Kohinoor Teiko Hinjewadi Phase 2 Pune E-Brochure.pdf
Cir 36 2014
1. September 08-14, 2014 1
An MMR, Braj Binani Group Publication Volume 3 l Issue No 36 l September 08-14, 2014 l Price: Rs 100
Centre to invite global bids
for infra in 5 smart cities
The Modi government is planning
to start the process for construction
of five smart cities by the end of
the current financial year. The
Delhi Mumbai Industrial Corridor
Development Corporation (DMICDC)
is working on rolling out contracts
for developing trunk infrastructure
in Ahmedabad-Dholera investment
region, Shendra Bidkin investment
region in Maharashtra, integrated
industrial township Vikram Udyogpuri
in Ujjain, Madhya Pradesh, integrated
industrial township in Greater Noida,
Uttar Pradesh and global city in
Gurgaon, Haryana.
The DMICDC will invite international
competitive bidding for developing
trunk infrastructure including sewerage
treatment and collection, water supply
and roadways, among others.
The Centre will provide funds for
the trunk infrastructure through DMIC
Trust which has a corpus of Rs 17,500
crore to be utilized over a period of
five years.
“The contract for Dholera and
Shendra Bidkin investment region
would be floated by December while
that of Vikram Udyogpuri will be floated
by October. The others would be done
by January,” said a source.
The master plan for these cities has
already been completed and accepted
by the respective state governments
while the land acquisition for these
regions is underway.
For the Shendra-Bidkin industrial
park, and industrial townships
in Greater Noida and Ujjain, the
shareholder agreements and state-support
agreements (SSA) have
already been executed while they have
been finalized for global city project in
Haryana, said the source.
T h e A hme d a b a d -Dh o l e r a
investment region is spread across
an area of 902 km while the Shendra-
Bidkin industrial park is spread across
84 km. The DMIC aims at enhancing
the country’s competitiveness in
manufacturing by creating world-class
infrastructure and reducing logistics
cost.
It will create smart industrial cities
by leveraging the western dedicated
freight corridor to reduce cost of
logistics. In the first phase the DMIC
has taken up eight industrial cities on
the recommendations of the respective
state governments.
Nuclear deal with Oz will meet
growing demand for uranium
Gadkari to spend
`3.45 lakh cr on 30
million houses by 2022
The Nitin Gadkari-led Rural
Development Ministry is drawing up
plans to spend Rs 3.45 lakh crore
to build nearly 30 million houses
for the needy by 2022 under the
National Gramin Awaas Mission. The
Rs 50,000-crore-a-year programme
that seeks to turn PM Modi ’ s
vision of housing for all into reality
envisages even bigger allocation
than the previous Congress-led
UPA government’s ambitious rural
employment generation scheme
-- Mahatma Gandhi National Rural
Employment Guarantee Act.
The goal is to include all rural
families that do not have a pucca
house under the new scheme that will
eventually replace the Indira Awaas
Yojana that covers only families
below poverty line. A note has
been circulated for inter-ministerial
consultation, after which it will be sent
to the Finance Ministry.
“The final note, with inputs from
the Planning Commission and
the Ministry of Drinking Water &
Sanitation, will go to the Finance
Ministry. Once approved, it will be
taken up by the Cabinet,” said an
official.
Experts say the government can
achieve its target if the private sector
provides funds. “States which have
fiscal stability and enough funds will
be able to keep pace with the Centre
and may be able to contribute their
share of 25 per cent, but for weaker
states it will be difficult to contribute
this kind of funds,” said DK Pant,
Chief Economist, India Ratings &
Research.
The scheme proposes to increase
the unit cost by over 57 per cent
from the current Rs 70,000 a unit to
Rs 1.10 lakh a unit in plains and a
hike of 67 per cent from Rs 75,000
to Rs 1.25 lakh per house in hilly or
difficult areas.
The total number of rural houses to
be built over seven years from 2015
has been pegged at 29.5 million,
based on the Socio Economic &
Caste Census 2011, excluding this
year’s target of 2.5 million houses.
The overall expenditure to achieve
the target works out at Rs 3.45 lakh
crore, with an average cost of Rs 1.17
lakh per unit. The scheme promises
to spur the various infrastructure
sectors such as cement and steel.
The civil nuclear deal signed
between Prime Minister Narendra
Modi and visiting Australian Prime
Minister Tony Abbott on September
5 would help India meet the ever-rising
demand of uranium supply for
power plants.
N Nagaich, Executive Director, the
Nuclear Power Corporation of India,
said, “This is a welcome step as
India can expect a supply of uranium
from Australia on a continuous basis.
It is yet another diversified source
and will go a long way in helping the
continuous operation of reactors
fuelled by imported uranium.”
The Department of Atomic Energy
(DAE) has estimated India’s annual
need for uranium would to increase
to 1,600 tons by 2019, from the
present level of 400 tons.
It will further rise to 2,000 tons by
2022. According to the DAE, India
has limited uranium resources.
With the finding of new reserves in
the Tummalapalle mines in Andhra
Pradesh, the total capacity had shot
up by 5 per cent. Apart from Andhra
Pradesh, the other active uranium
mines are located in Jaduguda in
Jharkhand. These reserves, however,
are not enough to meet the increasing
fuel demand.
At present, of 19 power plants
with a total capacity of 5,870 mw,
9 operating reactors of 1,840 mw
under the International Atomic
Energy Agency are operating with
imported fuel.
Since the Nuclear Suppliers’
Group has given unconditional
waiver, India has so far imported over
2,000 tons of uranium.
At present, India is sourcing
uranium from Russia, Kazakhstan and
other suppliers. Besides, India has
signed similar deals with Mongolia
and Uzbekistan, which have 1,85,800
tons of proven uranium deposits.
Australia, which has 40 per cent of
the world’s known uranium reserves,
had lifted a long-standing ban on
selling uranium to energy-starved
India in 2012.
Sudhendra Thakur, former
scientist of the DAE said the civil
nuclear deal between India and
Australia would further the process of
full international co-operation in civil
nuclear power under international
safeguards.
“While for India, the agreement
diversifies sources for nuclear
materials, for Australia, it will go
a long way in increasing regional
participation and providing a wider
basket for its resources. There
would not be any red tape in yellow
business,” he noted.
Neelam Deo, Director of Mumbai-based
Gateway House, said the
nuclear cooperation agreement would
strengthen bilateral and expand
strategic cooperation between the
two countries.
“India is Australia’s fifth largest
export market, with total exports of
$11.4 billion. There is a thriving Indian
community of nearly 295,000 in
Australia. Australia’s support will also
facilitate India’s entry into the four
non-proliferation regimes – Australia
Group, Wassenaar Agreement,
Nuclear Suppliers Group, and Missile
Technology Control Regime,” she
added.
Industrial Model Township, Manesar
6. INFRASTRUCTURE September 08-14, 2014 4
PM to review causes that
thwart project progress
Infrastructure ministries are likely
to inform Prime Minister Narendra
Modi that credit squeeze, rising
non-performing assets, delays
in clearances and troubled land
acquisitions are some of the factors
impeding growth of the sectors they
oversee.
T h e F i n a n c e M i n i s t r y
representatives are expected to
point out that rising number of non-performing
assets (NPAs) is severely
impacting lending ability of state-run
banks. Gross NPAs of public sector
banks increased from Rs 1, 64,462
crore to Rs 2, 27,264 crore at the end
of March 2014.
The Financial Stability Report
released by the Reserve Bank of
India suggests that infrastructure,
iron and steel, textiles, mining and
aviation services added to the level
of stressed advances.
Despite the RBI allowing the banks
last month to lend to very long-term
projects, with an option to refinance
it periodically, there is no visible
improvement in their risk appetite.
This, despite the leeway provided
to them for getting higher returns
on their bonds. The 11th Five-Year
Plan had projected investment for
infrastructure of about Rs 20.5 lakh
crore, and Rs 41 lakh crore has been
estimated in the 12th Plan, according
to the Planning Commission.
Secretaries of power, steel, mines,
roads and aviation ministries are
likely to convey that greenfield
ventures deserve more attention as
difficult land acquisition, relief and
rehabilitation and stringent green
norms are emerging as challenges
to successful execution.
No bidder for 7 highway
projects
The Modi government fixed an
ambitious target of building 30 km
highways every day — 10 km more
than what the UPA government had
set -- but miserably failed to achieve
it. Now there are alarm bells ringing
in the Ministry of Road Transport
Highways headed by Nitin Gadkari.
