Construction Industry Review-2014 12 pg

March 24-30, 2014 1
(L-R): NN Kumar, IRS, Chairman, JNPT; Dr Vishwapati Trivedi, IAS, Secretary, Ministry of Shipping; G K Vasan, Union Minister of Shipping;
Milind Deora, Union Minister of State for IT & Communications & Shipping, among others
Volume 3 l Issue No 12 l March 24-30, 2014 l Price: Rs 100An MMR, Braj Binani Group Publication
Talks between Rajasthan government
and Binani Cement reach stalemate
Tribal workers in Pindwara await intervention from state government
cement supply has been reduced
affecting the neighbouring states of
Gujarat, Uttar Pradesh, Punjab and
Haryana as well.
Joshi further said that the company
is facing problems in its day-to-
day functions as its bank accounts
have been seized. The company
has requested the government for
permission to repay the demanded
amount of Rs 154.51 crores in 36
monthlyinstalments.Thecompanyhas
never refused its liability of payment to
the government, but has only made an
appeal to the government to allow it to
make the payment in instalments.
He informed that the government
officials were also briefed with the
fact that the company annually pays
The ongoing dialogue between
the company management and
government to restart production
at Binani Cement Ltd has yielded
no result so far, and uncertainty still
continues over the issue. Through
a dialogue process engaged with
the senior government officials, the
company management tried to solve
the issue, but the government officials
have so far not even considered the
proposed solution by the company.
With the production at the
company’s cement unit coming to
a halt, the state government has
incurred a revenue loss of almost Rs
100 crore, while the company too has
to face a loss of around Rs 90 crore.
The government and the company
can never regain the huge amount of
Rs 190 crore.
The company’s President
(Company Affairs), R S Joshi has
explained that he recently called
on Principal Secretary Subhash
Garg, Secretary Praveen Gupta and
Commissioner Sanjay Malhotra and
requested them to take a decision
considering the proposal submitted
by the company, but the officials flatly
refused to look into the proposed
solution.
While the stalemate on the issue
continues, Joshi stated that the
company commands 16 per cent
share in the cement industry. With
the stopping of production, not only
cement prices have gone up, but the
an amount of about Rs 650 crore to
the exchequer, both the state and
Central government, as taxes, excise
and other levies.
However, as the current general
financial condition of the company has
not been healthy, the company in this
case has requested the government
for a more sympathetic view and
allowing the payment to be made in
instalments.
He once again urged upon the
government to settle and resolve the
issue by allowing for payment, as the
closure of the factory was taking a
toll on the factory workers associated
with the company and the industry in
general.
Notably, on getting information
about the government’s attitude of not
resolving the issue at the earliest, the
workers based in Pindwara, the tribal
area of Sirohi district, are disappointed,
as their livelihood has been snatched
away. The workers had hopes that
the government would listen to the
company’s version and their bread
and butter would be regained, with
the restart of production.
However, under the prevailing
uncertainty the future of the workers
still hangs in thin air. The workers are
extremely angry and agitated with the
government’s view. They question
that if the company management has
proposed to make the payments in
instalments, why the government is
not accepting it.
No high-speed rail,
says India to China
Foundation stone laid for JNPT’s
330-meter container terminal
India will not seek China’s
assistance in exploring the possibility
of setting up its first-ever high-
speed rail line. The government’s
decision is a setback to the China
Railway Corporation, which has been
aggressively planning to enter the
Indian market. The company has,
in a span of five years, constructed
the world’s largest high-speed rail
network in China.
The agreed minutes of the third
Strategic Economic Dialogue (SED),
which was held in Beijing last week,
carried no reference to high-speed
rail development, unlike in the
previous round. China had pushed
for listing high-speed rail as one
area of cooperation under the SED’s
infrastructure working group – one of
the five groups that meet under the
umbrella of dialogue.
The previous SED dialogue, which
took place in New Delhi in November
2012, had highlighted three areas
of rail cooperation: high-speed rail
development programme, heavy
haul and station development.
The minutes released on March
18, however, referred to “raising
speeds of existing routes” instead
of high-speed rail. The Indian
railway officials said Japan had
been awarded a contract to carry
out a detailed project report into the
feasibility of a Mumbai-Vadodara
high-speed rail line. Officials denied
that security concerns were a factor
in leaving China out of India’s high-
speed rail plans.
Arunendra Kumar, Chairman of
the Railway Board, said that cost
was the biggest factor. High-speed
rail will involve building entirely new
tracks, which would also require
significant land acquisition.
Kumar estimated the cost at Rs
120 crore per km of track. India
is, however, keen to get Chinese
expertise in raising the speed on
three railway corridors — between
New Delhi and Agra, Kanpur and
Chandigarh. Chinese officials said
they could help raise speed from
the current 130 km per hour to 160
or 200 km.
Last week, Indian Railways
officials got a first-hand experience of
China’s impressive railway network,
travelling on a 325 km per hour
train between Beijing and Tianjin,
from Beijing’s sprawling new South
Railway station.
China has rapidly developed
what is now the world’s largest
high-speed rail network, building
13,000 km of entirely newly laid track.
Wang Mengshu, a prominent railway
and tunnelling expert at Beijing
Jiaotong University, who advised the
government on its high-speed rail
programme, said land acquisition
would not be a major factor for India,
as in China, most tracks ran on
elevated rails and required minimal
farmland.
Deputy Chairman of the Planning
C o m m i s s i o n , M o n t e k S i n g h
Ahluwalia, who chaired SED and
met with Chinese Premier Li Keqiang,
said high-speed rail network may not
be cost-effective for India. “In terms
of cost effectiveness, we will be the
lowest income country to have a high
speed rail (network),” he said.
In China, the trains have
established an impressive safety
record, said Wang. In five years’
time, the high-speed rail system has
managed to attract twice as many
passengers as the entire domestic
airline industry.
Union Minister of Shipping G K
Vasan laid the foundation stone of 330-
meter stand-alone container terminal
project of India’s largest container
handling port, Jawaharlal Nehru Port
Trust (JNPT), on March 5 in Mumbai.
It was awarded to Nhava Sheva (India)
Gateway Terminal Pvt Ltd.
The minister also awarded the
mega project of development of the
fourth container terminal at JN Port
on design, build, finance, operate &
transfer (DBFOT) basis to PSA Bharat
Investments Pte Ltd and launched
the software project for software
development and ERP awarded to
CMC Ltd.
JNPT had signed the agreement
with Dubai-based DP World’s Indian
subsidiary Nhava Sheva(India)
Gateway Terminal Pvt Ltd (NSIGI)
for development of a standalone
container handling facility at the port
in Navi Mumbai at an estimated cost
of Rs 600 crore. The concession
agreement entails the development of
standalone container handling facility
with a quay length of 330 metres at JN
Port, Sheva, Navi Mumbai.
Under the agreement, the terminal
will be developed by NSIGT at an
estimated cost of Rs 600 crore, with
an estimated capacity addition of 0.8
million TEUs per annum. The project is
slated to be completed by December
2015.
AsperthePPPpolicyofGovernment
of India, Jawaharlal Nehru Port Trust
floated a global tender and DP World
was the successful bidder for the
project, with their offer of 28.9 per
cent revenue share to the port. DP
World has formed a special purpose
vehicle namely NhavaSheva (India)
Gateway Terminal Pvt Ltd to implement
this project.
“We are very delighted that the
foundation stone has been laid for
330 meter stand-alone container
terminal project along with the award
of mega project of development of
fourth container terminal at JN Port
to PSA Bharat Investments Pte Ltd
and launch of software development
and ERP project,” said N N Kumar,
Chairman, JNPT.
Minister of State for Shipping, IT &
Communications Milind Deora graced
the occasion.
JNPT is the biggest container
handling port in India, handling
around 56 per cent of the country’s
containerized cargo, first crossing the
historic landmark of 4 million TEUs in
container throughput in the year 2007-
08. The port is currently ranked 31st
among the top 100 container ports in
the world.

March 24-30, 2014 2CONSTRUCTION
Both scaffolding and
formwork are very
important accessories in
the construction of both
small and big projects
and also buildings
The following are a few helpful tips
which all in the construction industry
need to take note. This is necessary
for smooth working of the job and
safety of workers, machinery and
equipment from start to completion
of the construction job.
I have worked on many big projects
in a number of states such as Assam,
West Bengal, Bihar, Uttar Pradesh,
Maharashtra, Gujarat, Punjab and so
on, and also overseas). I have noted
that most works suffered mainly due
to formwork. That is why this item
needs to be planned very well.
Form-oil
I strongly feels that the use of
waste oil prepared from burnt diesel
and sewage waste must be banned.
It does more harm than good to RCC
structures. Reinforcement rods get
coated with this oil while applying
it to the formwork, which reduces
bonding capacity.
This waste oil spills over
construction joints, and thus there is
no proper bond of concrete placed
over it and a weak joint is susceptible
to leakages. Only the good quality
mould release agent manufactured
by good construction chemical
companies must be used.
If the contractor feels that his rate
does not permit him to use good
mould release agent, it is better not to
use any oil, rather than use waste-oil
and harm durability of the structure.
I feel that this must be religiously
followed as suggested, to achieve
durability. Form-oil covers a fraction
Two important accessories
in construction
Greywater to treat and recycle 75,000 litres
wastewater per day at Club Mahindra
of the total expense and needs
proper education, change of attitude
and insistence from the owner to
use only good quality mould release
agent.
Construction chemical companies
inform the following advantages
when good quality ‘mould release
agent’ supplied by them is used.
Mould release agent
The agent provides fair-faced,
stain-free concrete, together with
easy stripping of the mould. It is
resistant to heat, up to 100 degrees
centigrade.
Plaster can be applied later on the
surface as it does not give bonding
problem.
Mould release agent does not get
washed out during curing, making
stripping of formwork easy.
It prevents wooden formwork from
absorbing moisture and swelling
and protects steel formwork against
corrosion.
It is chloride-free, hence, does not
affect reinforced concrete.
