RBI Relaxes Financing Norms for Infra, Affordable Housing

July 21-27, 2014 1
An MMR, Braj Binani Group Publication Volume 3 Issue No 29 July 21-27, 2014 Price: Rs 100
RBI relaxes financing norms
for infra, affordable housing
will be encouraged to extend long-term
loans to the infrastructure sector with
flexible structuring to absorb potential
adverse contingencies, sometimes
known as the 5/25 structure.’’
The benefits available to the banks
for the first year (FY15) could be limited
to 6bp of assets at pre-tax level which
may rise to 16bp over three year period
(by FY17), estimates Emkay Global
Financial Services Ltd.
The research firm said, “For IDFC
the advantage in FY15 will be 34bp
since it will be allowed benefits on 16
per cent of the old loan book in the first
year itself given than 16 per cent of its
bond borrowings have maturity of at
least more than five years. Assuming
that banks pass on the benefits to
borrowers, the relaxation may not
impact the RoAs at all.”
The Reserve Bank of India (RBI)
issued guidelines for relaxation of the
Cash Reserve Ratio (CRR), the Statutory
Liquidity Ratio (SLR) and Priority
Sector Lending (PSL) requirements
for long term bonds issued to finance
infrastructure loans.
“Banks can issue long-term bonds
with a minimum maturity of seven
years to raise resources for lending to
(i) long-term projects in infrastructure
sub-sectors, and (ii) affordable
housing,” stated the RBI.
The RBI said that apart from what
is technically defined as infrastructure,
affordable housing is another segment
of the economy which requires long-term
funding.
The instructions are in pursuance of
Finance Minister Arun Jaitley’s budget
speech in which he had said “banks
Under the 5/25 structure, a bank
may fix longer amortisation period for
loans to projects in infrastructure and
core industries sectors, say 25 years,
with periodic refinancing, say every
five years.
The RBI issued instructions to banks
specifying operational guidelines and
incentives in the form of flexibility in
loan structuring and refinancing. It
granted exemptions from regulatory
pre-emptions, such as, the CRR,
the SLR and Priority Sector Lending
(PSL).
As per the RBI regulations, banks
are required to keep a portion of
deposits at CRR with the central bank
and park certain portion in government
securities known as SLR.
“The objective of these instructions
is to mitigate the Asset-Liability
Management (ALM) problems faced
by banks in extending project loans
to infrastructure and core industries
sectors, and also to ease the raising
of long term resources for project
loans to infrastructure and affordable
housing sectors,” said the RBI.
Banks have been seeking
permission for longer tenor amortisation
of the loan, say 25 years, with periodic
refinancing of balance debt, said the
bank. It further said rupee denominated
bonds should be issued in ‘plain
vanilla form’ without call or put option
with a fixed or floating rate of interest.
Lending for affordable housing
means loans eligible under the priority
sector, and loans up to Rs 50 lakh to
individuals for houses costing up to Rs
65 lakh located in the six metropolitan
centres. For other areas, it covers
loans of Rs 40 lakh for houses with
values up to Rs 50 lakh.
Further, the RBI said that while
banks have been raising resources
in a significant way, issuance of
long-term bonds for funding loans to
infrastructure sector has not picked up
at all. Infrastructure and core industries
projects are characterized by long
gestation periods and large capital
investments.
The long maturities of such project
loans consist of the initial construction
period and the economic life of the
asset/underlying concession period
(usually 25-30 years).
The realtors’ body Credai hailed
the RBI’s move to ease norms for
banks to raise long-term funds for
financing affordable housing, saying
this would lead to cheaper credit for
such projects.
“It is a welcome step. This will lead
to lower interest rates for affordable
housing projects,” said Credai
Chairman Lalit Jain.
Jain demanded that the housing
sector should be given the infrastructure
status and felt that Pune, Ahmedabad
and Lucknow should have figured in
the list of metropolitan cities.
Another realtors’ body Naredco
Chairman Navin Raheja said this
would help developers to mobilize
cheaper finance for development of
affordable housing and will result into
cutting in prices of housing in long
term.
Conversion of agri land
in cities to boost realty
The Maharashtra government’s
move to simplify the process to
convert agricultural land into non-agricultural
holding in municipal
limits will boost the realty sector.
For instance, thousands of hectares
in Pune’s fringes slated for merger
in the city limits will be available for
construction.
Owners of agricultural plots in
the city’s limits will no longer have to
take prior permission of the collector
for conversion of agricultural land.
The collector’s approval, which was
obligatory, had given rise to criticism
of undue delays and corruption.
Before the state government’s
decision it was a must for an eligible
person to apply to the collector for
permission to convert the use of
agricultural land for non-agricultural
purpose
Real estate experts say that Pune
is growing at a faster pace than ever
before. People are flocking to the city
from all over India, increasing the need
for homes and commercial properties.
The government’s decision has come
as a shot in the arm for the realty
sector, they said. Once the merger
is complete, thousands of acres of
farmland in 34 villages will be available
for development.
The old city area of Pune has no
agricultural plots. The 23 villages
merged in the civic limits in 1997 hold
some green patches. According to the
Pune Municipal Corporation’s (PMC)
land-use survey, the city has 5.52 per
cent of land marked as agricultural
plots.
The PMC has already converted 938
acres of agricultural land in Mundhwa
to residential use, paving the way for
more construction. Mundhwa, largely
agrarian till the conversion of land
use, grew sugarcane on vast tracts.
The civic body has also approved
proposals to convert other agricultural
patches in Lohegaon, Pashan and
Sangamwadi for residential use.
“Residential properties in and
around city will get a boost. Along
with the merged villages, the city’s
fringes will witness a construction
boom as the state government has
already approved the expansion of
the existing boundaries of ‘gaothans’
(village sites),” said a senior state
town planning official.
However, the state’s move has
raised concerns about land-use
patterns, environmental degradation
and decline in agricultural produce,
resulting in food security issues.
Veteran city activists like Sulabha
Brahme and Medha Patkar have
earlier pointed out that tribal areas of
Pune, Thane and Nashik districts have
not been spared of urbanization. The
tribal communities are being deprived
of their means of livelihood and the
land under cereals and pulses is
declining, threatening food security,
they said.
27 Sez developers
seek leeway to
execute projects
As many as 27 special economic
zone developers, including Gulf Oil
Corporation, Navi Mumbai Sez and DLF
Info Park have sought more time from
the Centre to execute their projects.
These proposals will be taken up
for consideration by the Board of
Approval (BoA), headed by Commerce
Secretary Rajeev Kher, in its meeting.
Some developers have cited reasons
like imposition of minimum alternate tax
(Mat), poor response of entrepreneurs
for setting up unit due to global
economic slowdown, problems of
land acquisition and environmental
clearances for delay in implementing
projects. DLF Info Park (Pune) Ltd
has sought further extension of the
validity period of formal approval,
granted for setting up of IT/ITES Sez in
Maharashtra, according to the agenda
of the BoA meeting.
Similarly Navi Mumbai Sez Pvt Ltd
has sought more time for its proposed
zones in Maharashtra. Besides, the
Board will take up the proposal of
Adani Ports and Special Economic
Zone Ltd, which has proposed to set
up a multi-product zone in Gujarat.
Development Commissioners
of special economic zones have
recommended cancellation of ‘formal
approval’ granted to as many as 43
Sez developers, including Reliance
Infocom Infrastructure and Emaar MGF
Land Ltd. The BoA would also take a
decision on these applications. Sezs
are mainly export hubs which enjoy
certain tax benefits. But imposition
of Mat has impacted the investors’
sentiments. Over the last few years,
many Sezs have de-notified their units.
