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Builders’ Association of India
(All India Association of Engineering Construction Contractors)
Registered & Head Office: G-1/G-20, Commerce Centre, J. Dadajee Road,
Tardeo, Mumbai – 400 034 Tel : (022) 23514134, 23514802, 23520507
Fax : 022-23521328 E-mail : [email protected]
Delhi Office: D1/203, Aashirwad Complex
Green Park Main, New Delhi – 110 016 Tel : (011) 32573257
Telefax: (011) 26568763| E-mail: [email protected]
ESTD. 1941
71st
Annual Report and Accounts
2011–2012
www.baionline.in
Estd. 1941
Builders’ Association of India (All-India Association of Engineering Construction Contractors)
G-1/G-20, 7th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai – 400034 Tel: 91-22 23514134 , 23520507, 23514802 Fax: 23521328 ▲Grams: BUILDASIND
Web Site : www.baionline.in E-mail: [email protected]
N O T I C E The Seventy first (71) Annual General Meeting of the Members of Builders’ Association of India, will be held on Saturday, 29th September 2012 at 10.00 A.M. at The Taj Gateway Hotel, Banar Road, Jodhpur, to transact the following business :- 1. To confirm the Minutes of the Seventieth Annual General Meeting held on 22nd
September 2011 at Pragati Maidan, New Delhi (Minutes already circulated by ‘Indian Construction’ Journal, December 2011 issue).
2. To confirm the Minutes of the Special General Meeting held at Chennai on 30th June 2012 (Minutes printed in ‘Indian Construction’ Journal, July 2012 issue).
3. To take note of the result of BAI Organisational Election for the year 2012-13 (Enclosed).
4. To discuss and decide Constitutional Amendment (Proposed Constitutional Amendment enclosed).
5. To consider, and if thought fit, adopt the Annual Report of the Association for the year ending 31st March 2012.
6. To consider, and if thought fit, adopt the Audited Balance Sheet and Income & Expenditure Account of the Association for the year ending 31st March 2012.
7. To appoint Auditors to audit the accounts of the Association for the year 2012-13 and fix their remuneration.
8. To consider, any other item, with the permission of the chair.
ANAND J. GUPTA
HON. GEN. SECRETARY BUILDERS ’ ASSOCIATION OF INDIA
Place : Mumbai Dated: August 22, 2012 Note: Queries on Accounts and Reports should be communicated to BAI
Headquarter on or before 20th September 2012. Centres Chairmen are requested to kindly circulate this information amongst their members.
Delhi Office: D1/203, Aashirwad Complex, Green Park Main, New Delhi 110 016 ✆ 26568763 E-mail: [email protected]
Estd. 1941
BUILDERS’ ASSOCIATION OF INDIA MANAGING COMMITTEE 2011-2012
President
Shri Cherian Varkey
Vice Presidents
Shri Lal Chand Sharma Shri J.R. Sethuramalingam Shri Uttam Chand Jain Shri Ravindra Pradhan
Hon. Gen. Secretary
Shri Mahesh M. Mudda
Hon. Gen. Treasurer Shri Anand J. Gupta
Imm. Past President Shri Bhagwan J. Deokar
Trustees
Shri D.L. Desai Dr. D. Thukkaram Shri Lal Chand Ralhan Shri Mohan D. Bhate
Shri Narendra Kumar Shri P. Jayapal Shri P. Kandaswamy
State Chairmen / Co-ordinator
ANDHRA PRADESH BIHAR CHATTISGARH DELHI Shri P. Mohan Reddy Shri Manikant Shri N.R. Prasher Shri Ved Khurana
GUJARAT JHARKHAND KARNATAKA KERALA
Shri Upendra J. Barot Shri Naresh M. Singh Shri P. Subramani Shri John Paul K.
