September 08-14, 2014 1

Volume 3 l Issue No 36 l September 08-14, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication

The Modi government is planning to start the process for construction of five smart cities by the end of the current f inancial year. The Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) is working on rolling out contracts for developing trunk infrastructure in Ahmedabad-Dholera investment region, Shendra Bidkin investment region in Maharashtra, integrated industrial township Vikram Udyogpuri in Ujjain, Madhya Pradesh, integrated

industrial township in Greater Noida, Uttar Pradesh and global city in Gurgaon, Haryana.

The DMICDC will invite international competitive bidding for developing trunk infrastructure including sewerage treatment and collection, water supply and roadways, among others.

The Centre will provide funds for the trunk infrastructure through DMIC Trust which has a corpus of Rs 17,500 crore to be utilized over a period of five years.

“The contract for Dholera and Shendra Bidkin investment region would be floated by December while that of Vikram Udyogpuri will be floated by October. The others would be done by January,” said a source.

The master plan for these cities has already been completed and accepted by the respective state governments while the land acquisition for these regions is underway.

For the Shendra-Bidkin industrial park, and industr ial townships

Centre to invite global bids for infra in 5 smart cities

in Greater Noida and Ujjain, the shareholder agreements and state-support agreements (SSA) have already been executed while they have been finalized for global city project in Haryana, said the source.

T h e A h m e d a b a d - D h o l e r a investment region is spread across an area of 902 km while the Shendra-Bidkin industrial park is spread across 84 km. The DMIC aims at enhancing

the country’s competitiveness in manufacturing by creating world-class infrastructure and reducing logistics cost.

It will create smart industrial cities by leveraging the western dedicated freight corridor to reduce cost of logistics. In the first phase the DMIC has taken up eight industrial cities on the recommendations of the respective state governments.

Nuclear deal with Oz will meet growing demand for uranium

The Ni t in Gadkar i - led Rural Development Ministry is drawing up plans to spend Rs 3.45 lakh crore to build nearly 30 million houses for the needy by 2022 under the National Gramin Awaas Mission. The Rs 50,000-crore-a-year programme that seeks to turn PM Modi ’s vision of housing for all into reality envisages even bigger allocation than the previous Congress-led UPA government’s ambitious rural employment generation scheme -- Mahatma Gandhi National Rural Employment Guarantee Act.

The goal is to include all rural families that do not have a pucca house under the new scheme that will eventually replace the Indira Awaas Yojana that covers only families below poverty l ine. A note has been circulated for inter-ministerial consultation, after which it will be sent to the Finance Ministry.

“The final note, with inputs from the Planning Commission and the Ministry of Drinking Water & Sanitation, will go to the Finance Ministry. Once approved, it will be taken up by the Cabinet,” said an official.

Experts say the government can achieve its target if the private sector provides funds. “States which have fiscal stability and enough funds will be able to keep pace with the Centre and may be able to contribute their share of 25 per cent, but for weaker states it will be difficult to contribute this kind of funds,” said DK Pant, Chief Economist, India Ratings & Research.

The scheme proposes to increase the unit cost by over 57 per cent from the current Rs 70,000 a unit to Rs 1.10 lakh a unit in plains and a hike of 67 per cent from Rs 75,000 to Rs 1.25 lakh per house in hilly or difficult areas.

The total number of rural houses to be built over seven years from 2015 has been pegged at 29.5 million, based on the Socio Economic & Caste Census 2011, excluding this year’s target of 2.5 million houses.

The overall expenditure to achieve the target works out at Rs 3.45 lakh crore, with an average cost of Rs 1.17 lakh per unit. The scheme promises to spur the various infrastructure sectors such as cement and steel.

Gadkari to spend `3.45 lakh cr on 30

million houses by 2022

The civil nuclear deal signed between Prime Minister Narendra Modi and visiting Australian Prime Minister Tony Abbott on September 5 would help India meet the ever-rising demand of uranium supply for power plants.

N Nagaich, Executive Director, the Nuclear Power Corporation of India, said, “This is a welcome step as India can expect a supply of uranium from Australia on a continuous basis. It is yet another diversified source and will go a long way in helping the continuous operation of reactors fuelled by imported uranium.”

The Department of Atomic Energy (DAE) has estimated India’s annual need for uranium would to increase to 1,600 tons by 2019, from the present level of 400 tons.

It will further rise to 2,000 tons by 2022. According to the DAE, India has l imited uranium resources. With the finding of new reserves in the Tummalapalle mines in Andhra Pradesh, the total capacity had shot up by 5 per cent. Apart from Andhra Pradesh, the other active uranium

mines are located in Jaduguda in Jharkhand. These reserves, however, are not enough to meet the increasing fuel demand.

At present, of 19 power plants with a total capacity of 5,870 mw, 9 operating reactors of 1,840 mw under the Internat ional Atomic Energy Agency are operating with imported fuel.

Since the Nuclear Suppliers’ Group has given uncondit ional waiver, India has so far imported over 2,000 tons of uranium.

At present, India is sourcing uranium from Russia, Kazakhstan and other suppliers. Besides, India has signed similar deals with Mongolia and Uzbekistan, which have 1,85,800 tons of proven uranium deposits.

Australia, which has 40 per cent of the world’s known uranium reserves, had lifted a long-standing ban on selling uranium to energy-starved India in 2012.

Sudhend ra Thaku r, f o rme r scientist of the DAE said the civil nuclear deal between India and Australia would further the process of

full international co-operation in civil nuclear power under international safeguards.

“While for India, the agreement diversi f ies sources for nuclear materials, for Australia, it will go a long way in increasing regional participation and providing a wider basket for i ts resources. There would not be any red tape in yellow business,” he noted.

Neelam Deo, Director of Mumbai-based Gateway House, said the nuclear cooperation agreement would strengthen bilateral and expand strategic cooperation between the two countries.

“India is Australia’s fifth largest export market, with total exports of $11.4 billion. There is a thriving Indian community of nearly 295,000 in Australia. Australia’s support will also facilitate India’s entry into the four non-proliferation regimes – Australia Group, Wassenaar Agreement, Nuclear Suppliers Group, and Missile Technology Control Regime,” she added.

Industrial Model Township, Manesar

September 08-14, 2014 3

September 08-14, 2014 4INFRASTRUCTURE

PM to review causes that thwart project progress

Infrastructure ministries are likely to inform Prime Minister Narendra Modi that credit squeeze, rising non-performing assets, delays in clearances and troubled land acquisitions are some of the factors impeding growth of the sectors they oversee.

T h e F i n a n c e M i n i s t r y representatives are expected to point out that rising number of non-performing assets (NPAs) is severely impacting lending ability of state-run banks. Gross NPAs of public sector banks increased from Rs 1, 64,462

crore to Rs 2, 27,264 crore at the end of March 2014.

The Financial Stability Report released by the Reserve Bank of India suggests that infrastructure, iron and steel, textiles, mining and aviation services added to the level of stressed advances.

Despite the RBI allowing the banks last month to lend to very long-term projects, with an option to refinance it periodically, there is no visible improvement in their risk appetite. This, despite the leeway provided to them for getting higher returns

on their bonds. The 11th Five-Year Plan had projected investment for infrastructure of about Rs 20.5 lakh crore, and Rs 41 lakh crore has been estimated in the 12th Plan, according to the P lann ing Commiss ion . Secretaries of power, steel, mines, roads and aviation ministries are l ikely to convey that greenfield ventures deserve more attention as difficult land acquisition, relief and rehabilitation and stringent green norms are emerging as challenges to successful execution.

No bidder for 7 highway projects

IRB Infra arm ties up `910 cr for NHAI project

The Modi government fixed an ambitious target of building 30 km highways every day — 10 km more than what the UPA government had set -- but miserably failed to achieve it. Now there are alarm bells ringing in the Ministry of Road Transport & Highways headed by Nitin Gadkari. Seven highway projects worth Rs 17,368 crore, bid out recently, failed to attract even a single bidder.

These included the big ticket Delhi-Meerut expressway and the Eastern Peripheral expressway that was bid earlier but had failed to impress potential developers. Coupled with the 21 projects worth Rs 26,550 crore that failed to get any bids in 2012 and 2013, the figure adds up to Rs 43,918 crore.

IRB Infrastructure Developers said its wholly-owned subsidiary Solapur Yedeshi Tollway has tied up Rs 910 crore for the concession agreement (project) it had signed with the National Highways Authority of India. The total cost of the project is Rs 1,492 crore.

