12
Volume 3 l Issue No 25 l June 23-29, 2014 l Price: Rs 100 An MMR, Braj Binani Group Publication Over 50 pc real estate buying decision influenced by Internet: Google across 15 cities in India with over 6,000 respondents revealed that 74 per cent of real estate research online was focused on residential buying and 26 per cent focused on residential renting. Almost half the respondents were indifferent to new or resale property (47 per cent) as the criteria for research focused more on their space requirement, budget and location. 23 per cent respondents were in the market for resale property only, and 30 per cent were looking for new property under construction. In the survey, respondents rated Internet in the top three medium for information for real estate research, with 24 per cent respondents rating Internet as the top destination for information. Print media and sales- broker offices were the rated as the other top two information sources for property information. Google India released a study on June 18 to understand the influence of Internet on real estate purchase decisions in India. The study compiled by Google, basis a pan India offline research conducted by Zinnov and real estate related search query trends on Google revealed that over 50 per cent of real estate buyers decisions are influenced by Internet research. The phenomenon, of researching online for real estate information, was not limited to metros but also extended to buyers in tier-2 cities. The study revealed that the overall influence of Internet today on real estate transaction value of both residential and commercial property including rentals amounted to $43 billion, with $31 billion for residential and $12 billion for commercial properties. The offline survey conducted as the trends are consistent both in metro and tier-2 cities” he added. In tier-1 cities over 57 per cent buyers were influenced by online research and in tier-2 cities the impact was equally high with 48 per cent buyers saying that they used Internet to research for real estate purchase decisions. The usage of mobile phones for accessing real estate information online was also significant with over 55 per cent buyers using it to access the information. This finding was consistent with Google search, with mobile contributing to over 40 per cent real estate queries on Google search. Mobile apps were preferred over websites by buyers with 73 per cent respondents saying they prefer to use mobile apps. Amongst the wishlist, respondents highlighted the need for accurate and updated information with details of locality and amenities online. Respondents also highlighted the low availability of information for commercial property information online. While respondents appreciated the availability of contact details of owners, they also highlighted the problems of brokers pretending to be owners and asked for sites to run more detailed checks on listings. Offering online chats, quick turnaround to online queries and providing experts counselling were highlighted as some of the improvements they would like to see from real estate players on the Internet. IGBC plans 10 b sq ft Green areas by 2022 The Indian Green Building Council (IGBC), part of CII, recently crossed the milestone of 2 billion sq ft built- up area of Green building projects registered with the Council. The larger plan and strategy of the IGBC is to have 10 billion sq ft by 2022 when India will be 75 years post- independence. The relationship between IGBC and USGBC is further being strengthened to work on increasing the uptake of Green buildings in India. The license agreement that IGBC had signed with USGBC in 2004 comes to an end in June 2014 and a new agreement is being signed for the next 10 years to work in the areas of advocacy, knowledge exchange and market transformation. The Leed India projects which are already registered with IGBC will be certified by IGBC till end of 2018. Starting July 1, 2014, Leed projects in India will be registered and certified directly by GBCI, the certification institute appointed by USGBC IGBC will continue to certify projects under IGBC homes, IGBC townships, IGBC factory buildings, IGBC Sezs and IGBC landscaping. Dr Prem C Jain, Chairman, IGBC said,”Leed India rating, which is for commercial buildings, forms about 25 per cent of total built-up area registered with IGBC, for Green building projects in India. Very soon rating systems for Green schools and affordable housing segments will be launched. In light of the increasing volumes of Green building projects that IGBC is handling, IGBC feels it will be better managed if the Leed rating is handled by USGBC. Hence IGBC has agreed with USGBC for them to directly handle the Leed certification.” Mahesh Ramanujam, Chief Operating Officer, USGBC & President, GBCI said, “Over the past 10 years, IGBC has been instrumental in mobilizing the Green building movement in India and helping establish Leed India as a key driver for market transformation. We are grateful for IGBC’s early support of Leed India and its ongoing leadership in India.” Jamshyd N Godrej, Chairman, CII- Godrej GBC, stated that energy and water efficiency across all sectors of the economy is of paramount importance to India and IGBC would give a major thrust in these areas. Godrej added that by 2030 the power deficit will be more than 12 Amongst the top destinations on the Internet for real estate information, aggregator sites (62 per cent) were rated as the top source for information, followed by builder and developers sites (52 per cent). Online broker sites and real estate blogs and forums (~45 per cent) were also rated as popularly used destinations for information. Ease of comparison, large variety of options, easy access to detailed information about the property, market trends, financing options and contact details of the property owners were rated as the top reasons for using Internet for real estate research. The report revealed that buyers who contribute to over 90 per cent of total real estate transactions in the country have an annual household income of over Rs 5 lakh; a majority of which were already using the Internet. Nitin Bawankule, Industry Director, Google India, said, “It is clear that Internet is emerging as the top destination for researching before finalizing any high value purchase and the consumer behavior is no different for real estate purchases. “Real estate queries on Google search have been growing consistently registering over 3x growth in the past three years, the rate of query growth is even higher for tier-2 cities and growing at over 350 per cent. Our search query data shows that over 53 per cent search queries are done with clear purchase intent.” “It is estimated that the real estate industry will grow to become a $140 billion by 2017 and the Internet audience base is expected to reach over 450 million by then. There is tremendous opportunity for both online real estate aggregators, brokers and developers to engage the buyers online by providing rich, meaningful and immersive experience to buyers on the Internet, including mobile ready online assets Google search queries data for 2013 The highest number of real estate queries in tier-2 cities came from Pune, followed by Lucknow, Jaipur, Indore, Chandigarh, Coimbatore, Nagpur, Kanpur, Surat and Ahmedabad. Among the top metros, NCR followed by Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai per cent in peak load. To meet such demand, we need to add a 500 mw power plant every week for the next 10 years. This looks unlikely considering the capacity additions that have taken place during the preceding 5-year plans. IGBC applauds the new thrust on renewable energy by the Govt of India and several state governments. “The decreasing trend in the cost of RE power is an encouraging step in the right direction. IGBC would work on private sector investments by the building sector so that the share of Renewable energy by 2022 is 25 per cent or more,” said Godrej. ParasuRaman R, Founding Chairman, IGBC, said that IGBC has established its leadership role in the building sector and the sustainable built environment in particular. The last 10 years of association with USGBC have been of great help and support. The next ten years would be even more challenging and full of new opportunities for which IGBC is fully equipped. S Raghupathy, Executive Director, CII-Godrej GBC, highlighted that the partnership with USGBC has been extraordinary and highly productive, since the first MoU was signed in 2001.

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Page 1: Construction Industry Review

June 23-29, 2014 1

Volume 3 l Issue No 25 l June 23-29, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication

Over 50 pc real estate buying decision influenced by Internet: Google

across 15 cities in India with over 6,000 respondents revealed that 74 per cent of real estate research online was focused on residential buying and 26 per cent focused on residential renting.

Almost half the respondents were indifferent to new or resale property (47 per cent) as the criteria for research focused more on their space requirement, budget and location. 23 per cent respondents were in the market for resale property only, and 30 per cent were looking for new property under construction.

In the survey, respondents rated Internet in the top three medium for information for real estate research, with 24 per cent respondents rating Internet as the top destination for information. Print media and sales-broker offices were the rated as the other top two information sources for property information.

Google India released a study on June 18 to understand the influence of Internet on real estate purchase decisions in India. The study compiled by Google, basis a pan India offline research conducted by Zinnov and real estate related search query trends on Google revealed that over 50 per cent of real estate buyers decisions are influenced by Internet research.

The phenomenon, of researching online for real estate information, was not limited to metros but also extended to buyers in tier-2 cities. The study revealed that the overall influence of Internet today on real estate transaction value of both residential and commercial property including rentals amounted to $43 billion, with $31 billion for residential and $12 bi l l ion for commercial properties.

The offline survey conducted

as the trends are consistent both in metro and tier-2 cities” he added.

In tier-1 cities over 57 per cent buyers were influenced by online research and in tier-2 cities the impact was equally high with 48 per cent buyers saying that they used Internet to research for real estate purchase decisions. The usage of mobile phones for accessing real estate information online was also significant with over 55 per cent buyers using it to access the information.

This f inding was consistent with Google search, with mobile contributing to over 40 per cent real estate queries on Google search. Mobile apps were preferred over websites by buyers with 73 per cent respondents saying they prefer to use mobile apps.

Amongst the wishlist, respondents highlighted the need for accurate and updated information with details of locality and amenities online. Respondents also highlighted the low availability of information for commercial property information online.

While respondents appreciated the availability of contact details of owners, they also highlighted the problems of brokers pretending to be owners and asked for sites to run more detailed checks on listings.

Offer ing onl ine chats, quick turnaround to online queries and prov id ing exper ts counsel l ing were highlighted as some of the improvements they would like to see from real estate players on the Internet.

IGBC plans 10 b sq ft Green areas by 2022

The Indian Green Building Council (IGBC), part of CII, recently crossed the milestone of 2 billion sq ft built-up area of Green building projects registered with the Council. The larger plan and strategy of the IGBC is to have 10 billion sq ft by 2022 when India will be 75 years post-independence.

The relationship between IGBC and USGBC is further being strengthened to work on increasing the uptake of Green buildings in India. The license agreement that IGBC had signed with USGBC in 2004 comes to an end in June 2014 and a new agreement is being signed for the next 10 years to work in the areas of advocacy, knowledge exchange and market transformation.

The Leed India projects which are already registered with IGBC will

be certified by IGBC till end of 2018. Starting July 1, 2014, Leed projects in India will be registered and certified directly by GBCI, the certification institute appointed by USGBC

IGBC wil l continue to cert i fy projects under IGBC homes, IGBC townships, IGBC factory buildings, IGBC Sezs and IGBC landscaping.

Dr Prem C Jain, Chairman, IGBC said,”Leed India rating, which is for commercial buildings, forms about 25 per cent of total built-up area registered with IGBC, for Green building projects in India. Very soon rating systems for Green schools and affordable housing segments will be launched. In light of the increasing volumes of Green building projects that IGBC is handling, IGBC feels it will be better managed if the Leed rating is handled by USGBC. Hence

IGBC has agreed with USGBC for them to directly handle the Leed certification.”

Mahesh Ramanu jam, Ch ie f Opera t i ng O f f i ce r, USGB C & President, GBCI said, “Over the past 10 years, IGBC has been instrumental in mobilizing the Green building movement in India and helping establish Leed India as a key driver for market transformation. We are grateful for IGBC’s early support of Leed India and its ongoing leadership in India.”

Jamshyd N Godrej, Chairman, CII-Godrej GBC, stated that energy and water efficiency across all sectors of the economy is of paramount importance to India and IGBC would give a major thrust in these areas.

Godrej added that by 2030 the power deficit will be more than 12

Amongst the top destinations on the Internet for real estate information, aggregator si tes (62 per cent) were rated as the top source for information, followed by builder and developers sites (52 per cent). Online broker sites and real estate blogs and forums (~45 per cent) were also rated as popularly used destinations for information.

Ease of comparison, large variety of options, easy access to detailed information about the property, market trends, financing options and contact details of the property owners were rated as the top reasons for using Internet for real estate research.

The report revealed that buyers who contribute to over 90 per cent of total real estate transactions in the country have an annual household income of over Rs 5 lakh; a majority of which were already using the Internet.

Nitin Bawankule, Industry Director, Google India, said, “It is clear that Internet is emerging as the top destination for researching before finalizing any high value purchase and the consumer behavior is no different for real estate purchases.

“Real estate queries on Google search have been growing consistently registering over 3x growth in the past three years, the rate of query growth is even higher for tier-2 cities and growing at over 350 per cent. Our search query data shows that over 53 per cent search queries are done with clear purchase intent.”

“It is estimated that the real estate industry will grow to become a $140 bil l ion by 2017 and the Internet audience base is expected to reach over 450 million by then. There is tremendous opportunity for both online real estate aggregators, brokers and developers to engage the buyers onl ine by providing rich, meaningful and immersive experience to buyers on the Internet, including mobile ready online assets

Google search queries data for 2013

The highest number of real estate queries in tier-2 cities came from Pune, followed by Lucknow, Jaipur, Indore, Chandigarh, Coimbatore, Nagpur, Kanpur, Surat and Ahmedabad.

Among the top metros, NCR fol lowed by Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai

per cent in peak load. To meet such demand, we need to add a 500 mw power plant every week for the next 10 years. This looks unlikely considering the capacity additions that have taken place during the preceding 5-year plans.

IGBC applauds the new thrust on renewable energy by the Govt of India and several state governments. “The decreasing trend in the cost of RE power is an encouraging step in the right direction. IGBC would work on private sector investments by the building sector so that the share of Renewable energy by 2022 is 25 per cent or more,” said Godrej.

Pa rasuRaman R , Found ing Chairman, IGBC, said that IGBC has established its leadership role in the building sector and the sustainable built environment in particular. The last 10 years of association with USGBC have been of great help and support. The next ten years would be even more challenging and full of new opportunities for which IGBC is fully equipped.

S Raghupathy, Executive Director, CII-Godrej GBC, highlighted that the partnership with USGBC has been extraordinary and highly productive, since the first MoU was signed in 2001.

