mumbai, there is not much one can
do about these factors – and indeed,
they are accepted as a fact of life in
a city which must grow vertically -- if
it is to grow at all.
Unfortunately, the areas of a city
which are in the biggest need of high-rise
buildings are also the ones which
offer the lowest scope for remedial
infrastructure measures that could
reduce the impact of skyscraper
development. That said, approaching
high-rise building development from
a sustainability perspective can
definitely make a difference in terms
of decreased environment damage
and operating costs going forward.
Subhankar
Mitra
Head, Strategic
Consulting (West)
JLL India
Credai seeks cut in interest rates
on home loan
Realtors body Credai, displeased
over the RBI’s monetary policy, has
sought cut in interest rates on home
loan to boost housing demand. The
RBI has left key rates unchanged,
and unlocked about Rs 40,000 crore
of funds by reducing the amount of
deposits that banks are required to
park in government securities.
Credai National President C
Shekar Reddy said, “We at Credai
appreciate the positive step taken
by the RBI to reduce SLR by 50 bps,
which will release a liquidity of Rs
39,000 crore for banks.”
Kone keeps housing
sector in view
Kone Corporation, the world’s
second largest elevator manufacturer,
is counting on growth prospects
for domestic housing and expects
rapid urbanization to drive its growth
further.
“The growth drivers in India are
urbanization and a middle-income
consumer group which is growing
in number and requi res mor e
apartments,’’ said Henrik Ehrnrooth,
President & CEO, Kone Corporation.
The 6.9-billion euro company,
headquartered out of Finland,
delivered 120,000 elevators globally
in 2013 and Ehrnrooth estimated
the Indian market to be 40,000-plus
“We understand the central bank’s
priority to fight inflation. However, at
the same time, the real estate industry
also awaits proactive measures to
stimulate home purchase by bringing
down the home loan rate,” said
Credai Chairman Lalit Jain.
“To provide shelter and to move
the economy we have to work
towards home loan rate reduction.
Also, the RBI has to consult Credai
and develop a practical policy on
lending to housing projects,” he
added.
The real estate sector is facing a
elevators annually. Kone has grown
from a small outfit to the second largest
player globally and has established
strong market positions and captured
market share in key growth markets
like China, India, the Middle East and
Asia Pacific.
While most of the standard products
offered by Kone in India are made at
its Chennai facility, the products for
high-rises are imported from Finland or
China. It also makes escalators which
account for 10 per cent of the size of
the elevator market.
Kone is setting up a new facility
adjacent to its existing Chennai unit
exclusively for elevators.
serious slowdown in demand for the
past few years due to high borrowing
cost to home buyers and developers
coupled with low economic growth.
However, global property consultant
CBRE South Asia Chairman & MD
Anshuman Magazine said,”The
RBI move to keep the repo rate
unchanged will be appreciated by
the industry.”
Rics South Asia Managing
Director Sachin Sandhir said, “A low
and stable inflation is a necessary
pre-requisite for any rate revision.”
DDA for quick disposal
of projects
The Delhi Development Authority
vice-chairman has asked the Unified
Traffic & Transportation Infrastructure
(Planning & Engineering) Centre
(Uttic) to focus only on broader issues
of projects and not spend time on
finer details as long as that does not
compromise on a project’s critical
aspects.
Uttic’s slow decision making has
resulted in a delay of one to five years
in projects which would take only
two to three years for construction,
leading to cost escalation and other
problems.
The VC has said that based on the
points raised by the PWD secretary
on delay in projects, Uttic needs to
finalize the terms within 15 days of their
submission by PWD.
“For quick disposal of projects,
the VC has suggested that PWD’s
executive engineer and project
manager should discuss the various
road construction codes, street design
guidelines, etc with Uttic right at the
initial stage so that the shortcomings
are highlighted and no unnecessary
changes need to be made later,” said
a source.
An infrastructure project needs
to pass through Uttic thrice before
tenders can be floated. The approval
of ToR is the first stage and PWD
alleged that Uttic was taking up to one
year to clear certain projects.
One was the ITO decongestion
plan and another is the underpass-cum-
flyover project at Delhi-Rohtak
Road at Ghewra crossing. Granting
of approvals is the second stage
where clearances can take from two
to three years.