Seven highway projects worth Rs
17,368 crore, bid out recently, failed
to attract even a single bidder.
These included the big ticket Delhi-
Meerut expressway and the Eastern
Peripheral expressway that was bid
earlier but had failed to impress
potential developers. Coupled with the
21 projects worth Rs 26,550 crore that
failed to get any bids in 2012 and 2013,
the figure adds up to Rs 43,918 crore.
IRB Infra arm ties up `910 cr
for NHAI project
IRB Infrastructure Developers
said its wholly-owned subsidiary
Solapur Yedeshi Tollway has tied
up Rs 910 crore for the concession
agreement (project) it had signed
with the National Highways Authority
of India. The total cost of the project
is Rs 1,492 crore.
The viability gap funding from
It’s not only the inability to attract
bidders for big ticket projects that is
giving sleepless nights to ministry
officials. As on June 2014, a total of
49 projects worth Rs 53,993 crore
are stuck or running way behind
schedule, because of reasons
including incapacity of developers
to ramp up equity for projects, delay
in land acquisition and failure to get
environment and forest clearances.
In the last three years, 28 projects
worth Rs 30,300 crore have been
terminated ei ther because of
concessionaires developing cold feet
as they did not find the project viable
any longer or the NHAI failing to get
land and other regulatory clearances
on time.
the NHAI is Rs 189 crore and the
company’s equity contribution is Rs
393 crore, said IRB. A consortium of
lenders with IDBI Bank Ltd as the lead
institution, India Infrastructure Finance
Company, Canara Bank, Union Bank
of India, Corporation Bank and Indian
Overseas Bank have financed the
project.
India, Japan sign MoU to make
Varanasi ‘smart city’
Ril returns Sez land
to Haryana govt
Reliance Industries Ltd (Ril) has
returned 1,383 acres of land to the
Haryana government, which it had
purchased for development of a
special economic zone (Sez). The
Sez was being set up by Reliance
Haryana Sez Ltd, a joint venture
between Reliance Ventures Ltd,
a wholly-owned subsidiary of Ril,
and the Haryana State Industrial
Infrastructure Development
Corporation (HSIIDC).
Ril said that since the concessions
offered to an Sez project, such as
minimum alternate tax and dividend
distribution tax, have now been
withdrawn, this has made such
projects unviable. The said Sez
was proposed to set up a model
economic township and other
infrastructure facilities where several
global firms could come and set up
shop, said Ril.
It added that the model township
will continue to be developed on the
directly purchased land based on
the current concessions available
for such a project. Ril had entered
into a joint venture with HSIIDC
in 2006 to set up a multi-product
Sez in Haryana and the land was
transferred to the JV in 2007.
Later, the project was approved
in 2010 and work began. However,
in 2011, the Indian government
withdrew the concessions available
to Sezs when Ril decided to walk out
of the project. HSIIDC has also exited
the JV, said Ril.
India pledges $100 m for
Chabahar port
India has earmarked $100 million
for upgradation of Chabahar port in
Iran to improve trade with Afghanistan
and other Central Asian countries,
The port connects Central Asia with
South Asia.
The money has been pledged
by the Indian government, which is
waiting for the technical committee
to address some legal issues. While
Afghanistan is allowed to export to
India through Pakistan, India is not
allowed to export to Afghanistan
through Pakistan. Because of the
problems related to ports in Pakistan,
India and Afghanistan decided to
use the Chabahar port for import and
export of goods.
“So we worked with the Indian
government and all the three parties
agreed that the Chabahar port will be
upgraded and the two countries (India
and Afghanistan) can operate and also
do business with Iran,” said Shaida
Mohammad Abdali, ambassador of
Afghanistan to India. Chabahar port
will provide India an alternative route
for trade to Afghanistan.
PM Narendra Modi’s visit to
Japan began on a significant note,
with an agreement being signed to
develop his constituency, Varanasi,
as a ‘smart city’ in cooperation with
Kyoto. Kyoto, Japan’s ‘smart city’, is
known for its confluence of heritage
and modernity.
The signing of the Partner City
Affiliation MoU (memorandum of
understanding), which marks the
launch of the smart heritage city
programme between the two nations,
was overseen by Modi and his
Japanese counterpart Shinzo Abe,
who came to Kyoto from Tokyo to
meet Modi. The pact was signed by
Indian Ambassador to Japan Deepa
Wadhwa and Mayor of Kyoto Daisaku
Kadokawa soon after Modi’s arrival
for his two-day first leg of the visit.
The MoU provides for cooperation
in heritage conservation, city
modernization and cooperation in the
fields of art, culture and academics,
said Syed Akbaruddin, spokesman
for the External Affairs Ministry. The
pact is in line with Modi’s vision of
building 100 smart cities across
India.
Abdali also said that everything is in
place from Afghan side to sign a pact
with steel maker Ssil-led consortium for
the proposed investments in setting up
a steel factory among others there.
After winning bids for three iron
ore mines at Hajigak in Afghanistan
in 2011, a consortium of seven Indian
steel makers led by Sail had proposed
$10.8 billion investment in Afghanistan
to set up a 6.2 mtpa steel plant in two
equal phases along with an 800 mw
power plant, besides creating the
required infrastructure.
7. in person September 08-14, 2014 5
‘Red mud, fly ash boost
ancillary industries’
KONE named as one of the
most innovative companies
by Forbes
“We are working with a large numbers of cement companies where red
mud can help them in controlling their SO2 emission level as well as
replacement of laterite. Some companies have already started using red
mud in bulk quantity ensuring optimum utilization of natural resources,”
says Dr Mukesh Kumar, Group Head-Technology, Sesa Sterlite Ltd
in an interview with Paresh Parmar
What measures has Vedanta
undertaken to manage red mud
residue and fly ash?
We are the first company across
the globe to set up a fully automatic
Red Mud Powder Plant and today
we don’t p0ump any Red Mud
Slurry in the Red Mud pond. We
are working with a large numbers of
cement industries where red mud
can help them in controlling their SO2
emission level as well as replacement
of laterite.
Some companies have already
started using red mud in bulk quantity
and this way we are ensuring optimum
utilization of natural resources.
Simultaneously, we are working on
numbers of projects like recovery of
iron from red mud, titanium recovery,
alumina recovery, etc.
On the fly ash front, although we
are supporting large numbers of
small scale industries for making fly
ash bricks and fly ash construction
products but our ultimate goal is
to use fly ash for the production
of valuable products like silica,
aluminium or alumina as we feel fly
ash is not a waste, it is one of our
valuable resource.
What are the various measures
undertaken for achieving and
improving process efficiencies at
your plant?
By installing Red Mud Filtration
Plant, we could reduce our Caustic
Soda Consumption by approximately
15 per cent. By upgrading our various
systems and installing energy saving
systems, we could minimize our
energy consumption by more than
8-10 per cent. By making Alumina
refinery as Zero Discharge refinery, we
could reduce our water consumption
by more than 30-35 per cent.
Similarly, we have developed
technologies for recover y of
Vanadium and thus helping in import
substitution. On the alumina front
also, we have developed system to
utilize low grade ores like laterite for
alumina production and thus are in a
position to ensure optimum utilization
of natural resources.
What message do you have for the
industry and authorities?
Aluminium is a truly a green metal
and only replacement to wood.
Aluminium is the only metal which
can be recycled infinite time without
any loss. The energy consumed in
recycling is just 5 per cent of the
energy required in primary production
of aluminium.
Thus, any increase in aluminium
production is creation of an energy
bank for the future. Waste from
alumina refinery or aluminium smelter
like red mud and fly ash helps in
developing ancillary industries and
save top soil by stopping use of soil
bricks.
There is a need of removing myths
being spread about bauxite mining
and aluminium industry which can be
achieved by having direct interaction
between society, NGO, government
and industries.
Most of the countries are utilizing
their natural resources for bringing
socio-economic development, but
in India we could not accelerate the
same in any of the eastern states
which are mineral rich. Only industry
may find it difficult to address the
issue and hence support from all,
which means, society, government,
NGOs, environmentalists, etc. It is
the need of the hour to unlock the
potential of Indian mineral sector and
particularly aluminium.
for recoveries of valuable products
from waste, minimizing greenhouse
gas emissions, and minimizing
specific energy consumptions. We
have taken up numbers of initiatives
in these directions by developing
innovative approach in house as
well as with the support of external
agencies of national and international
repute.
Your outlook on the industry in
India and globally.