Coil rod (nut with threaded
bolt tie)
We must use only coil rod – nut
with threaded bolt tie. This is as per
international standard. In this system
there is no through and through hole
formed in the RCC member and the
tie rod reinforcement which gets
embedded is 50 mm inside the face
of the concrete. (Refer to sketch 1
and photo 1.)
Jayakumar
Jivraj Shah
An expert on
waterproofing,
repairs, durability of
RCC buildings, fixing
leakage
Greywater, a Mumbai-based
specialized technology company that
pioneers the next generation products
for sewage and wastewater treatment,
announced the commissioning of 75
KLD packaged GREWA-RS STP at
Club Mahindra’s Holiday resort at
Mahabaleshwar.
“We are extremely proud to
announcethatwehavecommissioned
our latest revolutionary STP, GREWA-
RS at Club Mahindra’s Resort in
Mahabaleshwar. The STP will treat
and recycle 75,000 litres of sewage
water per day during peak loads at
the resort.
“Our STP products are critically
designed, keeping in mind the
challenges faced by our clients from
the hospitality industry. Mahindra
Holiday & Resorts is one of our
earliest customers and a repeat order
from them is a direct testimonial
for our superior technology and
satisfactory services,” said Arun
Dubey, Head, Strategy & Business
Development, Greywater.
“Greywater has already installed
a STP plant at our GIR facility and
we are very satisfied with the plant
and post-order support and services
provided by the Greywater team.
Thus Greywater R was our preferred
choice for STP in Mahabaleshwar.
“The GREWA-RS STP installed at
our resort will recycle up to 75,000
litres of wastewater in peak season”
said Basheer Ahmed, Corporate
Chief Engineer, Mahindra Holidays
& Resorts Pvt Ltd.
The resort is located in a highly
environment regulated zone of
Mahabaleshwar, the treated water
is being used for landscaping
and common area cleaning.
Mahabaleshwar sees seasonal
variation in a number of tourists
visiting the area, thus there is
predictable variation in occupancy
of the resort. The GREWA-RS STP
comes with a unique feature to
sense the reduction in load and
accordingly take actions to operate
at lower loads.
Greywater is amongst the only
sewage, wastewater and effluent
treatment. Funded by Nexus Venture
Partners, Greywater’s compact plug-
n-play products are being used in
hospitality, commercial, hospitals,
Sezs, IT parks, residential and
industrial sectors.
The products significantly reduce
space footprint by 30 per cent to 70
per cent and energy requirements by
40 per cent to 50 per cent compared
to conventional plants. These plants
industry. This is supported on the
masonary wall by providing pockets.
(Refer to photos 2 and 3.)
Later, on the removal of the scaffold
these pockets are not properly sealed,
and remain a permanent source
of leakage. There are innumerable
examples, where no efforts are made,
even to remove the portion of the
horizontal member of the scaffold
from the pocket of the masonary
wall and the horizontal member is
cut at the face of the wall, with the
result, a portion of the bamboo/‘balli’
remains inside the masonary wall and
becomes a source of severe leakage
in the building.
There was severe leakage in the
toilet block of managing director of a
very reputed company and this was
not resolved for many years. When I
became involved it was decided to
strip open the entire toilet, and to the
surprise of everyone, bamboo pieces
were left inside the masonary walls,
which was the source of leakage not
identified for years.
Hence this practice of single
bamboo/‘balli’ scaffold needs to be
totally discouraged. Let us provide
double bamboo or ‘H ‘frame scaffold
only, supported to inserts (photos
show readily available M S bolt with
anchor fastener used as insert and
fixing of scaffold member to them)
fixed to 16 mm anchor fasteners
placed in RCC members by drilling
a suitable hole and then hammering
into it, when it splits and grips into
it tightly.
(Please take note: Single bamboo
scaffolding must be banned from safety
point of view.)
I worked as durability consultant
on a building named Gitanjali built
during 2001 to 2003 at of Napean
Sea Road in Mumbai where these
types of tie rods are used. I feel that
possibly this is the first and the last
building where these type of tie rods
were used in India.
Design of formwork
It is important to make a correct
assessment of forces due to weight
of fresh concrete, wind, workmen and
equipment, lateral pressure of green
concrete and so on.
The weight of fresh concrete and
lateral pressure exerted depend,
among other things, on density of
concrete, its slump, rate of pour,
method of discharge, height of
discharge, concrete temperature,
dimensions of sections to be cast,
reinforcement details, concrete
vibration technique adopted and
so on.
Scaffolding
Single bamboo scaffold is very
commonly used in the building
are designed and built to handle
variable loads and require minimal
manual intervention.
Greywater’s clients include
corporates such as Dahej Sez,
M a h i n d r a H o l i d a y s , O b e r o i
Realty, Gemco Power, Unitech,
Leighton Welspun. The Greywater
team comprises experienced
professionals, with over 108 years
of combined industry experience.
company in India to provide truly
packaged and next generation STP
products. In the past three years
the company has enabled several
prestigious clients such as Leighton
Welspun, Mahalaxmi Developers,
Dell, Unitech, Wadhwa Builders and
others to make their projects water
sustainable.
Greywater is a specialized
technology company that pioneers
the next generation products for
1. Coil Nut Tie Rod 2. Coil Nut manufactured from 5 mm MS Rod
3. Wooden or Plastic Cone 4. Rope Threaded Tie Rod 5. Inside Face of Formwork
Photos Samir Shirali
Sketch 1
Photo 1
Photo 3
Photo 2

Cast on Cast
considerably reduces
material loss and time
involved in designing,
manufacturing,
transporting and
assembling expensive
formworks and
scaffoldings
Efficient fabrication process
The use of complex geometries in
contemporary architecture is common
nowadays. However, known methods
for creating such geometries, at
least in the construction industry, are
associated with considerable waste
of time and materials. This affects the
overall costs of a building project and
damages the environment.
To date, no efficient and sustainable
ways of building complex geometries,
desired by most of contemporary
architectural designs, are known.
Can we design a sustainable way
of fabricating geometrically complex
architecture?
Parametrization system
Cast on Cast, efficient and
sustainable fabrication process,
is an investigation on the field of
building technology, which aims to
design an efficient and sustainable
manufacturing system of complex
geometries in architecture.
The research deals with the
invention of a parametrization system
of surfaces and its application in a
novel efficient fabrication method
of components for construction of
geometrically complex shell structures,
building envelopes and pavements.
B o t h t h e p a r a m e t r i z a t i o n
system and the fabrication method
complement each other. The first
one is the brain, the mathematical
part; the second one makes the link
with material and, therefore, makes
possible the development of research
as an architectural project.
The parameterization system
consists of a set of mathematical
algorithms which explore the idea
that three-dimensional surfaces can
be subdivided into smaller elements,
which can be stacked in towers, one
on top of the other ones.
New manufacturing system
The fabrication method is a new
Cast on Cast considerably reduces
material loss and time involved in
designing,manufacturing,transporting
and assembling expensive formworks
and scaffoldings. An investigation that
challenges the sterility of the existing
processesandprovesthatthesimplest
ideas are the shortest way to achieve
sustainability in construction.
Innovation and transferability
Cast on Cast is an investigation
of a multidisciplinary nature, which
connects the fields of mathematics,
Ethical standards
We believe that everyone
deserves to enjoy spatially interesting
architecture and, therefore, one of the
main goals of the project is to design
a system that fabricates geometrically
complex architecture affordable to
anybody.
To achieve this, the research
intends to improve the existing building
practices, rather than replace them, by
helping them to get higher standards
in the construction of geometrically
complex structures, while using
same building materials and similar
methods.
Environment quality
Cast on Cast has environmental
advantages in all the stages of the
building industry.
Design: Instead of building
passively what has been designed
by the architect, the system proposes
checking during the design process
the feasibility of construction
under efficiency and sustainability
principles.
Fabrication: The innovative idea of
production, which does not require
specific moulds and formworks,
reduces the use of material resources
and minimizes the production of
waste.
Transportation: The components
are stacked in towers using the
space in the most efficient way, which
reduces time and pollution.
Construction: The assembly of the
components, which does not require
specific scaffoldings, reduces time
and the use of material resources
as well as minimizes the production
of waste.
Demolition: The system follows the
principles of Design for Disassembly
(DFD), substituting demolition by
disassembly.
Economic performance
The system supposes the following
economic benefits: The merging
of the building stages into one
simple process reduces the time of
coordination and, therefore, speeds
up the building process.
Thedecreaseontheneedofmolds,
formworks and scaffoldings brings
down drastically the production and
construction costs. The reduction of
waste produced during the fabrication
and construction phases minimizes
the cost of its transportation and the
landfill fees.
Aesthetic impact
Apart from the unquestionable
visual attractiveness and spatial
quality of the geometrically complex
shell structures, with their folds,
double curvatures, openings and
textures, the investigation pursues
the beauty of those architectural
projects which, by their overwhelming
simplicity, are able to achieve more
with less.
Project data
Project group: Materials, products
and construction technologies
Project background: Academic
research
Estimated start of construction:
Not applicable
The jury commended this project
which innovatively challenges new
methods of designing and fabricating
geometrically complex building
elements and in addition provides
efficiency improvements in terms of
materials, storage, and transportation.
Overall, the project presents a way
that considers simultaneously the
design of free and ambitious shapes,
as well as the material efficiency and
economy of constructions.
manufacturing system based on
using the previous product as a
mould to shape the next product. This
fabrication method relies on an additive
process of casting components ones
on top of the previous ones by using
digital fabrication technology.
The process requires both parts to
operate.Firstofall,thearchitectdesigns
a three-dimensional surface and
analyzes it with the parameterization
system, which subdivides the surface
into components capable of being
stacked in towers.
Secondly, the coordinates of
these components are converted
to G-code programming language
and transferred to the CNC machine,
which manufactures the components.
Finally, the towers of components are
transported to the site where they are
detached and assembled into the
desired surface.
architecture, civil engineering and
digital fabrication technologies. The
research deals with the following:
The discovery in mathematics of a
new parametrization system of three-
dimensional surfaces, which is based
on the idea that any surface can be
subdivided into smaller components
capable of being stacked in towers.