Projects stuck at this level include
the Barapullah phase-2 connectivity
at INA. The final phase of clearance
is the approval of project drawings.
The RTR parallel flyover had received
clearance from Uttic in April 2013,
but its drawings were cleared in May
this year.

11. PRODUCT PROFIEL June 09-15, 2014 11
SUPREME INDUSTRIES
Reflective insulation reduces
heat flow by radiation
The radiant heat is invisible and
has no temperature, just energy.
When this energy strikes another
surface, it is absorbed and increases
the temperature of that surface.
In summer, radiation from the sun
strikes the outer surfaces of walls and
ceilings and is absorbed causing the
surface to heat up.
This heat flows from the outer wall
to the inner wall through conduction
which is then radiated again, through
the air spaces in the building, to other
surfaces within the building. Radiation
between surfaces is through invisible,
infra-red heat rays
Different types of insulation
products reduce the heat transferred
by conduction, convection and
radiation to varying degrees. As a
result, each provides different thermal
performance and corresponding
‘R’ values. The primary function of
reflective insulation is to reduce radiant
heat transfer across open spaces,
which is a significant contributor to
heat gain in summer and heat loss
in winter.
Materials that reduce heat
There are many types of materials
that reduce heat gain and heat loss.
Some materials provide greater
resistance than others, depending
on the mode of heat transfer:
convection, conduction or radiation.
Most insulation materials work on the
principle of trapped air gas being a
good insulator.
Mass insulation like, ‘INSUshield’-
closed c e l l , FR crosslinked
polyethylene foam, use cellular walls
of plastics, Fibre glass wool uses
glass fibers to reduce convection
thereby decreasing the transfer of
heat. These materials also reduce
heat transfer by conduction due to
the presence of trapped air.
However, these products, like most
building materials, have very high
radiant transfer rates. Most building
materials, including fiberglass, foam
and cellulose have ‘E’ values in
excess of 0.70.
Reflective insulation typically have
‘E’ values of 0.03 (again, the lower
the better).
Therefore, reflective insulation is
superior to other types of insulating
materials in reducing heat flow by
radiation. When reflective insulation
is installed in building cavities, it traps
air (like other insulation materials)
and therefore reduces heat flow by
convection thus addressing all three
modes of heat transfer.
In all cases, the reflective material
must be adjacent to an air space.
Aluminum, when sandwiched between
two pieces of plywood or between
INTERNATIONAL
TEKLA INDIA
‘Budget 2014 should highlight critical
importance of construction industry
in economy’
two concrete layers for example,
will conduct heat at a high rate.
The conductive insulation material
should always be in contact with the
substrate for better insulation.
Reflective Insulation
System (RIS)
A reflective insulation system is
typically formed by layers of aluminum
or a low emittance material and
enclosed air spaces which in turn
provide highly reflective or low
emittance cavities (air bubble film)
adjacent to a heated region.
The performance of the system is
determined by the emittance of the
material(s), the lower the better, and
the size of the enclosed air spaces.
The smaller the air space, the less
heat will transfer by convection.
Therefore, to lessen heat flow by
convection, a reflective insulation, with
its multiple layers of aluminum and
enclosed air space(INSUreflector), is
positioned in a building cavity (stud
wall, furred-out masonry wall, floor
joist, ceiling joist, etc.) to divide the
larger cavity (3/4” furring, 2”x4”, 2”x6”,
etc) into smaller air spaces. These
smaller trapped air spaces reduce
convective heat flow.
