India: a land of rising opportunities

1.0

Prospect in India

1.1Indian is one of the fastest growing economy with 7.5% growth rate and is
slated to reach to 9%. Slump in Oil Prices, recent auction of coal mines,
Disinvestment in public sector has filled up the Government treasuries.
1.2In last general elections, BJP has secured a full mandate to govern the Nation
as a single party. Since than BJP is also in spree to win the provincial election
and presently ruling most of them. It has ensured stability of the government
without resorting to political compromises.
1.3 Indian Prime Minister is visiting across the world and projecting India as next
destination for business and entrepreneurship. It is attracting large inflow of
funds and investments.
1.4 Narendra Modi is known to be having a no-nonsense approach to
development. He is focusing on time bound completion of projects.
1.5 BJP Government is known for its drive for Infrastructure development and
business friendly activities.
1.6This is right time to explore and fructify the opportunities in India.
1.7This note is focused on construction business with a brief of

2.0

Opportunities,
Proposed Business Development Strategy
Indian construction market: A current tender opportunity
Opportunities
As per PWC forecast construction activities in India over next five years shall
be US$ 1 trillion. Out of it around 49% shall be in Infrastructure sector, 42% in
Real Estate and 7% in Industrial Plants.
Identified thrust points to the construction opportunities are as below
Planned expenditures in next five years in select sectors
1.
2.
3.
4.

2.1

Roads & Highways: US$ 100 B

Railways & Metro: US$ 260 B
Ports
: US$ 25 B
Smart Cities : US$ 15 B

Infrastructural Sector

2.1.1 Urban Development:

100 cities into smart cities across India with concept of modern
amenities, self-sufficiency and quality living.
Planned Government investment of US$ 15B besides private sector
investments

New Industrial cities along Dedicated Freight Corridors for MumbaiDelhi and Kolkata- Ludhiana routes with direct linkage from main
track line.
24 manufacturing cities under Make in India campaign
2.1.2 Roads & Highways
Development/Expansion of around 35000 kM of highways, State
highways etc. Present progress is about 8 kM per day and is targeted
for 50 kM/day.
Planned expenditure over next few years shall be US$ 15 Billion/year
2.1.3 Railways & Metro
A planned budget of US$ 260 billion in next 5 years
Metro service in 27 cities, Proposals for Bullet Trains
Upgradation of railways, one of largest in world
More than 100 Railway Stations shall be modernized under PPP
scheme. It shall be followed by another set of Railway stations
2.1.4 Ports , Airports, water ways
Development of 20 ports in Indian peninsula with more than 7500 km
of coastal line under Project Sagarmala with budget of US$ 25 billion
There shall also be many private ports in the chain
This will involve massive dredging works as well
About 200 airports across India mostly with PPP model
River linking and navigation schemes under garland canal scheme
2.1.5 Basic Facilities
Drinking water and sewerage: Upgradation and fresh systems
2.1.6 Environment Engineering: Sewerage Treatment plans to ensure that no
untreated water is discharged to its rivers.
2.2Infrastructure development in North Eastern India:
It has been
considered as separate because of distinct identity. The area remains less
competitive and distinct culture. Guwahati, the Assam capital is planned
developed as inter-regional hub to be linked with Bangkok through an
International Highway connecting India, Myanmar and upto Thailand. 8 cities
in North Eastern India are planned as hub cities with modern infrastructure.
Massive Infrastructure works includes Railways, Highways, and Urban
infrastructural development.
2.3Real Estate:
2.3.1 India has a population of 1.2 billion with more than 30% belonging to middle
and upper class. Estimated shortage of 20 million houses together with
necessities like commercial centers, public facilities provides excellent
opportunity for all sections of the society despite present slump trends.
2.3.2 Requirement ranges from mass economic housing to Elite residential towers,
malls public buildings etc.
2.3.3 For example Developer in Goa are planning for high ended marina along the
coastal area
2.4
Defense Sector: Along Sino India border, massive infrastructure is
initiated for execution. This comprises of Army bunkers, roads, highways etc.
It is a restricted sector with good margins. A tie up with a Public sector
company and structured approach shall provide a breakthrough