Theinventionofalogicofproduction
based on using the previous product
to shape the next product, which
materializes in a fabrication process
of customized components for
construction without requiring molds,
formworks or scaffoldings.
The combination of these two
findings aims to design an efficient
and sustainable system for the
construction of complex geometries
in architecture, in which design and
fabrication are naturally welded into
one simple process.
Cast on Cast components fabricated in towers Cast on Cast components assembled in surface
Edward
Schwarz
General Manager,
Holcim Foundation
for Sustainable
Construction

March 24-30, 2014 4INFRASTRUCTURE
IL&FS Engg bags `300-cr
Kolkata metro station contract
IL&FS Engineering & Construction
Company Ltd has been awarded Rs
299.76-crore contract by Rail Vikas
Nigam Ltd, Kolkata. This entails
construction of seven elevated metro
stations from Sub CBD-1 to Titumir in
the New Garia-Airport Metro Corridor
of Kolkata Metro Line in West Bengal.
The project is to be completed in 36
months from the date of issue of Letter
of Acceptance (LoA).
Mumbai-based IRB Infrastructure
Developers has approached the
National Highways Authority of India
IL&FS Engineering Services
is already executing two railway
contracts for RVNL, worth over Rs 500
crore. While one involves construction
of a new broad gauge railway line in
Kadapa and Nellore districts of Andhra
Pradesh, the other involves doubling
of the Bhigwan–Mohol Section (127.14
km) part of the Daund–Gulbarga
Doubling in Solapur Division of Central
Railway in Maharashtra.
(NHAI) for rescheduling premium
payments related to two of its stressed
projects.
IL&FS Engineering Services is
also executing the Rapid Metro
Project phase-2 in Gurgaon involving
construction of 6.7 km of elevated
viaduct, and 5 elevated stations
of around Rs 350 crore value. The
company executed RMRG (phase-1)
contract worth Rs 259.30 crore, which
involved construction of a single
and double-track elevated viaduct,
including six station buildings.
IRB’s first developer to seek
the relief package is cleared by
the government for salvaging road
projects stressed due to less-than-
anticipated toll revenue or delays in
clearances. The company’s proposal
is for two of its projects: 6-laning of
the Ahmedabad-Vadodara (102 km)
stretch and 4-laning of the Tumkur-
Chitradurga (114 km) stretch in
Karnataka. While the total value of
the Ahmedabad-Vadodara project is
Rs 2,226 crore, that of the Tumkur-
Chitradurga project is Rs 839 crore.
After the much-talked makeover of
government flats in Delhi’s Moti Bagh,
public sector company National
Buildings Construction Corporation
(NBCC) is looking outside the national
capital.
It is planning to redevelop at least
three government housing projects
worth Rs 5,000-6,000 crore in other
parts of the country. The company
is also exploring opportunities in
Africa and West Asia to expand its
business.
It has signed an agreement for
makeover of a government building
in Bhubaneswar, while pacts for
another two projects – Kolkata and
Bhopal — are expected to be signed
shortly, said NBCC Chairman Anoop
Kumar Mittal.
The old government housing
structures will give way to high-rise
buildings in the three cities to give
it a contemporary look, as well as
make optimum utilization of space.
In Bhubaneswar, NBCC will redevelop
two government properties of 100
acres each.
It is still in discussions with the
West Bengal and Madhya Pradesh
governments for redevelopment of
government properties with an area
of 20-30 acres each and expects to
sign final agreements by June.
Currently, NBCC is in the process
of redeveloping flats in East Kidwai
Nagar in Delhi. Earlier, it redeveloped
MotiBagh,wherehigh-riseapartments
as well as commercial spaces have
come up in the complex, plus a club,
banquet halls and amphitheater.
It has another three projects in
Delhi – Netaji Nagar, Tyagraj Nagar
and Kasturba Nagar — in the pipeline,
estimated at Rs 10,000-15,000 crore.
NBCC also received board approval
for opening offices in Muscat in West
Asia and Botswana in Africa. “We hope
to get new orders from these countries
within a year,” said Mittal. NBCC is
already executing project management
consultancy projects in Maldives.
NBCC to redevelop govt
projects in 3 cities
IRB first to sign up for road
premium recast
India Infoline Ltd’s (IIFL), a non-
banking financial company, India
Infoline Finance Ltd, and some of
its wealthy clients have together
invested Rs 150 crore in a 500-
acre Navi Mumbai township project
of property developer Wadhwa
Group.
Srinivasan Gopalan, Chief
Financial Officer & Chief Operating
Officer, Wadhwa Group, said the
company has completed acquiring
land for the project and will now
begin work on infrastructure such
as roads and sewage.
“We have land permissions in
place and the project is a year away
from launch,” he said. After developing
the entire project, Wadhwa Group will
give 1.2 million sq ft of built-up or
developed area to Gulf Finance House
in about eight years.
This is in addition to an upfront
payment already made to the Bahrain
bank. India Infoline’s first real estate
fund also invested around Rs 350
crore in Wadhwa’s high-end residential
project in Chembur, in suburban
Mumbai, last year.
While many large developers today
stay away from such long-gestation,
capital-intensive projects, some large
projects are still underway. Earlier
this year, Mumbai’s Lodha Group
announced an 800-acre township with
an investment of close to Rs 14,000
crore as part of its plan to develop the
‘Palava’ project on 4,000 acres of land
between Navi Mumbai and Dombivli.
IIFL invests in Wadhwa Group’s Navi
Mumbai township
`4.5-lakh cr projects seeking
bankloanssuggestindustryrevival
Adani may divest 50 pc stake in
Australia rail projects
Ramky Infra commissions
toll way road project in AP
Ramky Infrastructure Ltd has
commenced commercial operations
(tolling activities) at the 4-lane
Narketpally-Addanki-Medarametla
Road (state highway-2) in Andhra
Pradesh with effect from March 11,
2014.
The toll way road project was
awarded to the joint venture of
Ramky Infrastructure Ltd and IL&FS
Transportation Networks Ltd in the
ratio of 50:50 by the Andhra Pradesh
Road Development Corporation.
The project is based on toll
collection with a concession period
of 24 years including two-and-a-
half years of construction period.
To ease the liquidity concerns, the
company’s board of directors last
month discussed the possibilities of
sale of some of its operational road
assets.
Cabinet may take up plan
for border road projects
The Centre is likely to consider a
proposal for setting up a company,
the National Highways Construction
Company, for building roads in
border areas and north-eastern
regions. The Cabinet in its meeting
scheduled may approve the Road
Ministry’s proposal of setting up the
new company.
“The NHAI undertakes mainly
road projects on build, own and
operate basis all over the country
and this proposed company will
focus only on constructing border
roads and highways in the north-
east,” said a road ministry official.
The government may put in close
to Rs 30 crore capital initially in the
company. At present the country’s
road network is 33 lakh km, of
which over 79,000 km are national
highways.
As per the data collected by the
Finance Ministry, 103 new projects/
proposals, with investment size of Rs
250 crore or more in each have come
in. The number of proposals is lower
compared with the July-September
quarter, but the investment amount is
higher. It may be noted that banks got a
totalof173projects/proposalswithtotal
The Ahmedabad-based Adanis
is planning to sell half their stake in
projects they took over in 2011 to
develop an Australian coal mine and
lay a rail line to finance a part of the
$8-9 billion investment needed. The
Adanis is in negotiations with China
Rail Corporation and another Chinese
company but no deal had been
finalised, said a high-ranking executive
in the Adani group.
The Carmichael mine, in which the
investment of over Rs 3.24 lakh crore.
The commercial real estate sector
topped the list in terms of number
of proposals, but in value terms the
power sector is way ahead of the other
sectors. Iron & steel, telecom, oil &
natural gas and railway infrastructure
are other leading sectors which have
pitched in with proposals.
Adanis is planning to shed half their
stake, needs an investment of around
$5 billion. Another $2.5 billion must be
spent on a 400-km rail line to cart the
coal to a port, which in turn will need
yet another $1 billion to build.
The $8-9 billion Australian project
is ambitious for the Adanis. When
ready, it will be the biggest coal mine
development in Australia. The project
is expected to start exporting coal
from 2017.

March 24-30, 2014 5IN PERSON
It is now almost 20 years since
Sobha Developers was founded.
How instrumental has it been
in transforming the real estate
definition in the country?
We have come a long way since
our founder, PNC Menon, started
the company in 1995. Our focus
has always been on providing the
highest quality products, timely
delivery, customer satisfaction
and transparency in all spheres of
business.
All these factors have contributed
in making Sobha one of the most
preferred real estate brands in the
country. Sobha is a process-driven
organization and has constantly
maintained uniformity, be it in timely
completion of projects or high
standard of quality that reflects in
every project done till date. In the real
estate sector, Sobha has become a
brand to reckon with.
How would you justify the claim
that Sobha is “the largest and only
backward integrated real estate
player in India”?
The backward integration model
is one of Sobha’s key competitive
strengths. This means that the
company has all the key competencies
and in-house resources to deliver
a project from conceptualization to
completion. Backward integration
includes an interiors division with
one of India’s largest woodworking
factories, a metal works and glazing
factory, and a concrete products
factory.
The Interiors Division is engaged
in woodwork and manufacturing
wood or wood-based products of
the highest quality, superlative finish
and incredible durability, including
doors and windows, wooden
floorings, ceilings, panels, pillars and
staircases, and custom-built furniture
for commercial and residential use. In
addition, this division also includes an
in-house woodworking design studio
and a dedicated design team that
provides interior design schemes and
production specific drawings.
The Glazing & Metal Works Division
carries out metal fabrication work
such as aluminium windows and
doors, structural, and architectural
glazing. The fabrication activities are
‘Indian real estate annual revenue
$180 b by 2020’
Bengaluru-based Sobha Developers is the only
backward integrated real estate company in
India. Since inception, Sobha has completed 88
real estate projects and 234 contractual projects
covering about 5.37 million sq metres (57.87
million sq feet) of area.