The viability gap funding from

It’s not only the inability to attract bidders for big ticket projects that is giving sleepless nights to ministry officials. As on June 2014, a total of 49 projects worth Rs 53,993 crore are stuck or running way behind schedule, because of reasons including incapacity of developers to ramp up equity for projects, delay in land acquisition and failure to get environment and forest clearances.

In the last three years, 28 projects worth Rs 30,300 crore have been te rminated e i ther because o f concessionaires developing cold feet as they did not find the project viable any longer or the NHAI failing to get land and other regulatory clearances on time.

the NHAI is Rs 189 crore and the company’s equity contribution is Rs 393 crore, said IRB. A consortium of lenders with IDBI Bank Ltd as the lead institution, India Infrastructure Finance Company, Canara Bank, Union Bank of India, Corporation Bank and Indian Overseas Bank have financed the project.

India, Japan sign MoU to make Varanasi ‘smart city’

Ril returns Sez land to Haryana govt

Reliance Industries Ltd (Ril) has returned 1,383 acres of land to the Haryana government, which it had purchased for development of a special economic zone (Sez). The Sez was being set up by Reliance Haryana Sez Ltd, a joint venture between Reliance Ventures Ltd, a wholly-owned subsidiary of Ril, and the Haryana State Industrial & In f ras t ruc ture Deve lopment Corporation (HSIIDC).

Ril said that since the concessions offered to an Sez project, such as minimum alternate tax and dividend distribution tax, have now been withdrawn, this has made such projects unviable. The said Sez was proposed to set up a model economic township and other

infrastructure facilities where several global firms could come and set up shop, said Ril.

It added that the model township will continue to be developed on the directly purchased land based on the current concessions available for such a project. Ril had entered into a joint venture with HSIIDC in 2006 to set up a multi-product Sez in Haryana and the land was transferred to the JV in 2007.

Later, the project was approved in 2010 and work began. However, in 2011, the Indian government withdrew the concessions available to Sezs when Ril decided to walk out of the project. HSIIDC has also exited the JV, said Ril.

India pledges $100 m for Chabahar port

India has earmarked $100 million for upgradation of Chabahar port in Iran to improve trade with Afghanistan and other Central Asian countries, The port connects Central Asia with South Asia.

The money has been pledged by the Indian government, which is waiting for the technical committee to address some legal issues. While Afghanistan is allowed to export to India through Pakistan, India is not allowed to export to Afghanistan through Pakistan. Because of the

problems related to ports in Pakistan, India and Afghanistan decided to use the Chabahar port for import and export of goods.

“So we worked with the Indian government and all the three parties agreed that the Chabahar port will be upgraded and the two countries (India and Afghanistan) can operate and also do business with Iran,” said Shaida Mohammad Abdali, ambassador of Afghanistan to India. Chabahar port will provide India an alternative route for trade to Afghanistan.

PM Narendra Modi’s visi t to Japan began on a significant note, with an agreement being signed to develop his constituency, Varanasi, as a ‘smart city’ in cooperation with Kyoto. Kyoto, Japan’s ‘smart city’, is known for its confluence of heritage and modernity.

The signing of the Partner City Affiliation MoU (memorandum of

understanding), which marks the launch of the smart heritage city programme between the two nations, was overseen by Modi and his Japanese counterpart Shinzo Abe, who came to Kyoto from Tokyo to meet Modi. The pact was signed by Indian Ambassador to Japan Deepa Wadhwa and Mayor of Kyoto Daisaku Kadokawa soon after Modi’s arrival

for his two-day first leg of the visit. The MoU provides for cooperation

in her i tage conservat ion, c i ty modernization and cooperation in the fields of art, culture and academics, said Syed Akbaruddin, spokesman for the External Affairs Ministry. The pact is in line with Modi’s vision of building 100 smart cities across India.

Abdali also said that everything is in place from Afghan side to sign a pact with steel maker Ssil-led consortium for the proposed investments in setting up a steel factory among others there.

After winning bids for three iron ore mines at Hajigak in Afghanistan in 2011, a consortium of seven Indian steel makers led by Sail had proposed $10.8 billion investment in Afghanistan to set up a 6.2 mtpa steel plant in two equal phases along with an 800 mw power plant, besides creating the required infrastructure.

September 08-14, 2014 5IN pERSoN

KONE named as one of the most innovative companies

by Forbes

“We are working with a large numbers of cement companies where red mud can help them in controlling their SO2 emission level as well as replacement of laterite. Some companies have already started using red mud in bulk quantity ensuring optimum utilization of natural resources,” says Dr Mukesh Kumar, Group Head-Technology, Sesa Sterlite Ltd in an interview with Paresh Parmar

‘Red mud, fly ash boost ancillary industries’

What measures has Vedanta undertaken to manage red mud residue and fly ash?

We are the first company across the globe to set up a fully automatic Red Mud Powder Plant and today we don’t p0ump any Red Mud Slurry in the Red Mud pond. We are working with a large numbers of cement industries where red mud can help them in controlling their SO2 emission level as well as replacement of laterite.

Some companies have already started using red mud in bulk quantity and this way we are ensuring optimum uti l ization of natural resources. Simultaneously, we are working on numbers of projects like recovery of iron from red mud, titanium recovery, alumina recovery, etc.

On the fly ash front, although we are supporting large numbers of small scale industries for making fly ash bricks and fly ash construction products but our ultimate goal is to use fly ash for the production of valuable products l ike sil ica, aluminium or alumina as we feel fly ash is not a waste, it is one of our valuable resource.

What are the various measures undertaken for achieving and improving process efficiencies at your plant?

By installing Red Mud Filtration Plant, we could reduce our Caustic Soda Consumption by approximately 15 per cent. By upgrading our various systems and installing energy saving systems, we could minimize our energy consumption by more than 8-10 per cent. By making Alumina refinery as Zero Discharge refinery, we could reduce our water consumption by more than 30-35 per cent.

Similarly, we have developed techno log ies fo r r ecove ry o f Vanadium and thus helping in import substitution. On the alumina front also, we have developed system to utilize low grade ores like laterite for alumina production and thus are in a position to ensure optimum utilization of natural resources.

What message do you have for the industry and authorities?

Aluminium is a truly a green metal and only replacement to wood. Aluminium is the only metal which can be recycled infinite time without any loss. The energy consumed in recycling is just 5 per cent of the energy required in primary production of aluminium.

Thus, any increase in aluminium production is creation of an energy bank for the future. Waste from alumina refinery or aluminium smelter like red mud and fly ash helps in developing ancillary industries and save top soil by stopping use of soil bricks.

There is a need of removing myths being spread about bauxite mining and aluminium industry which can be achieved by having direct interaction between society, NGO, government and industries.

Most of the countries are utilizing their natural resources for bringing socio-economic development, but in India we could not accelerate the same in any of the eastern states which are mineral rich. Only industry may find it difficult to address the issue and hence support from all, which means, society, government, NGOs, environmentalists, etc. It is the need of the hour to unlock the potential of Indian mineral sector and particularly aluminium.

for recoveries of valuable products from waste, minimizing greenhouse gas emissions, and minimizing specific energy consumptions. We have taken up numbers of initiatives in these directions by developing innovative approach in house as well as with the support of external agencies of national and international repute.

Your outlook on the industry in India and globally.

The aluminium industry has faced a tough time in the past five years due to economic slowdown, increased raw material cost, reduction in demand, continuous drop in LME and above all mining issues raised in various countries, particularly in India.

Kone has been ranked 42nd out of the top 100 most innovative companies in the world by the well-known business magazine Forbes. Out of all European companies listed this year, Know was ranked an impressive sixth. It is the only elevator and escalator company featured on Forbes' list.

" I t ' s a great honour to be recognized among the world's most innovative companies for a fourth consecutive year," says Henrik Ehrnrooth, President & CEO of Kone Corporation. "Innovation and technological advancement have been at the core of our company for decades, and will continue to be moving forward."

Kone's history as an industry forerunner is well documented. In 1996, it was the first company in the industry to introduce machine-room-less elevators. The company’s latest groundbreaking solution is its new high-rise elevator hoisting

technology, Kone UltraRope (TM), enabling future elevator travel heights of one kilometer -- twice the distance currently feasible.

