INFRASTRUCTURE IN INDIA FLANDERS INVESTMENT & TRADE ZOCHT HET VOOR U UIT
Infrastructure in India
Study made by FIT office in Mumbai
Flanders Investment & Trade Consulate General of Belgium TCG Financial Centre, 7th Floor C-53 G-Block, Bandra-Kurla Complex Bandra (E) Mumbai 400.051 India E-mail: [email protected] T.: +91 22 66 71 06 27
Table of Contents
EXECUTIVE SUMMARY ...... 3 SCOPE OF OUR STUDY ...... 4 METHODOLOGY ...... 4 OVERVIEW OF INFRASTRUCTURE IN INDIA ...... 5 WHY INVEST IN INDIA ...... 6 FOREIGN DIRECT INVESTMENT IN INFRASTRUCTURE ...... 7 FDI ROUTES ...... 8 LOGISTICAL INEFFICIENCIES IN INDIAN INFRASTRUCTURE ...... 9 OPPORTUNITIES IN INDIA ...... 10 ROADS AND HIGHWAYS ...... 10 RAILWAYS ...... 16 PORTS AND AIRPORTS ...... 22 POTENTIAL FOR CONSTRUCTION EQUIPMENT IN INDIA ...... 24 PUBLIC PRIVATE PARTNERSHIPS IN INFRASTRUCTURE ...... 27 TAX FOR ENGINEERING AND CONSTRUCTION COMPANIES ...... 29 STRUCTURAL CONSIDERATIONS FOR DEVELOPERS...... 31 INTERNATIONAL TAX CONSIDERATIONS ...... 31 ENTRY AND EXIT STRATEGY ...... 31 HOLDING THE INVESTMENT ...... 32 CASH AND PROFITS REPATRIATION ...... 32 ENGINEERING, PROCUREMENT & CONSTRUCTION (EPC) CONTRACTS:ON-SHORE VS OFF- SHORE...... 32 MARKET CHALLENGES...... 34 SUCCESS STORIES OF BELGIAN COMPANIES IN INDIAN INFRASTRUCTURE ...... 36 TRAFFICON (NOW KNOWN AS FLIR) ...... 36 EURO STATION AND EURO IMMOSTAR ...... 36 NEY AND POULISSEN ...... 37 TPF ...... 38 PORT OF ANTWERP AND ESSAR ...... 39 JOINT INFRASTRCUTURE FUND WITH IL&FS ...... 39 MAJOR INDIAN PLAYERS IN INFRASTRUCTURE SECTOR ...... 41 GMR GROUP ...... 41 LANCO INFRATECH LIMITED ...... 41
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MAN INFRACONSTRUCTION LIMITED ...... 41 SIMPLEX INFRASTRUCTURES LIMITED ...... 41 IVRCL LIMITED ...... 42 HINDUSTAN CONSTRUCTION CO. LIMITED ...... 42 RAMKY INFRASTRUCTURE LIMITED ...... 42 IL&FS ENGINEERING AND CONSTRUCTION COMPANY LIMITED ...... 42 GAMMON INDIA ...... 43 NODAL AGENCIES IN MAHARASHTRA ...... 44 MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY (MMRDA) ...... 45 CITY AND INDUSTRIAL DEVELOPMENT CORPORATION OF MAHARASHTRA LTD (CIDCO) ...... 46 ROAD AHEAD ...... 48 FLANDERS INVESTMENT AND TRADE, MUMBAI AND MMRDA MOU ...... 49 INDUSTRY CONTACTS ...... 51 WEST INDIA CONTACTS ...... 51 REST OF INDIA CONTACTS ...... 58 INDUSTRY ASSOCIATIONS AND EXHIBITIONS ...... 60 BIBLIOGRAPHY ...... 61
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EXECUTIVE SUMMARY
Whilst the need for greater infrastructure investment is clear, equally important is the need to sustainably manage such investments. The Indian Government’s success in infrastructure provision will be measured not by the quantum of funds invested, but on how infrastructure contributes to the achievement of India’s economic, social and environmental objectives. Importantly, infrastructure investment should be considered as a means to an end, not an end in itself.
Challenges in infrastructure provision are not unique to India. Uncertainty, scarcity of available funds for investment and competing priorities present challenges to all governments in infrastructure planning and delivery. Sustainability requires that future generations are not compromised by the investment decisions of current generations. Sustainably managing infrastructure through appropriate pricing, funding and prioritisation frameworks is important to ensure the benefits that accrue from the significant investment that India is currently making in key social and economic infrastructure are maximized. Global climate change creates further challenges. New infrastructure must not only support social and economic goals, it must also do so within acceptable environmental parameters.
Given that India’s growth rate is likely to continue at steady levels, it is important that considerations of issues such as fuel mix, encouraging more fuel efficient modes of transport such as rail, improved technology, come fully into discussion and are implemented whenever possible. In our view, it is imperative that debate on the issue of sustainability in infrastructure provision is heightened and that the challenge that it presents is effectively met. Government and infrastructure agencies will also need to retain sufficient focus on issues of feasibility and prioritisation when the primary focus shifts to delivery. Engineering and construction companies looking to bid on major projects need to ensure that they are taking a holistic approach which incorporates sustainability issues into the design of the project, both in the planning and the delivery stages. Those that do so have a unique opportunity to make a major difference in a growing economy while enhancing their own bottom line.
May 2014, Mumbai
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SCOPE OF OUR STUDY
The scope of the report is to estimate the potential available for Flemish companies in the Indian infrastructure sector. The study provides information related to the infrastructure sector in India, the opportunity and growth for players catering to this sector. The report also talks about nodal agencies in Maharashtra who are responsible for implementing and executing public private partnerships and several other projects within the infrastructure space.
METHODOLOGY
The study involves desk based research (company websites, press releases and reports) and collection of data through interviews and conversations with players and government agencies in India.
India being a large country with relatively low penetration and incomplete availability of organized data, it is important for companies to understand that there is an element of ‘subjectivity’ in this report. The key findings and recommendations need to be considered in this context before taking major decisions with respect to India.
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OVERVIEW OF INFRASTRUCTURE IN INDIA
India’s economy is big and getting bigger. Liberalisation of government regulations and a deliberate strategy on the part of the Indian Government to promote infrastructure spells opportunity for engineering and construction companies. Nearly all of the infrastructure sub sectors present excellent opportunities, with roads and highways, ports and airports, railways and power standing out as particular bright spots, with staggering sums of investment planned. Public-private partnerships (PPPs) are gaining importance and are benefiting from government support. Companies experienced in structuring these types of deals should be able to use their expertise to good effect in the Indian marketplace.
Operating in India requires a thorough understanding of the local market. Companies need to do their homework in order to understand a host of tax and regulatory issues before bidding on projects or setting up operations. Whether or not a permanent establishment is created, how on-shore versus off-shore services and supplies are managed in a particular contract and indirect tax implications can all have a major impact on the bottom line. Further, foreign players are likely to identify promising local companies, and then make a case for a profitable partnership, in order to achieve a win-win situation in India. Still, there is a strong rationale for many engineering and construction companies to invest in India sooner, rather than later. Not only are there substantial opportunities now, but establishing relationships and a presence in the market can help to ensure continuing project potential over the medium and long-term. Collaboration with an Indian company also provides an opportunity to bid for projects outside of India, mainly in and around South East Asia, African countries and some part of Middle-East.
From a market standpoint, it is imperative that infrastructure development occurs in a sustainable manner. The Indian Government must maintain a commitment to ensuring that rapid growth does not happen at an untenably high environmental cost and infrastructure projects will play a key role in ensuring the success of ‘green growth’. Those engineering and construction companies taking a holistic approach to building a sustainable infrastructure will have a strong competitive advantage.
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WHY INVEST IN INDIA
One of the world’s fastest growing economies – and growth expected to continue at 6-7%. Few restrictions on foreign direct investment (FDI) for infrastructure projects. Tax holidays for developers of most types of infrastructure projects, some of which are of limited duration. Opening up of the infrastructure sector through Public-private partnerships (PPPs).
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FOREIGN DIRECT INVESTMENT IN INFRASTRUCTURE
Major infrastructure development requires a substantial influx of investment capital. The policies of the Indian Government seek to encourage investments in domestic infrastructure from both local and foreign private capital. Foreign direct investment flow into India in 2013 increased 17 per cent to US $28 billion, but its ranking among the top 20 attractive global destinations slipped one notch to 16. In order to increase FDI inflows, particularly with a view to catalysing investment and enhancing infrastructure, the Indian Government now permits 100% FDI under the automatic route for a broad range of sectors – only certain post investment intimation is required. For FDI in a few sectors, a prior approval is required, which takes around 6-8 weeks. The Indian Government is constantly simplifying the approval route process, including setting up several agencies to expedite FDI approval. Government keeps laying emphasis on infrastructure investment; liberalization will be the key to the future developments in this sector.
A recent press report stated that Morgan Stanley was looking to invest up to a quarter of its US $4 billion global infrastructure fund in emerging markets, notably India and China – and that in India, Morgan Stanley would face competition from Australia’s Macquarie Group, JP Morgan, Goldman Sachs and Deutsche Bank all looking to channel foreign investors’ money into Indian infrastructure. While some of this planned investment may be reduced or delayed given the current market situation, India is still likely to garner substantial FDI, particularly if its economy is able to maintain a fairly steady rate of growth.
From an exchange control perspective, India is moving towards full current account convertibility. Most revenue transactions are freely permitted, except certain transactions like royalty, consultancy fees, etc., which are subject to certain limits. Capital account transactions need prior approval, except where specifically permitted. In order to promote the construction sector, the Indian Government has relaxed some of the exchange control restrictions.
Hurdles to investment remain. Although India has a well-developed legal system, the current legal and regulatory environment sometimes acts as an obstacle to the necessary injections of foreign private capital into India’s infrastructure. Major infrastructure projects are governed by the concession agreements signed between public authorities and private entities. Tariff determination and the setting of performance standards vary somewhat by sector. In the roads and highways sector, the ministry generally sets tolls – while in major port projects, and many of those in electricity generation, an independent regulator will decide relevant tariffs. In the airport sector, a new independent regulator AERA (Airports Economic Regulatory Authority) plays a major role in determining tariffs in concession agreements for the segment.
In some instances, ministry or regulator control over potential proceeds can act as a disincentive to the private infrastructure developer. As is the case in many countries, there is no single regulator which formulates the policy for all infrastructure projects. There is also no standardisation in the concession agreements across the different infrastructure sectors. As a result, the development of certain sectors in India may be hampered due to lack of adequate and coordinated planning. Projects which are approved may face difficulties if related projects are substantially delayed. One example is Bangalore international airport, one of the largest PPP projects to date. The project has been facing
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growing pains related to insufficient road and rail connections to the new facility, in part due to delays of expected high speed rail and highway projects under the auspices of other government bodies. Apart from logistics and poor connectivity, the private players executing the project faced tax complications.