The company currently has 45 ongoing real
estate projects aggregating to 2.58 million sq
metre (27.77 million sq ft) of developable area
and 1.79 million square metres (19.35 million sq
ft) of saleable area, and 38 ongoing contractual
projects aggregating to 1.03 million sq metres
(11.11 million sq ft) under various stages of
construction.
J C Sharma, Vice Chairman & Managing
Director, Sobha Developers Ltd, highlights the
company’s remarkable journey and achievements,
exponential growth of the real estate sector and its
contribution to the national GDP, in this interview
with Dilip Phansalkar. Excerpts:
carried out at the factory premises,
whereas assembly and the installation
are carried out at the project sites.
The Concrete Block Making
Division manufactures concrete
blocks, pavers, kerbs, water drainage
channels, paving slabs and related
landscape products.
All our factories are state-of-the-
art and have a built-up area of over
55741.824 sq metres (600,000 sq
ft), comparable to some of the best
of its kind.
Leveraging our expertise in
manufacturing capabilities, this
in-house initiative brings to the
table a formidable resource that
embodies performance parameters
that are world-class. Sobha is one
of those rare companies practicing
backward integration, which takes
us ahead in maximizing value for our
stakeholders!
What elements have helped the
company become a preferred real
estate brand?
Sobha is a brand renowned for
quality of work and timely delivery of
all its projects. Being the only Indian
backward integrated company in the
sector, we ensure that only the best
quality materials are used in building
our homes.
It also reduces our dependency
on input materials, thereby ensuring
prompt delivery of all our projects. Our
skilled workforce and highly trained
professionals work assiduously to
ensure that we give the best possible
living experience to our customers.
We believe in the adage ‘Customer
is the King’. Our line of services do not
end with the sale of the property. Our
customer relationship management
team consists of highly qualified
professionals who work tirelessly to
give our customers the best possible
post-sales service.
Our transparent operations and
full disclosure policies have garnered
the faith of all our investors. We
have been and we will continue to
create maximum value to all our
stakeholders.
Would you like to elaborate on the
company’s ‘superior execution
capability’ which is one of its core
strengths?
Sobha’s superior execution
capability is its core strength. Since
inception, Sobha has completed
88 real estate projects and 234
contractual projects covering about
5.37 million sq metres (57.87 million
sq feet) of area.
The company currently has
45 ongoing real estate projects
aggregating to 2.58 million sq metre
(27.77 million sq ft) of developable
area and 1.79 million square metres
(19.35 million sq ft) of saleable area,
and 38 ongoing contractual projects
aggregating to 1.03 million sq metres
(11.11 million sq ft) under various
stages of construction.
The company has a real estate
presence in 8 cities, viz. Bengaluru,
Gurgaon, Chennai, Thrissur,
Coimbatore, Pune, Mysore and
Kozhikode. Overall, Sobha has a
footprint in 24 cities and 13 states
across India.
Acquiring large tracts of land in
various states and cities for over
300 projects during the past 18
years must have been a difficult and
mammoth task.
It is indeed a challenging task
to acquire a clean land parcel. It
is more difficult to aggregate the
same. However, when we create a
professional team of highly competent
people and set up the right processes,
it works better.
Which states came across as
developer-friendly, offering the
company the cooperation it
needed in undertaking construction
projects?
Our home base, Bengaluru market,
has been the most favourite market
for the growth of the real estate sector.
This city is home to about 850,000
IT/ITES professionals who drive the
demand in this market.
During the time frame of July 2013
to September 2013, 21,000 new jobs
were created in the city, up 12.3 per
cent from Q1 where 18,700 new jobs
were created. With the creation of
numerous job opportunities in the city
due to the IT boom, which accounted
for 67 per cent of the total jobs
created in this period, people from all
over the country migrated to the city
and began settling down, leading to
an increase in the demand for real
estate properties.
Kerala is another such market
that has favoured the growth and
development of the real estate sector.
This market is primarily driven by
NRIs. With the rupee depreciation,
more and more NRIs began to invest
(contd. on pg. 11)
in India, Kerala market to be more
specific.
These two places hold immense
potential for growth as far as the real
estate sector is concerned.
Would you like to throw some light
on the ‘backward integration model’
the company is so proud of?
Sobha is the only backward
integrated real estate company in
India. The various divisions included
in the backward integration model are:
Sobha Interiors Division: Set up in
1999, Sobha Interiors Division more
than exemplifies Sobha’s thrust on
backward integration. Sobha Interiors
is an endeavour to create products
of consistent high quality adopting
unique construction methodology,
superlative finish and lasting value.
Sobha City, Bengaluru
SobhaCityThrissur
Sobha Lifestyle,
Bengaluru.

March 24-30, 2014 6PROJECTS UPDATE
Tata Group draws $8 b in
infrastructure plan
Cyrus Mistry, Chairman of the
Tata Group, is planning to spend
at least $8 billion in building roads,
airports and housing, betting a stable
administration after the country’s
coming elections will lead to a new
wave of infrastructure development.
Mistry, 45, who took over as the
group’s Chairman in December 2012
after Ratan Tata’s two decades at the
helm, is expanding at least three
unlisted infrastructure companies
within the $100-billion conglomerate.
The businesses will get more attention
after Mistry has overhauled operations
at bigger, listed Tata companies,
including the auto and steel units.
The initiative from Tata underscores
the hope among Indian corporates
that infrastructure project approvals
and spending will pick up when a new
government is formed after elections
ending in mid-May.
“Mistry looks at this sector as a
phenomenal opportunity,” said U R
Bhat, Managing Director of the India
unit of UK-based Dalton Strategic
Partnership which manages $2 billion
globally. “It’s a natural extension
of their capabilities. Tata has the
financial muscle to bid for the biggest
of the projects and dominate,” he
said.
India needs to spend $2.2 trillion
by 2030 on urban transportation,
housing and office space to boost
infrastructure ranked below that of
Guatemala and Namibia by the World
Economic Forum, McKinsey said in
a 2010 study.
Tata Housing Development,
Tata Projects and Tata Realty &
Infrastructure (Tril) which builds
technology parks, malls and
residential complexes, are among
the infrastructure units that are
aiming to more than triple their
order books to Rs 70,000 crore
in five years, said Sarika Kapoor
Chokshi, a Tata Sons spokeswoman
in Mumbai. Tril plans to spend Rs
22,700 crore in the next five years,
building highways, airports, hotels
and urban transportation, according
to a presentation made by MD Sanjay
Ubale last June.
Tata Housing is developing 26
projects across 10 Indian states.
Mistry also is encouraging the
units to seek contracts abroad,
in particular in western Asia and
southern and western Africa. The Tata
management expects infrastructure
activity will expand in a year or two
after a new Indian government spurs
an economic rebound, said a person
familiar with the developments taking
place.
India, Saudi Arabia to channelize
$750 b into infra
In what will channelize investments
from oil-rich Saudi Arabia into India’s
infrastructure sector, India and Saudi
Arabia have formalized the structuring
of the $750-million (about Rs 4,650-
crore) India-Saudi Investment Fund
that was announced during Prime
Minister Manmohan Singh’s visit to
Riyadh in 2010.
The infrastructure sector requires
an estimated $1 trillion (or Rs 62 lakh
crore) in investments over the next
four-five years. Top official sources
said that following the recent visit of
Finance Minister P Chidambaram
to Riyadh in January this year, both
sides have finally agreed to proceed
with the setting up the fund and have
decided to appoint nodal points in a
time-bound manner.
“Joint secretary (infra) in the
department of economic affairs
(DEA), the Ministry of Finance will
be the nodal point from the Indian
side and director general, Public
Investment Fund, shall be the nodal
point from the Saudi side,” said
officials.
Saudi Arabia is India’s fourth-
largest trading partner at $43.78
billion in 2012-13. During April-
November 2013-14, the two-way
trade was $32.7 billion. India’s
imports of crude form a major part
of this trade with almost one-fifth
of the country’s oil imports coming
from Saudi Arabia.
Besides Saudi Arabia, other
cash-rich Gulf nations including
Kuwait, Abu Dhabi and several other
sovereign wealth funds (SWFs) from
across the globe including Japan,
UAE, Norway, Canada among
others have also shown interest in
investing in India’s infrastructure
projects including the Delhi Mumbai
Industrial Corridor, power projects,
toll bridges, civil aviation and oil and
gas projects.
L e a d i n g S W F s h a v e a l s o
expressed interests in investing
in government bonds floated
specifically for funding infrastructure
projects, officials said.
“India is preferred as one of the
top three investment destinations
amongst the emerging economies of
Brazil, China and India. Returns on
infrastructure in India are among the
highest in the world,” they added.
The environment clearance given
to the Rs 5,000-crore Vizhinjam sea
port has come under the scanner of
the National Green Tribunal (NGT),
Southern Bench.
Admittinganappealthatchallenged
the clearances given to the project,
the tribunal Bench on March 14
directed the Union government, the
Kerala government, the Kerala State
Pollution Control Board, and Vizhinjam
International Seaport Ltd to file their
replies on April 25. The appeal seeks
to know if there is any procedural
lapse on the part of the authorities in
giving clearance for the project.
The Bench, comprising its judicial
member Justice M Chockalingam
and expert member R Nagendran,
said, “The appeal raised an
important question concerned with
environment.”
The appeal was filed by social
workers A Joseph Vijayan and P
Michael and fisherman of Poonthura
P Christopher. They challenged the
environment clearance and coastal
regulation zone clearance for the
port, to be developed in open sea by
reclaiming coastal waters.
They submitted that fishermen
and their families at Poonthura were
affected by shoreline changes, which
were occurring because of structures
put up along the foreshore and
construction of port structures.
The appellants said the Union
Ministry of Environment & Forests
had granted the environment
clearance to the project proponent
without considering the deleterious
effects of the proposed port on the
rich, diverse, and pristine marine
environment of the coastal waters
owing to reclamation and construction
of artificial structures.
The impact on the fragile coastal
land owing to shoreline changes as
a result of construction of artificial
support structures for the port such
as breakwaters was also overlooked.
The ministry did not consider the plight
of the fishermen and the thousands of
people living in the area while granting
the clearance.
The appellants also said the
public hearing was not conducted
in accordance with the procedure
provided in the Environmental Impact
Assessment Notification, 2006.