Last May, the company announced that the Kone UltraRope technology would be used in Saudi Arabia's Kingdom Tower building, expected to be the world's tallest building with a height rising over 1 kilometer once completed.

Forbes magaz ine 's rank ing is based on a metric called the ‘Innovation Premium’. One of the developers of the metric is Harvard Business School Professor, Clayton Christensen.

Kone’s production unit in Chennai produces elevators for the Indian market as well as for Bangladesh, Nepal and Sri Lanka. The production unit also manufactures components for modernization projects in other Asian-Pacif ic markets such as Australia, Korea, Singapore and Malaysia.

In the past few months, things have started improving and demand is picking up. We still feel that demand in India may continue to grow in double digit, that is, between 10-12 per cent and globally 6-7 per cent CAGR will be maintained.

India with more than 3.3 billion tons of bauxite reserves and more than 250 billion tons of coal reserves is an ideal location for setting up new aluminium-based industries. As per the Aluminium Mission Plan document released by the Ministry of Mines, the demand for aluminium may exceed 10 million tons per annum in the next one decade against the present production of approximately only 1.7 million tons. Hence, there is a need to bring more focus to tap the potential of aluminium industry in India which alone can generate millions of jobs.

Red mud filtration

Flyash Bricks

S imi la r p ro jec ts a re be ing undertaken on aluminium smelter for recoveries of aluminium from waste, minimizing fluoride emission, utilization of Spent Pot Lining, etc.

Sesa Sterlite is committed for a sustainable development and shall not leave any stone unturned to make its alumina and aluminium operation as amongst the best in the world in terms of environmental performance, operational efficiencies and above all safety and governance.

Your comment on R&D measures and technological upgradation plans.

Besides safety and governance, innovation & technology are the pr ime focus areas for a l l our operations. Our vision is sustainable development through minimization of wastes, optimum utilization of natural resources by employing environmental friendly technologies

September 08-14, 2014 6

NHAI to put GVK’s MP project for rebidding

After burning its hand with GVK Transportation, the National Highways Authority of India (NHAI) will soon put the Shivpuri-Dewas road project in Madhya Pradesh for rebidding. The project, first awarded to GVK Transportation in January 2012, was terminated by the NHAI due to the company’s failure to achieve financial closure for the project.

The project value, Rs 2,815 crore at that time, would now be Rs 4,000 crore owing to escalation in input costs, said a senior NHAI official. Even before the NHAI terminated the contract, GVK had walked out of the project, citing delays in getting various clearances.

Bids would be invited again on a build-operate-transfer (BoT) mode, for four-laning the 333-km section. The NHAI is hopeful there would be good response for the rebidding, because the stretch has good traffic, which means enhanced revenue potential for private players.

Under BoT, a developer builds a

project and operates it for a specific time period to recover its investment and earn a profit before transferring it to the government at the end of concession period, usually 20 or 30 years.

According to people close to the development, the company has renewed its bank guarantee for another year and a mutual decision between the company and the NHAI was expected to be finalized soon. A senior official in the NHAI said the authority was forced to issue the two notices since it could not proceed with development of the expressway project, which is part of NH-3 in Madhya Pradesh.

In a separate notice on debarment, the NHAI had said earlier this year that both the special purpose vehicle, GVK Shivpuri-Dewas Expressway Pvt Ltd, and GVK Transportation should furnish their replies on why they should not be debarred from executing other NHAI projects for a period of two years.

pRoJECTS UpDATE

China is keen to invest in the Indian railway sector, which is in dire need of modernization, a top Chinese diplomat said recently.

“It (Indian Railways) is too old and renovation is badly needed. China is seeking entry of its firms in developing high-speed trains,” said Liu Youfa, Chinese Consular General in Mumbai.

“ W e h a v e a c c u m u l a t e d construction capability. We also have the capacity to finance (projects). Eventual ly, Chinese companies would participate in bullet trains (project) as well,” Youfa informed.

The remarks assume significance as i t comes a day after Japan expressed its willingness in providing Ind ia f inanc ia l , techn ica l and operational support to introduce

bullet trains, a project that PM Modi has been actively pursuing.

“China takes all the credit (for trade surplus). But 70 per cent of China’s exports are controlled by FDI owners. China is trying to address the issue by encouraging two-way investments and joint production ventures,” he said.

China will set up two industrial parks in India -- one at Pune and another near Ahmedabad, in an area of about 6 sq km and 10 sq km, respectively.

The Ahmedabad park would focus on power transmission and generation equipment manufacturing, while Pune park, to be completed in three stages, on automobiles and ancillaries and witness an investment of $500 million, he said.

Hy’bad Metro cost run-up estimated at `3,000 cr

The Hyderabad Metro rai l is “estimated to face a cost escalation of Rs 2,500-3,000 crore”, mainly on account of rising costs of borrowing for the initially estimated Rs 14,132-crore project.

According to L&T Hyderabad Metro Rail Ltd Chief Executive & Managing Director VB Gadgil, “high interest rate on the loan amount is the single largest element” contributing to the cost escalation for the 72-km long elevated project.

L&T, the concessionaire for the project, however, is working out all options to minimize the impact of

rising costs, including a proposed arrangement for swapping of debt for low-cost funds and also external commercial borrowings (ECBs), said Gadgil.

L&T indicated it was in advanced stage of talks with lenders for swapping debt worth Rs 1,000 crore.

The project developer so far has spent around Rs 5,000 crore, including Rs 1,400-1,500 crore through equity infusion and Rs 3,500 crore, which came as bank loans. L&T is expected to infuse further equity in the project.

The pro ject is expected to generate 50 per cent of the revenues through passenger fare, 45 per cent from transit-oriented real estate development and the rest from leas ing the s ta t ion space for advertisements.

Meanwhile, Hyderabad Metro Rail Ltd Managing Director NVS Reddy said the ongoing test run involving seven trains, supplied by the Hyundai-Rotem venture of South Korea, across the 8-km stretch was expected to be completed by January 2015.

Japan to build India’s bullet trains with funds, technology

Haldia-Allahabad NW-1 to get $50 m WB boost

With Japan committing to fund bullet trains, the dream of running high-speed trains on Indian tracks is now a step closer. PM Narendra Modi’s dream project got a big push after Japan expressed readiness to provide financial, technical and operational support to introduce bullet trains in India in a joint statement.

The f irst high-speed train is expected to run between Ahmedabad

The Haldia-Allahabad riverine trade route will receive a $50 million boost and technical support from the World Bank to build requisite infrastructure and turn it into national waterways-1 for yearlong navigation.

“The Wor ld Bank ind icated i t s read iness to suppor t t he programmatic approach with an initial loan assistance of $50 million, including technical assistance for the first phase of the project,” said the

and Mumbai at an estimated cost of around Rs 60,000-70,000 crore.

As Japan is a pioneer in running superfast trains, the agreement is expected to help Modi achieve his dream of a bullet train for India running at a maximum of 300 km per hour.

“Lauding PM Modi ’s v is ion for development of world-class infrastructure in India, including high-speed railway system, PM Abe

Indian Waterways Authority of India (IWAI) member ( finance) and Project Director Pravir Pandey.

He said the exact f inancia l support from the World Bank could only be known once the detailed project report and environmental impact studies were complete for development of the NW-1.

“The current Rs 4,700 crore project cost is just an estimate for developing the 1,620 km NW-1 stretch from

EoI from China to invest in Indian Railways

expressed his hope that India could introduce Shinkansen system for the Ahmedabad-Mumbai route,” said the statement.

Railways officials associated with the ambitious project were enthused at the developments. “This is a very positive statement. Japan agreed to provide financial, technical and operation support,” said a senior official.

Haldia to Allahabad. Investment details will get greater clarity after related reports come which are expected in the next six months,” said Pandey.

Explaining the need for development of the waterway, Pandey said it would help in making the route navigable for the entire year against only for six months and increase cargo handling capacity of vessels to 1,200-1,500 Dead Weight Tonnage (DWT).

September 08-14, 2014 7

T h e C e n t r a l g o v e r n m e n t presented a forward looking and progressive Union Budget in July, which managed to touch upon all topical issues of reviving economic growth, attracting investments, churning out industrial production, promoting urban development, and creating infrastructure.

The Budget struck a fine balance between f i sca l p rudence and populism, and managed to provide the government’s thought process on contentious issues such as retrospective taxation and fuel/food subsidies.The real impact on the economy, however, will be upon investing all the funds allocated in the Budget through project implementations.