Source: Reuters, September 18, 2012, Morgan Stanley Infrastructure fund for emerging markets
FDI ROUTES
Approval Route – Permission required Automatic Route – Freely permissible (100%) Existing Airports – beyond 74% Greenfield airports Atomic Minerals Construction and maintenance of In case of joint venture or technology infrastructure like ports, harbors, roads collaboration agreement in the same and highways field Power generation, transmission and distribution and power trading (atomic energy not permitted) Mass rapid transport systems Townships, housing, built-up infrastructure and construction development projects
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LOGISTICAL INEFFICIENCIES IN INDIAN INFRASTRUCTURE
Losses due to inefficiency in logistics infrastructure in India could treble to US $140 billion annually in the next one decade from US $45 billion in 2007 if increased usage of rail and optimal utilisation of waterways is not achieved, according to McKinsey & Co.
About US $500 billion of investment is envisaged in the logistics infrastructure in the next ten years in the country.
The McKinsey report, ‘Transforming the nations logistics infrastructure’, estimates that by 2020 India would require five dedicated freight corridors (DFCs) against the currently planned. It also recommends around 30 expressways against the 6 expressways during the period. It emphasizes on increasing usage of rail and waterways in India, against burdening the road network. If India fails to achieve this, waste caused by poor logistics infrastructure will increase up to US $140 billion by 2020. Freight movement is expected to increase three fold in the next decade.
McKinsey said India needs to increase investments in logistics infrastructure from the planned US $500 billion to US $700 billion in the next decade. Based on Mckinsey’s analysis if investments are increased from US $500 billion to around US $700 billion by 2020, the losses in the system would decline from over 4% to under 3% of GDP in 2020.
Current losses due to an inefficient logistics system account to around 4.3% of today’s gross domestic product (GDP), which is expected to increase to up to 5% of the GDP by 2020. The total estimated loss has been calculated by a detailed analysis of a flow of three main commodities — coal, auto components and agricultural goods.
If the current trajectory continues, movement by railways is likely to reduce to 25% and waterways to 5%, while major pressure would continue to remain on the road sector, which would see its share in the freight movement rising to 69% by 2020.
On the other hand, if India succeeds to shift more than 45% of its freight movement to the railway segment by 2020, losses could be reduced to up to 4% of the GDP against the estimated 5% of the GDP for 2020 if the current trajectory continues.
McKinsey recommends a new modal mix wherein freight traffic movement would comprise 47% by road, 46% by rail, 6% by water and less than 1% by air.
To have a balanced modal mix of this kind the country needs a road rail balanced network of five rail DFCs — Delhi-Mumbai, Delhi-Kolkata, Mumbai-Chennai, Delhi-Chennai, Mumbai-Kolkata and two coastal corridors — Kandla-Kochi and Kolkata-Chennai. These corridors will need to be supported by 20 to 30 expressways, road and rail links across the 150 connectors and 700 last mile links. The report also seeks a change in the pattern in which these investments are likely to be disbursed across segments.
Source: Daily News Analysis, Sept 2010, India loses US $45 billion yearly due to inefficient logistics
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OPPORTUNITIES IN INDIA
The Planning Commission of India has planned extensive expansion in the roads and highways, ports, civil aviation and airports and power infrastructure segments – all of which provide substantial opportunities for engineering and construction companies. Mentioned below is a brief description in terms of the recent happenings, projects, growth potential and allocation for each of the segments.
ROADS AND HIGHWAYS
India has the second largest road network in the world, spanning a total of 4.7 million kilometers. This is used to transport over 60 per cent of all goods in the country and 85 per cent of total passenger traffic. The Planning Commission of India aims to spend nearly 20 per cent of the total investment of US $1 trillion during the 12th Five Year Plan (2012–17) to develop roads. The private sector is emerging as a key player in the development of road infrastructure in India. National highways are expected to reach 85,000 kilometers by the end of the 12th Five Year Plan from 79,116 kilometers in FY 2013.
Greater connectivity between different cities, towns and villages has led to increased road traffic over the years. Growth in automobiles and freight movement commands a better road network in India.
Roads and bridge infrastructure industry to be worth US $19.2 billion by FY17. During FY14, around 8,270 km of the National Highways are to be improved along with construction/rehabilitation of 100 bridges and 4 bypasses.
US $1 trillion worth of expenditure on infrastructure is estimated over FY13–17. Government of India aims to develop a total of 66,117 kilometers of roads by growing participation of private sector through Public Private Partnership (PPP).
Road infrastructure is a key government priority; the sector has received strong budgetary support over the years. Financial institutions have received government approval to raise money through tax- free bonds.
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State Highways; 3,30% National Highways; 1,70%
District and Rural Highways; 95%
Source: Ministry of Road, Transport and Highways (MoRTH) – Annual Report 2012-13, Aranca Research
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Source: National Highway Authority of India (NHAI), National Highway Builders Foundation, ICRA Ltd, Reserve Bank of India (RBI) Notes: FY - Indian Financial Year (April-March), NHDP - National Highway Development Project, Aranca Research; Data is target figure for toll collection in 2012-2013
Roads bear about 85 per cent of the country’s passenger traffic and 60 per cent of freight traffic.
The value of total roads and bridges infrastructure in India is expected to grow at a CAGR of 17.4 per cent over FY12-17 to reach US $19 billion. Currently, the Government of India aims to develop a total of 66,117 kilometers of roads under various programs such as NHDP, SARDP-NE and LWE Of the total roads, 20,945 kilometers have been developed, while a major share of the remaining is estimated to be completed by the end of the 12th Five Year Plan.
ROADS/BRIDGES INFRASTRUCTURE VALUE IN INDIA (USD BILLION) 25 Compound Annual Growth Rate (CAGR) 20
15
10 CAGR: 13.6%
5
0 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Source: Business Monitor International (BMI), Aranca Research
National highways account for 1.7 per cent of the total road network in India. Under the 12th Five Year Plan (FY13–17), the government plans to develop 20 kilometers of national highways per day, which implies a total development of 7,300 kilometers per year. Double-lane highways constitute the largest share of highways in India (40,658 kilometers). Double-lane highways are followed by single/intermediate-lane (19,330 kilometers) and four/six/eight-lane (19,128 kilometers) highways. National highways are expected to reach 85,000 kilometers by the end of the 12th Five Year Plan from 79,116 kilometers in FY13.
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LANE COMPOSITION OF NATIONAL HIGHWAYS (FY13)
Single Lane Double Lane
Four/Six/Eight Lane 25% 24%
51%
Source: MoRTH, Aranca Research The National Highway Authority of India (NHAI) is a government agency responsible for construction, maintenance and development of highways. The Government of India has formulated a seven-phase program known as ‘National Highway Development Project (NHDP)’, vested with NHAI, for the development of national highways in the country.
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As on 31 March 2012, India had 2,409 PPP projects across the infrastructure sector, of which 874 are dedicated towards roads and highways. The BOT (build operate and transfer) model’s share in total highway projects has increased sharply over the years; it rose to 31 per cent in FY10 from 10 per cent in FY05.
TOTAL PPP PROJECTS IN INDIA (MARCH 2012) Roads/National Highways 36%
Others 64%
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COMPOSITION OF TOTAL HIGHWAY PROJECTS AWARDED
BOT SPV Public Funded
23
27
22 19 15 13 20 53 8 20 12 12 9 17 9 9 4 7
FY05 FY06 FY07 FY08 FY09 FY10
Source: MoRTH, Aranca Research
Road construction projects awarded to BOT companies recorded a CAGR of 17.1 per cent over FY06- 13. The total projects awarded in FY13 by both NHAI and Ministry of Road Transport and Highways is 1,933 km.
AWARDS WON BY BOT PRIVATE PLAYERS YEAR ON YEAR 2% 6% 2% 3%
5% FY06 FY07
15% FY08 FY09 33% FY10 FY11 FY12
FY13
34%
Source: NHAI, Crisil, Aranca Research, Note: FY13* - Projects awarded by NHAI
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Until 2005, the road construction market was dominated by public sector companies. However, the emergence of private players over the last decade has made the road construction market fragmented and competitive; the players bidding for projects also vary by size.
Government policy to increase private sector participation has proved to be a boon to the infrastructure industry with a large number of private players entering the business through the Public Private Partnership (PPP) model. The type of PPP models used in road projects is (BOT) toll and BOT annuity.
With the Government of India permitting 100 per cent FDI in the road sector, most foreign companies have formed partnerships with Indian players to participate in the sector’s growth story. Infrastructure is the key to supporting double-digit GDP growth in India during the medium to long term.
The government has hence made infrastructure development a key policy issue and plans to spend US $1.0 trillion during FY13-17 on the sector.
Example of foreign partnerships in India infrastructure sector: IL&FS Transportation Networks (ITNL) partnered with Japanese road construction firm East Nippon Expressway Co to tap public private partnership (PPP) projects in India.
Source: Daily News Analysis, July 1, 2013, Infra companies rope in foreign partners.
RAILWAYS
Indian Railways is the ninth largest employer in the world employing 1.4 million people. As a part of the government budget, Indian railways have a dedicated slot for presenting the planning and expenditure for the next fiscal year. Though over the years Indian railways have added new trains, services, expanded capacity, very little has been done in terms of modernizing the railway engines railway terminals and tracks.
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As of FY12, Indian Railways had 12,335 passenger trains carrying over 30 million passengers daily. On the commercial front, 975.2 million tons of freight was transported via trains in FY12.
Private sector companies are being encouraged to participate in rail projects, which were largely in the public domain. In December 2012, the Cabinet approved “participative models for rail- connectivity and capacity augmented projects”, which allows private ownership of some railway lines. Indian Railways is undertaking the construction of dedicated freight lines along the country’s Eastern and Western corridors; this would increase productivity and reduce transportation cost. A special purpose vehicle has been set up for the same. Moreover, in March 2013, the Cabinet approved the “Automobile Freight Train Operator Scheme” to encourage automobile transportation through railways. Indian Railways has launched mobile ticketing services, which enable customers to receive tickets on short message service (SMS). Additionally, it plans to upgrade its current systems to support bookings of 7,200 tickets per minute compared with the current capacity of 2,000 tickets.
Increasing urbanisation coupled with rising incomes (both urban and rural) is driving growth in the passenger segment. Growing industrialisation across country has increased freight traffic over the last decade. Freight traffic is set to increase manifold, thanks to investments and private sector participation. Metro rail projects are being envisaged across many cities over the next ten years. The government has been investing heavily to upgrade railway infrastructure. Sector has been witnessing increasing level of FDI participation over FY08–12. Cumulative FDI inflows from April 2000 – August 2013 stood at US $366.3 million. Government has increased the scope of PPP, to beyond providing maintenance and other such supporting roles. Government is providing new lines, increasing the rolling stock to build up capacity.
