All about the construction and real-estate industry.
12
Volume 3 l Issue No 37 l September 15-21, 2014 l Price: Rs 100 An MMR, Braj Binani Group Publication and coaches manufacturing and maintenance facilities. The new rules in both sectors have been notified. The BJP government, however, is hesitant to allow FDI in multi-brand retail as it believes that it could harm small retailers. Verdict on easing rules for foreign funds in construction expected Ministries can now clear projects up to `1,000 cr Housing Ministry to boost Green low-cost housing The Centre has decided to switch to the conventional engineering, procurement and construction (EPC) model to award contracts in the case of eight projects totalling Rs 4,000 crore, which were earlier to be constructed under the build, operate and transfer route (BoT). The projects are a mix between ones that did not elicit any bids from private parties as their cost was too high and thus seen as unviable and a few that were terminated by the government due to lack of interest shown by the developers concerned. Although the National Highways Authority of India (NHAI) has officially adopted the stance of late that more projects would be awarded through the EPC mode largely due to investor apathy, these eight projects would be the first where the mode would be switched after the Cabinet recently allowed the Road Ministry to change the mode without its approval. The NHAI just needs the approval of a committee under the Cabinet secretary. Under an EPC contract, the government funds the construction and the road developer only has to develop the project in a stipulated period of time. In the BoT mode, the developer invests in the project and recoups it either through tolling rights or annuity. The EPC mode takes three to four months for a project to be awarded, while BoT contracts take 18-20 months, which the NHAI thinks is another major advantage. Projects of 3,055 km were awarded through the EPC mode in 2005-06, but it rapidly lost its sheen. The following year, only 345 km were awarded, slipping to 89 km a year later, around when BoT projects were on the ascendant, peaking at 6,491 km in 2011-12. Not even a single EPC project was awarded in the sector between 2008-09 and 2011-12. However, in recent times EPC has once again made a comeback because of lukewarm response shown by private developers. For instance, this fiscal so far the NHAI has awarded seven projects of 798 km, all under the EPC contract. In the past two years, of the 13 projects for 1,115 km for which bids were invited, a larger share of 841 km was awarded under the EPC route. Additionally, 11 proposals are currently being evaluated by the inter- ministerial public-private partnership (PPP) appraisal panel involving construction of 1,098 km highways, of which 1,010 km will be awarded under the EPC mode. Modi govt to grant roads under EPC, not BoT The Centre last month authorized ministries and departments to clear investment proposals up to Rs 1,000 crore, instead of seeking approval of the Cabinet Committee on Economic Affairs. The earlier limit was Rs 300 crore. The change came after Road Transport & Highways Minister Nitin Gadkari pushed for it. “This will avoid many layers of approval and work can be awarded in a fast-track manner,” said an official. Rajiv Kumar, a senior fellow with the Centre for Policy Research, said the move was long overdue. “This will reduce paperwork and logjams over clearing of projects,” he said. However, he wondered how many projects up The Union Ministry of Housing & Urban Poverty Alleviation plans to work closely with all the stakeholders in promoting Green affordable housing and with state governments to map the needs and requirements for affordable housing. It has proposed to make low-cost housing an integral part of smart cities. Speaking at the CII-IGBC Green Building Congress 2014 in Hyderabad, Anita Agnihotri, Secretary, Housing Ministry, said that with increased urbanization, there is a growing need to develop to Rs 1,000 crore are there with the government or public sector units. Abhijit Banerjee, Director-General of the Confederation of Indian Industry said it would help in clearing projects. “Overall, this is a good move to further boost investor sentiment,” he said. In the last week of August, the CCEA also empowered Gadkari’s ministry to amend the model concession agreement for highways when required and to decide the mode of delivery for projects. This means the ministry can on its own decide on key issues related to national highways. Earlier, an inter-ministerial group used to take these decisions. If the proposal got stuck there, it would go to the Cabinet. and promote housing structures which are not only affordable but also sustainable and scalable. She said the housing sector has a multiplier effect in terms of providing employment and security. To make this happen, it is imperative to work closely with all the stakeholders. The ministry would be pleased to work with the IGBC and other stakeholders. Prem C Jain, Chairman, the IGBC, said India, at over 2.2 billion sq ft, is the second country in the world with the largest Green building footprint. A target of laying 8,500 km roads has been fixed for 2014-15. In the Union Budget, Finance Minister Arun Jaitley has allocated Rs 37,880 crore for roads. Meanwhile, the government has also allowed NTPC, the Maharatna public sector power producer, to decide on projects up to Rs 1,500 crore from the current ceiling of Rs 1,000 crore. In a recent study, the CII pegged the requirement for investment at Rs 280 lakh crore ($4.7 trillion) for five years, beginning 2014-15, to make the economy grow by 7 per cent a year on an average. The requirement is double the Rs 139 lakh crore ($2.9 trillion) of investments in the previous five years. The economy grew 6.7 per cent a year on an average in the previous five years. The CII expects infrastructure investment to go up from around Rs 24 lakh crore ($500 billion) in the 11th Plan period to Rs 64.3 lakh crore ($1,071 billion) during 2014-15 and 2018-19. Various types of buildings, including schools are going the Green way. The IGBC aspires that by the year 2032, every Indian should find shelter in a Green home, where there is increased quality of life, he said. C Shekar Reddy, National President, Credai, highlighted the need to do away with NOCs and implement online registrations of building permissions. This will make the process transparent, simpler and facilitate rapid spread of the housing sector. The Government is trying to fast- track a decision on easing rules for foreign investments in the construction development sector. The Department of Industrial Policy & Promotion (Dipp) has floated a Cabinet note proposing to bring down the minimum built-up area requirement for FDI in construction projects from 50,000 sq metres to 20,000 sq metres. The existing policy allows 100 per cent FDI in the construction sector, subject to minimum built-up area and minimum capitalisation requirements. It has also proposed reducing the minimum capital requirement for such projects from $10 million to $5 million. The draft Cabinet note also suggested that projects which commit at least 30 per cent of the total project cost for low-cost housing will be exempted from minimum built-up area and capitalization requirements. A Dipp official said,“As these proposals are in line with the announcements made in the Union Budget, we do not expect major opposition from other ministries and departments. We hope to finalize our note for Cabinet’s approval soon.” With the Government eager to attract investments in the 100 smart cities proposed in the Budget, easing rules for FDI in construction is very important. “Countries such as the US, Japan and UK have all expressed interest in investing in smart cities. The more liberal norms will ease the flow of such investments,” added the official. The existing post-completion lock- in period of three years for investors, however, will not be relaxed to avoid early exits. The Union Cabinet recently relaxed FDI rules for the defence sector, increasing the FDI cap from 26 per cent to 49 per cent. It also allowed 100 per cent foreign investments through the automatic route in a number of areas in the railways including high-speed trains, railway line, passenger terminals
Transcript
September 15-21, 2014 1
Volume 3 l Issue No 37 l September 15-21, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication
and coaches manufacturing and maintenance facilities.
The new rules in both sectors have been notified. The BJP government, however, is hesitant to allow FDI in multi-brand retail as it believes that it could harm small retailers.
Verdict on easing rules for foreignfunds in construction expected
Ministries can now clear projects up to `1,000 cr
Housing Ministry to boost Green low-cost housing
The Centre has decided to switch to the conventional engineering, procurement and construction (EPC) model to award contracts in the case of eight projects totalling Rs 4,000 crore, which were earlier to be constructed under the build, operate and transfer route (BoT).
The projects are a mix between ones that did not elicit any bids from private parties as their cost was too high and thus seen as unviable and a few that were terminated by the government due to lack of interest shown by the developers concerned.
Although the National Highways Authority of India (NHAI) has officially adopted the stance of late that more projects would be awarded through the EPC mode largely due to investor apathy, these eight projects would be the first where the mode would be switched after the Cabinet recently allowed the Road Ministry to change the mode without its approval. The NHAI just needs the approval of a committee under the Cabinet secretary.
Under an EPC contract, the government funds the construction and the road developer only has to develop the project in a stipulated period of time. In the BoT mode, the developer invests in the project and
recoups it either through tolling rights or annuity. The EPC mode takes three to four months for a project to be awarded, while BoT contracts take 18-20 months, which the NHAI thinks is another major advantage.
Projects of 3,055 km were awarded through the EPC mode in 2005-06, but it rapidly lost its sheen. The following year, only 345 km were awarded, slipping to 89 km a year later, around when BoT projects were on the ascendant, peaking at 6,491 km in 2011-12. Not even a single EPC project was awarded in the sector between 2008-09 and 2011-12.
However, in recent times EPC has once again made a comeback because of lukewarm response shown by private developers. For instance, this fiscal so far the NHAI has awarded seven projects of 798 km, all under the EPC contract. In the past two years, of the 13 projects for 1,115 km for which bids were invited, a larger share of 841 km was awarded under the EPC route.
Additionally, 11 proposals are currently being evaluated by the inter-ministerial public-private partnership (PPP) appraisal panel involving construction of 1,098 km highways, of which 1,010 km will be awarded under the EPC mode.
Modi govt to grant roads under EPC, not BoT
The Centre last month authorized ministries and departments to clear investment proposals up to Rs 1,000 crore, instead of seeking approval of the Cabinet Committee on Economic Affairs. The earlier limit was Rs 300 crore.
The change came after Road Transport & Highways Minister Nitin Gadkari pushed for it. “This will avoid many layers of approval and work can be awarded in a fast-track manner,” said an official.
Rajiv Kumar, a senior fellow with the Centre for Policy Research, said the move was long overdue. “This will reduce paperwork and logjams over clearing of projects,” he said. However, he wondered how many projects up
The Union Ministry of Housing & Urban Poverty Alleviation plans to work closely with all the stakeholders in promoting Green affordable housing and with state governments to map the needs and requirements for a f fordable housing. I t has proposed to make low-cost housing an integral part of smart cities.
S p e a k i n g a t t h e C I I - I G B C Green Bui lding Congress 2014 in Hyderabad, Anita Agnihotr i , Secretary, Housing Ministry, said that with increased urbanization, there is a growing need to develop
to Rs 1,000 crore are there with the government or public sector units.
Abhijit Banerjee, Director-General of the Confederation of Indian Industry said it would help in clearing projects. “Overall, this is a good move to further boost investor sentiment,” he said.