The aluminium industry has faced
a tough time in the past five years due
to economic slowdown, increased raw
material cost, reduction in demand,
continuous drop in LME and above
all mining issues raised in various
countries, particularly in India.
Kone has been ranked 42nd
out of the top 100 most innovative
companies in the world by the well-known
business magazine Forbes.
Out of all European companies
listed this year, Know was ranked an
impressive sixth. It is the only elevator
and escalator company featured on
Forbes' list.
I t 's a great honour to be
recognized among the world's most
innovative companies for a fourth
consecutive year, says Henrik
Ehrnrooth, President CEO of
Kone Corporation. Innovation and
technological advancement have
been at the core of our company
for decades, and will continue to be
moving forward.
Kone's history as an industry
forerunner is well documented. In
1996, it was the first company in
the industry to introduce machine-room-
less elevators. The company’s
latest groundbreaking solution is
its new high-rise elevator hoisting
technology, Kone UltraRope (TM),
enabling future elevator travel heights
of one kilometer -- twice the distance
currently feasible.
Last May, the company announced
that the Kone UltraRope technology
would be used in Saudi Arabia's
Kingdom Tower building, expected
to be the world's tallest building with
a height rising over 1 kilometer once
completed.
Forbes magazine's ranking
is based on a metric called the
‘Innovation Premium’. One of the
developers of the metric is Harvard
Business School Professor, Clayton
Christensen.
Kone’s production unit in Chennai
produces elevators for the Indian
market as well as for Bangladesh,
Nepal and Sri Lanka. The production
unit also manufactures components
for modernization projects in other
Asian-Pacific markets such as
Australia, Korea, Singapore and
Malaysia.
In the past few months, things
have started improving and demand
is picking up. We still feel that demand
in India may continue to grow in
double digit, that is, between 10-12
per cent and globally 6-7 per cent
CAGR will be maintained.
India with more than 3.3 billion
tons of bauxite reserves and more
than 250 billion tons of coal reserves
is an ideal location for setting up
new aluminium-based industries.
As per the Aluminium Mission Plan
document released by the Ministry of
Mines, the demand for aluminium may
exceed 10 million tons per annum in
the next one decade against the
present production of approximately
only 1.7 million tons. Hence, there
is a need to bring more focus to tap
the potential of aluminium industry
in India which alone can generate
millions of jobs.
Red mud filtration
Flyash Bricks
Simi lar project s are being
undertaken on aluminium smelter
for recoveries of aluminium from
waste, minimizing fluoride emission,
utilization of Spent Pot Lining, etc.
Sesa Sterlite is committed for a
sustainable development and shall
not leave any stone unturned to make
its alumina and aluminium operation
as amongst the best in the world in
terms of environmental performance,
operational efficiencies and above all
safety and governance.
Your comment on RD measures
and technological upgradation
plans.
Besides safety and governance,
innovation technology are the
prime focus areas for a l l our
operations. Our vision is sustainable
development through minimization
of wastes, optimum utilization of
natural resources by employing
environmental friendly technologies
8. September 08-14, 2014 6
NHAI to put GVK’s MP
project for rebidding
After burning its hand with GVK
Transportation, the National Highways
Authority of India (NHAI) will soon
put the Shivpuri-Dewas road project
in Madhya Pradesh for rebidding.
The project, first awarded to GVK
Transportation in January 2012, was
terminated by the NHAI due to the
company’s failure to achieve financial
closure for the project.
The project value, Rs 2,815 crore at
that time, would now be Rs 4,000 crore
owing to escalation in input costs, said
a senior NHAI official. Even before the
NHAI terminated the contract, GVK
had walked out of the project, citing
delays in getting various clearances.
Bids would be invited again on a
build-operate-transfer (BoT) mode,
for four-laning the 333-km section. The
NHAI is hopeful there would be good
response for the rebidding, because
the stretch has good traffic, which
means enhanced revenue potential
for private players.
Under BoT, a developer builds a
project and operates it for a specific
time period to recover its investment
and earn a profit before transferring
it to the government at the end of
concession period, usually 20 or 30
years.
According to people close to
the development, the company
has renewed its bank guarantee for
another year and a mutual decision
between the company and the NHAI
was expected to be finalized soon.
A senior official in the NHAI said the
authority was forced to issue the two
notices since it could not proceed
with development of the expressway
project, which is part of NH-3 in
Madhya Pradesh.
In a separate notice on debarment,
the NHAI had said earlier this year that
both the special purpose vehicle, GVK
Shivpuri-Dewas Expressway Pvt Ltd,
and GVK Transportation should furnish
their replies on why they should not be
debarred from executing other NHAI
projects for a period of two years.
PROJECTS UPDATE
China is keen to invest in the
Indian railway sector, which is in
dire need of modernization, a top
Chinese diplomat said recently.
“It (Indian Railways) is too old
and renovation is badly needed.
China is seeking entry of its firms in
developing high-speed trains,” said
Liu Youfa, Chinese Consular General
in Mumbai.
“We h a v e a c c u m u l a t e d
construction capability. We also have
the capacity to finance (projects).
Eventually, Chinese companies
would participate in bullet trains
(project) as well,” Youfa informed.
The remarks assume significance
as it comes a day after Japan
expressed its willingness in providing
India financial, technical and
operational support to introduce
bullet trains, a project that PM Modi
has been actively pursuing.
“China takes all the credit (for
trade surplus). But 70 per cent of
China’s exports are controlled by FDI
owners. China is trying to address
the issue by encouraging two-way
investments and joint production
ventures,” he said.
China will set up two industrial
parks in India -- one at Pune and
another near Ahmedabad, in an
area of about 6 sq km and 10 sq km,
respectively.
The Ahmedabad park would
focus on power transmission and
generation equipment manufacturing,
while Pune park, to be completed in
three stages, on automobiles and
ancillaries and witness an investment
of $500 million, he said.
Hy’bad Metro cost run-up
estimated at `3,000 cr
The Hyderabad Metro rail is
“estimated to face a cost escalation
of Rs 2,500-3,000 crore”, mainly on
account of rising costs of borrowing
for the initially estimated Rs 14,132-
crore project.
According to LT Hyderabad
Metro Rail Ltd Chief Executive
Managing Director VB Gadgil, “high
interest rate on the loan amount is the
single largest element” contributing
to the cost escalation for the 72-km
long elevated project.
LT, the concessionaire for the
project, however, is working out all
options to minimize the impact of
rising costs, including a proposed
arrangement for swapping of debt
for low-cost funds and also external
commercial borrowings (ECBs), said
Gadgil.
LT indicated it was in advanced
stage of talks with lenders for
swapping debt worth Rs 1,000
crore.
The project developer so far
has spent around Rs 5,000 crore,
including Rs 1,400-1,500 crore
through equity infusion and Rs 3,500
crore, which came as bank loans.
LT is expected to infuse further
equity in the project.
The project is expected t o
generate 50 per cent of the revenues
through passenger fare, 45 per cent
from transit-oriented real estate
development and the rest from
leasing the stat ion space for
advertisements.
Meanwhile, Hyderabad Metro
Rail Ltd Managing Director NVS
Reddy said the ongoing test run
involving seven trains, supplied by
the Hyundai-Rotem venture of South
Korea, across the 8-km stretch was
expected to be completed by January
2015.
Japan to build India’s bullet trains
with funds, technology
With Japan committing to fund
bullet trains, the dream of running
high-speed trains on Indian tracks
is now a step closer. PM Narendra
Modi’s dream project got a big push
after Japan expressed readiness
to provide financial, technical and
operational support to introduce bullet
trains in India in a joint statement.
The first high-speed train is
expected to run between Ahmedabad
Haldia-Allahabad NW-1 to get
$50 m WB boost
The Haldia-Allahabad riverine trade
route will receive a $50 million boost
and technical support from the World
Bank to build requisite infrastructure
and turn it into national waterways-1
for yearlong navigation.
“The Wor ld Bank indicated
i t s readines s to suppor t the
programmatic approach with an
initial loan assistance of $50 million,
including technical assistance for the
first phase of the project,” said the
and Mumbai at an estimated cost of
around Rs 60,000-70,000 crore.
As Japan is a pioneer in running
superfast trains, the agreement is
expected to help Modi achieve his
dream of a bullet train for India running
at a maximum of 300 km per hour.
“Lauding PM Modi ’s vision
for development of world-class
infrastructure in India, including
high-speed railway system, PM Abe
Indian Waterways Authority of India
(IWAI) member ( finance) and Project
Director Pravir Pandey.
