Volume 3 l Issue No 34 l August 25 - 31, 2014 l Price: Rs 100 An MMR, Braj Binani Group Publication Over Rs 16 lakh crore ($260 billion) per annum need to be invested to achieve the Central government’s vision of ‘Housing for all by 2022’, indicates a recent report. According to the KPMG-National Real Estate Development Council report, about Rs 9.5 lakh crore (Rs 150 billion) is currently invested annually in the real estate sector, of which about 80 per cent or Rs 7.5 lakh crore (Rs 130 billion) is invested in housing development. Thus, investment in housing needs to be doubled, which can be achieved if investments are steadily increased by 12 per cent to 13 per cent per annum. With almost a fifth of urban and rural households having limited access to housing facilities, the country needs to build 30,000-35,000 units per day for the next eight years, the report said. “Large-scale development of affordable housing projects is still a challenging proposition for many private developers,” the report said. The current housing shortage in urban areas is estimated at 19 million units. Of this, about 95.6 per cent is estimated to be from economically weaker sections (EWS) and low income group (LIG) households who cannot afford houses costing above Rs 15 lakh. “The government’s vision of ‘housing for all by 2022’ requires more `16 lakh cr yearly funds needed to meet ‘housing for all by 2022’ target than $2 trillion to be spent in the next eight years to build 9 crore houses. The investment in the sector, which has grown at less than 2 per cent per annum in recent years, needs to grow at about 12 per cent to 13 per cent per annum (unadjusted for inflation),” said Neeraj Bansal, partner and head of real estate and construction, KPMG India. “Strong reforms targeting higher flow from lending institutions (banks and non-banking finance companies), households, private savings and foreign capital are the need of the hour, which can be achieved by developing long-term financial instruments for the real estate sector, opening up external commercial borrowings, incentivising housing investment, developing public private partnership mechanism, streamlining approval mechanism, and reforming the Rent Control Act.” said Bansal. Centre to invite bids from cement companies Home loans for needy set to get even cheaper ‘Ample scope for housing prices to relax’: Mundra In a first-of-its-kind step, the government is inviting bids from cement companies to arrive at a cheapest possible price for procuring the raw material. The move is seen as an attempt to boost road and highway development by lowering the cost. The highway ministry will soon invite the public and private sector cement companies to quote their ex-factory prices to find the cheapest rate available. Then the ministry will inform private contractors about cement companies which are ready to offer the cheapest rate for a particular period. The cheapest rate will also be informed to developers and contractors of other government projects like residential housing. Home loans for the underprivileged are set to get even more affordable with the government planning a new interest subvention scheme which will meet part of the home loan burden. Speaking on the side lines of a real estate event in Mumbai, Finance Secretary GS Sandhu said that the government would shortly announce an enhanced subvention for affordable home loans. He said that under the scheme there would be interest subvention up to 5 per cent for loans up to Rs 5 lakh rupees. Sandhu said that the new government had big plans and vision for affordable housing. “A blueprint on affordable housing plan is being prepared and the government is clear “Since cement companies can expect bulk orders, they can actually offer cheaper rate. Once we arrive at a base price, we will calculate the cost of greenfield cement concrete projects,” said a ministry official. On August 19, Road Transport Minister Nitin Gadkari told road engineers that already six cement companies have submitted their letters to offer the raw material at Rs 160 per bag of 50 kg against the prevailing market price of Rs 300-350. Sources said the heavy industry ministry has also proposed that cement produced by four public sector companies may be procured for road projects at lower rate. that they want time-bound results,” said Sandhu. He added that at present most of the burden falls on public sector banks and going forward real estate investment trusts could be a game changer for the sector. Interest subvention refers to the subsidy that the borrower gets from the government which makes good the discount given by the lender. The UPA government had introduced 1 per cent interest subvention in its budget for 2009-10. The scheme was introduced in the aftermath of global financial crisis to revive the economy. The UPA government had also introduced 3 per cent interest subvention on loans to farmers. SS Mundra, the Reserve Bank of India Deputy Governor, said there is enough scope for housing prices to come down from the current highs because there is a huge pile-up of inventory. Pointing out that the cost of houses is still very high, he said improving affordability of houses is important in a country where more than 60 per cent of the population lives on less than $2 a day. Referring to the counter argument that taxes account for 22 per cent of the housing cost, Mundra said, “More progressive construction technologies and several other measures can make it possible to make houses less costly than what they are today.” Mundra’s comments come in the backdrop of the huge housing shortage in urban India, estimated at 18.78 million in 2012 and expected to rise to 30 million by 2022. Of the total housing shortage of 18.78 million in urban India, the shortage in the economically weaker sections and lower income group categories stood at 10.55 million and 7.41 million, respectively, according to the report of the government’s technical group of urban housing shortage. Regarding demand from individuals for second and third houses, Mundra observed that at this stage of the country’s economic development bank credit is needed more for creation of productive assets. “We would not like to create a situation whereby there is artificial demand in the housing sector,” he said at a conclave organised by the National Real Estate Development Council. He said given the relatively better asset quality in the housing and real estate sectors, banks have a natural incentive to keep on lending to these segments. On the common refrain that commercial banks have stopped lending to the housing and real estate segments in the past four-five years, the Deputy Governor said, “Our review of the extent of loans to these segments as a whole gives a little contrary picture, indicating that the loan growth in these segments has been quite robust.” SS Mundra, Deputy Governor, Reserve Bank of India
Transcript
August 25-31, 2014 1
Volume 3 l Issue No 34 l August 25 - 31, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication
Over Rs 16 lakh crore ($260 billion) per annum need to be invested to achieve the Central government’s vision of ‘Housing for all by 2022’, indicates a recent report.
According to the KPMG-National Real Estate Development Council report, about Rs 9.5 lakh crore (Rs 150 billion) is currently invested annually in the real estate sector, of which about 80 per cent or Rs 7.5 lakh crore (Rs 130 billion) is invested in housing
development. Thus, investment in housing needs to be doubled, which can be achieved if investments are steadily increased by 12 per cent to 13 per cent per annum.
With almost a fifth of urban and rural households having limited access to housing facilities, the country needs to build 30,000-35,000 units per day for the next eight years, the report said.
“Large-scale development of affordable housing projects is still
a challenging proposition for many private developers,” the report said.
The current housing shortage in urban areas is estimated at 19 million units. Of this, about 95.6 per cent is estimated to be from economically weaker sections (EWS) and low income group (LIG) households who cannot afford houses costing above Rs 15 lakh.
“The government’s vision of ‘housing for all by 2022’ requires more
`16 lakh cr yearly funds needed to meet
‘housing for all by 2022’ targetthan $2 trillion to be spent in the next eight years to build 9 crore houses. The investment in the sector, which has grown at less than 2 per cent per annum in recent years, needs to grow at about 12 per cent to 13 per cent per annum (unadjusted for inflation),” said Neeraj Bansal, partner and head of real estate and construction, KPMG India.
“Strong reforms targeting higher flow from lending institutions (banks
and non-banking finance companies), households, private savings and foreign capital are the need of the hour, which can be achieved by developing long-term financial instruments for the real estate sector, opening up external commercial borrowings, incentivising housing investment, developing public private partnership mechanism, streamlining approval mechanism, and reforming the Rent Control Act.” said Bansal.
Centre to invite bids from cement
companies
Home loans for needy set to get even cheaper
‘Ample scope for housing prices to relax’: Mundra
In a first-of-its-kind step, the government is inviting bids from cement companies to arrive at a cheapest possible price for procuring the raw material. The move is seen as an attempt to boost road and highway development by lowering the cost.
The highway ministry will soon invite the public and private sector cement companies to quote their ex-factory prices to find the cheapest rate available. Then the ministry will inform private contractors about cement companies which are ready to offer the cheapest rate for a particular period. The cheapest rate will also be informed to developers and contractors of other government projects like residential housing.
Home loans for the underprivileged are set to get even more affordable with the government planning a new interest subvention scheme which will meet part of the home loan burden.
Speaking on the side lines of a real estate event in Mumbai, Finance Secretary GS Sandhu said that the government would shortly announce an enhanced subvention for affordable home loans. He said that under the scheme there would be interest subvention up to 5 per cent for loans up to Rs 5 lakh rupees.
Sandhu sa id tha t the new government had big plans and vision for affordable housing. “A blueprint on affordable housing plan is being prepared and the government is clear
“Since cement companies can expect bulk orders, they can actually offer cheaper rate. Once we arrive at a base price, we will calculate the cost of greenfield cement concrete projects,” said a ministry official.
On August 19, Road Transport Minister Nitin Gadkari told road engineers that already six cement companies have submitted their letters to offer the raw material at Rs 160 per bag of 50 kg against the prevailing market price of Rs 300-350.
Sources said the heavy industry ministry has also proposed that cement produced by four public sector companies may be procured for road projects at lower rate.
that they want time-bound results,” said Sandhu.
He added that at present most of the burden falls on public sector banks and going forward real estate investment trusts could be a game changer for the sector.
Interest subvention refers to the subsidy that the borrower gets from the government which makes good the discount given by the lender. The UPA government had introduced 1 per cent interest subvention in its budget for 2009-10. The scheme was introduced in the aftermath of global financial crisis to revive the economy. The UPA government had also introduced 3 per cent interest subvention on loans to farmers.
SS Mundra, the Reserve Bank of India Deputy Governor, said there is enough scope for housing prices to come down from the current highs because there is a huge pile-up of inventory.
Pointing out that the cost of houses is still very high, he said improving affordability of houses is important in a country where more than 60 per cent of the population lives on less than $2 a day.
Referring to the counter argument that taxes account for 22 per cent of the housing cost, Mundra said, “More progressive construction technologies and several other measures can make it possible to make houses less costly than what they are today.”