In the last week of August, the CCEA also empowered Gadkari’s min is t ry to amend the model concession agreement for highways when required and to decide the mode of delivery for projects. This means the ministry can on its own decide on key issues related to national highways. Earlier, an inter-ministerial group used to take these decisions. If the proposal got stuck there, it would go to the Cabinet.
and promote housing structures which are not only affordable but also sustainable and scalable.
She said the housing sector has a multiplier effect in terms of providing employment and security. To make this happen, it is imperative to work closely with all the stakeholders. The ministry would be pleased to work with the IGBC and other stakeholders.
Prem C Jain, Chairman, the IGBC, said India, at over 2.2 billion sq ft, is the second country in the world with the largest Green building footprint.
A target of laying 8,500 km roads has been fixed for 2014-15. In the Union Budget, Finance Minister Arun Jaitley has allocated Rs 37,880 crore for roads. Meanwhile, the government has also allowed NTPC, the Maharatna public sector power producer, to decide on projects up to Rs 1,500 crore from the current ceiling of Rs 1,000 crore.
In a recent study, the CII pegged the requirement for investment at Rs 280 lakh crore ($4.7 trillion) for five years, beginning 2014-15, to make the economy grow by 7 per cent a year on an average. The requirement is double the Rs 139 lakh crore ($2.9 trillion) of investments in the previous five years. The economy grew 6.7 per cent a year on an average in the previous five years.
The CII expects infrastructure investment to go up from around Rs 24 lakh crore ($500 billion) in the 11th Plan period to Rs 64.3 lakh crore ($1,071 billion) during 2014-15 and 2018-19.
Var ious types of bu i ld ings, including schools are going the Green way. The IGBC aspires that by the year 2032, every Indian should find shelter in a Green home, where there is increased quality of life, he said.
C Sheka r Reddy, Na t i ona l President, Credai, highlighted the need to do away with NOCs and implement online registrations of building permissions. This will make the process transparent, simpler and facilitate rapid spread of the housing sector.
The Government is trying to fast-track a decision on easing rules for foreign investments in the construction development sector. The Department of Industrial Policy & Promotion (Dipp) has floated a Cabinet note proposing to bring down the minimum built-up area requirement for FDI in construction projects from 50,000 sq metres to 20,000 sq metres.
The existing policy allows 100 per cent FDI in the construction sector, subject to minimum built-up area and minimum capitalisation requirements.
It has also proposed reducing the minimum capital requirement for such projects from $10 million to $5 million.
The draft Cabinet note also suggested that projects which commit at least 30 per cent of the total project cost for low-cost housing will be exempted from minimum built-up area and capitalization requirements.
A Dipp official said,“As these proposals are in l ine wi th the
announcements made in the Union Budget, we do not expect major opposition from other ministries and departments. We hope to finalize our note for Cabinet’s approval soon.”
With the Government eager to attract investments in the 100 smart cities proposed in the Budget, easing rules for FDI in construction is very important. “Countries such as the US, Japan and UK have all expressed interest in investing in smart cities. The more liberal norms will ease the flow of such investments,” added the official.
The existing post-completion lock-in period of three years for investors, however, will not be relaxed to avoid early exits. The Union Cabinet recently relaxed FDI rules for the defence sector, increasing the FDI cap from 26 per cent to 49 per cent.
It also allowed 100 per cent foreign investments through the automatic route in a number of areas in the railways including high-speed trains, railway line, passenger terminals
September 15-21, 2014 3ARCHITECTURE
Benchmark for Green buildings
The new versatile Conservatory of Music building in New York
City by Deborah Berke Partners follows Bard’s
environmental best-practice standards
that can also be used for audio and video recording. The project uses geothermal wells and heat pumps and follows Bard’s environmental best-practice standards.
The studios are generously proportioned for a conservatory and programme of this size in order to accommodate small ensembles and individual musicians. Each room has exceptional acoustics so that any space can serve as a teaching, rehearsal, or performance space.
While the flexible teaching studios play an integral role in the story of the Conservatory, the Performance Hall is the core of the building. The double-height space is acoustically-tuned for unamplified music, which allows for a variety of uses including small operettas, dance, and multi-media projection.
The Laszlo Z Bitó ’60 Conservatory is a new building for Bard College’s Conservatory of Music. At once a teaching facility and a first-rate venue for the performance of music, the Conservatory alternates effortlessly between these two modes.
The 16,000 sq ft building contains rehearsal studios, teaching spaces, a student lounge, and a performance hall. The performance space of
The Bard Conservatory building is exceptionally versatile in order to adapt to the alternating purposes of teaching and performance. This balance conveys the stability and constancy of the enduring institution and is communicated through the building’s exterior material palette. Smooth white stucco covers the slightly arching primary form while dark masonry boldly accentuates essential elements such as the Performance Hall.
The clarity of the white mass interacts with the texture of the richly-glazed brick to underscore the balance of the Conservatory as an environment dedicated to creative musical expression and a lasting institution grounded in history and a tradition of excellence.
In addition to the performance
Green buildings for Vijayawadaproposed by Singapore builders
W i t h t h e A n d h r a P r a d e s h g o v e r n m e n t a n n o u n c i n g i t s capital city, all eyes are now on the Vi jayawada, Guntur, Tenal i and Mangalagiri (VGTM) region. Singapore builders are thronging the area to forge tie-ups with local firms to erect pre-cast green buildings for fast-paced development. Some firms have given presentations to a select group of builders.
“Pre-cast construction is in vogue in Singapore as the process ensures high level of quality. Our country has a road map to make 80 per cent green buildings by 2030,” said ACS Jayapaul, Head, South Asia Desk, International Markets Department, Building and Construction Authority (BCA). To supplement growth, a couple of other firms evinced interest in establishing testing labs
for construction industry.As per a ballpark estimate of
market sources, the region along with several other parts of the state is expected to attract over Rs 10,000 crore investment, and major construction firms across the globe are on preliminary rounds to chalk out their plans. “The government is already on the job to make a comprehensive plan for construction of the capital. Once the plan is out, the construction activity is likely to pick up pace. Unlike in the past, the technological advancement would make buildings within no time,” said Greater Vijayawada Builders Association founder Gadde Rajaling who took part in the meeting.
The Andhra Pradesh government is understood to have commissioned a detailed study on capital city by US
consultant McKinsey and the firm is expected to come up with its report shortly.
Local builders too are actively looking at signing MoUs with global construction players to take part in major government and private construction initiatives.
While stating that there are ample opportunities for Singapore builders, TDP Member of Parliament from Vijayawada Kesineni Nani opined that most of the residents come under middle class bracket and builders should keep the cost in mind while going in for green buildings.
“There are rich people here. But the city has over 12 lakh population and a third of them live in slums. Sanitation is another major problem that needs to be focused,” said Nani.
László Z Bitó ’60 Conservatory Building is a 145-seat hall which can be configured in a variety of ways, and allow students to reimagine the traditional concert space.
Geothermal wellsIt also features one-touch audio
and video recording, as well as live-streaming capability. The building contains 15 teaching studios and a lounge, along with a large classroom
Durable natural materialsReflecting this functional flexibility,
seating arrangement is variable and can accommodate as many as 150 patrons and as few as 25. The materials used – wood paneling, richly textured fabric, bold colour -- evoke warm, inviting tones of a classic performance space while reinforcing the project’s modern design sensibility.
ha l l , the bu i ld ing boasts two percussion studios, showcasing Bard’s commitment to allowing all classical performers access to the Conservatory programme. The materials are durable and renewable and are appropriate for the space as it is used for a variety of gatherings.
Landscape and natural lightThe design and placement of
windows played an important role in the building design and as a result, natural light fills all of the studio and rehearsal spaces. The strategically placed windows also al low the landscape to play a major role in creating beautiful and inspiring spaces. Careful positioning and siting of the building allows for studios to have views of the surrounding woods and the Hudson River beyond.
Even ins t rument s torage is carefully integrated into generously scaled corridors. The unusual width of the storage locker-lined corridors
not only allows for large instruments to move easily in and out of the space, but it also encourages informal interaction and gathering.
The building, which is exceptionally flexible, nonetheless conveys the stability and constancy of the enduring institution. Deborah Berke Partners’ design achieves this balance in programme and communicates it on the building’s exterior by juxtaposing two materials.
Smooth white stucco covers the slightly arching primary form while dark masonry boldly accentuates strategic volumes. The clarity of the white mass interacts with the texture of the richly glazed volumes to underscore the balance of the Conservatory as an environment open to the evolution of musical expression and a lasting institution with a rich history and tradition of excellence.
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September 15-21, 2014 4INFRASTRUCTURE
PM to review status of infra projects
Prime Minister Narendra Modi is set to hold his first review meeting of infrastructure projects with secretaries of key ministries in this segment. On July 26, the Planning Commission Secretary Sindhushree Khullar had coordinated a meeting of secretaries in the ministries of railways, road transport and highways, civil aviation, power, coal, renewable energy, ports & shipping, telecommunications and petroleum & natural gas. The meeting, attended by the PM, was aimed at outlining India’s infrastructure targets and achievements.
Modi had said the progress of all identified projects would be reviewed every month. The Cabinet Secretary would then work towards developing a mechanism to address possible hurdles to infrastructure development across key sectors in this segment.
The Ministry of Civil Aviation, which had a target to start developing five no-frills airports and award management contracts for four airports to private operators, will outline the progress on these fronts.
Through the past month, the ministry has identified locations for the first five no-frills airports— Tezu
(Arunachal Pradesh), Kishangarh (Rajasthan), Jharsuguda (Odisha), Hubli and Belgaum (Karnataka).
Aviation Minister Ashok Gajapathi Raju Pusapati said, “The Airports Authority of India (AAI) has developed a no-frills model airport which will provide essential services needed to operationalize airports, without compromising safety and security in any way. This will result in low operation costs and make it viable for airlines to run their services.”
The ministry has also determined the broad contours of the model
concession agreement (MCA) for awarding management contracts at six airports --- Chennai, Kolkata, Lucknow, Guwahati, Ahmedabad and Jaipur.
A senior ministry official said, “For airport privatization, we have been able to resolve most differences regarding the MCA with the Planning Commission. A meeting of the inter-ministerial group will take place when decided by the new secretary.” It is planned of the six identified airports, at least four will be awarded this financial year.
Odisha to get $100 m ADB loan for infra projects
Surat-Mumbai travel 58 minutes by bullet train
The Odisha Urban Infrastructure Development Fund, set up by the state government to carry out infrastructure projects in municipalities, will get a line of credit of nearly $100 million from the Asian Development Bank (ADB).