Indian Railways is a departmental undertaking of Government of India (GOI), which owns and operates most of India's rail transport, overseen by the Ministry of Railways. It has a total route network of about 64,600 kilometers (of which 29.98 per cent is double/multi-track) spread across 7,146 stations. Operates more than 19,000 trains every day. It has 239,321 wagons, 61,899 coaches, and 9,549 locomotives. Indian Railway’s total assets at the end of FY12 amounted to US $53.8 billion.
Source: Ministry of Railways, Aranca Research
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Source: Ministry of Railways, Aranca Research
Indian Railways revenues grew the fastest in three years to US $23.0 billion in FY13, a 10 per cent year on year growth. The Railway Ministry estimates revenues to grow 15 per cent in 2014. Overall, revenues are expected to expand at a CAGR of 12 per cent during FY07–14. Revenue growth has, in fact, been strong over the years; during FY07–13, revenue expanded at a CAGR of 11 per cent For FY14, the government has estimated revenues to expand at a CAGR of 17 per cent over FY12.
GROSS REVENUES TRENDS OVER THE YEARS (USD BILLION) Gross revenues trends over the years 30 (USD billion) 26,5 25 23 CAGR 12.1% 21,7 20,8 18,8 20 18,3 17,8
14,3 15
10
5
0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14B
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In the last seven years, revenues from the passenger segment have expanded at a CAGR of 11 per cent. The FY14 Budget provides for a CAGR of 22 per cent in revenues over FY12 Freight segment’s revenues have been on the rise; in FY13, revenues were up 27 per cent over last year, the highest growth rate in the last five years.
18 EARNINGS COMPARISON (PASSENGER VS FREIGHT) 15,8 16 IN USD BILLION 14,1 14 13,3 12 11,5 11,3 12 10 9,1
8 5,6 5,9 5,9 6 4,9 4,8 4,9 3,8 4 2 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Passenger Earnings Freight Earnings
Source: Ministry of Railways, Planning Commission, Aranca Research, Notes: F – Forecast, FY – Indian Financial Year (April–March)
Key players in the market
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Rail projects in India have typically been in the public sector domain. Private players were involved in allied activities such as track laying and maintenance, maintenance of coaches and wagons, construction of bridges, stations, signaling, and telecommunications works.
In December 2012, the Cabinet approved the new policy of “participative models for rail-connectivity and capacity augmented projects”. The policy addressed private investors’ concerns, which included ownership of the railway line and repayment of investment. This has led to renewed investor interest in the rail sector. Since then, railway authorities have received various proposals from private investors and have already given approval (can now acquire land and begin construction) for four port connectivity projects, which would ease congestion. This is in line with the government’s 12th Five-Year Plan. It intends to raise investments worth US $18 billion through PPP route. Areas proposed for private investment during this period are likely to include elevated rail corridor in Mumbai, some parts of dedicated freight corridor, freight terminals, re-development of stations, and power generation/energy saving projects. Other measures taken/proposed include - Setting up of a modern signaling equipment facility at Chandigarh through the PPP route Construction of new lines – Bhupdeopur-Raigarh (Mand Colliery), Gevra Road-Pendara Road – and doubling of Palanpur - Samakhiali section through the PPP route. The Railways Ministry has already proposed for the development of 50 new stations in the PPP mode to improve and enhance rail infrastructure in the country.
There is a rapid increase in demand for urban mass transportation systems in the country. Several metro rail projects are in progress to improve connectivity within cities; the Delhi Metro has emerged as an internationally acclaimed venture.
Indian Railway has attracted increasing investments from overseas through strategic alliances with various countries over the last few years. Subsidiaries of foreign companies are being set up to cater to the huge demand offered by Indian Railway.
Example of foreign company in railway: Delhi Metro Rail Electrification – Ph. III contract was awarded to Siemens
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Source: Siemens, July 2008
Passenger traffic went up by more than 15 times over FY1951–2012. Increasing incomes, both urban and rural, has made rail travel affordable to a large number of Indians. Urban population in India increased from 17 per cent of the total population in 1951 to 31 per cent in 2011; this has led to increase in traffic between urban and rural areas in the country. Improvement of urban-rural connectivity by rail has been another major contributor to passenger growth.
Investments expected in metro rail networks in India: US $42 billion by 2020. Amount invested so far: US $16.7 billion.
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PORTS AND AIRPORTS
Ports and airports increasing connectivity with inland transport networks is just one of many challenges currently facing India’s ports, which have seen massive swells in the amount of goods transported. Traffic is estimated to reach 877 million tons by 2011-12, and containerised cargo is expected to grow at 15.5% (CAGR) over the next 7 years. India’s existing ports infrastructure is not sufficient to handle the increased loads – cargo unloading at many ports is currently inadequate, even where ports have already been modernised. The National Maritime Development Programme includes 276 projects, with a required investment of about US $15 billion over the next ten years, with private investment targeted at around US $8 billion. In addition to improving road and rail connections, projects related to port development (construction of jetties, berths, container terminals, deepening of channels to improve draft, etc.), will provide major opportunities for engineering and construction companies.
Recent deregulation of the sector now permits 100% FDI and an independent tariff regulatory authority has been set up to facilitate projects at major ports.
Air traffic has increased rapidly in recent years, although this slowed in 2007. While a number of Indian airlines have faced challenging market conditions in 2008 and the rate of growth is likely to be significantly less than initially projected, Indians are still flying in much greater numbers. Estimates made in 2007 by the Indian Government’s Committee on Infrastructure suggest that passenger traffic will grow at a CAGR of over 15% in the next 5 years. Indian manufacturers are also looking to the skies – the same source anticipates that cargo traffic will grow at over 20% per annum over the next five years.
Even if these estimates prove somewhat optimistic, the growth already achieved has put tremendous pressure on airport infrastructure. In order to cope with additional demand, private sector participation is expected to play a key role. The private sector has already stepped up to the challenge of airport infrastructure development in several cases, with private participation in recent years at
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Delhi, Mumbai, Hyderabad, Cochin and Bangalore supplementing the efforts of the Airports Authority of India.
The Government has established Airport Economic Regulatory Authority (AERA) to promote efficiency, competitive pricing and a customer-focused service. State governments are also getting involved and looking to facilitate the development of new airports. The total investment on new airports has been proposed at about US $14 billion by 2014. Greenfield airport projects are planned in resort destinations and emerging metros such as Goa, Pune, Navi Mumbai, Greater Noida and Kannur. Further, 35 non-metro airports are proposed for development. Prequalification of bidders for development of Amritsar and Udaipur airport has already been completed, and bids for 10 non- metro airports are scheduled to be invited shortly.
As the density of airports increases in various regions, increased competition is likely to bring new issues into focus, such as corporate performance management. Airports will look to diversify their revenue sources through the development of city side infrastructure. Airlines will also be looking for new technology solutions to maximize revenues and reduce costs. MRO (Maintenance, Repair and Overhaul) facilities could therefore also present new business opportunities.
The need for improved aviation infrastructure extends beyond the construction of new airports – existing metro airports also require significant modernization and upgrading. EPC (Engineering Procurement and Construction) contractors are expected to be sought for Chennai and Kolkata airports in the immediate future.
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POTENTIAL FOR CONSTRUCTION EQUIPMENT IN INDIA
Procurement of major equipment is important to capital project effectiveness. Equipment represents a significant investment. On average, at least 20 percent of a capital project’s total cost is made up of procured equipment. Reduction of equipment costs reduce project costs and provide the competitive advantage. Timely delivery, equipment quality are important factors needed to achieve schedule goals.
Over the last decade, capital equipment procurement has undergone rapid and profound changes. The current increase in project activity in India is putting upward pressure on pricing and delivery times. The market has witnessed overstretched vendors, a decline in skill levels and a limited number of contractors with the capability to transport and install heavy pieces of equipment. Ultimately, this leads to a decline in capital project cost performance as well as schedule and operability results. These are some of the factors surrounding capital equipment market in India critical to infrastructure development. These factors also elevate the market potential for foreign players, in particular Flemish companies who have very strong hold in the capital equipment sector. Taking into account the demand and supply dynamics, Flemish companies who are willing to do business in India are in a very good position to cater to the demand of capital equipment.
India's growth story has witnessed many cyclical changes across a wide range of industries. Volatility in real estate and related industries, such as construction equipment, has resulted in demand supply gaps that hamper analysis of the sector and its trends.
Demand for construction equipment is a reflection of broader macroeconomic trends such as interest rates, infrastructure investment and liquidity, which themselves indicate the health of the overall economy. This demand equipment is expected to grow in line with the expansion of real estate development from India's key urban centers into tier-2 and tier-3 cities.
India's construction equipment market, meanwhile, outpaced global growth trends with the market estimated at INR 208 billion at the end of 2012. Revenue is expected to reach INR 461 billion by 2016, CAGR of 20 per cent.
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Figure 1: Overview of the construction equipment sector
MARKET SIZE (INR BN)
Market Size (INR Bn) 500 461,5 450 400 377,1
350 308,2 300 252,3 250 208,4 200 150 100 50 0 2012 2013 2014 2015 2016
Source: Datamonitor, BMI
Figure 2: Construction equipment market share by segment, 2012
Market Share by Segment
Concrete 15%
Material Handling 11%
Earth Moving 68% Material Processing 6%
Source: Datamonitor, BMI
The sector is made up of five main segments: earthmoving equipment, road construction equipment, concrete equipment, material handling equipment, and material processing equipment. Earthmoving equipment and road construction equipment account for close to 70 per cent of India's construction equipment market. Backhoe loaders, which comprise tractors, front shovel/bucket
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backhoes and small backhoes, account for 65 per cent of the earthmoving equipment and road construction segment.
Concrete equipment is the second largest segment with a market share of approximately 14 per cent. It comprises asphalt finishers, transit mixers, concrete pumps and batching plants. Material handling equipment and material processing equipment account for 10 per cent and 6 per cent of the market respectively. Cranes are the largest category within the material handling equipment.
Major national and international players such as ECEL, JCB and Action Construction Equipment dominate India's construction equipment market. The recent influx of foreign direct investment in the construction sector saw many new entries to market, either in the form of joint ventures with Indian companies or by foreign firms setting up their own local manufacturing facilities. Key players operating across most market segments are JCB, Escorts, ACE and BEML.
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PUBLIC PRIVATE PARTNERSHIPS IN INFRASTRUCTURE
Funding India’s wide ranging, US $500 billion programme of infrastructure expansion over a five year period is likely to be beyond the means of total government funding, so policies have been designed to facilitate private investment to the maximum level possible.
If the Indian Government’s targeted level of private sector involvement and investment are met (approximately 30%), the quantum of funding required would be around US $150 billion – dwarfing the investment achieved over the past decade by comparison. Achieving this level of investment is ambitious. Several frameworks and plans are already in place, however, that may facilitate reaching these goals.
The PPP (Private Public Partnership) /PFI (Private Finance Initiative) market in India is still at a relatively early stage. However, over the past decade or so, there has been an increasing trend at the central as well as state government level to use PPPs (Private Public Partnerships) for meeting critical infrastructure gaps. The results have been quite encouraging.