Page 2: Construction Industry Review

June 23-29, 2014 2Building materials

Export: Cement, Cement Products & Building Materials Date Export Items/ Products Port Code Foreign Port Qty (Kgs) Value (Rs) FOB Rate

Lime Stone/ Marble/ Granite stone 3/1/2014 NATURAL PROCESSED STONE GUR NETHERLANDS 26000 168776.08 6.493/6/2014 NATURAL LIME STONE CHN FRANCE 100000 710921.36 7.13/9/2014 UNPOLISHED GRANITE STONES CHN DENMARK 10000 85107.59 8.513/11/2014 COBBLE STONES CHN USA 14400000 51150540.56 3.63/12/2014 TRIMMED GRANITE CHN SRI LANKA 22000 274493.9 12.483/16/2014 NATURAL STONE CHN JAPAN 84000 1180975 14.13/16/2014 UNPOLISHED GRANITE STONES CHN UAE 220000 1176621.28 5.33/16/2014 ROUGH GRANITE BLOCKS KAN CHINA 335532 8698667.1 25.93/17/2014 ALUMINIUM SILICATE MUN SPAIN 49000 395398.46 8.13/17/2014 GRANITE BLOCKS KRI HONGKONG 2438000 19972827.4 8.23/20/2014 MARBLE TILES PET BANGLADESH 21000 205251.14 9.773/22/2014 LIMESTONE CHN BELGIUM 57200 1086281.84 19.03/22/2014 NATURAL LIMESTONE CHN U K 252000 1859244 7.43/25/2014 NATURAL LIME STONE CHN CANADA 20250 388663.72 19.193/25/2014 NATURAL LIMESTONE CHN ECUADOR 100000 1210461.12 12.13/25/2014 UNPOLISHED GRANITE STONES CHN NORWAY 438000 995838.5 2.3 Total 18572982 89560069.05 4.8

Marble 3/5/2014 GREEN MARBLE MUN PAKISTAN 267220 2222222.62 8.323/5/2014 MARBLE BLOCKS KNA CHINA 11554730 90006866.24 7.83/8/2014 MARBLE BLOCKS KAN HONGKONG 5894720 38095839.04 6.53/16/2014 MARBLE BLOCKS MUN TAIWAN 3508920 40247516.16 11.53/20/2014 ROUGH MARBLE BLOCKS MUN THAILAND 51450 694611.5 13.53/22/2014 MARBLE BLOCKS MUN BANGLADESH 603510 2237039.2 3.73/22/2014 ROUGH MARBLE BLOCKS MUN ITALY 1345662 13424415.96 10.03/22/2014 MARBLE BLOCKS MUN EGYPT 3001660 17884323.84 6.0 Total 26227872 204812834.6 7.8

Natural Manganese 3/18/2014 NATURAL MANGANESE DIOXIDE POWDER MUM NETHERLANDS 0.2 22 1103/25/2014 NATURAL MINERAL POWDER MICA MUM JAPAN 0.1 2 20 Total 0.3 24 80

Mica 3/1/2014 MICA FLAKES KOL EGYPT 160000 617373.9 3.93/1/2014 MICA POWDER CHN UAE 14000 681296 48.663/3/2014 MICA BLOCKS KOL GREECE 315 774605.5 2459.073/3/2014 MICA FLAKES KOL NETHERLANDS 725492 16590695.08 22.93/3/2014 MICA FINE CHN LIBYA 36000 370832 10.33/1/2014 MICA FLAKES CHN BELGIUM 2000 63517.97 31.763/1/2014 WET GROUND MICA POWDER CHN INDONESIA 9000 702694.3 78.083/5/2014 MICA ROUND KOL KOREA 40000 1345128.4 33.63/5/2014 MICA KOL AUSTRALIA 108000 1564609.2 14.53/6/2014 MICA BLOCKS CHN USA 10361.6 1627370.5 157.13/6/2014 MICRONISED MICA POWDER CHN MALAYSIA 17000 542247.48 31.93/8/2014 MICA BLOCKS KOL GERMANY 5740 670923.56 116.93/8/2014 MICA (WET GROUND MICA) CHN JAPAN 16000 1013760 63.363/8/2014 RUBY MICA SCRAP KOL ESTONIA 144000 4824000 33.53/10/2014 MICA BLOCKS KOL RUSSIA FED. 120 712451 5937.093/11/2014 MICA POWDERDETL KOL IRAN 200000 1116800 5.583/11/2014 MICA SCRAP MUN CHINA 162700 3898175.3 24.03/12/2014 MINERAL POWDER MUN MYANMAR 1000 19651.14 19.653/12/2014 MICA FLAKE KOL U K 308760 2933798.56 9.53/13/2014 MICA BLOCKS KOL TAIWAN 50 8536.33 170.733/13/2014 MICA BLOCKS PET BANGLADESH 520 11364.58 21.853/16/2014 MICA FLAKES MUN OMAN 153000 1892251.2 12.43/17/2014 MICA POWDER KOL S. ARABIA 18000 92293 5.133/17/2014 MICA KOL THAILAND 17000 49464.9 2.913/17/2014 MICA POWDER KOL POLAND 20000 225410.3 11.273/17/2014 MICA SCRAPASPER KOL ROMANIA 25000 894412.5 35.783/22/2014 MICA BLOCK CHN BRAZIL 88000 2903600 33.03/25/2014 MICA ROUND MUN KENYA 70 30850.77 440.733/25/2014 MICA BLOCKS KOL SLOVAKIA 1000 785527.5 785.533/25/2014 MICA POWDER JNP PAKISTAN 2000 166155 83.08 Total 2285128.6 47129795.97 20.6

Quartz (other than natural sands) 3/1/2014 QUARTZ GRITS MUN VIETNAM 450000 3362512.5 7.53/1/2014 SILICON DIOXIDE (QUARTZ) VIZ MALAYSIA 1369000 11180182.88 8.23/1/2014 QUARTZ POWDER MUN VIETNAM 383200 2220062.66 5.83/1/2014 QUARTZ SILICA KAN UAE 12000 47486.68 4.03/3/2014 QUARTZ POWDER CHN THAILAND 264000 5410442.1 20.53/1/2014 QUARTZ POWDER CHN S. ARABIA 5000 14323.87 2.863/1/2014 QUARTZ POWDER CHN UAE 5000 14323.87 2.863/1/2014 QUARTZ GRITS MUN ITALY 162000 1397088 8.63/5/2014 QUARTZ GRITZ MUN BANGLADESH 165000 1378492.5 8.353/5/2014 QUARTZ GRITZ MUN IRAN 165000 1378492.5 8.353/8/2014 SILICA RAMMING MASS KNA S. ARABIA 1264000 7231619.6 5.73/10/2014 QUARTZ LUMPS CHN MALAYSIA 1754000 5852008.7 3.33/10/2014 QUARTZ KRI USA 1134000 3769868.8 3.33/10/2014 QUARTZ POWDER KOL NIGERIA 1026000 6275971.7 6.13/11/2014 QUARTZ SAND MUN UAE 268000 1020264.9 3.83/11/2014 QUARTZ POWDER MUN TANZANIA 54000 240791.4 4.463/11/2014 QUARTZ POWDER MUN USA 54000 240791.4 4.463/11/2014 QUARTZ SILICA MUN UAE 3176000 12655464.72 4.03/11/2014 SILICA QUARTZ POWDER MUN MALAYSIA 222000 1503716 6.83/12/2014 QUARTZ POWDER KOL KENYA 172000 2401890.72 14.03/12/2014 SILICA RAMMING MASS KOL SRI LANKA 54000 340136 6.33/12/2014 SILICA RAMMING MASS KOL KENYA 54000 340136 6.33/15/2014 QUARTZ LUMPS CHN OMAN 172800 1443918.8 8.43/16/2014 QUARTZ POWDER CHN ITALY 40000 605089.5 15.133/16/2014 QUARTZ POWDER CHN JAPAN 40000 605089.5 15.133/16/2014 QUARTZ POWDER (SILICA POWDER) PET BANGLADESH 800000 3099330 3.93/18/2014 BUFF GREY QUARTZITE MUN ITALY 46900 390735.63 8.333/18/2014 QUARTZITE MUN ITALY 46900 390735.63 8.333/20/2014 QUARTZ POWDER KNA VIETNAM 27650 180785 6.543/20/2014 QUARTZ POWDER KNA BANGLADESH 27650 180785 6.543/20/2014 QUARTZ MUN OMAN 650000 4619835.02 7.13/20/2014 QUARTZ POWDER - MICRON SILICA PET BANGLADESH 512000 2328032.3 4.53/20/2014 QUARTZ POWDER CHN KOREA 20000 364609.2 18.233/20/2014 QUARTZ POWER CHN KOREA 20000 364609.2 18.233/23/2014 ARFURANE C POWDER AHM TUNISIA 19500 1274573.02 65.363/23/2014 ARFURANE C POWDER AHM MAURITIUS 19500 1274573.02 65.363/23/2014 QUARTZ POWDER MUN INDONESIA 216000 1126256.56 5.23/23/2014 SILICA SAND MUN MAURITIUS 212000 1950596.92 9.23/25/2014 QUARTZ LUMPS CHN CHINA 1000 15675 15.683/25/2014 QUARTZ LUMPS CHN CHINA 1000 15675 15.683/28/2014 QUARTZ GRITS VIZ VIETNAM 1104000 9192575.52 8.33/28/2014 ARFURANE C POWDER AHM MOROCCO 29600 522155.98 17.63/28/2014 QUARTZ GRITS MUN OMAN 736000 3752805.64 5.13/28/2014 QUARTZITE GRAINS & POWDER REX NEPAL 206000 1146599.98 5.63/28/2014 QUARTZ GRITS CHN KOREA 376000 3232624.3 8.63/28/2014 QUARTZ CHN JAPAN 3994000 39992520.38 10.0 Total 21530700 146346253.6 6.8

Kaolin and other kaolinic clays 3/1/2014 KAOLIN CLAY/ CHINA CLAY POWDER /KAOLIN POWDER MUN UAE 72216000 78152774.4 1.13/1/2014 CALCINED KAOLIN MUN NIGERIA 80000 2134440 26.683/1/2014 CALCINED KAOLIN MUN GERMANY 80000 2134440 26.683/1/2014 KAOLIN COC NETHERLANDS 24200 313990.68 12.973/1/2014 KAOLIN BCK POWDER COC TURKEY 24200 313990.68 12.973/8/2014 CHINA CLAY MUN KUWAIT 1008000 6108379.2 6.13/8/2014 KAOLIN LUMPS MUN TAIWAN 300000 1384187.6 4.63/8/2014 BENEFITS COC CHINA 1000 31006.3 31.013/8/2014 CHINA CLAY COC TURKEY 1000 31006.3 31.013/8/2014 KAOLIN- (PROCESSED CHINA CLAY) COC PHILIPPINES 25000 654476.63 26.183/8/2014 KAOLIN- (PROCESSED CHINA CLAY) COC KENYA 25000 654476.63 26.183/9/2014 KAOLIN / CHINA CLAY KAN UAE 20000 80574.9 4.033/9/2014 KAOLIN / CHINA CLAY KAN KENYA 20000 80574.9 4.033/10/2014 KAOLIN CLAY MUN IRAN 175000 1363250 7.793/10/2014 KAOLIN CLAY MUN GERMANY 175000 1363250 7.793/10/2014 KAOLIN MUN KOREA 32000 193177.6 6.03/11/2014 CERAMIC INDUSTRIES ( KAOLIN LUMPS) MUN IRAN 350000 2329621.5 6.73/13/2014 KAOLENE - CHINA CLAY PET BANGLADESH 200530 1915968.1 9.63/13/2014 LIGHT KAOLIN JNP MAURITIUS 238325 5618029.92 23.63/16/2014 KAOLINIC CLAYS PET BANGLADESH 328000 2597391.3 7.93/18/2014 KAOLIN MUN ANGOLA 1120000 10374896 9.33/23/2014 KAOLIN PAN JORDAN 40000 416328 10.413/23/2014 KAOLIN PAN GERMANY 40000 416328 10.413/23/2014 KAOLIN POWDER MUN CHINA 144000 1017978.5 7.13/25/2014 KAOLIN- (PROCESSED CHINA CLAY) COC OMAN 28000 347966.71 12.43

Date Export Items/ Products Port Code Foreign Port Qty (Kgs) Value (Rs) FOB Rate

3/25/2014 KAOLIN- (PROCESSED CHINA CLAY) COC KENYA 28000 347966.71 12.433/25/2014 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC TURKEY 5000 94703.12 18.943/25/2014 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC GUATEMALA 5000 94703.12 18.943/26/2014 CHINA CLAY MUN KOREA 480000 3146449.9 6.63/26/2014 KAOLINIC CLAYS PET BANGLADESH 254000 1633589.8 6.43/26/2014 HYDROUS ALUMINIUM SILICATE COC SRI LANKA 58000 681084.44 11.73/26/2014 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC GERMANY 775800 10977641.92 14.23/26/2014 HYDRO CHLORIDE MUM CANADA 100 522.5 5.233/26/2014 HYDRO CHLORIDE MUM GERMANY 100 522.5 5.233/26/2014 KAOLIN- (PROCESSED CHINA CLAY) MUN S. AFRICA 532000 4144676.8 7.83/26/2014 KAOLIN BCK POWDER (PROCESSED CHINA CLAY) COC INDONESIA 240000 4261407.1 17.8 Total 79073255 145411771.8 1.8

Clay 3/1/2014 CHINA CLAY MUN S. ARABIA 236000 1974780.2 8.43/1/2014 CHINA CLAY MUN UAE 23000 118389.73 5.153/1/2014 CHINA CLAY MUN CHINA 23000 118389.73 5.153/1/2014 REFINED CLAY JNP U K 2304 118332.29 51.363/1/2014 REFINED CLAY JNP IRAN 2304 118332.29 51.363/9/2014 CHINA CLAY PET BANGLADESH 156000 1609939.74 10.33/11/2014 FULLERS EARTH POWDER REX NEPAL 80000 364800 4.63/15/2014 CALCINED CHINA CLAY POWDER MUN YEMEN 17000 323025.5 193/15/2014 CALCINED CHINA CLAY POWDER MUN GHANA 17000 323025.5 193/18/2014 CLAY JNP GERMANY 600 1555.52 2.63/18/2014 PROCESSED CHINA CLAY COC GUINEA 16000 169736.16 10.613/18/2014 PROCESSED CHINA CLAY COC USA 16000 169736.16 10.613/23/2014 HYDROUS KAOLIN MUN KOREA 160000 1128280.3 7.13/27/2014 CHINA CLAY JNP SRI LANKA 228000 1398488 6.13/28/2014 CLAY/EARTH JNP KENYA 120000 1933244.56 16.1 Total 1097208 9870055.68 9.0