2.5
Other specialized projects: Several icon projects always remains
available in the market. For example Highest Temple of the world 200M high
is on the anvil.
2.6
Industrial Sector: With 7-8% projected growth and thrust on making
India as hub of manufacture under Make in India Program. This sector spends
7% of Indian construction industry
2.7
Power Transmission: Transmission system in India is undergoing
major change with transmission lines from 132KV to 800 KV.
2.8Leisure
2.8.1 Govt intends to open its 1000 islands for development as tourist resorts
2.8.2 India is short of Malls and Shopping centers etc especially in mid class citites
3.0
Proposed Business Development Strategy
It is proposed to start with opening of an office with development of
Business followed by tendering team. Suitable local partners may be
identified and business relationship be established. It is proposed to align
with two sets of companies.
Alignment with Quasi Government Construction and Consulting Companies.
Such move can bring closure to opportunities in Government sector in India
as well as advantage in third countries where India Government can exert
its influence. Such companies shall provide credentials and lead to
resources. Many such companies like National Project Construction
Corporation and DIMTS have been discussed informally for the purpose. At
times it may be possible to get the Government works through these
companies with out bidding.
Second Category comprises of good private sector companies which can
provide local resources and credentials. These companies shall barter
resources and networks in lieu of financial strength in implementation of
projects. These companies shall be associated for implementation. GDCL
with a large base can be a strategic partner. Few other companies like
Rahee, Valecha may also be looked upon.
Indian Construction Industry operates on the basis of Labor contractor.
Contractor provides the logistic, Tools & Plants and finances. Tie ups with
Labor contractors shall be third step and a natural follow up.
Aligning with major developers like Supertech for taking up Real Estate in
private sector
Networking for right persons at right place at different levels in political and
administrative set ups.
4.0
Nature of Indian Construction Market
A tender for development of Industrial Area for equivalent QAR 400 million
on EPC (Design & Build) basis is enclosed to understand Indian market.
Such tenders are regular features. The salient points of the works are
a. The scope of work includes Design and Build the Infrastructure Works for
Roads, Drains, Culverts, Minor Bridges, Water Supply, Sewerage, Power
systems.
b. Construction period is 3 years with 4 years maintenance
c. Tender is invited on 7th Aug and closes on 21st Oct. tender Document fee
(To be deposited at time of submission only is INR 200,000 or QAR 12000)

d. PQ requirement are
Received payments/ undertaken works during last five years for INR
14500 m ( QAR 850M) over last five years
At least one Project work of 75% and one project 100% completed
is given catagory
At least 100 engineers of role and proven capacity of D&B
Equipment more than INR 1250 M (QAR 700M)
Net worth INR 720 million (QAR 40 M)
Liquid capital and/or credit limit 50% of contract value
sound financial condition for last 5 years
e. Indian companies can be helpful in meeting part criteria, Designs and
Tendering with a competitive bid

Target meeting for interactions

Government
1. Mr Kiren Rijuju: Union Minister of State for Home and incharge of North East
Region
2. Mr Jitendra Kumar: Union Minister of state for North East and PMO (Prime
Minister Office)
3. Mr Nitin Gadkari: Union Minister for Roads
4. Mr Anupam Yadav: OSD to Union Minister of State for Home
5. Mr Mayank Agrawal; Joint Secretary to Union Minister for Roads
Companies
1. National Project Construction Corporation: It is a Central Government
Undertaking Construction company in the field of Infrastructure and
Buildings. It has an annual turnover of INR 11000 million (About US$ 200
million) and has access and credentials.
2. DIMTS: It is a Delhi State & ILFS JV consulting engineering agency. Its
connections with urban and Railways/metro shall be worth.
3. SPML: It is mid-level infrastructure company with a turnover of about INR
18000 M (US$ 300 M). It is strong in infra, water supply and readying itself for
smart cities.
4. Valecha Engineering: It is a small infrastructure list company with a
turnover of about INR 7000 M (US$ 120 M). It works in roads, bridges &
Foundation Engineering
Requirements
Company Profile
Company Vision, Targets and strategy for credentials
Company letter for request of meeting