News

What made the elephant dance?

What has made the world sit up and suddenly take notice of India? "It cannot be India's beauty queens, fashion shows or our cuisine," said Mr. P. Chidambaram, Union Minister for Finance. Then, what has made the elephant dance? It is India's success story of economic growth that made the world look at the country.

Addressing the 'Advantage India' session at the recent annual Asian Development Bank (ADB) conference in Hyderabad, he expressed the confidence that India would join the league of developed nations in less than 14 years.

It took 14 years for the country to transform from "a poor and perhaps forgotten country" to a thriving and increasingly noticed emerging economy. It would take even less time for India to join the league of developed nations, he said.

The GDP growth rate soared to an average of 7-8 percent in the last three years against an average of 6.3 percent during 1992-2001.

Relating how the Indian economy has emerged as an attractive destination for investments, he said that the growth had been largely fuelled by domestic savings. More Foreign Direct Investment (FDI) will further fuel investment rate and globalisation of Indian companies.

Stating that investor confidence in India was at an all-time high, he said that A.T. Kearney had ranked the country as the second most attractive investment destination.

The finance minister also said that the second and much bigger wave of offshore manufacturing was yet to come.

While the first wave consisted mostly of labour-intensive items, the second wave, which had just begun, could reach US$ 1.6 trillion annually, triggering skill-intensive manufacturing.

He predicted that the annual growth rate of 25-30 percent in services exports would continue in the next six years. Stating that the country had managed to break away from 2-4 percent per capita growth average, he further elaborated that there would be more than 200 million new people earning incomes above Rs 6.75 lakh annually by 2025.

- Business Line

NHDP phases-IV to VII

The union government is intending to take up highway projects costing about Rs 2,200 billion (US$ 50 billion) with a major portion of the projects proposed to be implemented through public private partnership (PPP) model, said Mr Nirmal Jit Singh, Member (Technical), National Highway Authority of India (NHAI).

Addressing a national seminar on 'Road Construction Projects' organised by the Confederation of Indian Industry (CII), he said the huge programme requires, apart from substantial private sector financing, a massive expansion in contracting and consultancy sector, human resources in terms of skilled manpower, equipment and improvements in dispute resolution mechanism.

Having already approved projects in three phases of National Highway Development Programme (NHDP), the central government is currently considering phases IV to VII. While phase - IV would comprise two-laning with shoulders of 20,000 km of national highways, Phase-V would comprise six-laning of 6,500 km of NHs, primarily the Golden Quadrilateral and some other high-density corridors.

Phase-VI of NHDP comprises construction of 1,000 km of expressways. The potential corridors include Vadodara-Mumbai, Delhi-Agra, Delhi-Jaipur, Delhi-Chandigarh, Chennai-Bangalore and Dhambad-Kolkata. Under Phase-VII, the government plans to take up projects such as ring roads, bypasses and elevated highways, he said.

- Business Line

Government to tap 50,000 MW hydel power potential

After roads, it's now the turn of hydel projects to go the BOT way. Rather than power utilities, private sector construction companies are investing in hydel power. A number of construction companies, including Jaiprakash, Gammon and Nagarjuna Construction, have taken up hydel-power projects on a BOT basis. While two such projects are already operational - 300 MW Baspa hydel project and 82 MW project in Himachal Pradesh - many more are to follow.

The government is considering to set up a 50,000 MW hydel-power projects over the next 15-20 years, which is 1.5 times the total capacity set up, approximately 32,000 MW since independence till date. The estimated amount to be spent on hydro-power projects is to the tune of Rs 2,000 billion. The ministry of power has identified around 162 projects spread across 16 states through out India.

It is understood that Gammon India Ltd is working on a 60 MW hydel project in Sikkim, the company has received the letter of intent and is conducting a feasibility study. The project cost is estimated at Rs 4,500 million and will be implemented by Gammon Infrastructure Projects, a subsidiary company set up for equity investments in infrastructure projects.

Another 100 MW hydel project also in Himachal Pradesh, is being jointly promoted by Nagarjuna Construction, SSJV Projects and Maytas Infrastructure. The cost of this project is estimated at Rs 4,990 million. Others like Patel Engineering Ltd.(PEL) are also interested in hydel power.

A hydel project has high capital costs and a long gestation period - construction can take 5-7 years, more than coal or gas-based power. However, once completed, expenses are minimal.