Clearance given to
Vizhinjam port under green
tribunal lens
Centre urged to reconsider
decision on new AP port
NHAI to invite fresh bids
for NH-73 project
The Union government has been
urged to reconsider its decision
to locate the second major port in
Andhra Pradesh at Dugarajapatnam
in Nellore district, and to stick to the
original plan of constructing the port at
Ramayapatnam in Prakasam district.
The Organisation for Development
With Gammon Infrastructure
Projects Ltd pulling out of the four-
laning project of the Yamunanagar-
Panchkula highway (NH-73), the
National Highway Authority of India
(NHAI) has decided to invite fresh
bids for the project.
In a communication to the Haryana
government, the NHAI urged the
government to take “expeditous
wildlife and forest clearances and
disbursement of compensation to
enable the authority to invite bids
for the project”.
Earlier, the concessionaire
had issued notice to the NHAI for
the closure of the project citing
reasons of uncertainty for obtaining
approvals from the Departments
of Prakasam District said 2-3 million
tons of cargo (tobacco, granite and
others) originates from Krishna,
Guntur and Prakasam districts and
the port at Ramayapatnam can also
attract cargo from Telangana and
Rayalaseema, making it a viable
proposition.
of Forest for protected forest and
wildlife sanctuary, non-availability
of land and escalation of the cost
of construction material for the
unviability of the project.
Meanwhile, Vijay Bansal, president
of the Shivalik Vika Manch, who
has been taking up issue with the
NHAI and the Haryana government
for a long time, urged the state
government to get all clearances
before the bids were invited again
by the NHAI.
The project had been hanging
fire for the past over two months as
the mandatory clearances from the
Forest Department were yet to be
obtained, forcing Gammon India to
withdraw from the project.

ConstructSim V8i
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Bentley’s RM Bridge software
The Bridge Information Modeling
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developandemployanunprecedented
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ConstructSim V8i is a revolutionary
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ConstructSim V8i links together
project IT systems, including the 3D
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Plant, PDS, PDMS, etc), schedule,
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others to create an integrated virtual
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to-date.
Integrated virtual
environment
This integrated virtual environment
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Virtual walk through; 4D (3D+time)
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Pipe and steel work packaging
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Many EPC firms have spent
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Benefit for engineers
A Vietnamese cable-stayed bridge
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Da Nang city is a key commercial
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Ly Bridge over the River Han.
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Finland, with Esko Leppäluoto as lead
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Visitors to the riverside park will
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enclosed observation platform 145 m
over the river will offer 360° views of
the port city.
Structural analysis
The six-lane bridge will be 731 m
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span of 230 m. Although designed
primarily for vehicular traffic, it will also
accommodate pedestrians with two
3.5 m-wide footpaths. Cantilevered
construction is proposed for the main
span; all other spans will be cast using
conventional scaffolding.
Construction of the $100 million
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as well as its built condition.
Features of the Bentley’s RM
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chose the software for its accuracy
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erection of concrete cable-stayed
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It helped engineers address a
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Space frame model
The team of 25 first created a
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Vietnamese 22 TCN-272-01 bridge
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Permanent loads, traffic loads,
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WSP found the application of the
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materials, including creep and
shrinkageandcrackingoftheconcrete.
This capability has categorically
changed our philosophy of how we
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“In the past, the construction was
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You always question to some degree
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Using RM Bridge, I have a high
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The model can also be used in
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Designers used the optimization
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twisted into a wing-like arrangement,
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Bentley Systems says that its RM
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The software system has been
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fitting of precast bridges.

March 24-30, 2014 8INFRASTRUCTURE
Europe’s plan for mega projects
With high speed rail
and international road
network, people in
Europe will soon travel
from one country to
another with great ease
and rapidity
(Part 5: Continued from March 3 issue)
IntheUnitedKingdom,infrastructure
spending gains favour with the
public—“once one of the first areas
slashed in troubled times, it’s now
better protected.” After the success
of the 2012 Summer Olympics, the
anticipation of London Crossrail, and
the convenience of high-speed rail
connections to Europe, voters have
grown to view major public works
expenditures as “a good way to fix
the economy, create jobs, and inject
capital into society,” while adding to
the “nation’s strategic asset base.”
In turn, the government has
developed an extensive, top-down
National Infrastructure Plan (NIP),
which “lays out big plans—averaging
more than $44 billion (£30 billion) in
outlays annually and has identified
550 projects totaling $471 billion (£310
billion) to 2015 and beyond,” with
“a particular focus on transport and
power.” But how to fund the ambitious
plan remains a concern.
High Speed Rail, housing
High Speed Rail 2, a $45 billion (£30
billion) project planned to zip riders
from London to Scotland, would take
pressure off increasingly congested
motorways and constricted airspace
around Heathrow, but remains in a
“talk but no action” limbo.
The $36 billion (£24 billion)
Crossrail, scheduled to open in 2018
and connect London’s east and west
suburbs by underground commuter
trains through the centre city, is the
“only big project that has seen any
action.”
Housing—“the best way to drive
economic growth”—sees “little
activity,” although hospitals and
schools will receive funding from
members of Parliament eager to
meet local constituent needs. Many
decisions about power strategies are
getting caught up in debates about
choices between nuclear, gas, and
wind generation, although Parliament
pushes a long-term $152 billion
(£100 billion) energy plan to protect
the economy and reduce carbon
emissions.
PPPs
Since the public purse is
constrained, initiatives increasingly
must rely on private capital sources
to move ahead. But a parliamentary
review of the PPP programme, the
Private Finance Initiative, now called
PF2, “has caused a big pause to many
projects.”
Complicating matters, government
reluctance to provide guarantees on
greenfield initiatives “adds uncertainty
and makes attracting funders more
difficult.” Risk-averse pension funds
in particular “are not coming to the
table as hoped.”
Many of the PF2 reforms “make
sense” to control costs and emphasize
lifecycle maintenance where each
stage of development, construction,
and operation is coordinated and
handled by the most appropriate
party (whether government or private
sector), with “zero tolerance” for
overruns in budgets and missed
schedules.
UK capability
“The success of the Olympics
demonstrated the skills and capability
in the UK when the conditions are right
and red-tape barriers are removed,”
but “the tension between localism
(planning prerogatives) and central
control (bureaucratic overreach) has
not been resolved.”
Some lament the UK’s loss of
manufacturing capacity, engineering
skill sets, and jobs in the rail sector
(rolling stock, signaling, and other
technology) as well as other industries
supportinginfrastructure development.
“Greater emphasis needs to be
placed on highlighting engineering
and infrastructure as a career” to
overcome the country’s expertise and
experience gap.
In addition, the arm’s-length
relationship between the government
and infrastructure providers makes
things more challenging. “German and
French firms have better relationships
with their governments, enabling them
to make more informed long-term
plans and investment decisions” in the
procurement process, which can lead
to innovation and lower costs.
Expectations are growing among
policy makers that motorways may
require privatizing to pay for new roads
and maintenance, but few politicians
expect the public to provide support
for tolling schemes on the country’s
mostly free highway network. A cheap
but efficient way to expand lanes
without widening roads is letting
drivers use shoulders during rush
hours.
Infrastructure priorities
In recent moves, the government
has implemented reforms to speed
up various energy infrastructure plans,
established a Green Investment Bank
to help finance $4.5 billion (£3 billion)
in large-scale offshore wind and
energy-from-waste projects; started
construction on four new highways;
committed $14 billion (£9.4 billion)
to invest in the country’s rail network
through 2019 (“the biggest railway
modernization since the Victorian
era)”; and accelerated the delivery of
superfast broad-band to ten “super-
connected” cities.
“W ider acceptance of the
importance of London to the UK
economy” generates discussion
about further expanding Heathrow
and/or the city’s four other nearby
airports to avoid potential airspace
gridlock.
Forecasts anticipate that greater
London’s population will increase
through 2020 by approximately 1
million people. Accommodating
this growth from both offshore and
domestic in-migration will necessitate
augmenting transport systems and
facilities—rail, roads, and mass
transit—and providing additional
housing.
More bridges
An immediate need may be
building more bridges to access the
city from east of the Tower Bridge. The
ongoing transformation of the Olympic
Park site—formerly a dilapidated area
in East London—into a new city district
also takes on added significance.
By design, the $13.4 billion (£9
billion) Olympics site will evolve into
an expanse of recreational areas
and entertainment venues with a
commercial centre and housing
for 8,000 families in five planned
neighbourhoods—all connected to
the London rail and underground
system through extensive new transit
lines built for the competition.
Olympic facilities in other boroughs,
including athletes’ housing, are also
serving to help regenerate once-
downtrodden districts and absorb
some of the city’s expected population
increases.
France
The cash-strapped government’s
limited capacity to fund major projects
outright leads to some cutbacks
and postponements and greater
reliance on PPP funding. Currently,
PPP initiatives priced at $43 billion
(¤33 billion) are in the infrastructure
pipeline through 2020, and a stimulus
programme provides $13 billion (¤10
billion) for financing of up to 80 per
cent of infrastructure projects.
Despite the fiscal constraints,
France is moving forward with
expanding its already world-renowned
high-speed rail lines (building out
routes from Tours to Bordeaux
and Bretagne to Pays de la Loire),
constructing a high-speed airport
rail link in Paris, approving a new
motorway concession between
Bordeaux and Bayonne, and awarding
contracts on a 60-mile (96 km) canal
project connecting the Rhine-Scheldt
waterway in Germany to the Seine.
The new socialist government is
paring back investment in nuclear
power, the nation’s primary energy
source, and looking to gain efficiencies
from energy-saving technologies,
equipment, and systems as well as
promoting green power alternatives.
Germany
Europe’s economic powerhouse,
Germany is one of the few countries
in the world that can afford to back
off infrastructure initiatives. Germany
is benefiting from its already built-
out infrastructure systems, which
feature some of the world’s best
rail (both freight and high-speed
passenger) and road networks as well
as efficient power grids and modern
water facilities.