However, the government is
expected to announce some package
for revival of investors’ interest in these
zones. Of the 566 formally approved
Sezs, only 185 are in operation.
Exports from these zones increased
from Rs 22,840 crore in 2005-06 to Rs
4.94 lakh crore in 2013-14.
Representation only

DOMESTIC July 21-27, 2014 2
Mamata Banerjee opens OCL
India’s cement plant
in W Midnapore
OCL India Ltd, the flagship
associate company of Dalmia
Cement Bharat Ltd commissioned its
cement manufacturing unit (Bengal
Cement Works), at Godapiasal
Industrial Park, West Midnapore,
West Bengal, on July 15.
Spread over 154.43 acres,
the plant has been set-up at an
investment of Rs 615 crore, and it
marks the initiation of the company’s
investment cycle in West Bengal.
OCL India already has two cement
plants at Cuttack and Rajgangpur in
Orissa with a combined production
capacity of 5.35 mtpa.
The plant was inaugurated by
Chief Minister Mamata Banerjee
in the presence of Puneet Dalmia,
Director, OCL India.. The Bengal
unit will help in adding significant
revenue to the state treasury in terms
of taxes.
It will also provide domicile
employment and income generation
for skilled and semi-skilled local
pool in the district. As part of the
Corporate Social Responsibility
(CSR) programme of the group,
peripheral community development
works in terms of roads, bridges,
health, and education facilities will
be undertaken.
Commenting on the occasion,
Dalmia said, “Bengal’s economy has
impressively withstood the continuing
slowdown in economic growth in
previous years and currently is on
a high growth trajectory. We want to
grow in Bengal to create a market
enduring goodwill by benefitting both
our buyers and investors.
“ T h e c u r r e n t b o o s t i n
industrialization in the state has
prompted us to replicate our success
of Rajgangpur and Cuttack, in Salboni.
We plan to scale up our presence in
the Bengal market by completing the
first phase of investment in the plant.
Our high-capacity plant located
strategically will ensure timely and
faster delivery of cement across the
state, a significant emerging market
for infrastructure development and
thereby the cement industry.”
OCL India is one of the leading
cement players in east India cement
market. Eastern India contributes to
Shalimar Paints appoints
Shankar Subramanian
as Vice President
for decorative business
Shalimar Paints Ltd, one of
India’s leading paint manufacturing
companies, has appointed Shankar
Subramanian as Vice President for
its decorative business. In this role,
he will be responsible for growing the
company’s decorative business and
add to the leadership depth of the
company.
The Indian paint industry is valued
at approximately Rs 30,000 crores with
decorative paints constituting two-thirds
of the market and the remaining,
industrial. Buoyed by growing
urbanization and changing lifestyles,
the decorative paints segment is
registering faster growth. Shalimar
Paints, India’s iconic paint maker, is
undergoing a strategic transition to
become a consumer-centric company
through increased focus on the
decorative paints business.
Commenting on the appointment,
Sameer Nagpal, Managing Director
CEO, Shalimar Paints, said, “Shalimar
has embarked on a journey of
transformation to emerge as a strong
player in the Indian paint industry.
Growing our decorative business
profitably is central to this strategy.
Shankar joins us at this crucial juncture
with the objective of driving growth,
improving product mix, creating
a distinctive value proposition for
Ajit Pawar lays foundation stone
for Welspun Energy
Welspun Energy Pvt Ltd (WEPL),
one of India’s leading developers
of renewable energy projects, will
soon commence construction of its
50 mw solar project in Maharashtra.
Ajit Pawar, Deputy Chief Minister of
Maharashtra, laid the foundation stone
in Baramati in Pune district.
The plant’s location is one of the
most favorable locations in state for
setting up a solar project.
Pawar said, “Addressing climate
change while balancing development
needs is a critical priority area. It is our
Lodha to raise $1 billion via IPO
Lodha Developers Pvt, which is
building the world’s tallest residential
tower, is planning an initial public
offering (IPO) that may raise as much
as $1 billion. The sale may value
Mumbai-based Lodha at as much as
$10 billion, according to sources. The
company will probably start trading
next year.
Lodha is seeking a listing after
customers and strengthening channel
relationship. Shankar will play a key
role in Shalimar’s transformation
journey.”
Shankar has over 15 years’
experience in sales, marketing
and business development across
consumer durable, IT and retail
sectors. He joins Shalimar Paints
from Ingersoll Rand, an industrial
technology company where he was
the Director for Residential Solutions
business, responsible for establishing
the Trane brand of air-conditioners
in India.
A graduate in Physics from Pune
University, Shankar is passionate
about technology. He holds a post-graduate
diploma in marketing from
the Institute for Social Sciences
Research, Vellore.
Products
Pre-fab bungalows Site offices
Pre-engineered buildings
Unit No. 6, Gosavi Buva Smruti, Plot No. 71, Sec 23,
Near Aishwarya Hotel, Nerul (E) – 410 206. Navi Mumbai.
Mobile: 90290 87730 Email: sales@rmsinfra.com
Website: www.rmsinfra.com
around 18 per cent of India’s cement
demand and 14 per cent of the total
installed capacity. Cement demand
growth in East has been robust at
CAGR of 9.75 per cent over FY 09-FY
14 compared to all India growth of
6.5 per cent. Going forward, demand
growth in east India is estimated to
be around 8 per cent in FY15. This is
congenial with infrastructure growth
and urban housing demand.
Good locational advantage
in terms of road and rail network,
enriched infrastructural support
like that of uninterrupted power
supply, supply of water for industrial
and potable purposes, other basic
facilities like sewerage and drainage,
etc and incentives available as
per the West Bengal support for
Industry have played a decisive role
for OCL India in setting up the plant
in Bengal.
The plant has state-of-the-art
technology, efficient quality
control systems consisting of ARL
QUANT’X Energy Dispersive X-ray
Fluorescence (EDXRF) spectrometer,
Systronics Double beam UV Visible
Spectrophotometer with graphic
LCD, AIMIL Mu Compression Testing
Machine with automatic pace rate
controller, to name a few.
The components like fly ash,
clinker, gypsum, and slag are inter-grind
to manufacture Portland
Slag Cement (PSC) and Portland
Pozzolana Cement (PPC).The new
plant will follow OCL’s philosophy of
strict quality policy in its products and
services conforming to customers’
requirements in the Bengal market.
CM Mamta Banerjee at the inaugaration of the OCL Cement plant in West Midnapore with Puneet
Dalmia, MD, Dalmia Cement Bharat and Mahendra Singhi, Group CEO- Cement, Dalmia
Shankar Subramanian
obligation to focus on energy security
as well as relook the way we have
been using energy. We need to look
for ways to reduce our carbon footprint
and efficiently use energy sources.
“The government has been
systematically working on its Green
energy agenda. Maharashtra has laid
focus on solar and wind energy to
secure energy access for the present
as well as the future. The Baramati 50
mw solar project will be a major step in
this direction and will certainly help to
meet state’s green energy goals.”
home prices in Mumbai more than
doubled in the five years through
March, according to data from Liases
Foras Real Estate Rating Research
Pvt. A $1 billion IPO would be India’s
biggest since 2010, when CIL’s share
sale raised $3.4 billion. The company
is building the 117-storey World One
residential tower, which it says will be
the world’s tallest at 423 metres.

PRODUCT PROFILE July 21-27, 2014 4
Construction chemicals
industry in India
From the beginning of the 20th
century cement concrete and cement
mortar based on ordinary Portland
cement have been accepted as
the main building materials for
the construction of buildings and
infrastructure, considering the ease,
speed and the strength they offer.
But this new building material that is
the ordinary Portland cement suffered
from some initial drawbacks such as
shrinkage cracks and leakages when
compared to the then existed lime
concrete and lime mortar.