- Economic Times

NHPC to invest Rs 600 billion for new projects

The National Hydro-electric Power Corporation (NHPC) has identified various locations for setting up plants with a combined capacity of 26.870 MW. It plans to invest around Rs 600 million for capacity addition by 2012.

NHPC is buoyant about the prospects of plants in Arunachal Pradesh and Jammu and Kashmir. It has set its sights on nine projects in Arunachal Pradesh with a combined capacity of 23,000 MW.

The hydel power generation major is also looking at developing six projects in Jammu and Kashmir with a total capacity of 3,870 MW.

NHPC believes that the total hydroelectric generation potential in the north eastern region of the country is around 60,000 MW. "Only 2 percent of this potential has been tapped", NHPC chairman and managing director, Mr S.K. Garg said.

It takes an investment of around Rs 50 million per MW for hydropower generation to be set up. "Of the 600 billion investments that we have planned, funds will come from the government's equity support, internal company accruals and borrowings from domestic and international markets", Mr Garg said

- Business Line

Water policy: ADB to promote PPPs

An independent review panel of Asian Development Bank's (ADB's) water policy has asked the bank to promote 'business unusual' by sharing risks and encouraging public-private partnerships (PPPs).

The panel suggested that it was time to move away from traditional sovereign guaranteed loans toward risk-sharing arrangements with investors. "We should find financial instruments that allow sharing risks that often pose challenges to PPPs", said Mr Pradeep Singh, President and Chief Executive Officer of IL&FS, who is also on the panel.

The panel, chaired by Ms Erna Witoelar of Indonesia, has submitted the 72-page report to the ADB board at the 39th annual meeting of the bank.

The panel felt that the bank should double and sustain an increase in water sector financing in the next four years. It also pointed out that the bank needed to improve the in-house capacities to meet its goal of 'water for all'.

It called for efforts to work more closely with knowledge management organisations and civil society to improve monitoring of social and environmental impact of ADB projects.

Mr Pradeep said that the bank should focus on five river basins in five countries.

- Business Line

Power plant upgradation on cards

The government is going to upgrade a total of 225 power plants, both thermal and hydroelectric, at an estimated cost of Rs 124 billion, according to power minister, Mr Sushil Kumar Shinde. If the renovation and modernisation (R&M) scheme becomes successful, it will help generate an additional 12,263.31 MW in the coming years, Mr Shinde added.

The minister stated that 106 old and 57 comparatively new thermal power plants had been identified for the life extension (LE) scheme and the renovation and modernisation (R&M) works respectively.

The old plants already have a capacity of 10,413 MW. After the LE scheme is implemented at a cost of Rs 92 billion, the plants can increase generation up to 10,747 MW.

By investing heavily on renovation and modernisation of old power plants, the government is trying to achieve 34,024 MW generation target in the Tenth Five Year Plan. The government is aiming to add 62,000 MW in the 11th Five Year Plan, which can be further increased depending on the availability of gas at the right time.

- Financial Express

Core industries post 8.8 percent growth in March 2006

The six infrastructure industries posted a healthy growth of 8.8 percent in March 2006 compared to a growth of 6.9 percent in March 2005. These industries, however, grew just 4.9 percent in the whole of 2005-06, compared to 5.8 percent in the previous fiscal, largely due to negative growth in petroleum (crude) and slump in petroleum products and finished steel for most part of the year.

According to the data released by the government, cement was a major performing sector. Cement production recorded a growth of 17 percent in March 2006 compared to 6.3 percent in the corresponding period last year. It had grown by 12.3 percent during 2005-06 compared to an increase of 6.6 percent in the same period in 2004-05, thus doubling its growth.

The six industries namely crude petroleum, petroleum refinery products, coal, electricity, cement and finished steel have a combined weight of 26.7 percent in the index of industrial production with base 1993-94.

- Financial Express

CII supports domestic equipment industry

The Confederation of Indian Industry (CII) is of the view that development of road projects in the country would tremendously benefit the manufacturing industry and would lead to overall GDP growth.

As investments in the road sector is coming up in a big way, CII views that there are lot of opportunities for the earthmoving and construction equipment industry to meet the growing demand in this sector.

In this context, CII has made certain submissions to the Ministry of Road Transport & Highways (MORTH) on behalf of the domestic equipment industry.