As a result, the country does
not require significant infrastructure
expansions, except for projects to
hasten the transition away from
nuclear energy to renewable sources
of power.
Most outlays are directed at
upgrading existing roads—some
Autobahns are approaching the end
of 50-year lifecycles and require
ongoing capital for preservation
and enhancement. Others are being
directed at closing the remaining
gaps in the intranational Autobahn
infrastructure.
Railway, airports
Railway projects are also focused
on maintenance, although the $8.4
billion (¤6.5 billion) Stuttgart 21 rail
project will build out 35 miles (56 km)
of high-speed rail track, the latest leg
of an inter-country European Union
route connecting Paris to Bratislava,
Slovakia.
Major airport expansions are
underway in Munich and Frankfurt,
and the new Berlin-Brandenburg
Airport will open in the fall after cost
overruns and delays. These projects
will cement Germany’s place as the
hub of central Europe’s transport
network and primary connection point
for international travel as well as freight
delivery.
Spain
Spain’s big-budget infrastructure
building binge is hitting the wall—EU
bailouts are keeping the government
afloat but require significant spending
reductions, including the mothballing
of many road and rail projects. Some
people have called for a “more
proactive role from the government in
developing infrastructure,” lamenting
that “last year was an empty and lost
year for the sector.”
On the bright side, recent work by
the country has upgraded transport
systems dramatically. Spain now
features 8,750 miles of motorways
and dual carriageways—more than
any other European country. Its rail
network has expanded to more than
9,000 miles.
Thegovernmentremainsdetermined
to complete build-out of the longest
Patrick Phillips
CEO, Urban Land
Institute,Washington
Howard Roth
Global Real Estate
Leader, Ernst & Young
high-speed passenger-rail system
in Europe (second only to China’s)
with more than 6,000 miles of lines
connecting all major cities, by 2020.
The latest high-speed rail milestone,
a new line now links Barcelona and
Madrid to Paris. But severe budget
cutbacks are hitting local projects
(water, sewer, highway repairs) and
rural areas where road conditions
remain poor, and the country’s
electricity transmission sys-tem
requires new investment. After a spate
of bankruptcies in the road sector
attributable to changes in expropriation
laws and lower-than-expected vehicle
traffic, the government plans to toll
roads and increase energy tariffs to
help raise money.
Italy
In Italy, austerity budgeting
underfunds and delays government
development plans, which focus on
upgrading deficient infrastructure—
roads, rails, energy, and water—in the
historically neglected southern region.
Credit concerns over the country’s
high debt-to-GDP ratio raise borrowing
costs for private investors and further
compromise attempts to finance
initiatives. Most prominent among
sidelined projects is the long-sought-
after suspension bridge across the
Messina Straits to connect Sicily and
the mainland—at least the government
has allocated monies for additional
“exploratorywork”onthemassivespan.
Major rail routes and tolled
motorways receive generally high
marks for service and management,
but provincial tracks and back
roads tend to suffer from years of
underinvestment. At the beginning of
last year, the government hiked road
tolls by nearly 3 per cent to help private
concessionaires fund maintenance.
Also moving forward is the
construction of a high-speed rail
line from Turin, Italy, to Lyon, France.
The $11 billion first phase will begin
in 2014 and involve boring a tunnel
underneath the Alps at the border.
When completed in 2021, the new
line should help reduce travel time
between Paris and Milan from seven
to four hours.
Other government priorities include
building enhanced cross-border
passenger- and freight-rail links to the
Netherlands, Sweden, Germany, and
England.
(Continued in next issue)
(Courtesy: Ernst & Young)
London Olympics Stadium 2014
Paris-Barcelona high speed train

March 24-30, 2014 9
JCB launches compact 525-60 Hi-Viz
Telehandler
JCB, the world’s number one
telescopic handler producer, is
unveiling a new compact model
at Conepxo 2014 to add to its
growing Hi-Viz Loadall range for
construction.
The launch of the 525-60 brings
full-size telehandler performance and
features to the compact sector.
With a maximum lift height of 6m
and a load capacity of 2.5 tons, the
525-60 is just 1.8m wide and 1.91m
tall, allowing access to multi-storey
car parks and permitting operation
in confined site conditions.
During ConExpo, the Linden
Comansa team and its subsidiary
in the United States experienced the
reality of an optimistic market returning
back.
Linden Comansa America’s booth
was visited by top construction
companies in the United States and
Canada, as well as many rental
companies of tower cranes and lifting
equipment. The interest of the visitors
focused on the large cranes from the
LC2100 Series, such as the 21LC750
and the 21LC660, whose turntable
was exposed in Las Vegas.
Both models feature versions with
up to 48 tonne of maximum load
and are designed to deliver high
performances at any type of public
work.
“We experienced over twice the
activity of the last show,” says Bill
Carbeau, Vice President, Business
Development, Linden Comansa
America. “The visitors had high
interest and were ready to talk
about purchases or equipment
purchase plans. Over 60 per cent
were qualified candidates with over
half of those requesting information
and quotations.”
“Our theme was to generate
awareness and educate the potential
owner of the benefits of the Linden
Comansa product range. About 25
per cent of inquiries were related
The 525-60 Hi-Viz replaces the
524-50, 527-55 and the 520-50 rear-
engine models, with a modern side-
engine mount design. This permits a
low boom pivot point for maximum
stability and increased visibility to
the rear and across the boom.
to the luffing-jib crane family, while
about 75 per cent related to various
sizes of the highly acclaimed flat top
tower cranes. Although no orders
were written at the show, we received
requests for quotes totaling over 30
tower cranes. We are confident that
it will not comply with the phrase.
‘What happens in Las Vegas stays
in Las Vegas’ and that the show
will be a precursor to a great year
for sales.”
According to Martín Echevarría,
Linden Comansa’s Sales Director, the
ConExpo fair was much better than
expected. “We knew that the North
American market was improving, but
we were pleasantly surprised with
the atmosphere so optimistic and
the number of new projects that are
coming out. We have been very busy
during the entire fair, preparing offers
and making new contacts which we
hope will be fruitful in the upcoming
weeks,” he said.
The Las Vegas Convention Center
has also served to bring together
many dealers of Linden Comansa,
who came mainly from the Americas,
Europe and the Middle East, Canada,
Colombia, Chile, Brazil, Germany,
Sweden, United Arab Emirates, etc.
Along with them were also present at
ConExpo many final customers and
rental companies that use Linden
Comansa cranes in their projects.
EQUIPMENT
Sandvik appoints Parag Satpute
to head India operations
Parag Satpute has been appointed
as the new Country Manager, India,
at Sandvik Asia and will assume
office with immediate effect at the
company’s India headquarters in
Pune.
Sandvik Group is regarded as one
of the market leaders in the areas it
operates; Sandvik Mining, Sandvik
MachiningSolutions,SandvikMaterials
Technology, Sandvik Construction and
Sandvik Venture.
Commenting on the appointment,
Olof Faxander, Sandvik Group’s
President & CEO said, “India is
an important country and part of
Sandvik’s emerging market strategy.
Satpute will continue to develop
and further accelerate our growth
plans in the Indian market. He has
the appropriate acumen to take our
Indian organization forward.”
Satpute has held several leadership
positions within Sandvik Materials
Technology, including Head of product
area Wire & Heating Technology,
Regional Sales & Marketing Manager
for product area Strip within EMEA
(Europe, Middle East and Africa),
as well as Global Sales & Marketing
Manager for DieCutting.
His past positions also include
General Manager for Sandvik Saxon.
Prior to this he held a number of
positions within Sandvik Asia.
He holds an MBA from Warwick
Business School, UK and a Bachelor
in Mechanical Engineering from the
Pune University.
Busy ConExpo for
Linden Comansa
CASE showcases new products at
Conexpo-CON/AGG 2014 in Las Vegas
Grove’s RT770E
launched at ConExpo
CASE Construction Equipment
introduced the new CX350D
Hydraulic Excavator, CASE 821F
and 921F wheel loaders and five
models of the M Series dozers; all
equipment meeting the new Tier 4
final regulations for emissions control
and selective catalytic reduction
(SCR) technology.
The CX350D offers significant
advances in power, fuel savings,
operation and control it features an
innovative combination of cooled
exhaust gas recirculation (CEGR),
selective catalytic reduction (SCR)
and diesel oxidation catalyst (DOC)
technologies, which helps maximize
uptime and performance.
The CASE CX350D is rated at 268
horsepower and provides maximum
torque of 1048 NM; weighing in at
37376 kg, the machine features an
arm digging force of 16774 kg and
a bucket digging force of.23424
kg. The ‘Auto Power Up’ function
increases each of those to 18234 kg
and 25474 kg, respectively.
CASE Construction Equipment
has equipped each model of 821
F and 921 F wheel loader with a
selective catalytic reduction (SCR)-
only solution that treats emissions
separately with Diesel Exhaust Fluid
(DEF) and does not require the
engine to re-circulate exhaust gas.
This optimizes combustion
and machine performance, lowers
engine temperatures, and eliminates
m a i n t e n a n c e a n d d o w n t i m e
associated with filter replacement
and regeneration. It also helps lower
fuel consumption.
“CASE was the first to implement
SCR into our Tier 4 interim machines
Among the mobile cranes that
were on display at ConExpo this
year was the new Grove RT770E
rough-terrain crane. The 70-ton (65
t) capacity crane offers the longest
boom in its class, at 138 ft. (42
m), and is specially designed to
give customers all the benefits of a
traditional Grove rough-terrain crane,
but with extra-long reach.
Paul Cutchall, rough-terrain
product manager of Manitowoc
Cranes in North America, said the
new technology and cutting edge
design of the RT770E make it a logical
choice to be shown at ConExpo.
“We’re launching the RT770E into
probably the most popular capacity
class, so we knew we had to make
it stand out from the crowd, and with
its boom design I believe we’ve done
that,” said Cutchall.
“We were able to lengthen the
boom without adding more size and
weight to the chassis. This enables
the crane to be manoeuvrable, while
delivering greater lift capacity and
longer reach than other cranes in
its class. All of which means it is
because that solution makes the
most sense for wheel loaders based
on the inconsistent engine loads
placed on the machine throughout
its regular work cycle,” says Philippe
Bisson, Brand Marketing Manager,
CASE Construction Equipment.
