Gayatri Projects bags Rs 1,130 cr road proj in JV with Maytas

Infrastructure firm Gayatri Projects today said it has won a Rs 1,130.67 crore road project, in joint venture with Maytas Infra, from Nagaland government .

"The Gayatri Projects Ltd--Maytas Infra Ltd will have a share in the ratio of 50:50 respectively," the Hyderabad-based company said.

"The project entails the two-laning of existing single lane roads of approximately 329 kms in Nagaland," it added.

Under the project existing stretches in the state -- Longleng - Changtongya (32 km), Mon-Tamlu-Merangkong (105 kms), Phek- Pfutzero (74 kms) and Zunheboto-Chakabama (118 kms) would be upgraded to two-lanes.

"We will be deploying the best technical expertise and engineering for this project and are hopeful of completing it within the stipulated period," said Managing Director, Gayatri Projects, Sandeep Reddy.

The company claimed it has undertaken various highways projects construction in several states and its order book stood at about Rs 8,000 crore.

Larsen and Toubro's subsidiary bags 2,503 crore-worth orders

Construction and engineering major Larsen & Toubro's (L&T) subsidiary Electrical and Gulf Projects Operating Company has bagged orders worth Rs.2,503 crore for transmission, substation and railway construction projects during the third quarter of 2010-11.

"Electrical & Gulf Projects Operating Company (E&GP OC) has secured orders aggregating to Rs.2,503 crore from transmission, substation and railway construction projects in the domestic and international markets during the third quarter of 2010-11," the company said in a regulatory filling.

According to the filling, the company secured orders worth Rs.1,516 crore in the domestic markets, which included projects for laying down of transmission lines, manufacturing of electrical equipment used in energy generation and railway construction activity.

The company's international segment bagged Rs.987 crore in the middle east region for seven substation projects and 153 km of transmission line projects.

The company's shares closed at Rs.1,979.05 at the Bombay Stock Exchange (BSE), 0.35 per cent higher than Thursday.

Tuirial Hydro Electric Project's cost revised to Rs913 cr

The cabinet committee on economic affairs have approved the revised cost estimate of Tuirial Hydro Electric Project (60 MW) in Mizoram-Restarting of project works by NEEPCO Tuirial Hydro Electric Project (60 MW) in Mizoram by North Eastern Electric Power Corporation Limited amounting to Rs913.63 crore including Interest During Construction (IDC) of Rs36.57 crore at March, 2010 price level.

The financial pattern of the total cost of Construction Rs913.63 crore comprises of (i) equity of Rs137.04 crore, (ii) loan from financial institutions amounting to Rs184.63 crore, (iii) subordinate loan from Government of India amounting to Rs291.96 crore and (iv) Grant from DoNER amounting to Rs300 crore. The CCEA also approved conversion of Government of India loan of Rs15.30 crore into equity and waiver of accumulated interest and penal interest of Rs16.13 crore on Government of India loan. The project is scheduled to be commissioned in 36 months from the date of investment approval of Revised Cost Estimate (RCE).

The Government of Mizoram have signed a Power Purchase Agreement (PPA) for the purchase of power from this project at CERC rates. The project will help the State of Mizoram / North Eastern Region in mitigating the power shortage with a clean source of energy. Apart from benefits due to power generation, the storage created due to project would contribute to economic development through promotion of fisheries, navigation, tourism etc. The project will improve the hydro-thermal mix in the North Eastern Region and the country.

deals between two giants for construction

Bharat Heavy Electricals (BHEL), may offer a minority equity stake to a third technology partner in its proposed joint venture with Steel Authority of India Ltd (SAIL) to manufacture high-grade steel.

B P Rao, Chairman and Managing Director, BHEL, said that they are in discussions with SAIL for construction of plant. The company estimates this construction will take more five-six months to finalise. Also, the company is looking for a third technology partner. The Company will offer a minority stake to the third party, while BHEL and SAIL might have equal stake in the venture.

The high-grade steel used to make power equipment is currently imported. BHEL's move is aimed at securing domestic supplies of essential raw material like CRGO steel, alloy steels, castings and forgings, among others.

Its order book is Rs 1,44,000 crore and it has the capacity to manufacture power equipment with a cumulative generation capacity of 15,000 Mw per annum, to be increased to 20,000 Mw by the end of 2010-11. It also plans to increase investment on its research and development to Rs 1,200 crore by 2011-12, from Rs 829 crore in 2009-10.

Lavasa and LIC Housing have no links

"Lavasa construction company has nothing to do with LIC Housing Finance -- we have not taken a single penny from them," HCC chairman and managing director Ajit Gulabchand said today.

He denied any wrongdoing or involvement with Lavasa construction in the housing finance scam, in which LIC Housing Finance's chief R R Nair and a few public sector bank officials have been arrested by the CBI on November 24.

Gulabchand said, however, that HCC was fully co-operating with the CBI in its investigations.

CBI has also arrested Rajesh Sharma, chief executive of Money Matters, a firm that the investigating agency said had either bribed or attempted to bribe the officials to get loans sanctioned for many companies, including Lavasa.

Lavasa is considered to be India's first planned hill city located between Mumbai and Pune. Recently, Lavasa Corporation obtained market regulator Sebi's permission to file draft red herring prospectus for its public issue of around Rs 2,000-crore.