He said the exact f inancial
support from the World Bank could
only be known once the detailed
project report and environmental
impact studies were complete for
development of the NW-1.
“The current Rs 4,700 crore project
cost is just an estimate for developing
the 1,620 km NW-1 stretch from
EoI from China to invest
in Indian Railways
expressed his hope that India could
introduce Shinkansen system for the
Ahmedabad-Mumbai route,” said the
statement.
Railways officials associated with
the ambitious project were enthused
at the developments. “This is a very
positive statement. Japan agreed
to provide financial, technical and
operation support,” said a senior
official.
Haldia to Allahabad. Investment
details will get greater clarity after
related reports come which are
expected in the next six months,”
said Pandey.
Explaining the need for development
of the waterway, Pandey said it would
help in making the route navigable
for the entire year against only for six
months and increase cargo handling
capacity of vessels to 1,200-1,500
Dead Weight Tonnage (DWT).
9. September 08-14, 2014 7
REAL ESTATE
Positive move for housing and office market
The guidelines issued
by the Sebi signaled
a positive move for
India’s capital markets
as a whole, and its realty
sector in particular
T h e C e n t r a l g o v e r nme n t
presented a forward looking and
progressive Union Budget in July,
which managed to touch upon all
topical issues of reviving economic
growth, attracting investments,
churning out industrial production,
promoting urban development, and
creating infrastructure.
The Budget struck a fine balance
between f iscal prudence and
populism, and managed to provide
the government’s thought process
on contentious issues such as
retrospective taxation and fuel/food
subsidies.The real impact on the
economy, however, will be upon
investing all the funds allocated
in the Budget through project
implementations.
Clear indicator
Meanwhile, the Central Bank’s
move of keeping base rates
unchanged in its latest policy review
was widely expected as consumer
price inflation remained a concern,
and the impact of the Budget was
yet to be felt across sectors.
Any reduction in base rates in
coming months will be a positive
indicator for the sector, spurring
housing demand and construction
activity across the country. Yet
another positive policy initiative saw
the government clearing up to 100
per cent FDI in railway infrastructure
segments such as electrification,
signaling, high speed and suburban
corridors; while permitting up to
49 per cent in infrastructure and
defense.
One of the most impor tant
announcements for the real estate
sector was that the Securities
Exchange Board of India’s (Sebi’s)
issuing the final guidelines for
Infrastructure Investment Trusts and
Real Estate Investment Trusts (Reits)
in India. This signaled a positive
move for India’s capital markets
as a whole, and its realty sector in
particular.
Office space update
Commercial leasing act ivi t y
picked up in July, with leased space
appreciating by about 10 per cent
over the previous month. Although
most of the demand was for small
to medium-size office spaces, a
few big ticket transactions were
observed in Bengaluru —primarily
in IT/ITeS, manufacturing, automotive
and telecommunication segments.
Bengaluru also remained the largest
contributor to office space demand
among leading cities, followed by
Pune and Chennai, representing
about 84 per cent of the total space
transacted during this month.
Occupier interest remained strong
in micro-markets such as the Outer
Ring Road (ORR) and Whitefield in
Bengaluru; IT corridor in Hyderabad;
Kharadi and Baner in Pune; and
Guindy and Mount Poonnamalle
Road in Chennai, with demand
mostly driven by IT/ITeS firms for
their expansion and consolidation
needs.
Sez developments in Gurgaon,
Bengaluru and Chennai al s o
witnessed healthy take-up during the
month. Going forward, a few large-size
transactions are expected to
reach completion in prominent tech
parks along the ORR in Bengaluru.
Rental values remained largely
stable across all micro-markets of
leading cities. Locations such as
ORR, Hyderabad’s IT corridor and
Chennai CBD, however, are likely
to undergo rental appreciation in
the near term, owing to sustained
occupier demand.
Housing market update
During the month of July, housing
sales remained muted and new
supply saw a decline across leading
cities. A large majority of new projects
were launched in the mid-segment,
concentrated in micro-markets
such as the Old Mahabalipuram
Road/Grand Southern Trunk Road,
Ambattur and Porur in Chennai;
Marathahalli ORR, Old Madras Road,
Whitefield, Hebbel, Thanisandra Main
Road and Gottigere in Bengaluru.
In contrast, residential real estate
activity remained subdued in Delhi
NCR, Mumbai, Hyderabad and
Kolkata during July. Meanwhile, Pune
is likely to attract significant supply
addition as part of the proposed
township developments by prominent
developers in the peripheral locations
of the city.
Housing prices remained
largely stable during July.
Owing to subdued demand levels,
premium residential locations—such
as Chanakyapuri in Delhi and Golf
Course Road in Gurgaon—saw a
slight price correction. Conversely,
strong demand coupled with limited
availability led to a price appreciation
in central Chennai.
Organized retail space
High streets across India’s leading
cities witnessed healthy demand
for retail space, while prominent
shopping centres saw limited activity
during July 2014. Demand was largely
led by retailers from the FB, fashion
apparel and accessories segments.
Global retailers such as Michael Kors
and Giant forayed into Bengaluru,
while Spa Ceylon launched its first
India outlet in Mumbai.
Mumbai also witnessed space
take-ups from numerous FB brands
such as the Social, Treesome Café,
Gyros, Café Nemo and Aqaba across
various high streets. In addition,
Dunkin Donuts, Pizza Express, Café
Coffee Day, Joss, and Venky’s,
among others, expanded their
operations across other leading
cities during the month. Starbucks
opened its first store in Chennai,
followed by Hyderabad, taking the
total number of its outlets to more
than 50 in the country.
Rental values continued to remain
stable across all micro-markets.
Furthermore, the Department of
Industrial Policy Promotion (Dipp)
is considering scrapping the 30 per
cent domestic sourcing clause for
FDI in single-brand retail, which is
likely to increase foreign investment
inf lows and ease the ent ry of
foreign brands in categories such
as clothing, electronics and luxury
goods. Enforcing the sourcing clause
is largely seen as a major deterrent
by premium and luxury retailers
seeking to enter the India market.
Anshuman
Magazine
CMD, CBRE South Asia
Pvt Ltd
10. aelr aeestt September 08-14, 2014 8
India’s top destinations
for manufacturers
The country’s four big
cities, each with its
unique advantages
for manufacturers,
continue to attract vast
investment from both
Indian and foreign
companies
difficult for manufacturing players
to set up their plants in Mumbai.
The Maharashtra Industrial Policy
announced in Q2, 2013 has proposed
to increase the permissible FSI at its
industrial parks from 1.0 to 1.5 to help
reduce the high cost co-efficient. This
is currently awaiting consensus from
the state government.
According to *DIPP data,
Maharashtra saw industrial investment
of INR 40,658 crore from 2010 up to
October 2013 in the form of *IEM
implemented, which is nearly 21 per
cent of the country’s share in this
period.
(*DIPP = Department of Industrial
Policy and Promotion, Government
of India
*IEM = Industrial Entrepreneur
Memorandum.)
Pune
Over the years Pune has grown
beyond its proximity to Mumbai -- a
factor which, in addition to other
inherent advantages that Pune holds
for manufacturers, has attracted
significant industrial investments.
The vast consumer base supplied
by the city’s population of 6 million,
availability of skilled manpower
from a huge base of educational
institutions and availability of quality
infrastructure as well as land make
Pune a major industrial destination
in the country.
Apart from being an established
IT/ITeS destination, Pune has also
evolved into a major manufacturing
hub, especially with respect to
the automobiles and engineering
sector. Pune’s industrial pockets
are primarily located in Chakan,
Talegaon, Ranjangaon, Nagar Road
and Khed.
Some of major automobile
industries in Pune include Mercedes
Benz, Volkswagen, Hyundai, General
Motors, Bajaj, Toyota and JCB. These
industries were followed by auto
ancillary industries having presence
across the state of Maharashtra.
Addi t ional ly, FMCG and whi t e
Mumbai
Mumbai accounts for a little more
than 6 per cent of India’s economy,
contributing 10 per cent of the
country’s factory employment, 30
per cent of its income tax collections,
60 per cent of customs duty and
20 per cent of central excise duty
collections, and 40 per cent of foreign
trade in corporate taxes to the Indian
economy.
With a population of more than 20
million, Mumbai also happens to be
one of the largest consumer markets
in the country. Its connectivity to other
major consumption markets like
Pune, Nashik, Surat and Ahmedabad
makes it all the more interesting
as a destination for manufacturing
operations.