Mundra’s comments come in the backdrop of the huge housing shortage in urban India, estimated at 18.78 million in 2012 and expected to rise to 30 million by 2022.
Of the total housing shortage
of 18.78 million in urban India, the shortage in the economically weaker sections and lower income group categories stood at 10.55 million and 7.41 million, respectively, according to the report of the government’s technical group of urban housing shortage.
Regarding demand from individuals for second and third houses, Mundra observed that at this stage of the country’s economic development bank credit is needed more for creation of productive assets.
“We would not like to create a situation whereby there is artificial demand in the housing sector,” he said at a conclave organised by the National Real Estate Development Council.
He said given the relatively better asset quality in the housing and real estate sectors, banks have a natural incentive to keep on lending to these segments.
On the common refrain that commercial banks have stopped lending to the housing and real estate segments in the past four-five years, the Deputy Governor said, “Our review of the extent of loans to these segments as a whole gives a little contrary picture, indicating that the loan growth in these segments has been quite robust.”
Order intake from continuing operations came to €31.1 billion in the first nine months, up 5 per cent year-on-year despite negative exchange rate effects (prior year €29.6 billion). On a comparable basis, that is, excluding currency and portfolio effects, order intake increased by 6 per cent. The third quarter order intake was €10.2 billion, up 8 per cent year-on-year (up 5 per cent on a comparable basis).
Sales from continuing operations at €30.1 billion in the first nine months (prior year €28.6 billion) and €10.7 billion in the third quarter (prior year €9.9 billion) were higher year-on-year in all business areas except Steel Europe, where sales fell due to disposals. On a comparable basis, sales increased year-on-year by 6 per cent in the first nine months and 5 per cent in the third quarter.
T h e G r o u p ’ s n e t f i n a n c i a l debt decreased compared with September 30, 2013 from €5.0 billion to €4.1 billion in the first nine months, equity increased from €2.5 billion to €3.2 billion, and gearing therefore improved significantly by around 71 percentage points to 129.9 per cent.
Positive areas C o m p o n e n t s t e c h n o l o g y
continued its good performance in the third quarter, profiting from sustained strong demand on the car markets (above all in China and the Nafta region) and increasing demand for wind turbine components in China.
In the first 9 months, order intake and sales both increased year-on-year by 9 per cent to €4.6 billion (prior year both €4.2 billion). On a comparable basis the increases were 13 and 12 per cent respectively. Adjusted EBIT in the first nine months came to €208 million, up €25 million from the comparable prior-year period (prior year €183 million). The strong performance was mainly due to higher sales and efficiency gains under performance programs initiated in the prior year.
Elevator Technology continued to perform positively and increased its order intake in the first 9 months by 3 per cent to €5.1 billion (prior year €4.9 billion), mainly thanks to pleasing new installations business in China, the USA and South Korea.
On a comparable basis the increase was 7 per cent. Sales at €4.6 billion were also 3 per cent higher year-on-year (prior year €4.5 billion); on a comparable basis the gain was 8 per cent. The positive performance was also reflected in improved adjusted EBIT, which in the
ThyssenKrupp third quarter operating
targets achieved or slightly exceeded full-
year forecast where net income now expected
at break-even to slightly positive
T h e t r a n s f o r m a t i o n a t ThyssenKrupp is bearing fruit. After a strong third quarter, the Executive Board of the Essen-based industrial group is optimistic for the full year 2013-2014. Order intake, sales and adjusted EBIT increased as expected in both the first nine months and the third quarter.
In the f i rst n ine months the Group achieved net income (after minority interest, full Group) of €243 million (prior year net loss of €527 million), to which the third quarter contributed €39 million (prior year € 395 million).
Achieve break-evenThe main drivers of the good
performance were as expected the efficiency gains, the profitable growth of the capital goods businesses, and the significant improvement at Steel Americas. On this basis the Executive Board has again raised its forecast slightly for the current fiscal year. Full-year adjusted EBIT is now expected to double (prior year €586 million). For the first time in three years, ThyssenKrupp expects to achieve break-even to slightly positive net income.
“We are making good progress on our path to becoming a new, integrated and more performance-focused ThyssenKrupp. For seven quarters we have continuously increased our earnings through our own efforts,” says Dr Heinrich Hiesinger, CEO of ThyssenKrupp AG.
“We are moving in the r ight direction, our strategy is working, and our operating measures are clearly taking effect,” he added. Adjusted EBIT from continuing operations increased to €953 million in the first nine months, up 120 per cent from the prior year (prior year €433 million).
Adjusted EBIT in the third quarter came to €398 million, almost three times higher than the corresponding prior-year figure (prior year €136 million). In the first nine months, f ive of the s ix business areas improved their margins. In the third quarter all business areas including Steel Americas generated positive contributions.
first 9 months rose by 9 per cent to €531 million (prior year €487 million) despite negative exchange rate effects.
With adjusted EBIT of €193 million in the third quarter, elevator technology not only achieved new record earnings but also increased its margin year-on-year for the third quarter in succession to now 12 per cent.
Long planning certaintyAt Industrial Solutions, order intake
in the first nine months was up by a further 3 per cent year-on-year at €4.5 billion; on a comparable basis the increase was 7 per cent (prior year €4.4 billion). The high order backlog of €14.6 billion at June 30, 2014 provides long-term planning certainty and capacity utilization for the next two to three years.
Sales in the first nine months rose
was 13 per cent higher at almost €10 billion (prior year €8.8 billion), on a comparable basis the increase was 4 per cent. Sales rose by 12 per cent to €9.8 billion (prior year €8.8 billion); on a comparable basis – particularly excluding VDM and AST – sales were level with the prior year. As a result of intensive sales initiatives and performance programs, adjusted EBIT in the first nine months was flat at €148 million (prior year €160 million).
Decrease in businessSteel Europe reported a decrease
in business volume in the first nine months due to disposals and prices. Shipments decreased in total by 2 per cent, but on a comparable basis increased by 1 per cent. In the third quarter shipments were 8 per cent down from the prior quarter mainly because of a drop in production due
cent respectively year-on-year. On a comparable basis, orders were up by 15 per cent and sales by 14 per cent.
This was due to higher volumes and prices. Adjusted EBIT in the first nine months improved by more than €300 million to € 27 million. Key reasons for this significant improvement included higher and more efficient capacity utilization, lower costs, and the positive impact of market prices in the USA. In the third quarter adjusted EBIT came to €16 million.
Centre modifying allocation method for highway projects
In a bid to fast-track award of highway projects, and thereby construction, the government is redesigning the way projects are allocated based on assessment of their viability. According to sources, projects would now be bid out in three ways: in cases where no viability gap funding (VGF) is seen to be required, the build-operate-transfer (BoT) toll model will be adopted.
As regards projects which are likely to be viable with the support of VGF of up to 20 per cent, the NHAI will formulate both the BoT (toll) and the EPC models and leave it to the Road Ministry to take a final call on which way to go. In the third category of projects which are not going to work on the BoT (toll) model with VGF up to 20 per cent, the EPC model would straightway be followed.
While the focus has largely shifted to the EPC model due to lukewarm response to PPP projects, the NHAI has so far this year awarded seven highway projects with total length of 798 km. The authority is in the process of inviting bids for another 394 km of projects.
Of 13 projects for which bids were invited earlier for 1,115 km, the larger chunk of 841 km was on EPC mode and 273 km on BoT. In addition, 11 proposals are being evaluated by the inter-ministerial PPP-appraisal panel involving construction of 1098 km of highways, of which 1,010 km is in EPC mode.
Sources said the new strategy has been adopted after a detailed talk between NHAI Chairman RP Singh and Road Transport & Highways Secretary Vijay Chhibber, in line with Highway Minister Nitin Gadkari’s plan to fast-track the process of fresh awards.
“Such a strategy will bring clarity for the government to assess how receptive investors are to the highway sector and launch bids in conformity with market realities so that the projects awarded don’t fail at a later stage,” said an official from the Road Ministry.
11 per cent to €4.5 billion (prior year €4.0 billion); on a comparable basis sales were 15 per cent higher. They benefited from the recognition of revenues from a number of major contracts, particularly at process technologies.
Adjusted EBIT in the first nine months increased by €86 million, or 18 per cent, to €562 million (prior year €476 million) as a result of the order billings at process technologies and efficiency gains in all business units.
In a difficult price and competitive environment, mater ial services performed well in the reporting period, thanks to higher volumes. The inclusion of VDM and AST as of March 1, 2014 affected sales and order intake to the tune of €1 billion each and adjusted earnings in the amount of € (5) million.
Order intake in the first nine months
to operational issues and disruptions to production and shipping logistics due to storm Ela.
In the first nine months order intake was 6 per cent lower at €6.9 billion and sales were 9 per cent lower at €6.7 billion (prior year order intake and sales both €7.3 billion); on a comparable basis order intake was largely stable, sales decreased by 2 per cent. The measures implemented under the ‘Best-in-Class Reloaded’ programme already had a significant positive impact on earnings. Adjusted EBIT in the first nine months came to €184 million, an improvement of €83 million on the prior-year period (prior year €101 million).
At Steel Americas, order intake at €1.6 billion (prior year €1.6 billion) and sales at €1.5 billion (prior year €1.5 billion) in the first nine months increased by 2 per cent and 4 per
August 25-31, 2014 4INFRASTRUCTURE
Modi lays foundation stone for `4,000 cr road
project in Haryana
India, US working on easing investment in infra
Reliance Cements to open two units in K’taka
Prime Minister Narendra Modi laid the foundation stone for widening of a road project in Haryana that entails Rs 4,000 crore investment. The Prime Minister launched four-laning of over 160 km national highway from Kaithal to the border of Haryana-Rajasthan at a function at Kaithal in Haryana last week. The investment includes civil and construction cost, and would be implemented under public-private-partnership (PPP) mode, said an
The US and India are working on a bilateral mechanism that will help ease f low of investments from American companies into infrastructure projects in India. The proposal, which has been made by the US Department of Commerce, will establish a platform to assist US investors in infrastructure navigate through regulatory and procedural hurdles in the country, said an official in the Department of Industrial Policy & Promotion (DIPP). A Memorandum of Understanding (MoU) on ‘cooperation in infrastructure investments’ is to be
With availabil ity of l imestone in sizeable quantity across North Karnataka districts, there has been a heightened activity in terms of greenfield cement manufacturing and packaging companies in the State.