According to Mr V.R.S. Natarajan, Chairman of CII's Mining and Construction Equipment Division, the domestic equipment industry is facing acute crises due to import of second hand machinery. Since there is no restriction on the age of the imported second hand machinery, it leads to grave hardship to the domestic industry.

CII has urged the government to impose higher import duty on second hand machinery and restrict the age of the equipment to seven years.

The CII has also appealed for a reduction in the duty on parts and components of equipment compared to new machinery.

At present, the import duty on the machinery and equipment is 12.5 percent. Further, CII has also requested the government to withdraw the 'Purchase Preference Scheme' as it considers the present scheme of purchase detrimental to the policy of promoting efficiency and maximising domestic value-addition.

- Business Line

Mumbai Metro can solve traffic ills

With the Reliance-ADA Group accepting the Maharashtra state government's request to slash the viability-gap funding (VGP), the Mumbai Metro project could soon get off the blocks.

The group was chosen through an international bidding process followed by the MMRDA in two phases - technical and financial. This will be the first metro project to be developed by the private sector.

The project will see an 'aggressive' construction period of four years. The proposed corridor is considered to be the most congested alignment in the suburban region, which witnesses perpetual traffic jams. When completed, it is expected to carry more than 500,000 passengers every day.

The metro promises to offer services at fares comparable to BEST and suburban local trains and also help reduce traffic congestion on the road corridor.

The Versova-Andheri-Ghatkopar link is the first in a series of metro rail projects for Mumbai. The Rs 75,000 million Colaba-Charkop line is also awaiting clearance from the government.

- Times of India

Bangalore Metro Rail project cleared

The union cabinet gave its approval for the Bangalore Metro Rail Project covering a length of 33 km in two corridors at a cost of Rs 54,530 million. The project to be implemented by BMRC (Bangalore Metro Rail Corporation) in five years will have a debt equity ratio of 70:30.

The main objective of the project is to provide the much-needed transport infrastructure to the city of Bangalore, said Mr. Jaipal Reddy, urban development minister.

BMRC has tied up with Japan Bank of International Cooperation (JBIC) for a loan of Rs 1,699 million for phase 1 of the metro rail transit system. The group of ministers had approved the Rs 63,000 million project earlier this month and it was waiting for clearance by Cabinet Committee on Economic Affairs.

The Bangalore Metro will have an east-west corridor of 18.1 km and a north-south corridor of 14.9 km. Both the corridors will have elevated, underground and a small portion of surface raillines.

- Financial Express

Mott MacDonald to design Delhi airport

The GMR-Fraport consortium has appointed Mott MacDonald Group as the leading technical advisor for modernising Delhi airport at a cost of Rs 600 million. Mott MacDonald has, in turn, appointed leading global architect HOK International to design the airport.

According to civil aviation ministry sources, the consultant would be required to submit a master development plan to the Airports Authority of India (AAI) within six months.

The sources also said that once the master plan is devised by September, it has to be approved by AAI before being implemented. On May 3, 2006, GMR had taken over the management of the Delhi airport from AAI.

- Financial Express

BMC to implement eco-housing certification

The Brihanmumbai Municipal Corporation (BMC) plans to introduce 'Eco-Housing Certification Programme' to regulate the rapid and large scale housing constructions in Greater Mumbai.

The programme also aims at promoting environment friendly and energy efficient housing projects in Greater Mumbai

"BMC will partner with the United States Agency for International Development (USAID), International Institute for Energy Conservation (IIEC) led by Pune-based Science and Technology Park (STP) to institutionalise eco-housing practices," said Additional Municipal Commissioner (Projects), Manu Kumar Shrivastav. The initiative is aimed at lessening the burden on the city's infrastructure and environment, he added.

The eco-friendly initiative includes use of solar energy, rainwater harvesting, segregation of garbage, vermiculture, sewage processing units, water recycling and tree plantation by the developers and builders in their upcoming projects.

According to BMC sources, the eco-housing system will save a lot of energy and ensure minimal usage of conventional resources.

- Financial Express

Construction of Three Gorges Dam completed

China completed construction of the world's largest dam on May 20, 2006, in Three Gorges area, central China's Hubei Province, signifying a milestone accomplishment of the mammoth Three Gorges water control project that aims to tame the flood-prone Yangtze, the nation's longest river. The concrete placement of the dam's main section was completed 10 months ahead of schedule, which will enable the dam to start its role in power generation, flood control and shipping improvement in 2008, one year ahead of designated time.