Establishing a PPP (Private Public Partnership) is now considered to be the default option for major infrastructure projects in sectors such as roads, railways, airports, ports and other transport segments. First preference will be given to the PPP model, and only in cases where projects are expected to fail to attract private sector interest will more traditional models be considered.
Most infrastructure sectors have an overall long term plan and programme that provides guidance on the projects that are likely to come up for development. Key policy frameworks for procurement of projects through PPPs have also been drafted. For example, the NHDP (National Highway Development Programme) discussed earlier details a long term plan for the roads and highways segment, with seven defined phases and largely clearly identified projects (along with project costs) and an agreed timeframe. The roads and highways segment also has a generally successful PPP model concession framework. The NHDP is mandated to a dedicated agency that also has clearly earmarked source of funding coming in to support the programme. Almost all the other sectors have similar plans.
Over the last 3-4 years, there has been a push towards expanding the scope of PPPs for the provision of urban infrastructure through establishment of another government programme for urban renewal across the country. This is likely to further increase the scope, scale and number of PPPs in the country. Not surprisingly, international interest in Indian PPPs has soared in 2008, with over 50 international players showing interest in a variety of types of projects in the first three quarters of the year. Local players are also increasing their interest. Until recently, only a very limited number of large domestic players were fully conversant with PPP models and had the capability to deliver on them. However, local developers and contractors are catching up fast and domestic capacity has increased substantially in recent months. Engineering and construction companies looking to participate in this burgeoning segment do face certain hurdles. The typical PPP project design and preparation process is still largely technically-oriented, with limited appreciation of the overall financial and commercial risk issues involved. Often information distortions in the market have led to large variations in the bids/ offers received during the procurement process. Further, the procurement process is often highly prescriptive, rather than participative. The emphasis is on Infrastructure in India | 2014 ______27
conforming to public sector requirements, which may not offer value for money and does not encourage innovative solutions, rather than evolving the project configuration to be delivered over the long-term in a partnership approach. And while the public sector is dictating the terms, it is quite often not willing to shoulder concomitant risk. The current concession structure is highly asset oriented, rather than focusing on service delivery. Private sector participants are often required to assume considerable risk, including demand risk, and the apportionment of risk is in some cases quite inefficient.
Financing for PPP/PFI projects can also be a key constraint, as long term financing instruments have been in scarce supply. PPP projects have so far been largely financed domestically using plain vanilla debt with relatively low gearing. Commercial banks are the major source of debt with generally short tenure (being about 50% of concession period). At the current time, it is difficult to predict how the financing situation will evolve over the short-term. Certainly, access to credit has become far more restrictive on a global basis, however if India’s growth continues to outperform most other economies, it could emerge as a preferred destination for investment.
India has become an attractive PPP market and its attractiveness is likely to increase in the future. Contractors able to negotiate and partner with the relevant ministries should find excellent opportunities, particularly companies with a longer term view.
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TAX FOR ENGINEERING AND CONSTRUCTION COMPANIES
Engineering and construction companies looking to invest in India need to consider a variety of tax issues. Overall tax rates can be relatively high, so careful tax planning is vital. Some of the relevant taxes applicable to engineering and construction companies are listed below:
Transfer pricing regulations were introduced in India in 2001. Although transfer pricing regulations are a relatively recent phenomenon, the authorities have taken an aggressive stance. There is no advance pricing arrangement (APA) yet in India, so the implications of transfer pricing remain somewhat uncertain. The Government’s strong focus on promoting infrastructure development also extends to tax policy, with a number of policy measures and incentives now in place for the construction of infrastructure facilities, including a numbers of tax holidays, although minimum Alternate Tax (MAT) of 11.33% may be payable on book profits during this period. Relevant tax holidays, their applicability, and the eligibility of each infrastructure sector are detailed in table below:
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STRUCTURAL CONSIDERATIONS FOR DEVELOPERS
Dividends paid by an Indian company are subject to a Dividend Distribution Tax (‘DDT’) of around 17%. In February 2008, the Finance Minister announced some relief whereby a dividend paid to a parent company by its subsidiary would not be liable to DDT, subject to prescribed conditions. Earlier, corporates had a lean structure with one company having many divisions catering to different businesses. Following the recent change in DDT, many corporates may be considering restructuring their corporate structure so that different business streams have separate Indian operating companies with one common Indian parent. While such types of structuring may help the parent company to unlock shareholder value and should impose any additional levy of DDT, it should be noted that introducing a new corporate layer at the Indian level will bring the shares in the Indian operating company within the Indian capital gains tax net.
Additionally, even if DDT is not due on dividend payments, there would be an up to 10% cash trap in the Indian operating companies, as in accordance with Indian regulatory provisions, only 90% of a company’s distributable reserves may be paid as dividends. Therefore, a construction company working on multiple projects in India should consider all relevant factors bespoke to their requirements before structuring their operations.
INTERNATIONAL TAX CONSIDERATIONS
Effective tax structuring into India is vital as this impacts on how attractive a project is to target investors and has a direct influence on the net internal rate of return. It is therefore particularly important that international investment opportunities are structured appropriately to take into consideration tax, accounting, regulatory and legal aspects. We have outlined below some of the key areas to consider:
ENTRY AND EXIT STRATEGY
Holding company location – Appropriate planning in respect of a holding company jurisdiction is necessary to minimise Indian withholding tax and Indian capital gains on the sale of shares in Indian companies. Financing – In order to introduce debt into India, there are various issues that need to be considered such as the Indian External Commercial Borrowings (ECB) rules, withholding tax issues on distributions out of India and the availability of a tax deduction for the distribution at the Indian level.
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HOLDING THE INVESTMENT
Permanent Establishments – One of the risks with managing investments in India is managing the Indian permanent establishment position, where if the Indian tax authorities successfully argue that there is an Indian permanent establishment of the foreign operations in India, then there may be significant adverse tax implications. It is therefore important to carefully manage the operations carried out at the Indian level. In practical terms in the engineering and construction industry, activities generally take a long duration to complete, and hence PE clauses (especially fixed base and service PE) come into play in this industry more often. Table below indicates common types of PEs and their considerations.
CASH AND PROFITS REPATRIATION
Profit repatriation – There are various options on repatriating profits from the structure, such as dividend distributions, share sale, capital reductions, etc., all with differing tax impacts.
ENGINEERING, PROCUREMENT & CONSTRUCTION (EPC) CONTRACTS: ON-SHORE VS OFF-SHORE
In the engineering and construction industry, the execution of projects is undertaken substantially by way of an engineering, procurement and construction (EPC) contract. A typical EPC contract will have the following scope of work in a single project:
Supply of equipment (off-shore and on-shore) Installation/commissioning Infrastructure in India | 2014 ______32
Services (offshore and onshore) Software/technology transfer (offshore and onshore)
Under a typical EPC contract, a non-resident contractor performs a multitude of activities. The scope of work under an EPC contract would include both on-shore and off-shore activities. Taxability of payments received by foreign companies under EPC contracts has become a matter of great debate and litigation. On-shore supplies and services are normally taxable in India. Off-shore supply of goods and services under a composite contract are something of a grey area. The Indian revenue authorities often attempt to bring the entire EPC contract, including off-shore supplies and services, within the range of taxes in India. The tax authorities may site a business connection in India, and also note the presumed indivisibility of the EPC contracts.
Nonetheless, some recent landmark judicial rulings with regards to EPC contracts in India suggest that the tax outcomes for each of the components of the contract must be determined independently. These rulings have brought about a general principal that profit from off-shore supplies would not be taxable in India, subject to the following conditions:
Principal to principal transaction Title (i.e.: risk and ownership) in the off-shore supplies passed to the buyer on high seas (outside India) Sale consideration is received outside of India. Sale is at arm’s length
Although the above rulings suggest that off-shore supply and services may not be taxed in India, the tax liability depends on the specifics of each case. Further, the revenue authorities have not accepted the above rulings and matter is pending before the higher judicial authority. Engineering and construction companies should take care to structure contracts in a tax efficient manner, taking into account the particulars of each subject.
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MARKET CHALLENGES
Without doubt, there is huge opportunity in the Indian infrastructure space in the short and medium terms at least. The recent ruling and regulations of the Indian Government, which have been evolving very rapidly in recent years, continue to encourage the private sector in taking on a larger and more diverse role – from being an infrastructure builder (under a publicly financed arrangement) to an infrastructure developer (under PPP structures which include private finance).
These developments have led to a large number of infrastructure projects open up as many opportunities for the private sector. Considering the FDI guidelines, these lucrative projects present both an opportunity and a threat to local players. In many cases, foreign players are believed to have greater technological expertise, deeper pockets and more extensive experience compared to domestic companies. These advantages could mean overseas companies winning work at the expense of local players, or partnering with them. Domestic engineering and construction companies may therefore look at foreign entrants in the market as tough competitors – or as strong potential partners.
If most of the forecasted projects go ahead as planned, there should be more than enough work for everyone. Wharton Business School’s 2007 analysis of India’s construction boom pointed out that the proposed US $50 billion infrastructure spend per year in India is nearly two and half times the current turnover of the entire existing domestic construction industry (US $15 billion and growing fast) and that many of the major engineering and construction companies have massive order backlogs. Wharton also flagged talent shortages as an issue in key skilled trades such as fitting, welding, masonry and plumbing – so drawing on the talent pool of foreign partners may help in supplementing and training local tradesmen. India is also facing shortages of construction equipment and machinery providing an opportunity to Flemish companies to come cater to the market requirement.
Domestic production of equipment and machinery is ramping up fast, but in the short term, a foreign partner may be able to help fill in any gaps. There are many factors that influence the role of the local players vis-à-vis foreign players – for example, the criteria used for the selection of developers is an important influencer on what role the foreign players will take.
Risk sharing on a PPP project also needs to be carefully considered. The revenues of most infrastructure projects in India will be denominated in the local currency. Foreign players will need to consider the currency and tax issues already mentioned in some detail, particularly on a PPP project where significant private investment is also sought.
International engineering procurement and constructions contractors, including Toyo Engineering, Jacobs, H&G, Uhde, Tecnimont and Aker Kvaerner are already leading players in India. At the same time, many Indian companies e.g. Larsen and Toubro, Gammon, Bharat Heavy Electrical Limited (‘BHEL’), Engineers India Ltd and Thermax have either scaled up their skill sets or extended their operations to overseas projects.