One such major company which intends to set up shop in Karnataka is Reliance Cements. Reliance will set up two units, one manufacturing and a quarrying unit in Sedam taluk of Gulbarga district and another grinding unit in Gowribidanur taluk.
As per the pre-feasibility Report for the Sedam project, submitted to the Union Ministry of Environment & Forests (MoEF), Reliance has said that it will be setting up an integrated
official. This road passes through Kalayat, Narwana, Barwala, Hisar and Siwani towns and will benefit people of four districts in terms of improving the living standard, safe connectivity and economic prosperity.
Tw e n t y - t h r e e u n d e r p a s s e s and over 20 km service roads are proposed in the project near villages which will ensure the safety of the pedestrian and people residing in
signed by both countries during Narendra Modi’s visit to the US next month.
“We have sent back a communication to the US Department of Commerce indicating our willingness to go ahead with their proposal and have also given some inputs from our side. We will start work on a Cabinet Note for the same as soon as the US reverts,” said the official.
India needs investments worth $1 trillion in the infrastructure sector, which offers huge opportunities to foreign investors. Foreign funds
5.5 mtpa cement plant with a 3.6 mtpa clinker and 75 mw power plant.
It is also setting up a 5 mtpa limestone mine in Tilkur and Hebal villages located in the same vicinity. Reliance is expected to complete the project in 24 months, once approved by the Karnataka government.
The project cost is estimated to be Rs 2,600 crore for the Sedam cement plant. For mining activity, Reliance has placed the initial cost at Rs 319 crore. According to the company report, Reliance received a Letter of Intent (LoI) from the Department of Mines & Geology in Karnataka to mine on 929.12 hectares at Tilkur-Hebal village in Sedam.
the vicinity of the road. It will further attract investments
in various sectors like industries, educa t iona l i ns t i t u t i ons , and agriculture etc. Haryana governor Kaptan Singh Solanki, Minister for Road Transport, Highways & Shipping Nitin Gadkari, Minister of State for Road Transport & Highways Krishanpal Gurjar and senior leaders of the state part icipated in the foundation laying ceremony.
can flow into the ambitious road sector projects carried out by the National Highways Development Programme, the industrial corridors being developed by the railways where foreign investment rules have recently been liberalized, and power sector projects.
“American companies want to bid for project contracts and also supply more equipment. They want to explore the PPP (public-private-partnership) model. But they also want some hand-holding,” the official added.
Mid-size infra firms line up for IPOs
Large infrastructure companies such as GMR Infrastructure Ltd and Jaiprakash Associates Ltd have been quick to raise several thousands of crore rupees by selling shares to savvy financial investors, known as qualified institutional investors, in the past three months.
Now, several mid-size infrastructure companies are looking to raise money through initial public offerings, or IPOs, in the next six to 12 months. At least 10 such companies will raise around Rs 6,000 crore, according to several investment bankers.
Among the companies looking to sell shares are Simhapuri Energy Ltd, a subsidiary of Hyderabad-based Madhucon Projects Ltd; the solar unit of Hindustan Powerprojects Pvt Ltd (HPPPL), a power generating firm backed by private equity firm Blackstone Group; Agra-based engineering f irm PNC Infratech Ltd; Bhopal -based d ivers i f ied
infrastructure firm Dilip Buildcon Ltd; Soma Enterprise Ltd; Power Mech Projects Ltd; and the cold storage chain unit of logistics company Gateway Distriparks Ltd.
Most infrastructure f irms are looking to tap the capital markets for raising funds. Several of them will be looking to file documents with the Securities & Exchange Board of India in September or in the next three to four months as the fund raising window still remains open,” said Subahoo Chordia, head, infrastructure and investment banking, at Edelweiss Financial Services Ltd.
Over the past decade, and especially over the past three to five years, infrastructure companies have seen their books swell with debt that they have been unable to service—largely on account of delays in land acquisition, environmental clearances or securing fuel supplies (in the case of power plants).
Foreign investors see land acquisition as major irritant
Adani Group set to expandDhamra Port’s capacity to 100 mt
Problems in land acquisition and delayed clearances from all relevant departments, including Environment & Forests, are seen as major irritants by foreign investors.
Earlier this year, Nisha Biswal, US Assistant Secretary of State for South & Central Asia, openly criticised India for ranking 134 out of 189 countries
Gujarat-based Adani Group said it was all set to expand the Dhamra Port’s capacity to 100 mt per annum in Odisha’s Bhadrak district. “We are going to start work on expansion of the Dhamra port. Orders have been placed for the purpose. Our vision is to build the Dhamra port on the scale of the Mundra port,”said Adani Group chief Gautam Adani, after meeting Chief Minister Naveen Patnaik and Chief Secretary G C Pati.
The company, which acquired the Dhamra Port from L&T and the Tatas by paying about Rs 5,500 crore, targets to enhance the port’s capacity from 25 mt to 100 mt. Dhamara Port Company Ltd (DPCL) Chief Executive Officer Santosh K Mohapatra said, “DPCL had sought 700 acres of land for the expansion project which was sanctioned by the state government. We will begin work on expanding the port capacity soon.”
in a survey on best countries to do business with.
She said despite India targeting $1 trillion in infrastructure investment, its policies still inhibited foreign investment. The bilateral mechanism would provide a platform where American companies can not only discuss opportunities with Indian
An equal joint venture between L&T Infrastructure Development Projects (IDPL) and Tata Steel, Dhamra Port Company Ltd (DPCL) was commissioned in May 2011 with an 18-km approach channel and a dedicated 62.7 km rail link to Bhadrak. In May, it had executed a pact with both the companies to acquire the Port for about Rs 5,500 crore.
officials and businesses, but also discuss problems and how to get around them,” said the official. The US was India’s top export market last year. FDI flow from the country was to the tune of $806 million during the year, which was just 6 per cent of the total FDI.
August 25-31, 2014 5
Challenges in ‘going Green’
The industry faces increasing pressure on their response to waste, resource use, carbon and energy management and their supply chain.
Construction has been accused of causing environmental problems ranging from excessive consumption of global resources both in terms of construction and building operation to the pollution of the surrounding environment.
However, relying on the design of a project to achieve the goal of sustainable development, or to minimise impacts through appropriate management on site, is not sufficient to handle the current problem.
Design stageThe a im fo r sus ta i nab i l i t y
assessment goes even further than at the design stage of a project to consider its importance at an early stage, before any detailed design or even before a commitment is made to go ahead with a development.
However, l itt le or no concern has been given to the importance of selecting more environmentally
CONSTRUCTION
The construction industry is trying to compete in an ever
‘greener’ market while tackling challenging economic, regulatory
and environmental issues
Today, businesses across all s e c t o r s a r e c o n f r o n t e d w i t h innumerable challenges with the issue of sustainability consistently appearing at or near the top of both public and private sector agendas. The Indian construction industry forms an integral part of the economy and a conduit for a substantial part of its development investment, is poised for growth on account of industrialization, urbanization, economic development and people’s rising expectations for improved quality of living. Construction constitutes 40 per cent to 50 per cent of India’s capital expenditure on projects in various sectors such as highways, roads, railways, energy, airports, irrigation, etc and is the second largest industry in India after agriculture. It accounts for about 11 per cent of India’s GDP.
Key priorityIn the current economic climate the
construction and demolition industry is under ever increasing pressure from government, clients and the public to be seen as an industry where sustainability is a key priority.
The construction industry is trying to compete in an ever ‘greener’ market while tackling challenging economic, regulatory and environmental issues.
friendly designs during the project appraisal stage; the stage when environmental matters are best incorporated.
The construct ion sector has enormous environmental impact. From a climate perspective alone, buildings’ greenhouse gas emissions are significant and growing fast. Furthermore, construction materials are responsible for tremendous damage through mining, deforestation and other impacts resulting from their production and supply.
W i thou t ma jo r changes i n practices, at some point this century we will simply run out of some of the key resources (such as certain metals) required to keep up with the explosive growth in building demand. We are simply exploiting resources at a much greater rate than the planet can sustain.
While most current efforts in sustainable construction projects are put into energy ef f ic iency, sustainability is not limited to this aspect. Another apparent trend is
that still too often thoughts on how to make new buildings Green are only addressed in the final stages of construction (retrofitting). While this practice is relevant to existing buildings, it is the wrong approach for new buildings. The vast majority of successful sustainability elements in a construction project go into the initial design.
Pressure to reduce carbon impact
In recent years the industry has faced ever increasing pressure to reduce the carbon impact of materials and water use in the built environment by embedding resource efficiency principles in the design and construction of new buildings, infrastructure and refurbishment projects.
Efficient and innovative design and construction not only paves the way towards a fu tu re o f sustainable construction, but also reduces construction and facilities management costs while providing a competitive edge.
The move to a more sustainable construction industry wi l l pose questions, but also offers major opportunit ies to organizat ions. Buildings and infrastructure should now interact with their environment including smart grids and sustainable transport infrastructure.
The Green Building Challenge (GBC) is the f i rst internat ional col laborat ive ef fort to develop an internat ional envi ronmental assessment method. The prime objective of the GBC was to overcome the shortcomings of the existing environmental assessment tools to
allow for regional variations in the evaluation.
The Green Building Tool (GBTool) has been developed to embrace the areas that have been either ignored or poorly defined in existing environmental building assessment methods for evaluating buildings throughout the world.
