 Newsletters: December 2005
 |
| Lighting of Lamp by Dr Montek Singh Ahluwalia, Hon’ble Deputy Chairman, Planning Commission & Patron, CIDC during the Inaugural Function of the Eighth Convention on Construction, Development of Physical Infrastructure –Synergic Approach held on October 20, 2005 at India Habitat Centre, New Delhi, India. |
|
 Message from the Chairman (CIDC) ……………..
CIDC's 8th Convention on Construction -"Development of Physical Infrastructure - Synergic Approach" was organized during 20-22 October 2005 at New Delhi.The Conference was inaugurated by Dr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission & Patron CIDC. The conference had sixteen parallel seminars focusing on infrastructure development pertaining to various sectors of the economy. The event was a grand success with excellent participation from the Government as well as from various constituents of the Industry. I take this opportunity to convey my sincere thanks to all those who have been associated with the event. I am sure the recommendations of the conference would prove to be beneficial to the Industry.
I along with the Members of Board of Governors met the Patron Dr Montek Singh Ahluwalia on December 20, 2005 to apprise him of the main issues relating to the construction industry. In the presentation made to him, following problem areas affecting the construction industry, were highlighted:
- Lack of Institutional Finance
- Lack of skilled manpower
- Lack of harmonized contracting/procurement practices, including pre-qualification, lowest-bid syndrome, etc.
- Delays in claim settlement and lack of effective dispute resolution system
- Too many approvals, coordination with too many agencies
- Need for a Unified Construction Law
- Need for proactive action for project exports
A request was also made to have a separate 11th Plan Working Group of the Planning Commission dealing with Construction. CIDC will continue follow up action on these issues. Members are welcome to send to CIDC case-studies, highlighting these or other problem areas.
Finally I wish you a very happy New Year.
Uddesh Kohli
|
|
Top
|
|
 From the Desk of the Director General ……
The 8th Convention on Construction - “Development of Physical Infrastructure – Synergic Approach” organized during 20-22 October 2005 had indeed excellent deliberations on a wide range of issues affecting the Construction Industry. In total sixteen seminars were conducted over the three day period. Details of the seminars are given elsewhere in this News Letter. For each seminar, CIDC has compiled a set of recommendations arising out of the deliberations and the same are being circulated widely to create awareness and facilitate implementation. The event received excellent support and I am indeed thankful to all those who had come forward and extended their support.
I am happy to inform you that the CIDC International Arbitration Centre (CIAC) is now established with several eminent persons empanelled as arbitrators. The arbitration centre would encourage arbitration as an alternative dispute resolution process rather than prolonged judicial process.
In order to achieve better penetration of the activities of CIDC we have started working closely with several State Governments and their relevant departments. CIDC has received encouraging response from the States of Uttar Pradesh, Rajasthan, Madhya Pradesh & Karnataka.
While wishing all the members of Construction Industry a prosperous year, I am confident that the Industry would continue with its’ sterling performance.
P R Swarup
|
Top
|
|
8th Convention on Construction - “Development of Physical Infrastructure – Synergic Approach”
|
The 8th Convention on Construction - “Development of Physical Infrastructure – Synergic Approach” was organized by Construction Industry Development Council (CIDC) from October 20-22, 2005 at India Habitat Center, New Delhi.The Convention was inaugurated by Dr Montek Singh Ahluwalai, Dy. Chairman Planning Commission & Patron CIDC.