MADHYA PRADESH MAHARASHTRA RAJASTHAN TAMIL NADU
Shri Suresh Vaswani Shri Baburao L. Shakkarwar Shri Ashok Agarwal Shri M. Gopalakrishnan
UTTAR PRADESH WEST BENGAL
Shri Ravindra Tyagi Shri Pradip Kumar Mukherjee
Members Shri A. Chamaraja Reddy Shri A. Puhazhendi Shri A.N. Balaji Shri Alex Cyriac Shri Appu Wadhwani Shri Avinash M. Patil Shri Bhopinder R. Lal Shri Dilip Kumar Banerjee Shri G. Ramamoorthi Shri G. Ved Anand Shri G.C. Gupta Shri Harshad N. Bhayani Shri Iqbal Wahid Shri Jagdish M. Parekh Shri K. Annamalai Shri K. Subramani Shri K. Viswanathan Shri K.J. George Shri K.P. Baney Shri L. Moorthi Shri M. Dhandavakrishnan Shri M.M. Mohandas Shri M.S. Nandakumar Shri Mahendra Kumar Sethi Shri Mathew Alex Shri Mu. Moahan Shri N. Nagesh Reddy Shri N. Sachitananda Reddy Shri O.K. Selvaraj Shri P.K.P. Narayanan Shri P.P. John Shri Prabir Kumar Mukherjee Shri R. Ambikapathy Shri R. Ethirajan Shri R. Sivakumar Shri R.K. Jain Shri R.P. Selvasundaram Shri Ram M. Bhatia Shri S. Ayyanathan Shri S. Ganapathi Shri S. Natarajan Shri S.I. Chunkhare Shri S.K. Basu Shri S.K. Pradhan Shri Sanjay Tyagi Shri T.V. Ramakrishnan Dr. Taro T. Manghnani
Co-opted Members
Shri P.K. Ramachandran Shri K. Basavaraja Gowda Shri Vinodbhai C. Patel
Special Invitees Shri A.R. Ravindra Bhat Shri B. Chandra Mohanan Shri Basavaraj S. Totad Shri C. K. S. Panicker Shri C.H. Aboobakker Haji Shri George Thomas Shri Jacob Mathew Vellapally Shri Jignesh J. Seth Shri Joshy Chandy Shri Kapil Gupta Shri Kishor Chandrakant Joshi Shri Kishore Viramgama Shri Muralidhara Shri N.J. Mathew Shri Nitin M. Shah Shri Prem Karamchandani Shri R. Balakrishnan Shri R.D. Khandelwal Shri Ramesh Premaraj Marda Shri Sandip A. Tare Shri Sanjay Walchand Sanghavi Shri Santosh R. Navle Shri Smit Kaneria Shri Thomas Joseph Shri Uday N. Gokhale Shri V. M. Fazal Ali Shri V.S.K. Moorthy
Ref.: 635/M/2011-12 dated March 30, 2012 TO: THE TRUSTEES THE VICE-PRESIDENTS THE STATE CHAIRMEN / CENTRE CHAIRMEN THE MANAGING COMMITTEE AND THE GENERAL COUNCIL MEMBERS
Dear Sirs,
The election process for 2012-13 of Builders’ Association of India has been completed on 30th March 2012. Following are the election results: - President : Shri B. Seenaiah
[A.P. (Hyderabad) Centre]
Vice Presidents : 1. Shri Ravindra Pradhan (Jharkhand (Ranchi) Centre)
2. Shri D.C. Awasthi (Kanpur South Centre)
3. Shri K. Viswanathan (Coimbatore Centre)
4. Shri Ranjeet More (Pune Centre)
Hon. Gen. Secretary : Shri Anand J. Gupta
Hon. Gen. Treasurer : Shri Mahesh M. Mudda State Chairman (Andhra Pradesh) : Shri P. Mohan Reddy (A.P. Hyderabad Centre)
State Chairman (Chattisgarh) : Shri Lalit Kumar Oswal (Durg Bhilai Centre)
St. Co-ordinator (Delhi) : Shri Arun Sahai (Delhi Centre)
State Chairman (Gujarat) : Shri Bhupesh P. Shah (Vadodara Centre)
State Chairman (Jharkhand) : Shri T.C. Mohanty (Jamshedpur Centre)
State Chairman (Karnataka) : Shri V. Srinivasa Murthy (Karnataka Bang. Centre)
State Chairman (Kerala) : Shri Alex P. Cyriac (Thripunithura Centre)