Natural Garnet 3/5/2014 GARNET VIZ JAPAN 40000 401555 10.043/26/2014 GARNET VIZ MALAYSIA 840000 8275260 9.93/16/2014 GARNET VIZ UKRAINE 54000 232702.8 4.313/16/2014 GARNET VIZ USA 612000 5947195 9.73/16/2014 GARNET VIZ CEI (BALTIC SEA) 784000 5699766.8 7.33/22/2014 GARNET VIZ QATAR 840000 8239483.5 9.83/22/2014 GARNET VIZ THAILAND 24000 292600 12.193/22/2014 GARNET VIZ AUSTRALIA 2122000 20792633.5 9.83/23/2014 GARNET VIZ ISRAEL 56000 574750 10.33/25/2014 GARNET VIZ UAE 4200000 34596293.8 8.23/26/2014 GARNET VIZ CANADA 56000 526680 9.413/28/2014 GARNET VIZ EGYPT 224000 2054888 9.17 Total 9852000 87633808.4 8.9

Fly Ash 3/2/2014 PROCESSED FLYASH JNP BAHARAIN 623340 1862761.36 3.03/6/2014 FLY ASH MUN UAE 485280 627758.21 1.293/15/2014 FLY ASH MUN QATAR 4872000 11865076.48 2.43/16/2014 SYNTHETIC ORGANIC MUM BRAZIL 2000 8192.31 4.13/16/2014 INSULATING POWDER LUD POLAND 25000 297878.25 11.923/17/2014 DRY FLY ASH MUN S. ARABIA 24132120 68803939.8 2.93/17/2014 FLY ASH MUN JORDAN 112000 432872.84 3.863/20/2014 FLY ASH PIP USA 224050 1101760.54 4.93/23/2014 ALUMINA AND SILICA - CERAMIC NAG KOREA 144000 8964288 62.33/25/2014 FLY ASH POZZOCRETE JNP EGYPT 2223480 8050149.38 3.63/28/2014 FLY ASH MUN BAHARAIN 2016000 5025713.96 2.53/28/2014 PROCESSED FLY ASH JNP OMAN 3638780 11636082.64 3.23/28/2014 FLY ASH VIZ MALAYSIA 22400 41841.8 1.873/28/2014 FLY ASH JNP THAILAND 1000 26799.39 26.8 Total 38521450 118745115 3.1

Alumina 3/3/2014 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP THAILAND 40000 1192429.7 29.813/1/2014 ALUMINIUM HYDROXIDE AMORPHOUS JNP KOREA 20000 1897280 94.863/6/2014 ALUMINIUM OXIDE AHM USA 400 313174 782.93/7/2014 ALUMINA TRIHYDRATE ALUMINIUM HYDROXIDE JNP S. ARABIA 968000 17852237 18.43/8/2014 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP URUGUAY 22000 391314 17.793/9/2014 ALUMINIUM HYDROXIDE AMORPHOUS MUM INDONESIA 110400 4977582 45.13/10/2014 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP PAKISTAN 511000 7687384.7 15.03/11/2014 CALCINED ALUMINA (INDAL CALCINED ALUMINA) JNP KOREA 160000 4739146.1 29.63/12/2014 CALCINED ALUMINA (INDAL CALCINED ALUMINA) JNP MEXICO 100000 3482660.8 34.833/13/2014 DRIED ALUMINIUM HYDROXIDE JNP GHANA 24750 2237586.79 90.43/26/2014 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP JAPAN 160000 3239363 20.23/15/2014 ALUMINIUM HYDROXIDE JNP GHANA 3000 371764.5 123.923/16/2014 CALCINED ALUMINA (INDAL CALCINED ALUMINA) JNP SRI LANKA 48000 2181733.8 45.53/17/2014 ALUMINA TRIHYDRATE (INDAL ALUMINA) CHN PHILIPPINES 660000 8213040 12.43/18/2014 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) JNP MALAYSIA 2068000 26928110 13.03/19/2014 DRIED ALUMINIUM HYDROXIDE GEL JNP PAKISTAN 50000 4013503.34 80.33/20/2014 ALUMINIUM HYDROXIDE HYD IRELAND 20000 1091200 54.563/21/2014 DRIED ALUMINIUM HYDROXIDE GEL JNP MEXICO 45200 6035904.04 133.53/22/2014 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) CHN TAIWAN 2156000 25881428 12.03/23/2014 ALUMINIUM HYDROXIDE AMORPHOUS JNP AUSTRALIA 76000 7028550 92.53/24/2013 ALUMINA TRIHYDRATE (INDAL ALUMINA HYDRATE) JNP OMAN 40000 790333.5 19.763/25/2014 ALUMINA COC SLOVAKIA 400 305196.42 763.03/25/2014 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) CHN INDONESIA 1408000 19036325 13.53/25/2014 ALUMINA TRIHYDRATE (ALUMINIUM HYDROXIDE) CHN KOREA 2800000 40535952.5 14.53/25/2014 ALUMINA COC GERMANY 150 160201.8 1068.01 Total 11491300 190583401 16.59

Barytes 3/1/2014 MINERAL POWDER MICRON BARYTES CHN MAURITIUS 20400 604758 29.653/3/2014 BARITE POWDER - API CHN U K 540000 5110798 9.463/1/2014 BARITE ORE KRI USA 98800000 342580952 3.53/1/2014 BARITE POWDER CHN NETHERLANDS 7 75.46 10.783/8/2014 BARIUM SULPHATE BARYTES CHN SINGAPORE 588000 5618104 9.63/9/2014 BARYTES POWDER CHN S. ARABIA 9455000 71367413.1 7.53/12/2014 MINERAL POWDER MUN MYANMAR 5000 148550.26 29.713/13/2014 MINERAL POWDER MUN TANZANIA 4009000 32037947 8.03/15/2014 BARITE POWDER API CHN UAE 810000 4291624.5 5.33/16/2014 BARIUM SULPHATE BARYTES CHN INDONESIA 24000 476760.75 19.873/17/2014 BARRITE POWDER CHN KUWAIT 1890000 8693214.22 4.63/19/2014 MICRON BARYTE BAR SPAIN 2000 77447.3 38.723/21/2014 BARITE POWDER CHN BANGLADESH 400000 3961547.4 9.93/22/2014 BARITE POWDER CHN VENEZUELA 756000 7257305.66 9.63/25/2014 BARITE POWDER CHN MOZAMBIQUE 1125000 8938680.75 7.953/26/2014 BARITE POWDER CHN OMAN 3240000 27288976 8.43/26/2014 MICRON BARYTER BAR AUSTRALIA 5000 153876.26 30.783/26/2014 BARITE POWDER - API CHN THAILAND 5130000 42501623 8.33/26/2014 MINERAL POWDER MICRON BARYTE CHN SRI LANKA 27000 715250.25 26.493/26/2014 BARITE POWDER TON KENYA 468000 8746650 18.69 Total 127294407 570571553.9 4.5

Bauxite 3/3/2014 CALCINED BAUXITE MUN S. AFRICA 198000 2142794.5 10.823/9/2014 CALCINED BAUXITE MUN JAPAN 1000000 19588672 19.63/12/2014 CALCINED BAUXITE MUN BAHARAIN 25000 308455.65 12.343/26/2014 CALCINED BAUXITE JNP ITALY 383720 4890717.5 12.73/18/2014 BAUXITE ORE JNP KOREA 162000 1084702 6.73/18/2014 BAUXITE JNP GERMANY 1546 8395.22 5.43/18/2014 BAUXITE (GROUNDED BAUXITE) KAN S. ARABIA 400000 2778123 6.93/25/2014 CALCINED BAUXITE AHM UAE 22000 470249.02 21.373/25/2014 BAUXITE CEMENT REX NEPAL 85840 77256 0.93/25/2014 CALCINED BAUXITE JNP SLOVENIA 1580840 17298862.08 10.93/25/2014 BAUXITE POWDER MUN OMAN 2800000 16093000 5.7 Total 6658946 64741226.97 9.7

Zinc oxide 3/1/2014 ZINC OXIDE BAR PAKISTAN 100 22763.85 227.643/1/2014 ZINC OXIDE BAR SINGAPORE 25000 1817375.95 72.73/1/2014 ZINC OXIDE BAR SPAIN 100000 8953005.6 89.53/1/2014 ZINC OXIDE BP MUM UAE 300 88484.24 294.953/10/2014 ZINC OXIDE JNP EGYPT 20000 1929545.9 96.483/15/2014 ZINC OXIDE CHN AUSTRALIA 40000 3427285 85.73/15/2014 ZINC OXIDE PET BANGLADESH 29000 3453402.22 119.13/15/2014 ZINC OXIDE JNP S. ARABIA 80000 7842364.36 98.03/16/2014 ZINC OXIDE REX NEPAL 2000 240750 120.43/16/2014 ZINC OXIDE BAR SRI LANKA 2000 226020.89 113.013/18/2014 ZINC OXIDE MUN TANZANIA 130500 11968120.62 91.73/25/2014 ZINC OXIDE MAM JAPAN 190000 19642395.9 103.43/25/2014 ZINC OXIDE BAR KOREA 50000 4847061.22 96.93/25/2014 ZINC OXIDE CHN PHILIPPINES 1000 180262.5 180.263/25/2014 ZINC OXIDE BAR VIETNAM 550000 39040252.92 71.0 Total 1219900 103679091.2 85.0

Page 3: Construction Industry Review

June 23-29, 2014 3in PersOn

‘Sudden changes in govt norms may hinder ongoing projects’

luxury project with a 30 ft waterfall in each villa.

Projects like Hinduja Healthcare in Khar in Mumbai, S2 and Kirabo are some of our commercial projects. Under the redevelopment vertical, we have several projects like Gurukripa, Natraj and Haribhavan in suburbs like Khar, Bandra and Kalina in Mumbai.

In the residential and commercial segment what is the total area of development in completed projects so far? Also give us estimation of total development of projects in planning and developing stages?

S Raheja Realty has been in the real estate business for three generations and has developed a few lakh of square feet during the period. Currently, we have approximately 3 lakh sq ft under construction.

As a prime developer what is your take on the slow rate of approvals, regulatory changes in the micro market such as Mumbai, inflation impacting cost structure, declining demand due to increasing prices, etc?

As already mentioned, the RBI and government’s regulations, if changed, should give builders int imation beforehand or allow them time to adapt to the change. Otherwise, a lot of time is wasted in the approvals process.

The slowdown of the market impacts the whole fraternity and we are no exception. The construction costs have been rising due to hike in cement prices and other ancillary industries. The falling value of the

it have any impact on your future development?

S Raheja Realty has earned the trust of its buyers through honest delivery of quality projects through the past three generations. We have earned the faith and respect of buyers and government alike. However, there is a lot of negative perception about the real estate market. Several reasons like builders finding loopholes in the business and using it to their advantage.

Also, a lot of times projects remain unfinished and builders do not deliver what was promised to buyers. Negative impressions are easy to form and therefore just like in any other business, due to misdoings of a few, the whole industry gets blamed.

The Ministry of Housing & Urban Poverty Alleviation plans to ease the norms for FDI in real estate up to 100 per cent under the automatic route in townships, housing, built-up infrastructure and construction development projects. Is it a boon for developers or otherwise?

This is a huge step considering the sheer population of our country and the market size. It can be positive and negative, depending on how it is dealt with. The Reserve Bank of India needs to be strict about the FDI so

“If the ruling body gives developers adequate time needed for internally working on changes, it can be easier for the company and may also prevent cost hikes,” asserts Ram Raheja, Director & Head- Architecture & Design, S Raheja Realty, in an interview with Remona Divekar

The real estate in India is highly fragmented and capital intensive in nature. The sector has close linkage with economy and therefore highly cyclical in nature. How does such a situation impact developers?

The rea l estate sector is a critical sector for any economy. It is the second-largest employment-generating sector after agriculture, and contributes about 5-6 per cent to India’s GDP. Growing at a rate of about 20 per cent per annum, it generates a high level of direct employment, and stimulates demand in over 250 ancillary industries such as cement, steel, paint, brick, building materials, consumer durables and so on.

The Indian real estate market is highly fragmented, each city has its own demand-supply mechanism and even within the same city, every area has a different demand. The positive impact of this fragmentation is that it keeps the cycle of demand & supply going and sustains the market.

As a developer, if one considers the dynamics of the micro market when choosing location of a project, there is usually no chance of a decline in its demand. Thus, personally, I consider this nature of the Indian market as a boon.

A typical real estate project has a gestation period of three to four years and any adverse change in macroeconomic factors in the interim period can affect cash flows of the developer. How do you as a developer cope with such crises?

The uncertainty and sudden changes in regulations and norms

by government and the RBI may cause hindrance to ongoing projects. If the ruling body gives developers adequate time needed for internally working on changes, it can be easier for a company and may also prevent cost hikes.

S Raheja Realty builds on personal funding and financing from banks, and

all our projects are launched only after 100 per cent approvals. Usually, before launching, all these factors need to be taken into account as this helps us cope with any changes in regulations during the gestation period.

Tel l us about your pro jec ts completed and those in stages

of completion in the commercial, residential sector, etc. In all how much area are you developing?

S Raheja Realty is an integral part of India real estate landscape. The promoters are three generations into real estate with a focus on both residential and commercial development in Mumbai. Our projects fall under four verticals, namely, luxury affordable projects like Raheja Prime in Palghar and Raheja Residency in Varanasi, second homes projects like Cascades which is a 15 villa

rupee and the overall uncertainty of the sector are factors we cannot escape.

However, given that especially in cities like Mumbai where the land supply is limited and there is always a demand for quality projects, choosing a location wisely certainly helps to combat the issues discussed.

Banks have tightened lending to real estate companies, fearing possible default on repayments and increased risks perception of developers amongst lenders. Would

that we do not face the same fate as the US market in 2008.

What is your view on real estate regulation and development bill which has been passed recently?

