Crisis looming large in Lanka construction industry

Sri Lanka’s construction industry is now in a crisis mode, thanks to the increase of building material costs by 10 to 15 percent in the recent past owing to the depreciation of rupee against the dollar along with the hike in transport cost due to recent fuel prices increases. 

"It is sad that 90 percent of raw materials for the construction industry are being imported and the devaluation of rupee has resulted in the increase of the cost of raw material by 10 per cent to 15 per cent. In addition the recent fuel increase also adds insult to injury," President of the Chamber of Construction industry of Sri Lanka Surath Wikramasinghe said.

He said that due to the increase of construction cost would mainly affect those contractors who had already contracted at early prices, in which case they had either to renegotiate with their clients or go for litigation to avoid losses. Wickramasinghe said that contractors now had to adjust their future projects by 10 per cent to 15 percent, which was a major increase when it comes to massive construction projects in the country He said that fixed price contractors were now going through a difficulty due to the price escalations in raw materials and such contracts cover considerable number of such projects in the country. Therefore, some workable solution was needed to protect them from financial ruin.

To cushion the blow from the cost increase the Chamber was now in the process of suggesting a workable solution for the government by also taking bank interest rates also into consideration, because the most of construction projects have raised funds through bank loans, he said. Cement which was one of the main components in the construction industry has gone up price due to the increase of the dollar against the rupee. The current increase would be between Rs. 5.00 and Rs. 10.00 per bag and added that a further price hike would take place after the next consignment of cement was imported into the country, industry sources said.

According to the 2011 International Construction Cost Report, India and Sri Lanka share the 13th position for the most expensive countries in Asia to build, and are placed 55th in the World. Japan, Hong Kong, Singapore, South Korea, Macau, Thailand, China, Malaysia, Philippines, Vietnam, Indonesia and Taiwan are ahead of India and Sri Lanka.

The report released by built asset consultancy, EC Harris has named Japan, Hong Kong and Singapore as the most expensive places in Asia to build and are amongst the world’s top twenty most expensive countries.

Eagle Technosys launches tool for realty website

Php real estate script version 1.0

Eagle Technosys has launched a new tool to develop one's own real estate website.

Announcing the new script, Eagle Technosys Marketing manger, Rahul Berry, said that Php real estate script version 1.0 is ready for launch and will be available in just few days.

“Our Php real estate script version 1.0 has the world class features which can help those who want to start their own real estate website like 99acres, magicbricks  etc,” said Rahul Berry.

This real estate script has powerful features than other such tools available in the market and it is affordable too. The script has beautiful design with admin control panel so that anyone, who is technical or non technical,  can manage the site from this powerful backend. Some of the best script features are:

Frontend Features :

•   Three types of user like individual, agent/broker and builder
•   Three type of membership for every user like free, gold and silver
•   According to member type reactions on property posting and visibility
•   All type of amenities in property
•   Advance prop try shorting feature
•   Google map api
•   Real estate industry member directory like Interior decorator, Vastu consultant, architecture etc.

Admin Features:

•   Super admin for Complete control on site
•   Sub admin for site control
•   Property shorting according to member type in backend
•   Property approval system before visible on site
•   Upload a file for publicly available for download
•   Create pages
•   Mail configuration

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To send demo request,  visit Eagle technosys script official website www.eaglescripts.com or www.eagletechnosys.com.

Indian biggies jostle for coal in Australia

SYDNEY: With coal mining activities becoming more and more difficult due to increasing cost and legal wrangles, Indian conglomerates are crossing seas in search of mines and ways to bring back the raw material to produce power for the country’s energy need. Australia becomes the hottest destination for these coal hunters.

According to reports appearing in the Australian media, some of the Indian billionaires who are jostling to get their hands on Australian coal mines are GVK and Adani groups followed by Anil Ambani and Aditya Brila.

GVK Reddy-led and Gautam Adani-led conglomerates are now sparring over rights to build a $5.9 billion train track to carry coal out of the landlocked Galilee basin in Queensland state.

While they have already invested billions in various Australian coal mining projects, the names of Anil Ambani, Aditya Birla and Madhusudhan Rao are also being mentioned as emerging Indian coal barons with a presence in Australia.

Adani Enterprises Ltd and GVK Group are in the news these days in Australia as they have put forward plans to construct a 500-km railroad to connect Queensland's coal-rich Galilee Basin to the coast.