After the cofferdam is demolished on June 6, the dam's main wall, often compared to the Great Wall in its scale, will formally begin to hold water, protecting 15 million people and 1.5 million hectares of farm land downstream from flooding, which had haunted the Yangtze River valley for thousands of years. Upon the demolition, a new landscape featuring a reservoir with a serene water surface behind the spectacular dam will gradually come into being along with planned rises of the water level.

The Three Gorges, which consist of Qutang, Wuxia and Xiling Gorges, extend for about 200 km on the upper and middle reaches of the Yangtze. They have become a popular world-class tourist destination noted for beautiful natural landscapes and a great number of historical and cultural relics. This section of the Yangtze has a narrow river course which is inconvenient for shipping but boasts abundant hydroelectric resources.

Pu Haiqing, deputy director of the State Council, Three Gorges Project Construction Committee, said the project manifests that a dream comes true and the philosophical thinking and wisdom of the Chinese people in following the law of nature and making use of it for the benefit of the people. He said the completion of the dam of Three Gorges Project marks a phased victory, for there remains great deal of work ahead, including resettlement and environmental protection.

The Three Gorges project was initially envisaged in 1918 by Sun Yat-sen, the forerunner of China's democratic revolution. It had undergone protracted debates and researches for around half a century before it was finally approved in 1992 by the National People's Congress, China's top legislature. It is designed to control floods, to generate clean energy and to benefit shipping, with flood control as its major objective.

The project, the world's largest water control project, recruited 26,000 people, including professionals and specialists from 50-odd countries and regions, at the peak of its construction. It is also, the world's largest hydroelectric project, boasting a total electricity generating capacity of 22.4 million kilowatt.

The project's main dam, which is 2,309-m long and 185-m high above sea level, involved concrete placement of 16 million m3, smashing the 12.57-million m3 record set by the Itaipu Hydropower Station on the border of Brazil and Paraguay.

More than 1 million people have been moved to pave way for the project, and most of them have been resettled.

- Xinhua online

New titles from ACI

The American Concrete Institute (ACI) has published three new titles recently.

Epoxy injection in construction

The first publication is titled, 'Epoxy Injection in Construction'. This publication presents the science and art responsible for the successful injection of concrete. The expanded edition includes updated information on the technology and best practices of epoxy injection; reflections on improvements in methods, equipment, and chemistry; new information on the role of the owners' representative in the injection project; and more than 100 photographs and illustrations. The price of the publication is US$ 105.00.

ACI detailing manual

The second publication is titled 'ACI Detailing Manual'. It provides answers to many detailing questions asked by design engineers, architects, contractors, detailers, and engineering students. The book is divided into three sections and includes ACI documents: '315-99: Details and Detailing of Concrete Reinforcement' and '315R-04: Manual of Engineering and Placing Drawings for Reinforced Concrete Structures', as well as supporting reference data. The three sections are:

  • Section 1 defines responsibilities for architects, engineers and detailers and establishes standards of practice for both structural and placing drawings.
  • Section 2 illustrates methods for presenting necessary design information through 50 oversized, fold-out drawings of highway and non-highway structures. Structural drawings confirm to 'Building Code Requirements for Structural Concrete (ACI 318-02/318R-02)' and all drawings were prepared with the assistance of the Federal Highway Administration, California Department of Transportation, and Concrete Reinforcing Steel Institute.
  • Section 3 includes supporting reference data in specific chapters on reinforcing bars, wires, bar supports, spirals, mathematical formulae and tables, and common symbols and abbreviations.

The price of the publication is US$ 144.50 (ACI members US$ 87.00).

Guide for structural concrete reinforced with FRP bars

The third publication is titled '440.1R-06: Guide for the Design and Construction of Structural Concrete Reinforced with FRP Bars - It offers general information on the history and use of FRP reinforcement, a description of the unique material properties of FRP, and guidelines for the construction and design of structural concrete members reinforced with FRP bars. The guide is based on the knowledge gained from worldwide experimental research, analytical work and field applications of FRP reinforcement. The price of the publications is US$ 63.50 (ACI members US$ 39.00).

For more details, please contact:
American Concrete Institute
P.O. Box 9094
Farmington Hills,
MI 48333-9094
USA
Tel: +1-248-848-3800
E-mail: bkstore@concrete.org
Website: www.concrete.org