The Odisha Fund is awaiting approval from the chief minister’s office to avail loan facility, said government officials. “The finance department has already approved the borrowing proposal from ADB. We hope to get confirmation from the chief minister’s office by the end of this month to avail
A Japanese government institution recently visited Ahmedabad, and indicated that HSR will be a separate dedicated corridor and that Surat would have a new integrated railway stat ion complex that would be managed on a commercial basis.
Once the HSR is built in the next seven years, it would be possible for a bullet train to cover the distance between Mumbai and Ahmedabad in 58 minutes f lat. The HSR or bullet train project started in 2009. However, not much work was done in the past five years. The project has gathered speed after the recent visit of PM Modi to Japan.
Municipal commissioner Milind
the line of credit,” said S K Ratho, special secretary with the housing & urban development department.
The Fund was set up as a trust in 2012, as a fund to utilize money in creating infrastructure for water supply, sewerage, solid waste management, drainage and slum development projects undertaken by urban local bodies (ULB), statutory bodies, and public sector undertakings and to attract investments, professional advice from institutions for financing such projects.
Torwane met the two-member Jica team comprising Shingi Kakinaka and Gaurav Kohli. Torwane said, “The traditional rail route has many bends. In contrast, the new high speed rai l corr idor would be a straight line with tunnels at several places along the route.”
The Jica in its project outline paper of September 2014 says that it would take exactly 58 minutes to cover a distance of 266.3 km between Mumbai to Surat. The distance of 500.6 km between Mumbai and Ahmedabad would be covered in 1.59 hour and 398.3km between Mumbai and Vadodara in 1.32 hour.
IRB Infrastructure eyes 300 km NHAI road contracts
Govt open to talks on ‘100 smart cities’
via portal
The Ministry of Urban Development wi l l invi te discussions from al l stakeholders, including the general public, through a web portal for its ambitious ‘100 smart cities’ initiative. A web portal www.smartindia.gov.in will be up and running soon and will be open for intense discussion from everybody, said a senior official in the ministry.
It is only after proper dialogue through public participation in policy-building that the ministry will be able to formulate guidelines for smart cities, added the official. Many countries
such as Japan, Singapore, France, among others, have expressed interest in helping India build smart cities.
In the recent Budget, Finance Minister Arun Jaitley allocated Rs 7,060 crore for smart cities project over the fiscal. Navin Raheja, CMD, Raheja Developers, and Chairman of Naredco, said, “The government must ensure decentralization of power to reach local level, apart from focusing on accountability for results and timelines. It is important that each smart city has its own economic hub for job creation.”
Centre may cancel Sezs of Hindalco, Essar, Adani
Government is likely to cancel the approvals granted by it to nine companies including Hindalco Industries, Essar and Adani for setting up special economic zones as no work has been done to execute the projects.
The Development Commissioners have recommended to the Board of Approval to cancel these Sez projects. The formal approval had been granted to these projects by BoA. However, since there is no significant progress made by the developer/co-developer, the concerned DC has proposed for cancellation of formal approval
granted to the developer. Hindalco Industries has proposed
to set up an aluminium product Sez in Odisha. The developer did not make any request for extension. Essar Jamnagar Sez Ltd had proposed to set up a multi- product zone in Gujarat. The formal approval was expired in August 2009.
The developer did not make any request for extension, it said, adding that the DC had taken up the matter with the developer but no communication has been received. Similarly, Adani Townships & Real Estate Company Ltd had proposed
With nearly 3,500 km of road projects likely to be bid out by the National Highways Authority of India (NHAI) this fiscal, toll road firm IRB Infrastructure Developers said it expects to bag at least 200-300 km of contracts.
Nearly 8,500 km road projects are likely to be opened for bidding this fiscal, out of which 3,500 km will be on build, operate and transfer basis while the balance on EPC. “We are qualified for bidding for such large projects. We expect to bag at least
200-300 km projects from the 3,500 km road projects which will come up for bidding this fiscal,” said Virendra Mhaiskar, Chairman and Managing Director.
The company has already bagged two road projects of around 356 km, including 190 km and Rs 3,200 crore worth four-laning of Yedeshi-Aurangabad section of NH-211 in Maharashtra and Rs 2,300 crore worth 166 km stretch of Kaithal to Rajasthan border in Haryana, in FY15.
“We already have in our portfolio
four-laning of Solapur to Yedeshi section of NH-211. Therefore, with the Yedeshi-Aurangabad section project, IRB will now develop the entire road length of 288 km from Aurangabad to Solapur,” he said. IRB is prequalified to bid for around Rs 33,000 crore worth road projects, he said.
Meanwhile, the company also won a Rs 1,687 crore project from the Maharashtra State Road Development Corporation (MSRDC) for operation and maintenance of a stretch along Mumbai-Pune NH 4.
an IT/ITeS zone in Gujarat. The other developers whose Sezs may be cancelled include Chennai Business Park, the Integrated Warehousing Kandla Project Development and the Gujarat Industrial Development Corporation.
As per the Sez rules, formal approval is valid for a period of three years by which time at least one unit has to commence production and the zone becomes operational from the date of commencement of such production.
Provision to this rule provides for extension of this formal approval by BoA, for which the developer will submit his application to the concerned DC, who shall, within 15 days forward it to the Board with his recommendations.
There is increased buoyancy in the market after the arrival of the new government, especially after the budget has set the ball rolling for the real estate sector. With allocation of more funds for affordable housing, easing of FDI norms, implementation of Reits and special focus on infrastructure development, government has made it clear that in order to push economic growth, a special focus on infrastructure and real estate development is pivotal.
In the foreseeable future, the real estate market in Delhi NCR is going to see considerable forward momentum. As land is a prerequisite for any kind of development, Noida and Gurgaon are logical answers to the burgeoning need for housing in Delhi NCR.
Mature marketsIn terms of inventory, Noida and
Gurgaon have more options than any other city in the NCR. These two areas are consequently expanding and growing, and expansion opens opportunities for further growth in real estate.
It is for this reason that these two cities have now got mature real estate markets for different sets of buyers and investors. However, they have very individual returns potential. In the past few years, it appears that investments made into properties
Ghaziabad caters primarily to the mid-segment and affordable housing segments. It is the home to established housing clusters such as Kaushambi, Vaishali and Indirapuram while upcoming residential corridors include Raj Nagar Extension and developments along the NH-24 beyond Indirapuram, including the Crossings Republic Township.
Wh i le lack o f land opt ions has restr icted new launches in the Kaushambi , Va isha l i and Indirapuram clusters, they being already developed to a great extent and with a large existing residential population, these residential clusters have also recorded healthy capital appreciation.
Recent project launches have been mostly in the upper-mid and premium segments offering luxury specifications and upgrades from the usual, mid-segment housing options. Prices in the Kaushambi and Vaishali areas are in the range of Rs 5,500 – 6,500 per sq ft while in Indirapuram prices are Rs 4,800-5,500 per sq ft price range.
Maximum projectsThe affordable residential clusters
are in the average price range of Rs 2,200-3,500 per sq ft. The upper end of the range is commanded by projects which are completed or close to completion in Crossings Republic, while the newer projects in NH-24 are in the lower price band of Rs 2,200-2,600 per sq ft.
The Raj Nagar extension corridor
REAL ESTATE
Noida and Gurgaon, with new infra projects
coming up, present new opportunities for further
growth in real estate
Ghaziabad will continue to garner interest, particularly for affordable housing projects
Forward push for Delhi NCR Ghaziabad in growth mode
located in Gurgaon have reaped better returns than those secured from Noida property. However, Noida is not lagging very far behind.
Various recent announcements and infrastructure uplifts of the city have made Noida’s real estate market increasingly attractive. What favours investors entering Noida is the lower pricing factor, which now promises better appreciation and returns on investments.
Fast-paced infraThe realty market in Gurgaon has
now crystallized into one of the most favourable for buyers in the premium segment. But the other side of the coin is that the high price points in Gurgaon suggest that properties there will no longer fetch high rates of appreciation.
With the fast-paced development in infrastructure in Noida and its vicinity, real estate growth has really picked up over the past few years. There have been announcements for many new such projects as well, which have had a positive effect on the real estate market.
The proposed extension of the Dwarka-Noida City Centre to Pari Chowk will give direct connectivity to Delhi and other NCR areas, and the project is expected to complete by 2021. The Noida Metro Rail Corporation (NMRC) has got the required approvals for the 29 kilometer-long Noida-Greater Noida Metro link from the state government, as well.
Simultaneously, the Greater Noida Industrial Development Authority (GNIDA) has plans to set up its own power plant, which will provide
on NH-58 is also pr iced at Rs 2,600-3,000 per sq ft range. All these clusters have contributed the maximum to new project launches that have been recorded in the Ghaziabad residential market over the past few quarters.
While Raj Nagar Extension may be seeing project launches by first-time or lesser known developers, the likes of Assotech, Ansal API, Sare, Ashiyana Group and Wave Group have come up with projects on NH-24, which includes Crossings Republic as well.
With prices in the Noida Extension precinct in the Noida sub-market expected to be higher, Ghaziabad wil l continue to garner interest, particularly for affordable projects in Crossings Republic, Raj Nagar Extension and on the NH-24.
Large population baseThe Ghaziabad sub-market also
enjoys a large population base from the industrial sector and SMEs, and low-income workers looking to upgrade to better accommodation. In the near future, the better areas within Ghaziabad, such as Indirapuram and Vaishali, should continue to hold their ground while the lower-income profile areas of Sahibabad.
uninterrupted power supply to the region. Noida is known for its affordable housing projects as well as numerous luxury projects which are underway, as well as in the pipeline, and in its adjoining areas. Renowned developers like Supertech Ltd, 3C Company, Prateek Group, Lotus Greens and Wave Infratech have launched super-luxury projects with 3-5 BHK apartments of 2,000-4,000 sq ft and priced in the range of Rs 1 crore to Rs 3 crore for area.
Primary drawWith good infrastructure, Metro
connectivity and good road network, real estate development in the Noida regions is picking up rapidly. This is important, since infrastructure development is the primary draw for buyers and investors into this area.
Upcoming major projects like the Export Promotion Zones and Taj Economic Zone along the Yamuna Expressway are likely to push the economic development of this region, consequently giving a further boost to real estate development.
In fact, the positive response from buyers and investors in Noida has now made this the preferred destination for launching new projects and expediting existing ones. All in all, Noida is beginning to emerge as one of the brightest stars in Delhi NCR real estate.