Reflective insulation differs
from conventional mass
insulation:
Reflective insulation has very low
emittance values ‘E-values’ (typically
0.03 compared to 0.90 for most
insulation) thus significantly reduces
heat transfer by radiation
A reflective insulation does not
have significant mass to absorb and
retain heat
Reflective insulation has lower
moisture transfer and absorption
rates, in most cases
Reflective insulation traps air with
layers of aluminum & air bubble film
plastic as opposed to mass insulation
which uses fibers of glass, particles
of foam, or ground up paper
Reflective insulation does not
irritate the skin, eyes, or throat and
contain no substances which will
out-gas
The change in thermal performance
due to compaction or moisture
absorption, a common concern with
mass insulation, is not an issue with
reflective insulation
Supreme’s Thermal
Insulation Division offers
solutions in the following
areas:
Ducting insulation in hospitals,
shopping malls, airports, PEBs, IT/
BPO, etc
Pipe insulation for split AC tubings,
chiller piping, drain pipes, chilled
water lines, etc
Floor insulation in server rooms,
data centres, medical and diagnostic
centres, and control rooms for
petrochemicals
Underdeck insulation in PEBs,
textile units, malls, airports, etc
Overdeck and wall insulation in
commercial buildings, residential
buildings, cold storages, etc
Atul Khanna
General Manager, Thermal Insulation
Division, The Supreme Industries Ltd
Atul Khanna
The new government under Prime
Minister Narendra Modi is based on
development agenda. Therefore,
its plan for economic growth in
Budget 2014 should highlight critical
importance of an efficient construction
industry in the economy.
The construction sector is a major
contributor to the Indian economy.
It represents major percentage of
GDP where the Central government
could be the industry’s biggest
customer. We expect very aggressive
and transparent approach to the
industry from the government’s new
policies.
We expect the government to
come up with a long term strategy,
and bring about a profound change
in relationship between public
authorities and the construction
industry to ensure the government
consistently gets a good deal and
the country gets social and economic
infrastructure it needs so urgently.
The strategy means that the public
sector will become a better client
-- more informed and better co-ordinated
when its requirements are
specified, designed and procured.
The strategy should challenge the
present industry business models
and practices.
It should replace adversarial
cultures with collaborative ones,
and demand cost reduction and
innovation within the supply chain
to maintain market position, rather
than innovation that is focussed
on bidding process with a view to
establish a bargaining position for
the future.
We expect the government to focus
on quality aspects and introduce new
benchmark standards where PPP
model project execution is in place.
Like other developed countries where
adoption of BIM (Building Information
Modelling) is must for high value
project, our government should also
take initiative in that direction.
We hope that the government,
under the able leadership of Narendra
Modi will fulfil certain aspirations and
needs of the building & construction
industry which contribute immensely
to the nation-building.
Technology companies like Tekla
Nirmalya Chatterjee
will extend their full support to the
government at the Centre towards
formulating new standards for the
industry. Instead of putting things in
boxes, shipping them to customers
and hoping the phone doesn’t ring,
we should make a commitment to
intensely work with construction
industry players to transform their
business.
Nirmalya Chatterjee
COO & Director,Tekla India
(A Trimble Group company)
Supreme INSUreflector - Underdeck Insulation
Supreme INSUreflector - Underdeck Insulation
WSP buys Australian consultant
WSP is forming a new structural, civil and facade consultancy arm in
the Asia Pacific Region with the acquisition of Australia-based Winward.
The acquisition adds 50 people to WSP in Australia. There are parallels in
WSP and Winward’s experience, in particular in the delivery of tall, slender
towers. The two companies have already worked together on projects in the
country including the Melbourne Convention Centre and Southern Cross
Station. WSP said that integrating will provide both sets of existing clients
enhanced levels of service across Australia and globally. The new arm
will operate as WSP Structures and continue to be led by Kevin Winward.
Winward’s current offices are in Melbourne, Brisbane and Perth.
The plan is to accelerate the growth of WSP Structures, through access
to WSP’s offices and technical resources throughout the Asia-Pacific
region. A new Sydney office is now operational and several projects are
under way there.
Saudi Arabia plans £58 b rail spend
The Saudi Railways Organization (SRO) is working on a SR365 billion
(£58 billion) strategic plan for developing the railway network and linking
the country’s provinces. The project aims to establish an integrated railway
network spanning 9,900 km with 19 railway lines.
The Haramain high speed railway and a north-south line are under
construction, with a line connecting Jeddah to Riyadh slated to begin
soon. Work on the railway link between Gulf countries is also expected
to begin soon.
“The huge GCC railway project will start from Kuwait and go through the
Kingdom, Bahrain, Qatar and the United Arab Emirates, ending in Oman,”
said SRO president Muhammad Al-Suwaiket. The line will run for 2,200km.
SRO is currently designing the parts of the projects within the Kingdom
with a view to beginning construction in 2018.