The event was well attended and participation included eminent members of government agencies, political leadership, academicians, consultants, contractors and other stakeholders. The convention highlighted the growing importance of the construction sector in India, present policies, institutional and regulatory framework. The cause of the industry was strongly advocated by stakeholders and resulted in stimulating, invigorating brains storming sessions that have resulted in the compilation of recommendations for improvement in the present state of affairs in the construction industry and gear it up to meet the challenges in the coming years.
|
|
| Dr. Montek Singh Ahluwalia, Hon’ble Deputy Chairman, Planning Commission & Patron, CIDC addressing the gathering during the Inaugural Session. |
Infrastructure is a key enabler and empowers the economy to grow. In Indian context, it is estimated that 1% growth in infrastructure yields a cascading effect of 2.5% growth of GDP. Hence development of physical infrastructure is the most critical issue for sustained future growth. The Government, both at the Centre & State level, has realized this and there is a conscious thrust by them to build the infrastructure of the Nation in a big way. China has undertaken a proactive approach by first creating a world-class infrastructure and thereafter inviting foreign direct investment. A massive US $ 500 billion FDI flowed in China to make it “Global Powerhouse of Manufactured Goods”. The convention was therefore designed to focus on development of physical infrastructure in various sectors & regions. |
|
Shri. Amar Singh, Chairman, UPDC on the dais during the Seminar on Infrastructure Development in
Uttar Pradesh. |
Sixteen parallel seminars were organized during the convention on the following themes:
- Infrastructure Development in Uttar Pradesh
- Infrastructure Development in Rajasthan
- Infrastructure Development in Madhya Pradesh
- Infrastructure Development In Roads & Highways Sector
- Infrastructure Vision In Rail Transport
- Infrastructure Development In Power Sector
- Infrastructure Development In Healthcare Sector
- Infrastructure Development In Civil Aviation Sector
- Infrastructure Development In Maritime Construction
- Infrastructure Development In Petroleum Sector
- Defence Infrastructure Development In Nation Building
- Housing & Civic Infrastructure Development
- Construction Standards In India - Eurocodes
- Synergy with SIAC, Singapore
- US-India Joint Symposium On Urban Housing & Supporting Infrastructure
- Strategies In Global Consultancy Development
Top
|
|
Indo-Japan Construction Forum Meet
|
|
|
Shri. R. Velu Hon'ble Minister of State for Railways addressing the gathering during the Meet. |
CIDC in association with Overseas Construction Association of Japan Inc. (OCAJI) organized an Indo-Japan Construction Forum meet on 2nd December 2005 at Oberoi Hotel, New Delhi. The programme was organized with the aim to initiate interaction between Indian and Japanese construction entities to discuss business opportunities, Joint Venture, investment in infrastructure & vital new trends. The inaugural session was graced by Mr. Minehisa, Hon’ble Vice Minister for Land & Infrastructure, GOJ and H.E.Mr. Enoki Ambassador of Japan among other dignitaries from the construction industry. Hon’ble Minister Shri R. Velu Minister of State for Railways graced the Business Session as the Chief Guest. The programme featured presentation of Company profile by the Japanese & Indian construction companies. This was followed by one to one interaction between the participants. The excellent participation by the Japanese companies during the event indicates their keenness to enter Indian market.
Top
|
|
Implementation of Projects in Sudan
|
CIDC is exploring to implement projects is Sudan. Following areas have been identified:
- Supporting Sudanese Govt. to develop efficient procurement practices.
- HRD at all levels.
- Developing Economic parameters.
- Facilitating development of project profiles.
|
The Indian Ambassador to Sudan has offered support to CIDC to set up a representative office in Khartoum.