India has a very well established infrastructure developer market. Local firms have evolved in recent times into full-fledged national players (and in some cases international players). In certain sectors,
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such as highways, power and water, the local firms also have significantly progressed on the technological front. Some of the India based companies such as L&T, Punj Lloyd, Reliance, GMR, Suzlon, Tata Power, etc. are very active in the international markets and thus, can no more be deemed ‘local’ engineering and construction companies. Indeed, they are global organisations based out of India. These and other large firms clearly look at foreign players as both partners and competitors. However, smaller and medium sized infrastructure construction companies and developers (such as KMC, Nagarjuna, IVRCL, Gammon, etc.) are often happy to partner with foreign players without necessarily considering them as competitors. The recent guidelines issued by the Indian Government for the selection of PPP developers have also led to a slightly distorted behaviour in the local marketplace. The guidelines favour larger players, even when the project investments and execution can be easily carried out by mid-sized companies. This has led to situations where many of the small/medium-sized local players are looking at partnering with the foreign players primarily for the purpose of getting qualified and winning the job, rather than to actually bring in investment or expertise. It is expected that such behaviour will soon change as the guidelines become more reflective of market dynamics and mid-sized Indian companies mature.
Flemish players looking to enter into the Indian market place and team with local players need to evaluate carefully the cost competitiveness of their prospective participation. India has witnessed huge interest from a number of foreign infrastructure companies in the past, but not many have really been able to offer a cost competitive proposal. Since India has evolved its own model of cost competitive delivery in many sectors (for example, in telecoms), local players have an incentive to work with foreign companies only if the partnering offers a competitive edge over other bidders.
There have been few such success stories so far where the foreign player has offered a particularly cost competitive product or service. For instance, we have seen successful entry of foreign players (such as in the port sector), foreign companies with technological edge or management advantages or expanded reach into international markets to supplement the capabilities of local partners.
Source: PRICEWATERHOUSE COOPERS, Nov 2008, Infrastructure in India, ERNST AND YOUNG, 2012, Accelerating Private Public Partnerships in India, DELOITTE, 2009, a background paper on Infrastructure in Maharashtra
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SUCCESS STORIES OF BELGIAN COMPANIES IN INDIAN INFRASTRUCTURE
TRAFFICON (NOW KNOWN AS FLIR)
Traficon, the world’s leading video detection specialist, was awarded a contract for delivering over 700 vehicle presence detectors for intelligent traffic control in the cities of Mumbai and Chennai. For Traficon, this major contract was an important strategic breakthrough into this fast growing Indian market.
Traffic management has been a challenge in India for some time – and it’s becoming more difficult with every passing day. In addition to increasing traffic congestion and complexity, the urban areas are also faced with other transport related problems such as increasing CO2 emissions and depleting fuel resources, which adversely impact the well-being of any major city. But cities like Mumbai and Chennai are taking up the challenge. Next to building new roads, they are investing heavily in advanced technologies and intelligent solutions that optimize traffic management. And this is where Traficon’s field proven technology comes in. It’s being utilized as part of Area Traffic Control (ATC) project to ensure the traffic flows safer and smoother.
In Mumbai, nearly 700 vehicle presence detectors - both TrafiCam and TrafiCam x-stream – have been installed at various busy road junctions controlled by traffic signals. By detecting both waiting and approaching vehicles, these intelligent 'all-in-one' cameras will be used for optimization of traffic signal timings and to cut down waiting time at traffic lights. TrafiCam x-stream being an IP- addressable device also provides MPEG- 4 colour streaming video in the control center for general intersection surveillance.
The use of these above ground detectors forms part of the Mumbai City Mobility Management project. This project includes the implementation of an Adaptive Traffic Control System (ATCS), provided and coordinated by Telvent. Based on the information coming from the sensors or surveillance devices, this state of the art system alters traffic signal cycles in real time to respond to changing traffic conditions. ATCS is expected to cut down waiting time at traffic signals by almost half.
For the city of Chennai, the decision to use Traficon’s integrated video sensor technology was taken after a competitive bidding around mid-2010. Today up to 100 TrafiCam sensors are installed and operational to detect waiting vehicles at multiple intersections across the city.
Source: Road Traffic Technology (Online Magazine), March 24, 2011, Traficon awarded major smart intersection control contract in India.
EURO STATION AND EURO IMMOSTAR
Indian Railways have signed an agreement with Belgium to modernise and make some of the country's railway stations world class. Indian and Belgian railways will benefit with mutual
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consultation and exchange of information services on development and modernisation of railway stations based on the Memorandum of Understanding signed between the Belgian Deputy Prime Minister Didier Reynders, who is also Belgian Minister for Foreign Affairs, Foreign Trade and European Affairs and Indian Government. Ties between the countries would strengthen with sharing of design and current practices in railway infrastructure and deputation of experts in areas of mutual interest. The countries have decided to form steering and working groups of experts to determine and define scope and modalities of activities and projects.
Belgian government owned companies such as Euro Station and Euro Immostar have vast experience in developing stations. These companies have extensive expertise in transforming historical railway stations into the modern international terminals and the experience gained by them can be emulated in India after suitable adaptation to Indian conditions.
Several Belgian or Belgium-based companies are already present in India and their activities ranged from fastening and coating of rails to delivery of parts for train construction and software for safety and network management.
A two-member expert team from Belgium has expressed interest in further developing the Nagpur railway station into a world-class terminal. After visiting Nagpur station, the team from Euro Station has agreed to draft a master plan to be prepared within six months.
The station building which has completed 83 years is a heritage structure and utmost care will be taken to develop it without damaging its original fabric. Nagpur Railway station part of the Central Railway which connects north-south and east-west, is the pilot project to start with. Things will begin with master planning, followed by technical feasibility. Within next 8-10 months time all the ground work will be done by steering and working groups of experts to determine and define scope and modalities of activities and projects.
Source: IBN Live, August 03, 2012,’Belgium to help India modernise railway stations. NDTV, May 25, 2013, Experts from Belgium to develop Nagpur railway station into world class terminal.
NEY AND POULISSEN
A proposed elevated corridor to Navi Mumbai from the Eastern Express Highway near Ghatkopar took off from the drawing board with the MMRDA signing a deal with a foreign firm to work out the cost and concept.
The 6.48 km corridor will originate near Ghatkopar on the Eastern Express Highway and culminate on the Palm Beach Road extension near Koparkhairane.
An MoU was signed with Belgium-based consultancy firm, Ney & Poulissen, engineer and contractors for this project. The firm is expected to suggest the design, work out the cost and also prepare the bid documents for the project.
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The consultancy will cost about 1 million Euros, half of which is being borne by the Belgium government.
Of the 6.48 km corridor, about 2.33 km will be the bridge above the creek. The entire corridor will be on stilts as it will pass over mangroves. The consultant will decide if it will have four or six lanes.
The MoU includes consultancy for a sea-link between Rewas and Karanja. The proposed eight km road, including a bridge over the Rewas creek, will shrink travel time between Mumbai and Alibaug. As of now, one has to take the road via Khopoli-Pen-Poinad, a distance of 70 km, or take the ferry service, which stops during the monsoons.
Source: Projects Today, 28 Nov 2013, MMRDA signs MoU with Ney Poulissen
TPF
In 2006, TPF acquired a majority stake in S.N. Bhobe and Associates Pvt. Ltd. www.snbapl.com, headquartered in Mumbai, allowing the Indian company to offer engineering and consulting services with a global perspective.
At the end of 2011, TPF completed the acquisition of two sister companies in Kolkata: C.E. Testing Company Pvt. Ltd. www.cetestindia.com and Survtech Pvt. Ltd. www.survtech.in
Thanks to those additional acquisitions, TPF targets INR 1 billion as Indian turnover with 1,000 employees by the end of Indian fiscal year 2013-14.
TPF is active in the field of airports, buildings, hospitals, bridges, flyovers, roads, viaducts, motorways, expressways, tunnels, energy efficiency, renewable energies, industrial plants, water and waste water plants, utilities. The clients include not only domestic and international private sector companies but also public sector entities in addition to a large number of government developments.
Among the latest projected awarded to TPFs Indian sub subsidiaries, notable projects would include the execution of the Bangalore metro stations, a large architectural projects like the Rajasthan Bhavan and the 400 km+ detailed project report (DPR) for highways for the Maharashtra government.
Source: Wallonia Foreign Trade & Investment Agency, 2006, Success Stories in India
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PORT OF ANTWERP AND ESSAR
Essar Ports recently formed a strategic alliance with Port of Antwerp International (PAI), the international investment arm of Belgium's Antwerp Port Authority. PAI has picked up a 4 per cent stake in Essar Ports for US $31.3 million.
As part of this partnership, Essar Ports, the country's second largest private sector port and Terminals Company, will look at building a port city at its harbour at Hazira in Gujarat. The joint venture will also help the company to increase trade volumes by attracting cargo traffic from Antwerp, currently landing at other Indian ports, at concessional rates.
This partnership with Europe's second largest port will promote growth of traffic between Port of Antwerp and ports of Essar and help Essar in developing world class port facilities with a focus on quality, productivity and environment.
The Antwerp Port Authority and Essar Ports will collaborate in the areas of training and consultancy services, port planning, traffic flow, quality and productivity improvement. The port city planned will be along the lines of the one at Antwerp, where several industrial units surround the port.
According to Essar, most of the proceeds from the stake sale will be used to reduce debt. PAI is picking up the stake in the form of global depositary receipts. Indian regulations do not allow Essar Ports to raise equity till the promoters bring down their stake to 75 per cent or below. Once that happens, the global depositary receipts will be converted to equity shares. Currently, the promoters hold around 84 per cent in the firm.
PAI will also play a role in the management of the firm as well. Jan Adam, chief financial officer of the Port of Antwerp, will be appointed as a non-executive director on the board of Essar Ports.
Source: Essar, July 09, 2012,Essar steams ahead
JOINT INFRASTRCUTURE FUND WITH IL&FS
Belgium has floated the idea of its sovereign wealth fund Federal Holding Company jointly with India's Infrastructure Leasing and Financial Services (IL&FS), to create a fund that will invest in infrastructure projects as well as in listed and privately held companies.
Belgium’s deputy Prime Minister Didier Reynders said an agreement to set up such a fund was signed during his meeting with commerce minister Anand Sharma in New Delhi. However, he declined to disclose the corpus of the proposed fund, or when it will be operational.
The Federal Holding Company holds the stakes of the Belgian government in a host of firms across sectors and borders including the French banking major BNP Paribas. Belgium already has such tie- ups with local funds in all the other BRICS countries for a decade.
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The goal is to work together to develop infrastructure in India, to develop some new firms in different fields. Belgium is India's second biggest trading partner in the 27-member EU. The Belgian Government is now waiting for some proposals, what kind of infrastructure projects are on the table and then they will see with the new fund on both sides, what are the possible projects to support. Nevertheless, FTA between India and EU will make it easier to operationalise the fund.
Source: Infrawindow News Bureau, Nov 29, 2013, not waiting for Indo-EU FTA India, Belgium to jointly set up infrastructure fund.
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MAJOR INDIAN PLAYERS IN INFRASTRUCTURE SECTOR
GMR GROUP
Website – www.gmrgroup.in | Business – Construction
Corporate Office – Bangalore, Karnataka | Establishment – 1978
One of the fastest growing construction company in India having implemented many project successfully across India as well as abroad. They focus mainly on Highways, Airports, Urban Infrastructure sectors and Energy.
