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8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
1/15
METAMORPHOSIS IN
CONSTRUCTION
& BUILDING INDUSTRY
by
Dr Sunil Mahajan,
Director , CIDC
28th June 2013 , Mumbai
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
2/15
The construction industry is the second largestemployer in the country after agriculture and
spans across several sub-sectors of the economy.The main characteristic feature of theconstruction industry is a mix of organized andunorganized players in all sub sectors.
The Construction sector provides direct/indirectemployment to about 41 million people and isexpected to employ about 92 million persons by
2022.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
3/15
Two key sub-sectors of construction are:
(i) Buildings, falling into one of the following
categories: residential, commercial, institutional
and industrial; and
(ii) Infrastructure such as road, rail, dams, canals,
airports, power systems, telecommunication
systems, urban infrastructure including water
supply, sewerage, and drainage and ruralinfrastructure.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Parties involved in
construction
Direct :
Owner
Contractor Advisor/Consultants
InDirect :
Specialized Service Providers Banks/Financial Institutions
Insurance Companies
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Growth in construction industry is linked to the growth in
the infrastructure sector and the building industry.
Infrastructure sector, is a major thrust area, requireshighly skilled and efficient workforce comprising of skilled
engineers, supervisors, artisans, and managers etc.
Considering present scenario, availability of human
resources in the industry having capabilities to meetrequirements of this sector is scarce.
The ambitious Physical Infrastructure development plans
present an unique opportunity, not only to escalate the
growth gradient of the National economy, but also to
provide massive employment, and thus harmonize the
distribution of wealth, thereby bringing overall prosperity.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Impediments faced by construction industry
a) Small and medium enterprises across the country are facing anacute shortage of unskilled workers.
b) The Government support is just not available to the trainingproviders, inspite of all State Governments collecting
construction Workers Welfare cess which remains grosslyunutilized. There is no Central Plan to support this importantinitiative.
c) The National Skill Development Mission, created recently,only lends the resources, which is not a viable mode of
availing resources.
d) Formally trained & certified skilled / semi skilled labourers arenot available.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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e) There is no regulation to insist on Certification foremployment.
f) The contract Conditions being followed are notstandard & the contractual clauses are not equitable.
g) The Indian construction industry is faced with highoperation, maintenance, and financial costs but due to
some constraints there is reluctance on the part ofbanks/FIs to lend to the construction industry.
h) There is no singular nodal agency empowered by theGovernment to administer the construction activities
in the country.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Actions to be initiated
Conceptualizing & initiating a Green rating/ marking for other sub sectorsof Infrastructure Construction (Presently such schemes are available for the
housing sector only).
Modifying syllabus & introducing mandatory Internships for the studentsof engineering at Diploma/ degree level, with a minimum duration of oneyear ( Presently such training are limited to 1 or 2 months only).
Introducing a sub trust for the Provident Fund being collected fromconstruction workers & introducing a scheme for utilization of unclaimeddeposits for the HRD of workers engaged with construction Industry. (Doesnot exist)
Introducing tax benefits for the corporate, desirous of introducing
apprentice ship/ vocational training initiatives in construction Industry.(Does not exist)
Developing & enacting an unified construction law, taking in cognizancethe existing provisions. (Does not exist)
Contd..
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Developing & introducing innovative & relevant insuranceproducts for Construction Industry. ( Mooted by CIDC but notimplemented fully)
Introducing on line dispute resolution mechanism to resolvelow/ medium value disputes at economical costs.
(UNCITRAL provides have now come in force, and soonnecessary actions would have to be taken at National level)
Introducing a Construction Guarantee Fund to enable theIndustry avail economical non-fund based guarantees. (Doesnot exist)
Introducing Housing Warranty schemes for protecting theconsumer interest. (Does not exist)
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
10/15
CIDC is a not-for-profit organization and being the apex
organization is responsible to do following:
(a)To nurture human resources and build institutions.
(b) To evolve standards of Practice through joint
working (with Indian and International Standard
Organizations).
(c) To facilitate implementation of these through
demonstrable models.
(d) To undertake value based assignments to in still
good practices, thus developed.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Measures taken by CIDC for Sustainable Build
Environment
Since its inception, CIDC is actively assisting StateGovernment, Departments, PSUs and organizations for thefollowing, to have sustainable build environment:
1. Training and Human Resource Development programs for
Senior Administrative and Technical Officers.2. Manpower planning studies / Strategy formulation including
business process reviews / Detailed Design and projectpreparation.
3. Testing, Certification and Training of Unskilled Workers
engaged in construction activities.4. Procurement Process Review and streamliningPreparation
of standard contract clauses/Works Manuals-amendment toexisting chapters and documents.
5. Development of Construction cost indices / Schedule of rates /
preparation and provision for its revision.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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6. Independent Quality Assurance of Construction
7. Project Management Consultancy
8. System for monitoring, quality checking and evaluation of
work done.9. Developed the CIDC Comprehensive Green Rating
system, which would evaluate in a Total sense i.e. takeinto account the at source pollution/ energy consumptionand away from site impacts of materials/ services used to
make the buildings Green, aspects which are grosslyunder-emphasized (but are equally important) in the existingsystems being employed.
10. Instrumental in formation of national policies relating toconstruction. As Convener of the Steering Committee of the
Chapters on Construction in 10th, 11th & 12th Plans, CIDCensures that the needs of construction industry are reflectedduring formation of Plans & Policies on Construction.
11. Organizing Seminars / Workshop for all stakeholders
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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CIDC actively pursues the agenda for rehabilitation ofProjectAffected Persons and helps organizations achieve theirCSRgoals.
CIDC helps by way ofsettingup dedicated training centre tohandle Project affected persons-Train them & help them insourcing suitable employment.
Upgrade skills of existing workers & staff with in thecorporate house.
Supporting in creation of a wealth of skilled human resourcebase for the corporate & nation as a whole.
Help in building positive & long term relation with
communities. Social upliftment & Livelihood support.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Over the years, the equipment used in construction has
improved significantly to provide better productivity, safety
and accuracy. Mechanization ensures greater efficiency
and reduces the need for skilled labour. It also enablesaccess to hazardous areas where manual intervention is
not possible. Development in this area includes:
1. Evolving sustainable construction practices;
2. Enhanced usage of precast products;
3. Close proximity radiography;
4. Concrete production and placement;
5. Earth moving and mining;
6. Automation to enhance productivity and safety;7. Facilitate availability and deployment of construction
equipment through incentives and penetration of good
practices into rural construction sector.
8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry
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Thank You