Top
|
|
Seminars on “Green Building Technology and Products” in Ahmedabad & Bhopal
|
As a sequel to the interaction with the States Govt. officials, CIDC is organizing seminar on “Green Building Technology and Products Conference” at Ahmedabad & Bhopal during 3rd week of February 2006. The issues for deliberation are as under:
- To promote the Development of Green Building by Strengthening the Research of Science and technology
- Green-Value
- Towards an Enabling Framework for Sustainable Building
- Technology for Energy Conservation
- Integrated Building for Energy, Security and Comfort
- The Global Development of Intelligent and Green Building
- The Design Guideline and Evaluation System Study for Green Building
- Green Building with Environmental Management System
- Retrofication of Buildings
- Solar & Wind Technologies
- Introduction to Trenchless Technology
- Case Studies in Implements Trenchless Technology
- Bidding and Contracting Trenchless Project
Top
|
|
INCITE 2006: International Conference on IT in Construction
|
Keeping in view the importance of IT & Advanced Technologies in construction to bring about substantial improvement in construction works practices, CIDC is exploring the possibility of organizing the following parallel seminars during INCITE 2006:
- IT & Advanced Technologies & their Applications in Construction Activity in Railways
- IT & Advanced Technologies & their Applications in Construction Activity in Housing, Urban Development & Civic Infrastructure & Developing an Indo UK Action Plan for this field
- IT & Advanced Technologies & their Applications in Construction Activity in Power Sector
- IT & Advanced Technologies & their Applications in Construction Activity in Petroleum Sector
- IT & Advanced Technologies & their Applications in Construction Activity in Maritime Sector
- IT & Advanced Technologies & their Applications in Construction Activity in Roads & Highway Sector
- IT & Advanced Technologies & their Applications in Construction Activity in the heartland Sates of Uttar Pradesh, Madhya Pradesh & Rajasthan
- Human Resources & their role in IT & Advanced Technologies in Construction Industry
- Global Partnerships in Consultancy for IT & Advanced Technologies in Construction
- Action Plan for Indo-US consultancy in introduction of IT & Advanced Technologies in Housing, Urban Development & Infrastructure
Top
|
|
CIDC Submits Eight Study Proposals
|
CIDC has submitted the following study proposals to the concerned department/authority:
- Training Skill Upgradation & Certification of Unskilled Workers & Supervisors in Construction Industry to Planning Commission.
- Proposal to document good practices adopted in Execution of Chamera II Hydro Electric Project to Ministry of Power.
- Proposal for Training, skill upgradation, testing & certification of unskilled workers & supervisors in construction industry utilizing HUDCO Building Centres submitted to Ministry of Urban Employment and Poverty Alleviation, Govt. of India.
- Proposal for a “Study for Pilot Project to promote Health Tourism in India” has been submitted to Ministry of Health & Family Welfare.
- Study Proposal for Formulation of comprehensive and unified construction laws in India has been submitted to Ministry of Law.
- Proposal for study on the “Effectiveness of alternative dispute resolution mechanism in speedy and economic dispensation of justice as compared to conventional mechanism” has been submitted to ICADR.
- Proposal For Training Of Masons In Uttar Pradesh Under UNDP - Disaster Risk Management Programme.
Top
|
|
Diploma Programmes in Civil, Electrical & Mechanical Engineering
|
Consequent to the signing of the Agreement between CIDC & IGNOU on 18th July, 2003, Diploma Programs in Civil and Electrical & Mechanical Engineering are being offered for Indian Army personal on full time basis. These programmes are being offered at three locations viz Roorkee, Pune & Bangalore. The third batch is due to commence classes shortly. This programme is now being expanded to benefit civilian candidates also. M/s. Unitech Ltd, M/s Simplex Concrete Piles Ltd, M/s Continental Construction Co Ltd. and several others have shown keen interest in this programme, which is scheduled to be launched by 6st January 2006. The programmes shall be offered under distant learning mode.
Top
|
|
CIDC Submits Budget Memorandum to the Hon’ble Union Finance Minister
|
CIDC takes up every year problems and issues affecting the Construction Industry for consideration of Hon’ble Union Finance Minister and other relevant Ministries / Department of the Union Government and recommends measures for inclusion in the oncoming Union Budget. In this context CIDC approached its members and several other industry constituents to obtain feedback for preparation of a comprehensive memorandum to be submitted to the Hon’ble Union Finance Minister for the Union Budget 2006-07. The expressions received were compiled and the Chairman CIDC forwarded the same to the Hon’ble Minister as suggestions for the Union Budget 2006-07.