So this product needed some
modifications to get over its inherent
weaknesses, which was achieved by
the use of some chemicals. With the
increase in demand for bigger, higher
and stronger structures in various
environment conditions, the ordinary
concrete required further modifications
to perform as per expectations and
deliver the end strength in various
climatic and critical conditions.
This was again achieved through
addition of chemicals to modify the
behaviour of cement concrete to
give the desired end-results. With
time, the performance demands on
concrete increased and research
and development of chemicals for
modification of concrete became a
regular industry which is now known
as the Constructuion Chemicals
Industry.
To keep with the pace of
developments, construction
chemicals industry took upon itself
to develop products which not
only make construction of modern
structures possible by imparting
easy workability, better strength
development characteristics and
expected performance in extreme
environmental conditions, but also to
maintain structures through various
climates extending their life.
Now a concrete admixture has
become an essential fifth ingredient
of concrete and construction and
completion of a new structure can’t
be imagined without the use of
construction chemicals at various
stages of construction.
Construction chemicals’
expanded range
Starting from water proofing
compounds, construction chemicals
have expanded range to ease the
workmanship in demanding situations
at various stages of construction.
Today, each full-fledged construction
chemicals manufacturer manufactures
50 to 100 various construction
chemicals. These construction
chemicals can be generally divided
into the following groups:
Water Proofing Compounds; Tile
Fixing Adhesives and Joint Fillers;
Repair and Renovation Products;
Admixtures for Concrete and Mortars;
Coating and Protection Products, and
Construction and Workmanship Aids.
Codes and standards
As Portland cement was developed
in Europe, so also were the construction
chemicals. Suitable codes and
guidelines were also framed there to
take the full advantage of these new
developments in the advancing civil
engineering industry.
In India we adopted the use of
Portland cement very fast and our
government recognized the cement
industry as the one essential in nation
building, and supported the industry
by easing the norms in its classification
in excise and its treatment in sales
tax, etc.
In the beginning of the 20th century
itself, this industry grew rapidly. But after
independence in 1947, construction
practices and building technology
did not develop with the same speed,
leaving our own civil engineering
codes and practices far behind when
compared with developed nations.
Because of this reason construction
chemicals were very slow to enter
our market, and did not get due
recognition they deserved. Now
generally, construction chemicals are
thought of when a structure is leaking
or in distress or in situations when
some extraordinary requirements are
expected out of a structural member,
such as very high strength bridge
girder or superior industrial floor, etc.
For creating safe healthy structures
for mankind we need to revise our
age-old meaningless building codes
and civil engineering practices and
overhaul the civil engineering syllabus
in engineering colleges to incorporate
the latest technology and available
materials.
We not only need to create new
codes for civil engineering, but also
for construction chemicals so that
wrong materials do not enter the
construction arena, putting structures
to great risks.
Construction chemicals in India
With the increase in demand for
RCC structures and the government
taking up large infrastructural projects,
the need-based scope for various
construction chemicals opened up in
India in the latter part of 1980s.
Practicing engineers then were
not aware of construction chemicals.
It was the construction chemicals
industry which had to first introduce
itself and then discuss the utility
and the necessity of construction
chemicals on their project.
Since construction chemicals
were not specified, they were not
reflected in the bill of quantities, and
hence not quoted for. This became an
unavoidable necessity at an extra cost
to the civil contractor who would look
for the most economic alternative on
this extra item for which he is not going
to be paid for.
The knowledge about the use of
right type of admixture in concrete
for the required end-result comes
from understanding of the concrete
in-depth, with respect to available
raw materials ingredients, type of
cement used, strength and placement
requirements and site condition, apart
from thorough knowledge of the
chemistry of admixtures.
Since admixtures were not specified,
the construction chemicals industry
took upon itself the strenuous task
of training engineering professionals
into this discipline of understanding
and using specific chemicals in civil
construction.
Today, a construction chemicals
professional is a practical civil
engineer and a chemical engineer
rolled into one, irrespective of his
academic qualifications. Today, we see
constructions chemicals executives
moving on various sites providing
solutions through their knowledge,
irrespective of whether they have
been able to sell some product of their
company or not.
They help in fine-tuning concrete
mix designs for achieving desired
workability and strength and
suggesting precautionary measures to
be exercised in achieving end-results
in various aspects.
Fighting a battle
The construction chemicals industry
is a knowledge-based industry which
has got to go on evolving itself with
new products, technologies and
specifications to keep the construction
industry going. The relationship of
construction chemicals to the civil
engineering industry is exactly like
that of a pharmaceutical industry
to human body. Spurious and
duplicate medicines are threat to the
pharmaceutical industry, as well as
to human life; so is the case with the
construction chemicals industry also.
The absence of specifications,
reluctance of consultants to specify
construction chemicals, the absence
of a regulating body similar to FDA
and human tendency of the contractor
to pick up the most economical
product available has encouraged
the unorganized sector jump into this
business.
Today, s p u r i o u s i n t e g r a l
waterproofing compounds and tile
adhesives and tile joint fillers are
being manufactured sold in the market
by the unorganized sector in such
quantities that the organized sector
can hardly catch up. Unfortunately, this
industry is without any support from
civil engineering fraternity, architects,
specifiers and the government.
Because of non-recognition
and lack of knowledge about the
importance of this industry, every
manufacturer is fighting his own
battle with the Central Excise or
sales tax departments to explain the
classification of his product, which is
not easy anyway even for an engineer
to understand.
The time and energy which is
thus wasted could be harnessed for
constructive developmental works.
The role of this industry is close to that
of a doctor in providing solutions to the
civil engineering industry to get healthy
and long lasting structures which last
for years without any risk and fear.
Deserved status
In an effort to safeguard their
interests, construction chemicals
manufacturers have finally been
able to form an association which is
CCMA (the Construction Chemicals
Manufacturers Association).
This association, under the able
leadership of its current president is
in touch with various organizations like
Ficci, BIS, architects associations, civil
engineering associations, etc to get a
deserved status for the industry from
the government, removing mindless
bureaucratic hurdles faced by the
industry in its classification under
excise/sale-tax, and to get the requisite
specifications incorporated through
codes and relevant specification
documents.
The sensitiveness of this industry,
its utility in construction and nation
building, demands that it be
treated slightly differently with other
manufacturers and the government
needs to simply support it.

July 21-27, 2014 5
Emcoril AC
Acrylic-rylic-based, membrane-forming
formi
One constraint in civil construction
is the curing of concrete once it
has been cast and the formwork
is removed. Curing done by
conventional methods cannot be
ensured to its optimum efficiency
when it is done with water.
The strength and durability of
concrete does not only depend upon
the correct composition and placing
of concrete, but also on correct
curing. The principle of curing is to
prevent evaporation of capillary water
in the concrete so that sufficient water
is available for complete hydration.
This leads to better end hydration
products and avoids surface dusting
and plastic shrinkage.
The conventional methods of
curing like water spraying, covering
with wet burlaps, polyethylene sheets,
etc are not only time-consuming but
also start after initial evaporation of
water and after the appearance of
first cracks. Ideally, curing should
begin as soon as possible after the
casting of concrete.
Emcoril AC is an acrylic emulsion-based,
membrane-forming curing
compound, to be brushed or sprayed
on the fresh concrete only once,
at initial stage which is the critical
hardening period of concrete or
mortar.
It forms a seamless film on the
surface of fresh cast concrete and
mortars, which arrests evaporation
of water from the capillaries and
prevents quick drying of the concrete,
thus avoiding cracks and enabling
the concrete to hydrate efficiently.
Emcoril AC should be applied as
soon as possible after disappearance
of water sheen from the surface. If the
concrete is dry, it is recommended
to fog down the surface before
application of Emcoril AC.