Santhosh Kumar CEO, Operations, JLL India
Rohan Sharma Associate Director, Research & Reis, JLL India NCR Real Estate
September 15-21, 2014 6
Centre clears Bengaluru-Mysore 6-lane highway
The Centre has approved the Karnataka government’s Rs 3,000-crore proposal to convert the Bengaluru-Mysore road into a six-lane national highway.
The Centre has also accorded national highway (NH) status and has numbered it ‘NH-275’. “The National Highway Authority of India (NHAI) has agreed to fund the entire project and collect toll. The state’s role is only to co-ordinate and facilitate land acquisition,”
HC Mahadevappa, Karnataka Minister for Public Works,said.
“Of the Rs. 3,000 crore, Rs. 1100 crore is reserved for land acquisition, Rs. 1,600 for construction and Rs. 300 crore for shifting utilities,” he added.
The 123-km six-lane highway includes service roads. The project is being taken up under the design, build, finance, operate, transfer (DBFOT) model and will take four years to complete.
PROJECTS UPDATE
Dubai draws plan to build world’s biggest airport
Paul Griffiths, chief executive of state-backed airport operator Dubai Airports, said he aims to have the first phase of the expansion complete in six to eight years. That part of the project includes adding two new runways and two large concourses housing dozens of aircraft gates each.
“It’s a very aggressive time scale ... but I think that we have a track record of doing remarkable things in a remarkably challenging time frame,” said Griffiths in his office at the city’s main airport, Dubai International.
As later phases are completed, the new airport will eventually boast five parallel runways spaced far enough apart so they can all be used at the same time, and have enough gates for hundreds of wide-body planes.
Dubai World Central opened for cargo flights in 2010 with a single runway in the desert south of central Dubai. It received its first passengers in October at a single terminal that is mainly used by smaller airlines and low-cost carriers. The currently larger Dubai International ranked as the world’s seventh busiest airport last year, handling 66.4 mil l ion
passengers. It too is being expanded, with a new concourse expected to open next year.
Griffiths says Dubai needs to expand to keep pace with the rapid growth of airl ine traffic into the Emirates. Much of the increase comes from hometown airline Emirates, the region’s largest carrier and the world’s biggest user of
both the A380 and Boeing 777 long-haul jets. The expansion of the new airport is unlikely to be ready by the time the Expo kicks off, said Griffiths.
IPA to advise Ennore Port on dredging project
Chinese cos to bid for 5 high-speed rail projects
Singapore to help AP in infra development
Kamarajar Port at Ennore has appointed the Indian Ports Association (IPA) as a consultant in its project to deepen the port, including berths, to an 18-metre draft so that it can handle large ships.
“We could be first port to take this step,” said MA Bhaskarachar, Chairman & Managing Director, Kamarajar Port Ltd.
Deepening of the port is one of the major initiatives the new government
Chinese firms are teaming with Indian companies to jointly bid for five high-speed railway projects in India in an apparent attempt to compete with Japan’s plans to build bullet trains.
The Indian government will soon open the projects for public bidding and Tata Projects, one of the fastest growing infrastructure companies in India, is in discussions with an undisclosed Chinese company that
The government of Singapore will work with the Andhra Pradesh government in in f ras t ruc tu re , industrial and city development efforts. A delegation led by former Prime Minister of Singapore Goh Chok Tong met Chief Minister N Chandrababu Naidu last week and offered his support, according to an official press release.
The Chief Minister was stated to have informed the delegation about the plans of the state government for
has put in place, he said. Based on the IPA’s recommendation, the port will call for ‘expressions of interest’ from companies for the dredging project, he said.
The port’s two coal wharves can accommodate Panamax size vessels of 280 m length each at a depth of 15 m, alongside an approach channel and port basin of 16 m and 15.5 m respectively. This will be deepened to 18 m, he said.
owns the advanced technology used in the bid, state-run China Daily reported recently.
Industry insiders believe the potential partner would be one of China’s major rail companies, CSR Corp or CNR Corp, though neither company would confirm they were part of the bid, the front page report from Mumbai titled “Chinese firms eye Indian rail projects” said.
transforming AP into a logistics and manufacturing hub.
He also briefed about the state’s plan for ports, airports, highways, industrial nodes in Visakhapatnam-Chennai and the Chennai-Bengaluru industrial corridors and petrochemical corridor besides development of smart cities and promotion of tourism in a big way.
The delegation offered to share Singapore’s experience in the design of the new capital city and assured
China, Malaysia firms to be tapped to save
highway projects
The project to dredge to 18 m depth will cost around Rs 400 crore. It will be completed in three years, after which the port can handle Suezmax vessels (large ships of 160,000-ton capacity that can transit Suez Canal in a laden condit ion). Both the Chettinad group, which handles coal at the port and the Adani group, will handle containers, have agreed on the project to deepen their berths, he said.
The Daily’s report came as Japan has announced financial, technical and operational support for bullet train projects in India during the current visit of PM Narendra Modi to Tokyo.
China is expected to unveil its investments in India during President Xi Jinping’s visit to New Delhi, scheduled for the third week of this month.
that it would encourage Singapore-based companies to participate in various port, airport, industrial and tourism projects.
T h e S i n g a p o r e d e l e g a t i o n suggested to the Chief Minister that funds could be tapped from the proposed Asian Infrastructure Investment Bank (AIIB) to be set up with China, Singapore and several other countries including India, as founder members.
India is looking at Chinese and Malaysian infrastructure companies to rescue highway projects that failed to find any takers in the country. The Nitin Gadkari-led Road Transport & Highways Ministry has initiated talks with some companies to get them to bid for projects including the eastern peripheral expressway and Delhi-Meerut highway in fresh tenders.
“We want to get these projects started.... We are trying to gauge the interest of these companies in some of these projects, so we can float a tender soon,” said a senior government official. The official did not disclose the names of companies, citing preliminary nature of talks.
There are around seven projects worth Rs 3,400 crore that were bid out by the previous government but failed to find any takers. The ministry
is of the view that speedier execution by these projects would also draw Indian players to the sector.
Close to 189 highway projects involving investments of around Rs 1,80,000 crore are stuck due to problems of land acquisition, delays in forest and environment clearances, non-transfer of defence land and hurdles in rail over bridges. Indian developers, already confronting these and being financially stretched, have remained lukewarm in response to some road project bids. The previous government could only manage to award projects for 3,169 km of the around 5,000 km of projects that went for bidding in 2013-14.
The new government, which plans to rebuild the country’s creaky infrastructure, has identified road development as its key focus area.
Vizag Port in expansion mode
With a target to achieve 85 million tonnes capacity by 2015 by undertaking mechanisation, Visakhapatnam Port is cruising ahead to become the most preferred port of South Asia.
Taking advantage of its strategic locat ion and huge h inter land, investment to the tune of Rs.13,000 crore is being made for extension of container terminal by J. M. Baxi Group and modernisation of ore handling complex by Essar Ports, deepening of channels and berths and installation of state-of-the-art handling facilities and other logistics. “Not only increasing volumes, we are also making serious
efforts to handle 90 per cent of our cargo in a mechanised environment within a year so as to put pollution at bare minimum,” Visakhapatnam Port Trust Chairman M. T. Krishna Babu said.
Inner harbour dredging, which hit a roadblock due to variety of reasons, is being speeded up. Dredging Corporation of India (DCI) had already dug up 10 per cent of one million cubic metres. DCI is likely to complete the job in two months. Dharti Dredging, which has been given contract for rock dredging, is expected to complete 100 metres of channel width by October-end.
September 15-21, 2014 7
Across the wor ld sa fe ty in construction is a matter of concern. In India this is one of the most vulnerable segments of the unorganized labour in the country. The industry being highly labour- intensive, safety should be comprehensively addressed at an all-India level.
A large number of workers are exposed to the risks of workplace accidents and occupational health hazards. The rate of fatal accidents in this sector is four to five times that of the manufacturing sector.
Compensation ActsSince the construction sector
employs around 10 million people, the issue of safety assumes importance. As per one survey 165 per 1,000 workers get injured during construction activities. The workers are exposed to a host of hazardous substances, which have a potential to cause serious health and occupational diseases such as asbestosis, silicosis, lead poisoning, etc.
Statutory provisions are in force to take care of the needs of workers.
For example, the Employees’ State Insurance Act, 1948 formed to provide employee’s medical benefits, sickness benefits, accident benefits, etc on a contributory basis which hardly reaches victims in time.
The Workmen’s Compensation Act 1923 provides for compensation during injuries/disablement, etc, caused during work on the premises. The process needs to be cleared of obstacles so that the compensation reaches in time. The Contract Labour (Regulation & Abolition) Act 1970 was framed to provide just and humane conditions of work for contract labour and to put them at par with regular employees.
The Minimum Wages Act 1948 provides for minimum statutory wages in scheduled employments with a view to obviate the chances of exploitation of labour. The Payment of Gratuity Act 1972 is a financial incentive in token of recognition of long years of service rendered by an employee, but this is not in practice as in the case of construction industry.
The Employees’ Provident Fund Act 1952 provides for institution of a fund where employer and employee contribute an equal amount. It extends to all establishments employing 10 or more persons and covers all employees under the purview of the act. But this kind of fund is hardly instituted for the benefit of construction workers.
CONSTRUCTION
The aim of safety culture should be to provide a safe work layout and work arrangements
conducive to promote health and wellbeing of
workers
Safety of construction work force
Technical topicThe reason why no agency has
made any efforts in this direction is the lack of specific legislation in this sector till the introduction of Building & Other Construction Workers (Regulation of Employment & Conditions of Services) Act 1996.
But the passing of this act alone does not take care of everything. The Central rules and state rules need to be intensified and the enforcing agencies need to be notified. However, till now, apart from the Centre only the states of Delhi, Kerala and Karnataka have set up the necessary state rules. Under the Centre the responsibility of the enforcement of BOCW Act has been given to the Labour Commissioner.
However, the Chief Inspectorate of Factories, who shares similar responsibi l i ty to ensure safety standards in the manufacturing sector, has the necessary technical backg round and expe r i ence . The Labour Commissioner has a n o n t e c h n i c a l b a c k g r o u n d . Construction safety, on the other hand being a clearly technical subject, the office of the Labour Commissioner may not be equipped with the adequate know-how to carry out the inspection of construction sites.
Unfortunately, neither the Central nor state governments wish to increase their manpower or create a new department for the enforcement of this new legislation. Besides, the sheer number of construction sites spread all over the country, it will not be adequate for the effective implementation of the Act.