Sustainable construction concerns more than just the fabric of buildings. Construct ion, mainta in ing and occupying buildings accounts for almost 50 per cent of the UK’s carbon dioxide emissions. New innovative and unique developments provide an excellent opportunity to build homes and offices that are better not only for the environment, but have cheaper construction and operation costs.
Funding constraintsThe transition to becoming a
sustainable business is probably the biggest change since the introduction of IT. Companies and public sector organisations are facing funding and resource constraints while they continue to wrestle with high energy prices. They are also under pressure from governments, regulators and consumers to pay more attention to environmental issues.
To comply with legislation and to ensure competitiveness in future, carbon and energy management are key areas of focus for the construction industry. The industry faces increasing pressure to report transparently on carbon emissions and to implement energy efficiency measures both in internal operations and new builds.
Companies are going to need the right expertise to deal with new pressures and make the most of new opportunities. We all have a responsibility to build a sustainable future and it’s important that the construction industry meets these challenges head-on.
August 25-31, 2014 6PROJECTS UPDATE
To reduce dependence on roads for cargo movement and to reduce the costs, JNPT, country’s largest container port, will be setting up satellite ports at Wardha, Aurangabad and Surat, Shipping Minister Nitin Gadkari said recently.
Wardha and Aurangabad (both in Maharashtra) will have dry ports from
where the cargo will be moved by railway, while at Surat there will be a water port, Gadkari said.
He was speaking at a function at the Jawaharlal Nehru Port Trust (JNPT) in the presence of Prime Minister Narendra Modi who laid foundation stone for an SEZ.
Panel formed to clear green hurdles to
road, rail projectsTo ease bureaucratic hurdles
hampering infrastructural growth, the PM-appointed ministerial committee on infrastructure has decided to clear outstanding issues involving railways and green clearances for road projects. According to sources, there are about 150 road projects worth over Rs 50,000 crore which are stuck due to pending clearances from both railways and the environment ministry.
The first meeting of the committee took place recently.
It is understood that all the three ministers – environment minister Prakash Javadekar , road and highway minister Nitin Gadkari and railways minister Sadananda Gowda – decided that the environment ministry would soon delegate powers directly to the states and regional offices to give a green nod to linear projects involving
The Centre has launched a fresh initiative to help companies get over five dozen approvals to start a project through a single online platform as part of its attempt to make it easier to do business.
The Project Monitoring Group (PMG) in the cabinet secretariat had initially identified two dozen approvals that are required from the Central government, while another 35 clearances needed from the states but the first round of discussions has shown that the number of online approval is set to rise significantly.
Therefore clearances from the Sebi, the Employees Provident Fund Organization, the Reserve Bank of India as well as from states, including those related to the land acquisition law, town and country planning department or the Electricity Act will be available through one platform, e-biz.
The idea is to digitize the processes and then get on e-biz, which was conceived five years ago by the department of industrial policy and promotion but has failed to take off as other government agencies have refused to cooperate.
As a result, investors can only get two clearances — an Industrial Entrepreneur Memorandum and an Industrial Licence via e-biz. In several cases, such as the EPFO or the Employee State Insurance Corporation (ESIC) registration, or forest clearances, a facility to get the approvals online is available, but not through e-biz, the site meant to get approvals in one place. Over the next
forest land up to 40 hectares. Once this is done then the move is expected to ease almost 70-80% of ̀ not-so-big’ but strategic projects, at the state level itself without any interference from the centre.
The MoEF also decided to consider proposals to allow state governments to give permission for mining of earth such as sand up to 20 hectares as against the existing norm of 5 hectares. This relaxation will eliminate one level of bureaucratic clearance and have a spiralling effect on saving time and increasing availability of this crucial raw material for road construction.
Government officials said the road ministry would soon put a formal proposal to MoEF to take sand out of the minor minerals list, because of which the subject is referred back from state to centre.
few months, environmental clearances will go online, but again will not be on e-biz. There are several areas such as railways, where there has been little effort on putting together an electronic clearance mechanism.
At the same time work has started on reengineering the clearance mechanism and stakeholders, including industry representatives have been contacted, to simplify the system. In several cases, such as the Companies Act, where the process of digitization has been cleared, several clearances have to be routed via the e-biz platform, which will go beyond registering companies and getting a director’s identification number (DIN).
In a lot of cases, officers said, the problem lies with the software. For instance, the Directorate General of Foreign Trade was trying to link its electronic bank realization certificate (e-BRC) set up with the RBI and customs platforms but had run into software glitches as the vendors were different.
In the 24-odd central laws or notifications that are being studied by PMG, Infosys and the government’s National Informatics Centre (NIC) are the software developers, while other companies have been roped in by government agencies.
Although states such as Andhra Pradesh and Delhi had shown interest in joining the e-biz project, the Centre has failed to get them on board and PMG is now working to move to a single platform as well.
Czech expertise to develop
semi high-speed trains
With an aim to get expertise in running semi high-speed trains and modernising signalling system of Railways, India signed a Memorandum of Understanding (MoU) with Czech Republic. The MoU was signed between Indian Railways and Czech Railway for technical cooperation in the field of railway sector, said a senior Railway Ministry official.
Indian Railways, which has plans to run semi high-speed train, will benefit from the technical expertise of Czech on the project.
Currently, Railways is on a project to increase train speed to 160 km per hour between Delhi and Agra. Once the Delhi-Agra project is successful, it plans to explore possibilities of increasing the speed to 200 km per hour.
The potential cooperation areas between the two countries also cover automation of freight operations, station development and workshop modernisation.
The MoU is valid for a period of three years and can be extended for successive periods at one year a time.
India seeks S’pore investments in infra projects
Bidding for Rs 10k cr Lucknow-Agra Expressway complete
India has sought investments from Singapore in its infrastructure and connectivity projects along the ambitious Delhi-Mumbai and Chennai-Bangalore industrial corridors as well as in the north-eastern region.
Kicking off an year-long celebration to mark 50th anniversary of the establishment of bilateral diplomatic ties jointly with her Singaporean counterpart K. Shanmugam, external affairs minister Sushma Swaraj said the occasion will be used to advance
The bidding process for Chief Minister Akhilesh Yadav’s dream project, the 301 km long six lane Lucknow to Agra Expressway was completed recently. Senior officials shortlisted the lowest bidders and the final contract would be signed shortly.
UP Expressway Industrial Authority ( UPEDIA) Chairman and CEO, Navneet Sehgal said that financial bids had been submitted by various developers which were opened recently and the bid evaluation committee identified the lowest bidders.
PNC Infratech was found to be the
economic engagement, defence and security cooperation between the two countries.
Seeking enhanced investment from Singapore, Swaraj said both the countries should also look at scope of venture capital for innovations and for cooperative projects in third countries. “We look forward to Singapore companies to speed up connectivity and infrastructure projects in India, particularly, along the Delhi-Mumbai Industrial Corridor (DMIC),
lowest bidder for the Agra-Firozabad stretch, Afcons Infrastructure for Firozabad-Etawah stretch, Nagarjuna Construction Company for Etawah-Kannauj, Afcons Infrastrcuture for Kannauj-Unnao, and L&T for Unnao-Lucknow.
The Lucknow to Agra Expressway has been divided to five stretches or packages for handing out the construction contract of the access controlled way expressway would be of 6 lanes extendable to 8. The expressway will be built under the EPC (Engineering, Procurement and Construction) model, and will be
the Chennai-Bangalore Industrial Corridor and the North-East. Singapore could develop a virtual city or a ‘little Singapore’ somewhere along the corridor,” she said.
Swaraj also asked Singapore to provide its expertise in development of smart cities in India. The concept of “smart cities” as satellite towns of larger ones was enunciated in last month’s budget by the new NDA government which has allocated a sum of Rs.7,060 crore for the ambitious plan.
funded by the state government. The government is also purchasing land directly from the farmers for this project. Officials said that land has been acquired in most places and the construction is expected to be complete in 3 years.
Investment to the tune of nearly Rs. 10,000 crore is expected in the expressway which will also have several manufacturing zones and industrial clusters coming up alongside it. The expressway is expected to cut down the travel time between Lucknow to Agra to under 4 hours from the present 8 hours.
JNPT plans to build three cargo ports
Centre okays single platform for all projects
August 25-31, 2014 7
Fortum’s focus in India is on sustainable and energy-efficient power and heat production and customer solutions. The company’s immediate priority is on combined heat and power for industrial supply of power and steam. Vickram Jadhav VP CHP Fortum talks about growth opportunities with local partners, other forms of sustainable energy production and customer solutions in this interview with Remona Divekar. Excerpts:
IN PERSON
‘Solar PV applications will play a big role in achieving cost savings’
Fortum established an Indian Liaison Office during the first quarter of 2012 to evaluate investment opportunities and carry out required initial development efforts enabling decision- making for Fortum’s future investments in India.
In addition, as a second step Fortum also established a private limited company as of the third quarter 2012. Fortum has its operations located in Gurgaon in the National Capital Territory of Delhi.
In June 2013 Fortum acquired 5 mw solar power plant in the state of Rajasthan, north-western India. The company’s short-term ambition is to build a small photo-voltaic (PV) solar portfolio in order to gain experiences in different solar technologies and operating in the Indian power market
Fortum focus in India is to meet India’s need for sustainable power and steam generation, utilizing local resources with high efficiency and low emissions. Its immediate priority is to assess investment opportunities in combined heat and power (CHP) plants to provide utilities for industrial clusters and in investment opportunities in solar PV and to provide expert services for third parties for increased energy efficiency.
Would you highlight your major strategies for business expansion in India?
As mentioned earlier, Fortum sees India as a market with a great potential, due to its geographical location and high-energy requirements. In June 2013, we acquired 5 mw solar power plant in the state of Rajasthan to understand the market better.