Al-Suwaiket said that the organization is working on rectifying the poor
performance of lines that run between Dammam and Al-Ahsa through
Abqaiq. “The organization seeks to maintain passenger safety and build
a good reputation by implementing plans over the next 20 years to cover
all major cities of the Kingdom,” he said.

12. June 09-15, 2014 12
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Published on Monday, June 09, 2014
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EVENTS
BG Shirke Construction Technology chooses Tekla’s BIM software
and in the end win more tenders”,
said Nirmalya Chatterjee, Tekla India
Business Director.
Tekla’s BIM software lets users
accommodate changes in the design
flexibly while visualization creates
better understanding of the project and
makes problem areas easier to identify.
Tekla users can avoid errors in drafting,
and improved scheduling with model-based
quality and create end-product faster.
Tekla provides software tools that
work with precast elements including
beams, columns and slabs.
Editor : Bina Verma
3D platform, provide better
Editorial Team: Dilip Phansalkar, Paresh Parmar, Remona Divekar Designer: Rajen Mistry
Business Team: Shantanu Baraskar (9820904795), Seema Kohli (9820904931)
Email: contact@konstructionreview.com, editor@mmronline.com
No part of the contents of Construction Industry Review, in abridged or unabridged form,
can be reproduced without the written permission of the Editor. CIR does not accept any
responsibility for statements and opinions expressed by the authors.
Pune-based BG Shirke Construction
Technology, the largest precast
concrete company in India, has
chosen Tekla as building information
modelling (BIM) technology partner
and software provider.
The technology partnership aims
at providing better infrastructure by
switching over to unified e-platform in
precast design and construction on
mass scale.
The goal of the technology
partnership is to design and execute
even more highly detailed precast
structures. This endeavour will result
in better modernized buildings by
synchronizing activities from designing
of the project till execution, thereby
avoiding time overruns.
“Partnership with BG Shirke
Construction Technology gives us
an immense opportunity to work
more closely with their engineers and
project team. At Tekla, we help precast
companies like BG Shirke Construction
Technology manage and optimize their
processes, minimize errors and waste
“Our objective right from the
beginning is to modernize by total
transformation into automation of civil
engineering. With help of Tekla BIM
software we can make our building
processes more effective and manage
the risk of unforeseen costs and
loss of time,” said Yogesh Kajale,
VP, Planning & Design, BG Shirke
Construction Technology.
“Tekla BIM software enables us to
integrate design and detailing with
manufacturing, project management
and efficient information sharing, which
helps us to minimize manual work and
errors. This is important as today all
structures need to be modularly planned
and erected speedily,” he added.
EVENTS July 11-13, 2014
India International Build Expo Chennai
Chennai Trade Centre, Chennai,
This event helps the professionals and experts of the industry to come together under the
same roof and experience an ideal platform to network and interact with each other.
Contact: Prompt Trade fairs (India) Pvt Ltd,
621, 3rd Floor, SIRE Mansion Thousand Lights, Chennai
August 9, 2014
Manexe
ITC Kakatiya, Hyderabad
Manexe is a 1-day event being held on August 9, 2014 at the ITC Kakatiya in Hyderabad.
This event showcases various products and services related to the manufacturing industry
and more, etc in the building construction industry.
Contact: The Confederation of Indian Industry,
203-204, Sears Tower, Gulbai Tekra,
Near Panchwati, Ahmedabad
August 15-17, 2014
BACE Expo (Building Architectural Construction &
Engineering Symposium & Trade Show)
Milan Mela Ground, Kolkata
BACE Expo will be held for three consecutive days at Milan Mela Complex, Kolkata. The
key industry players and market leaders will discuss about modern tools and technology
associated with the building and construction sector. Participants will discuss about
growth of the real estate sector and build strategic business alliances with manufacturers
and dealers. The prospects of some of the major construction projects in Kolkata will be
highlighted. Some of the products that will be displayed include ceramic and stones,
elevators, escalators, bath and sanitation.