Certification of workersThe provisions of WTO and Gats
were made applicable from 2006 onwards as India being the signatory to this accord. Under these provisions transparency and removal of barriers are the major aspects. To achieve this, certification of workers will be a mandatory clause in all tenders.
In order to ward off any future complications with the implementation of WTO provisions, it is high time that all contractors working with CPWD and officials of the department are
exposed to these requirements. The CIDC in assistance with
CPWD has initiated the process of training, testing and certification of construction workers. Today there are about 15,000 construction workers who have been tested and certified. Under the skill upgradation scheme, CIDC imparts specialized training to workers to enhance their skills.
A safety culture needs to be developed as an integral part of the work culture of an organization. It must be a basic component of the management philosophy just as profit making is. The aim should be at providing a safe work layout and work
arrangements which are conducive to promote health and wellbeing of workers which ultimately generates the feeling of trust and loyalty among the workforce.
Need to train workersW i t h t h e a d v a n c e m e n t i n
technology there is more need for training workers (operators) as per the latest tools trends and techniques so as to ensure the safe operation of high-tech equipment and to avoid any danger to human life.
The legislations that are into force were brought with a view to avoid labour discontent and zero down the
areas of conflict. Government’s policy is to ensure that the intended benefits and advantages reach construction workers at the earliest and in full measure.
The difficulties experienced by these acts will come forth once their enforcement in various states gains momentum and subsequent corrective measures would be taken so as to make them more responsive to the welfare needs of construction workers.
(Courtesy: Construction Industry Development Council (CIDC)
10 plunge to death at Istanbul construction site
An elevator falling from the 32nd story of a building under construction in Instanbul, Turkey, killed 10 workers on it in Mecidiyeköy district on September 6 evening.
The elevator crashed to the ground around 7:45 pm local time. Nine people, reportedly those charged with work safety at the construction site, were detained in connection with the deadly accident.
Prime Minister Ahmet Davutoğlu assured the publ ic about the investigation into the accident, and said “a detailed probe” will reveal whether the negligence played a role in the accident. He added that the government would take all measures to prevent a repeat of such an accident.
Aziz Torun, CEO of the company building the 42-storey housing block in central Istanbul, denied the allegations that the elevator carrying workers was faulty. At a press conference Torun cited several people were detained and pledged that his company would fully assist in the judiciary investigation to find those responsible.
Torun said the work safety measures were in place at the construction site and the elevator that dropped down
the shaft was capable of carrying 2,700 kilograms and 28 people. “I take that elevator too when I visit the site,” he said.
The CEO denied reports that the elevator and other elevators at the site “always had a glitch.” “It is an outright lie. We rented it from another company and two employees of that company work at the site for daily inspection and maintenance,” he said.
He noted that although workers at the site are trained for work safety, “it is difficult to have them all act in line with safety standards at a construction site where about 1,500 people work.” Some workers backed Torun’s statement about the safety of the elevator, and said there were sensors on the elevator that emits a warning siren in case of overload.
M e a n w h i l e , a g r o u p o f demonstrators gathered in front of the construction site to protest the accident that they claimed was the result of negligence. Riot police attempted to disperse the crowd that blocked the entrance to the site and demonstrators hurled bottles and stones on the police.
Speaking about the accident, Istanbul Governor Hüseyin Avni Mutlu
said security forces may detain more people in connection with the incident as the investigation is still underway. “It should not be viewed as an accident. Such incidents should not happen at construction sites and similar places where work safety is supposed to be at the highest level.
M u t l u a d d e d t h e r e w e r e construction materials on the elevator along with the workers. He stated that although the probe was not yet concluded, initial findings showed that the workers were on the elevator long after the end of working hours.
Minister of Labour & Social Security Faruk Çelik said the accident happened despite their constant warning to employers and employees in the construction sector to act with the utmost care in terms of work safety.
“Companies have to employ labour safety experts under the current regulations and those experts should issue accurate reports about the working conditions in the workplace. We will look into whether the experts and the company are at fault here,” he said. Çelik said the work at the construction site was suspended following the accident.
September 15-21, 2014 8REAL ESTATE
Disadvantages of high-rise
High-rise buildings absorb direct and
reflected solar radiation of surrounding low-rise buildings and convert it
into heat
245 metres either approved or under construction.
Ahmedabad too has about 13 tall buildings which are under construction and are ranging between 200 metres to 410 metres. Hyderabad, Bengaluru and Pune too are witnessing some development in construction of tall buildings for residential-commercial purpose wi th some approved projects.
All in all, this amounts to around 60 skyscrapers. Developers see such edifices as a good way to attract potential buyers -- high-rise buildings are a good gambit to differentiate their offerings from the rest of the pack. However, this coin has two sides – high-rise development has its own share of demerits, too.
Effect on urban windRise in the elevation of a building
increases the distance of the wind shadow and minimizes the air flow at the street level behind the building. Near high-rise buildings, the local wind speed is high even in summer. In addition, high-rise buildings tend to create a turbulent flow of the gradient wind as a result of increasing the roughness of the boundary layer surface.
More air pollutionIn summers, local wind speeds
near skyscrapers are very high and troublesome. The ventilation conditions in the urban spaces and major streets with high vehicular traffic have significant impact on the concentration of air pollutants at the street level. The high velocity and turbulent wind at the street level results in the mixing of the highly polluted low-level air with cleaner air flowing above the urban canopy.
Effect on urban radiationHigh-rise buildings absorb direct
and reflected solar radiation of surrounding low-rise buildings and convert it into heat via convection of long wave radiation. However, when buildings are of different heights, the walls of the higher buildings absorb part of the reflected and emitted radiation and block a portion of the sky, resulting in reduced solar exposure and long-wave emission from the roofs of the lower buildings.
Higher urban temperatureSize and density of the built-up
areas affect urban areas temperatures. In the congested centres of large cities, temperature levels are generally higher than in the suburbs. The largest elevations of urban temperature occur during clear and still-air nights, also called ‘Urban Heat Island’.
Excessive opacity of high-rise buildings in city centres results in concentrated heat generation by high-density land use (traffic, lighting, heat exhaust) and contributes to the creation of urban heat islands.
Effect on night coolingNocturnal radiation is a major
climatic factor that reduces atmospheric heat in urban areas located in hot, dry regions. Nocturnal radiation decreases when the density and the height of built-up urban masses increase.
High-rise buildings store solar energy during the day time and release it slowly into low-speed local wind, especially at night. The vertical distance between cool winds above buildings roofs and the ground surface is long, and this results in decreased radiant cooling during the nights.
Low-rise buildings that match trees heights of 12-15 meters, on the other
hand, penetrate night-time ventilated cooling at the ground level and also store cool radiation through built-up urban areas.
Other factorsTall buildings are colder in winter
and hotter in summer than regular buildings, and therefore require more heating and more cooling. This is particularly true of modern glass towers. Thus, a lot of energy is required to keep these high rises functioning.
Exterior cleaning and maintenance of a high-rise building can be very costly and dangerous. With global warming (which causes higher wind speeds) on the rise, insurance companies often refuse coverage to maintenance companies in charge of high-rise buildings at certain times of the year.
High-rise buildings take longer to build, and due to rapid and heavy construction activi ty within the city, there is a heavy load on civic infrastructure.
In high-rise buildings, the average construction cost per square foot is 20-25 per cent higher if the building
has more than 12 floors.Major modi f icat ions and/or
renovations in a skyscraper are significantly more cost-intensive.
If a new building has to be built on the same piece of land, the number of claimants is vastly higher.
Remedial infra measuresWhen it comes to our largest cities,
there is not much one can do about these factors – and indeed, they are accepted as a fact of life in a city like Mumbai, which must grow vertically if it is to grow at all. Unfortunately, the areas of our cities which are in the biggest need of high rise buildings are also the ones which offer the lowest scope for remedial infrastructure measures that could reduce the impact of skyscraper development.
Hard facts of housing shortage By 2020 the country
will be facing an extra demand for more than 30 million additional
homes
below-average standard homes. This does not mean that the average income of Indians is reducing, but only that housing prices have been increasingly exponentially. There is a huge gap between supply and demand and people have fewer choices when it comes to living standards.
In some cases, people have to queue up and take part in lotteries to have homes allotted to them. According to the Ministry of Housing & Urban Poverty Alleviation, affordable housing constitutes living units for which the equated monthly instalments (EMIs) should not exceed 40 per
Even today, a majority of Indians still find it hard to fulfil the desire to own a home. Surprisingly, this is a decade when luxury items like Led TVs and smartphones are becoming affordable and housing is getting more and more expensive.
Most people in India still live in
extra demand for more than 30 million additional homes.
According to the 12th 5-year plan (2012-2017), the housing shortage in India has reduced to 18.78 million. However, the data collection is questionable and government departments continue to argue on the exact figure Also, it is not just the income of the EWS that seems to be a deterrent factor here. Land prices, financial and regulatory concerns and other factors also play a big role in the problem.
Today, land is not an easi ly available asset in India. In most cases, acquisition of a plot for housing development is a cumbersome, time-consuming and highly expensive process. With increasing population and rising urban density, the demand for land has also seen an exponential rise. The shortage has also been contributed to by poor municipal, state and central regulations.
Rising cost of constructionLand prices are higher than the
rate which is compatible with the development of mass real estate development – read affordable housing. There also has been an increase in the cost of construction, directly reflecting in the housing prices.
Another problem is the lack of infrastructure. Developers are bringing out projects in peri-urban locations to keep the housing cost down, but these
cent of the owner’s gross monthly household income. However, even homes priced between Rs. 20-40 lakh are also often referred to as ‘affordable’ by developers.
Main concernWhatever the exact definition of
‘affordable housing’ may be, the main concern is that there is a huge shortage of supply in this segment. 80 per cent of this shortage is still concentrated in the economically weaker section (EWS) of the Indian population. If the current backlog is maintained, then by 2020 the country will be facing an
locations are generally unattractive based on lack of public transportation and increasing pollution in these areas.
The majority of Indian home seekers are workers moving into cities and looking for housing that would be compatible with their starting incomes. The ones from the economically weaker sections look for properties that provide access to public transport, water and power supply systems, sewage treatment lines and other conveniences.
Things to look forIn this respect, they are no different
from home buyers from the middle- or upper-middle class. Why should they be? These are the basic things that any home buyer would look for.
No matter what measures are proposed by the government of self-governing bodies of real estate developers, they will not be able to reduce the figure of housing deficit if they do not start catering to the EWS-generated demand.