LANCO INFRATECH LIMITED
Website – www.lancogroup.com | Business – Construction
Corporate Office – New Delhi, India | Establishment – 1986
One of the best construction companies in India working innovatively to achieve quality and excellence. They have a foothold in the sector of Procurement, Construction (EPC), Engineering, Natural Resources, Infrastructure and Power.
MAN INFRACONSTRUCTION LIMITED
Website – www.maninfra.com | Business – Construction
Corporate Office – Mumbai, Maharashtra | Establishment – 1964
One of the leading company having expertise in Industrial Constructions, Commercial & Institutional Constructions, Road constructions, Residential Constructions and Port Infrastructure.
SIMPLEX INFRASTRUCTURES LIMITED
Corporate Office – Kolkata, West Bengal | Business – Construction
Website – www.simplexinfrastructures.com | Establishment – 1924
Simplex is among the top ten construction companies in India providing solutions in construction and infrastructure sector and was the first to introduce driven cast-in-situ concrete piling in India and South East Asia. Infrastructure in India | 2014 ______41
IVRCL LIMITED
Website -www.ivrcl.com | Business – Construction & Engineering
Corporate Office – Hyderabad, Andhra Pradesh | Establishment – 1987
IVRCL tops the list of top construction companies in India. IVRCL has expertise in water segment, industrial structures, buildings, flyovers, bridges, real estate, highways, power transmission, roads, power transmission, railways, real estate & water treatment plants. They have also set-up sea water desalination plant.
HINDUSTAN CONSTRUCTION CO. LIMITED
Website -www.hccindia.com | Business – Real estate development, Construction & Engineering Corporate Office – Mumbai, Maharashtra | Establishment -1926
HCC is a major provider of construction and engineering services. HCC has developed some of the significant projects which includes Lavasa which is a planned hill city near Pune and nuclear power generation plants.
RAMKY INFRASTRUCTURE LIMITED
Website -www.ramkyinfrastructure.com | Business – Real estate development & Construction
Corporate Office – Hyderabad, Andhra Pradesh | Establishment – 1994
Ramky Infra is a construction company having done many infrastructure and construction projects in different sectors which includes the Railways, Irrigation and Roads. Company has five zonal offices in India and an office in UAE to handle international projects.
IL&FS ENGINEERING AND CONSTRUCTION COMPANY LIMITED
Website -www.ilfsengg.com | Business – Construction & Engineering
Corporate Office – Hyderabad, Andhra Pradesh | Establishment – 1988
One of the leading infrastructure development company working in various segments which includes Thermal and Hydel Power, Buildings and Industrial Structures, Roads and Irrigation and with their innovative approach company is trying to extend their business in new segments.
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GAMMON INDIA
Website -www.gammonindia.com | Business – Civil Engineering & Construction
Corporate Office – Mumbai, Maharashtra | Establishment – 1922
One of the best civil engineering and construction company in India. Some of the toughest projects executed by company includes Gateway of India and fast breeder reactor. The companies core competencies comprises of transmission lines, infrastructure management and power sector.
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NODAL AGENCIES IN MAHARASHTRA
Maharashtra is the third largest state in the country and the second largest in population after Uttar Pradesh. Maharashtra is one of the prosperous states of the country and houses some of the largest businesses and Financial Institutes in India and holds many records for its contribution in the nation’s economic development including:
• 18 % of fixed capital investment
• 20 % of value of production
• 49 % of total tax collection
• 13 % of total factory employment
Mumbai is the capital city which plays the dual role of being both the financial and the cinematic hub of the country. Mumbai is the economic hub of most of the financial and business activities of the country. The Island city contributes no less than 60% of customs duty collections, 40% of income tax collections and 20% of central excise tax collections of India. Maharashtra has thirty five revenue districts, which are grouped into six divisions: Aurangabad Division, Amravati Division, Konkan Division, Nagpur Division, Nasik Division and Pune Division. These are official revenue divisions of government of Maharashtra. Geographically, historically and according to political sentiments, Maharashtra has five main regions viz Vidarbha or Berar (Nagpur and Amravati divisions), Marathwada (Aurangabad Division), Khandesh and Northern Maharashtra (Nasik Division), Desh or Western Maharashtra (Pune Division), and Konkan (Konkan Division).
In contrast to the agrarian economy that characterises India, Maharashtra stands out, with the highest level of urbanisation of all Indian states.
The State of Maharashtra is a major contributor to the nation’s economy accounting for almost 21 % of the industrial output, 13 % of the national GDP, 13.7% of total factory employment. Mumbai, the
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state capital is the headquarters of many of the large business establishments and financial institutions.
The state industrial growth rate has remained at around 10 % over the past few years and efforts are required to push this growth rate by creating an efficient infrastructure for facilitating sustained industrial production. The State’s average annual GSDP (Gross state domestic product) for the 10th five year plan has been around 9%. Although Maharashtra is a highly industrialised state of India, agriculture continues to be the main occupation of the people. About 61% of the people directly or indirectly depend on agriculture and allied activities for their livelihood. The average annual GSDP growth of agriculture and allied activities sector for the state in the 10th five year plan from 2002 to 2007 has been around 3%, which is less than the growth of 4% achieved in the 9th five year plan. The slowdown in the state agriculture output is acting as a bottleneck for the overall economic growth of the State. Maharashtra is rated as one of the most preferred investment destination in the country. Though Maharashtra receives a higher number of investment proposals, the state lags behind Gujarat in terms of the actual implementation of such proposals due to infrastructural deficiencies and lack of measures to facilitate smoother project implementation.
The Human Development Index (HDI) is the normalized measure of life expectancy, literacy, education, standard of living, and GDP per capita of a region. As per the National Human Development Report 2001 by Planning Commission, Maharashtra scores 0.523 as on 2001, improving its score of 0.363 of 1981. However during the past two decades, Maharashtra’s ranking in the State HDI index has fallen one place below to that of fourth in the index ranking.
MUMBAI METROPOLITAN REGION DEVELOPMENT AUTHORITY (MMRDA)
Website: www.mmrda.maharashtra.gov.in
The Mumbai Metropolitan Region Development Authority (MMRDA) was established in accordance with the Mumbai Metropolitan Development Act, 1974, on 26th January, 1975.
Since its inception, MMRDA is engaged in long term planning, promotion of new growth centers, implementation of strategic projects and financing infrastructure development. The Regional Plan provides for a strategic frame work of Mumbai Metropolitan Region's sustainable growth. The object behind establishing MMRDA was to make Mumbai Metropolitan Region a destination for economic activity by promoting infrastructure development and improving the quality of life.
The MMRDA prepares plans, formulates policies and programs, implements projects and helps in directing investments in the Region.
The broad responsibilities of the Mumbai Metropolitan Region Development Authority includes:
Preparation of Regional Development Plans Providing financial assistance for significant regional projects Providing help to local authorities and their infrastructure projects Coordinating execution of projects and/or schemes in Mumbai Metropolitan Region
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Restricting any activity that could adversely affect appropriate development of Mumbai Metropolitan Region
In particular, it conceives, promotes and monitors the key projects for developing new growth centres and brings about improvement in sectors like transport, housing, water supply and environment in the Region.
E-Tendering Link: http://etendermmrda.maharashtra.gov.in/login
Government of Maharashtra has issued a Government Resolution (GR) dated 6th August 2010, mandating the implementation of E-Tendering solution for processing of tenders above the value of INR 5 million the same has been revised to INR 1 million on 16th January, 2013. Accordingly, MMRDA has decided to implement the E-Tendering solution which will provide the following benefits:
Contractors would benefit from a fair, open and secure tendering process.
The process of E-Tendering is not dependent on physical presence of bidder it enables the contractors to bid from anywhere Office, home etc.
Information on all the tenders is available to the contractors as well as to MMRDA divisions at one place.
Details pertaining to projects being implemented by MMRDA - http://202.54.119.40/projects.htm
CITY AND INDUSTRIAL DEVELOPMENT CORPORATION OF MAHARASHTRA LTD (CIDCO)
Website: www.cidco.maharashtra.gov.in
City and Industrial Development Corporation of Maharashtra Ltd (CIDCO), is a company wholly owned by the Govt. Of Maharashtra and was incorporated on 17th March 1970, with the specific aim of Mumbai city and at the same time creating a new planned, self-sufficient and sustainable city on the mainland across Thane creek adjoining Mumbai. What began as a mission to Mumbai ended up in the creation of one of the largest planned city known today and elevated CIDCO into the position of India’s premier town planning agency.
With a wide spectrum of activities, CIDCO is a multi-faceted and multi-disciplinary organization having 1,750 employees, which includes planners, architects, engineers and other professionals. Since its inception, CIDCO has diversified its working spectrum to accommodate new activities, even though its primary attention is still concentrated in overlooking the constant development of Navi Mumbai. The multidimensional activities undertaken today by CIDCO can be classified under these three broad concepts:
• Planning and Development of New Towns • Consultancy • Project Management and Designing.
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The Concept of New Towns has evolved manifolds under the competent expertise of CIDCO. CIDCO is designated Special Planning Authority by Government of Maharashtra for new towns to fulfill the following objectives:
Reduction of population overcrowding in core cities Absorption of emigrants and preventing the emigration of present population by providing better conditions and new opportunities Setting the industrial pace of the State with the help of balanced urban development Provision of excellent socio-economic facilities, thereby improving the quality of life
E-Tendering Link: https://cidco.maharashtra.etenders.in/common/home.asp
Details pertaining to projects being implemented by CIDCO – www.cidco.maharashtra.gov.in/MP_Costal_Road.aspx
Navi Mumbai International Airport (NMIA) http://www.cidco.maharashtra.gov.in/NMIA_AbouttheProjects.aspx Navi Mumbai Metro (NMM) http://www.cidco.maharashtra.gov.in/NMM_Introduction.aspx
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ROAD AHEAD
Although it may not always be easy to navigate the plethora of views, opinions and perceptions expressed by various local stakeholders, a vast opportunity exists for foreign contracting companies looking to invest in Indian infrastructure. Already, a number of contractors from Europe, Australia, China, Malaysia and Korea have made their presence felt in India. Further, many engineering and construction companies, particularly from Japan, Spain, France and UK is also now aggressively looking out for opportunities to enter India for business.
Overall, the opportunities to develop a significant business in India are extremely promising for engineering and construction companies, if they have carefully selected strong local partners, structured contracts sensibly to maximise tax benefits where appropriate and taken a long-term, sustainable perspective. Foreign companies who do not acknowledge the opportunity in good time may miss out on a critical opportunity to establish a long-term presence in one of the world’s largest growth markets.
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FLANDERS INVESTMENT AND TRADE, MUMBAI AND MMRDA MOU
During the 2013 Princess Mission, Flanders Investment and Trade – Mumbai and MMRDA (Mumbai Metropolitan Region Development Authority) have entered into a Memorandum of Understanding. The purpose of the MoU is to promote exchange of new technologies and knowledge between MMRDA and Flemish companies and organizations involved in the urban infrastructure and urban planning, engineering development and management. Interested Flemish companies in the infrastructure development space may contact Flanders Investment and Trade – Mumbai office for direct assistance with regards to MMRDA and any other query pertaining to infrastructure in India.