Top
|
|
Dr K Mohan Takes Over as Director General of NCB
|
 Dr K Mohan, an eminent cement scientist of international repute, has taken over as Director General (Acting) of the National Council for Cement and Building Materials (NCB), a premier scientific and industrial research organization under the Ministry of Commerce & Industry, Government of India, with its main Laboratories at Ballabgarh (Haryana) and other Units at Hyderabad, Ahmedabad and Bhubaneshwar. Prior to assuming charge of this prestigious position, Dr Mohan was the Additional Director at NCB.
Top
|
|
First Indian Elected to FIDIC Executive Committee
|
 Mr Subhash Mehrotra, President, Consulting Engineering Association of India (CEAI) has been elected to the Executive Committee of Federation Internationale des Ingenieurus-Conseils (FIDIC) for the period 2005-09 during the General Assembly Meeting held in Bejing, Chaina, on 7th September 2005. Mr Mehrotra is the first Indian elected as member of the FIDIC Executive Committee. He is also Member of the Business Practices Committee of FIDIC and Chairman of the FIDIC Task Force on Guarantees and Bid Bonds.
Top
|
|
CIDC-SIAC Arbitration Workshop, 25-27 Aug. 2005, Chennai
|
CIDC in association with Singapore International Arbitration Centre, Singapore (SIAC) organized a workshop on “International Arbitration Practices” during 25-27 Aug. 2005 at Chennai. A total of 75 participants from all over the country registered for the workshop. The workshop provided details about various issues pertaining to international arbitration through the following eight modules:
- The Arbitral Process and the Framework of Arbitration in Singapore
- Resolution of Construction Disputes
- Introduction to the Law of Torts
- Comparative Contract Law (with a few insight on evidence)
- Introduction to Dispute Resolution & the Framework of Arbitration in India
- SIAC Arbitration
- SIAC-CIDC Dispute Resolution Process
- Arbitration – Practicum
Top
|
|
CIDC Updates Report on the Study on Construction Financing
|
One of the major impediments in the growth and development of Construction Industry is the lack of financial support at reasonable costs. With the aim to identify and highlight the issues that render the Industry without adequate financial support, CIDC has conducted a study and a report has been prepared. The report is titled “Construction Financing – An Overview”. The report identifies the following issues: very high cost of bank guarantees; absence of fund based support (absence of the system of factoring of bills, absence of availability of bridge finance etc.); erratic payments by the owner; high cost of construction equipment, which discourages mechanization; the case of Karnataka State Contractors Cooperative Bank is highlighted to impress on the need of dedicated financial institutions for the Industry. The report also works out the multiplier effect of construction in the economy and presents data such as per capita expenditure on construction, credit to deposit ratio of Banks etc.
Top
|
|
Executive Development Programmes:
|
The following Executive Development Programmes were organized by CIDC:
Delhi:
- Computer Aided Project management Tools & Techniques (with Computer Practical) on 22nd – 24th June, 2005 at Radisson Hotel, New Delhi.
- Managing Construction Sites Including Building Material Management on 13th – 15 July, 2005 at Radisson Hotel, New Delhi.
- Negotiation Skills and Strategic Planning on 22nd – 23rd August, 2005 at Radisson Hotel, New Delhi.
- Impact of WTO and GATS on Indian Construction Industry on 4th – 5th August, 2005 at Radisson Hotel, New Delhi.
- Latest Construction Materials & Emerging Technologies, Use of Chemicals in Concrete & Water Proofing on 22nd to 24th August, 2005 at Radisson Hotel, New Delhi.
- Latest Trends in E/M Materials, Machines and Equipments Including Safety Aspects in Construction Industry on 7th – 9th September, 2005 at Radisson Hotel, New Delhi.
- Legal Aspects of Contract Management, Arbitration and Dispute Settlement Mechanism on 9th – 11th November, 2005 at Radisson Hotel, New Delhi.
- Vulnerability Reduction of Building in Earthquake Prone Regions on 24th – 25th November, 2005 at Radisson Hotel, New Delhi.
Chennai :
- Improving Construction Productivity, 2 - 3 December, 2005 at Hotel Radha Park Inn,Chennai.
Mumbai:
- Legal Aspects of Contract Management, 1-2 September 2005.