Clear indicatorMeanwhile, the Central Bank’s

move o f keep ing base ra tes unchanged in its latest policy review was widely expected as consumer price inflation remained a concern, and the impact of the Budget was yet to be felt across sectors.

Any reduction in base rates in coming months will be a positive indicator for the sector, spurring housing demand and construction activity across the country. Yet another positive policy initiative saw the government clearing up to 100 per cent FDI in railway infrastructure

REAL ESTATE

The guidelines issued by the Sebi signaled a positive move for

India’s capital markets as a whole, and its realty

sector in particular

Positive move for housing and office market

segments such as electrification, signaling, high speed and suburban corridors; while permitting up to 49 per cent in infrastructure and defense.

One of the most impor tant announcements for the real estate sector was that the Securities & Exchange Board of India’s (Sebi’s) issuing the f inal guidel ines for Infrastructure Investment Trusts and Real Estate Investment Trusts (Reits) in India. This signaled a positive move for India’s capital markets as a whole, and its realty sector in particular.

Office space updateCommercia l leasing act iv i ty

picked up in July, with leased space appreciating by about 10 per cent over the previous month. Although most of the demand was for small to medium-size office spaces, a few big ticket transactions were observed in Bengaluru —primarily in IT/ITeS, manufacturing, automotive and telecommunication segments. Bengaluru also remained the largest contributor to office space demand among leading cities, followed by Pune and Chennai, representing

about 84 per cent of the total space transacted during this month.

Occupier interest remained strong in micro-markets such as the Outer Ring Road (ORR) and Whitefield in Bengaluru; IT corridor in Hyderabad; Kharadi and Baner in Pune; and Guindy and Mount Poonnamalle Road in Chennai, with demand mostly driven by IT/ITeS firms for their expansion and consolidation needs.

Sez developments in Gurgaon, Benga lu ru and Chenna i a l so witnessed healthy take-up during the month. Going forward, a few large-size transactions are expected to reach completion in prominent tech parks along the ORR in Bengaluru.

Rental values remained largely stable across all micro-markets of leading cities. Locations such as ORR, Hyderabad’s IT corridor and Chennai CBD, however, are likely to undergo rental appreciation in the near term, owing to sustained occupier demand.

Housing market updateDuring the month of July, housing

sales remained muted and new supply saw a decline across leading

cities. A large majority of new projects were launched in the mid-segment, concentrated in micro-markets such as the Old Mahabalipuram Road/Grand Southern Trunk Road, Ambattur and Porur in Chennai; Marathahalli ORR, Old Madras Road, Whitefield, Hebbel, Thanisandra Main Road and Gottigere in Bengaluru.

In contrast, residential real estate activity remained subdued in Delhi NCR, Mumbai, Hyderabad and Kolkata during July. Meanwhile, Pune is likely to attract significant supply addition as part of the proposed township developments by prominent developers in the peripheral locations of the city.

Housing prices remained largely stable during July.

Owing to subdued demand levels, premium residential locations—such as Chanakyapuri in Delhi and Golf Course Road in Gurgaon—saw a slight price correction. Conversely, strong demand coupled with limited availability led to a price appreciation in central Chennai.

Organized retail spaceHigh streets across India’s leading

cities witnessed healthy demand

for retail space, while prominent shopping centres saw limited activity during July 2014. Demand was largely led by retailers from the F&B, fashion apparel and accessories segments. Global retailers such as Michael Kors and Giant forayed into Bengaluru, while Spa Ceylon launched its first India outlet in Mumbai.

Mumbai also witnessed space take-ups from numerous F&B brands such as the Social, Treesome Café, Gyros, Café Nemo and Aqaba across various high streets. In addition, Dunkin Donuts, Pizza Express, Café Coffee Day, Joss, and Venky’s, among others, expanded their operations across other leading cities during the month. Starbucks opened its first store in Chennai, followed by Hyderabad, taking the total number of its outlets to more than 50 in the country.

Rental values continued to remain stable across all micro-markets. Furthermore, the Department of Industrial Policy & Promotion (Dipp) is considering scrapping the 30 per cent domestic sourcing clause for FDI in single-brand retail, which is likely to increase foreign investment in f lows and ease the entry of foreign brands in categories such as clothing, electronics and luxury goods. Enforcing the sourcing clause is largely seen as a major deterrent by premium and luxury retailers seeking to enter the India market.

Anshuman Magazine CMD, CBRE South Asia Pvt Ltd

September 08-14, 2014 8REAL ESTATE

India’s top destinations for manufacturers

The country’s four big cities, each with its unique advantages for manufacturers,

continue to attract vast investment from both

Indian and foreign companies

difficult for manufacturing players to set up their plants in Mumbai. The Maharashtra Industrial Policy announced in Q2, 2013 has proposed to increase the permissible FSI at its industrial parks from 1.0 to 1.5 to help reduce the high cost co-efficient. This is currently awaiting consensus from the state government.

Accord ing to *DIPP data , Maharashtra saw industrial investment of INR 40,658 crore from 2010 up to October 2013 in the form of *IEM implemented, which is nearly 21 per cent of the country’s share in this period.

(*DIPP = Department of Industrial Policy and Promotion, Government of India

*IEM = Industrial Entrepreneur Memorandum.)

PuneOver the years Pune has grown

beyond its proximity to Mumbai -- a factor which, in addition to other inherent advantages that Pune holds for manufacturers, has attracted significant industrial investments.

The vast consumer base supplied by the city’s population of 6 million, availabil ity of skil led manpower from a huge base of educational institutions and availability of quality infrastructure as well as land make Pune a major industrial destination in the country.

Apart from being an established IT/ITeS destination, Pune has also evolved into a major manufacturing hub, especial ly with respect to the automobiles and engineering sector. Pune’s industrial pockets are primarily located in Chakan, Talegaon, Ranjangaon, Nagar Road and Khed.

Some o f major au tomobi le industries in Pune include Mercedes Benz, Volkswagen, Hyundai, General Motors, Bajaj, Toyota and JCB. These industries were followed by auto ancillary industries having presence across the state of Maharashtra. Addi t ional ly, FMCG and whi te

MumbaiMumbai accounts for a little more

than 6 per cent of India’s economy, contributing 10 per cent of the country’s factory employment, 30 per cent of its income tax collections, 60 per cent of customs duty and 20 per cent of central excise duty collections, and 40 per cent of foreign trade in corporate taxes to the Indian economy.

With a population of more than 20 million, Mumbai also happens to be one of the largest consumer markets in the country. Its connectivity to other major consumption markets like Pune, Nashik, Surat and Ahmedabad makes it all the more interesting as a destination for manufacturing operations.

Industrial locations in Mumbai are driven by 5 major corridors: NH–8 to Surat; NH–3 to Agra and Delhi; NH–222 to Andhra Pradesh; NH–4 to Pune, Bengaluru and Chennai, and NH-17 to Goa, Kerala and parts of Karnataka.

Most of the industrial representation in Mumbai is accounted for by old MIDC-developed parks. In 2013, the Malaysian oil giant Petronas Lubricants signed a land lease agreement with MIDC for over INR 300 crore investments into the Addl. Patalganga MIDC, and Idemitsu launched the first phase of commercial production of lubricants in Mumbai.

However, the very high land costs in Mumbai have gradually made it

goods manufacturing units l ike LG, Whirlpool, L’Oreal and ITC have contributed massively towards Pune’s establishment as a major industrial location.

The availability of industrial land in MIDC properties as well as private industrial parks and Sezs represents the biggest growth opportunity in this market. ‘Khed City’, a private industrial park and Sez spread over 4,500 hectares (located only 50 km north of Pune) and MIDC-developed Chakan phase-2 are two of the harbingers of Pune’s future growth as a major industrial destination in the country.

HyderabadHyderabad, be ing the jo in t

capital of the two newly-formed states Telengana and Seemandhra, con t inues to a t t rac t mass i ve investments in the manufacturing sector. Of course, the city is an established destination for the IT/ITeS sector, but its manufacturing foothold has also been growing exponentially in select sectors like pharma and biotech, aerospace and FMCG.

Hyderabad was one of the pioneers in patronizing the Life Sciences industry in India when it became home to Genome Valley in 1999 to attract R&D companies and synergize life science companies in Hyderabad.