Industrial locations in Mumbai are
driven by 5 major corridors: NH–8
to Surat; NH–3 to Agra and Delhi;
NH–222 to Andhra Pradesh; NH–4
to Pune, Bengaluru and Chennai,
and NH-17 to Goa, Kerala and parts
of Karnataka.
Most of the industrial representation
in Mumbai is accounted for by old
MIDC-developed parks. In 2013,
the Malaysian oil giant Petronas
Lubricants signed a land lease
agreement with MIDC for over
INR 300 crore investments into
the Addl. Patalganga MIDC, and
Idemitsu launched the first phase of
commercial production of lubricants
in Mumbai.
However, the very high land costs
in Mumbai have gradually made it
goods manufacturing units like
LG, Whirlpool, L’Oreal and ITC
have contributed massively towards
Pune’s establishment as a major
industrial location.
The availability of industrial land
in MIDC properties as well as private
industrial parks and Sezs represents
the biggest growth opportunity in
this market. ‘Khed City’, a private
industrial park and Sez spread over
4,500 hectares (located only 50 km
north of Pune) and MIDC-developed
Chakan phase-2 are two of the
harbingers of Pune’s future growth
as a major industrial destination in
the country.
Hyderabad
Hyderabad, being the joint
capital of the two newly-formed
states Telengana and Seemandhra,
cont inues to at t ract mas s i v e
investments in the manufacturing
sector. Of course, the city is an
established destination for the IT/ITeS
sector, but its manufacturing foothold
has also been growing exponentially
in select sectors like pharma and
biotech, aerospace and FMCG.
Hyderabad was one of the
pioneers in patronizing the Life
Sciences industry in India when it
became home to Genome Valley in
1999 to attract RD companies and
synergize life science companies in
Hyderabad.
Genome Valley, proposed at over
600 sq km, has seen significant
investments from national and
international pharmaceutical and
biotech companies, and hosts
companies like Novartis, Biocon,
Dr Reddy’s Laboratory, Aurobindo
Pharma, Bharat Biotech, DuPont,
Zenotech Laboratories (Daiichi),
Sanzyme, Lonza, Nektar Therapeutics,
Indian lmmunological, Biological E
and United States Pharmacopeia,
among others.
In the aerospace sector, Hyderabad
hosts the GMR Aerospace Park for
civil and defence aerospace players
over 250 acres of land near the
existing Hyderabad airport. Among
the major industrial companies there
are LFG and Sky Shop, MAS-GMR
Aerospace Engineering Company Ltd
(MGAE), CFM Aircraft Engine Support
South Asia Pvt Ltd (CFMAESSA) and
Tata-Augusta–Westland.
Procter Gamble, one of the
largest FMCG companies in the
world, has acquired around 170
acres of land in Mahbubnagar, 36
km from Hyderabad, making it one
of its biggest manufacturing plants
in Asia with an investment of INR
900 crore.
At this time, more and more
industries are considering Andhra
Pradesh for low land costs and
incentives offered by the government
there. According to DIPP data, the
undivided state of Andhra Pradesh
saw industrial investments to the
tune of INR 20,871 crore in the period
from 2010 till October 2013 in the
form of IEM implemented -- projects
completed on the ground -- which
is nearly 11 per cent of the country’s
share in this period.
Delhi NCR
Delhi NCR, India’s largest urban
conurbation with representation of four
different states and a population of
nearly 50 million as pegged in 2011, is
among the largest consumer markets
in the country.
This also makes i t one of
India’s most attractive investment
destinations. Excellent city connectivity
to urban bases by MRTS and regional
connectivity via a comprehensive
network of highways ensure availability
of labour force and efficient distribution
of raw materials and finished goods in
the NCR region.
The 3,658 acres of industrial area in
Manesar have seen huge investments
from manufacturers. In fact, one of the
most developed industrial corridors in
NCR is along NH-8, stretching from
Manesar in Haryana to Neemrana
in Rajasthan. The major industrial
presence in this industrial corridor
includes:
Ma n e s a r : Ma r u t i , Ho n d a
Motorcycles, Mitsubishi, Suzuki
Powertrain, Timex India.
Dharuhera: Logwell Forge, Amul
Sagar Plant, Copper Standards,
Amtek Auto.
Bawal: Becton Dickinson, Reliance
Infocom, Westend Fabrics.
Neemrana: Parle Biscuits, Liberty
Whitewear, Hero Honda, Havells
India.
Mega and large-scale investments
are proposed in Delhi NCR with
six industrial investment regions
earmarked under the Delhi–Mumbai
Industrial Corridor (DMIC):
Haryana: Node 3: Faridabad-
Palwal Industrial Area; Node 5: Kundli-
Sonepat Investment Region; Node 6:
Manesar-Bawal Investment Region.
Uttar Pradesh: Node 1: Dadri-
Noida-Ghaziabad Investment Region;
Node 2: Meerut-Muzaffarnagar
Industrial Area.
Rajasthan: Node 7: Khushkhera-
Bhiwadi -Neemrana Investment
Region.
Nirav
Kothary
Head, Industrial
Services, JLL India
Township lifestyle for utmost comfort
An integrated township
is a haven for those
people who earnestly
desire to reside in a
peaceful and quiet
community
city life and are going to enjoy life in
brand news ways.
Gratifying lifestyle
An integrated township is a haven
for those people who earnestly desire
to reside in a peaceful and quiet
community. Integrated townships
have zero crime rates, a significantly
reduced density of population, quiet
Would you like to live in a township?
Are you sick and tired of the anxiety,
crime, pollution and other urban-related
horrors and wish to adopt a
more peaceful lifestyle surrounded by
good friends and neighbours and the
fundamental community values you
grew up with? Then the integrated
township life is definitely for you.
Shifting to an integrated township
is always an exciting experience. After
all, you are opening up an entirely new
way of living for your family. What can
be more comforting that the prospect
of raising your children and caring
for your elders in an environment of
peace, serenity, safety and ultimate
convenience?
Whatever your motives are for
shifting to a township, you and your
family are going to bid farewell to the
cramped, polluted and stressful inner
Mumbai and Pune now prefer to live
in this sort of environment. In fact, the
lifestyle value that integrated townships
offer extends from the youngest to the
oldest members in a family.
Superior, safer and more engaging
facilities for children make them
the ideal place to grow up in. The
availability of transport, shopping and
neighbourhoods, very low and highly
organized traffic and the lowest
possible pollution levels. Living in
a township makes for a gratifying
lifestyle, because all the goods and
services that you and your family need
to live comfortably are immediately
available.
More and more families in cities like
conveniences within easy reach make
them an answered prayer for working
family members. And the serenity
of green open spaces, facilities for
community activities, security and
healthcare make integrated townships
the most desi rable ret i rement
destinations.
Enduring option
Importantly, integrated townships
completely negate the possibility of
unanticipated constructions in open
areas -- a major pain point for people
who bought homes with a view in
other areas only to see these views
obscured by a new project later on.
These many factors combine to
make homes in integrated townships
the most enduring residential options,
and investment instruments that
maintain incrementally grow their value
over their entire lifecycle.
Arvind Jain
Managing Director,
Pride Group
11. EQUIPMENT September 08-14, 2014 9
bauma Conexpo Africa in
three-year cycle post-2015
the three-year cycle for the markets
of Africa.
Elaine Crewe, CEO of organizers
BC Expo South Africa, explained, “We
made this strategic decision based
on the many discussions we have
held since the extremely successful
premiere. The three-year cycle clearly
positions bauma Conexpo Africa as
the leading trade fair in Africa for
the global construction and mining
industry.”
Lawrence Peters, Chairman of
Conmesa (the Construction and
Mining Equipment Suppl ier s ’
Association), is also pleased by the
news. “As a local partner, we are
pleased that the discussions were
so productive and that the organizers
of bauma Conexpo Africa decided
to change the frequency of future
events. The three-year interval suits
the region because it depicts the
market more accurately. It also gives
local and international companies
additional time to ensure that they are
sufficiently prepared for the intense
business activity at this event.”
Africa’s largest trade fair for the
construction machinery and mining
industry celebrated its premiere in
2013. The next bauma Conexpo
Africa would be organised at the
Johannesburg Expo Centre (JEC)
from September 15 to 18, 2015.