Personally, I feel it is a boon though the guidelines should be stringent and transparent to avoid creation of excess funds in the market. The FDI is a positive step, but the regulatory body should not be blind in allocating powers as there is a chance of concentration and misuse of power by a group of people.

Hinduja Hospital, Mumbai

Cascade Natraj living room

Natraj exterior

Cascade

Page 4: Construction Industry Review

June 23-29, 2014 4inFrastruCture

Centre to give extra `12,000 per poor family to build homes

The Centre has decided to give Rs 12,000 per household to the poor for working on building their homes, a measure that signifies the biggest convergence of two social welfare schemes and could provide a boost to both rural employment and consumption at a time when the monsoon is expected to be below average.

Two of the biggest welfare schemes -- the Indira Awas Yojana (IAY) and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which together have a corpus of more than Rs 50,000 crore -- will pool their resources as part of the new government plan to provide a roof to everyone. This is likely to benefit cement, steel and local building industries as more people build their homes through IAY.

The idea is to incentivize rural households to take up construction of houses on their own, thereby saving on labour cost, besides adding a significant amount to their kitty and reviving interest in MGNREGA.

The government provides Rs 75,000 for construction of a house under IAY in hilly areas and Rs 70,000 for construction of houses in the

plains. Of this, 20 per cent is the labour cost, which works out to nearly Rs 14,000. The government feels that the additional financial support of Rs 12,000 would substantially reduce the burden on beneficiaries as they could now demand construction of houses under MGNREGA. The Centre has allocated over Rs 17,000 crore to be used for construction of nearly 25 lakh houses under IAY in 2014-15. Economists say that considering the fiscal constraints, this kind of rationalization of the two schemes has been a long-standing need.

President Pranab Mukherjee had in his joint address to Parliament

In keeping with New Delhi’s ambition to increase its share in global trade, the government is fast-tracking a proposal to link South Asia with Europe by sea, rail and roads. The trade route spanning Central Asia, the Caucasus and Russia -- the unique North-South Transport Corridor (NSTC) -- is high on the Modi government’s agenda.

Soon after the budget session is over, the government is going to launch India shows in key countries of CIS to regain significant trade ground in the former member states of the erstwhile USSR. Also known as the Eurasian countries, they are quite rich in natural resources like oil, natural gas, metals and minerals and are a useful source of several other raw materials of considerable importance to India’s manufacturing industry.

According to officials, the NSTC will not just improve relations with CIS countries, but also reduce cost of exports to Europe. Apart from environmental and commercial importance, this international transport corridor has a tremendous strategic significance, they said.

Interestingly, Nisha Desai Biswal, the Obama administration’s point person for South and Central Asia, who recently concluded her visit to New Delhi, had talked to Indian officials about regional trade linkages along the New Silk Road and the Indo-

said that the Narendra Modi-led NDA government would improve basic infrastructure such as roads, shelter and power, and provide drinking water in rural areas, besides emphasizing the government’s vision to provide pucca houses to all.

MGNREGA, which is the biggest welfare scheme with a budgeted corpus of Rs 34,000 crore this year, is expected to undergo a significant makeover to facilitate the goal. It could include addition of new works under the scheme with special focus on agriculture and weekly monitoring of wage disbursal to address the issue of delays.

Pacific Economic Corridor. Indian experts feel this route is

more realistic as it skips Pakistan. Security issues associated with the neighboring country are one of the main reasons why the gas pipeline projects have failed to progress despite numerous meetings between officials of all countries.

With India using the sea route to reach Iran, bypassing Pakistan, it is considered a more practical route. But global concerns about Iran could be one of the stumbling blocks over its development.

India’s access to Central Asia states through the North South corridor will not only enable it to meet its energy requirements and ensure its energy security, it will also will impact major commodities like oil, gas, uranium and other metals at a cheaper import cost for the country. Russia, at the centre of the NSTC, will have a tremendous economic and strategic advantage, gaining a conflict-free entry into the Persian Gulf and the Middle East, which will allow for changing the strategic set-up and the balance of forces not only in the region, but also in the whole world.

Once the deal is complete, NSTC will offer very competitive rates for shipment via the Suez Canal, slashing costs and shipment time between South Asia, Russia, Northern Europe and the Persian Gulf.

Corridor linking S Asia with Europe on Modi’s agenda

Haridaspur-Paradip rail link by 2017Officials of the Paradip Port Trust

(PPT) and East Coast Railways (ECoR) said the much- awaited Haridaspur-Paradip rail link would be completed by 2017 as implementation of the project has taken off the ground after a few hiccups earlier this year.

According to official estimate, about 19 million tons of traffic is expected to move per annum on this line which passed through three districts establishing a direct link between the iron ore rich areas of the state and the Paradip Port, shortening the chargeable distance by about 335 km, in comparison to the existing route.

A l t h o u g h t h e p r o j e c t w a s conceptualized about 20 years ago, land acquisition for the project was

started in 1997. However, due to many official and political reasons, the work has not been completed till date. The project requires 1,340 acres land.

T h e r a i l p r o j e c t i s b e i n g implemented by a special purpose vehicle where many private and public companies have invested. Haridaspur Paradip Railway Company Ltd is the SPV with an equity base of Rs 275

crore of which the Rail Vikash Nigam Ltd (RVNL) holds a major share of 48.43 per cent.

Besides RVNL, the three other PSUs, which have s igned the agreement to develop the project jointly, are the Paradip Port Trust, Steel Authority of India Ltd (Sail) and the Industrial Development Corporation Ltd (Idcol) of Odisha.

The defence and road ministries are close to an agreement for speedy transfer of land parcels currently with the three armed forces to the National Highways Authority of India (NHAI) so that a host of large highway projects can take off.

Some of these projects have been stuck for want of Defence Ministry clearances (for land transfer) for up to five years, taking a toll on highway construction, which is also reeling from the hit taken from the economic slowdown and low investor interest.

According to official sources, Min ister for Road Transport & Highways Nitin Gadkari has had talks with the Defense Ministry on the issue, and the latter has responded favourably, given Modi’s thrust on removing impediments for infrastructure projects.

The Jammu-Udhampur project, for instance, is pending with the local army authority. Similarly, in the case of the Deoli-Kota section, defence clearance has been delayed by almost three years.

T h e H y d e r a b a d - B e n g a l u r u stretch has been delayed for five years, with both army and air force clearances pending. “In the case of the Hyderabad-Bengaluru stretch, a draft MoU has been made and the army has informed the NHAI that land of equal value (as the one to be transferred to the NHAI) may be soon identified in coordination with the state government for transfer to defence authorities,” said an official.

The move comes in the wake of Gadkari’s mandate for the NHAI to prioritize completion of over two dozen identified projects. To fast-track decision-making, the minister had also agreed, in principle, to empower the NHAI board appropriately, tweak the contract conditions or have in place a new contract agreement. These steps, it is believed, would leave little scope for arbitration and legal hassles.

Master Plan Delhi 2021 nearing completion

The Master Plan Delhi (MPD) 2021 is nearing completion as the advisory committee, headed by Lt-Governor Najeeb Jung, is clearing the inclusion of two separate chapters on environment and transportation. After being under review for one-and-a-half years, the manual for Delhi’s development — MPD 2021 — is expected to be rolled out within two months.

“After a marathon three-hour meet, the advisory committee has cleared the inclusion of the chapters on environment and transportation in the Delhi Master Plan,” said Balvinder Kumar, Vice Chairman, Delhi Development Authority (DDA). Now, both chapters will go to public for objection and suggestion. “These two chapters were left as most of our work is done, and therefore we think that the Delhi Master Plan should be ready in the next two months,” added Kumar.

Kumar is also the chairman of the DDA, the urban body which prepares the Master Plan for the Capital. “Transport Corridor and Metro Corridor have been discussed in it and we are also discussing Transit-Oriented-Development (TOD) in such areas,

that is, to take up the development activities closer to transportation facilities,” said a DDA official.

On the land use, the Master Plan will also see a new concept of ‘land pooling’ as against just ‘land acquisition’, so as to ‘increase the partnership’ of farmers with the DDA, said a senior DDA official.

“Earlier, farmers got compensation for the land acquired from them. But as per the new Master Plan, a group of farmers, who own lands contiguous to each other, can pool them together into a unit as a landholder consortium, and apply to the DDA as that consortium, after which, the DDA will keep a certain percentage of the land and the rest can be used by the consortium for their own development work,” the official maintained.

NHAI, defence ministry soon to clear armed forces roadblock

Page 5: Construction Industry Review

June 23-29, 2014 5in PersOn

‘I use natural materials and forms in my designs’

spaces for. While designing a space my starting point is the flow of space which caters to all the specifications given. All my designs give me a high, especially the happiness seen in my clients.

Elements like wood, stone and fabrics in silk and cotton have significance in your projects. What so much importance to them?

Design is such a fluid thing, and I love to experiment. Fusing these materials gives me stylistic influences which are very appealing to the senses.

How do you plan out the budget of each project, considering the cost and cost over-runs?

Budgets can be controlled by the choice of materials we use. We cut down on space and the choice of materials when faced with a block.

Nupur Madhav, Founder, Principal Interior Designer of Shankh consultancy for design and manufacturing, in an interaction with Remona Divekar, emphasizes that a vivid dialogue of materials, textures, hues and colours teamed with modern silhouettes is capable of crafting customized design solutions of utmost quality

Crafting furniture, furnishings and accents for over 17 years, Shankh offers consultancy for design and manufacturing. When creating design it is necessary to think of the house in totality that is a series of spaces linked together by halls and stairways.

Interior design elements should be the same, but they should work together and complement each other to strengthen the whole composition. A way to create this theme or storyline is with the well-considered use of colour. The colour schemes in general are a great way to unify a collection of spaces.

How did you zeroed in on the curious name, Shankh?

Shankh is a beaut i fu l fo rm traditionally as well as visually -- a pearl’s nest! Likewise, I create nests -- residences and working environments -- for my clients who are as precious as pearls.

Tell us about the early days of Shankh, its initial journey since inception.

In the initial years to increase visibility, Shankh had participated in various exhibitions where quality and finishing was always appreciated. The s ty l i zed in f luence in our products always caught the eye of customers.

I visited exhibitions and stores across Europe to update myself with the ongoing trends and then incorporated the same in my style cohesively.

How do you justify the idea of using the purity of material in their

basic forms? Are the materials you use based on sustainable lines?

I like purity in thoughts, hence the use of natural materials and forms. Pure cottons and silk, natural wood, stone, etc are the materials used by me. I consciously avoid artificial fiber. India is a tropical country and the use of these materials is cohesive to the environment, weather conditions and our culture.

Which was the first project you accomplished?

My first project was a 4,000 sq ft residence in South Delhi.

What do you basically focus on and what kind of projects give you a high?

My main focus while designing is the person I am designing for. I like to study the people I design the

Currently my projects involve a 5,000 sq ft apartments (four apartments each) in Royal Retreat towers of Charmwood village, two apartments in Gurgaon, a bungalow of Chhavi and Deepak Methi, Noida and a bungalow of Manish Gaur, Noida.

I am also working on export houses in Okhla, Noida and corporate offices in Gurgaon, Okhla, Noida and Trivandrum.

Which is the most challenging project you have done so far?

All my projects are a challenge until they are satisfactorily complete.

How do you overcome taxing aspects of your work?

Staying within a budget is a challenge, and chances of going overboard are always high. The only

Which alternate materials have you used in your projects?

Yes, I did a fusion of raw brick wall with metal and glass for an export house.

Tell us about your residential, commercial, office and industrial projects.

I have done numerous interiors of residences in Delhi, Jaipur, Patna, Ahmedabad and other cities, along with a residence project for window dress ings in the Nether lands.

way to overcome them is by doing your homework well and thorough before execution. Designing any space towards final details always helps.

What new can we expect from Shankh in coming days?

We are working on creating a fusion look with rustic and modern minimalist ic styles. They would be more v is ib le in my coming projects.

Prestige to develop Hotel Leela’s surplus land

DDA to roll out largest-ever housing scheme

Hotel Leela Venture has signed a joint development agreement with Prestige group to develop its surplus land in Bengaluru.

The project , Prest ige Leela Residences, will come up on Leela’s land on Old Airport Road next to its hotel Leela Palace, at an expected

The largest-ever housing scheme of the Delhi Development Authority will be rolled out for city dwellers by July-end, offering over 26,000 flats across various categories with most of them being built with ‘Green’ technology, said a top official of the housing body.

“We have 24,000 one-room apartments and another 2,000-2,500 flats lined up in the DDA, 2014, housing

investment of around Rs 110 crore. The deal is part of Leela Venture’s

strategy to monetize non-core assets. Confirming the development, Venkat K Narayana, Executive Director & CFO of Prestige Group, said, “Leela has offered us 8,027 sq m land next to Leela Palace.”

scheme. The houses will be spread across Rohini, Narela and Dwarka and will be priced from Rs 14-15 lakh to Rs 1 crore. And we should be able to launch the largest-ever scheme by July-end,” said DDA Vice Chairman Balvinder Kumar. The much-awaited scheme comes four years after the DDA offered over 16,000 flats in its 2010 scheme.

“While 24,000 flats will be low-cost, the remaining 2,000-2,500 flats will

The project is spread over 0.36 million sq ft. “The Prestige has 60 per cent interest in the project and we plan to take up construction this fiscal,” he added. Similarly, the company has signed an agreement with the Bhartiya Group for managing a Leela Hotel, near the international airport, with 250 guestrooms and a convent ion centre for 1,500 people. As part of its non-core asset monetization drive, the company had sold its 3.5-acre plot at Banjara Hills, Hyderabad.

be available across LIG, MIG and HIG categories. We will soon hold a meeting to discuss whether the one-room flats would be made available to all or only to the economically weaker sections,” said Kumar said.

Talking about the features of the flats, he said, “Most of the houses are pre-fabricated and have Green features, used for the first time in the DDA houses.

Donald Trump to scout for fresh tie-ups

New-York based real estate moghul Donald Trump will make his maiden trip to India this year in August.