Emcoril AC can be applied by
brush or by normal knapsack sprayers
having suitable nozzle. In case of
larger areas, motorized continuous
spraying devices can be used. The
nozzle of the spraying device should
be held about 0.7 to 1.0 m distance
from the surface and it should be
ensured that the complete area is
covered. The pump pressure must be
maintained throughout the operation
to obtain a fine spray.
Advantages of Emcoril AC
Emcoril AC protects green
concrete against burning by acute
sunrays
Particularly suitable where early
plastering is required
Optimum hydration leading to
stronger end hydration products
Does not affect normal setting
process of cement
Minimizes and heals shrinkage/
micro cracks at early stages of
concrete setting
Ideal for overhead curing,
inaccessible places and places
having water shortages
Better solar reflectance lowering
the concrete temperature
curing compound
No need for removal before
application of subsequent surface
treatments
Consumption
Consumption 200-250 g/m²
approximately
MC-Bauchemie (India) Pvt Ltd
manufactures this product along
with a host of other construction
chemicals in technical and financial
collaboration with MC-Bauchemie,
Germany. MC-Bauchemie (India)
Pvt Ltd is an ISO 9001:2008 certified
company.
PRODUCT PROFILE
Protection with Emcoril AC
Curing with Emcoril AC
saves labour costs
Crack formation without
Emcoril
Without curing concrete will
crack and less surface will
result

IN PERSON July 21-27, 2014 6
‘Landscaping is crucial to
the built environment’
What’s the total number of projects
you completed in the past 15 years?
Would you like to highlight a choice
few?
We have completed around 100
projects in the past 15 years.
The multiple offices we designed
for Agilent Technologies gave us the
chance to work at different locations
in India and each interior had its own
flavour. Working on the Hyderabad
International Convention Centre (with
CT and British architects RMJM) was
a great learning experience and an
opportunity to be on the cutting edge
of design on that scale.
Recently we designed Karigar
Centres for craftsmen (for Titan) which
were unique CSR initiatives by the
client and went beyond the mundane
in their ideation.
Suchitra worked as project architect
on ‘Dakshinchitra’. Tell us about
the heritage project and your
experience of working with architect
Laurie Baker.
It was an opportunity of a lifetime
because not only are projects of this
nature very rare, but there was the
privilege of working with late Laurie
Baker, the renowned, award-winning
British-born Indian architect.
Various features of Baker’s works
such as using recycled material, natural
environment control and frugality of
design are instances of sustainable
architecture or green building with its
“The relationship of the built to landscape in
the design is very important because a building
without Green elements is not complete,” maintain
Bengaluru-based architects Suchitra Deep
and Anand Krishnamurthy of Firm Terra
Architects, in this interview with Dilip Phansalkar.
Excerpts:
Cafetaria for Agilent Technologies
emphasis on sustainability. The work
was extremely challenging. We had
a very tight budget and expertise on
the ground was limited, but many of
these obstacles were overcome by
the innovative methods that Baker
proposed.
What are your high-priority
considerations when selecting
building materials and colour
schemes for your works?
The materials must be appropriate
for the usage and functionality of the
building, the life expected from these
materials, the budget the client is
comfortable with and local availability,
building culture and context.
Colour schemes will determine
the atmosphere we want to create
in the project and many factors like
light in the building, the usage, etc will
determine our choice of colours.
How important is it for an architect
to understand local construction
techniques which enable him to
deliver a robust final product?
Unfortunately, it is not as important
anymore as it used to be because
there has been a flattening of building
technology and methods which has
ensured that local variations are no
longer that relevant.
In an ideal world local variations
would have continued to be important
and given a unique character to each
area’s built environment.
To create a sense of living, Green
network and built environment
should be integrated into one. What
is your observation?
While designing the built
environment, it is critical to take
landscaping into consideration
simultaneously so that there is
Corporate office for Torishima Pumps
total assimilation of nature into the
project.
How far-reaching is the relationship
of the built to landscape in the
design?
As indicated above, it is very
important because a building without
Green
The concept of frameless structural
glazing (Spider facades) is
increasingly being adopted in
modern-day building structures.
Would you like to comment on the
trend?
It should be used only where
necessary, as in atria, or spaces
with large glass facades where it
is important to convey a feeling of
transparency.
How does architecture influences
all aspects of built environment?
Architecture is the design of built
and unbuilt spaces, and people are
constantly interacting with these
spaces in various forms, whether in
the form of homes or workplaces or
places for entertainment. Naturally
architecture plays a very important
role in the environment around us.
What aspects of global warming and
other climate changes do architects
take into account when undertaking
projects?
On an individual project we might
not think about it on a global scale,
but each contribution we make in
the design, whether it is passive
solar design, or recycling of waste
water -- each of these can add up to
something meaningful.
Which was the first project Firm
Terra Architects undertook?
It was an interesting house for a
dog breeder in one of the upcoming
localities of Bengaluru. It was on a
small budget, and there were very
specific needs for her dogs that we
had to address.
As architects, what were the
common creative factors that
brought you two together to form
Firm Terra Architects?
There was a commonality of
thinking between the two of us and
we felt that we could complement
each other well in practice.
On which factors depends the
success of any design project?
We are convinced that the success
of any design project comes from a
relationship of trust and collaboration
with our clients. This is reflected
in the roster of our clients that
include companies like TCS, Agilent
Technologies and Titan Jewellery.
What makes Firm Terra Architects
building projects and interior
designs a class apart?
Our designs are thoughtful,
appropriate and innovative, and we try
to create new benchmarks for ourselves
with each project we undertake.
Factory and office for Komet Technologies

REAL ESTATE July 21-27, 2014 8
Guideline for
housing societies
A number of housing
societies in Mumbai
are contemplating the
redevelopment option.
Here is a brief reference
guide for them on what
to look and ask for
In most metros such as Mumbai,
redevelopment of old residential
buildings is a normal and desirable
occurrence. Without redevelopment,
there would be no new supply in the
fully developed city centres. Also,
redevelopment is necessary because
every building has an inbuilt shelf-life,
after which it becomes unsafe,
unattractive to the market and difficult
to maintain.
Even now, a number of housing
societies in Mumbai are contemplating
the redevelopment option. However,
the stakeholders of these societies
often lack the information they
need to make an informed call on
which developer to enlist, and what
guidelines they should follow before
making a commitment. Here is a brief
reference guide on what to look and
ask for:
Check handover timelines
A developer undertaking the
redevelopment of a residential building
can legally start the construction
Delhi NCR’s attractive
housing corridor
Some residential
pockets corridors
around NCR still remain
attractive at current
valuations
Hyman Minsky, the noted American
economist, linked an economy’s
lifecycle with speculative investment
bubbles which are endogenous to
it. He stated that during prosperous
times when the economy booms,
corporate cash flows rise higher than
corporate debts, and this leads to
speculative euphoria.
This euphoria continues to
develop, allowing borrowers to borrow
more until their income streams
become inadequate to service their
debts, creating a financial crisis.
This speculative borrowing bubble
then causes banks and financial
institutions to reduce lending, which
in turn causes a further contraction
in the overall economy.
Our economy is currently facing
such a contraction. Overall economic
activity has slowed, with GDP growth
estimated at 4.9 per cent in 2013-
2014. True, this is an improvement
of 40 bps over the previous year
and we have seen growth in the
traditional agricultural and allied
sectors; however, industrial output
and manufacturing in India are
currently in a stagnant mode in terms
of growth.
Asset prices
While infrastructure has been hit
by rising input costs and delayed
approvals, asset prices for residential
Anuj Puri
Chairman Country
Head, JLL India
process only after he obtains the
Commencement Certificate (CC).
