Innovation key for safe, green buildings
Now, India needs to raise its infrastructure investments to maintain an average annual growth of around 9% per annum.
By ET Bureau |
In stock market parlance, one could say the construction sector in India has had a bull run over the last five years. The huge infrastructure spends by the government and the boom in real estate have triggered the growth of this industry, which contributes to around 6% of the country���s gross domestic product (GDP).
Now, India needs to raise its infrastructure investments to maintain an average annual growth of around 9% per annum. This would require investments aggregating to over $500 billion in the medium term. And the use of innovative technologies and robust management practices could help the industry move to the next growth phase.
Experts from the construction industry deliberated on the challenges and the road ahead at an exclusive seminar organised by The Economic Times in collaboration with Sujana Metal Products Limited in Hyderabad last Saturday.
The panel discussion on ���Innovative and best practices in the construction industry to manage the next phase of growth��� covered topics such as innovative use of steel in the industry, creating energy-efficient green buildings using eco-friendly materials, using top-quality materials to maintain safety and stability of structures, implementation of effective construction practices and meeting industry standards.
The panelists included Tata Projects COO AK Mishra, L&T joint general manager D Gnanasekar, Everon Project Consultants MD BK Bassi, SHL Ventures COO Ravi Kiran, Sujana Metal Products Limited MD RK Birla and PriceWaterhouse partner Ramakrishna Pachigolla.
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Innovation: The Key to SuccessA mantra for Indian companies to survive global competition is innovation. There was no dispute on this among the panelists who reckoned that China was surging ahead in adopting out-of-the box concepts and India needed to catch up as well.
The panel was unanimous that the reduction of steel usage could help cut costs and pave the way for usage of other materials. Gnanasekar was of the view that TMT bars could be a good substitute for steel. He reckoned that Indian metros could equal a Shanghai or a Beijing if proper planning was done at the conception and design stage.
Steel prices have surged by 90% over the last three years as compared to fuel and cement which have seen a 40% and a 70% jump respectively. Steel is also in short supply as the demand for steel is over 100 million tonnes while production is only around 67 million tonnes.
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The use of fibre instead of steel could help cut costs, reckoned BK Bassi. ���The requirement of steel bars can be given much in advance. The bars in different diameters and shapes can be pre-fabricated and delivered whenever required. This would also help in conserving storage space,��� he said. Green Buildings: Conserving Energy
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The use of non-conventional energy resources can prune costs in the long run though the initial project investment would be relatively high, the panel thought. Mishra and Gnanasekar referred to Hyderabad���s new international airport terminal which is energy-efficient. Ravi suggested that realtors focus on an eco-friendly environment through, say terrace gardens, green curtains and so on.
The panelists pitched for a tax holiday and special grants to encourage green buildings. ���A policy of certification and labelling of products needs to be brought into practice. Clients outsourcing project work need to ensure that construction companies adhere to environment norms.
Realtors, in turn, have to take a cue from their counterparts who adopt from good environmental practices,��� said Mishra. These would come in handy to save on maintenance and operating costs.
Cost Reduction and Quality Assurance
Emerging business models such as the private-public participation (PPP) can also help save costs as many developers are keen on completing these projects on time. ���Builders are also conscious that they need to use good quality material on mega infrastructure projects, given that their participation in future projects would hinge on their own past reputation,��� said a panel member.
According to Mishra, an efficient supply chain management would also help cut costs. Bassi said there would be a better understanding of the cost estimates if the projects are demarcated clearly between the government and the private sector.
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Panelists called for attention to detail at the project planning stage as sudden course corrections could impact costs. ���The parameters to be measured or assessed, the method and frequency of reporting, and the levels at which corrective decisions are to be taken should all be planned in advance,��� said a panel member. Leveraging on information technology in a big way for project management and tracking could also be a cost- and time-saver. Human Resource: the Need of the Hour
The shortage of professional manpower in the industry dominated the deliberations. There were no two views that intensive training was required to groom professionals for ensuring efficient and timely project execution. ���Each company must make their projections for manpower and train people,��� said Ravi Kiran.
The panelists also voiced their concerns over the shrinking number of skilled workers such as masons, welders and carpenters. ���We need to train an army of such people using resources at the training institutes. We also need to add more such institutes to bridge the supply shortfall,��� said Birla.
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Panelists argued that the remuneration for civil engineers and skilled labour have to be made more attractive to curb attrition. They felt that the government should also be proactive in job-creation for this sector and more women need to be roped in as well. In a nutshell, the panelists agreed that the pie is large for this sector. There is a huge opportunity for all companies ��� big, medium and small ��� to participate in the national mission of building better roads, airports, ports, power and telecommunication infrastructure through a public-private partnership models.
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Innovative concepts, good governance practices and a well-groomed talent pool to execute projects will ensure that the sector continues to be on a high growth trajectory.Download
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