The bulk of the existing shortage of homes remains squarely in the genuinely affordable housing sector. No amount of supply in housing units costing above Rs 20 lakh is going to make any difference – in fact, supply priced above this will just add to the oversupply that we are seeing in most cities.
Sachin Agarwal CMD, Maple Shelters
Subhankar Mitra Head, Strategic Consulting (west) JLL India
Internationally, a building that reaches or exceeds the height of 150 metres is considered a skyscraper. Until recently, Mumbai was the only Indian city with high-rise buildings. The financial capital continues to see the highest demand for skyscrapers, as the only option to grow there is vertically.
It now seems that in coming decade, Maximum City will receive an even more cohesive skyline, with a host of projects in the race to touch the sky being constructed. The demand for high-rise buildings is certainly growing, and other cities are catching up.
Mumbai continues to have the maximum number of tall buildings approved or under construction. Development of India One building -- the tallest in the country -- has already begun in Mumbai. It spans 126 floors and stretches up to a height of 720 metres. Apart from this, the city has more than 30 such super-tall buildings ranging between the height of 150 metres to 450 metres either at the approval stage or already under construction.
Good gambitNew Delhi, the capital of India, has
around a dozen of such buildings coming up. They range between heights of 150-300 metres. Kolkata too is catching up with 9 such residential buildings extending to the height of
September 15-21, 2014 9
Hitachi to send two 200-ton excavators to QatarHitachi Construction Machinery
Midd le Eas t Corpora t ion has announced that it is to send two EX-1900-6 BH excavators to Qatar in October 2014.
The gigantic duo has been ordered by main contractor working on Doha’s New Port Project (NPP), north of Mesaieed.
The large excavators, which have operating weights of 191 tons, have been purchased by Hyundai Engineering & Construction Company Limited’s Qatar division.
The machines rank amongst the industry’s biggest excavators, with bucket capacities of 12m3. The sizeable scoops have been enlisted in an attempt to enhance bund construction and reclamation productivity.
It is also hoped that the reduction in necessary operating hours, facilitated by the excavators’ size, will lower emission levels at the port project.
Hyundai Engineering purchased the EX-1900-6 BH excavators from Hitachi’s Qatari dealer, Arabian Supply
Center (ASC). The Doha-headquartered channel partner will also coordinate delivery of the machines.
Doha’s NPP will span 20km2 following completion. Construction is being executed in three phases, with Hyundai Engineering handling excavation activities on the third: Canal Excavation Quay Walls and Channel Dredging.
Once operational, the Qatari port will boast an annual handling capacity of more than 12mn 20-foot equivalent units (TEU).
The H i tach i EX-1900-6 BH excavators will be delivered with three buckets: two 5.8m3 ripper scoops for the excavation of hard materials, and a 12m3 standard bucket to handle loose materials.
The duo’s primary responsibility will be to excavate hard limestone and softer soil at the port-build site.
The latest sale forms part of Hitachi’s strategy for the Middle East in the lead-up to major events such as Expo 2020 in Dubai, UAE, and the 2022 FIFA World Cup in Qatar.
EQUIPMENT
BEML launches new motor grader
suitable for road construction projects in rough terrains.
The equipment is provided with joy stick for ease of operation which reduces operator fatigue. It is fitted with accumulator assisted all hydraulic braking which ensures fast response, while working under demanding conditions.
The ergonomical ly designed cab in has improved opera tor comfort, wider visibility and safety, fully programmable digital display system with a seven inch LCD screen provided for improved diagnostics.
T h e s t a t e - r u n B E M L L t d , manu fac tu re r o f heavy ea r th moving equipment for mining and construction sectors, has launched an indigenously developed new version of motor grader - BG405A for deployment in the infrastructure/construction sector.
The new motor grader is BS III compliant engine with a net horse power of 119HP and is certified by ARAI.
BG405A is designed with articulated boom and has a compact wheel base with 10 feet blade and has a turning circle radius of 6.5 metre, especially
TMEIC India to manufacture high voltage induction motors
Tosh iba Mi tsub ish i -E lec t r ic (TMEIC) India announces its plan to manufacture High Voltage Induction Motors (HT Motors) at its upcoming factory at Tumkur near Bengaluru in Karnataka. This factory will start its manufacturing from October 2015, where TMEIC’s existing range of HT Motor series TM21-G will be manufactured from 200kW up to 23,000kW power range in high voltage range of 3.3kV up to 11kV.
This will include TEFC (frame 315 up to 560), CACA (TEAAC), CACW (TEWAC) (frame 400 up to 900), type motors for horizontal, and vertical mounting, for safe area and hazardous area environments. TMEIC will manufacture these HT motors primarily meeting all Indian standards and environment requirements. With manufacturing capacity of around 2,700 of HT Motors per year, TMEIC’s Indian factory will fulfil needs of Indian customers as well as global customers.
The main features for the TM21-G ser ies motors wi l l be i ts most advanced optimally engineered design done using ultra-modern techniques of engineering. This gives
benefits of compact smaller footprint, higher power output from smaller frame sizes, higher performance parameters of efficiencies, power factor, noise and vibration, and hence best value for its money for the end-users, OEMs, EPCs around various industries.
TMEIC presently manufactures its entire range of rotating machines at its Keihin and Nagasaki works in Japan. Please contact the undersigned for more details and information.
TMEIC as well is very happy to announce its launch of ‘TMdrive-MVe2’ series medium voltage inverter in Indian market, which is a latest generation MV-VFD (MV-VVVF Drive) to work with existing or new induction and/or synchronous motors. The TMdrive-MVe2 is a regenerative IGBT Front End converter Multi-Level medium voltage variable frequency modular drive system which uses 3 level NPC inverter technology for its Cell Inverter Module.
This means for getting a 6600V VVVF output, the drive uses just 3 Cell modules per phase, which makes this very compact and efficient drive system. It is available in 3.3kV, 6.6kV,
11kV voltage output, for various power ratings.
TMdrive-MVe2 is a versatile, very rugged MV Inverter, which is used in oil & gas, refineries, petrochemicals, chemicals, fertilizers, steel plants, power generation plants, cement p lants , water and wastewater plants, rubber, plastic, paper, mining industries for variable and constant torque applications.
TMdrive-MVe2 is a perfect fit product for doing retrofitting of MV Drives for energy savings for existing fan, pump, compressor applications. With many superior features, this MV-VFD presently boasts of the world’s best technology product.
TMEIC with its global reputation on high quality standards has already made its inroads in Indian market to serve Indian Industries with this product.
September 15-21, 2014 10REAL ESTATE
Residential and office outlook
The India Real Estate Outlook 2014 serves as
an industry guide for developers, suppliers, financial institutions,
consumers and everyone else tracking
the sector
The gap between demand and supply has been narrowing gradually over the last year, and this trend is expected to continue in the next six months on the back of a strong recovery in sales volume. The impact of this can be seen in the weighted average prices, which have been inching upwards since 2012.
During H1 2014, prices in Bengaluru have appreciated at the fastest pace
developed a model that captures the relative health of a city by taking into account demand, supply and the age of unsold inventory.
The age of unsold inventory is the number of quarters that have passed since the inventory entered the market. A higher age of unsold inventory indicates that a large number of old projects continue to remain unsold. Demand and supply is represented by
The residential markets of the top six cities in India -- Mumbai, National Capital Region (NCR), Bengaluru, Pune, Chennai and Hyderabad -- have been witnessing extreme volatility in terms of demand and supply over the past two years.
While the residential market showed signs of recovery in 2012 and H1 2013, there was a sudden drop in new launches and absorption from H2 2013 onwards. Factors like slowing economic growth, rising interest rates by banks, high inflation and the weak rupee, among others, contributed towards building a negative sentiment among home buyers and resulting in a dwindling sales volume.
Phenomenal growth rateWhile new launches fell by 32 per
cent in H1 2014 compared to H1 2013, the sales volume dropped by 27 per cent during the same period. All the cities witnessed a steep fall in absorption, in the range of 14-37 per cent during H1 2014, with the Bengaluru and NCR markets falling by the lowest and highest rates, respectively.
The election results, sops for the housing sector in the Union Budget and all the subsequent decisions taken by the Central government in order to revive the economic growth of the country seem to have changed the home buyers’ sentiment from negative to positive in the past three months.
The sales volume in these six cities is expected to experience a phenomenal growth rate of 26 per cent in H2 2014, compared to H2 2013. Mumbai and Bengaluru are expected to lead in the recovery of sales volume, with 49 per cent and 26 per cent growth respectively, during this period.
In contrast to this, the number of new launches is forecasted to report a subdued growth of 5 per cent in the next six months. High unsold inventory and the poor response received by the new projects launched during H2 2013 and H1 2014 are expected to deter the developer community from launching any fresh projects in most of the cities during H2 2014.
Strong recovery in sales The only exception to such a trend
will be the NCR and Chennai markets that are forecasted to witness a strong growth in new launches, as these markets had observed the sharpest fall during H2 2013, resulting in a low base during that period.
and Mumbai are forecasted to post the maximum year-on-year growth in absorption during H2 2014, at 96 per cen, 85 per cent and 76 per cent, respectively.
Vacancy levelsIn terms of vacancy, the Bengaluru
office market continues to lead, with the lowest vacancy level of 11 per cent during H1 2014, compared to 19-22 per cent reported in the other cities. The steep fall in new completions, which was reported at 3 million sq ft during H1 2014, compared to an absorption level of 6 mn sq ft, has helped Bengaluru in attaining its current level of vacancy.
Going forward, vacancy levels across all the six cities are expected to improve marginally during H2 2014, except for Mumbai. A sharp increase in
transaction by occupiers. However, the average deal size has reduced marginally in most of the cities during the same period.
While Pune has witnessed the steepest drop in the average size of deals during H1 2014, Bengaluru has been able to maintain it, despite a substantial jump in the number of deals. The ticket sizes of transactions have considerable influence on the rental movement during a particular period.
While tenants with a requirement for large spaces tend to have the upper hand during rental negotiations, the reverse is true with small-size deals. Hence, a drop in the average size of deals could lead to an upward pressure on rents.