However, there are a host of other
permissions and approvals to be
obtained prior to that, together referred
to as Intimation of Disapproval (IoD)
approvals.
While the society members and
developers mutually decide on
when to vacate for facilitating the
construction, it should ideally be
done after the IoD has been obtained.
In fact, the developer would also
be more comfortable with vacating
members only after the IoD has been
obtained, since this would minimize
his outgoings on the rentals which
he would have to pay to members
towards meeting their alternative
accommodation costs.
Reimbursement parameters
The housing society members of a
project that is to be redeveloped are
entitled to monthly rental payments
from the developer undertaking the
project. The extent and limit for these
payments must be clearly outlined in
the agreement drawn up between the
members and developer.
Usually, it will be equivalent to
the applicable rental for a similar-size
apartment in or around the
same locality. The developer must
also reimburse members for the
cost of packers and movers and
minor interior alterations in the rented
accommodation they occupy during
the redevelopment process, as
these are also counted as expenses
incurred while relocating to a new
accommodation.
Rental escalation clause
In a city like Mumbai, there have
been several cases where members’
backs have been put to the wall
because of poorly-framed rental
clauses. It is important for the rental
escalation cost to be included in the
agreement between a developer and
the housing society members.
Typically, rentals tend to rise by
10 per cent every year, though this
can vary depending on locations,
category/type of buildings and some
other aspects. Society members
should do their due diligence on
this subject and negotiate for rental
escalation terms that best fit their
location and building type.
Maintenance post-redevelopment
The maintenance costs for a
project are bound to rise after it has
been redeveloped, proportionate
to the additional amenities that the
developer has provided. These
amenities would include but are not
limited to recreational facilities, garden,
swimming pool, gymnasium, covered
parking, air-conditioned lobby, open
areas, etc.
The housing society members need
to calculate and assess the financial
implications, keeping in mind the
interests of all members. Depending
upon the average financial capacity
and everyone’s common interests,
members should ask the developer to
only provide amenities that everyone
has agreed on.
O f t e n , d e v e l o p e r s o f f e r
maintenance-free periods to members,
wherein the developer is willing to bear
the maintenance charges which would
otherwise have been borne by the
society members. In the case of such
an arrangement, the society should ask
the developer to deposit this amount
in a separate account prior to giving
him permission to sell the surplus flats
in the newly redeveloped building.
Delay clause in agreement
The terms and conditions in the
agreement between a developer
and the housing society must clearly
capture all the details regarding the
construction time-frame. The developer
should be asked to specifically mention
the date by which he would be handing
over the completed structure to the
society members.
The applicable penalties that the
developer incurs if a delay occurs
should also be mentioned. The
penalties could be in the form of
termination of contract, wherein the
society members pay a pre-decided
amount on a pro-rata basis according
to the status of construction progress.
Else, the developer may be liable to
compensate the society members in
cash or otherwise as a fine for delay.
To summarize, the redevelopment
agreement between a housing society
and a developer must incorporate
maximum clarity over the roles and
responsibilities of each involved party.
real estate have recovered and
grown over the past two years.
The increasing residential asset
prices have given rise to a potential
bubble, causing stagnation over the
past two quarters. From a pan-India
perspective, new launches in the
residential sector have dwindled
over 2013, as developers have been
looking at disposing of existing
stocks to generate cash flow.
With project funding becoming
expensive and buyers showing a
lower propensity to purchase in view
of unfavourable prices, developers
have found it difficult to generate
cash and service their debts. This
state of affairs is also likely to create
greater risks for lenders.
Net absorption
In Delhi NCR’s commercial office
sector, we have seen moderate to
healthy levels of net absorption over
the past three years. Absorption in
2013 was the lowest in nine years,
despite promising leasing activity.
This was primarily because occupiers
were focused on cost saving and
portfolio rationalization.
The IT/ITeS sector has been the
dominant performer, contributing a
major share of leasing volumes while
the manufacturing and industrial
sector has also shown good traction
of late. While Gurgaon remains the
most favoured destination of office
occupiers,
Noida has also performed well.
However, while Gurgaon has seen
a good mix of IT and corporate
occupiers, Noida still remains
primarily driven by IT.
Over a one-three year horizon,
we are likely to see an improvement
in demand and absorption as
economic conditions in the US
and Western Europe are showing
signs of stabilising. This is likely to
increase outsourcing business into
India, which will result in improved
performance of the office sector.
Indian domestic corporates are
also likely to continue contributing
towards non-IT demand. From an
investment perspective, it makes
more sense to opt only for leased
assets in the current scenario.
Larger investors should consider the
domestic private equity funds being
raised, which are looking at investing
in commercial assets.
The residential sector in Delhi
NCR has been affected more by the
domestic economy shocks such as
high inflation, rising input costs and
consistently increasing prices which
have acted as a dampener to home
sales.
The festive season of 2013 was
one of the most muted in the past
five to six years, as sales remained
sluggish despite the advertised
discounts, festive offers and new
projects.
High supply numbers
While inventory levels are high in
terms of number of months, the overall
supply numbers are high only in the
broader Noida market. The controlled
environment in other sub-markets has
acted to keep the numbers at a more
manageable level.
Some residential corridors still
remain attractive at current valuations.
Secondary market valuations are
currently trending at a 25-30 per cent
discount to the primary market –
therefore, the secondary market is a
good avenue to get bargain sales.
Investment destinations
Some of the emerging corridors
around NCR which are currently
suitable for residential investment
are:
Sohna: Lower residential rates,
the next development corridor, and
it benefits from the KMP Expressway
and proximity to Gurgaon.
Neemrana: Venue of upcoming
industrial and infrastructural
developments to drive residential
demand.
Yamuna Expressway: Excellent
infrastructure, benefits from
expressway as the node to fuel future
city expansion, upcoming freight and
warehousing developments, and the
cheapest residential apartments in
NCR.
NH-24: Affordable housing – low
entry points, considerable pent-up
demand and future appreciation
potential.
Faridabad: A relative gold mine,
keeping in mind the current land
and residential prices and the
infrastructural developments which
are likely to put this area on the fast
track of growth.
Santhosh
Kumar
CEO, Operations,
JLL India

EQUIPMENT July 21-27, 2014 9
‘Only Volvo
for road building’
equipment at its various projects.
These include an EC210 Excavator,
three SD110 Soil Compactors, two
DD100 Tandem Rollers and a G930
G710 Motor Grader.
“They have served us for over
six years now,” says Singhal. “Very,
very well, I assure you.” Agroh
Infrastructure was first introduced to
Volvo by VolvoCE Channel Partner,
Navin Infrasolutions Pvt Ltd.
The promise was – ‘improved
p r o d u c t i v i t y w i t h l o w e r f u e l
consumption’. It is clear the Volvos
have delivered big time on both
counts.
According to him, a typical Volvo
works long and hard with minimal
breakdowns which is a definite plus
in his business where margins often
come under pressure. He likes the
fact that there is no compromise
on safety and comfort in a Volvo
-- his machine operators love the
work. And he is effusive about the
aftermarket support provided by
Navin Infrasolutions. “The way these
guys run the show is quite amazing.
Ask for any spare part or service
solution and you get it right on
time.”
All in all, Singhal likes the package
immensely. “The product is great, the
performance brilliant and the team
excellent. We really enjoy the VolvoCE
experience,” he admits.