Following next year’s exhibition,
the event will move to a three-year
cycle, meaning the next fair will
then be held in 2018. This decision
was made after close consultation
with local and international industry
representatives who recommended
Volvo’s EC480E crawler
excavator for quarry applications
Volvo Construction Equipment’s
EC480E crawler excavator is Tier 4
Final/Stage IV-compliant and combines
efficiency, productivity and durability
for maximum profitability in quarry and
mass excavation applications.
According to the company, the
heavy-duty Volvo EC480E crawler
excavator lowers operating costs
through reduced fuel consumption and
simple maintenance requirements.
Powered by Tier 4 Final/Stage
IV-compliant Volvo D13 engine, the
EC480E delivers high digging and
breakout forces alongside reduced
emissions and improved fuel
efficiency.
The full electro-hydraulics are
perfectly matched to the engine and
controlled by an advanced system
which provides on-demand flow and
reduces power losses within the
circuit.
“Volvo ECO mode contributes to
the machine’s total improved efficiency
— without any loss of performance
in most operating conditions. As
well as improving fuel efficiency, this
increases controllability for more
precise performance,” said the
company statement.
“The integrated work mode system
offers the operator a choice of work
modes according to the task at
hand — including I (Idle), F (Fine),
G (General) and H (Heavy) — for
optimum efficiency and machine
performance.
“When the controls have been
inactive for a pre-set amount of time,
the excavator can be programmed to
automatically reduce engine speed or
even shut down to further reduce fuel
consumption and noise. Operators
can keep track of both current and
average fuel consumption via a simple
gauge in the cab.”
The Vol vo EC480E crawler
excavator has been designed not
only for ease of operation but also
for simple maintenance. This ensures
maximum uptime and minimum
expenditure on parts and servicing.
T h e s t r o n g t h r e e - p i e c e
undercarriage and high tensile steel
X-shaped frame have been reinforced
to ensure a long service life, while
additional superstructure cover plates
prevent damage to the underside of
the machine from rock and debris.
Sany equipment for
building Algeria’s national
highway
Eight sets of Sany batching
plants have been set up and started
supplying readymade concrete to
Algeria’s national highway project.
The construction starts from the
Mediterranean Sea in the north of the
country and runs through the Sahara
Desert, and ends in the hinterland of
central Africa. The highway carries
strategic significance to the economic
development and national security of
Algeria.
The Chiffa section of the project is
contracted to a Chinese construction
company. The section is 53 km long
and is valued at over $1 billion, which
includes 3 km of tunnel and 17 km of
bridges. The beginning section of the
project and of a controlling nature, the
section features the most complicated
geographic conditions and is the most
difficult to build.
Within three months, all eight
large scale batching plants by Sany
were put to work, which helped in the
scheduling of project.
Liebherr MK 88 crane
delivered to BKL
BaukranLogistik
Terex MPS launches MJ47
jaw crusher module
Force Australia orders 40
Skyjack vertical masts
The Australia-based and one of the
leading aerial equipment providers,
Force Australia, has ordered 40 vertical
mast lifts from Skyjack.
The lifts will be put to work
immediately on the construction of
the Royal Adelaide Hospital (RAH).
The build is the largest infrastructure
project ever to be undertaken in South
Australia.
“The equipment is reliable, easy
to use, and has great customer
acceptance,” explained John Glover,
national service manager at Force
Australia, one of the largest suppliers of
access equipment in the Antipodes.
“Our customers look to us to
provide them with equipment as and
when they need it. More than that,
they want solid, proven machines
that deliver consistently, so we’re
continuing to grow our fleet with
exactly that kind of equipment,” he
added.
RAH is being built for the South
Australian state government, and will
be run by the SA Health Partnership
Consortium. Force Australia says
that the vertical mast lifts’ compact
footprints and high manoeuvrability
make them well suited to the busy
project, offering subcontractors and
other workers access to hard-to-reach
areas.
Force Australia is to take delivery
of an assortment of SJ 12 and SJ 16
models as part of the deal. The former
has a work height of 5.48 m and a
load capacity of 782 kg. The latter,
meanwhile, has a work height of 6.68
m, and boasts a capacity of 966kg.
Both vertical mast lifts have a
traversing platform of 0.41 m for
greater access at height, and are able
to work either above or over obstacles.
The Skyjack lifts can be folded down
to just 0.45 m.
A brand new Liebherr MK 88
mobile construction crane was
recently delivered to the new site of
BKL BaukranLogistik GmbH.
Site Manager Rainer Speich took
delivery of the new taxi crane from
Regional Sales Manager for Liebherr
Mobile Construction Cranes Christian
Schultze.
With the MK 88, Liebherr can
now supply a compact four-axle
model which provides massive load
capacities and radius whilst being
compact in size. With horizontal jib,
the load capacity at the tip with a
radius of 45.0 m is 1,850 kg. With its
extended load curve and additional
ballast, the MK 88 Plus can hoist up
to 2,200 kg at its tip.
“The MK 88 mobile construction
crane enables us to provide our
customer with outstanding features
Terex Mineral Processing Systems
(MPS) has unveiled its MJ47 jaw
crusher module, which is the largest
of its type to be released by the
company to date.
The primary crusher module is
designed for large quarries and
contractors that require a stationary
design without the complexity of a
conventional stick-built plant.
for many applications, particularly
where handling speed and a large
radius together with constricted
conditions is required,” said Site
Manager Rainer Speich, explaining
his company’s investment decision.
“Moreover, the Plus option with
additional ballast increases its load
capacity by around 10 per cent,
enabling loads of up to 3,000 kg to
be hoisted even with a radius of 35
metres.”
BKL BaukranLogistik opened its
fourth site in June 2014. It means
that the company now also has a
presence in Ingolstadt in addition to
its Munich, Frankfurt and Hanover
sites. Currently BKL customers
can select from six new Liebherr
mobile cranes, an MK 88 Plus mobile
construction crane with extended load
curve and the company’s own trucks.
MJ47 module features a robust
0.91m x 1.22m Terex Jaques ST47
jaw crusher. Other features include
Terex’s proprietary Simplicity 1.3m
x 7.3m heavy-duty, double-deck
vibrating grizzly feeder; a large-capacity
truck dump hopper; a
discharge conveyor; a heavy-duty
galvanised I-beam frame; a wrap-around
maintenance access platform;
stairs; and guard rails.
The modular product line consists
of several static and semi-static
crushing and screening plug-and-play
modules. Terex has endeavoured
to shorten setup times and ease of
operation through its simple product
designs. The modules have been
designed to fit and work together
interchangeably. All of the add-ons
can be bolted together onsite, and
require minimal wiring.
12. aelr aeestt September 08-14, 2014 10
Demand for homes in
B’luru may rise by 3 pc
Rs 580-cr deal for real estate
plan at Mumbai airport
Real estate development at
the Mumbai international airport
has taken off, with the Mumbai
International Airport Ltd (Mial) leasing
a 5.5-acre plot near the international
terminal at Sahar to Oasis Realty for
Rs 580 crore.
A hotel and office complex will
be developed at the plot. Last year,
Mial had sought bids for land parcels
of 10 acres each. Overall, Mial will
lease 200 acres for hotels, offices
and convention centres, under the
SkyCity project.
“We had called for bids for four
plots. The bids for two plots have
been finalized; we will conclude
the deals for the other two by the
year-end. We are in discussion with
developers and there is a lot of
interest,” said Sanjay Reddy, Vice
Chairman of the GVK group, which is
developing the airport. The land was
being used for airport works.
The demand in the residential
space in Bengaluru is expected to
rise from 57,366 units in 2013 to
59,300 units in 2014, signifying an
increase of 3 per cent, according
to real estate consultancy Knight
Frank India.
The election results, revival of
manufacturing activity, higher salary
growth of IT/ITeS employees and
various sops announced in the
Reddy said the deposit amount
of Rs 350 crore would be used
as project finance for airport
modernization, while Rs 230 crore
was the lease rent. The two land
parcels awarded have been sub-leased
for 23 years, extendable for
an additional 30 years. Overall, about
Rs 1,000 crore collected from real
estate development will be used as
project finance.
Union Budget of 2014 seem to have
induced a positive change in home
buyer sentiment.
The conversion time between a
sales inquiry and actual sale has
shortened considerably, indicating
a revival in demand. While sales
volume has improved somewhat in
H1 2014, we expect it to strengthen
even further in H2 2014, says KF in
its report.
IDFC plans to raise `1,000 cr
for commercial real estate fund
Multi-asset-class investment fund
IDFC Alternatives is planning to raise
over Rs 1,000 crore commercial real-estate
fund, said a source. The fund
manager is currently in the process
of completing valuation of its two key
assets, a Pune IT Special Economic
Zone and another IT park in Noida.