St. Co-ordinator (Madhya Pradesh) : Shri Suresh Vaswani (Bhopal Centre)
State Chairman (Maharashtra) : Shri Manoj L. Potekar (Baramati Centre)
St. Co-ordinator (Rajasthan) : Shri Ashok Agarwal (Rajasthan (Jaipur) Centre)
State Chairman (Tamil Nadu) : Shri Mu Moahan (Southern (Chennai) Centre)
State Chairman (Uttar Pradesh) : Shri R.P. Gupta (Moradabad Centre)
State Chairman (West Bengal) : Shri G.C. Gupta (Eastern (Kolkata) Centre)
: 2 :
Members of the Managing Committee representing Centres:
1. Shri M. R. Navaneethakumar 2. Shri G.M. Ravindra 3. Shri D. Kempanna 4. Shri Avinash M. Patil 5. Shri Bhopinder R. Lal 6. Shri K. Annanalai 7. Shri Abhay Garde 8. Shri R. Murugan 9. Shri S.D. Kannan 10. Shri K. Lava 11. Shri M.A. Jesurajarajan 12. Shri K. Subramani 13. Shri A. Chamaraja Reddy 14. Shri M.S. Nandakumar 15. Shri R. Ethirajan 16. Shri M. Dhandavakrishnan 17. Shri Nimesh D. Patel 18. Shri Y. Ishwar Rao 19. Shri N.R. Prasher 20. Shri Ravindra Tyagi 21. Shri D.R. Sekar 22. Shri K. Sriram 23. Shri Jagdish Parekh 24. Shri K. Rajavel 25. Shri Baburao L. Shakkarwar 26. Shri K.P. Baney 27. Shri Ram Janam Singh 28. Shri Harkant G. Vachharajani
Members of the Managing Committee representing Patron Members:
1. Shri S.K. Pradhan 2. Shri Prabir Kumar Mukherjee 3. Shri Lal Chand Sharma 4. Shri K. Basavaraja Gowda 5. Shri C. Devarajan 6. Shri V.S. Selvaraaj 7. Shri R.P. Selvasundaram 8. Shri L. Moorthi 9. Shri N. Raghunathan 10. Shri R. Sivakumar 11. Shri J.R. Sethuramalingam 12. Shri O.K. Selvaraj 13. Shri S. Ganapathy 14. Shri K. John Paul 15. Shri H.N. Vijaya Raghava Reddy 16. Shri N. Sachitananda Reddy 17. Shri V.S.K. Moorthy 18. Shri M.M. Mohandas 19. Shri Pratap Salunkhe 20. Shri K.J. George 21. Shri S.I. Chunkhare 22. Shri Mohan Katariya 23. Shri Harshad N. Bhayani 24. Dr. Narendra D. Patel 25. Shri Ram M. Bhatia
Members of the Managing Committee representing Affiliated Associations:
1. Shri R. Parthiban 2. Shri Vinod C. Gamdiwala Trustee’s Representative to the MC Dr. D. Thukkaram
The new office bearers will assume charge of their respective offices with effect from 1st April 2012 for a period of 1 year as per the BAI Constitution.
Thanking you, Yours faithfully,
RAJU JOHN RETURNING OFFICER
BAI ORGANISATIONAL ELECTIONS 2012-13
Item No.4 Proposed Constitutional Amendment
Background on the necessity of constitutional amendment. You all agree that, BAI for the last 70 years are doing yeoman services for the contractors’ fraternity through its Headquarter as well as through Centres. Many of our Centres become fully grown establishment with Secretarial set up and own office. With passage of time there is a paradigm change in the activities of BAI also. Of late, most of our Centres have started holding Seminars, Exhibitions, Training of Construction Workers, Regional Meetings, All India Builders Conventions etc. etc. making huge surplus. It is also a fact that, most of the Centres normally shares the surplus with the Headquarter as per the Rules laid down in the Constitution.