The company’s short-term ambition is to build a photo-voltaic (PV) solar portfolio in order to gain experiences in different solar technologies operating in the Indian power market.
Our aim in India is to evaluate investment opportunities contributing to the development of India’s energy infrastructure. We believe that Fortum
projects. Further, these projects create REC benefit; however, this is not recognized as yet.
How is For tum’s leadership position in renewable technologies, particularly CHP?
Fortum has extensive experience in CHP production in Finland, Sweden, Russia, Poland, the Baltic countries and Great Britain. It is one of the largest heat producers globally; we own totally 31 CHP plants in Europe and in Russia.
In 2012, CHP production accounted for 32 per cent of Fortum´s total power production and 79 per cent of the total heat production. We have a very good experience in using multiple fuels in our CHP production, and we now aim to bring this competence to India.
Our ambition is to use what we call local fuels, that is, various types of biomass or waste, whenever possible. In India this could mean for example
What are the opportunities and challenges for India?
Combined heat and power is not a very new concept in India and the current installed CHP generation capacity is more than 7 gw. However, these projects are largely captive projects in different segments owned by metal, sugar, chemicals, textiles and other industries.
There has been limited development towards large scale combined heat and power plant supplying to process industries. Moreover, heat prices in India are much lower than power prices which have led investors/developers to focus on ‘power’ projects.
Additionally, the experience of Indian players in the heat market is limited, while most of heat consumers currently produce heat from local fuels, imported coal or furnace oil/diesel.
There are several reasons why new investments in cogenerations are not being taken up, including footprint requirement regulatory issues, and fuel logistics in India. The new innovative plans are planned to produce heat and power cogeneration to promote investment in this segment.
The Group Captive SPV needs to have an injection of equity by the Group Captive Power Users aggregating to 26 per cent and these users need to consume 51 per cent of
has a lot to offer to the rapidly developing Indian energy market, based on our long track record in sustainable power, heat production and our energy market competence.
India is witnessing a robust growth in energy demand with population growth, rising standard of living which is increasing consumption and energy needs. At the same time, making the best use of natural resources and finding ways to mitigate risks resulting due to increasing emissions from power generation is also crucial to India. This means that energy has to be produced and used more efficiently and in a smarter and sustainable way in India in the future.
How does Fortum look at Market India 2014 for renewable energy?
Renewable energy, especially solar PV applications, are going to play a big role in achieving cost savings for cooling and heating applications. We believe rooftop solar is also going to reduce the cost burden for the industries which are running on diesel sets and will definitely reduce diesel consumption.
Several cities in India, especially in the southern and western part of India, are witnessing significant traction in rooftop installations. Hence, we believe there is a case that open access charges should not be applicable to these sorts of renewable energy
coconut shell, cashew shell, rice or coffee husk. We always strive to work closely with local communities, and using local fuels is one important way to bring benefits locally as well.
What is CHP’s relevance to India?We have observed that the concept
of CHP is not new to India, but there is a need to have knowledge transfer from global experts. We believe, CHP compatibility allows for very high primary fuel efficiency and also the use of a wide range of fuels.
Through CHP, one can achieve the efficiency level as close as 90 per cent while efficiency with separate power and steam production is around 35 per cent and 70 per cent respectively. By locally centralizing the production of heat and electricity, and supplying industrial clusters, several benefits can be gained for the industries and society as a whole.
Combined heat and power production in an industrial cluster considerably increases the security of supply, reduces the need for very costly and mostly diesel-run, high emission back-up power or production losses due to industrial process failures.
Moreover, by focusing on their core operations, customers can reduce their operational costs, optimize the use of their land and capital, increase efficacy by focusing on their core competence and operate with an overall more sustainable production process, including fuel and waste handling.
the power generated by the plant in the same proportion 26/51.
In case this condition is violated the SPV is penalized, making the entire cost structure unviable because many levies including cross subsidy charges are charged. Open access: The CHP plant will necessarily rely the grid to export and supply the power to its group captive users i.e. open access.
In most of the states the DISCOMs create impediments in practically granting open access. Utility corridor is required to lay steam lines, condensate lines to supply steam to its users. However the utility corridor is absent or not planned for the CHP to construct this utility corridor in most Industrial clusters.
How is the Indian market accepting the offerings from Fortum?
Large scale CHP requires a long term investment horizon on the part of company which no company has dabbled with till date. Also, CHP is not yet a proven technology in India and could create headwinds for new investors in terms of returns.
Taking into account the technology aspect and factoring in the host of regulatory issues, CHP green field investments need time to materialize. Having said that, the benefits are easily understood by the market and therefore the initial response is good in terms of clients’ interest and we are confident to share some concrete developments soon.
August 25-31, 2014 8CONSTRUCTION
Buildings Go Smart!
Smart buildings are now providing us with more reliable, efficient and
environmental-friendly places to work and live
manufacturers. If they decide to replace one vendor’s system with another – or add to the system with another vendor’s equipment – they can do so without dismantling the existing technology and starting over.
B y u s i n g a c o m m o n c o m m u n i c a t i o n s l a n g u a g e , hardware and software from different companies can continue to perform their important building operations functions.The BACnet and LonTalk communication protocols have taken interoperability to a new level.
As more owners specify building control systems uti l iz ing open, standard communications, they are more assured of having equipment f lexibi l i ty. Specialty and legacy protocols like ModBus and DHP are st i l l par t of the inte l l igent communications framework because many meters, lighting devices and industrial control devices utilize them. A new set of protocols dedicated to
‘Smart Buildings’ is a short and snappy term for ‘dozens of intelligent systems that help to run a facility more efficiently and are now ready to deliver giant leaps in productivity.’ These systems – including sensors, software, controllers and connections – have been rehearsing for this performance since the days when connectiv i ty, open architecture and interoperability became new industry buzz words. They have been properly equipped for their new journey. Their seat belts are in place. And they’re ready to impress top management with their enhanced abilities to bring a dizzying array of building-related data into crystal clear focus to better aid in achieving the organization’s goals. The great promise of integration’s benefits is finally being realized.
Owners are demanding more information about the performance of their buildings so they can reduce operating costs, meet corporate sustainabi l i ty goals, and keep occupants safe, comfortable and productive. They are anxious to take full advantage of recent technology advancements, which this article will explore.
Intelligent devicesNew applications have emerged
that allow intelligent, standalone bui ld ing management dev ices to do much more than connect, or ‘talk,’ to one another over a standard communications network. These devices are now able to have meaningful ‘conversations’ that truly tap into their embedded intelligence. Working together, without human assistance, they can predict trouble and in many cases take preventive act ions to avoid problems. In essence, smart bui ldings help owners attain their facility-related goals by optimizing the capability of all equipment and systems across their entire enterprise. Intelligent, standalone systems still offer good value for bui lding owners, but ‘good’ isn’t good enough in this new environment. Their productivity has been hindered because there were few applications that took advantage of their brain power.
The intelligence has to be applied, and now we have the applications to help these systems live up to their full potential. This has been the missing chapter in the integration story.
Technology improvements also have allowed greater control over an entire enterprise of facilities, whether in a single campus environment, spread across the country, or even in multiple countries. The time is ripe for building owners to receive much more value from their investment in the many systems it takes to run a 21st century facility.
Great stridesOver the past few decades,
the building control industry has made great strides in moving from proprietary systems to an open architecture that allows devices to become interoperable.
This gives owners more flexibility in choosing components from various
authorized at a high level in the organization to reduce costs and increase efficiencies.
Where are we now? The fo l lowing examples are
technologies that are current ly ava i l ab le to fo rward - th ink ing o r g a n i z a t i o n s : M a n a g i n g sustainability goals; Chiller plant optimization; Connecting to smart grids Managing Sustainability Goals For decades, building management systems have automated the process of providing just enough energy to heat and cool buildings according to established criteria – and then closing the valves and dampers until more air flow is required.
These energy efficiency measures contr ibute to an organization’s sustainability goals, such as tracking and reducing greenhouse gas emissions. But if the data is trapped within the building management system, executive-level decision-makers may not find it.
until recently this was of limited value because the communication was both proprietary and included only general information.
New techno logy pe rmi ts a common control communication method (usually BACnet), which allows for increased optimization o f mu l t ip le ch i l l e rs ac ross a campus network – even if they are from different manufacturers. Sophisticated control algorithms, compiled from extensive chil ler plant experience, enable chillers to be operated more efficiently than ever before.
Trans la t ion sof tware ca l led ‘middleware’ gathers data from all automated systems throughout an enterpr ise – regard less of manufacturer or communications protocol – and merges it into a common platform for analytics and reporting.
This capabil i ty is referred to g e n e r i c a l l y a s c h i l l e r p l a n t o p t i m i z a t i o n . I n t h i s c o n t r o l environment, chillers can achieve much greater e f f ic iency when operating at off-design conditions – which is how they spend 99 per cent of their operating hours.
For example, many chillers can utilize colder tower water than in a traditional setting and provide higher-than-design tonnage when outside temperatures and humidity are less than design maximums. Both of
an ideal place to start. Electric utilities have been introducing programs that allow real-time adjustment of demand in addition to supply when wholesale prices are high or when grid reliability is ‘jeopardized.’
I n t e l l i g e n t c h i l l e r , p l a n t optimization, automatically prevent operating conditions that could age equipment prematurely or compromise reliability by comparing intended loading with manufacturer recommendations.
Speaking of weatherThe following example provides
ano ther i l l us t ra t ion o f how a smart building can save energy by communicating with external sources. Many organizations have building management systems that collect historical data regarding energy consumption under certain weather conditions. Why not go a step further and have monthly utility bills feed into the building management system?
Then connect to the National Weather Service’s web site to view the weather forecast for the next few days. You should then be able to project your energy spend and make proactive adjustments where necessary to curtail expenses.