The assets are estimated to be
valued at more than Rs 1,000 crore
together and IDFC Alternatives
i s pl a n n i ng t o t r a n s f e r pa r t
ownership of these two assets to
the new commercial fund as part
of the sponsor’s contribution. IDFC
Alternatives, a private-equity arm of
infrastructure finance company IDFC
Unitech to sell non-core lands
to improve cash flows
Real estate firm Unitech will sell
non-core land parcels to reduce debt
by 15-20 per cent and improve cash
flows for faster execution of ongoing
projects, said company Chairman
Ramesh Chandra.
Realty FDI players push
for tax breaks in Reits
Large FDI providers in real estate
have approached the Finance
Ministry seeking tax changes to the
current framework for Indian real
estate investment trusts (Reits). The
recently unveiled structure reduces
cash in the hands of shareholders
by almost one-fifth compared to a
listing in Singapore.
The Reits allow investors to own
shares in rent yielding real estate
assets that are listed on the bourses.
These investment trusts are touted
as being potential game changers
for the realty and infrastructure
sectors, which are facing liquidity
pressures.
DDA launches housing
2014 with 25,000 flats
The Delhi Development Authority
(DDA) launched its much- awaited
‘Housing Scheme 2014’ offering
over 25,000 flats across various
categories, amid a huge response
from the public. “The DDA Housing
Scheme 2014 is now officially open.
We are offering 25,034 flats in the
scheme, out of which 22,627 are
one-bed room apartments. Among
others are 896 flats constructed after
But the cur rent tax heav y
framework could see some of India’s
largest commercial assets owners
like Embassy Office Parks, RMZ
Offices and K Raheja Corp veering
towards a listing in Singapore.
Global pension funds, sovereign
wealth managers, and private equity
houses like Canadian Investment
Pension Plan, Qatar Investment
Authority and Blackstone are prolific
backers of Indian commercial assets.
India has the potential to list about
170 million sq ft of rent-yielding
assets through Reits, of the total 370
million sq ft of Grade A office stock
in the country.
2010, with green technology,” said
Balvinder Kumar, Vice Chairman,
DDA.
The new scheme offers flats
ranging from Rs 7 lakh to Rs 1.2
crore across categories -- EWS, LIG,
MIG, HIG, Janta flats and one-room
apartments. The scheme would be
open to applicants from September
1 and the last date to receive the
application is October 9.
Ltd, raised Rs 750 crore for its first real
estate fund, IDFC Real Estate Yield
Fund. That fund is targeting under-construction
residential projects in
Delhi, Mumbai, Chennai, Bengaluru,
Hyderabad and Pune.
IDFC Al ternat ives is one of
the largest multi-asset-class fund
managers with total corpus of Rs
14,414 crore. IDFC had set up the
realty investment business in late
2010 to acquire majority ownership
in leased and rent-generating IT
parks and Sezs located in major
office markets. The focus is on
developments with high-quality
tenants, which offer opportunity
Unitech currently has over 100
ongoing projects, totaling an area
of 38.41 million sq ft. Its net debt
stood at Rs 5,900 crore at the end
of the first quarter of this fiscal.
He also said that the cash flows of
f o r s t abl e y i e ld a nd c api t a l
appreciation.
In 2013, IDFC Al ternat i ves
acquired a stake in the first phase
of IT Sez BlueRidge at Hinjewadi
in Pune from developer Paranjape
Schemes (Construction) Ltd for Rs
250 crore. The first phase has a total
of 1.45 million sq ft leased out space,
while the entire project involves 2.6
million sq ft, including an integrated
township. In 2011, the fund acquired
a 1.36-million-sq ft fully developed IT
park jointly owned by DLF and the 3C
company in Noida for more than Rs
500 crore. The transaction was one
of the first by IDFC.
the company were affected during
last financial year due to adverse
market conditions and consequent
slowdown in sales.
Stating that Unitech has taken
a conscious strategic decision to
reduce debt exposure, he said the
company has in the recent past
undertaken sale of some land parcels
for which it has no development
plans in the foreseeable future to
bridge the cash flow gap.
In June, Unitech had sold its 40 per
cent stake each in four IT Sez projects
for over Rs 1,300 crore to Canada’s
Brookfield Asset Management. The
Unitech chairman also emphasized
on increasing the pace of delivery
of projects. During 2013-14, Unitech
posted a net profit of Rs 69.7 crore,
while income from operations stood
at Rs 2,933.3 crore.
13. September 08-14, 2014 11
INTERNATIONAL
Tenders invited for phase-2 at
Hong Kong’s Kai Tak airport
provision for pedestrian crossings,
open spaces and landscaping works
on the landscaped deck.
The work, slated to commence
in mid-2015, will be supervised by
Aecom Asia. The project, carried
out in phases, is expected to reach
completion between end of 2017 and
the first quarter of 2019.
HWH chosen to bid for news
hospital in Scotland
High Wood Health, a consortium
including Laing O’Rourke, has been
named as the preferred bidder
to build and manage a new £200
million general hospital in Dumfries,
Scotland. The consortium has Laing
O’Rourke as construction partner with
Serco providing estate management
services.
The consortium outbid Balfour
Beatty to secure the contract while
Skanska, the third bidder, had already
opted out of the process in November
last year. Mott MacDonald and
Keppie Design have been working
as the project’s technical consultants
since July 2012.
NHS Dumfries Galloway CEO
Jeff Ace said, “This is the major
milestone that we have been working
towards for months now, along with
two bidders who have produced the
final designs for the kind of facility
that we need so that our staff can
deliver the best care possible for our
patients. Construction on the facility,
commissioned for NHS Dumfries
Galloway, is scheduled to begin by
early 2015.”
New luxury residential
project for Dubai
Dubai-based developer Omniyat
and construction firm Drake Scull
International have struck a partnership
to build a new residential project at
Palm Jumeirah, Dubai. Located at
the entrance of the Palm Jumeirah,
the property dubbed one at Palm
will be jointly developed by both
the companies and managed by
Omniyat.
The luxury project will be designed
by internationally renowned architects
Soma from New York, Super Potato
from Japan and Vladimir from
Lebanon. The building T h e Ci v i l E n g i n e e r i n g apartments,
Development Department of Hong
Kong has invited tenders for phase-2
at the southern part of the former
runway in Kai Tak airport. The project
will include construction of roads
measuring about 2,300 mt in length in
total, with a vehicular underpass and
associated footpaths.
covering an area between 2,500 to
20,000 sq ft, will don finishes done
by renowned interior designers and
will be designed to offer 360-degree
views.
Executive Chairman CEO of
Omniyat, Mahdi Amjad, said, “We
believe this plot is the perfect location
to build such an iconic development
that will be a global collaboration with
inputs from Dubai, Japan, New York
and Lebanon. It will definitely stand out
on the Dubai skyline. Enabling works
on the project is scheduled to start
There will be a landscaped deck within two months.”
structure of about 1,400 mt in length
on top of a proposed dual two-lane
road, integrated with roadside noise
barriers, and with lifts and staircases.
Other aspects of the project will include
roadside noise barriers of about 1,100
mt long in total, integrated with the
landscaped deck structure and with
Louis Berger bags airport
extension contract in Jordan
Louis Berger has been awarded
a fourth contract extension worth
over $15 million for independent
engineering services at the Queen Alia
International Airport (QAIA) in Amman,
Jordan. The company will continue
to offer independent engineering
services to the rehabilitation and
expansion programme as part of this
scheme.
The new project phase will include
construction of additional passenger
terminal area spanning 46,500 sq
mt, 8 aircraft contact gates, 8 remote
boarding gates, 10 moving walkways,
15 elevators, as well as 18 escalators.
These apart, there will be 4 super fixed
link bridges that can handle either
a single wide-body aircraft or two
narrow-body aircraft simultaneously in
arrival and departure modes.
The annual passenger processing
capacity of the finished terminal
will be 9 million, while the potential
site capacity will be to process 12
million per year. Javier Gonzalez, Vice
President of global aviation practice at
Louis Berger, said, “We’re pleased to
have been part of a critical infrastructure
transformation that will allow Jordan
to achieve its growth priorities by
rehabilitating QAIA to become a more
convenient, secure and affordable
transportation hub for the region.
The project is slated for completion
by mid-2016. The company earlier
offered its services at the QAIA airport
during the construction of a new
100,000 sq mt, 14-gate passenger
terminal building and upgrades to
existing airside and landside facilities.