Though his India itinerary is being firmed up and under tight wraps, cementing two new realty deals and scouting for fresh tie-ups to expand his company, Trump Organization’s global footprint into India is set to be the high point of Trump’s India agenda.

One of the two deals includes a yet-to-be announced residential p ro jec t w i th ex i s t i ng pa r tne r Panchshil Realty in Pune. The formal inking of the Trump Tower deal in Mumbai, announced earlier with Lodha Developers, is also part of the agenda.

The new Trump Tower project to be announced in Pune with Panchshil Realty would comprise 6,000 sq ft size river-front apartments spread

across 1.2 million sq ft, while the Lodha project comprises a 77-storey residential Trump Tower in Worli, in Mumbai.

The latter would be the signature tower in The Park project, which is part of Lodha’s 17.5 acre township in Worli. Sources indicated that the Lodha-Trump deal is valued at around Rs 160-170 crore. Both the ultra-premium luxury projects would be owned, developed and promoted by local developers, with Trump lending only his brand name in return for a fee, as part of the brand licencing deal arrangement.

According to industry watchers, brand licencing tie-ups are a win-win strategy for both sides, as it involves zero investment by the foreign party, and allows local developers to leverage their Indian brand at a global level.

Page 6: Construction Industry Review

June 23-29, 2014 6PrOJeCts uPdate

Phase-1 of Mumbai’s new int’l airport ready by

Dec’18: CidcoThe first phase of the proposed

Rs 14,500-crore global airport at Navi Mumbai would be ready by December 2018, said the City & Industrial Development Corporation (Cidco) of Maharashtra Vice Chairman & Managing Director Sanjay Bhatia. The body is the nodal agency for the project.

Bhatia said settlement of disputes with almost all villages for smooth land acquisition was Cidco’s priority. The agency is developing a 600-square-metre township for the airport, he added. Other than the airport,

Cidco has started infrastructure development of Rs 20,000 crore for the nodes managed by it in Navi Mumbai.

The other key infrastructure projects Cidco has undertaken in Navi Mumbai include the Rs 2,100-crore metro rail one, the Rs 1,412-crore Nerul-Belapur-Uran railway one, the Rs 1,450-crore Balganga dam to ensure drinking water to the city and several others like coastal roads and bridges.

Cidco has prepared a three-year plan for development of 13 schools, four professional colleges,

one degree college, 32 hospitals, 34 religious and spiritual centres and 77 social welfare centres, including hostels, indoor sports facilities and community centres in the nodes being developed by it. Cidco has chalked a plan to construct 6,000 affordable houses.

On links between Mumbai and Navi Mumbai, Bhatia said the state government was reactivating the Mumbai Trans Harbour Link, while the Jawaharlal Nehru Port Trust was doubling its capacity to handle large ships.

Kargil tunnel project to get fillip with Centre push

W i t h f a s t t r a c k i n g b o r d e r infrastructure high on Narendra Modi government’s priority, a crucial road link project that will provide round the year connectivity between the strategically important areas of Kargil and Leh and the rest of India through a 14 km long tunnel across Zojila -- one of the highest mountain passes in India -- has got a fresh impetus.

Road Minister Nitin Gadkari is pushing for expediting the Zojila tunnel project, which despite getting approved by the cabinet last October, failed to take off because of differences between the Road Ministry and the Planning Commission over its funding model.

The proposed Rs 9,000-crore Zojila project along with another 6.5 km long tunnel at Z-Morh in Sonmarg -- where work started in 2012 -- will provide round-the-year road connectivity to Kargil and Leh.

The two-year-old plan favouring off-the-shelf purchase of high-speed train sets has been revived in the run up to new railway minister DV Sadanand Gowda’s maiden budget presentation in Parliament next month.

Proposals mooted are that two train-sets (costing between Rs 170-300 crore a piece) be purchased to prov ide India the quantum technological jump that it needs to fulfill its ambition of joining the high-speed club – without having to re-invent the wheel.

Capable of clocking 300-350 km per hour, the train sets are proposed to be run at speeds of 130 km per hour on the existing tracks to reduce the travel time between Delhi and Mumbai and Delhi and Howrah by an estimated three hours.

A presentation – envisaging the possibility of purchasing these on lease from the Japanese, French or German vendors – was recently made to the railway minister, sources said.

The ‘anti-import’ lobby opposes the idea of ‘splurging money’ on acquiring ‘fancy toys’ at a juncture

when the crying need was to address bread and butter issues of providing for safe affordable travel to 2.3 crore Indians who travel by train on a daily basis.

They also point to the absurdity of running the train tracks on ‘mixed’ Indian tracks, which carry both passenger and freight trains.

The price of one coach of a high-speed train is estimated between Rs 9 and Rs 12 crore. “For the money that India will spend on importing train sets, the entire fleet of the LHB-design coaches can be upgraded to enable them to run at speeds of 160km per hour,” said an official.

The contrary view is that the railways can get a jump-start in high-speed technology by importing the train sets. Proponents of this idea point to studies conducted by the UIC (International Organisation on High Speeds), which show that the train sets are capable of reducing energy consumption by 29 per cent and reduce travel time by 30 per cent, besides providing for a 44 per cent increase in average speeds.

High-speed trains proposal being revived

While the completion target for the first phase of the project which involves building the 6 km long tunnel at Z-Morh at an estimated of Rs 2,700 crore is 2018, the Zojila tunnel will take seven years to be completed once work starts.

“ B e c a u s e o f i t s s t r a t e g i c importance, Gadkari does not want any further delay and he is keen that all formalities related to awarding the project should be completed within the next two months,” said an official.

Indian road builders stand chance to bid for Ghana projects

Major highway builders in India have an opportunity to bid for 13 PPP road projects in Ghana, including a few that are being built through assistance by the World Bank, said officials.

The potential projects on public private partnership (PPP) mode in the East African nation, as per the Road Transport & Highways (RTH) Ministry, include Accra-Takkoradi Road in which the World Bank is assisting the government to Ghana (GoG) to

prepare feasibility reports.“Indian Mission at Accra (Ghana)

has sent a list of PPP projects in Ghana to be circulated among potential Indian companies who may be interested in investing/participating,” said RTH Ministry in a letter to the National Highways Authority of India.

The NHAI will circulate the list to the companies concerned. Besides, there are several projects for setting up toll booths.

The government is mull ing a special platform to allow infrastructure players to renegotiate already bid public-private partnership (PPP) projects, a move aimed at giving a big push to infrastructure development in the country.

Discussions have begun on creating a ‘resolution panel’ in line with global practices as the government looks to breathe new life into PPP implementation.

“A number of issues keep cropping up in PPP, allowing renegotiation after a project is bid out has emerged as a crucial chal lenge in most infrastructure sectors,” said an official at an infrastructure ministry, who is privy to deliberations on the issue.

Most countries have a provision for renegotiation of contracts under the PPP mode. For example, South Africa’s PPP unit is empowered to approve changes in conditions. Similar models are followed in many other countries.

In India, renegotiation of contracts has been done very selectively. C Rangarajan, who was chairman of the Prime Minister’s Economic Advisory Council until last month, was asked to look at resetting of premia for road projects when a number of projects got stuck in the economic downturn.

T h e F i n a n c e M i n i s t r y h a d recently called a meeting to discuss what needs to be done for the PPP framework to support the new government’s big infra push.

“Renegotiation is necessary in PPP. It happens all over the world and is needed. It is humanly impossible to make accurate forecast for 30-40 years,” said Vinayak Chatterjee, Chairman, Feedback Infra Pvt Ltd.

A number of private players had bid aggressively for road projects but then sought reset of premia as economic growth fell. The issue has also been taken up by industry bodies including CII with the government time and again.

Govt mulls new PPP mode to spur infra projects

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Page 7: Construction Industry Review

June 23-29, 2014 7

With land in metros and ‘A’ grade cities

becoming scarcer and dearer and plots getting

smaller, conventional parking is proving

infeasible

inFrastruCture

Call for innovative car parking systems

India, the second most populated country in the world, houses more than 40 million vehicles and is the only country which saw a growing car sales even during the recession and recorded the highest sales volume during 2009 and 2010.

Since it has a strong domestic market, the growth is expected to be sustainable and to increase over the next few years since India’s car per capita ratio is currently among the lowest in the world’s top 10 auto markets.

However, the in f ras t ructure available for vehicles like roads parking spaces has been a challenge in most Indian cities.

Demand for parkingOur cities face a severe problem

of congestion due to runway growth of personalized vehicles. The traffic management in many cities is marked by introduction of a series of one-way traffic system. The one–way traffic system has, however, implications on pedestr ian safety and fuel consumption.

One-way t raf f ic is general ly d e s i r a b l e w h e n t h e r e a r e complementary roads and additional traveling distance is not more than 300m as per IRC. Hence, whenever such systems are in t roduced, the interests of public transport modes and pedestrians are duly addressed.

The demand for parking in CBD areas of our cities is twice the supply. Acute shortage of parking supply is witnessed in commercial areas and indiscriminate parking impedes free flow of traffic and cause accidents.

Automatic multi-storey car parks provide lower building cost per parking slot, as they typically require less building volume and less ground area than a conventional facility with the same capacity.

However, the cost of mechanical equipment within the building that is needed to transport cars internally needs to be added to the lower building cost to determine total costs. Other costs are usually lower too; for example there is no need for an energy-intensive ventilating system, since cars are not driven inside and human cashiers or security personnel may not be needed.

Automated car parks rely on similar technology that is used for mechanical handling and document retrieval. The driver leaves the car in an entrance module. It is then transported to a parking slot by a robot trolley. For the driver, the process of parking is reduced to leaving the car inside an entrance module.

Multi-level parking A multi-level car parking system

is meant to maximize car parking capacity by utilizing vertical rather than horizontal space. However, with land in metros and ‘A’ grade cities becoming scarcer and dearer and plots getting smaller, conventional parking is proving infeasible.

It is often found that ramps or car lifts consume so much parking area that no increase in parking capacity is possible. In such cases, mechanized car parking systems make creation of extra parking capacity feasible.

The Equivalent Car Space (ECS) that can be accommodated at a parking site would vary with the technology used. Types of multilevel parking currently available are as follows:

Conven t iona l mu l t i - l eve l : Conventional multi level parking system can be underground, above ground or both under and above ground.

The open parking structure is preferable to enclosed structures for above ground parking, as it does not require mechanical ventilation and specialized fire protection systems.

Automated mul t i - level : As against cars being driven on ramps or carried in car lifts to different levels in conventional multilevel parking,

luggage occurs at the entrance and exit location rather than at the parked stall. This loading blocks the entrance or exit from being available to others. Whether the retrieval of vehicles is faster in an automatic car park or a self-park car park depends on the layout and number of exits.

Multi-level car parking initiatives

New Delhi Municipal Council: A modern integrated multi-level car parking complex was recently opened in the busy Sarojini Nagar area to decongest this popular marketplace. This project is to be developed by DLF for New Delhi Municipal Council (NDMC).

The parking would accommodate 824 vehicles at an investment of INR

The car parking system will have two 11-storey tower car parks for accommodating 22 cars each and a three-level puzzle park for 43 cars. At Vashi Civic Hospital, there will be three 11-storey towers accommodating 22 cars each and a 7-storey puzzle car park for 110 cars.

The total parking capacity will be 263 cars. In the tower system, a lift ferries cars to a height and parks them. In the puzzle system, which is wider than taller, cars are fitted into various vacant slots. Seven more mechanized car parks have been planned for; five of the multi-level lots will follow the tower system and two the puzzle system.

A h m e d a b a d M u n i c i p a l Corporation: Kolkata-based Simplex

in the city where there is immense space and parking crunch.

Restrict parkingInternational case studies prove

that providing innovative solutions to parking problems and introducing mass transit systems do a lot more than just solve traffic problems. Such solutions also result in increased real estate values in a city, since consumers are willing to pay more for the convenience.

One method of addressing the escalat ing shortage of parking spaces in shopping areas would be to restrict parking at few locations and impos ing heavy pa rk ing fees. This would go a long way in creating space availability, making the pathways outside malls more pedestrian friendly and generally enhancing the livability of the city’s urban environment.

Automated multi-level car parking facilities at important locations are also a viable way of addressing parking requirements. They can contribute significantly in reducing traffic congestion.

These should ideally be developed near public transit points, within walking distance of key destinations. International property consultancy JLL is now actively advising many city authorities and developers on such solutions. MLCPs are now being implemented on a design, build, operate and transfer model via public private partnerships.

Commercial scopeIn order to make such projects

f inancial ly viable, the Strategic Consulting division at JLL India suggests that certain portions of the development be laid open for commercial exploitation. Incentives such as additional FSI and a revision in existing parking fees need to be offered to private developers in order to increase their interest levels in participating in MLCP projects. There is definitely scope for making these developments, which should now qualify as vital infrastructure, more popular.

The concerned authorities need to impose strict penalties on owners of commercial buildings who do not provide adequate parking facilities. At the same time, more FSI could be offered to developers for new developments in certain locations if they contribute free parking spaces.

Meanwhile, the recent introduction of automated parking meters in four of Chennai’s key locations has the potential for introducing a new dimension of parking discipline. However, there is still a general lack of awareness about these parking meters and the purpose they serve. Along with awareness and compliance enforcement, the number of such meters also needs to be increased in various commercial areas of major cities.

Above all, policy reforms and their implementation are the most effective tools in providing efficient parking solutions and management. In the long run, citizens will need to revise their perceptions about the use of private vehicles and exhibit an increasing preference for public transportation.

a shankar Head–Strategic Consulting Chennai, Coimbatore and Colombo JLL

cars are driven at only one level for parking or retrieval.

Cars are parked in steel pallets -- a target pallet rides up or down to the driveway level at the press of a button for parking or retrieval. Technologies used for automated parking systems are of the following types:

Puzzle Type or Modular; Elevated Type or Tower; Multi-Level Floor Parking; Mult i-Level Circulation Automated Parking System; Rotary type; TD (Stacker) System.