The Managing Committee Meeting held at Hyderabad on 12th May 2012 discussed about the surplus generated by many Centres and felt proportionate income is not shared by the Centre with the Headquarter, particularly while sharing the surplus generated out of “All India Builders’ Conventions”. Members present then felt that, BAI Rules have to be amended in such a way that, Headquarter’s income should be linked with the Registration fee of the delegates who participate in the Convention. Members also felt this practice is normally followed by International Organisations like IFAWPCA, which charges 30% of the Delegate fees. It is in this regard that the following amendment is proposed for members’ consideration. Existing Clause Proposed Clause 35.0 Sources of funds of the Association 35.1 The funds of the Association may be raised by:
(a) Loans (with or without interest)
(b) Deposits
(c) Donations
(d) Subsidies
(e) Grants
(f) Membership subscriptions
(g) Contributions, etc. Centres which conduct All India Builders’ Convention (with or without exhibition) should contribute a minimum of Rs.1,00,000/- (Rupees One Lakh Only) to Head Quarter within three months of the sanction of holding such Convention. The concerned Centre shall submit the audited accounts to the Association within six months of holding the Seminar or any other programme. Deposits and loans may be received from members and non-members, such as, Banks, Associations, Central or State Governments, Local Bodies, Corporations and from such other agencies and individuals at any time for such period and at such rate of interest and upto such an amount as may be determined by the General Council from time to time. [Amended as on 05.12.02 by the Special General Meeting held at Mumbai]
35.0 Sources of funds of the Association 35.1 The funds of the Association may be raised
by:
(a) Loans (with or without interest)
(b) Deposits
(c) Donations
(d) Subsidies
(e) Grants
(f) Membership subscriptions
(g) Contributions, etc. Centres which conduct All India Builders’ Convention (with or without exhibition) should contribute a minimum of 30% of the Delegate fees levied by the Centre on member and non member delegates. The concerned Centre shall submit the list of delegate to the Headquarter along with the Cheque for the respective amount within one month of the completion of such Convention.
Item No.5
Report of the President and Managing Committee of Builders' Association of India for the year 2011-12
Friends, The President and the Managing Committee have great pleasure in presenting the 71st Annual Report of the Association along with the Statement of Accounts and the Auditors’ Report for the year 2011-12. CONSTRUCTION INDUSTRY – A PERSPECTIVE Construction Sector emerged as very important part of economy especially when providing better physical infrastructural facilities for faster economic growth is leitmotif. Construction Sector accounts for nearly 45% of total planned investment and is second largest employer after agriculture. During XIth Five Year Plan period (2007-2012) it contributed 7.03% to GDP as per Table A below:
Table A Macro
variable 2007-
08 2008-
09 2009-
10 2010-
11 2011-
12 GDP from construction (at constant price) in Rs. Cr.
315389 332557 355918 384629 410653
Share of construction in GDP in percentage term.
8.1 8.0 7.9 7.9 4.8
Growth rate of construction sector.
10.7 5.4 7.0 8.1 6.2
Gross capital formation in Rs. cr.
115157 88523 86290 98426 N.A.
Source : Handbook of Statistics. R.B.I. 2010 upto 2010-11. Central statistical organisation’s estimate realsed in February 2012 for 2011-12. GCF from Economic Survey 2011-12.
Construction Industry being an important indicator of growth and development as it creates investment opportunity and increases production capacity across various related sectors. The Sector is labour intensive and including indirect jobs provides employment to around 33 million people. It is estimated that about 70% of these are employed in infrastructure and remaining 30% in real estate segment. Industry is expected to generate additional employment of 47 million people with total number employed in the sector reaching to 83 millions by 2022. After sector
was given Industry status in 2000, there have been more initiative by government to undertake project on PPP basis. FDI upto 100% under automatic route is allowed in townships, housing and built-up infrastructure. Construction sector is fragmented and in unorganised sector. However with more emphasis on infra sector, many industrial houses have entered this sector. At last count there are about 67 listed construction companies on Mumbai stock exchange. Planning Commission has taken initiative in creating model engineering – procurement construction (EPC) contract document. Estimate shows that for every rupee invested in construction sector 78 paise gets added to GDP. Construction sector including housing and infrastructure attracted approximately 1.42% of total Bank credit during first four years of plan period. It also attracted F.D.I. of approximately 9417 million U.S. dollars during first four years of plan period as shown in Table B below : (Amount is in million).