62-storey tallest tower
planned for Edmonton
Edmonton Arena District (EAD), a
joint venture of Katz Group and WAM
Development, has announced the
construction of Edmonton’s tallest
tower. This project is being designed,
engineered and managed entirely by
Stantec, which will also lease about
450,000 sq ft of the new building.
The 62-storey tower, measuring
746 feet in height, is touted to be one
of the tallest structures in Western
Canada. The mixed-use building,
spanning almost 1 million sq ft, will
house 26 levels of office space,
nearly 320 residential units, and
retail space.
The tower will feature a lobby
opening directly into the public plaza
while the top of the tower will feature
an iconic design element, inspired by
the personality of the Edmonton Arena
District. The building will be designed
to comply by Leed Gold specifications.
Construction is slated to begin by end
Network Rail awards
contracts for £250m
framework
KDDI to construct two
data centres in Japan
Global telecommunicat ions
provider KDDI is set to invest $270
million in two new Telehouse data
centres in Japan. The new data
centres, dubbed Telehouse Osaka
2 and Telehouse Tokyo Tama 3, will
expand global Telehouse data centre
space to 3,71,000 sq m.
Both the data centres will provide
high-density co-location services
to enable hosting of heavy load IT
infrastructure. The design of both
the facilities will comply by tier-3+
data centre standards in redundancy
and uptime. Moreover, the facilities
of 2014 with the building expected to
open by mid-2018.
will have a long-period absorption
structure which will make them less
vulnerable to earthquakes.
Telehouse Osaka 2, situated in
the centre of Osaka city, has been
designed to serve as a disaster
recovery and back-up site for the Tokyo
data centres. The five-storey Osaka 2
Telehouse Tokyo Tama 3 is located on
the existing Tama data centre campus,
30km from the Tokyo city centre
in a heavily guarded surrounding.
Telehouse Osaka 2 is slated to open
in August 2015 while Telehouse Tokyo
Tama 3 is due to open in February 2016.
Network Rai l has awarded
framework contracts to seven
contractors for delivery of building and
civil work on the Scotland and London
north-eastern routes. The contracts,
worth £250 million in total, will be
delivered as part of Network Rail’s £38
billion investment programme to build
a bigger, better railway from 2014-19.
The individual frameworks for
the London north-eastern and East
Midlands route will amount to a total
of about £150 million while work on
the Scotland route will be worth about
£100 million. Work will involve over
1,000 maintenance, renewals and
enhancements projects for earthworks,
bridges, tunnels, footbridges as well as
station buildings.
The frameworks will deliver benefits
such as enhancement in safety levels,
improvements in cost and quality
and greater productivity through
collaborative working. The frameworks
will initially run for three years, following
which if suppliers can ensure that work
has been delivered safely and within
budget, each of the contracts can be
extended by another two years plus
one further year.
14. September 08-14, 2014 12
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Posted at Mumbai Patrika Channel Sorting Office, Mumbai - 400001, on Monday
Published on Monday, September 08, 2014
Regd. No. MH/MR/South-355/2012-14
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events
EVENTS India-Sweden innovation programme
sees scope in renewable energy
The winners with Dr Christer Nygren, Professor - Innovation Malardalen University; Ludvig
Lindstrom, Country Director - India Swedish Energy Agency; and Dr Uday Salunkhe
thereby not only creating solutions
towards sustainability and saving of
costs but breaking new grounds, by
moving closer to the goal of liberating
devises from the grid, making them
self-powered.
The WeSchool team provided
a detailed roadmap for Exeger,
developing business strategies to
ensure utmost support to their respective
partner companies and adherence to
timelines, thereby developing the
best business solutions to enter the
Indian market with their product.
The winning team will be rewarded
with a fully sponsored 10-day internship
giving them an overview of corporates
in the green energy sector in Sweden.
The first runner-up team devised
strategies for FOV Biogas (provides
customized biogas solutions) and two
teams that worked with the Swedish
corporate -- Clean motion (electrical
vehicle manufacturer) and Hi Nation
(solar panels producers) bagged the
Editor : Bina Verma
Editorial Team: Dilip Phansalkar, Paresh Parmar, Remona Divekar
Business Team: Shantanu Baraskar (9820904795), Seema Kohli (9820904931)
Email: contact@konstructionreview.com, editor@mmronline.com Designer: Rajen Mistry
No part of the contents of Construction Industry Review, in abridged or unabridged form,
can be reproduced without the written permission of the Editor. CIR does not accept any
responsibility for statements and opinions expressed by the authors.
Solutions designed by WeSchool
students in collaboration with Swedish
Cleantech companies during the
India-Sweden Innovations’ Accelerator
programme
T h e ‘ B u s i n e s s S t r a t e g y
Development Competition’ under the
aegis of the India-Sweden Innovations’
Accelerator (ISIA) programme was
successfully concluded recently at
WeSchool, Mumbai.
Teams f rom WeSchool and
the Institute for Future Education,
Entrepreneurship Leadership (iFEEL)
presented future-proof business
models and strategies on renewable/
green energy that can be implemented
especially in the energy-starved rural
India.
The business ideas designed by
students’ teams were evaluated by
an external jury panel comprising
Ludvig Lindstrom, Country Director,
India, Swedish Energy Agency; Dr
Anjali Parasnis, Associate Director,
Western Regional Centre, Teri; Srikant
Illuri, Executive Director Country
Head Investment, Business Sweden;
and Dr Christer Nygren, Professor of
Innovation at Malardalen University,
Sweden.
Participants were evaluated through
a rigorous process on parameters like
originality of ideas, clarity of thoughts
on financial and marketing aspects.
The winning team of Virendra
Singh Shekhawat, Sagar Deshmukh,
Shashank Angadi and Omkar Ranade
presented a business plan for Exeger,
a Swedish company that produces
dye-sensitized solar cells.
These cells can be affixed to the
massive glass frontages of skyscrapers
for garnering and storing solar energy
which can be used by the building,
September 11-13, 2014
The Big 5 Construct India
Bombay Convention Centre, Mumbai
It will provide the ideal platform for influential architects, contractors, consultants and
engineers to share ideas about innovative construction tools and services.
Contact: DMG: Events. PO Box No 33817
Printed published by Bina Verma on behalf of Asian Industry Information Services, and printed at Amruta Print Arts, 205, Tantia Industrial Estate, J. R. Boricha Marg, Opp. Kastruba Hospital, Mahalaxmi, Mumbai 400 011
and published at 1st Floor, Feltham House, 10, J. N. Heredia Marg, Ballard Estate, Mumbai 400 001. Tel.: 022-2266 0623. Editor: Bina Verma Annual Subscription : Rs. 5,000/-
Dubai, UAE
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, 2014
19th One Full Day Workshop
The 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
jjshah123123@rediffmail.com
The Institution of Engineers (India), Mahalaxmi, Mumbai
Phones: 022-23543650/23542943
Mobile: 09820392726
November 6-8, 2014
ConMac 2014
Khanapara 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
j.i.maheshkumar@cii.in
www.conmac.in
November 13-15, 2014,
World of Concrete India 2014
HITEX 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
vivek.tyagi@interads.in
http://worldofconcreteindia.com
December 3-6, 2014
IMME 2014
Salt Lake Stadium Grounds, Salt Lake, Kolkata
The 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: j.i.maheshkumar@cii.in
December 5-7, 2014
Zak Glass Technology Expo 2014
Pragati Maidan, New Delhi
Zak 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
samrendra.kumar@zakgroup.com
www.zakgroup.com
second runner-up position.
Prof Dr Uday Salunkhe, Group
Director, WeSchool congratulated
the participating teams and said, “It
is heartening to see such innovative
ideas coming from management
students for a sector like renewable
energy which is so crucial for socio-economic
prosperity of India.
“If India has to provide energy for all
by 2022, we have to work on all fronts;
with newer and innovative technologies,
research and international cooperation
to bring the alternate sources of energy
into mainstream.
“With foreign investors eager to
enter Indian markets, joint initiatives like
India-Sweden Innovations’ Accelerator
play a crucial role in sensitizing the
young talent to the constraints and
challenges in the sector and design
solutions to circumvent them. And they
have come up with brilliant suggestions
in the shape of sustainable business
models.
“I strongly believe that India Sweden
Innovations’ Accelerator (ISIA) is a
step in the right direction wherein
students can work on challenges
and opportunities leveraging mutual
strengths and solutions created by
them will design a better future for India
and the planet.”