Lower building costAutomatic multi-storey car parks

involve lower building cost per parking slot, as they typically require less building volume and ground area than a conventional facility with the same capacity.

However, the cost of the mechanical equipment that is needed within the building to transport cars internally needs to be added to the lower building cost to determine total costs. Other costs are usually lower too; for example, there is no need for an energy-intensive ventilating system, since cars are not driven inside and human cashiers or security personnel may not be needed. Automated car parks rely on technology similar to that used for mechanical handling and document retrieval.

The driver leaves the car in an entrance module, and it is then transported to a parking slot by a robot trolley. For the driver, the process of parking is reduced to leaving the car inside an entrance module.

At peak periods, a wait may be involved before entering or leaving because loading passengers and

80 crore on a Built-Operate-Transfer basis. Similar car parking facilities are being planned at Baba Kharag Singh Marg and Kasturba Gandhi Marg.

Municipal Corporation of Delhi: A fully automated multi-level car parking complex is planned at Mandalia Chowk in Kamla Nagar. The parking complex is planned to accommodate 828 cars and 300 two-wheelers and will be constructed by the Municipal Corporation of Delhi at a cost of INR 110 crore within a period of two years.

The MCD has identified 24 sites that will be developed into parking sites at Lajpat Nagar, Rani Bagh, Greater Kailash-I, Defence Colony, Karol Bagh, South Extension, Mori Gate, Greater Kailash-II, Qutub Road and Rajouri Garden.

Delhi Development Authority (DDA) has already invited tenders for nine plots to build multi-level parking lots in the Capital. These plots will be developed on a Public Private Partnership (PPP) basis, similar to the model followed by the agency for its Nehru Place multi-level parking lot.

The parking lots, which wi l l have anywhere between three to seven levels depending on size and location, will be built at community centres or district centres in Dwarka, Janakpuri, Hari Nagar, Wazirpur, Okhla, Motia Khan, Mayur Place and Yamuna Vihar.

N a v i M u m b a i M u n i c i p a l Corporation has planned to set up a multilevel car parking system at Vashi, Navi Mumbai, at two locations -- Sector 17 and near the Civic Hospital -- with a project cost of INR 10 crore.

Projects Ltd has received offers to set up an automated multi-level car park here. Simplex Projects has to its credit the country’s first multi-level car parking system Parkomat at New Market in Kolkata.

The design and technology for car parking systems are acquired from the Netherlands, Italy, Switzerland and Korea and are usually assigned projects on a built-own-operate-transfer basis.

Bengaluru Mahanagar Palika is planning to construct five new multi-level car parking complexes over the current year, 2014 at an estimated cost of INR 20 crore. Around 15 such new car parking complexes will be built at an estimated cost of INR 60 crore.

Car parking complexes have been planned in various parts of the city such as MG Road, Commercial Street, Shivaji Nagar, KG Road, Gandhi Nagar, KR Market, Mysore Road, Jayanagar Shopping Complex, Malleswaram and Seshadripuram. The BMP has already taken steps to construct three multi-level car-parking complexes on JC Road, Kempegowda Road and Magarath Road.

Hyderabad Urban Development Authority (Huda) is planning a multi-level car parking complex in private partnership, close to the NTR Garden on the Buddha Purnima Road. An extent of 2.5 acres of area has been earmarked for the complex that would accommodate about 1,000 cars, besides 500 two wheelers.

Kolkata Municipal Corporation has been tying up with private companies to venture into automated MLCP

Page 8: Construction Industry Review

June 23-29, 2014 8real estate

A tale of 2 states The investor community has expressed optimism over the future of both

the newly formed states of Telangana and the new Andhra Pradesh

Hyderabad emerged as a dominant growth narrative of post-liberalization India, between the late ‘90s and the mid-2000s, attracting significant investments from global technology majors such as Microsoft, Google and General Electric.

During 2005-08, the city’s organized office space market grew by a CAGR of approximately 23 per cent, touching nearly 23 million sq ft by 2008. Following the political upheaval over the creation of a new state (Telangana), however, growth slowed down to almost 11 per cent between 2008 and 2013. Foreign investment into the parent state of Andhra Pradesh also nosedived from $1.2 billion in 2008-09 to $848 million in 2011-12.

After the creation of the state of Telangana, numerous infrastructure proposals such as a Metro rail project, Information Technology Investment Regions (ITIRs), and other political initiatives, have been lined up to resuscitate Hyderabad as yet another dominant driver of India’s economic growth narrative. The paper, ‘A Tale of Two States’,places the spotlight on Hyderabad, and its resurgence on the national radar. It examines the impact of the bifurcation on the joint state capital—as an investment hub, as well as a real estate narrative. The viewpoint also touches upon potential opportunities the region is likely offer, going forward.

Optimism over the future The long standing demand for

a separate state for the Telangana region was finally addressed with the passage of ‘The Andhra Pradesh Reorganization Act-2014’ in both the houses of Parliament in February 2014.

The formally appointed date for the creation of India’s 29th state was June 2, 2014. This development has evoked mixed responses from industry stakeholders within, as well as outside, the erstwhile state of Andhra Pradesh.

The investor community at large has expressed optimism over the future of both the newly formed states of Telangana and the new Andhra Pradesh (comprising Seemandhra and Rayalaseema), amid anticipation of a s tab i l i zed soc io-pol i t ica l environment.

Against this backdrop, CBRE has briefly examined the impact that the bifurcation has had on the status of the joint state capital of Hyderabad as an investment hub, as well as a real estate story. This brief report also touches upon issues concerning the bifurcation process, besides the extent of potential opportunities the region would likely offer, going forward.

Hyderabad growth story Hyderabad’s real estate growth

t ime l ine amid the b i fu rca t ion process may be broadly classified into two phases—the pre-2008 era, characterized by strong growth, and the post-2008 era of subdued performance.

Strong growth era (2005-2008):

The emergence of a skilled and mobile workforce (aiding robust demand levels) in the city worked as a positive externality for the residential segment too, with the city’s organized apartment stock witnessing a CAGR of approximately 37 per cent during this period.

This was led by the Western regions

largely directed by low rental values (which declined in 2009 and 2010) instead of the other way around (as was the case during 2005–08).

The overall cautious sentiment impacted the residential segment too, with the city’s organized apartment stock witnessing a CAGR of 15 per cent during this period, as developers slowed down on new launches amid stable demand levels.

Foreign investments too were impacted due to the prevail ing uncertainty, with FDI in the state witnessing a y-o-y decline to reach $848 million in 2011-12. Although investments did improve in 2012-13, they were still at a level lower than what was witnessed in 2008–09.

Common capital A key contentious issue at the centre

of the state bifurcation process was the status of Hyderabad. The Andhra Pradesh Reorganization Act 2014 has notified the Greater Hyderabad Municipal Corporation (GHMC) purview area as the common capital for the states of Telangana and Andhra Pradesh for a period not exceeding 10 years, ending the uncertainty looming over the capital city. A large section of industry stakeholders feel that this clarity will now provide that much-needed impetus to propel investment flows into the city.

Destination for investors With more lucidity having been

achieved on the political dynamics now, the inherent strengths of both the successor states—together with several initiatives proposed by the Central government —are expected to present significant opportunities for potential investors interested in Hyderabad.

As the city boasts of having one of the finest infrastructure settings in the country today (featuring an eight-lane Outer Ring Road expressway, among others), and with it having crossed the erstwhile unstable socio-political climate, a sustained growth phase is expected to begin in the near future.

If the economic initiatives witnessed in and around the city during 2005-08 were a testimony to the attractiveness of the city for investors, the days to come will surely offer opportunities for the investor community.

The city continues to further augment its leadership position in infrastructure with the execution of large scale initiatives, such as the Hyderabad Metro Rail project. The three-line network spanning 71.16 km is aimed at easing congestion and providing seamless connectivity between the city’s key nodes, with

the initial Nagole–Mettuguda stretch of Line 3 to become operational by March 2015 (project completion is expected by 2017).

T h e o t h e r k e y a d v a n t a g e of Hyderabad is the affordability spectrum of its real estate. Currently, capital values for land as well as for commercial real estate are among the lowest compared to other metropolitan centres such as Bengaluru, Mumbai and New Delhi.

Coupled with a skilled workforce, a highly valued IT sector, and a first-mover advantage in sectors such as pharmaceuticals, bio-technology, semi-conductors and other services, this is expected to drive retail as well as large-scale institutional investors into the city in the near future.

Economic initiatives Already announced economic

initiatives include the setting up of the Information Technology Investment Regions (ITIR) in Hyderabad and Visakhapatnam to attract large investments into IT and al l ied sectors.

O the r i nves tmen ts i nc lude the development of two National Investment and Manufacturing zones (NMIZ) at Prakasham and Chittor districts of Andhra Pradesh, together with one in Medak district of Telangana, among others.

New economic/administration centres for the new state of Andhra Pradesh are yet to be identified. Different districts from the Rayalaseema and Coastal Andhra regions are vying for potential new economic/administration centers in the hopes of garnering investments and infrastructure that, in turn, could spur growth and trigger a rise in real estate prices.

These centres will be developed with facilities such as an assembly, secretariat, and high court, among others—highlighting the magnitude of opportunities such a division could bring along. The development of these centers is increasingly seen as the gateway to economic prosperity. Some of the leading districts/regions that could qualify are Visakhapatnam, the Vijayawada-Guntur region, Ongole, Tirupati, and Kurnool, among others.

Multi-pronged approach With a gradual improvement in

the global economic scenario, and the anticipated political stability at the Centre and at the state level after the General and Assembly Elections, respectively, Hyderabad is expected to show improvement in activity in the real estate sector.

Going forward, the ability to adopt a multi-pronged approach for achieving overarching growth would be critical to the economic success of the region, as well as the city. This approach should ideally focus on rejuvenating economic sentiments, improving infrastructure, as well as ensuring prolonged political stability to attract investments to the region.

Socio-economic transformation amid political stability: Growth fundamentals driven by a strong institutional base, encouraging government policy framework, private sector participation, large scale infrastructure initiatives—such as transport corridors, special economic zones (Sezs), and promising demographic dividends of sustained socio-economic transformation—paved the way for significant expansion of the real estate sector in the city.

From the late ‘90s to the mid-2000s, Hyderabad evolved as one of post-liberalization India’s global growth narrative, attracting investment from technology majors such as Microsoft, Oracle, Google and General Electric. The development of HITEC City (comprising software technology parks and Sezs), as an integrated technology township offering infrastructure support to propel the growth of the regional IT industry, led to significant development in locations such as Madhapur, Gachibowli, Kondapur, Manikonda and Nanakramguda.

Consequently, the total available commercial office space (led by IT/ ITeS) in the c i ty grew at a compounded annual growth rate (CAGR) of approximately 23 per cent between 2005 and 2008 to touch more than 23 million sq ft, with almost comparable absorption levels. Such healthy demand-supply dynamics amid positive market sentiments, drove office rental values northwards with the market peaking in 2008.

of Kondapur and Madhapur, among others (owing to their proximity to the commercial hub in the west). The city’s growth narrative was further strengthened by the inflow of foreign capital during this period; and foreign investment flows received by Andhra Pradesh (led by Hyderabad) during this period touched approximately $1.2 billion in 2008–09.

Setback to growth (2009-2013): Bifurcation amid weak global economic scenario: The announcement to create a new Telangana state in 2009 and the events unfolded post the announcement, amid a global economic downturn, significantly altered the growth prospects of the city—marking the beginning of a period of subdued growth in the middle of cautious investor and end-user sentiments.

Demand-supply dynamicsSlowdown in construction activity

and low commitment levels led to a decline in new space addition in the commercial office market, which grew by a CAGR of only about 11 per cent post 2008, to touch approximately 39 million sq ft at the end of 2013.

Increased vacancy levels were also witnessed in suburban and peripheral micro-markets, with total occupied space growing by just about 13 per cent during the period to touch approximately 34 million sq ft.

While the market grew, albeit at a slower pace, the demand-supply dynamics during this period was

anshuman magazine Chairman & Managing Director, South Asia CBRE

Page 9: Construction Industry Review

June 23-29, 2014 9eQuiPment

APAC CE market to grow by 22 pc during 2013-18

First Grove RT550E supplied in Singapore

Daiya Engineering & Construction Pte Ltd has taken delivery of the first Grove RT550E rough-terrain crane in Singapore. The 45 t capacity crane, which offers the highest capacity and longest boom in its class, at 39 m, has already been commissioned to build luxury villas in downtown Singapore.

Manitowoc’s local dealer, JP Nelson, supplied the crane to Daiya, which specializes in residential construction. The company chose the versatile and reliable Grove RT550E because it needed a compact crane that can access narrow roads and offer impressive reach, as Eric Foo, senior operations manager at Daiya, explains.

“The RT550E has a very long boom but a small footprint, and is quick and easy to set-up – it’s perfect for us,” he says. “We often have to travel down narrow roads and have limited time on site so we need a fast and reliable crane. We know that Manitowoc Crane Care after-sales support is on hand to keep us up and running – all of which gave us the confidence to buy this great new crane.”

Daiya’s Grove RT550E is currently working on a six-month project

building luxury residential homes on two job sites located adjacent to one another in downtown Singapore. The crane is moved between the two sites to lift a wide variety of general construction materials including sheet piling, steel bars, concrete and timber. Being moved regularly and lifting irregular loads means the crane’s fast set-up time is greatly appreciated and ensures the project continues to progress on schedule.

With many of its job sites located in congested areas, Daiya must minimize disruption to the local area.

The Grove RT550E’s new Crane Cont ro l Sys tem automat ica l l y configures boom length to suit specific loads and radii so operators can perform more lifts in a shorter

The construction equipment market in the Asia-Pacific (APAC) region is forecast to grow at a CAGR of 22.12 per cent over the period 2013-2018, according to a new market research report by Companiesandmarkets.

One of the key factors contributing to this market growth is the increasing investment in the infrastructure industry. The construction equipment market in the APAC region has also been witnessing an increase in adoption of construction equipment on a rental basis.