Unlike residential markets, where
>20MN
10-20 MN
7.5-10 MN
5-7.5 MN
2.5-5 MN
<2.5 MN
Ticket Size Split of Launched Units during H1 2014
Mumbai NCR Bengaluru Pune Chennai Hyderabad
Source: Knight Frank
Research
100%
80%
60%
40%
30%
20%
0%
City-wise new completion, absorption and vacancy during H1 2014
NEW COMPLETION
ABSORPTION
VACANCY (RHS)
7
6
5
4
3
2
1
0
30%
20%
10%
0%Mumbai NCR Bengaluru Pune Chennai Hyderabad
22% 21%
11%
20% 22%
19%
LAUNCHES ABSORPTION
City-wise New Launches and Absorption forecasted for H2 2014
Mumbai NCR Bengaluru Pune Chennai Hyderabad
Source: Knight Frank Research
60,000
50,000
40,000
30,000
20,000
10,000
0
LAUNCHES
ABSORPTION
City-wise New Launches and Absorption during H1 2014
Mumbai NCR Bengaluru Pune Chennai Hyderabad
Source: Knight Frank Research
40,000
30,000
20,000
10,000
0
of 11 per cent, compared to H1 2013. This was followed by Hyderabad at 9 per cent during the same period. Prices in Hyderabad seem to be finally catching up with the other cities as the political uncertainty regarding the decision of dividing the state of Andhra Pradesh has ended.
Go ing fo rward , Mumba i i s forecasted to lead in terms of price appreciation during H2 2014, at 10 per cent compared to H2 2013, on the back of a strong revival in absorption. Pune has emerged as the most affordable city during H1 2014, as 83 per cent of the new launches were below the ticket size of Rs 5 million.
Since the majority of the new projects were launched around the periphery of the city, the ticket size of the apartments in these projects has remained small, despite a steady growth in prices. Similarly, 75 per cent and 62 per cent of the new launches in Chennai and NCR respectively were below the ticket size of Rs 5 million.
Mumbai has emerged as the most premium market, with 34 per cent of the total launches during H1 2014 above the ticket size of Rs 10 million. Mumbai was followed by NCR and Hyderabad at 23 per cent and 20 per cent respectively.
Despite having the lowest weighted average price among the six cities, Hyderabad has a large number of projects above the ticket size of Rs 10 million. The primary reason for such a trend is the fact that the apartment sizes in most of the new projects are still on the higher side, compared to the other cities.
InventoriesComparing these cities in terms of
the number of launches and absorption does not yield a true picture of the health of the market. Hence, we have
the Quarters to Sell Unsold Inventory (QTS) in the model.
QTS can be explained as the number of quarters required to exhaust the existing unsold inventory in the market. The existing unsold inventory is divided by the average sales velocity of the preceding eight quarters in order to arrive at the QTS number for that particular quarter. A lower QTS indicates a healthier market.
Currently, the Bengaluru residential market is the healthiest market among the six major cities. With a low QTS and age of unsold inventory, Bengaluru is the most balanced market, despite a steady drop in sales volume since H1 2013.
Developers in Bengaluru have been vigilant with regards to the falling absorption level, and have reacted prudently by deliberately shrinking the number of new project launches in the last year.
The health of the Mumbai residential market is the poorest, with the highest QTS and a large number of unsold inventories from previous years. The health of the Mumbai market is expected to improve marginally in the coming six months, on the back of recovery in sales volume and slower growth in new project launches.
Office market The office market of the top six
cities has been recovering steadily over the past two years, with vacancy levels falling from 21 per cent in H2 2012 to less than 19 per cent in H1 2014. The recovery has been led primarily by the gradual increase in absorption across the top six cities. The combined absorption of these cities has increased from 14.7 million sq ft in H2 2012 to 17.9 million sq ft in H1 2014, and we forecast this to rise even further to 18.7 million sq ft during H2 2014.
For the full year 2014, we expect absorption to touch 36.5 million sq ft –- an 8 per cent jump from the 33.9 million sq ft reported in 2013. In contrast, new completions expected to hit the market will grow by 3 per cent, to 37.4 million sq ft in 2014, compared to 36.4 million sq ft in 2013. This will result in the vacancy levels dropping further to 18.4 per cent by the end of 2014.
Chennai and Bengaluru have led in terms of growth in absorption, at 47 per cent and 29 per cent respectively during H1 2014, compared to H1 2013. However, Hyderabad, Pune
new completions, which is forecasted at 6.6 million sq ft, compared to just 4.2 million sq ft of absorption during H2 2014, is bound to push the vacancy levels in Mumbai even higher.
Vacancy levels in the Chennai market are expected to improve considerably in the next six months, as absorption in the city is projected to far outstrip new completions. While 2.2 million sq ft of office space is estimated to be transacted in Chennai during H2 2014, new completions are expected to touch 1.1 million sq ft.
The IT/ITeS sector continues to lead in terms of share in total absorption across all the cities, except for Mumbai. Demand from the manufacturing sector has dominated the Mumbai office market, followed by the other services sector during H1 2014.
Interestingly, the share of the other services sector has been increasing steadily across all the six cities over the past few years. Currently, the other services sector contributes more than one-fifth of the total office space
demand in the majority of these cities. The other services sector includes companies from consulting, retail, eCommerce, infrastructure and real estate, among others.
Substantial jump in dealsDuring H1 2014, the office space
market in each of the six cities has witnessed a substantial jump in the number of deals. The total number of deals has increased from 542 in H1 2013 to 623 in H1 2014.
This is a clear sign of improvement in the office space market, as an increase in the number of deals indicates a wider participation in
regained their share in total transaction, which they had been losing out to PBD markets over the last few years. Since the rental values in SBD markets are on the higher side, the city’s weighted average rent has been observing a faster growth.
The weighted average rental value in Mumbai has been on a downward trajectory since 2012, as the shares of peripheral and suburban business districts have been increasing steadily with each passing year at the cost of the CBD and off-CBD markets.
prices have been increasing sharply over the last three years despite a slowdown in the sales volume, the growth rate achieved in the rental value of office space has been relatively constrained.
Rental growthThis is despite the fact that
absorption in each of the six cities has been growing steadily since 2012. The primary reason for such an anomaly is that the majority of the transactions are taking place in the peripheral business districts, where rents are considerably lower than those in the central or suburban business districts.
This pulls down the weighted average rent of a city. During H1 2014, the weighted average rental growth in these six cities was limited to single digits, except for Pune. Unlike other cities, the Pune office market has witnessed a strong traction in the SBD markets, compared to the PBD markets during H1 2014.
This is a clear reversal in trend, wherein the SBD markets have
(contd. on pg 11)
September 15-21, 2014 11INTERNATIONAL
Hill Intl to manage Dubai theme park construction
Hil l Internat ional has won a consultancy contract for a new AED9.5 billion (£1.6 billion) theme park development in Dubai. It will provide Meraas Leisure & Entertainment with show and ride construction management services in connection with the first phase of Dubai Parks.
The two-year con t rac t has estimated value to Hill of approx. AED186.9 million (£31.5 million). Dubai Parks will be a 30-million-sq-ft leisure complex featuring numerous theme parks with hotels, retail, dining and entertainment facilities in the Jebel Ali area. There will also be an inner-city family entertainment centre with retail and dining facilities in the Satwa region.
Bouygues lands $5.2b Hong Kong tunnels
Two Bouygues subsidiaries have won a HK$ 5.2 billion (£415 million) contract with MTR Corporation for tunnels on the Shatin to Central Link. Dragages Hong Kong and Bouygues Travaux Publics will build four sections of tunnel with a total length of just under 2 km. They will form part of a 6 km extension of the rail link.
To cope w i th the comp lex geological conditions, two different types of tunnel boring machines (TBMs) will be used: a slurry TBM and an earth pressure balanced TBM. The work is scheduled to take six years, with completion due in 2020.
Some 500 people will be working on-site at peak periods. The two eastern tunnels, each approximately 540 m long, will run from the Shatin to Central Link’s south ventilation building and the new exhibition station.
The two western tunnels, each about 450 m long, will be bored
Spanish consultant picked for Saudi rail study
The Saudi Railways Organization (SRO) has signed a contract for SR 6,000,621 (£971,000) with a Spanish consortium headed by Consultrans to study options for a high-speed line between Riyadh and Dammam.
The line will have a design speed of 350 km per hour to enable trains to operate at 300 km per hour.
SRO president Mohamed Khalid Al-Suwaiket Al-Suwaiket said that the 10-month contract will include the traffic movement study between the two cities and determine the line as well as the preliminary technical outline of the infrastructure needed for the project.
between the Fenwick Pier emergency egress point and the ex is t ing Admiralty station. Bouygues will also construct the ventilation building.
Philippe Bonnave, Deputy Chief Executive, Bouygues Construction,
said, “This latest success further demonstrates our ability to meet technical chal lenges and carry out very large-scale infrastructure projects.”
Unaf fordable rents, lack of amenities, inadequate parking facilities and smaller floor plates in office buildings located in the CBD and off-CBD markets have caused this exodus, leading to a negative growth n the weighted average rental value of the city.
During H2 2014, we forecast Pune and NCR to lead in terms of growth in the weighted average rental value, compared to the rest of the cities. While rents in Mumbai will continue their downward spiral, cities like Bengaluru, Chennai and Hyderabad are expected to witness a subdued growth, as the peripheral and suburban business districts in each of these cities continue to increase their share in the total transactions.
Bengaluru residential marketBengaluru has long been one of
the preferred residential destinations in India, thanks to factors like a favorable climate and apt socio-economic conditions. The advent of the IT sector in the region in recent years has brought about great change in the residential landscape of the city, turning it into a veritable property hub.
The Bengaluru residential market proved its resilience effectively by maintaining a healthy demand for
homes and new project launches in 2013 in a situation wherein most of the prominent residential markets across the country witnessed a witnessed a negative churn. However, the momentum has somewhat slackened in 2014, and while the demand for homes had increased by 13 per cent in 2013 over the demand in 2012, it is expected to increase by just 3 per cent in 2014.
The total number of units to be absorbed is expected to increase from 57,366 in 2013 to 59,300 in 2014. This lack of substantial growth in absorption is expected to be accompanied by a drop in the number of new launches during the year. New launches are estimated to decrease by 8 per cent from 78,300 units in 2013 to 72,113 units in 2014.
Since comparing the absolute numbers of absorption and new launches on an annual basis is not adequate to understand the health of a market or its impact on price, hence, with the aim of removing seasonality from the data, we have analyzed the long-term moving average (eight quarters) trend in absorption and new launches.
It should be understood that demand and supply are influenced by various other independent factors,
such as economic growth, market sentiment, interest rate and income growth, among others. An annual rise or fall in demand and supply could be misinterpreted as a sign of a strong or weak market.