As a part of the MoU both parties (here Flanders Investment and Trade, Mumbai and MMRDA) have agreed to assist each other in order to promote and boost infrastructure in India. Following are the points agreed by both parties:
From Flanders Investment and Trade Mumbai : Assist Flemish companies in their prospection efforts in India and by offering integrated support to Indian companies in setting up or expanding their activities and investments in Flanders, Belgium.
From MMRDA : Will offer long term planning , promotion of new growth centers, implementation of strategic projects and financing infrastructure development in the Mumbai metropolitan region. MMRDA will assist in preparation of plans, formulating policies and programs, implements projects and helps in directing investment in the region.
Support that will be provided by Flanders Investment and Trade – Mumbai as a part of the MoU:
Figuring out business opportunities in Mumbai metropolitan region and Flanders for companies from both sides. Assisting Flemish companies’ individual tailor made business strategies in order to expand reach out in India market. Co-organizing group events in Mumbai metropolitan region such as seminars, trade missions. Assist MMRDA with suppliers for technology or products or services, co-operation partners or investment opportunities in Flanders. Co-financing of feasibility studies, based on integral approach, including a complete integration of all infrastructure requirement in the landscape and urban space, with a focus on economic, technical, environmental, social and financial aspects.
Support that will be provided by MMRDA as a part of the MoU:
Share information about plans and projects undertaken or proposed by MMRDA. Share various reports and studies conducted by MMRDA from time to time. Facilitating information from other governmental agencies working in Mumbai metropolitan region related to urban planning and infrastructure.
MoU’s field of work includes: Urban planning and infrastructure, planning and engineering, development and management, waste water treatment, including processing of water, solid water treatment and contaminated soil management.
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At Flanders Investment and Trade, we promote sustainable international business, in the interest of both Flanders based companies and overseas enterprises.
Be it any sector, FIT will help you establish contact with the Flemish companies. This includes not only products or services, but also various types of business relationships, from joint ventures to technology transfers.
At another level Flanders Investment and Trade enhances Flanders’ position as the gateway to Europe for inward investors. The agency identifies, informs, advises and supports overseas enterprises by establishing production and research facilities, contact centers, headquarters, logistics operations and the like in Flanders, the northern region of Belgium.
Services offered by Flanders Investment and Trade – Mumbai
Market Studies Sector focused mission B2B Program Financial Support Market Feasibility Studies Market Prospection
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INDUSTRY CONTACTS
WEST INDIA CONTACTS
LARSEN AND TOUBRO ADDRESS: Ballard Estate, P.O. Box 278, Mumbai 400 001, India TELEPHONE: +91 22 67525656/67525729 FAX: +91 22 6705 1628 EMAIL: [email protected] , [email protected] WEBSITE: www.lntenc.com CONTACT PERSON: Mr. AM Naik DESIGNATION: Chairman & Managing Director DETAILS: Larsen and Toubro one of the prominent names in the engineering and construction industry, they cater to segments such as building materials; construction and infrastructure; engineering consultancy and projects; construction and infrastructure roads; ICT; machinery and equipment and real estate.
UDHE ENGINEERINGS ADDRESS: Uhde House, LBS Marg, Vikhroli(W), Mumbai 400 083, India TELEPHONE: +91 22 6796-8004 MOBILE: +91 98200 90937 FAX: +91 22 2579 2207 EMAIL: [email protected] WEBSITE: www.uhdeindia.com CONTACT PERSON: Dr I. Dayasagar DESIGNATION: Executive Director DETAILS: A premier Indian engineering company for EPCM / EPC-LSTK implementation of Chemical and Industrial Plants.
KEC INTERNATIONAL LIMITED ADDRESS: RPG House, 463 Annie Besant Road, Worli, Mumbai - 400030, India TELEPHONE: +91 22 66670227 MOBILE: +91 9833292661 EMAIL: [email protected] WEBSITE: www.kecrpg.com CONTACT PERSON: Mr. Ramesh Chandak DESIGNATION: Chief Executive Officer DETAILS: KEC International Limited, the flagship Company of RPG Group is a global infrastructure Engineering, Procurement and Construction (EPC) major. The Company has powered infrastructure development in over 45 countries across South Asia, Middle East and North Africa (MENA), rest of Africa, Central Asia and Americas. While Power Transmission is the
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largest business vertical, the Company also has a growing presence across Power Systems, Cables, Railways, Telecom and Water.
HINDUSTAN CONSTRUCTION COMPANY ADDRESS: Hincon House, LBS Marg, Vikhroli (W), Mumbai - 400083 TELEPHONE: +91 22 2575 1000 MOBILE: +91 98204 55830 FAX: +91 22 25775732 EMAIL: [email protected] WEBSITE: www.hccindia.com CONTACT PERSON: Mr. Ajit Pradhan DESIGNATION: VP Strategy Development DETAILS: HCC Group delivers world-class engineering and construction services. They are pioneers in the Indian infrastructure industry. Continuing their legacy of innovation, they have achieved new milestones with every endeavour. HCC is responsible for landmark projects that have defined the country's progress. Surging ahead with presence in multiple sectors and involvement in revolutionary projects, they are creating opportunities for everyone.
VOLTAS ADDRESS: Voltas House `A`, Dr Babasaheb Ambedkar Road, Chinchpokli 400033 Mumbai TELEPHONE: +91 22 66656580 / 66656666 EMAIL: [email protected] WEBSITE: www.voltas.com CONTACT PERSON: Mr. Anindya Ganguly DESIGNATION: Vice President – Construction Equipment DETAILS: Voltas is India's largest air conditioning company, and one of the world's premier engineering solutions providers and project specialists. Founded in India in 1954, Voltas Limited offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, water management and treatment, cold chain solutions, building management systems, and indoor air quality.
TATA CONSULTING ENGINEERS ADDRESS: Matulya Centre A, 249 Senapati Bapat Marg, Lower Parel (West), Mumbai 400 013, India TELEPHONE: +91 22 6662 4743 / 61148285 FAX: +91 22 6662 4723 EMAIL: [email protected]
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WEBSITE: www.tce.co.in CONTACT PERSON: Mr. P K Pal DESIGNATION: Chief Manager (Civil) DETAILS: Tata Consulting Engineers Limited (TCE) is one of India's leading engineering consulting organizations. Established as Tata-Ebasco Consulting Engineering Services in 1962, the company is now a wholly- owned subsidiary of Tata Sons Limited. TCE is ISO 9001 - 2008 certified by Lloyd's Register Quality Assurance.
UNITY INFRA PROJECTS ADDRESS: 1252,Pushpanjali Apartments, Old Prabhadevi Road,Prabhadevi, Mumbai 400 025 TELEPHONE: +91 22 6666 5500 MOBILE: +91 9167407532 FAX: +91 22 6666 5599 EMAIL: [email protected] WEBSITE: www.unityinfra.com CONTACT PERSON: Mr. Abhijit Avarsekar DESIGNATION: CEO DETAILS: Promoted by Shri. K K Avarsekar and his associates, Unity Infraprojects Limited (UIL) was incorporated in 1979. Headquartered in Mumbai, mainly engaged in construction and allied activities, company operates in 4 verticals: buildings and housing; transportation; water supply and irrigation. Having achieved ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 the company has gained credibility owing to its quick turnaround time, in time and within cost deliveries, organizational strength and financial stability and above all, international standards.
GAMMON INFRA ADDRESS: A-201,209, Chandivali Farm Road, Andheri (East), Mumbai - 400 072. TELEPHONE: +91 22 6197 9665 MOBILE: +91 9819877234 FAX: +91 22 6197 9666 EMAIL: [email protected] WEBSITE: www.gammonindia.com/home/gammon-india.htm CONTACT PERSON: Mr. Ankur Goyal DESIGNATION: Manager - Business Development & Marketing DETAILS: Gammon India is amongst the largest physical infrastructure construction companies in India. Its track record spans significant landmark projects built over several decades, with a prominent presence across all sectors of civil engineering, design and construction. It has a track record of building landmark structures, some of which have become iconic. This includes’ The Gateway of India’, the piling and civil foundation work for
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which was successfully executed by Gammon as its maiden project way back in 1919.
HINDUSTAN DORR OLIVER ADDRESS: Dorr-Oliver House, Chakala Andheri (East), Mumbai - 400 099. TELEPHONE: +91 22 2835 9400 Ext 9402 EMAIL: [email protected] WEBSITE: www.hdo.in/main CONTACT PERSON: Mr. Sekaran S.C DESIGNATION: Executive Director DETAILS: A leader in the industrial EPC market, Hindustan Dorr-Oliver Limited, has been providing state-of-art technology solutions to its clients for about 7 decades now. They have come a long way from our humble beginnings as supplier of proprietary solid-liquid separation equipment to being a major engineering EPC player, assimilating new technologies and providing the best, most cost effective and integrated turnkey solutions. They have a pan India presence, with offices in every major city in India - Mumbai, Bangalore, Chennai, Kolkota, Delhi and Ahmedabad.
PETRON ENGINEERING ADDRESS: Level 6, Swastik Chambers, Sion -Trombay Road, Chembur, Mumbai – 400 071. TELEPHONE: +91 22 6797 3523 / 2526 1130 FAX: +91 22 6797 3509 EMAIL: [email protected] WEBSITE: www.petronengineering.com CONTACT PERSON: Mr. TS Das DESIGNATION: Managing Director DETAILS: Petron Engineering Construction Limited, came into existence nearly thirty years back. Based on the professional deliverance and commitment levels of its employees and with the focused management vision, the group today has successfully executed nearly 600 projects, for renowned public as well as private sector companies nationwide. These were in diversified sectors like refineries (reformers and crackers), oil and gas, power, cement, fertilizer and petrochemical, including specialized insulation and refractory work, fabrication work along with electrical and instrumentation work.
TOYO ENGINEERING INDIA LTD ADDRESS: Lal Bahadur Shastri Marg,Kanjurmarg (West), Mumbai - 400 078. TELEPHONE: +91 22 25737636/25737000 EMAIL: [email protected] WEBSITE: http://www.toyoindia.com/
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CONTACT PERSON: Mr A.K.Rehlan DESIGNATION: Senior Manager Construction DETAILS: Toyo Engineering India Ltd (Toyo India) was established in 1976 by Toyo Engineering Corporation (Toyo Engineering - Japan). During early days, Toyo India was primarily supporting Toyo Engineering Japan for their Middle East and India projects. Today Toyo India is professionally managed corporate entity undertaking EPC, PMC or EPCM project assignments by leveraging its vast and varied experience, large pool of technically competent manpower, excellent office infrastructure and other requisite resources.