Gulabchand said that using a company like Money Matters was a "well-accepted practice" in the industry. He said Money Matters secured around Rs 200-crore out of HCC's Rs 800-cr long-term debt.

Green buildings rapidly evolving as best design standard

A green building, by definition, is one which conserves natural resources, is energy efficient, and a healthier space for its occupants as compared to a conventional building. In India, the green building movement has been pioneered by CII which set up the Indian Green Building Council in 2001 at the behest of then US President Bill Clinton. India has since rapidly moved up the ladder with the ITC and Patni structures ranking as two of the largest Platinum certified structures globally. At last count, India had a total of 52 certified green buildings and 428 green projects.

While some tend to argue that the cost of setting up a green building tends to be higher than a conventional one, the converts point out the energy savings that kick in along with reduced operating costs mean that the difference in costs can be recovered within the first three years of the building lifecycle. At the ITC Green Centre for instance, energy usage is pegged at 1,30,000 units instead of 6,30,000 units if this building was made with business as usual approach. ITC is now in the process of extending its green initiatives to all upcoming, and existing hotel properties, with the latest one, ITC Royal Gardenia in Bangalore aiming to be carbon positive by next year.

While most large real estate developers too have climbed onto the green bandwagon proclaiming that their future projects will be green, there has been some amount of reluctance since the cost benefits that kick in would be beneficial to the end consumer and not the developer. While green may cost marginally more than conventional spaces, it’s almost certain that as it grows in popularity, going green will provide a very compelling cost equation that few smart businesses will be able to resist.

Indian Vastu Sashtra

India is considered the mother of Vastu as the ancient saints have formulated various principles of it. It was written nearly thousand years ago where the sages kept in their minds the results of sunlight and energyand stabilizing all the nature's five elements in such a way to get the maximum advantage out of it. In India, it evolved around 5000 years ago and is considered a super science where as the origin of Chinese Feng Shui was 3500-4500 years ago.

Basically, Vastu Shastra deals with the exercise of architecture and construction or building science and in fact it gives a fair touch in every aspects of life on the earth as well as the universe. The basic theme remains a link that is ever-present between the man and cosmos. The word 'Vastu' was originated from the term 'VASTOSHPATI' which had its usage in the Rig Veda and is said to render happiness, prosperity and protection in life and after death too. However, Vastu Shastra truly conceives in the presence of Vastu Purush, who is considered the main deity of a building.

Vastu Shastra is a science of directions and is a study that acquires an entire command over the cognition of directions. In fact, there are actually eight directions namely, northeast, north, southeast, east, southwest, south, northwest and west. It is entirely an Indian science of architecture and space and how environments and spaces are created supporting the spiritual and physical prosperity and health. This had evolved in India during the Vedic times and the concepts of Vastu Shastra were transmitted to South East Asia, Tibet and ultimately to Japan and China where the developmental base of Feng-shui originated.

According to the Vastu Shastras, when one worships, fears and respects the lords of all the above said directions, it considered that benefits and blessings would be showered on us. Moreover, saints have searched the Vastu Shastra and we make only researches. The ancient science helped a lot in getting the benefits freely that are offered by five basic elements of the world in which everyone lead their lives. The five elements of the universe are sky (Akash), water (Paani), wind (Vayu), fire (Agni) and earth (Prithvi). It is believed that Vastu Shastra is a perfect understanding of geography, direction, environment, physics and topography and is essentially the art of placing the correct settings in a manner that yields the maximum benefits.

Stable Construction Industry in 2010

There has been a significant increase in asset ownership through build, own, operate and transfer (BOOT) projects last year. Even then, Fitch Rating Agency has commented on the Indian construction sector to be stable for the year 2010 (as the rating agency expects.According to a study by ASSOCHAM, the burgeoning Indian construction industry, currently worth $70 billion, will rise to US$120 billion by 2010.

Ashok Leyland, India’s second-biggest commercial vehicle maker by sales, is all set to make a foray this year into the booming construction equipment segment dominated by players such as Telcon of Tata Motors, JB, Escorts, L&T, Caterpillar and Komatsu.Ashok Leyland CFO K Sridharan told that the joint venture with John Deere to manufacture construction equipment will take off in December this year. The company is setting up a facility near Gummidipoondi and has started testing products in the market. Diversified Hinduja Group on is close to acquire an Indian construction firm in a bid to secure a foothold in India's fast growing infrastructure sector, especially roads, and also announced an investment of USD 10 billion (around Rs 46,200 crore) in the power sector.

Foreign investors have remained bullish on India's housing, real estate and construction sectors in the last two years, undaunted by scarce global financial resources.Foreign Direct Investment (FDI) in terms of inflows into equity in the Indian construction and realty sectors have seen a sharp rise from USD 1.19 billion in April-December 2007 to USD 5.6 billion in the first three quarters of the current fiscal, as per the official data. More over the government allows 100 per cent FDI through automatic route in construction development projects, including housing, resorts, commercial premises, educational institutions, recreational facilities, city and regional level infrastructure and townships. So it is showing a good sign for the Indian construction sector in the year 2010.There is a promising opporunity in building more in the country by which it has immense potential in generating huge amount of employment. It has been found out that construction industry offers employment to around 7% of the total employed work force around the globe.