Table B
2007-08 2008-09 2009-10 2010-11 Gross Bank non food credit.
2204801 2601825 3040007 3667354
Bank credit to construction sector.
27945 38505 44219 50135
Percentage Share
1.3 1.5 1.5 1.4
FDI in dollar.
1743 2028 2852 2294
FDI in Rupees.
6989 8792 13469 10822
Source : 1) Bank credit from RBI’s Annual Reports 2)
FDI from DIPP, Ministry of Commerce upto August 2011. From August 2011 to March 2012 estimated by BAI.
During 2011-12, construction activity slowed down considerably as can be seen from slowing down of growth rate from 8.1% achieved in 2007-08 to 6.2% in 2011-12 primarily due to slowing down of announcement of new projects both in public and private sector. Awarding of Highway work though has picked up off late but has not reached to desirable level. Seaport projects awarding came to a virtual halt. Apart from slowing down of tender awarding process environment problems stalled execution of projects. As on September 2011, the quantum of stalled projects due to delay in decision making was at Rs. 4.17 trillion. Irrigation sector has maximum
stalled project at 88% followed by power at 86%, mining at 49% and than real estate. Apart from this construction companies have suffered payment delay from client resulting in elongated working capital cycles. This is coupled with increase in input costs and labour cost. It has affected their operating profit margin whereas higher borrowing cost has affected their net profits. Another noteworthy development during plan period is arbitration claims amounting to Rs. 11084.53 crores covering 1635 cases awarded by Arbitrator in favour of Highway contractors. All this awards were challenged by NHAI and are pending in various High Courts. Despite acceptance of B.N. Chaturvedi Committee’s recommendation for one time settlement on certain conditions though approved by Ministerial committee on infrastructure, payments to contractor has not been realeased as on March 2012. This is also one of the reasons as to why borrowings of construction companies have increased. Construction Industry is not fixed capital intensive but is working capital intensive with high payment receivable risk. Approach paper to XIIth Five Year Plan (2012 -17 ) envisages Rs. 50/- lakh crores i.e. U.S. one trillion dollar Investment on Infrastructure. Assuming construction intensity of 50 to 55%, this theoretically transalates in to Rs. 25.00 lakhs crores opportunity for construction sector. Private sector is supposed to contribute 50% of the same. In order to achieve the set targets of 9% economic growth rate, Construction Industry need to grow at 1.30 times GDP growth rate which works out to 12% growth during plan period against 7.50% achieved during XIth plan period. This seems to be very tall order. Construction sector need to scale up its asset building capacity to more than double. One major development during XIth Plan period was transformation from Engineering Procurement Construction (EPC) contractor or cash and carry contractors to that of enterprenures in Built-operator Transfer (BOT) model or Public Private Partnership system of infrastructure creating facility. This model is highly capital intensive. BOT operator has to invest entire project cost partly by equity but mainly by debt/loan. BOT model apart from being capital intensive has a long gestation period. Before money starts coming in from toll revenue. It take almost first 10 to 12 years of tolling revenue to meet interest and repayment liability. On top of it, many of BOT contractors have started offering upfront money called “negative grant” to N.H.A.I. or share certain percentage of tolling revenue for securing four lane or six lane high density corridor highway corridor. As a result the cash flow and debt coverage indicators of most companies are under pressure. On account of higher debt levels and moderation in revenue growth suppressed profitability. There are few cases as on date in which cycles of first 10 to 12 years is