So when summer temperatures reach extremes, a slight, automatic increase in the temperature setpoint for office areas will seem perfectly accep tab le to mos t bu i ld i ng occupants. This reduces electrical demand. And, with access to the right historical data and intelligent, integrated systems in place it’s easy to calculate the resultant energy savings and carbon footprint impact.
U s e f u l i n f o r m a t i o n f o r benchmarking or forecasting also can be extracted from trade associations or other like-minded organizations. Intelligent systems can be trained to seek these out as part of their daily routines or when in troubleshooting mode.
Proceed with cautionThe delivery of the current state
of the art is not for the casual contractor. It requires people with the unique skill set to blend control with communications and systems integration. Firms that specialize strictly in information technology, controls or integration most likely will not be capable of delivering a truly smart building. And for the next generation of building systems, facility professionals will require access to even more information to take full advantage of tomorrow’s intelligent systems. Smart buildings will surely become a lot smarter in the future. Skills and training must keep pace with technology breakthroughs. Smart buildings will surely become a lot smarter in the future. Skills and training must keep pace with technology breakthroughs.
Future looks bright The fu ture looks br ight fo r
o rgan i za t ions tha t pu t smar t buildings to work in the pursuit of greener facilities. Bright green, as a matter of fact. The following excerpt is from ‘Bright Green Buildings: Convergence of Green and Intelligent Buildings,’ a report published in 2008 by the Continental Automated Buildings Association (Caba) and Frost & Sullivan.
The report emphasizes the many benefits to owners who go beyond merely greening their facilities. A bright green building is one that is both intelligent and green. It is a building that uses both technology and process to create a facility that is safe, healthy and comfortable, and enables productivity and wellbeing for its occupants.
wireless communications must now be considered as well.
Communication highwayMost recently, the IT infrastructure
h a s p r o v i d e d t h e p r e f e r r e d commun ica t i ons h ighway fo r various building systems. In this environment, a temperature control system rides on the same flexible, secure communications network as the payroll system, the network servers and much more outside of the facility director’s traditional realm of responsibility.
The IT operations staff monitors the t raf f ic to make sure every application is running smoothly at the enterprise level. This frees up the facility operations staff to better focus on the performance of systems that provide occupant comfort, security, life safety and other similar concerns. All of these developments have been leading up to the point where disparate building systems are beginning to add real-t ime information to all points along the IT highway, in a universal language.
More importantly, the information about building performance is being translated into management-friendly displays so that changes can be
Trans la t ion sof tware ca l led ‘middleware’ gathers data from all automated systems throughout an enterpr ise – regard less of manufacturer or communications protocol – and merges it into a common platform for analytics and reporting. One result is a web-based dashboard display that offers a visual snapshot of which facilities are experiencing high energy usage, abnormal maintenance costs, and many other situations that deserve prompt attention.
E x e c u t i v e s i n c h a r g e o f sustainability and carbon footprint management are now able to see the big picture of their organization, no matter how many buildings or geographic locations are involved. When information is available quickly and can be accessed anywhere, managers are able to make better decisions that have an immediate impact on profitability.
Chiller plant automation Modern chil lers are complex
mechanical devices that can be extremely costly, depending on their size. They have long had the abil ity to communicate with the building management system, but
these reduce energy consumption and greenhouse gas emissions when applied intelligently.
Depending on the level of the intelligence, there can be additional benefits. Intell igent chiller plant optimization automatically prevents operating conditions that could age equipment prematurely or compromise reliability by comparing intended loading with manufacturer recommendations.
In addition, with detailed logging and trending, data can be instantly accessed that will assist in diagnosing and fixing problems quickly. Correctly applied chiller plant optimization reduces operating costs in both existing and new chiller plants.
In an existing, constant-speed plant, it has been shown to lower energy consumption by about 10 per cent. However, in a new plant with variable-speed drives and the proper piping configuration, energy savings might approach 40 per cent as compared to older, non-automated plants.
Connecting to smart gridsTruly smart buildings will leverage
knowledge that resides outside its walls and windows. The smart grid is (Contd. on pg 11)
August 25-31, 2014 9EQUIPMENT
Indian CE industry to constitute 10 pc of global market
which will boost urbanization in India, as the government has granted new infrastructure projects and is allowing huge investments in the infrastructure industry.
“Burgeoning real estate industry, increasing coal production and mechanization of mining operations, will aid the growth in the country’s equipment industry. India is expected to see more competition among existing players in this segment with an aggressive growth strategy,” he said.
The residential construction industry is expected to grow from CAGR of 10.8 per cent between 2006-11 to 15.3 per cent by 2017, the report said.
According to the survey, developing and developed world would grow
64 per cent and 86 per cent , respectively by 2050, and growth will be concentrated in India and Africa due to large percentage of youth.
Aulbur further said that if India has to successfully constitute 10 per cent of the global market, the construction equipment players need to take key strategic actions.
“They will have to design and build equipment suitable to the Indian market. They should also look at a distinctive export business approach,” he said.
On the policy front, the report said there is a need for focused systemic changes towards credit enhancement, banking and regulatory interventions.
The report further said that since the construction equipment capacity
On account of investments in the infrastructure sector, the Indian construction equipment industry is likely to grow at 12 per cent, increasing India’s global share to 10 per cent by 2017, says a survey.
As per a repor t by Roland Berger Strategy Consultants, India’s construction equipment market, though small by global standards, is extremely competitive and has players operating under different strategies.
“The market is expected to grow at 12 per cent CAGR to $4 billion by 2017, which will be driven by infrastructure investment of $1 trillion during the 12th Five-Year Plan,” said company’s Managing Partner Wilfried Aulbur.
Post-2014 general elections, there is an expected economic resurgence
India’s first Potain MCi 48 C delivered to Divakar
India’s f irst Potain MCi 48 C has been set to work on a hospital building in the heart of Mangalore. The 2.5-ton tower crane, which is aimed at mid-level construction projects, was purchased by Divakar Construction & Builders.
And the unit has made a solid first impression; its new owners now plan to buy a Potain MCi 85 A, a model that the contractor has previously rented.
“The crane we rented was the perfect example of what Potain cranes are about; high-quality design, maximum jobsite efficiency, and unbeatable return on investment,” commented Divakar, the crane’s owner.
“The next logical step after renting was to buy one of our own. As one of the top civil contractors in this region, it is important that we use industry-leading equipment that can perform on a huge variety of job sites. I am delighted that we are the first to welcome this innovative new crane to India,” he added.
The Potain MCi 48 C is currently building a convention centre at the Mangalore hospital. The tower crane is being used to place a combination of steel, cement, rock, and concrete at the site.
Divakar intends to use the same unit to build residential apartments, commercial buildings, educational inst i tutes, and other hospitals,
soon after its current job has been completed. With a new national government in place, the contractor is in no doubt that his Potain lifter will be kept busy for the foreseeable future.
“We’re confident that this political
change will have a positive impact on the market,” said Divakar.
“With a new government in place, we’re hoping that regeneration and development of urban areas will mean more building projects for companies like us,” he said. Zoomlion has announced that
it has made a $340 million offer to acquire a 60 per cent stake in Chery. The Chinese construction equipment manufacturer is looking to profit from Beijing’s drive to promote large-scale rural modernisation.
The attempted acquisition forms part of Zoomlion’s strategy to “become a leading agricultural machinery enterprise in China”.
The Changsha-based manufacturer is seeking to acquire 1.8 billion shares in Chery Holding, one of China’s
leading agr icul tural machinery producers. Last year, Chery’s turnover was “one of the highest among the agricultural machinery enterprises in China”, according to a statement from Zoomlion. A top company official said they are open to acquisition opportunities in March of this year. The successful acquisition of Chery would help Zoomlion to compete with other international agricultural machinery manufacturers also making moves in China, such as John Deere and CNH Industrial.
Zoomlion to bid for a 60 pc stake in Chery
Caterpillar launches rental-oriented telehandlers
Caterpillar has unveiled a pair of telehandlers designed to meet the needs of rental-fleet operators. The TH414C GC and the TH417C GC models deliver low-cost operation, reliability, and ease of use, according to Caterpillar.
With their heavy-duty booms and frames, the robust units have been built to offer hire firms safe returns on their investments. The TH414 GC boasts three boom sections, a rated load capacity of 3,600 kg and a maximum lift height of 13.85m.
The TH417C GC, which is the larger of the two machines, sports four boom sections and offers a rated load capacity of 4,000 kg and
a maximum lift height of 17m. The GC telehandlers use four-cylinder, 74kW 3.6-litre engines and 3F/3R power-shift transmissions. Both models feature permanent four-wheel drive and use limited-slip differentials in their front axles for enhanced traction.
For added versatility, the machines are equipped with Caterpi l lar’s standard Integrated Tool Carrier quick coupler, which is compatible with other telehandler models produced by the manufacturer. The system can accommodate standard and side-shift carriages, general-purpose and light-material buckets, 4m truss booms, and lifting hooks.
Moreover, the heavy-duty booms of the models feature external-cylinder designs and chain drive systems to deliver speed, impressive load capacity at full reach, and ease of maintenance.
The machines’ daily maintenance points have also been situated with rental companies in mind; all of these points, including drain ports and filters, are accessible from ground level.
Caterpillar is confident that by keeping costs low, reliability high, and operation simple, the TH414C GC and TH417C GC models are likely to appeal to rental companies across the Europe, the Middle East, and Africa (EMEA) region.
The public sector undertaking BEML has launched an excavator BE220G. The new excavator is fitted with ergonomically designed cabin for operator comfort and all-round visibility.
The console is provided with LCD
display which constantly monitors all the vital parameters.
The operat ing weight of the excavator is 22,800 kg, powered by 4-stroke, turbo charged, direct injection engine with gross power of 110 KW at 2100 rpm.
far exceeds current and near- term domestic demand, increasing share of exports is a potential option to improve utilization but would require focused effort by OEMs (original equipment manufacturers) for sales channel development and is not something that can be achieved quickly.