Challenging projects
Agroh Infrastructure is looking to
the future with renewed hopes. It aims
to be up there as one of India’s best
known construction firms. It seeks to
expand well beyond state borders by
actively pursuing challenging road
Dirk Hoke appointed
CEO of Siemens Large
Drives Business Unit
JCB India powers ahead
On July 1, 2014, Dirk Hoke took over
as CEO of the Large Drives Business
Unit of the Siemens Drive Technologies
Division. Large Drives develops,
manufactures, and markets products,
systems, solutions, and services for
drive engineering in industrial and
infrastructure applications as well as
sectors such as marine engineering,
mining, cement, pulp and paper.
The 45-year-old graduate
The Chancellor of the Exchequer,
George Osborne, during his recent
visit to India met JCB engineers in
New Delhi on July 8, 2014. JCB is
the country’s largest manufacturer of
construction equipment.
The meeting with the JCB engineers
took place at the Delhi residence of
the British High Commissioner Sir
James Bevan during a joint visit by the
Chancellor, Foreign Secretary William
Hague and other ministers.
Swati Gupta, Kavita Verma, Hem
Maurya, Divya Patsaria and two
ladies going by the same name
Priyanka Bansal, have all achieved
Diplomas in either Mechanical or
Electronic Engineering as they strive
to further their careers at JCB’s Indian
engineer joined Siemens in 1996 and
started his career at Transportation
Systems Division. Subsequently,
Hoke held management posts in rail
electrification, traction technology,
and power supplies at Siemens
locations in Germany and other
countries. After serving for several
years as CEO of Siemens’ Cluster
Africa and Siemens Morocco, in
2011 he took over leadership of the
headquarters in Ballabgarh, near
Delhi. The group - all aged in their
early 20s - have progressed to hold
a variety of roles including Assembly
Line Leaders to Assistant Managers.
Vipin Sondhi, MD CEO, JCB
India Ltd. said today: “The employees
meeting the Chancellor have gone
through an exhaustive one-year
training programme at the JCB factory
in Ballabgarh to become engineers.
Their hard work is paying off and they
are determined to study further to
advance their careers in what is a very
male dominated industry. We have
an unwavering focus on commitment
to training and people development
which will only intensify in coming
years.”
Industry Solutions Division before
being appointed to head the Siemens
Division Customer Services in October
of the same year.
“To deliver 20 per cent higher
productivity and 15 per cent savings
on fuel consistently over the years
is no joke. Take it from me -- if it’s
road building, it’s got to be Volvo,”
says Shailendra Singhal, Managing
Director, Agroh Infrastructure
Developers Pvt Ltd.
The champion road builders of
them all, it is said, were ancient
Romans. At their height, the Roman
Empire maintained an amazing
85,000 km of roads across the heart
of Europe and way beyond, encircling
the Mediterranean area.
Roman roads were famous for
their straight design and engineering
excellence. “Much like ours,” says
Singhal. “And I can tell you, we are
champions when it comes to road
building in Madhya Pradesh, the
heart of India.”
Agroh Infrastructure Developers
Pvt Ltd is a fast growing construction
conglomerate clearly focused on
creating superior infrastructural
assets at both state and national
levels. Incorporated in 2001, the
company has grown in strength over
the years to emerge as a leading
player in road building, highways
and bridges in Madhya Pradesh. The
company has pioneered several BoT
projects in the state with resounding
success.
Safety and comfort
Agroh Infrastructure employs a
fleet of heavy-duty Volvo construction
projects pan-India.
Singhal knows exciting times are
ahead. Just as the country is on
the verge of a ‘growth break-out’,
he believes, so too is his company.
“And with a fleet of Volvo equipment
by your side, there’s no telling how
far you can go,” he signs off with
a smile.
Shailendra Singhal, Managing Director,
Agroh Infrastructure Developers Pvt Ltd

IN PERSON July 21-27, 2014 10
‘Harnessing energy of the sun is
solution to India’s energy security’
Welspun Energy Pvt Ltd (Wepl)
is a leading independent developer
of renewable energy projects with a
vision of commissioning 1.75 GW of
solar and wind projects. The clean
energy generator has time and again
demonstrated its ability to design,
engineer and build renewable projects
with high performance outputs and low
cost-delivery period.
It also holds the distinction of
winning one of the world’s largest solar
projects of 151 mw (DC).
Welspun Energy is setting up a
50 mw project on a public-private
partnership (PPP) model with the
Maharashtra State Power Generation
Co Ltd (Mahagenco). The power
producer will be fully responsible
for part-finance, design, and
commissioning of this grid interactive
solar power.
For the next 25 years, the project
will generate enough green energy to
power 24 million households. Among
the three bids received for the project,
Welspun Energy emerged as the
highest revenue sharing bidder.
Apart from Maharashtra, the
company is building large capacity
solar projects in Tamil Nadu and
Punjab. Construction has begun on
its 36 mw Punjab project site and a
MoU has been signed for an additional
151 mw capacity. The organization
is targeting to develop 1.75 GW of
renewable capacity in next three years.
What are Welspun’s plans in terms
of generating highly competitive
cleaner and greener power in
anticipation of future energy needs
of India?
We have ventured to undertake
a leading role in rapidly building up
India’s solar and wind energy capacities
and transitioning to low-carbon energy
regime. The company is developing
geographically diverse solar and wind
portfolio in high potential locations,
towards a cumulative target of 1.75
GW within next three years.
We have pioneered solar power
solutions, both in terms of plant size
and total installed capacity. Two of our
landmark solar projects, in Neemuch
151 mw (DC) and Phalodi 55 mw
(DC), have established benchmarks
in project execution and capacities
achieved.
We are ISO 9001:2008 certified,
and this is one of the reasons why
the organization is able to scale
its operations to manage multiple
projects across the country. We have
been appreciated by former prime
minister Manmohan Singh for being
the first to commission a solar project
under the Jawaharlal Nehru National
Solar Mission’s (JNNSM) phase-1,
batch-1.
How instrumental has Welspun
been to meet energy demands of
developing nations like India?
As a developing country,
India needs to meet its growing
energy demands while balancing
environmental concerns. The National
Solar Mission’s target of 20 GW
installed solar capacity by year 2022
can significantly help address India’s
energy deficit.
In line with this target, we have
been working aggressively to set
up solar and wind power projects.
We have emerged as one of the
largest renewable energy developers
nationally, with benchmark projects
like the Neemuch 151 mw (DC) project
– one of the largest solar projects
globally.
Our emphasis on project
management has ensured we
commission our projects well within
committed timelines. Almost all of our
projects have been developed ahead
of schedule. In terms of performance
our solar power plants are listed among
the highest performing projects of the
country. This continued delivery on
quality and performance has ensured
that we are able to contribute to India’s
rapid renewable energy plans and
thereby sourcing clean energy.
Which states in India are potential
markets for your technology and
solutions?
Almost all the states in the country
receive fair levels of solar irradiation
and have also been identified within
the National Solar Mission. State
governments and the Solar Energy
Corporation of India (Seci) have
been offering project capacities up
for bids.
We have been actively participating
in these bids and our solar footprint
has grown across eight different
states – Rajasthan, Gujarat, Madhya
Pradesh, Maharashtra, Karnataka,
Andhra Pradesh, Punjab and Tamil
Nadu. We are fairly confident that the
upcoming bids will help us in growing
our portfolio further.
Any new groundbreaking technology
implemented or in the pipeline to
supply green energy to state grids
in rural India?
We lay a great emphasis
on technology and engineering.
Consequently our utility scale projects
are among the highest generating
solar plants in the country, as
corroborated by the Ministry of New
Renewable Energy (MNRE). With
each power project we have been
perfecting our project designs and
engineering innovations. We have
received provisional patents for six of
our best practices.
Recently our EPC (engineering,
procurement construction) received
the ‘Golden Peacock Innovative
Service Award 2014’ for modifications
in the module mounting structures.
Due to the innovations made, the
project erection time gets reduced
drastically with lower cost implications.