The GVK Group is partnering with Australia's mining heiress Gina Rinehart to develop a reported $10.7 billion mine, rail and port project in the landlocked northern Queensland region, a report from Economic Times quoting Australian media having said.

According to media reports, GVK has expressed confidence that its proposed railway corridor to the Abbot Point coal port will soon be given a green signal by the government as it is in the most advanced stage.

"We have everything the government has asked of us, and I don't see any reason why the government would not let us go ahead," GVK vice-chairman Sanjay Reddy said in a statement recently.

"The government has told us they are not going to select one party against another, which by implication to me means that whoever is the most advanced, if they go ahead and build it, that hopefully will be the preferred corridor. I can't think of any other way to read it," the Indian energy baron added.

The Gautam Adani-led conglomerate, on the other hand, has also submitted a $7-billion plan to build a massive coal mine in the area. Carmichael, according to one industry estimate, is expected to produce 60 million tonnes of coal and is projected to be Australia's largest coal mine.

The Galilee Basin covers more than 247,000 sq km in Queensland and reportedly contains more than 14 billion tonnes of coal.

Clive Palmer and Australia's largest coal train operator, QR National Ltd, are two other contenders for the crucial Galilee Basin railroad. The seriousness of the competition to secure the railroad can be gauged from the fact that Clive Palmer-led China First Pty is filing an $8.6 billion lawsuit against QR National Ltd.

"They are trying to steal our work and our corridor. We've just brought $8 billion in funding to the table from the Chinese government and we've been working at it for five or six years. It's a big sting," Palmer told Australian Financial Review.

"There is enormous money to be spent on connecting the mines to the port and everybody wants their own solution," Andrew Harrington, a Sydney-based resource analyst, was quoted as saying recently.

"There's been strong tension between the Hancocks (owned by G.V.K. Reddy partner Gina Reinhart) and the Clive Palmers and Adanis about where the line goes. And now QR National has come in as a fourth," Andrew Harrington added.

While all the four contenders vying to open the unexplored riches of Galilee Basin plan to construct exclusive, stand-alone rail tracks, the Queensland government is insisting on just one track to be shared by all the miners in the area.

A number of other Indian energy groups have also secured coal mining interests in Australia as they seek to feed their operating, or under-construction, power plants in India.

Bihar to house world’s largest Hindu temple

Replicating the world largest Hindu temple in Combodia's Angkor Wat, the Bihar Mahavir Mandir Trust (BMMT) has said they will build a bigger temple in Bihar's Vaishali district.

To be built at a cost of Rs 1000 million, the five-storied and 222-feet tall temple will come up at a sprawling campus spread over 15 acres at a place near Ismailpur village on Hajipur-Bidupur road, which will be christened as Angkor Nagar, BMMT's secretary and ex-IPS officer Acharya Kishore Kunal told mediapersons.

Land worth around Rs 30 crores has already been acquired for the purpose from locals, he said.

The proposed temple will be named 'Virat Angkor Wat Ram Mandir' and it will house the statues of Radha-Krishna, Shiva-Parvati, Ganesh, Surya, Vishnu and ten incarnations of Lord Vishnu.

It will take five years to construct the temple and another five years to give the final touches to it, Kunal added.

On selection of the specific site for construction of the world's largest Hindu temple, he said the place has mythological significance as it was said that the deities Ram, Lakshman and Vishvamitra had set their foot on the village and were welcomed by the King Sumati of the Vaishali kingdom.

The 'bhumi pujan' for the proposed temple will be held tomorrow, Kunal said adding the temple was being constructed to mark the centenary celebrations of the BMMTs.

Angkor Wat

The Angkor Wat temple was built in Cambodia during the rule of Cambodian king Suryavarman II in the early 12th century as his state temple and capital city. As the best-preserved temple at the site, it is the only one to have remained a significant religious centre since its foundation – first Hindu, dedicated to the Supreme God Vishnu, then Buddhist. The temple is at the top of the high classical style of Khmer architecture. It has become a symbol of Cambodia, appearing on its national flag, and it is the country's prime attraction for visitors.

Mfar Group of Hotels embarks on Rs 15 billion expansion plans

New Delhi: Mfar Group of Hotels plans to spend Rs 15 billion to build luxury hotels and resorts across India and overseas over the next five years, Abdul Rasheed, director of MFar Group of Companies, said.

"A Rs 300 crore five star hotel with 210 rooms is ready at Velachery in Chennai and will be opened by June this year and a Rs 75 crore resort is coming up at Thekkady in Kerala," Abdul Rasheed, Director of Mfar group of companies, told reporters.