Contact: Ask Trade & Exhibitions Pvt Ltd,
Flat 307, Alsa Towns Ville,170/38 Arcot Road,
Valasaravakkam, Chennai
August 15-18, 2014
Construction Architecture & Interior Chennai
Chennai Trade Centre, Chennai
The show is a 4-day event being held from August 15 to 18, 2014 in Chennai. This event
showcases various products and services as well as equipment related to construction,
architectural firms and interior design, latest designs and technologies and more in Building
Construction, Architecture & Interior Designing.
Contact: I ads and events Pte Ltd,
61, 1st Floor, Gold Towers, 50 Residency Road, Bengaluru.
September 11-13, 2014
The Big 5 Construct India
Bombay Convention Centre, Mumbai
It will provide the ideal platform for influential architects, contractors, consultants and
engineers to share ideas about innovative construction tools and services.
Contact: DMG: Events. PO Box No 33817
Printed & published by Bina Verma on behalf of Asian Industry & Information Services, and printed at Amruta Print Arts, 205, Tantia Industrial Estate, J. R. Boricha Marg, Opp. Kastruba Hospital, Mahalaxmi, Mumbai 400 011
and published at 1st Floor, Feltham House, 10, J. N. Heredia Marg, Ballard Estate, Mumbai 400 001. Tel.: 022-2266 0623. Editor: Bina Verma Annual Subscription : Rs. 5,000/-
Dubai, UAE
December 4-6, 2014
Ceramics Asia
Gujarat University Exhibition Hall, Ahmedabad
This event will be organized to enhance that potential by bringing industry professionals
from different corners of the world under one roof. Ceramics Asia is going to be organized
for three days at the Gujarat University Exhibition Center in Ahmedabad
Contact: Unifair Exhibition Service Co. Ltd,
Room 802-804, Daxin Building,
538 Dezheng North Road Guangzhou, China
December 15-18, 2014
bC India Show
India Expo Centre and Mart, Greater Noida
The International Trade Fair for Construction Machinery, Building Material Machines, Mining
Machines and Construction Vehicles-provides the international construction industry with
a professional platform for the construction industry.
Contact: B C Expo India Pvt Ltd,
Lalani Aura, 5th Floor, 34th Road, Khar (West), Mumbai
‘BIM sols can help construction sector
in cost optimisation’
Building Information Modelling
(BIM) solutions can help reduce the
capital cost and carbon footprint by
over 20 per cent in the construction
sector, says a study conducted by
KPMG and RICS School of Built
Environment at Amity University and
commissioned by 3D designing
software maker Autodesk. The
study states project delays, cost
overruns and liquidity constraints
continue to trouble the real estate and
construction sectors.
As per the report, while a number of
developed countries across the world
have already adopted BIM to reduce
project delays and cost overruns,
Indian firms are fast adopting BIM.
“BIM has the potential to provide
significant benefits to the Indian built
environment sector. But implementation
of BIM requires a change in the
mindset of all stakeholders, as
managements of most organizations
are reluctant to adopt,” said Autodesk
India and SAARC Managing Director
Pradeep Nair.
To promote BIM, it is highly
essential that government agencies
and clients lay stress on the usage of
BIM in their procurement processes
and contracts, he added.
B IM, t h a t o f f e r s d i g i t a l
representation of the project during
its lifecycle, right from planning to
execution of the project, is gradually
picking up among Indian firms. BIM
solutions allow users to construct
‘smart’ and ‘computable’ three-dimensional
(3D) model of the project
to enhance its design, construction
and operation.
As the awareness for BIM is
increasing within the architecture,
engineering and construction (AEC)
sectors, around 22 per cent of the
firms have already started using BIM,
and over 78 per cent firms would
adopt the technology in coming
years, according to the findings.
According to findings of the survey,
BIM is used most extensively in the
real estate sector, mostly in design
development and construction stage.
Most users who are using BIM fall
in the residential segment, building
housing projects, followed by those
doing mixed land use projects under
the commercial category. The lowest
usage was found to be in the non-housing
sectors such as industrial
and infrastructural developments.
The high cost of hardware and
software, unavailability of process
implementation guidelines and lack
of support from the government are
some of the other challenges that the
industry is facing.
Globally, BIM is finding increased
attention from the construction sector.
The US is still the leader in BIM usage,
while other countries like the UK and
Australia also see high adoption
rates. Estimates suggest it is $10
billion market.