Given its simplified design, the need
for training or technological expertise
required also reduces, leading to faster
commissioning of solar projects.
Resource augmentation and growth
in energy supply have failed to meet
the ever increasing demands of
the multiplying population. Please
comment.
India needs a fairly balanced
environment-friendly energy mix to
meet its commercial and residential
energy demands. Given its geographic
positioning, the country receives
significant percentage of solar
irradiation.
As per estimates harnessing solar
energy received in Rajasthan’s Thar
Desert alone can generate close to
700 to 2100 GW, while our extensive
shoreline offers a huge opportunity for
offshore wind projects.
Renewable energy-based projects
have a strong advantage in that they
can be scaled for off-grid projects,
thereby being ideal solutions for far-flung
population pockets which can’t
be connected to the national grid
network.
G i v e n t h e s e s i g n i f i c a n t
opportunities, we need state
governments to increasingly adopt
solar energy generation. Solar energy
is already close to achieving grid
parity and continued widespread
implementation will drive it towards
grid parity.
How can serious energy shortages
that continue to plague India be
curbed -- forcing it to rely heavily
on imports?
Look at how conventional energy
costs have been increasing recently.
Cities like Gurgaon and Bengaluru
are hubs of economic development,
but power shortages seem to be on
an upward trend.
We need to realize that thermal
energy can no longer be thought
of as a bankable solution. It isn’t
environment friendly for one; while
on the other hand coal imports
are draining the nation’s coffers.
Bankability of these projects has
gone down since most discoms have
a bad history of payments for power
purchased.
Harnessing the energy of the sun
can be the solution to India’s energy
security. The cost of solar energy is
stabilizing. With increasing adoption,
renewable energy projects are fast
becoming cost effective.
In the Indian scenario the tariffs
have decreased from Rs 17 to
approximately INR 6.5 a unit, thereby
closing on to grid parity. As mentioned
earlier, applying projects in varied
geographies as off grid projects is a
big advantage. The future is renewable,
conventional energy is increasing
becoming difficult to sustain.
Investors are shying away from
conventional energy due to policy
uncertainties. What should be the
new government’s initiatives?
The renewable energy sector,
particularly solar, has done well.
For a further growth impetus to this
sector, the new government needs
to put in place the much-needed
policy measures. Otherwise it will
be very difficult to retain India’s 6th
most globally attractive position for
renewable energy investments (Ernst
Young’s Renewable Energy Country
Attractiveness Index 2014). Some of
the issues that need addressing are:
Renewable Purchase Obligations
(RPO): RPOs have been defined for
Vineet Mittal, Vice Chairman, Welspun Renewables Energy Pvt Ltd
share his vision with Remona Divekar on his motto of commissioning
renewable, solar and wind energy projects across the country to deliver
high performance outputs and low-cost delivery period. Excerpts:
state distribution licensees, open
access consumers and captive
consumers of power. However, the
sector is not witnessing the percentage
increase in solar power to the degree
it should have experienced. Without
a legal enforcement mechanism for
RPOs, India will not be able to make
a steady and sustainable transition to
green economy.
Mandatory domestic content
requirement: This is a great
impediment to India’s energy security.
There is a wide gap between the
scale and operations of Indian
manufacturers as compared to their
global counterparts.
Indigenous manufacturers don’t
possess the scale to meet the supply
requirement of the IPPs. Adhering to
this policy will continue to drive project
cost upwards, thereby dissuading
project developers to invest in
solar energy based generation.
The government must work toward
creating an entire ecosystem for solar
manufacturing in India.
Funding challenges: This is one
significant area that needs attention
from the government. Renewable
energy financing in emerging
economies faces particularly daunting
challenges. But there are creative
policy solutions that could potentially
reduce the cost of renewable energy
support by as much as 30 per cent.
Banking and financial institutions
in India should therefore have
separate sectorial limits for lending
to renewable energy projects.
Improve cost-effectiveness of
domestic renewable energy support
programmes: provide lower-cost debt
through debt concession programmes
which the research shows could lower
the total cost of providing required
support.
Land banks: Land availability for
projects has been a challenge, and a
more proactive role by the government
is required. Post assessing the solar
potential of each state, government
land banks should be created and
allocated to projects which are
coming up.
Additionally, as solar and wind
are non-polluting industries; these
projects should fall under the
Non-Agricultural Land Conversion
exemption. For private land to be
used for setting up solar power
plants, stamp duty exemption may
be considered.
What is your take on the recent
budget?
Our complements for the great
road map drawn up for the renewable
energy industry as a whole and the
special thrust for broad-basing and
upscaling the solar power sector
nationally.
To start with the proposed UMPPs
in Rajasthan, Gujarat, Tamil Nadu,
Ladakh, JK with a budget of Rs
500 crore is very encouraging. If
the government ensures issues of
evacuation, land and availability of
water is taken care of, there will be
a lot of players willing to enter this
segment.
Another positive move is the
government relaxing requirements
of CRR, SLR, priority sector lending,
because of this banks are now being
able to issue long term bonds as loans
for projects as long as 25-30 years!
There is good news for the
manufacturers as well, especially
with regards to concession of duty. A
concessional basic customs duty of
5 per cent is also being extended to
machinery and equipment required for
setting up of a project for solar energy
production. This will give a shot in the
arm for local manufacturers.
Implementation of the green energy
corridor project will be accelerated
in this financial year to facilitate
evacuation of renewable energy
across the country. Overall it is a step
in the right direction.
Gujarat 15 mw

July 21-27, 2014 11
IN PERSON
‘Opportunities galore for
aluminium doors windows’
“We feel there is a need for some kind of standards/regulations particular
to Indian environment and we hope that IFFA (the Indian Facade and
Fenestration Association) will bring these ideas to the market,” says
Teruyuki Sekine, Manager (Business Product Development), YKK
AP Inc in an interview with Pramod Shinde. Excerpts:
How do you analyse India’s emerging
market for aluminium windows for
residential and commercial segment?
We strongly feel that there is big
potential for aluminium windows in
both residential and commercial
segments. We see that the market is
shifting towards usage of completely
integrated and trusted window system
for these requirements.
We have big expectations for the
future, as the Indian market as well
as the industry is gradually maturing
and it is adopting the practices and
standards being followed in the
advanced markets.
How YKK AP pursues the values
suitable for coming age through
its architectural products?
Today, YKK AP is doing business
in Japan, USA, China, Taiwan,
Hong Kong, Singapore, Indonesia,
Malaysia, and Brazil. Its main strength
lies in understanding the requirements
of the market and developing systems
as per the needs.
Since the climate and culture is
different from region to region, we
develop systems that is suited to the
conditions of each market, based
on the standards and regulations of
that country. Profiles and accessories
(hardware) are both developed and
manufactured in-house to maintain the
quality as per our standards.
On the challenges and opportunities
for aluminium windows market in
India.
Major challenges in India are
the lack of standards and a price
conscious mind-set. There are no
specific standards which the industry
follows. For most of the projects,
AAMA, BS, EN, and/or AS standards
are followed.
We feel that there is a need for
some kind of standards/regulations
particular to Indian environment and
we hope that IFFA (the Indian Facade
and Fenestration Association) will
bring these ideas to the market.
Regarding price conscious mind-set,
of course, we need to provide
products that are affordable. However,
in order to maintain standards of our
products, the quality of accessories
(hardware) will not be compromised.
Regardless of these challenges, with
the new government coming in we see
huge potential for the next five years.
Any plans to launch a new brand
in aluminium windows for Indian
market?
We are in the process of developing
a window system specifically
designed for the Indian market,
which is scheduled to be launched
in FY15.