Hyderabad:
- Legal Aspects of Contract Management, 4-5 October 2005.
Top
|
|
Construction Workers Training and Certification Programme
|
The following Construction Workers Training / Certification Programmes were organized by CIDC during the July – December period:-
- MEG & Centre, Bangalore : 1st July, 2005
- Gramin Vikas Trust – Sajjangarh (Banswara Raj) : 9th July, 2005
- Gramin Vikas Trust – Dungerpur, Banswara (Raj) : 9th July, 2005
- Gramin Vikas Trust – Kelkua District, Dahod : 10th July, 2005
- Gramin Vikas Trust – Kushalgarh District, Banswara (Raj) : 10th July, 2005
- MEG & Centre, Bangalore : 29th July – 1st August, 2005
- G K Construction & Maintenance : 17th August, 2005
- MEG & Centre, Bangalore : 20th August, 2005
- CPWD, Netaji Nagar, New Delhi : 22nd August, 2005
- MEG & Centre, Bangalore : 27th August, 2005
- MEG & Centre, Bangalore : 3rd September, 2005
- MEG & Centre, Bangalore : 9th September, 2005
- MCM, Faridabad : 10th September, 2005
- Gramin Vikas Trust – Shivgarh, Ratlam : 13th September, 2005
- MCM, Faridabad : 23rd September, 2005
- G K Construction, DLF Phase – II, Gurgaon : 30th September, 2005
- MEG & Centre, Bangalore : 14th October, 2005
- MEG & Centre, Bangalore : 22nd October, 2005
- Gujarat Mahila Housing Trust (GMHT) : 24th October, 2005
- CPWD, Netaji Nagar, New Delhi : 28th November, 2005
Top
|
|
Construction Cost Indices
|
CCI for November 2005
Base = 100.00, Jan 1998
Sector |
City |
| |
Delhi |
Kolkata |
Chennai |
Hyderabad |
Bangalore |
Mumbai |
| Building |
127.96 |
138.06 |
123.83 |
143.74 |
125.31 |
136.40 |
| Bridges |
130.95 |
139.40 |
126.89 |
148.68 |
128.79 |
140.41 |
| Dams |
125.52 |
134.80 |
123.79 |
138.57 |
125.21 |
136.06 |
| Medium Industry |
134.57 |
140.04 |
128.40 |
148.03 |
128.43 |
143.60 |
| Maintenance |
146.42 |
142.58 |
132.18 |
159.14 |
127.81 |
143.63 |
| Roads |
134.00 |
139.05 |
125.66 |
138.22 |
134.99 |
135.07 |
| Mineral Plant |
127.89 |
137.84 |
125.15 |
140.41 |
125.42 |
138.01 |
| Urban Infra. |
135.66 |
134.54 |
127.21 |
153.55 |
125.78 |
143.55 |
| Power |
126.05 |
133.20 |
126.00 |
142.65 |
122.96 |
138.78 |
| Railways |
130.72 |
135.69 |
125.69 |
142.23 |
122.47 |
137.91 |
| Transmission |
131.48 |
137.10 |
125.10 |
144.72 |
123.62 |
139.10 |
Top
|
|
Performance of Infrastructure Industries
|
The indices of six core-infrastructure industries registered a growth rate of 4.4%(provisional) during the April-Nov. 2005-06 period as against 6.7% in the corresponding period of the previous year. Individual performance of the six core sector industries are given below:-
| Industry |
Growth Rate in % |
| |
April-Nov. 2004-05 |
April-Nov. 2005-06 |
| Coal |
7.3 |
5.6 |
| Electricity |
6.7 |
4.9 |
| Finished steel |
8.0 |
7.2 |
| Cement |
6.7 |
10.6 |
| Crude petroleum |
3.3 |
(-)5.7 |
| Petroleum refinery product |
6.3 |
(-)0.7 |
| OVER ALL |
6.7 |
4.4 |
Source: Central Statistics Organization, Govt. of India |
|
|