SHAPOORJI PALLONJI INFRASTRUCTURE CAPITAL COMPANY LIMITED (AFCON IS A GROUP COMPANY) ADDRESS: SP Center, 41/44 Minoo Desai Marg, Colaba, Mumbai 400 005 TELEPHONE: +91 22 67490291 EMAIL: [email protected]/[email protected] WEBSITE: www.shapoorji.com CONTACT PERSON: Mr. Mukundan Srinivasan / Mr. Paras Vishwakarma DESIGNATION: Chairman / Senior General Manager DETAILS: Over the last hundred years, the company’s expertise has been repeatedly showcased on projects which involved a major advance in construction technology or whose size was beyond the capacity of most others. Blessed with a rich legacy and heritage, it has marched into the new millennium with modern management skills, state-of-the-art technology and the ideals of innovation and customer satisfaction.
AFCONS INFRASTRUCTURE ADDRESS: AFCONS House, 16, Shah Industrial Estate, Veera Desai Road, Azadnagar, Andheri (West),400053, Mumbai TELEPHONE: +91 22 67191143 EMAIL: [email protected] WEBSITE: www.afcons.com CONTACT PERSON: Mr. Arun C Deore DESIGNATION: Jt. G. Manager (Tendering & Business Development) DETAILS: Afcons Infrastructure Limited is part of the Shapoorji Pallonji Group, the third largest construction group in India. It is one of the prominent infrastructure companies in India with its presence in various parts of the world.
RELIANCE INFRASTRUCTURE ADDRESS: Santacruz – East, Mumbai, 400055 TELEPHONE: +91 22 30099274 MOBILE: +91 9322853488 EMAIL: [email protected]
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WEBSITE: www.relianceada.com CONTACT PERSON: Mr. Vishnu Chhatre DESIGNATION: VP Commercials and Contracts DETAILS: Reliance Infrastructure Ltd is not only India’s largest private sector enterprise in power utility but also the largest private sector player in many other infrastructure sectors such as MRTS, Sealink and Airports, Specialty Real Estate.
PRATIBHA INDUSTRIES ADDRESS: Universal Majestic, 13th & 14th Floor, Off. Eastern Express Highway, P.L. Lokhande Marg, Ghatkopar Mankhurd Link Road, Behind RBK International School, Govandi, 400 043 TELEPHONE: +91 22 39559999 / 1511 FAX: +91 22 39559900 MOBILE: +91 9930458418 EMAIL: [email protected] WEBSITE: www.pratibhagroup.com CONTACT PERSON: Mr. Kamran Kharbe DESIGNATION: General Manager Business Development DETAILS: Pratibha Industries, a registered partnership firm is a medium sized ISO 9001:2000 certified company engaged in the business of infrastructure development. IL&FS ADDRESS: The IL&FS Financial Centre,Plot No. C-22, G-Block,Bandra Kurla Complex, Bandra (E), 400 051, Mumbai TELEPHONE: +91 22 26523018 MOBILE: +91 9820040334 EMAIL: [email protected] WEBSITE: www.ilfsindia.com CONTACT PERSON: Mr. Vibhav Kapoor DESIGNATION: Chief Investment Officer DETAILS: Infrastructure Leasing & Financial Services Limited (IL&FS) is one of India's leading infrastructure development and finance companies. IL&FS has developed the requisite capabilities to take infrastructure projects from concept to commissioning. In each sector, IL&FS has established specific, replicable, stand-alone, scalable prototypes for developing self-sustaining infrastructure projects. In parallel, IL&FS has devised innovative mechanisms and products to facilitate project financing.
GVK ADDRESS: 1st floor, Terminal 1B, Santacruz (E), Mumbai - 400 099 TELEPHONE: +91 22 66850771 EMAIL: [email protected] WEBSITE: www.gvk.com
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CONTACT PERSON: Mr. Frank McCrorie DESIGNATION: Director Operations DETAILS: GVK is a leading Indian conglomerate with experience and expertise spanning across diverse sectors including Energy, Resources, Airports, Transportation, Hospitality and Life Sciences.
IVRCL ADDRESS: IVRCL House, 35 Suyojana CHS, Koregaon Park, 411001, Pune TELEPHONE: +91 20 26137741/ 26111224/ 30520641 EMAIL: [email protected] WEBSITE: www.ivrcl.com CONTACT PERSON: Mr. Dinesh Degwekar DESIGNATION: General Manager DETAILS: IVRCL deals with the following core infrastructure sectors: Water & Environment, Transportation, Buildings and Power
SIMPLEX INFRASTRUCTURE ADDRESS: 'Simplex House', 27, Shakespeare Sarani, Kolkata – 700 017 TELEPHONE: +91 22 23011600 FAX: +91 22 2283 5966 / 65 /64 EMAIL: [email protected] WEBSITE: www.simplexinfra.com CONTACT PERSON: Mr. Rajiv Mundhra DESIGNATION: Director DETAILS: Simplex Infrastructures Ltd. is a diversified company established in 1924 and executing projects in several sectors like transport, energy and power, mining, buildings, marine and real estate etc.
MAN INFRACONSTRUCTIONS ADDRESS: Man Infraconstruction Ltd. 12th Floor, Krushal Commercial Complex, Above Shoppers Stop, G M Road, Chembur (West), Mumbai 400 089, India TELEPHONE: +91 22 2526 0582-88, +91 22 42463999 EMAIL: [email protected] WEBSITE: www.maninfra.com CONTACT PERSON: Mr. Parag K Shah DESIGNATION: Managing Director DETAILS: One of the leading company’s having expertise in industrial constructions, commercial and institutional constructions, road constructions, residential constructions and port infrastructure.
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REST OF INDIA CONTACTS
RAMKY INFRASTRUCTURE ADDRESS: Ramky Grandiose,Floor 10 & 11, Sy. Nos: 136/2 & 4, Gachibowli, Hyderabad- 500 032. TELEPHONE: +91 40 23310091 FAX: +91 40 23302553 MOBILE: +91 8978801071 EMAIL: [email protected] WEBSITE: www.ramkyinfrastructure.com CONTACT PERSON: Neeraj Srivastava DESIGNATION: GM (Business Development) DETAILS: Ramky Infrastructure Limited (Ramky Infra) is an integrated construction, infrastructure development and management company in India. Since the commencement of its business in 1994, the Company has done a range of construction and infrastructure projects in various sectors such as water and waste water, transportation (including terminals), irrigation, industrial construction (including SEZs & industrial parks), power transmission and distribution, buildings (including residential, commercial & retail property).
LANCO INFRATECH ADDRESS: Plot no. 397, Udyog Vihar, Phase-3, Gurgaon, 122 016 New Delhi Region, India TELEPHONE: +91 124 4741 000 EMAIL: [email protected] WEBSITE: www.lancogroup.com CONTACT PERSON: Mr. V Sreenivas DESIGNATION: Director- Corporate Communications DETAILS: Lanco infratech has subsidiaries and divisions across a synergistic span of vertical that include engineering, procurement and construction, power, solar, natural resources, infrastructure, and property development. Lanco infratech's projects, operational and underway are spread across India and abroad.
GMR ADDRESS: IBC Knowledge Park, Phase 2, "D" Block, 11th Floor, 4/1, Bannerghatta Road, Bangalore - 560 029, Karnataka, India TELEPHONE: +91 80 40432000 EMAIL: [email protected] , [email protected] WEBSITE: www.gmrgroup.in Infrastructure in India | 2014 ______58
CONTACT PERSON: Mr. A Subbarao , Arun Bhagat DESIGNATION: Croup CFO , Corporate Communications DETAILS: GMR Group is one of the fastest growing infrastructure enterprises in the country with interests in airports, energy, highways and urban infrastructure sectors. Employing the Public Private Partnership model, the Group has successfully implemented several iconic infrastructure projects in India.
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INDUSTRY ASSOCIATIONS AND EXHIBITIONS
BUILDERS ASSOCIATION OF INDIA www.baionline.in INDIAN INFRASTRUCTURE SHOW http://indianinfrastructureshow.com CONSTRUCT INDIA www.construindia.com EXCON www.excon.in
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BIBLIOGRAPHY
PRICEWATERHOUSE COOPERS Report: ‘Infrastructure in India’ Date: November 2008 ERNST AND YOUNG Report: ‘Accelerating Private Public Partnerships in India’ Date: 2012 FICCI (FEDERATION OF INDIAN CHAMBERS OF COMMERCE AND INDUSTRY) Report: ’Urban Infrastructure in India’ Date:October 2011 IBEF (INDIA BRAND EQUITY FOUNDATION) Report: ’Roads in India’ Date: March 2014 IBEF (INDIA BRAND EQUITY FOUNDATION) Report: ‘Railways in India’ Date:March 2014 DELOITTE Report: ‘A background paper on Infrastructure in Maharashtra’ Date: 2009 IPSOS BUSINESS CONSULTING Report: ’Understanding India's Construction Equipment Market’. Date: October 2013 TIMES OF INDIA Article: ’Urban infrastructure not keeping pace with increasing migration’ Date: April 2014 THE HINDU – BUSINESS LINE Article: ’FDI inflows into India in 2013 rose 17% to US $28 billion’. Date: January 29, 2014 DAILY NEWS ANALYSIS Article: ’India loses US $45 billion yearly due to inefficient logistics’. Date: September 18, 2010 DAILY NEWS ANALYSIS Date: July 1, 2013 Article: ‘Infra companies rope in foreign partners’ ROAD TRAFFIC TECHNOLOGY (Online Magazine) Article: ’Traficon awarded major smart intersection control contract in India’. Date: March 24, 2011 IBN LIVE Article: ’Belgium to help India modernise railway stations’. Date: August 03, 2012
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NDTV Article: ‘Experts from Belgium to develop Nagpur railway station into world class terminal’. Date: May 25, 2013 ESSAR Article: ’Essar steams ahead’ Date:July 09, 2012 SIEMENS Date: July 2008 Article: ‘Siemens bags projects in India’ PROJECTS TODAY Date: November 28, 2013 Article: ‘MMRDA signs MoU with Ney Poulissen’ WALLONIA FOREIGN TRADE & INVESTMENT AGENCY Date: 2006 Success Stories in India INFRAWINDOW NEWS BUREAU Date: November 29, 2013 Article: ‘Not waiting for Indo-EU FTA India, Belgium to jointly set up infrastructure fund’
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TOM VERMEULEN Trade and Investment Commissioner
RANJAN APTE Invest Deputy
SHERLYNN D’COSTA Trade Assistant
SOMA SENGUPTA Trade Assistant
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Flanders Investment and Trade 7th Floor TCG Financial Centre ׀ Consulate General of Belgium C-53 "G" Block Bandra - Kurla Complex, Mumbai - 400 051 ׀ ,(Bandra (E E-mail: [email protected] Website: www.flandersinvestmentandtrade.com
Disclaimer: We, at Flanders Investment and Trade have provided the information in good faith and intentions and is not a substitute for your own due diligence. Flanders Investment and Trade is not liable for any consequences arising out of the contents of this report.
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