The market is in a transition
period where system companies
from abroad are coming into
the market with different types
of products. By bringing India
specific systems, we are hoping
to change the mind-set towards
aluminium windows/doors systems.
On YKK AP’s superior technology
and quality aspects.
We are a part of the YKK Group
which is the world’s market leader
with over 45% market share for
fasteners (zippers). YKK’s business
has spread across the globe, keeping
the same quality worldwide.
As a group company, YKK AP is
also maintaining same quality levels
across all regions we do business.
With the experience and
technologies developed, we are
confident to capture the market with
our high quality systems. Since we are
taking into account the requirements
and needs of the market in India, we
hope to propose something unique to
the market.
Your vision for YKK AP in India’s
urbanization.
We see India as a huge market in
coming years. Although the speed
of development hasn’t been as
anticipated, we are hoping the new
Do you have any raw material tie-up
with primary players to maintain
global quality and remain cost-effective?
We have taken over the extrusion
business of Bhoruka Extrusions Pvt
Ltd in June 2013, with a Japanese
technical head guiding in Mysore.
With the collaboration of YKK AP and
over 30 years of experience in the
Indian market through Bhoruka, we are
confident of maintaining global quality
as well as cost effectiveness in India.
government will speed up the process
and provide incentives to MNCs like
us to invest more in the future. We will
initially focus on Tier I cities.
How would you cater to various
locations?
India is a broad and diversified
country with various regional
requirements. We see Delhi NCR,
Mumbai, Pune, Bengaluru, and
Chennai as major hubs. Initially, we
plan to focus in these major hubs.

July 21-27, 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, July 21, 2014
Regd. No. MH/MR/South-355/2012-14
WPP License No. MR/TECH/WPP-64/SOUTH/2013-14
NEWS
(L-R): Scot Horst, Senior Vice President for Leed at USGBC; Dr RK Pachauri, Director-General,
Teri ; Mahesh Ramanujam, Chief Operating Officer at USGBC President of GBCI; and Mili
Majumdar, Director, Sustainable Habitat, ADaRSH at Teri
Editor : Bina Verma
Editorial Team: Dilip Phansalkar, Paresh Parmar, Remona Divekar Designer: Rajen Mistry
Business Team: Shantanu Baraskar (9820904795), Seema Kohli (9820904931)
Email: contact@konstructionreview.com, editor@mmronline.com
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.
TERI, USGBC join forces to promote
high performance buildings in India
The Energy Resources Institute
(Teri) and the US Green Building
Council (USGBC) announced a
strategic collaboration to accelerate
the development of high performance
buildings in India and South-East
Asia.
Developing a sustainable approach
to the built environment is not only
a global issue, but also a major
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/-
EVENTS
July 25, 2014
5th Annual Seminar on ‘Metamorphosis
in Building Construction Industry 2014’
Hilton Mumbai International Airport Hotel,
Andheri (East), Mumbai
The Seminar has been designed to create an interactive platform for business associates,
connected with the building, construction infrastructure sector, to discuss crucial issues
pertaining to changing dynamics of building materials, reviewing methods and techniques
and delivering long term development plan.
Contact: contact@konstructionreview.com
editor@mmronline.com
Telephone: 022-22660623
August 9, 2014
Manexe
ITC Kakatiya, Hyderabad
Manexe 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, 2014
BACE 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, 2014
Construction Architecture Interior Chennai
Chennai Trade Centre, Chennai
The 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, 2014
The Big 5 Construct India
Bombay Convention Centre, Mumbai
It will provide the ideal platform for influential architects, contractors, consultants and
engineers to share ideas about innovative construction tools and services.
Contact: DMG: Events. PO Box No 33817
Dubai, UAE
October 4, 2014
19th One Full Day Workshop
The Institution of Engineers (India), Mahalaxmi, Mumbai
Workshop on Jirnoddhara of RCC buildings which contains Structural Audit, Upgrading
(House - Keeping, Regular Maintenance, Repairs, Rehabilitation); Fixing Leakage and
Waterproofing of existing RCC buildings and a total new concept to construct RCC durable
buildings without leakage with practicals on acrylic polymer-based flexible membrane
waterproofing system.
Contact: Jayakumar Jivraj Shah, Single Faculty Course Conductor,
203, Wing-B, Lakshmi Apartments, Corporation Bank Building,
Behind Anand Nagar, Dahisar (East), Mumbai 400068.
Cell: 919819242649 Phone: 28483541/9819242649
jjshah123123@rediffmail.com
The Institution of Engineers (India), Mahalaxmi, Mumbai
Phones: 022-23543650/23542943 Mobile: 09820392726
December 4-6, 2014
Ceramics Asia
Gujarat 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, 2014
bC India Show
India 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
and technologically advanced
mechanisms, which is crucial in
regionalizing Leed in India and South-
East Asia.
Speaking at the event, Dr RK
Pachauri, Director-General, Teri, said,
“Several studies have estimated that
most of the buildings projected to
be standing in 2030 in India have yet
to be built. The demand for energy,
water and other inputs for these
buildings and those that already exist
will be staggering. Designing and
constructing Green buildings would
ensure that India, and the world,
do not get locked into a pattern of
resource use intensity that would be
unsustainable for a variety of reasons.
Teri and USGBC share common goals
in promoting Green buildings round
the world.”
“Implementing a more sustainable
approach to the built environment
is a global imperative, but nowhere
is its impact more critical than in
developing countries. This partnership
between USGBC and Teri promises
to take Green buildings to the next
level in India and across South-East
Asia,” said Rick Fedrizzi, President,
CEO Founding Chair, the US Green
Building Council. “India is already the
third largest market for Leed outside
the US, and USGBC is committed to
bringing our resources to advance
more rapid adoption of green building
practices.”
The partnership will focus on two
key initiatives:
Existing buildings: The Griha
Council implementing and supporting
the Leed for existing buildings rating
system and the Leed Dynamic Plaque
for Indian and South-East Asian
markets.
New buildings: Offering seamless
pathways for dual ratings for
new buildings: Griha projects will
have the opportunity to earn Leed
certification and Leed buildings will
have the opportunity to earn Griha
certification.
The partnership comes on the heels
of last month’s announcement from
USGBC regarding its expansion of
support for Leed in India.
“Griha has pioneered a regional
rating system that addresses
the environmental impacts of the
construction sector in India. It was
further modified and adopted by
the ministry as a benchmark for
sustainable buildings within India.
We applaud these extraordinary
achievements and greatly look forward
to advancing this regional system
with our global rating system as both
parties seek to transform the built
environment into one that includes the
most sustainable, safest and healthiest
buildings for all,” said Scot Horst,
Senior Vice President, Leed, USGBC.
USGBC has also established a
Leed customer service hub in India
that will help accelerate the adoption
of Leed in India. The Leed hub is a
local technical, market, certification
and customer support centre for Leed
project teams.
Additionally, in an effort to continue
strengthening the global consistency
and review quality of the Leed
rating system, the Green Building
Certification Institute (GBCI) now
manages certification of projects to all
Leed rating systems in India.
The Leed hub, USGBC’s renewed
commitment to India, along with the
strategic partnership with Teri, will
add significant capacity in the market,
encouraging even greater adoption
of green standards across more
populations in the region.
Leed v4, offered by USGBC and
SVA Griha, Griha LD, which is offered
by the Griha Council, will continue
to co-exist and be promoted by the
respective bodies.
concern for developing countries. Teri’s
Griha (Green Rating for Integrated
Habitat Assessment) and USGBC’s
Leed (Leadership in Energy and
Environmental Design) have partnered
to promote the best of global and
Indian practices to ensure efficiency
of design, construction and operation
of high performance buildings.
Griha has created locally relevant

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