Each new Tier 4 final wheel loader
delivers best-in-class horsepower
with a 6.7-liter Tier 4 final-certified
engine that also provides quick throttle
response and impressive torque. The
821F and 921F wheel loaders produce
212 and 241 net peak horsepower
(158 and 180 kW), respectively.
To provide operator comfort and
help boost productivity, the 821F and
921F wheel loaders feature a cab
with full climate control, as well as
an award-winning joystick steering
option, and equipped with two-level
hydraulic control system.
receiving plenty of interest here at
ConExpo,” he said.
The Grove RT770E’ s five-section,
full-power boom features single-
cylinder technology that eliminates
the need for a hydraulic hose reel,
which lightens the boom and in turn,
the entire crane. The design also
eliminates the need to install boom
inserts, which requires an assist
crane, saving both time and money
for customers.
The M Series dozers displayed at
Conexpo included five models ranging
from 92 to 214 net horsepower. It
uses highly-efficient hydrostatic
transmissions to deliver a class-
leading drawbar pull. The new M series
dozer is powered by a fuel efficient
FPT Industrial engine which allows
fuel savings up to 14 per cent. This
is the first time that selective catalytic
reduction (SCR) technology is built
into a CASE dozer. The new CASE
M Series dozer was fully launched
in the North American markets by
March 2014. In other regions where
the company operates, models will be
introduced with different timing and in
line with different market’s emission
requirements. CASE Construction
Equipment is now all set to introduce
the new product range with Tier 4
norms in India once it is implemented.

March 24-30, 2014 10REAL ESTATE
Pure investors have a
better chance of making
a profit in their dealings
simply because their
options are wider
How to succeed in property
investment
Asian Granito India opens AGL tiles
exclusive showroom in Nagpur
Getting into real estate investment
without proper understanding of
what you aim to achieve is not
advisable. There are many risks
involved in real estate investment.
However, with the right data and
advice, you can definitely succeed
in property investment. Here is a
general blueprint.
To begin with, you should know
what the odds are. The fact is that the
chances for inexperienced property
investors to either succeed or lose a
lot of money are more or less evenly
balanced. The likelihood of suffering
a loss is greater if the investor does
not have a good idea of the state of
the local property market.
Before investing in property,
make sure that you have enough
insurance. Many investors who
have succeeded in the property
arena safeguard their investments
by floating a nominal limited liability
company for their activities. This is
certainly an option, but not really a
necessity unless you are playing for
very high stakes and investing in
multiple properties.
Advice to end-user investors
Property investors actually fall
into two broad categories: end-users
and pure investors. That’s right
-- even end-users can technically
be described as investors in some
cases. These individuals seek to
make a percentage of profit on
properties that they are themselves
occupying. This may involve partial
rental or sale of a home or office,
retail or factory space.
This is not a very common
practice, and is usually seen only
in cases where the property is of
larger proportions and the part being
rented out or sold would otherwise
remain idle and non-productive.
More commonly, an end-user
seeks to sell the entire property.
This is usually done for reasons
other than returns on investment
-- the seller may be seeking larger
or more luxurious premises, may be
Asian Granito India Ltd (AGL),
among the top five ceramic tile
manufacturers in India, opened an
AGL tiles exclusive showroom in
Nagpur, Maharashtra. The showroom
will feature out-of- the-box, never-
seen-before collections of a wide
range of wall and floor tiles of
superior quality and unparalleled
variety under a single roof. This will
be the company’s fourth exclusive
showroom in the state.
With an aim of giving shape to
the company’s dream project of
having a strong retail presence
pan-India, Asian Granito India
Ltd has successfully opened 45
exclusive showrooms in cities like
Delhi, Jaipur, Bengaluru, Chennai,
ventilation and, ideally, the use of
a swimming pool, clubhouse and
other trendy facilities. They should
also be backed by adequate parking
facilities. Most buyers do not make
compromises on this last factor,
even if they give consideration to
the others
Choose to invest in properties
by reputable developers. The very
name of a famous builder makes a
definite difference on the bottom-line
of the sales deed.
Certain dynamics
A quick note on ready for
possession properties. Certain
dynamics of the property market
remain constant, so a profit is still
possible. However, a ‘readymade’
property bought for the purpose
of investment will have to be given
sufficient time to appreciate in
value.
Also, certain modifications
specific to a potential customer’s
needs may have to be made. The
cost that this involves would have to
be adjusted in the final amount.
Finally, if you are new at property
investment and are utilizing a
housing/investment loan in order to
invest in property, ensure that the
ratio of self-finance-to-loan amount
is conducive to a future profit. Also,
double-check all legal documents.
Property investment is not a
game of blind man’s bluff. Fortunes
can be lost for many reasons,
including spurious or incomplete
documentation, faulty judgment and
dealing with fly-by-night developers.
There are a number of bases that
need to be covered to reduce the
risk factor.
in the process of relocation, or may
not be satisfied with the property for
other reasons.
There may also be a need to
downgrade on certain expenses such
as maintenance costs. If the sale of
such a property is need-based, the
Ahmedabad, Udaipur, Trichy, Nashik
and Jalandhar till now.
With the opening of this showroom
inNagpur,thenumberofAGLtilesworld
exclusives has gone up to 46 outlets.
The company is planning to open
100 AGL tiles world exclusive stores
in the next two years. The company
has launched its AGL tiles world
exclusive’ showroom in partnership
with Asian Homes Style, Nagpur.
Explaining the strategic plans
of the company, Kamlesh Patel,
Chairman & Managing Director
of Asian Granito India Ltd said,
“Maharashtra is a very important
market for us with a large portion
of our revenues coming from the
southern part of India.
The properties in question can be
residential (flats, bungalows, row
houses, duplexes, etc), commercial
properties (offices, factory sheds,
etc), retail (eg mall space) and non-
developed or partially developed land.
Pure investors have a better
Guidelines
Investors of this kind should keep
the following guidelines in mind:
Location is everything. Even if
rates are steeper in a preferred area,
go for it. It will pay rich dividends in
the final analysis
profitability usually reduces since
the seller needs to cash in within a
limited period.
The kind of profit an end-user
can make on the sale of a property
depends on the age and state of the
property, its location and its inherent
value on the market. A residence
purchased 5 or 10 years ago will
have appreciated in value for the
simple reason that property rates are
constantly increasing. The value of
the property will be even higher if the
location is one in high demand.
However, the price that a property
which was in use until the time it is
put on the market will fetch also
depends on whether or not it is well
maintained, whether or not the owner
upgraded certain features to make it
more attractive to buyers, etc.
Advice to pure investors
Exclusive or pure investors buy
property for the exclusive purpose
of earning a profit on them; they
do not utilize the estate personally.
chance of making a profit in their
dealings simply because their
options are wider. There is also no
immediacy or urgency involved,
since the basic objective is profit.
Since they do not intend to
occupy the premises themselves,
they can rent out the property until
the time when they intend to sell it
off at appreciated rates.
It is always more profitable to invest
in properties under construction or
still in the planning stage. By the
date of actual completion, rates will
tend to be higher
If one chooses to invest in
residential real estate, the first
preference should be towards flats
that are located on the first floor.
They should offer a good view and
Kishor Pate
CMD, Amit Enterprises
Housing Ltd
P u n e - b a s e d V a s t u s h o d h
Projects announced the launch of
its AnandGram affordable housing
project at Ketkawale on Pune-Satara
Highway. AnandGram’ housing
projects are aimed at catering to
the needs of lower & middle income
group, where homes with all amenities
are provided in the price range of Rs
500,000 to Rs 20 lakh.
“The first upgraded ‘AnandGram’
with more than 500 homes will come
up at Ketkawale, on an eight acre
plot. It will set an all new benchmark
in the affordable housing segment
with the additions of some of the most
desired features and amenities,” said
Sachin Kulkarni, Managing Director,
Vastushodh Projects.
AnandGram projects are built in
the suburbs on highways connected
to Pune that are just 25 to 35 km away
from the city of Pune.
Vastushodh projects come
under two brands—AnandGram
and UrbanGram—for lower and
middle income group customers.
AnandGram offers homes in the
range of Rs 500,000 to Rs 1,500,000
and UrbanGram flats are available
in the range of Rs 15 lakh to Rs 30
lakh.
So far Vastushodh has completed
construction of 1,700 housing units
at multiple locations in Pune and is
currently in the process of developing
about 7.5 million sq ft with over
13,000 units of affordable housing.
Vastushodh
launches affordable
Pune housing project
“We have already opened 45
AGL tiles world exclusive stores
and in coming years will strengthen
our presence in Maharashtra. At
Asian Granito India Ltd, we believe
in providing more to our customers,
not only in terms of quantity, but
also quality, which is precisely what
AGL tiles world exclusives is set to
achieve.
“We felt the need of an exclusive
tiles showroom for people with
discerning taste, who are always on
the lookout for something different
and exclusive. A place where one
can choose from a wide range of
tiles available in varied sizes and
types for home and office spaces.”
In the past decade, the tiles
industry has evolved into a more
organized market with new users
emerging in various industries.
Competition and affordability have
transformed the industry and tiles
have become a fashion product and
its application areas have undergone
a tremendous change.
“Earlier tiles were mainly found
in bathrooms and kitchens, but now
due to the wide range of designs
and beautiful characteristics,
interior decorators, architects and
individuals as well are willing to use
tiles for flooring, drawing rooms,
bedrooms, exteriors and balcony
as decorative products. Printing
technology too has transformed
dramatically as digital printing has
opened up new avenues for the tiles
industry,” said Patel.

March 24-30, 2014 11
(Contd. from pg. 5)
Its work is on a par with the
best in the world and conforms
to international standards. It is a
reiteration of the Sobha philosophy
of using only international quality
products and construction technology
in all its projects and products.