However, the increasing cost of construction equipment could pose a challenge to the growth of this market. Key vendors dominating this space include Komatsu Ltd, Sany Group Co Ltd, Caterpillar Inc, Hitachi Construction Machinery Co Ltd,

AB Volvo, Zoomlion Heavy Industry Science & Technology Development Co Ltd, and Doosan Infracore (China) Co Ltd.

Other vendors mentioned in the report are Chengdu Kobe Steel Construction Machinery Co Ltd, Guangxi Liugong Machinery Co Ltd, Guangxi Yuchai Machinery Group Co Ltd, Hyundai Group, Sumitomo Heavy Industries Ltd, XCMG Group, and Xiamen XGMA Machinery Co Ltd.

Though several organizations across industr ies prefer latest construction equipment technology in order to improve their productivity, several SMEs find it difficult to buy such equipment because of the high cost.

I n add i t i on , the inc reased competition among vendors is forcing

time, without compromising on the quality of the work.

The Grove RT550E’s 39m boom can be extended to 47 m using an 8 m fixed swingaway jib attachment. At 12 m long and 2.55m wide, the compact Grove RT550E is ideal for jobs that require a small footprint, but a high capacity.

Established in 1992, JP Nelson is a leading construction equipment company based in Singapore. The company supplies a wide range of cranes and provides comprehensive after-sales support for all Manitowoc cranes across the country.

Estab l ished in 1987, Daiya specializes in the construction of private housing. The company owns a small fleet of crawler cranes and boom lifts.

vendors to differentiate themselves from other vendors by providing innovative and value-added services. Therefore, construction equipment vendors are offering equipment on lease.

Hence , some cons t ruc t ion equipment vendors have started o f f e r i n g e q u i p m e n t s u c h a s excavators, wheel loaders, motor graders, crawler cranes, truck cranes, and truck mounted cranes on a rental basis.

T h i s a l l o w s c o s t - d r i v e n o r g a n i z a t i o n s i n d e v e l o p i n g countr ies to opt for the latest technology construction equipment at minimal cost, thereby improving their operational productivity. Thus, the option of renting construction equipment encourages customers to use a wide range of construction equipment.

The infrastructure industry in key developing countries such as China, India, and South Korea is expected to attract a high level of investment based on its various planned construction projects to develop the countries´ transportation, housing, and energy infrastructure facilities.

Further, a major challenge in the market is the increasing cost of construction equipment. The prices of construct ion equipment are increasing due to the rising prices of raw materials.

(L-R): Li Fook Seng, Manitowoc; Leonard Siow, JP Nelson; Eric Foo, Senior Operations Manager, Daiya; Tan How Sun, Machinery Coordinator at Daiya; Andrew Tan, Antar Crane Services (subsidiary of JP Nelson

New drive for CE, building-machinery

sectorPrime Minister Narendra Modi

is known for rapid decision-making and promoting the urgent need to invest. Indian and international trade associations, institutions and companies feel that his leadership could result in some promising possibilities.

Amit Gossain, President of the Indian Construction Equipment Manufactures’ Association (iCema), is optimistic. “We have a lot of hope from the new government which we are sure will work hard to ensure projects of national importance are on the ground very quickly. This will be good for infrastructure, for the equipment industry and of course for India,” he said.

Raman Joshi, Vice President & General Manager for Asia-Pacific at Manitowoc Cranes, said, “In an election year there is always uncertainty. Now that uncertainty is over and we can look ahead to some prospective developments that we hope will have a positive effect on our industry.

“With Mr. Modi’s strong background i n e c o n o m i c d e v e l o p m e n t , infrastructure, and creating a business-friendly atmosphere, we hope he will be able to drive through the necessary

changes to push the Indian economy to the next level.”

Sushanta Kumar Basu, President of the Builders’ Association of India (Bai), said, “Though the growth rate has stabilized recently, the initiative proposed by the new government will certainly rejuvenate the Indian economy to greater heights.” As Johann Sailer, Chairman of the Association for Construction Equipment & Building Material Machines in the German Engineering Federation (VDMA), confirms, the German market is also very positive about the results of the election.

“This is the first time since 1991 that a party has won an absolute majority, so the prospects for stability are quite promising. For now, that is having a positive effect on construction-equipment and building-machine manufacturers who do business in India. We are hoping that India will recover now. Prime Minister Narenda Modi is considered business-friendly, and expectations are high,” said Sailer.

In other words, the outlook for the industry and, therefore, for the Bauma Conexpo Show–bC India, which takes place at the India Expo Centre in Greater Noida/Delhi from December 15-18, 2014, is very positive.

Comansa Jie tower crane in the pool

The luxury hotel, the Royal Garden, in Hong Kong is located in Kowloon, an urban and modern district with one of the highest densities of population of the world. This 5-star hotel is a haven of peace in a full-of-life atmosphere, with narrow streets crowded of people and traffic. It is precisely this environment which meant a great challenge for the company Teamfield Building Contractors Ltd, responsible for the extension works of the hotel, which will grow from the current 12 floors to 15 floors by the end of the year.

Due to the requirements of the project, it was necessary to have a tower crane on the roof, but the height of the building and the narrow streets surrounding the hotel were quite an impediment to erect it.

At this point, the work of Linden Comansa’s official distributor in Hong Kong, Proficiency Equipment Ltd, was essential in order to move in the right direction. Proficiency Equipment worked closely with Teamfield to understand their needs, evaluate the difficulties of the environment and come up with the solution to all the problems.

Proficiency Equipment supplied to Teamfield a 10CJ140 tower crane from of Comansa Jie, Chinese subsidiary of Linden Comansa. Its modular and lightweight sections and components ensured a quick and easy erection, and by its technical features (maximum

load of 8 tons), the crane was ideal for the work on the roof of the ‘Royal Garden’ hotel, whose business will remain running during the entire construction progress.

And on the other hand, their experience in lifting jobs allowed Proficiency Equipment to devise a crane assembly system that was economically viable and that could follow a planned sequence to the millimeter, as due to problems with noise and traffic, they could only work from Monday to Friday from 10 am to 4 pm.

For the erection of the tower crane, two derrick cranes with 1 and 5 tons of maximum load capacity respectively were mounted on the roof. These two cranes were used to lift, from the side of the building, the components of a 16 ton roof crane, which once assembled, served to erect the Comansa Jie 10CJ140 tower crane.

The tower crane was required to sit over the roof without any hole drilling on the permanent structure. Therefore, a 6 meter folding cross base was placed inside the rooftop pool, saving a 1.27 meter drop in the swimming pool by using support pieces and leveling the base using the height-adjustable pyramids.

When a few tower sections were assembled, a hydraulic jacking cage was added to the tower, and finally the different sections of the rotating part were added.

Page 10: Construction Industry Review

June 23-29, 2014 10real estate

By granting the housing sector infrastructure

status, the new government will ensure that developers become

eligible for critical incentives and subsidies

It is not only India’s continued viability in the global sweepstakes that is at stake now. The very welfare of its people and a revival of their trust in their country are on the ‘critical’ list. Over the past few years, the confidence that Indians have in the power of a ruling government to revive its flagging fortunes has been seriously eroded.

Bureaucratic muddle, corruption and policy paralysis have become accepted norms. The arrival of a new and very proactive government at the Centre is the first sign of real hope for positive change.

Needs of industriesA country’s economic health

r ides on how wel l i ts pr imary industries perform. It depends on how encouraged these industries are to expand, how many jobs they create in the bargain, to what degree foreign funds are attracted and encouraged to invest in various industries, and how much consumption increases because of all these factors. The consumption sentiment is one of the

Infra status for housing sector

T h e f o r t h c o m i n g b u d g e t announcement by the Finance Ministry of the new government is a critical one. It will be the first step on the ‘walk’ that must follow the electoral ‘talk’ of economic recovery and ushering in new, growth-oriented policies for the country.

At this stage, every industry in the country -- from textiles to agriculture, from aviation and tourism, from manufacturing to banking and allied financial services, from pharmaceuticals to information technology, from telecommunications to healthcare and from retail to real estate -- depends on major fiscal reforms.

most critical, because it dictates how well various sectors will perform.

Real estate is just one of many major industries in India. A government focused on the country’s overall economic revival must consider the needs of all its industries. This holds true even if real estate is an industry that, unlike other industries such as electronics and luxury apparel, addresses very visible deficits. Residential real estate addresses the deficit for housing in India, while consumption of commercial real estate is directly related to how many jobs will be created in a certain city.

Benevolent taxationGiven that overall consumption

sent iment is the key, the new government will primarily need to present a budget that increases Indians’ financial confidence. To achieve this, it will have to introduce a more benevolent taxation regime.

Specific to boosting the real estate sector, the government must formulate and present a policy which provides clear and attractive tax

benefits to developers who are focused on affordable housing. At the same time, raising the income tax exemption limit for home loans from the current Rs 1.5 lakh to at least Rs 5 lakh would encourage Indians to buy more homes.

Such measures are very much within the purview of the upcoming budget, which must also ensure that it provides incentives to boost entrepreneurial spirit and generally help Indians to earn more, save more and invest more. It is axiomatic that the real estate industry, as well as various other industries, will see significant revival merely on the basis of such a rebooted climate of confidence.

Clearing hurdles Real estate faces several hurdles

other than flagging consumption sent iment that have harmed i t immensely over the past few years of sectorial slow-down. Clearing all these hurdles in a single revamp of existing policies would be extremely challenging, if not impossible.

However, one game-changing measure that new government can certainly undertake in the immediate future is to grant infrastructure status to the housing sector.

In the past, such a provision has proved to be a major turning point

for the real estate sector of many other countries, enabling them to significantly narrow their housing deficits. While such a measure would not fall within the ambit of budget announcement, it can and should be addressed in the ensuing parliamentary monsoon session.

So far, India has only provided infrastructure status to industries and companies involved in the development of ports, airports, highways, public transportation networks, etc. By granting the housing sector infrastructure status as well, the new government will ensure that housing developers become eligible for critical incentives and subsidies at the Central and state levels.

It will also mean that institutional lending to the housing sector becomes more liberalized -- banks will increase lending to housing developers, who will also be able to raise bonds to help generate funding for housing projects.

Kishor Pate CMD, Amit Enterprises Housing Ltd

The region’s real estate market is going to witness additional impetus on account

of the improved connectivity brought

by the expressway, and flyovers

residential developments have come up; importantly, there has been a spurt in new group housing society projects. Here, Omaxe, BPTP, Puri Construction, Eros Group and Ansals are some of the major developers with noticeable presence.

The average t icket s ize for apartments in Faridabad is around Rs 3,000-4,000 per sq ft. In most of the group housing projects, appreciation has been sluggish of late. The annualised appreciation over the past couple of years for housing projects in this region stands at around 8-10 per cent.

This is consistent with the overall trend seen in the NCR market, which has been significantly affected by negative economic sentiments, political uncertainty, high inflation and cost of borrowing and the liquidity crisis. The region mainly has

Momentum for Faridabad market

Far idabad began as a pure industrial town, with the majority of employment opportunities emerging from the industrial sector. There is now a gradual shift in trend, and the service sector is now picking up in the area.

Faridabad’s improved connectivity with key cities in NCR, primarily Delhi and Noida, has been favourable for its realty market. Lots of new

affordable housing in low ticket-size projects, with a few luxury projects.

Most affordableFaridabad is currently an end-

user/buyer market. St i l l among the most affordable markets in the NCR belt, unit prices and apartment sizes available in Faridabad suit the requirements of average households. Going forward, this region’s real estate market is going to witness additional impetus on account of the improved connectivity brought by the KMP Expressway, FNG flyover and the Badarpur flyover.

It can be said that developers have been somewhat over-enthusiastic when it comes to launching projects in Faridabad. In fact, demand for housing in Faridabad has been on the slower side because of the absence of an inherent ‘pull’ factor.

Faridabad has, for the longest

time, been a small industrial town. Unlike Noida and Gurgaon, it could never create appeal for corporates, so there was little demand for office spaces. Modes of employment other than industries were limited. Also, it is only in recent times that Faridabad’s connectivity with other key areas such as Delhi, Gurgaon and Noida improved.

Al l these factors resulted in average tract ion of resident ia l projects launched in the region. Besides this, Faridabad has always been an end-user driven market, and therefore off the radars of investors. This has resulted in limited activity in the real estate market of the region.

Many bu i lders operat ing in Faridabad tend to have l imited b a n d w i d t h , e x p e r i e n c e a n d resources to execute large-scale developments. This has resulted in delays in some of the projects; but then, we have also seen projects by Mahindra and BPTP approaching completion.

Construction qualityThe quality of construction in

Faridabad’s residential projects has so far been largely mid-grade. Since a majority of the projects are primarily aimed at mid-income consumers, maintaining affordability has been a priority for most developers with projects in this belt.

For low-margin budget housing projects, it is inevitable that builders will compromise on construction quality so as to safeguard their marg ins . De lays in approva l , i nc reased i n te res t r a tes and construction cost take a further toll. That said, the construction

qual i ty of most of the projects launched by BPTP and other leading developers is definitely average to above average.

The high incidence of consumer complaints emanating from the region is primarily due to the fact that Faridabad is end-user driven. In such a market, timely delivery of project, allotment of the right units, construction quality and other such issues become critical.

There have been delays in delivery of projects by leading developers in Noida and Gurgaon as well. However, these have not drawn much press since the investor interest in those projects was substantial, and investors are usually not very perturbed by such issues.

In an instance that has caused some negativity in the Faridabad market, BPTP -- the largest real estate developer in the Faridabad region, with a land-bank of around 1,500 acres -- has started selling constructed units as well as plots.