Genome Valley, proposed at over 600 sq km, has seen significant investments f rom nat ional and international pharmaceutical and biotech companies, and hosts companies like Novartis, Biocon, Dr Reddy’s Laboratory, Aurobindo Pharma, Bharat Biotech, DuPont, Zenotech Laboratories (Daiichi), Sanzyme, Lonza, Nektar Therapeutics, Indian lmmunological, Biological E and United States Pharmacopeia, among others.

In the aerospace sector, Hyderabad hosts the GMR Aerospace Park for civil and defence aerospace players over 250 acres of land near the

existing Hyderabad airport. Among the major industrial companies there are LFG and Sky Shop, MAS-GMR Aerospace Engineering Company Ltd (MGAE), CFM Aircraft Engine Support South Asia Pvt Ltd (CFMAESSA) and Tata-Augusta–Westland.

Procter & Gamble, one of the largest FMCG companies in the world, has acquired around 170 acres of land in Mahbubnagar, 36 km from Hyderabad, making it one of its biggest manufacturing plants in Asia with an investment of INR 900 crore.

At this t ime, more and more industries are considering Andhra Pradesh for low land costs and incentives offered by the government there. According to DIPP data, the undivided state of Andhra Pradesh saw industrial investments to the tune of INR 20,871 crore in the period from 2010 till October 2013 in the form of IEM implemented -- projects completed on the ground -- which is nearly 11 per cent of the country’s share in this period.

Delhi NCRDelhi NCR, India’s largest urban

conurbation with representation of four different states and a population of nearly 50 million as pegged in 2011, is among the largest consumer markets in the country.

Th is a lso makes i t one o f India’s most attractive investment destinations. Excellent city connectivity to urban bases by MRTS and regional connectivity via a comprehensive network of highways ensure availability of labour force and efficient distribution of raw materials and finished goods in the NCR region.

The 3,658 acres of industrial area in Manesar have seen huge investments from manufacturers. In fact, one of the most developed industrial corridors in NCR is along NH-8, stretching from Manesar in Haryana to Neemrana in Rajasthan. The major industrial presence in this industrial corridor includes:

M a n e s a r : M a r u t i , H o n d a Motorcycles, Mitsubishi, Suzuki Powertrain, Timex India.

Dharuhera: Logwell Forge, Amul Sagar Plant, Copper Standards, Amtek Auto.

Bawal: Becton Dickinson, Reliance Infocom, Westend Fabrics.

Neemrana: Parle Biscuits, Liberty Whitewear, Hero Honda, Havells India.

Mega and large-scale investments are proposed in Delhi NCR with six industrial investment regions earmarked under the Delhi–Mumbai Industrial Corridor (DMIC):

Haryana: Node 3: Faridabad-Palwal Industrial Area; Node 5: Kundli-Sonepat Investment Region; Node 6: Manesar-Bawal Investment Region.

Uttar Pradesh: Node 1: Dadri-Noida-Ghaziabad Investment Region; Node 2: Meerut-Muzaffarnagar Industrial Area.

Rajasthan: Node 7: Khushkhera-Bhiwadi-Neemrana Investment Region.

Township lifestyle for utmost comfort An integrated township

is a haven for those people who earnestly desire to reside in a peaceful and quiet

community

city life and are going to enjoy life in brand news ways.

Gratifying lifestyleAn integrated township is a haven

for those people who earnestly desire to reside in a peaceful and quiet community. Integrated townships have zero crime rates, a significantly reduced density of population, quiet

Would you like to live in a township? Are you sick and tired of the anxiety, crime, pollution and other urban-related horrors and wish to adopt a more peaceful lifestyle surrounded by good friends and neighbours and the fundamental community values you grew up with? Then the integrated township life is definitely for you.

Shifting to an integrated township is always an exciting experience. After all, you are opening up an entirely new way of living for your family. What can be more comforting that the prospect of raising your children and caring for your elders in an environment of peace, serenity, safety and ultimate convenience?

Whatever your motives are for shifting to a township, you and your family are going to bid farewell to the cramped, polluted and stressful inner

Mumbai and Pune now prefer to live in this sort of environment. In fact, the lifestyle value that integrated townships offer extends from the youngest to the oldest members in a family.

Superior, safer and more engaging facilities for children make them the ideal place to grow up in. The availability of transport, shopping and

neighbourhoods, very low and highly organized traffic and the lowest possible pollution levels. Living in a township makes for a gratifying lifestyle, because all the goods and services that you and your family need to live comfortably are immediately available.

More and more families in cities like

conveniences within easy reach make them an answered prayer for working family members. And the serenity of green open spaces, facilities for community activities, security and healthcare make integrated townships the most desi rable ret i rement destinations.

Enduring optionImportantly, integrated townships

completely negate the possibility of unanticipated constructions in open areas -- a major pain point for people who bought homes with a view in other areas only to see these views obscured by a new project later on.

These many factors combine to make homes in integrated townships the most enduring residential options, and investment instruments that maintain incrementally grow their value over their entire lifecycle.

Arvind Jain Managing Director, Pride Group

Nirav Kothary Head, Industrial Services, JLL India

September 08-14, 2014 9EQUIpMENT

bauma Conexpo Africa in three-year cycle post-2015

the three-year cycle for the markets of Africa.

Elaine Crewe, CEO of organizers BC Expo South Africa, explained, “We made this strategic decision based on the many discussions we have held since the extremely successful premiere. The three-year cycle clearly positions bauma Conexpo Africa as the leading trade fair in Africa for the global construction and mining industry.”

Lawrence Peters, Chairman of Conmesa (the Construction and

M in ing Equ ipment Supp l ie rs ’ Association), is also pleased by the news. “As a local partner, we are pleased that the discussions were so productive and that the organizers of bauma Conexpo Africa decided to change the frequency of future events. The three-year interval suits the region because it depicts the market more accurately. It also gives local and international companies additional time to ensure that they are sufficiently prepared for the intense business activity at this event.”

Africa’s largest trade fair for the construction machinery and mining industry celebrated its premiere in 2013. The next bauma Conexpo Africa would be organised at the Johannesburg Expo Centre (JEC) from September 15 to 18, 2015.

Following next year’s exhibition, the event will move to a three-year cycle, meaning the next fair will then be held in 2018. This decision was made after close consultation with local and international industry representatives who recommended

Volvo’s EC480E crawler excavator for quarry applications

Volvo Construction Equipment’s EC480E crawler excavator is Tier 4 Final/Stage IV-compliant and combines efficiency, productivity and durability for maximum profitability in quarry and mass excavation applications.

According to the company, the heavy-duty Volvo EC480E crawler excavator lowers operating costs through reduced fuel consumption and simple maintenance requirements.

Powered by Tier 4 Final/Stage IV-compliant Volvo D13 engine, the

EC480E delivers high digging and breakout forces alongside reduced emiss ions and improved fue l efficiency.

The full electro-hydraulics are perfectly matched to the engine and controlled by an advanced system which provides on-demand flow and reduces power losses within the circuit.

“Volvo ECO mode contributes to the machine’s total improved efficiency — without any loss of performance

in most operating conditions. As well as improving fuel efficiency, this increases controllability for more precise performance,” said the company statement.

“The integrated work mode system offers the operator a choice of work modes according to the task at hand — including I (Idle), F (Fine), G (General) and H (Heavy) — for optimum efficiency and machine performance.

“When the controls have been inactive for a pre-set amount of time, the excavator can be programmed to automatically reduce engine speed or even shut down to further reduce fuel consumption and noise. Operators can keep track of both current and average fuel consumption via a simple gauge in the cab.”

The Vo lvo EC480E c rawle r excavator has been designed not only for ease of operation but also for simple maintenance. This ensures maximum uptime and minimum expenditure on parts and servicing.

T h e s t r o n g t h r e e - p i e c e undercarriage and high tensile steel X-shaped frame have been reinforced to ensure a long service life, while additional superstructure cover plates prevent damage to the underside of the machine from rock and debris.

Eight sets of Sany batching plants have been set up and started supplying readymade concrete to Algeria’s national highway project.

The construction starts from the Mediterranean Sea in the north of the country and runs through the Sahara Desert, and ends in the hinterland of central Africa. The highway carries strategic significance to the economic development and national security of Algeria.