Interestingly, the rate of increment in new launches has moved in tandem with the growth in absorption since December 2013. This underscores the fact that developers have realized that demand exists for realistically priced properties that offer quality, transparency in deals. Low volatility in pricing ensures that the sales momentum is maintained and buyers sentiments are not crossed.
Impact on priceWhile the analysis of absorption
and new launches provides a fair idea about the traction being witnessed in the market, the impact on price can primarily be understood by studying the unsold inventory available in the city.
Hence, we have calculated the Quarters to Sell Unsold Inventory (QTS), which can be explained as the number of quarters required to exhaust the existing unsold inventory in the market. The existing unsold inventory is divided by the average sales velocity of the preceding eight quarters in order to arrive at the QTS number for that particular quarter.
A lower QTS indicates a healthier market. The QTS ratio for Bengaluru has inched upwards by one notch
since September 2013, signifying a gradual weakening of buyer sentiment in the market.
The decline of sales volumes by 20 per cent in H2 2013 as compared to H1 2013 was instrumental in pushing up the QTS from 6 to 7. While the sales volume dropped from 31,844 units in H1 2013 to 25,522 units in H2 2013, new launches declined by 14 per cent from 42,155 units to 36,145 units during the same period.
In H1 2014, another 2 per cent decline in new launches was observed, compared to H2 2013. This decline in new launches can be taken as a cognizance of the developer community towards an impending demand-supply imbalance in the market, owing to continuous build-up of unsold units in the city. However, although the sales volume increased slightly, by 7 per cent during H1 2014 to 27,256 units, this has not directly resulted in bringing down the QTS ratio yet.
We expect another six to nine months for the Bengaluru market to offload its excess unsold inventory and cause the QTS ratio to revert to its 2012 level. The election results, revival of manufacturing activity, higher salary growth of IT/ITeS employees and various sops announced in the Union Budget of 2014 seem to have induced a positive change in the home buyer sentiment.
Revival in demandThe conversion time between a
sales inquiry and an actual sale has shortened considerably, indicating a revival in demand. While the sales volume has improved somewhat in H1 2014, we expect it to strengthen even further in H2 2014.
Absorption is forecasted to increase by 18 per cent to 32,044 units in H2 2014, compared to H1 2014. This translates into an increase of 26 per cent over the sales volume in H2 2013.
Meanwhile, the variation in demand and supply of residential property notwithstanding, price levels in the city continue to move upwards, albeit at a slower, controlled pace. The weighted average residential price in Bengaluru has increased by 11 per cent from Rs 4,020 per sq ft in H1 2013 to Rs 4,473 per sq ft in H1 2014.
This can be attributed to the rising cost of input materials and the relative decline in new launches. Going forward, we forecast the prices to increase nominally, by 1.5 per cent in H2 2014 to Rs 4,540 per sq ft, compared to H1 2014, on the back of a moderate recovery in sales volume.
(Courtesy: KnightFrank India)
residential and office outlook
Arcadis wins major airports contracts in
Peru, BrazilArcadis has won two new aviation
contracts in Latin America, for a total amount of $23 million (£14 million). The wins are in line with the company’s strategy to develop its aviation and wider infrastructure presence in Latin America.
Together, the two contracts cover a broad range of aviation services including planning, conceptual design, engineering, programme and project management as well as business advice.
Under the larger of the two contracts, Arcadis is providing design and engineering consulting services for the expansion of the Jorge Chávez International Airport, the largest airport in Peru.
The other contract encompasses project management consulting services for the development of the first private commercial airport in Brazil, named Catarina and located at São Roque, in the state of São Paulo. Both contracts will last approximately two years.
A team of Arcadis av ia t ion specialists from Brazil, the UK, Chile and Peru will be assembled in the coming weeks to perform the planning and design services for the development of Jorge Chávez International Airport. The expansion project includes the development of a new terminal, new runway, aprons and the retrofit and expansion of the existing terminal.
(contd. from pg 10)
September 15-21, 2014 12
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EvENTS Bentley Advantage seminar on sustaining infrastructure
The Bentley Advantage seminar, held in New Delhi recently, provided insights on the future of Bentley Systems’ innovative software and services for sustaining infrastructure.
More than 250 delegates from the industry attended the event, which featured presentations by Bentley executives on latest technologies enab l ing in fo rmat ion mobi l i t y across multiple disciplines and the infrastructure design, build, and operations lifecycle.
The seminar’s objective was to help Bentley users maximize return on their software investments as they improve efficiency and effectiveness of their projects and/or infrastructure operations.
Jean Baptiste Monnier, Bentley’s Sen ior V ice Pres ident , APAC, delivered the keynote presentation h i g h l i g h t i n g B e n t l e y ’ s B I M Advancement, Information Mobility and MANAGEservices.
On Bentley’s BIM Advancement, he said, “In November 2013, during its annual Year in Infrastructure Conference for the world’s leading executives in infrastructure design, construction, and operations, Bentley introduced a new way of looking at BIM, as it advances beyond 3D design and visualization. As explained during the Bentley Advantage seminar, the two directions of this BIM advantage together achieve better-performing assets through increased depth of information mobility and better-performing projects through increased breadth of information mobility. This next stage of the collaborative BIM advancement has been referred to as BIM Level-2 by the British government in its mandate to extend BIM benefits into construction.”
T h e L e v e l - 2 O p t i o n e e r i n g contributes to better asset performance by enabling infrastructure professionals to explore alternatives, including across disciplines, to an extent that would not be feasible without new simulation and analytical software and computational resources, he added.
Further, he said, BIM Level-3 extends the lifecycle of BIM into the operations of the completed asset. In this phase, information mobility makes design data and as-constructed models available for operations and maintenance, while ‘big data’ from sensors and operating metrics contribute to the creation of a rich, ‘immersive’ information model of the built asset to improve infrastructure performance, safety, and sustainability.
Bentley’s enablers of information mobi l i ty inc lude i -models , eB Information Manager, and Bentley Connect. i-models, which became mobile in 2013 for use in field apps, convey AECO deliverables across the infrastructure lifecycle and enable information to be shared among Bentley’s three platforms: MicroStation, ProjectWise, and AssetWise.
i-models provide provenance – knowledge of its origin and evolution, essentially its change history – and support the most popular industry applications and standards.
eB Information Manager underlies both ProjectWise and AssetWise, and
September 19-21, 2014 Automation & Robotics Expo 2014 The Auto Cluster Exhibition Centre, Chinchwad, H-Block, Plot C-181, Chinchwad, Pune 411019 An international automation & robotics conference & exhibition showcasing one of the best available technologically empowered equipment, machineries & services catering to Factory Automation, Robotics, Industrial Automation, System Integration, Field Automation, Drives and Controls, Logistics, Hydraulics and Pneumatics, Building Automation, etc. Contact: IBK Media, 224 Pranik Chambers, Sakivihar Road, Sakinaka, Mumbai 400072 Tel: +91-22-28574011 web: www.ibkmedia.com
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
November 6-8, 2014ConMac 2014Khanapara Grounds, Guwahati, Assam In order to provide a platform for the construction equipment industry and to showcase the technology available for accelerating infrastructure development of North-East India, the Confederation of Indian Industry (CII) will present ConMac 2014, a construction equipment & construction technology trade fair. The Indian Construction Equipment Manufacturers’ Association (ICEMA) is the sector partner for the event. Contact: J I Mahesh Kumar Tel: +91-9789814046 [email protected] www.conmac.in
November 13-15, 2014,World of Concrete India 2014HITEX Exhibition Centre, Hyderabad Business opportunities, networking services, one-to-one meeting with potential customers and presentation of some of the important products like aggregate processing, aggregates, anchors & fasteners, batching equipment, cleaning materials & equipment, coatings inspection, measurement, coatings, stains, sealers, computer hardware, software, cranes, cutting & drilling, decorative concrete, demolition equipment & materials by the exhibitors will be some of the highlights of this event. World of Concrete India will be attended by construction engineers, technical and professional experts related to concrete industry. Contact: Vivek Tyagi, Project Manager, Inter Ads Exhibitions Pvt Ltd. Tel: +91-124-4524207, +91-124-4524219 (M) +91 9871367808 Fax: +91-124-4524234 [email protected] http://worldofconcreteindia.com
November 25-28, 2014 Bauma China 2014 Shanghai New International Expo Centre 7th international trade fair for construction machinery, building material machines, construction vehicles and equipment. Contact: Ms Kim Kumer Tel: +49 89 949-20256 Fax: +49 89 949-97-20256 [email protected] www.bauma-china.com
December 3-6, 2014IMME 2014Salt Lake Stadium Grounds, Salt Lake, KolkataThe event provides an ideal forum for miners, planners and policy makers to discuss various issues affecting the mining industry in the Asian region in particular, and also in the rest of the world. The event provides an excellent business opportunity for manufactures of mining and allied industry to showcase their technologies, new initiatives, products and services to global audience.The event is a unique platform for entrepreneurs, government officials, investors, traders, equipment buyers & suppliers, miners, engineers and son. Contact : J I Mahesh Kumar Mob: +91 9789808994 Email: [email protected]
December 5-7, 2014Zak Glass Technology Expo 2014Pragati Maidan, New DelhiZak Glass Technology is the most important event for the glass industry in India and South Asia. It is the leading fair for glass and glazing technologies. As the most important communication platform for the glass industry, the show provides with everything that a special fair has to offer. It is an ideal place to find new, innovative and exciting products related to the glass industry. Contact: Samrendra Kumar, Asst Manager, Zak Trade Fairs & Exhibition Pvt Ltd, F-25, Ground Floor, Kalkaji, New Delhi 19 Mob: +91 99530 02884 [email protected] www.zakgroup.com
maintains the relationships and the changes within information elements throughout the project and asset lifecycles.
Bentley Connect lets Bentley users connect through cloud services to improve information mobil ity even beyond firewalls. Bentley is implementing Bent ley Connect through the Microsoft Cloud service to enable its users to augment and improve the technology they are already employing, which in many cases is Windows based. As a result, Bentley Connect extends information mobility without requiring users to start over from a technology standpoint.
In addition to these enablers of information mobility, Bentley also offers mobile apps for iPad, iPhone, and Android devices. This advancement allows users to seamlessly continue workflows while in the field or on the go. Among the apps are Bentley Map Mobile, Field Supervisor, InspectTech Collector Mobile, Navigator Mobile, and ProjectWise Explorer Mobile.
Jean Baptiste Monnier, Senior Vice President, APAC, Bentley Systems
