dr. sunil mahajan, director, cidc - metamorphosis-constr-bldg-industry

8/22/2019 Dr. Sunil Mahajan, Director, CIDC - Metamorphosis-Constr-Bldg-Industry

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METAMORPHOSIS IN

CONSTRUCTION

& BUILDING INDUSTRY

by

Dr Sunil Mahajan,

Director , CIDC

28th June 2013 , Mumbai


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The construction industry is the second largestemployer in the country after agriculture and

spans across several sub-sectors of the economy.The main characteristic feature of theconstruction industry is a mix of organized andunorganized players in all sub sectors.

The Construction sector provides direct/indirectemployment to about 41 million people and isexpected to employ about 92 million persons by

2022.


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Two key sub-sectors of construction are:

(i) Buildings, falling into one of the following

categories: residential, commercial, institutional

and industrial; and

(ii) Infrastructure such as road, rail, dams, canals,

airports, power systems, telecommunication

systems, urban infrastructure including water

supply, sewerage, and drainage and ruralinfrastructure.


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Parties involved in

construction

Direct :

Owner

Contractor Advisor/Consultants

InDirect :

Specialized Service Providers Banks/Financial Institutions

Insurance Companies


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Growth in construction industry is linked to the growth in

the infrastructure sector and the building industry.

Infrastructure sector, is a major thrust area, requireshighly skilled and efficient workforce comprising of skilled

engineers, supervisors, artisans, and managers etc.

Considering present scenario, availability of human

resources in the industry having capabilities to meetrequirements of this sector is scarce.

The ambitious Physical Infrastructure development plans

present an unique opportunity, not only to escalate the

growth gradient of the National economy, but also to

provide massive employment, and thus harmonize the

distribution of wealth, thereby bringing overall prosperity.


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Impediments faced by construction industry

a) Small and medium enterprises across the country are facing anacute shortage of unskilled workers.

b) The Government support is just not available to the trainingproviders, inspite of all State Governments collecting

construction Workers Welfare cess which remains grosslyunutilized. There is no Central Plan to support this importantinitiative.

c) The National Skill Development Mission, created recently,only lends the resources, which is not a viable mode of

availing resources.

d) Formally trained & certified skilled / semi skilled labourers arenot available.


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e) There is no regulation to insist on Certification foremployment.

f) The contract Conditions being followed are notstandard & the contractual clauses are not equitable.

g) The Indian construction industry is faced with highoperation, maintenance, and financial costs but due to

some constraints there is reluctance on the part ofbanks/FIs to lend to the construction industry.

h) There is no singular nodal agency empowered by theGovernment to administer the construction activities

in the country.


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Actions to be initiated

Conceptualizing & initiating a Green rating/ marking for other sub sectorsof Infrastructure Construction (Presently such schemes are available for the

housing sector only).

Modifying syllabus & introducing mandatory Internships for the studentsof engineering at Diploma/ degree level, with a minimum duration of oneyear ( Presently such training are limited to 1 or 2 months only).

Introducing a sub trust for the Provident Fund being collected fromconstruction workers & introducing a scheme for utilization of unclaimeddeposits for the HRD of workers engaged with construction Industry. (Doesnot exist)

Introducing tax benefits for the corporate, desirous of introducing

apprentice ship/ vocational training initiatives in construction Industry.(Does not exist)

Developing & enacting an unified construction law, taking in cognizancethe existing provisions. (Does not exist)

Contd..


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Developing & introducing innovative & relevant insuranceproducts for Construction Industry. ( Mooted by CIDC but notimplemented fully)

Introducing on line dispute resolution mechanism to resolvelow/ medium value disputes at economical costs.

(UNCITRAL provides have now come in force, and soonnecessary actions would have to be taken at National level)

Introducing a Construction Guarantee Fund to enable theIndustry avail economical non-fund based guarantees. (Doesnot exist)

Introducing Housing Warranty schemes for protecting theconsumer interest. (Does not exist)


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CIDC is a not-for-profit organization and being the apex

organization is responsible to do following:

(a)To nurture human resources and build institutions.

(b) To evolve standards of Practice through joint

working (with Indian and International Standard

Organizations).

(c) To facilitate implementation of these through

demonstrable models.

(d) To undertake value based assignments to in still

good practices, thus developed.


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Measures taken by CIDC for Sustainable Build

Environment

Since its inception, CIDC is actively assisting StateGovernment, Departments, PSUs and organizations for thefollowing, to have sustainable build environment:

1. Training and Human Resource Development programs for

Senior Administrative and Technical Officers.2. Manpower planning studies / Strategy formulation including

business process reviews / Detailed Design and projectpreparation.

3. Testing, Certification and Training of Unskilled Workers

engaged in construction activities.4. Procurement Process Review and streamliningPreparation

of standard contract clauses/Works Manuals-amendment toexisting chapters and documents.

5. Development of Construction cost indices / Schedule of rates /

preparation and provision for its revision.


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6. Independent Quality Assurance of Construction

7. Project Management Consultancy

8. System for monitoring, quality checking and evaluation of

work done.9. Developed the CIDC Comprehensive Green Rating

system, which would evaluate in a Total sense i.e. takeinto account the at source pollution/ energy consumptionand away from site impacts of materials/ services used to

make the buildings Green, aspects which are grosslyunder-emphasized (but are equally important) in the existingsystems being employed.

10. Instrumental in formation of national policies relating toconstruction. As Convener of the Steering Committee of the

Chapters on Construction in 10th, 11th & 12th Plans, CIDCensures that the needs of construction industry are reflectedduring formation of Plans & Policies on Construction.

11. Organizing Seminars / Workshop for all stakeholders


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CIDC actively pursues the agenda for rehabilitation ofProjectAffected Persons and helps organizations achieve theirCSRgoals.

CIDC helps by way ofsettingup dedicated training centre tohandle Project affected persons-Train them & help them insourcing suitable employment.

Upgrade skills of existing workers & staff with in thecorporate house.

Supporting in creation of a wealth of skilled human resourcebase for the corporate & nation as a whole.

Help in building positive & long term relation with

communities. Social upliftment & Livelihood support.


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Over the years, the equipment used in construction has

improved significantly to provide better productivity, safety

and accuracy. Mechanization ensures greater efficiency

and reduces the need for skilled labour. It also enablesaccess to hazardous areas where manual intervention is

not possible. Development in this area includes:

1. Evolving sustainable construction practices;

2. Enhanced usage of precast products;

3. Close proximity radiography;

4. Concrete production and placement;

5. Earth moving and mining;

6. Automation to enhance productivity and safety;7. Facilitate availability and deployment of construction

equipment through incentives and penetration of good

practices into rural construction sector.


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Thank You

dr. sunil mahajan, director, cidc - metamorphosis-constr-bldg-industry

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