BEML rolls out new excavator
August 25-31, 2014 10
Real estate mogul Donald Trump is likely to invest in a yet-to be announced Trump Towers project which is currently being developed by Panchshil Realty in Pune. Trump, Chairman & President, the Trump Organization, was in Pune to unveil the Trump Towers show suite.
The project which was announced by Panchshil Realty in 2012 is likely
REAl ESTATE
in the next two-three months,” said one of two people who confirmed the development.
Crompton is selling part of its total 34-acre land parcel at the city’s Kanjur Marg suburb while retaining around nine acres on which its factory is situated.
Runwal offers `1,000 cr to Crompton land in Mumbai
Runwal Group has offered to pay Crompton Greaves Rs 1,000 crore for 25 acres in Mumbai, making it the highest bidder ahead of Lodha Developers and Kalpataru. “The due diligence is going on right now and the deal is expected to be concluded
Mumbai, Pune property prices leave Delhi behind
Infra status for housing sector sought
Delhi and Mumbai, two of the biggest residential property markets in the country, have shown divergent trends in price appreciation in the past two years. While Delhi recorded the least price rise at 4.4 per cent, Mumbai showed highest appreciation at 25.27 per cent between June 2012 and May 2014.
The prices in Pune grew 21.9 per cent, in Bengaluru 19.47 per cent, Kolkata 17 per cent, Hyderabad 16.8 per cent and Chennai 13.2 per cent during the same period, according to data by real estate firm research firm Prop Equity.
In the same period, the inventory levels have been rising. The Mumbai Metropolitan Region has an inventory of 53 months at the end of June this year, while the National Capital Region has an inventory of 45 months, the data by research firm Liases Foras.
Buyers were in a wait-and-watch mode. “The demand is there, but people have been delaying their purchasing decisions due to various factors which lead to such a huge inventory pile up,” said Harinder Singh, MD, Realistic Realtors.
Due to developers’ focus on clearing the existing backlog, the number of new launches has also come down drastically in the range of 47-92 per cent across all seven major cities at the end of May this year,
The chronic housing shortage in India requires reforms in the banking sector and investment policies to achieve the government’s vision of ‘housing for all’ by 2022.
“Currently, bank’s exposure to the realty sector is only 5 per cent and is way too small,” said Sunil Mantri, President, the National Real Estate Development Council (Naredco), adding that internationally, it was between 20 per cent and 25 per cent.
He said the sector had been facing a liquidity crunch and investment in the housing sector would have positive impact on the entire economy. Naredco has put forward an agenda that it expects will help developers raise investments as also promote low-cost housing.
“Firstly, an infrastructure status must be granted to the sector and
compared to June 2012, according to Prop Equity data.
Experts say the slowdown has impacted the investor’s market of Delhi-NCR the most. Many non-resident Indians had stopped buying and there was hardly any activity in the past couple of years, leading to such minimal appreciation in prices.
The realty market is seeing declining sales coupled with higher inventory for the past two years. Moreover, developers are hard-pressed on funds with not many lenders willing to lend money to the ailing sector.
Earlier, the political uncertainty had impacted buyers’ and investors’ confidence. It was expected that the demand would return in the sector once sentiments improved. However, now it seems it will require much more than sentiment for a full revival in the sector. With a new government in place, experts are expecting the realty sector to bounce back soon.
The markets have already started showing signs of an improvement. “The activity and interest level have gone up since the formation of a new government. We are seeing increased property inspection visits as well as increased footfalls in developer’s offices of potential buyers/sellers.” said Ashutosh Limaye, Head (research & real estate intelligence service) at Jones Lang LaSalle India.
the interest rate on retail loans should be brought down to 7 per cent. Besides, loans should be provided for acquiring land when it is used for affordable housing under the Reserve Bank of India (RBI) guidelines for prioritization of home loans. Also, external commercial borrowings (ECB) should be allowed for the housing sector,” said Mantri.
On foreign direct investment (FDI) in the sector, Mantri said that between 2008 and 2014, around $953 billion was invested in the real estate sector. Of this, household (personal savings and other borrowings) have contributed 72 per cent, institutional lending, including home loans (by banks and housing finance companies), accounted for 18 per cent followed by government, equity raising (private equity and capital markets) and private sector contributing 3 per cent each.
Trump may make equity investment in second Trump Towers in Pune
to be completed over the next 8-10 months. Atul Chordia, Chairman, Panchshil Realty, said that given the response to the first Trump Towers, they were working on a second project.
“This is currently at the drawing board stage and would be announced sometime next year,” he said, adding that it would be located somewhere
along the river in Pune.Trump said, “We are a very liquid
company and I would expect to invest in this new project. We have a great relationship with the Chordia family and would want to work together on other things.”
The new project is expected to be significantly larger than the current one and likely to fit the size requirement needed to allow FDI. The current project is about 85 per cent complete, and the company has sold 70 per cent of the inventory in the first tower.
Once comp le ted , i t wou ld comprise 46 apartments of 6,000 sq ft each, spread over two buildings, with one apartment per floor. If the second project goes through, it would be the second project that the Trump Organization would be doing with Panchshil Realty in Pune and their third in India.
ASK Group to invest `55 cr in Pune project
Housing for all: India needs $2 trillion
A S K P r o p e r t y I n v e s t m e n t Advisors, the real estate private equity arm of the ASK Group, has decided to invest Rs 55 crore in a new township project of Paranjape Schemes in Bhugaon, Pune.
This is the eighth investment from the group’s second domestic fund, which was set up in 2012 with a corpus of Rs 1,000 crore. The project is spread over 150 acres and will include apartment blocks.
ASK Property Investment Advisors had earlier invested Rs 40 crore in Paranjape Scheme’s Model Colony project, Skyone, in 2012. Sunil Rohokale, CEO, ASK Group, said, “We are expecting an incremental rate of return (IRR) of 25 per cent over a five-to-six-year period at
Investments to the tune of more than $2 trillion would be required by 2022 to create a stock of over 110 million housing units and achieve the target of ‘housing for all’, said an industry official.
“There is already a huge shortage of housing and if we have to achieve Prime Minister Narendra Modi’s vision of housing for all by 2022, we
the fund level. “Of the Rs 1,000 crore fund, 80 per cent of the fund has been drawn down. We are in negotiations with the developers for the remaining amount and in the next three months, the entire fund should be drawn down.”
In private equity deals, the money committed by limited partners to a private equity fund is usually not invested immediately. It is ‘drawn down’ and invested over time as investments are identified. “Our strategy of focusing on the top five cities and working in partnership with reputed developers for multiple opportunities for our various funds will continue,” he added.
The ASK Group currently manages real estate assets of more than Rs
will need an investment of at least $2 trillion to create more than 110 million units,” said National Real Estate Development Council (Naredco) President Sunil Mantri.
Investment in the sector needs to grow by around 20 per cent to achieve the target, he said. India has an urban housing shortage of about 18.7 million units, with 95 per
2,100 crore. The group has raised two domestic funds and an offshore fund amounting to approximately Rs 1,600 crore and structured debt of close to Rs 500 crore. It recently announced an investment of Rs 127 crore in a residential housing project of the ATS Group in Noida, NCR, from its offshore fund.
It has also made two exits: first in ATS -- One Hamlet in Noida, at an IRR of 54 per cent and a multiple of 2.45 over two years, and from Liviano, a project by Darode Jog Properties in Pune, at an IRR of 30 per cent and a multiple of 2.35 in three years. Both these exits are from the first domestic fund launched by the ASK Group in 2009.
cent of this shortfall in the low- cost housing segment, and 43.7 million in the rural belt.
“Apart from creating houses, there is also a need to develop supporting infrastructure and commercial real estate to achieve sustainable growth. For this, we will need additional investments of $1.5 tri l l ion,” he said.
August 25-31, 2014 11INTERNATIONAl
Frankfurt airport secures nod for terminal 3
Fraport, the owner and operator of Frankfurt Airport (FRA), has received building permit from the city of Frankfurt for construction of Terminal 3, which will be constructed on the southern side of the airport. This development is an integral part of Fraport’s airport expansion programme, which has been approved in the official zoning procedure.
The construction of the new terminal, Terminal 3 (T3), will be carried out in phases and has been designed with a modular construction concept. In the first construction phase, which is due to start next year, T3 will feature a total of 24 terminal docking positions at the two piers.
After completion, it will provide a total of 50 aircraft docking positions. Fraport expects that the investment
cost will be more than $2.7 billionn for the first phase of construction. Reuters.
Mace completes Turkish luxury resort The Mandarin Oriental Bodrum,
which was a project managed by Mace, has off icial ly opened its doors to guests. The resort is built on a series of levels nestled in a landscaped hillside. Each of the 86 guest rooms has a sun-deck and terrace or balcony, with the suites having infinity edged pools and private gardens.
Mace worked closely with the client’s development management and contracting teams to deliver
the scheme. A key challenge to the delivery was managing a complex p rocu remen t s t r a tegy, wh ich presented a significant coordination challenge with the local supply and subcontract chain.
The hotel also features a 2,700m2 spa and wellness centre as well as 10 bars and restaurants, five swimming pools, two private beaches and an aquatic sports centre and extensive conference and meeting facilities with two ballrooms.
Cemex Latam to set up cement plant in Colombia
Cemex Latam Holdings (CLM) has announced that it will construct a cement plant in Colombia. The plant, which will be located in the Antioquia department in Colombia, is estimated to involve a total investment of $340 million.
The project will enhance CLH’s annual cement production capacity
It provides timely, integrated system information for its owners so that they may make intelligent decisions regarding its operation and maintenance, and has an implicit logic that effectively evolves with changing user requirements and technology, ensuring continued and improved intelligent operation, maintenance and optimization…
In bright green buildings, fully networked systems transcend the simple integration of independent systems to achieve interaction across all systems, allowing them to work collectively, optimizing a building’s performance, and constantly creating an environment that is conducive to the occupants’ goals.