There have been reported cases of consumers being allotted plots different from the ones they were originally shown. This has impacted the c red ib i l i t y o f the pro jec t , despite the fact that there are no concerns when it comes to quality of construction and completion timelines for the projects.

santhosh Kumar CEO - Operations, Jones Lang LaSalle India

Page 11: Construction Industry Review

June 23-29, 2014 11internatiOnal

Damac Properties tops out Damac Tower in Beirut

Horizon Group launches $5 b development in Jordan

Damac Properties, a Dubai-based luxury property development firm, has topped out Damac Tower in the Solidere, Beirut, Lebanon. The $300 million project is being developed in collaboration between Damac Properties and Versace Home, the luxury brand from Italian fashion company Versace. Spanning 28 storeys, the building is the first exclusive Versace Home branded residential tower in the region.

The facade work has reached the fourth floor, while the block work is at the 21st floor, and interior design work is currently ongoing in the first five floors. The tower will have spacious private units with custom designed interiors by Versace, while all the common areas such as the health

Hor i zon Group, a p roper ty development and investment firm, has announced plans to launch $5 billion mixed-use development in Abdali, Jordan. The project is a joint venture between the government-owned real estate developer National Resources & Deve lopmen t and Ho r i zon International for Development, a construction conglomerate owned by Bahaa Hariri.

The jo int venture is a lso in partnership with the United Real Estate Company, which is part of the Kuwait Projects Company. Abdal i , to be constructed in a combined land and built-up area of 1.8km², is touted to be the largest mixed-use development project

and fitness facilities, the concierge reception and the main lobby will feature Versace Home products.

Damac Propert ies Managing Director Ziad El Chaar said that Damac Tower is right at the heart of Solidere, one of the most sought-after and desirable locations in the city. “Now that the project is topped off, we can get to work in earnest on the stunning Versace interior designs. We are at A very exciting stage of the development.”

“Damac Tower promises to bring to Beirut a never-seen-before top-end designer lifestyle and appeal to a clientele who know what they like and why they like it. They are stylish, with a passion for the dazzling and eye-catching,” added El Chaar.

ever constructed in the Jordanian capital.

The project will be divided into two phases. The first phase comprises a $423 million planned pedestrian walkway known as The Boulevard, covering a 26,539m² area running through the district and flanked by retail outlets, fashion boutiques, restaurants, cafés, luxury apartments and office spaces.

Abdali’s buildings are designed to have an average 30-metre height. It will house retail space of 22,000m², leasable rooftop areas and terraces of 18,000m², 120 retail outlets, 400 luxury service apartments, 30,000m² of offices and 1,700 underground parking spaces.

Nakeel seeks developers for Deira Islands project

Nakeel, a real estate developer in Dubai, has floated a design and build tender seeking contractors for its new Deira Islands project in Dubai. The 15.3km² Deira Islands development will include a large shopping mall, a souk-style Arabic market, several hotels, an amphitheater for 30,000 people and a marina that can accommodate large yachts, in addition to resorts and retail units.

The project will be completed in phases. Under the first phase, the

UK Chancellor George Osborne has announced plans to bui ld 200,000 new homes in Brownfield land near Bristol by 2020. As part of the plan, five sites have been identified including Tottenham Hale in Haringey, Southall in Ealing and South Poplar in Tower Hamlets.

Firstly, Osborne will put orders on local councils to pre-approve planning permissions on 90 per cent of Brownfield land by 2020. Initially, the government will spend £5 million

company has issued the design and build tender, which includes placing and profiling up to nine new beaches, construction of new coastal structures, completion of existing coastal structures, additional land reclamation and earth works.

In April Nakheel noted that it had appointed AE7 for the design and supervision services, including master planning and infrastructure design, for Deira Islands under a contract worth $7.6 million (AED28 million).

to help local authorities create the first 100 sites and then grow it to £500 million.

Osborne said this urban planning revolution will mean that in effect development on these sites will be pre-approved - local authorities will be able to specify the type of housing, not whether there is housing. And it will mean planning permission for up to 200,000 new homes -- while at the same time protecting the green spaces.

Skanska to build new Kosciuszko Bridge in New York

Atkins wins Puerto Rico airports contract

Chetwoods to build world’s tallest towers in China

S k a n s k a , a m u l t i n a t i o n a l construct ion and development company based in Sweden, has signed a SEK1.6 billion ($250 million) contract with the New York State Department of Transportation to design and build Kosciuszko Bridge.

The Puerto Rico Ports Authority (PRPA) has awarded Atkins a general engineering consultant (GEC) contract for airport projects. Atkins will help PRPA engineers, planners, and operations staff plan, design, procure, and supervise infrastructure projects for the next five years.

Joe Boyer, Atkins CEO, North America, said, “We have a long-term

British studio Chetwoods has unveiled a proposal to create the world’s tallest tower in the Chinese city of Wuhan, specifically intended to purify the city’s polluted air and lakes. Standing 3,281 ft tall, the Phoenix Towers have been commissioned by China’s Hua Yan Group to be an iconic attraction for a 47 hectare master plan occupying an island in one of Wuhan’s many lakes.

B o t h t o w e r s h a v e a s t e e l superstructure and concrete core

The total value of the project is worth $555 million.

Under the terms of the deal, Skanska wi l l design and bui ld new eastbound structures for the Kosciuszko Bridge to carry the Brook lyn-Queens Expressway

professional relationship with the PRPA, having designed and planned projects at nine out of the ten PRPA-owned airports in Puerto Rico over the past 16 years. The award of this new contract will further strengthen our relationship with the PRPA and enable us to bring a world-class team of experts to its grant projects.”

The PRPA is the governmental

and base. The tallest of the two towers contains multiple filtration systems for cleaning the water from the lake and the surrounding air as well as solar electricity plants.

The second structure features a perforated facade with a louvre system for ventilation and light control and features a large vertical garden besides regular amenities such as restaurants, galleries, bars and other leisure facilities. The towers will occupy a seven-hectare space.

UK plans 200,000 new homes in Brownfield

agency that develops, operates, and oversees all seaports and airports in Puerto Rico. The PRPA fist selected Atkins’ Puerto Rico-based business unit, Atkins Caribe, as PRPA’s GEC in 1997; the company was then reselected multiple times to provide comprehensive airport planning, engineering, and construction services for both commercial and general aviation airports.

A tk ins has a lso comple ted numerous projects to help PRPA’s engineering bureau execute its capital improvement program (CIP) and develop maritime transportation facilities and airfields.

Construction on the Phoenix Towers is slated to begin next year and is anticipated to take almost three year to complete. Upon completion, the towers are touted to be the world’s tallest structure, towering over 150 mt above the world’s highest building, the Burj Khalifa. The design of the towers is based on the traditional Chinese Phoenix -- two birds, male Feng and female Huang.

between Morgan Avenue in Brooklyn and the Long Island Expressway Interchange in Queens. Skanska wil l also be responsible for the demolition of the existing bridge structures and buildings on acquired properties to clear the right-of-way for construction activities.

The project also includes the reconstruction and realignment of local at-grade streets impacted by new construction or demolition activit ies; relocation of existing utilities from impacted local streets; and construction of a new drainage system and sewer facilities to collect and discharge storm water runoff from the new bridge structure.

Construction has already begun and is expected to complete in early 2018. Skanska will include its 45 per cent share of the project value, in order bookings for Skanska USA Civil for the second quarter of 2014.

Page 12: Construction Industry Review

June 23-29, 2014 12

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Mahindra Lifespaces launches ‘Happinest’ quality housing

Editor : Bina VermaEditorial Team: Dilip Phansalkar, Paresh Parmar, Remona Divekar Designer: Rajen Mistry

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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.

Mahindra Lifespace Developers Ltd (MLDL), the real estate and infrastructure development arm of the $16.5 billion Mahindra Group, launched its new business vertical on June 16 in Mumbai, focused on making quality housing at affordable prices accessible to a wider cross-section of people.

In keeping with the Mahindra Group’s philosophy of enabling people to ‘Rise’ while driving positive

Community. Happinest, an initiative by Mahindra Lifespaces epitomizes the concept of shared value where companies seek to do business in a manner which combines profitability with advancing the economic and social conditions of the communities which they operate in. I welcome this foray into the affordable housing space which is critical to India’s growing urbanization”.

Accord ing to A run Nanda , Chairman, Mahindra Li fespace Developers Ltd, Mahindra Lifespaces has always believed in pioneering new approaches and business models, be it the Mahindra World Cities or Green residential developments. “Happinest is our strategic endeavour to address the large and under-served home ownership market in India by using our manufacturing and innovation mindset to create mass solutions at affordable prices,” he said.

“India is urbanizing fast and more than a third of urban Indians cannot afford to buy their own homes. Happinest stands for our intent to enable a cross section of Indians fulfill their dreams of home ownership in a safe, secure and healthy environment. Enduring and thoughtful design, swift execution using technology and enabling access to home ownership through financial inclusion will be both the enablers and the pillars of success”, said Anita Arjundas, Managing Director & CEO, Mahindra Lifespace Developers Ltd.

Currently, Urban India has an estimated 19 million families either living in slums or in low income neighborhoods on rent and this housing deficit is likely to rise to

change, Happinest is aimed at families having a current, combined income of Rs 20,000 to Rs 40,000 per month. The first two projects will be launched soon in Chennai and the Mumbai Metropolitan Region.

Commenting on the launch, Anand Mahindra, Chairman, Mahindra Group, said, “Our commitment to sustainable urbanization is to be in businesses and develop projects that promote Culture, Connectedness and

eVentsJuly 11-13, 2014

India International Build Expo ChennaiChennai Trade Centre, Chennai,This event helps the professionals and experts of the industry to come together under the same roof and experience an ideal platform to network and interact with each other. Contact: Prompt Trade fairs (India) Pvt Ltd, 621, 3rd Floor, SIRE Mansion Thousand Lights, Chennai

August 9, 2014ManexeITC Kakatiya, HyderabadManexe is a 1-day event being held on August 9, 2014 at the ITC Kakatiya in Hyderabad. This event showcases various products and services related to the manufacturing industry and more, etc in the building construction industry. Contact: The Confederation of Indian Industry, 203-204, Sears Tower, Gulbai Tekra, Near Panchwati, Ahmedabad

August 15-17, 2014BACE Expo (Building Architectural Construction & Engineering Symposium & Trade Show)Milan Mela Ground, Kolkata BACE Expo will be held for three consecutive days at Milan Mela Complex, Kolkata. The key industry players and market leaders will discuss about modern tools and technology associated with the building and construction sector. Participants will discuss about growth of the real estate sector and build strategic business alliances with manufacturers and dealers. The prospects of some of the major construction projects in Kolkata will be highlighted. Some of the products that will be displayed include ceramic and stones, elevators, escalators, bath and sanitation. Contact: Ask Trade & Exhibitions Pvt Ltd, Flat 307, Alsa Towns Ville,170/38 Arcot Road, Valasaravakkam, Chennai

August 15-18, 2014Construction Architecture & Interior ChennaiChennai Trade Centre, ChennaiThe show is a 4-day event being held from August 15 to 18, 2014 in Chennai. This event showcases various products and services as well as equipment related to construction, architectural firms and interior design, latest designs and technologies and more in Building Construction, Architecture & Interior Designing. Contact: I ads and events Pte Ltd, 61, 1st Floor, Gold Towers, 50 Residency Road, Bengaluru.

September 11-13, 2014The Big 5 Construct IndiaBombay Convention Centre, MumbaiIt will provide the ideal platform for influential architects, contractors, consultants and engineers to share ideas about innovative construction tools and services. Contact: DMG: Events. PO Box No 33817 Dubai, UAE

October 4, 201419th One Full Day WorkshopThe Institution of Engineers (India), Mahalaxmi, Mumbai Workshop on Jirnoddhara of RCC buildings which contains Structural Audit, Upgrading (House - Keeping, Regular Maintenance, Repairs, Rehabilitation); Fixing Leakage and Waterproofing of existing RCC buildings and a total new concept to construct RCC durable buildings without leakage with practicals on acrylic polymer-based flexible membrane waterproofing system. Contact: Jayakumar Jivraj Shah, Single Faculty Course Conductor, 203, Wing-B, Lakshmi Apartments, Corporation Bank Building, Behind Anand Nagar, Dahisar (East), Mumbai 400068. Cell: 919819242649 Phone: 28483541/9819242649 [email protected]

December 4-6, 2014Ceramics AsiaGujarat University Exhibition Hall, Ahmedabad This event will be organized to enhance that potential by bringing industry professionals from different corners of the world under one roof. Ceramics Asia is going to be organized for three days at the Gujarat University Exhibition Center in Ahmedabad Contact: Unifair Exhibition Service Co. Ltd, Room 802-804, Daxin Building, 538 Dezheng North Road Guangzhou, China

December 15-18, 2014bC India ShowIndia Expo Centre and Mart, Greater Noida The International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines and Construction Vehicles-provides the international construction industry with a professional platform for the construction industry. Contact: B C Expo India Pvt Ltd, Lalani Aura, 5th Floor, 34th Road, Khar (West), Mumbai

38 million by 2030. Targeted at the large, under-served home ownership market in India, Happinest is built on three pillars of Trust, Better Living and Affordability.

Happinest homes are focused on offer ing i ts customers safe and secure neighborhoods with good transport connectivity in well planned developments. Addressing the cultural and social nuances of the target customer’s lifestyle has been an important element of the design process, like the provision of balconies, community spaces, etc. Design has also looked at energy conservation while ensuring that these homes are equipped to address the future lifestyle needs of customers.

The company has also invested

in innovations to ensure speedy execut ion and lower costs for i ts Happinest pro jects . I t has collaborated extensively with IIT Madras to validate a cost effective and innovative foundation and is using hybrid technology solutions to enable speed.

Ready-to-f i t components wil l be used thereby reducing on-site work and quality variation to enable faster delivery to customers. The building envelope is designed to ensure higher thermal insulation to reduce heat gain, while the window to wall area ratio has been kept to an optimum size for better climate control. All Happinest projects will be environment-friendly and continue to exemplify the Green development philosophy of Mahindra Lifespaces.

(L-R): Arun Nanda, Chairman, Mahindra Lifespaces Developers Ltd; Anita Arjundas, Managing Director & CEO, Mahindra Lifespaces Developers Ltd; and Anand Mahindra, Chairman, Mahindra Group


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