The Chiffa section of the project is

contracted to a Chinese construction company. The section is 53 km long and is valued at over $1 billion, which includes 3 km of tunnel and 17 km of bridges. The beginning section of the project and of a controlling nature, the section features the most complicated geographic conditions and is the most difficult to build.

Within three months, all eight large scale batching plants by Sany were put to work, which helped in the scheduling of project.

Sany equipment for building Algeria’s national

highway

Liebherr MK 88 crane delivered to BKL BaukranLogistik

Terex MPS launches MJ47 jaw crusher module

Force Australia orders 40 Skyjack vertical masts

The Australia-based and one of the leading aerial equipment providers, Force Australia, has ordered 40 vertical mast lifts from Skyjack.

The l i f ts wi l l be put to work immediately on the construction of the Royal Adelaide Hospital (RAH). The build is the largest infrastructure project ever to be undertaken in South Australia.

“The equipment is reliable, easy to use, and has great customer acceptance,” explained John Glover, national service manager at Force Australia, one of the largest suppliers of access equipment in the Antipodes.

“Our customers look to us to provide them with equipment as and when they need it. More than that, they want solid, proven machines

that deliver consistently, so we’re continuing to grow our fleet with exactly that kind of equipment,” he added.

RAH is being built for the South Australian state government, and will be run by the SA Health Partnership Consortium. Force Australia says that the vertical mast lifts’ compact footprints and high manoeuvrability make them well suited to the busy project, offering subcontractors and other workers access to hard-to-reach areas.

Force Australia is to take delivery of an assortment of SJ 12 and SJ 16 models as part of the deal. The former has a work height of 5.48 m and a load capacity of 782 kg. The latter, meanwhile, has a work height of 6.68 m, and boasts a capacity of 966kg.

Both vertical mast lifts have a traversing platform of 0.41 m for greater access at height, and are able to work either above or over obstacles. The Skyjack lifts can be folded down to just 0.45 m.

A brand new Liebherr MK 88 mobile construction crane was recently delivered to the new site of BKL BaukranLogistik GmbH.

Site Manager Rainer Speich took delivery of the new taxi crane from Regional Sales Manager for Liebherr Mobile Construction Cranes Christian Schultze.

With the MK 88, Liebherr can now supply a compact four-axle model which provides massive load capacities and radius whilst being compact in size. With horizontal jib, the load capacity at the tip with a radius of 45.0 m is 1,850 kg. With its extended load curve and additional ballast, the MK 88 Plus can hoist up to 2,200 kg at its tip.

“The MK 88 mobile construction crane enables us to provide our customer with outstanding features

Terex Mineral Processing Systems (MPS) has unveiled its MJ47 jaw crusher module, which is the largest of its type to be released by the company to date.

The primary crusher module is designed for large quarries and contractors that require a stationary design without the complexity of a conventional stick-built plant.

for many applications, particularly where handling speed and a large radius together with constricted conditions is required,” said Site Manager Rainer Speich, explaining his company’s investment decision.

“Moreover, the Plus option with additional ballast increases its load capacity by around 10 per cent, enabling loads of up to 3,000 kg to be hoisted even with a radius of 35 metres.”

BKL BaukranLogistik opened its fourth site in June 2014. It means that the company now also has a presence in Ingolstadt in addition to its Munich, Frankfurt and Hanover sites. Currently BKL customers can select from six new Liebherr mobile cranes, an MK 88 Plus mobile construction crane with extended load curve and the company’s own trucks.

MJ47 module features a robust 0.91m x 1.22m Terex Jaques ST47 jaw crusher. Other features include Terex’s proprietary Simplicity 1.3m x 7.3m heavy-duty, double-deck vibrating grizzly feeder; a large-capacity truck dump hopper; a discharge conveyor; a heavy-duty galvanised I-beam frame; a wrap-around maintenance access platform; stairs; and guard rails.

The modular product line consists of several static and semi-static crushing and screening plug-and-play modules. Terex has endeavoured to shorten setup times and ease of operation through its simple product designs. The modules have been designed to fit and work together interchangeably. All of the add-ons can be bolted together onsite, and require minimal wiring.

September 08-14, 2014 10REAL ESTATE

Demand for homes in B’luru may rise by 3 pc

Rs 580-cr deal for real estate plan at Mumbai airport

Real estate development at the Mumbai international airport has taken off, with the Mumbai International Airport Ltd (Mial) leasing a 5.5-acre plot near the international terminal at Sahar to Oasis Realty for Rs 580 crore.

A hotel and office complex will be developed at the plot. Last year, Mial had sought bids for land parcels of 10 acres each. Overall, Mial will lease 200 acres for hotels, offices

and convention centres, under the SkyCity project.

“We had called for bids for four plots. The bids for two plots have been finalized; we will conclude the deals for the other two by the year-end. We are in discussion with developers and there is a lot of interest,” said Sanjay Reddy, Vice Chairman of the GVK group, which is developing the airport. The land was being used for airport works.

The demand in the residential space in Bengaluru is expected to rise from 57,366 units in 2013 to 59,300 units in 2014, signifying an increase of 3 per cent, according to real estate consultancy Knight Frank India.

The election results, revival of manufacturing activity, higher salary growth of IT/ITeS employees and various sops announced in the

Reddy said the deposit amount of Rs 350 crore would be used as pro ject f inance for a i rpor t modernization, while Rs 230 crore was the lease rent. The two land parcels awarded have been sub-leased for 23 years, extendable for an additional 30 years. Overall, about Rs 1,000 crore collected from real estate development will be used as project finance.

Union Budget of 2014 seem to have induced a positive change in home buyer sentiment.

The conversion time between a sales inquiry and actual sale has shortened considerably, indicating a revival in demand. While sales volume has improved somewhat in H1 2014, we expect it to strengthen even further in H2 2014, says KF in its report.

IDFC plans to raise `1,000 cr for commercial real estate fund

Unitech to sell non-core lands to improve cash flows

Multi-asset-class investment fund IDFC Alternatives is planning to raise over Rs 1,000 crore commercial real-estate fund, said a source. The fund manager is currently in the process of completing valuation of its two key assets, a Pune IT Special Economic Zone and another IT park in Noida.

The assets are estimated to be valued at more than Rs 1,000 crore together and IDFC Alternatives i s p l a n n i n g t o t r a n s f e r p a r t ownership of these two assets to the new commercial fund as part of the sponsor’s contribution. IDFC Alternatives, a private-equity arm of infrastructure finance company IDFC

Real estate firm Unitech will sell non-core land parcels to reduce debt by 15-20 per cent and improve cash flows for faster execution of ongoing projects, said company Chairman Ramesh Chandra.

Realty FDI players push for tax breaks in Reits

DDA launches housing 2014 with 25,000 flats

Large FDI providers in real estate have approached the Finance Ministry seeking tax changes to the current framework for Indian real estate investment trusts (Reits). The recently unveiled structure reduces cash in the hands of shareholders by almost one-fifth compared to a listing in Singapore.

The Reits allow investors to own shares in rent yielding real estate assets that are listed on the bourses. These investment trusts are touted as being potential game changers for the realty and infrastructure sectors, which are facing liquidity pressures.

The Delhi Development Authority (DDA) launched its much- awaited ‘Housing Scheme 2014’ offering over 25,000 flats across various categories, amid a huge response from the public. “The DDA Housing Scheme 2014 is now officially open. We are offering 25,034 flats in the scheme, out of which 22,627 are one-bed room apartments. Among others are 896 flats constructed after

Bu t t he cu r ren t t a x heavy framework could see some of India’s largest commercial assets owners like Embassy Office Parks, RMZ Offices and K Raheja Corp veering towards a listing in Singapore.

Global pension funds, sovereign wealth managers, and private equity houses like Canadian Investment Pension Plan, Qatar Investment Authority and Blackstone are prolific backers of Indian commercial assets. India has the potential to list about 170 million sq ft of rent-yielding assets through Reits, of the total 370 million sq ft of Grade A office stock in the country.

2010, with green technology,” said Balvinder Kumar, Vice Chairman, DDA.

The new scheme offers f lats ranging from Rs 7 lakh to Rs 1.2 crore across categories -- EWS, LIG, MIG, HIG, Janta flats and one-room apartments. The scheme would be open to applicants from September 1 and the last date to receive the application is October 9.

Ltd, raised Rs 750 crore for its first real estate fund, IDFC Real Estate Yield Fund. That fund is targeting under-construction residential projects in Delhi, Mumbai, Chennai, Bengaluru, Hyderabad and Pune.