Additionally, fully interoperable systems in these buildings tend to perform better, cost less to maintain, and leave a smaller environmental imprint than individual utilities and communication systems.
Safe for humans and capitalYes, smart buildings go far beyond
saving energy and contributing to sustainability goals. They extend capital equipment l i fe and also impact the security and safety of all resources – both human and capital.
S y s t e m s w i l l c o n t i n u e t o mature as part of the converged IT infrastructure, becoming more v i r tual , and comprised almost entirely of intell igent equipment that can self-adapt to the changing building environment and participate intelligently when called upon.
Now is the time to invest. We have successfully transformed from standalone building systems with limited intelligence to integrated, smart systems converged with the IT network. They deliver extensive efficiency benefits today and will redefine the state of the art moving forward. There has never been a better t ime to make systems decisions with this end in mind.
Terry HoffmannDirector, Building Automation Systems
Marketing, Johnson Controls, Inc
Carillion signs £90 m contract for London housing
UK-based construction services firm Carillion has signed a £90 million contract with Hub Residential to deliver Hoola London project, a development in London’s Royal Docks. The scope of the contract includes design and construction of a 24-storey tower and a 23-storey tower, providing 360 residential apartments and one commercial unit.
The development will include environmental features such as blue roofs, which have been developed to manage surface water run-off and storage and energy sharing agreements to provide distr ict heating.
Work on the project will start immediately and is scheduled to be completed by late 2016. Carillion
CEO Richard Howson said, “We are delighted to have signed the contract to deliver the Hoola London development. Being chosen for this prestigious project reflects our reputation for reliable delivery, high standards of quality, value for money and sustainability, together with the strength of our long-term customer relationships.”
Townscape provides counter terror system
in SaudiBritish street furniture manufacturer
Townscape Products has provided 600 blocks as permimeter protection from vehicle-borne attacks at the new operouries m King Abdullah Sports City in Saudi Arabia.
SDS and Light Weight Building Company will provide the hostile vehicle mitigation (HVM) system. The 600 PAS 68 Counter Terror (CT) Blocks were manufactured locally under an international l icencing agreement and installed as part of a £1.2 million contract.
Known as ‘the jewel in the desert’, the 60,000-seat sports faci l i ty includes Saudi Arabia’s first Fifa-standard football venue, a 2,000 seat multi-purpose indoor stadium and a 1,000-seat athletics pitch alongside a mosque, hotel and sports hospital. It will also be home to two football clubs.
Jona than Goss , Manag ing Director of Townscape, said,” The King Abdullah Sports City is one of the most exciting developments in the Middle East which will attract thousands of visitors each year. It’s a world-class attraction which requires world-class perimeter protection.
CT b locks fo r the UK and European markets are manufactured at Townscape’s Sutton-in-Ashfield factory. Each weighs 2.2t and they are made using a mix of aggregates designed for ultimate strength.
The CT blocks only requi re minimal groundwork due to their low profile foundation. The blocks are positioned where a building is vulnerable to vehicular incursion and meet the PAS 68 standard for vehicle immobilization.
WSP wins Middle East road, airport contracts
Contractor J&P Overseas has appointed WSP for detailed design work on major airport facilities in Oman and a highway in Qatar. The Oman contract is for maintenance and cargo facilities at Muscat airport and a cargo facility at Salalah airport, Oman.
Together, the developments consist of c i rca 150,000m2 of
facilities with the maintenance hangar at Muscat to accommodate an airbus A380 and two Code C aircraft simultaneously. WSP is providing civil, structural, building services and specialist support services including fire, acoustics and security.
Qatar’s New Orbital Highway consists of 45 km of dual five-lane highway plus a two-lane truck route and
in the country from 4.5 to nearly 5.5 million tons. Phase-1 of the project will involve construction of a new grinding mill which is due to begin cement production during the second quarter of 2015.
The remaining portion of the plant is due for completion during the second half of 2016. The plant will
operate using advanced technology which adheres to high quality and environmental standards.
The complete project, financed with CLM’s free cash flow, is expected to generate about 1,000 direct jobs during construction phase and nearly 300 jobs after operations commence.
four major grade separated junctions. WSP is providing full highway design services including bridges and civil engineering structures.
WSP director Jim Ratliff said, “We are extremely pleased to have won these contracts, delivered by our teams in UK and the Middle East. We have been developing our skills addressing the Middle East market for some time now and have established a good market presence for infrastructure and commercial development. We will be looking to build on this success through our global counterparts.”
smart buildings(Contd. from pg 8)
August 25-31, 2014 12
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EvENTSSeptember 11-13, 2014
The Big 5 Construct IndiaBombay Convention Centre, MumbaiIt will provide the ideal platform for influential architects, contractors, consultants and engineers to share ideas about innovative construction tools and services. Contact: DMG: Events. PO Box No 33817 Dubai, UAE
October 4, 201419th One Full Day WorkshopThe Institution of Engineers (India), Mahalaxmi, Mumbai Workshop on Jirnoddhara of RCC buildings which contains Structural Audit, Upgrading (House - Keeping, Regular Maintenance, Repairs, Rehabilitation); Fixing Leakage and Waterproofing of existing RCC buildings and a total new concept to construct RCC durable buildings without leakage with practicals on acrylic polymer-based flexible membrane waterproofing system. Contact: Jayakumar Jivraj Shah, Single Faculty Course Conductor, 203, Wing-B, Lakshmi Apartments, Corporation Bank Building, Behind Anand Nagar, Dahisar (East), Mumbai 400068. Cell: 919819242649 Phone: 28483541/9819242649 [email protected] The Institution of Engineers (India), Mahalaxmi, Mumbai Phones: 022-23543650/23542943 Mobile: 09820392726
December 4-6, 2014Ceramics AsiaGujarat University Exhibition Hall, Ahmedabad This event will be organized to enhance that potential by bringing industry professionals from different corners of the world under one roof. Ceramics Asia is going to be organized for three days at the Gujarat University Exhibition Center in Ahmedabad Contact: Unifair Exhibition Service Co. Ltd, Room 802-804, Daxin Building, 538 Dezheng North Road Guangzhou, China
December 15-18, 2014bC India ShowIndia Expo Centre and Mart, Greater Noida The International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles-provides the international construction industry with a professional platform for the construction industry. Contact: B C Expo India Pvt Ltd, Lalani Aura, 5th Floor, 34th Road, Khar (West), Mumbai
CII 4th Regional Conference on Infrastructure Management held in New Delhi
The Confederation of Indian Industry (CII) organized the 4th edition of the Regional Conference on Infrastructure Management in New Delhi on August 20, 2014.
The focus of the conference this year was on change and how people and organizations embrace change while they develop their operations and projects. CBRE South Asia P Ltd was the Knowledge Partner for thee conference.
The conference saw leaders from corporate houses come together and deliberate on pertinent issues and concerns of the infrastructure sector. With infrastructure in India poised to explode with new developments like surge in housing and commercial real estate, progress in this regard is complete ly l inked to bas ic infrastructure of the economy.
At the Inaugural session of the conference, Yashpal Garg, Executive Director, the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) and Managing Director, DSIIDC Maintenance Services Ltd, spoke about challenges faced by the public sector in developing infrastructure projects and how private partnerships can help resolve those.
He emphasized the need for the corporate sector to embrace changes and keep it in mind while policies and projects are being designed. He added the government must be flexible to change the terms of projects.
Dr Paul Thomas, Founder & Director, DNA Definitive, who traveled from the United Kingdom for the conference, spoke about the need for
organizations to be more innovative and resilient. He said change is a challenge for organizations and teams across.
Thomas also interacted with delegates at the conference. He spoke and motivated the audience to build trust and understanding and engrain it into the business system. He has varied experience and knowledge in company development and has also spent many years managing companies in both private and public services.
Arjun Wallia, Chairman, CII Delhi State Council & Group Founder & Chairman, Securitas India and the Walsons Group, spoke about building resilient and adaptable business structures that can ensure mitigation of risks. He said that this can happen
only with the support of people in an organization.
Ra jesh Pandi t , Head-Asset Services India, CBRE South Asia P Ltd said that the immediate environment in which an industry operated affects all stakeholders equally. He said that longstanding issues as well as challenges need to be tackled shouldering equal responsibility. If our individual businesses are to succeed, it is imperative that we all plan ahead together.
The speakers at the conference felt that the recent concepts and best practices must reach consumers t h r o u g h u s e o f t e c h n o l o g y, innovation, customer relationship management (CRM) and online trading applications.
They also felt that organizations
should look for developing strong governance models. The speakers also felt the need to develop and build institutes imparting education and programmes on infrastructure management.
Some speakers at the conference were Sandeep Dhawan, Division Director-Head of Office & Global F i n a n c e S e r v i c e s , M a c q u i r e Global Serv ices; Amit Grover, National Driector-Offices, DLF Ltd; Dr K Ramamurthy, CEO Projects,
Emmar MGF; Capt Rajesh Sharma, Director-FM, Global Lead, Sapient Technologies; Maneesh Chugh, Vice President & Head-Corporate Services Operations-India, RBS; Sanjeev Sethi, Head Real Estate and FM, Adobe India; Bhumesh Gaur, Vice President, Global Real Estate and Workplace Environment, American Express India.
Almost 150 leading facil i t ies managers and experts participated in the conference.
(L-R): Rajesh Pandit, Head Asset Services-India, CBRE South Asia P Ltd; Yashpal Garg, Executive Director, DSIIDC; Dr Paul Thomas, Founder & Director, DNA Definitive; Arjun Wallia, Chairman, CII Delhi State Council and Group Founder & Chairman, Securitas India and the Walsons Group.