These two projects form a part of the Rs 1,500 crore expansion plans, according to a media report.

Sixty cottages are being constructed at the Thekkady resort, which would be ready by this year end, he said.

The group has also begun construction of Rs 300 crore hotel in Muscat in Oman, which is expected to be completed by 2013.

There are also plans to construct hotels in Bangalore, Hyderabad and Colombo, he said.

The group's International convention centre, being run by Le Meridien here, had been adjudged the Best Hotel based five star convention at the National Tourism awards for 2010-11. The award was received by Dr P Mohammed Ali, Chairman Mfar hotels at New Delhi recently.

"Le Meridien Kochi, managed by Starwood Hotels and Resorts worldwide, as a hotel played a major role in transforming Kochi from just a tourist destination to a dominant MICE destination," Rajesh K Madan, General Manager said.

Le Meridien, a five star deluxe hotel with 223 rooms, is the first hotel in Kerala to tap the MICE business and has hosted conventions attended by 10,000 delegates and weddings.

The group had invested Rs 80 crore recently for renovation of its convention centre here.

The multi pronged Mfar group is tapping into key industries in emerging India with a slew of projects that include IT business parks, luxury hotels, commercial and Retail buildings, he said.

Hindustan Construction may opt for debt rejig

 The Rs 4,100-crore Ajit Gulabchand-controlled Hindustan Construction Company (HCC) is heading for corporate debt restructuring (CDR). In a meeting with lenders on Friday the company officials discussed about the restructuring options.

The company had an overall debt of Rs 8,100 crore, including loans of Rs 4,100 crore for itself and Rs 3,000 crore for Lavasa Corporation, at the end of the third quarter.

It has a credit line of another Rs 3,000 crore for its five road projects. Of this, it had withdrawn around Rs 900 crore, said banking industry sources.

Since the Lavasa project and some of the road projects have been stuck for over a year, the company’s cash flows are under stress.

“The company’s cash flows are less than Rs 500 crore. As a result, there is no option but to go for CDR,” said banking officials, adding the company was leveraged five-six times of its net worth. Bankers also added a consortium of over 10 banks, including state-run banks and private sector banks like ICICI Bank and Axis Bank, had lent to HCC.

The next meeting of the company with lenders is expected early next week.

A company spokesperson told Business Standard, “HCC as a prudent practice regularly engages with bankers to find long-term solutions, so that project execution does not suffer and growth is maintained.
Since HCC has a large set of bankers across India, sometimes it becomes necessary to hold all lenders’ meet to address the issues for finding solutions. HCC is focused on improving finances and shoring up balance sheet. The lenders’ meet and follow-up measures are geared in that direction.” 

Home Expo India 2012 from April 15

Home Expo India 2012 is a one-stop destination for all your sourcing needs for a variety of Housewares & Decorative products at one place. The four-day expo will be held in Delhi from April 15.

A first of its kind event in India, organised by Export Promotion Council for Handicrafts which has been very successfully organising India's largest Indian Handicrafts & Gifts Fair twice a year. As Indian Handicrafts & Gifts Fair is one stop destination for all Gifts & Accessories, Home Expo India 2012 will serve as one stop sourcing destination for global buyers for all kinds of Housewares, Home Furnishings, Home Decoratives, Furniture, Lawn & Garden, Kitchenware, Tableware Home Furnishings, textiles and Bathroom Accessories.

Home Expo India 2012 will prove to be the sourcing destination for all importers, wholesales, distributors, retail chains and specialty stores for a variety of Houseware products from India under one roof.

Fair is slated to take place at the most opportune time of the year which always attracts thousands of quality buyers to India & far east Asian countries for their sourcing needs. The show will serve as a perfect platform for the visiting buyers in the region to visit the Mega event & Explore quality Indian offerings from thousands of Indian vendors who will be exhibiting their latest products at the show just for your interest.

Organisers

Home Expo India is one of the new B2B specialised shows launched by the Export Promotion Council for Handicrafts (EPCH), India's premier export promotion body who are the organisers of the world famous Indian Handicrafts & Gifts Fair, with 7000 member exporters, EPCH is the apex body that coordinates handicrafts exports from India. It provides comprehensive information to foreign buyers on the entire range of handicrafts of India and liaisons between Indian handicrafts exporters and foreign buyers. 

More details can be obtained here:http://www.epch.in/HEI2012/index.htm