Some of the key differentiators of
Sobha Interiors are:
Largest woodworking facility in
India spread over 325,000 sq ft
Best industrial practices followed
to achieve highest quality standards
and attain maximum efficiency
State-of-the-art machines with
latest available technology
Workforce proficient in modern
wood working technology
In-house detail design studio
Full-time German Master Joiner
at the factory to emphasize training
to attain highest level of efficiency in
production and quality control
Multi-level inspection and stringent
quality assurance protocol at all
stages of production
In-house computerized kiln drying
and wood seasoning plant
Fully automated robotized
polishing line to attain highest level
of finishes
Sobha Glazing & Metal Works
Division: Sobha Glazing & Metal Works
(SGM) has technical collaboration
with ‘Schuco International KG’ and is
authorized to market their aluminium
doors, window and glazing systems
in the country.
Till date, this 25,000 sq ft state-
of-the-art manufacturing unit of
the Sobha Group has successfully
executed a plethora of projects for
various prestigious organizations.
Its principal focus is to consistently
evolve products of high quality and
lasting value.
Sobha Concrete Products:
The Concrete Products Division
(CPD) of Sobha Developers Ltd is a
continuation of the Sobha Group’s
journey of excellence. Set up in Jigani
Industrial Area, Bengaluru, with the
same philosophy, vision and business
ethos, CPD manufactures concrete
blocks, pavers, kerbs, water drainage
channels, paving slabs and related
landscape products of international
quality in large scale volumes. Its
salient features include:
Hi-tech, full-fledged manufacturing
facility spread over 8 acres
Fully automated plant with an
asset base of over Rs 35 crore
Quality of products matching
international standards
Annual production capacity of 12
million units and above
Strengths from 5N/ sq.mm to 15N/
sq mm
S o b h a R e s t o p l u s - S p r i n g
Mattress: ‘Restoplus’ brand of spring
mattresses by Sobha Developers Ltd
was launched in 2007. Starting off with
250 franchises nationwide (except
East India), Restoplus has grown to a
Rs 30-crore annual business.
The volume of sales is split 30:70
between institutions (hotels and big
projects) and franchisee outlets.
Infosys alone has bought 16,000
mattresses for its various facilities so
far. High quality steel is used to make
the springs, coils and the shell.
Once ready, a couple of layers
of insulating mesh, some imported
from Spain, and protective felt are
attached. Then comes a layer of foam,
differing in thickness and density to
give ‘soft’ or ‘hard’ sleeping surfaces.
This is clothed in fabric. Once all this
is stapled together, the final (outer)
quilted fabric goes on.
What impact has the Indian
Green Building Council made
in promulgating protection of
environment and safety standards
in the construction industry?
The Indian Green Building Council
has made substantial impact on the
industry. Responsible industry players
have inculcated safety practices
and maintain safety standards in
construction.
Sobha is a process-driven
organization and is amongst the first
companies in the industry to obtain the
ISO 9001 certification. The company
has also received the OHSAS
18001:2007 and ISO 14001:2004
certifications for environment, health
and safety management systems.
The concept of a construction
industry council for the seven Saarc
countries was mooted in Sri Lanka
in 1999 to fight for their rightful
place in the global construction
industry.
Our industry body Credai is the
best one to explain this.
The real estate sector is one of
the fastest growing markets. What
influences have contributed to the
growth?
In the past decade, the Indian real
estate sector has grown exponentially.
The sector has expanded beyond
the metropolitan cities into tier-2
and tier-3 cities as well. It is also the
second largest creator of employment
opportunities in India.
The growth of this sector has also
fostered the growth of the 250-plus
ancillary industries such as steel,
cement, building blocks, paints
to name a few. Today, the sector
contributes to about 5 per cent of the
national GDP.
Since the economic liberalization
in 1991, the economy as a whole and
the real estate sector specifically have
witnessed tremendous growth. In
2005, FDI in the real estate sector was
permitted and it opened up a window
of opportunities.
In the same period, the Indian
economy was growing at about 8
per cent and continued to do so
for the next few years to come. The
IT and other services sectors such
as banking and insurance gained
prominence.
With this, there was an increase
in job opportunities and more and
more salaried professionals began
investing in real estate properties.
The high starting salaries in private
companies led to the deepening
of the market and this led to the
investors looking at the real estate
sector favourably.
How does infrastructure form a
prerequisite for sustaining long
term growth of the real estate
sector?
Infrastructure certainly is a
prerequisite for sustainable growth.
While the real sector has come a long
way and is significantly contributing
towards the economic growth of the
country, infrastructure plays a key role
since growth of sectors like urban
development, railways, roadways,
airports, power transportation, etc
has persuaded effect in the real
estate industry, and expansion in
these sectors is concurrent to the
development in infrastructure. Also,
increasing infrastructure requirements
from sectors such as hospitality,
education, tourism and healthcare are
providing numerous opportunities in
the real estate sector.
In the next 10 years how much
revenue the Indian sector is
expected to earn in US dollars?
Numerous reports and studies
estimate the Indian real estate sector
to post annual revenues of $180
billion by 2020 vis-à-vis $66.8 billion
in FY ’11, registering a CAGR of 11.6
per cent. FDI in the sector is expected
to increase to $25 billion in 10 years
from the current $4 billion.
How much investment (in US
dollars) does India need to
modernize urban infrastructure
over the next 20 years?
According to a McKinsey report,
an additional capital investment of
$1.2 trillion will be necessary to meet
the demand projected in Indian cities
and represent an increase in urban
infrastructure over the next 20 years.
This amounts to $134 per capita per
year, which is an eight-fold increase
from the level of spending today in
per capita terms.
Why do economic and financial
conditions have a major influence
on the commercial real estate
market in India?
No industry can operate in
isolation from the economic climate
of a country. Market conditions such
as inflation, stock market volatility
and rupee fluctuation have a direct
impact on the prices of real estate
properties.
Inflationary costs tend to directly
increase the cost of input materials
used in construction. We have also
seen how the recent monetary
policies, that are used to curb the
inflation, have led to an increase in
the interest rates. In this light, the real
estate sector is not insulated from the
economic and financial conditions.
The economic conditions have
also led to the boom in the real estate
sector. Post the 1991 liberalization, our
economy has witnessed tremendous
growth and numerous opportunities
remain to be explored.
The economic reforms and
financial conditions have fostered
the growth in the real estate sector.
An increase in the number of job
opportunities and a subsequent
increase in the spending power of the
working population have increased
the demand for real estate properties.
FDI in the sector has opened up
plethora of possibilities. We now have
access to latest technologies and
construction methodologies.
What are Sobha’s quality standards
that go into making a world-class
structure?
At Sobha, we believe in developing
aesthetically designed, functionally
efficient residential and commercial
complexes of world-class quality,
offering the highest value for money.
Our buildings reflect engineering
excellence and we work to provide
complete customer satisfaction. While
rendering our construction services,
we also focus on environment, health
and safety (EHS) matters to ensure
safety of all our employees.
Sobha is one of the first companies
in this sector to be awarded the ISO
9001:2008 certification for meeting the
requirements of Quality Standards in
1998. The company was also awarded
the ISO 9001:2000 certification for
adhering to the requirements of the
revised standard.
Sobha has also been awarded the
ISO 14001 (2004 series) and OHSAS
18001 (2007 series) certificates for
adhering to environment, health and
safety standards.
With the in-house Research &
Development (R&D) Department,
Sobha benchmarks itself against
world standards in project conception,
execution and delivery. The focus
is therefore on innovations in
construction and methods to adapt
and integrate these innovations into
work processes.
Sobha is highly regarded for its
transparency, fair play, integrity and
honesty. Every Sobhaite is pledged
to working towards redefining quality
for all its stakeholders. As a team,
we believe that Sobha epitomizes
‘Passion at Work’.
Which are some of Sobha’s current
projects under construction in
major locations?
This year, we launched Sobha
Palladian, a project based on neo-
classical architecture located on Old
Airport Road, Bengaluru and Sobha
Bela Encosta in Kozhikode, Kerala.
International City, our Gurgaon project
is also underway.
As an outstanding developer, what
benchmarks has Sobha created in
the industry?
A Sobha home exemplifies comfort
living. As an organization, Sobha,
in its every project undertaken till
date, has beautifully blended quality
with excellence, technology with
aesthetics and the sheer passion
for bringing out what an ideal home
reflects has culminated in the brand
Sobha stands for – PERFECTION!
INTERNATIONAL
Skanska signs $108 m deal for
Florida children’s hospital
Carillion lands £61 m
Dubai contract
Skanska USA has signed a $108
million (£65 million) contract for
renovation and construction work
at Golisano Children’s Hospital in
Florida, USA. It is leading a joint
venture with Gates Construction in
building a new eight-storey patient
block and renovating an existing
facility. .
The new patient tower will include
a paediatric emergency department
located on the second level. There
will be a total of 128 beds in the new
patient pavilion, with the capability
to expand to 160. Other services
located in the new children’s pavilion
include paediatric surgical services,
intensive care, oncology care,
outpatient clinics and a pharmacy.
The new pavilion will be designed to
withstand a Category 5 hurricane.
“We are eager to get major
construction underway,” said Dave
Dubai World Trade Centre
awarded the contract, which involves
a 146,000m2 development in the
heart of the city’s central business
district. The contract, which is
worth approximately £61 million and
includes an 8-storey office building
and a 588-room business and
tourism hotel, will begin next month
and is scheduled for completion in
Kistel, Vice President of facilities for
client Lee Memorial Health System.
“The demand for children’s services
in our community continues to grow
and our current facilities are often
at capacity. Travelling to get care
in hospitals in Miami or Tampa
compounds the stress on these
the third quarter of 2015. Phase-1
of the DTCD development will
include international ‘grade A’
offices and has achieved Leed Gold
precertification from the US Green
Building Council. The development
is also being designed in line with
the Dubai government’s Smart City
strategic agenda for incorporation
of technology.
in person
young patients and their families.
The new hospital will expand our
capabilities and keep children’s
care close to home.” Construction
of the new patient tower will begin
in April 2014. Both the renovation
and construction are slated for
completion in April 2017.

Construction Industry Review-2014 12 pg

Construction Industry Review-2014 12 pg

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Construction Industry Review-2014 12 pg