IDFC Al ternat ives is one of the largest multi-asset-class fund managers with total corpus of Rs 14,414 crore. IDFC had set up the realty investment business in late 2010 to acquire majority ownership in leased and rent-generating IT parks and Sezs located in major office markets. The focus is on developments with high-quality tenants, which offer opportunity

Unitech currently has over 100 ongoing projects, totaling an area of 38.41 million sq ft. Its net debt stood at Rs 5,900 crore at the end of the first quarter of this fiscal. He also said that the cash flows of

f o r s t a b l e y i e l d a n d c a p i t a l appreciation.

In 2013 , IDFC A l te rna t i ves acquired a stake in the first phase of IT Sez BlueRidge at Hinjewadi in Pune from developer Paranjape Schemes (Construction) Ltd for Rs 250 crore. The first phase has a total of 1.45 million sq ft leased out space, while the entire project involves 2.6 million sq ft, including an integrated township. In 2011, the fund acquired a 1.36-million-sq ft fully developed IT park jointly owned by DLF and the 3C company in Noida for more than Rs 500 crore. The transaction was one of the first by IDFC.

the company were affected during last financial year due to adverse market conditions and consequent slowdown in sales.

Stating that Unitech has taken a conscious strategic decision to reduce debt exposure, he said the company has in the recent past undertaken sale of some land parcels for which it has no development plans in the foreseeable future to bridge the cash flow gap.

In June, Unitech had sold its 40 per cent stake each in four IT Sez projects for over Rs 1,300 crore to Canada’s Brookfield Asset Management. The Unitech chairman also emphasized on increasing the pace of delivery of projects. During 2013-14, Unitech posted a net profit of Rs 69.7 crore, while income from operations stood at Rs 2,933.3 crore.

September 08-14, 2014 11

HWH chosen to bid for news hospital in Scotland

High Wood Health, a consortium including Laing O’Rourke, has been named as the preferred bidder to build and manage a new £200 million general hospital in Dumfries, Scotland. The consortium has Laing O’Rourke as construction partner with Serco providing estate management services.

The consortium outbid Balfour

Beatty to secure the contract while Skanska, the third bidder, had already opted out of the process in November last year. Mott MacDonald and Keppie Design have been working as the project’s technical consultants since July 2012.

NHS Dumfries & Galloway CEO Jeff Ace said, “This is the major milestone that we have been working

towards for months now, along with two bidders who have produced the final designs for the kind of facility that we need so that our staff can deliver the best care possible for our patients. Construction on the facility, commissioned for NHS Dumfries & Galloway, is scheduled to begin by early 2015.”

INTERNATIoNAL

Tenders invited for phase-2 at Hong Kong’s Kai Tak airport

New luxury residential project for Dubai

Dubai-based developer Omniyat and construction firm Drake & Scull International have struck a partnership to build a new residential project at Palm Jumeirah, Dubai. Located at the entrance of the Palm Jumeirah, the property dubbed one at Palm will be jointly developed by both the companies and managed by Omniyat.

The luxury project will be designed by internationally renowned architects Soma from New York, Super Potato f rom Japan and Vladimir f rom Lebanon. The building apartments, T h e C i v i l E n g i n e e r i n g &

Development Department of Hong Kong has invited tenders for phase-2 at the southern part of the former runway in Kai Tak airport. The project will include construction of roads measuring about 2,300 mt in length in total, with a vehicular underpass and associated footpaths.

covering an area between 2,500 to 20,000 sq ft, will don finishes done by renowned interior designers and will be designed to offer 360-degree views.

Executive Chairman & CEO of Omniyat, Mahdi Amjad, said, “We believe this plot is the perfect location to build such an iconic development that will be a global collaboration with inputs from Dubai, Japan, New York and Lebanon. It will definitely stand out on the Dubai skyline. Enabling works on the project is scheduled to start within two months.”There will be a landscaped deck

structure of about 1,400 mt in length on top of a proposed dual two-lane road, integrated with roadside noise barriers, and with lifts and staircases. Other aspects of the project will include roadside noise barriers of about 1,100 mt long in total, integrated with the landscaped deck structure and with

Louis Berger bags airport extension contract in JordanLouis Berger has been awarded

a fourth contract extension worth over $15 million for independent engineering services at the Queen Alia International Airport (QAIA) in Amman, Jordan. The company will continue to offer independent engineering services to the rehabilitation and

expansion programme as part of this scheme.

The new project phase will include construction of additional passenger terminal area spanning 46,500 sq mt, 8 aircraft contact gates, 8 remote boarding gates, 10 moving walkways, 15 elevators, as well as 18 escalators.

These apart, there will be 4 super fixed link bridges that can handle either a single wide-body aircraft or two narrow-body aircraft simultaneously in arrival and departure modes.

The annual passenger processing capacity of the finished terminal will be 9 million, while the potential site capacity will be to process 12 million per year. Javier Gonzalez, Vice President of global aviation practice at Louis Berger, said, “We’re pleased to have been part of a critical infrastructure transformation that will allow Jordan to achieve its growth priorities by rehabilitating QAIA to become a more convenient, secure and affordable transportation hub for the region.

The project is slated for completion by mid-2016. The company earlier offered its services at the QAIA airport during the construction of a new 100,000 sq mt, 14-gate passenger terminal building and upgrades to existing airside and landside facilities.

provision for pedestrian crossings, open spaces and landscaping works on the landscaped deck.

The work, slated to commence in mid-2015, will be supervised by Aecom Asia. The project, carried out in phases, is expected to reach completion between end of 2017 and the first quarter of 2019.

62-storey tallest tower planned for Edmonton

KDDI to construct two data centres in Japan

Edmonton Arena District (EAD), a joint venture of Katz Group and WAM Development, has announced the construction of Edmonton’s tallest tower. This project is being designed, engineered and managed entirely by Stantec, which will also lease about 450,000 sq ft of the new building.

The 62-storey tower, measuring 746 feet in height, is touted to be one of the tallest structures in Western Canada. The mixed-use building, spanning almost 1 million sq ft, will house 26 levels of office space, nearly 320 residential units, and retail space.

The tower will feature a lobby opening directly into the public plaza while the top of the tower will feature an iconic design element, inspired by the personality of the Edmonton Arena District. The building will be designed to comply by Leed Gold specifications. Construction is slated to begin by end

Globa l te lecommunicat ions provider KDDI is set to invest $270 million in two new Telehouse data centres in Japan. The new data centres, dubbed Telehouse Osaka 2 and Telehouse Tokyo Tama 3, will expand global Telehouse data centre space to 3,71,000 sq m.

Both the data centres will provide high-density co-location services to enable hosting of heavy load IT infrastructure. The design of both the facilities will comply by tier-3+ data centre standards in redundancy and uptime. Moreover, the facilities

of 2014 with the building expected to open by mid-2018.

will have a long-period absorption structure which will make them less vulnerable to earthquakes.

Telehouse Osaka 2, situated in the centre of Osaka city, has been designed to serve as a disaster recovery and back-up site for the Tokyo data centres. The five-storey Osaka 2 Telehouse Tokyo Tama 3 is located on the existing Tama data centre campus, 30km from the Tokyo city centre in a heavily guarded surrounding. Telehouse Osaka 2 is slated to open in August 2015 while Telehouse Tokyo Tama 3 is due to open in February 2016.

Network Rail awards contracts for £250m

frameworkNetwork Ra i l has awarded

f ramework contracts to seven contractors for delivery of building and civil work on the Scotland and London north-eastern routes. The contracts, worth £250 million in total, will be delivered as part of Network Rail’s £38 billion investment programme to build a bigger, better railway from 2014-19.

The individual frameworks for the London north-eastern and East Midlands route will amount to a total of about £150 million while work on the Scotland route will be worth about £100 million. Work will involve over

1,000 maintenance, renewals and enhancements projects for earthworks, bridges, tunnels, footbridges as well as station buildings.

The frameworks will deliver benefits such as enhancement in safety levels, improvements in cost and quality and greater productivity through collaborative working. The frameworks will initially run for three years, following which if suppliers can ensure that work has been delivered safely and within budget, each of the contracts can be extended by another two years plus one further year.

September 08-14, 2014 12

Registered with the Registrar of Newspapers for India under No. MAHENG/2012/41844 Posted at Mumbai Patrika Channel Sorting Office, Mumbai - 400001, on Monday Published on Monday, September 08, 2014

Regd. No. MH/MR/South-355/2012-14WPP License No. MR/TECH/WPP-64/SOUTH/2013-14

EvENTS

Printed & published by Bina Verma on behalf of Asian Industry & Information Services, and printed at Amruta Print Arts, 205, Tantia Industrial Estate, J. R. Boricha Marg, Opp. Kastruba Hospital, Mahalaxmi, Mumbai 400 011 and published at 1st Floor, Feltham House, 10, J. N. Heredia Marg, Ballard Estate, Mumbai 400 001. Tel.: 022-2266 0623. Editor: Bina Verma Annual Subscription : Rs. 5,000/-

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

Business Team: Shantanu Baraskar (9820904795), Seema Kohli (9820904931) Email: contact@konstructionreview.com, editor@mmronline.com Designer: Rajen Mistry

No part of the contents of Construction Industry Review, in abridged or unabridged form, can be reproduced without the written permission of the Editor. CIR does not accept any

responsibility for statements and opinions expressed by the authors.

EvENTS India-Sweden innovation programme sees scope in renewable energy

Solutions designed by WeSchool students in collaboration with Swedish Cleantech companies during the India-Sweden Innovations’ Accelerator programme

T h e ‘ B u s i n e s s S t r a t e g y Development Competition’ under the aegis of the India-Sweden Innovations’ Accelerator (ISIA) programme was successfully concluded recently at WeSchool, Mumbai.

Teams f rom WeSchool and the Institute for Future Education, Entrepreneurship & Leadership (iFEEL) presented future-proof business models and strategies on renewable/green energy that can be implemented especially in the energy-starved rural India.

The business ideas designed by students’ teams were evaluated by an external jury panel comprising Ludvig Lindstrom, Country Director, India, Swedish Energy Agency; Dr Anjali Parasnis, Associate Director, Western Regional Centre, Teri; Srikant Illuri, Executive Director & Country Head Investment, Business Sweden; and Dr Christer Nygren, Professor of Innovation at Malardalen University, Sweden.

Participants were evaluated through a rigorous process on parameters like originality of ideas, clarity of thoughts on financial and marketing aspects.

The winning team of Virendra Singh Shekhawat, Sagar Deshmukh, Shashank Angadi and Omkar Ranade presented a business plan for Exeger, a Swedish company that produces dye-sensitized solar cells.

These cells can be affixed to the massive glass frontages of skyscrapers for garnering and storing solar energy which can be used by the building,

thereby not only creating solutions towards sustainability and saving of costs but breaking new grounds, by moving closer to the goal of liberating devises from the grid, making them self-powered.

The WeSchool team provided a detailed roadmap for Exeger, developing business strategies to ensure utmost support to their respective partner companies and adherence to timelines, thereby developing the best business solutions to enter the Indian market with their product.

The winning team will be rewarded with a fully sponsored 10-day internship giving them an overview of corporates in the green energy sector in Sweden. The first runner-up team devised strategies for FOV Biogas (provides customized biogas solutions) and two teams that worked with the Swedish corporate -- Clean motion (electrical vehicle manufacturer) and Hi Nation (solar panels producers) bagged the

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

September 19-21, 2014 Automation & Robotics Expo 2014 The Auto Cluster Exhibition Centre, Chinchwad, H-Block, Plot C-181, Chinchwad, Pune 411019 An international automation & robotics conference & exhibition showcasing one of the best available technologically empowered equipment, machineries & services catering to Factory Automation, Robotics, Industrial Automation, System Integration, Field Automation, Drives and Controls, Logistics, Hydraulics and Pneumatics, Building Automation, etc. Contact: IBK Media, 224 Pranik Chambers, Sakivihar Road, Sakinaka, Mumbai 400072 Tel: +91-22-28574011 web: www.ibkmedia.com

October 4, 201419th One Full Day WorkshopThe Institution of Engineers (India), Mahalaxmi, Mumbai Workshop on Jirnoddhara of RCC buildings which contains Structural Audit, Upgrading (House - Keeping, Regular Maintenance, Repairs, Rehabilitation); Fixing Leakage and Waterproofing of existing RCC buildings and a total new concept to construct RCC durable buildings without leakage with practicals on acrylic polymer-based flexible membrane waterproofing system. Contact: Jayakumar Jivraj Shah, Single Faculty Course Conductor, 203, Wing-B, Lakshmi Apartments, Corporation Bank Building, Behind Anand Nagar, Dahisar (East), Mumbai 400068. Cell: 919819242649 Phone: 28483541/9819242649 jjshah123123@rediffmail.com The Institution of Engineers (India), Mahalaxmi, Mumbai Phones: 022-23543650/23542943 Mobile: 09820392726

November 6-8, 2014ConMac 2014Khanapara Grounds, Guwahati, Assam In order to provide a platform for the construction equipment industry and to showcase the technology available for accelerating infrastructure development of North-East India, the Confederation of Indian Industry (CII) will present ConMac 2014, a construction equipment & construction technology trade fair. The Indian Construction Equipment Manufacturers’ Association (ICEMA) is the sector partner for the event. Contact: J I Mahesh Kumar Tel: +91-9789814046 j.i.maheshkumar@cii.in www.conmac.in

November 13-15, 2014,World of Concrete India 2014HITEX Exhibition Centre, Hyderabad Business opportunities, networking services, one-to-one meeting with potential customers and presentation of some of the important products like aggregate processing, aggregates, anchors & fasteners, batching equipment, cleaning materials & equipment, coatings inspection, measurement, coatings, stains, sealers, computer hardware, software, cranes, cutting & drilling, decorative concrete, demolition equipment & materials by the exhibitors will be some of the highlights of this event. World of Concrete India will be attended by construction engineers, technical and professional experts related to concrete industry. Contact: Vivek Tyagi, Project Manager, Inter Ads Exhibitions Pvt Ltd. Tel: +91-124-4524207, +91-124-4524219 (M) +91 9871367808 Fax: +91-124-4524234 vivek.tyagi@interads.in http://worldofconcreteindia.com

December 3-6, 2014IMME 2014Salt Lake Stadium Grounds, Salt Lake, KolkataThe event provides an ideal forum for miners, planners and policy makers to discuss various issues affecting the mining industry in the Asian region in particular, and also in the rest of the world. The event provides an excellent business opportunity for manufactures of mining and allied industry to showcase their technologies, new initiatives, products and services to global audience.The event is a unique platform for entrepreneurs, government officials, investors, traders, equipment buyers & suppliers, miners, engineers and son. Contact : J I Mahesh Kumar Mob: +91 9789808994 Email: j.i.maheshkumar@cii.in

December 5-7, 2014Zak Glass Technology Expo 2014Pragati Maidan, New DelhiZak Glass Technology is the most important event for the glass industry in India and South Asia. It is the leading fair for glass and glazing technologies. As the most important communication platform for the glass industry, the show provides with everything that a special fair has to offer. It is an ideal place to find new, innovative and exciting products related to the glass industry. Contact: Samrendra Kumar, Asst Manager, Zak Trade Fairs & Exhibition Pvt Ltd, F-25, Ground Floor, Kalkaji, New Delhi 19 Mob: +91 99530 02884 samrendra.kumar@zakgroup.com www.zakgroup.com

second runner-up position.Prof Dr Uday Salunkhe, Group

Director, WeSchool congratulated the participating teams and said, “It is heartening to see such innovative ideas coming from management students for a sector like renewable energy which is so crucial for socio-economic prosperity of India.

“If India has to provide energy for all by 2022, we have to work on all fronts; with newer and innovative technologies, research and international cooperation to bring the alternate sources of energy into mainstream.

“With foreign investors eager to enter Indian markets, joint initiatives like India-Sweden Innovations’ Accelerator play a crucial role in sensitizing the young talent to the constraints and challenges in the sector and design solutions to circumvent them. And they have come up with brilliant suggestions in the shape of sustainable business models.

“I strongly believe that India Sweden Innovations’ Accelerator (ISIA) is a step in the right direction wherein students can work on challenges and opportunities leveraging mutual strengths and solutions created by them will design a better future for India and the planet.”

The winners with Dr Christer Nygren, Professor - Innovation Malardalen University; Ludvig Lindstrom, Country Director - India Swedish Energy Agency; and Dr Uday Salunkhe