completed and inflow of tolling revenue is boosting up companies profit and return on investment in showing upward trend. There is hardly any special Purpose vehicle (SPV) company listed on stock exchange after completion of infrastructure work to find out the market value of such shares. In view of this peculiar situation stock investing class is not favouring investment in listed construction / infrastructure companies. Such apathy of investor class limit scope of raising fund from capital market. Construction Industry will have to come out with innovative way to ensure that share investing class prefers making investment in construction sector’s shares. Two other major issues confronting Construction Industry are stalled highway, housing and other infra project due to policy of Ministry of Environment & Forest. Higher economic growth necessitates better road, and rail connectivity. It plays very important role in transporting minerals / raw materials from mines to factories and then to users. Coal, iron ore and lime stone mines in majority of cases are located near environment sensitive areas nullifying any development activity due to “go” and “no go” policy of Ministry. It is high time government come out with a coherent policy for allowing road / rail connectivity through these areas. If this is not done then a stage might come soon when other than phases I and II of National Highway Development Projects will be stalled. Classic case is 19 km stretch of N.H. 37 between Guwahati to Sonpur started in September 2005 is yet to be completed due to non clearance of Environment Ministry. Another worrying factor is inordinate delay in getting clearance from Environment Ministry for large housing projects. It is not understood as to the relationship between environment and large housing projects which are located near urban areas. There is urgent need to do away with by Environment Ministry to publish prohibited areas for housing development and also do away with clearance of Ministry. Demographic dividends cannot be taken for granted unless country has required number of skilled or vocationally trained personnel. With successful implementation of NAREGA Construction Industry is facing shortage of migratory skilled and unskilled workers. According to Naukri.com country produces 750000 engineers annually but only 25% are employable. Rest of Engineers need to be given in house training or go through orientation course to familiarise with site Working Condition. Survey amongst recruiters revealed that 61% of construction entities are not happy with new recruits. As the size of each project is getting bigger and completion period shorter, this will necessitate extensive mechanisation and employment of skilled personnel at all level for timely completion. Industry need to participate wholeheartedly in skill development programme of Government of India.
BAI @ PLANNING COMMISSION
Providing inputs in formulation of XII Five Year Plan
In the context of formulation of XII Five Year Plan, Planning Commission formed a ‘Steering Committee on Construction’ on 4th August 2011. Composition of Steering Committee is as follows:-
1. Dr. Arun Maira – Member (Industry) Planning Commission
- Chairman.
2. Dr. Manoj Singh –
Advisor (Transport) Planning Commission
- Member.
II. Director General
C.P.W.D. - Member.
20. President BAI - Member. 19. Director & CEO – L&T
ECC(wing) - Member.
25. President CREDAI - Member. 30. M.D. Simplex
Infrastructure Ltd. - Member.
31. Dr. P.R. Swarup
D.G.C.I.D.C. - Convenor.
Steering Committee in turn have formed six working groups viz.
1) Regulatory Framework, including self
regulation & issues leading to time & cost overruns.
2) Procurement & Dispute Resolution System. 3) Human Resource Development. 4) Institutional Financing Working. 5) Quality, Standards & Environmental
working issues. 6) Research & Development.
BAI President Shri Cherian Varkey has also been appointed as Joint Chairman with Director General C.P.W.D. of Procurement & Dispute Resolution System. First Meeting of this group held on 1st November 2011 at Delhi. Following agenda items were discussed:-
a) Vision for Procurement System & Dispute
Resolution System.
b) Thrust areas for 12th Plan.
(i) Standardization of Bidding & Contract
Document for each sector.
(ii) Procurement issues at National and
International trade issues.
c) Vision for Regulatory Frame work.
d) Time and cost overruns.
e) Construction Law.
f) Self Regulation.
Meeting was attended by Shri D.L. Desai (Shankarbhai), Shri Raju John Executive Secretary, Shri H.S. Pasricha, S.S. Arora Excutive Officer from BAI, Shri Rajiv and Srinivasan from C.F.I., L&T, C&C Construction, Bhasin Bros, Shri Ghosh from B.G. Shirke and others. BAI President in the meeting observed shortage of skilled people. He emphasized need for mandatory skill training by construction entities to meet shortage. This is practiced by IT/ITES industry to meet shortage of skilled personnel. He suggested that there should be six months internship for all engineers by way of site training before certificate is given to them, on line of what is followed by medical council. This suggestion is made because engineers passing out of colleges are not employable and needs orientation. There is a crying need for use of alternative construction material such as “sand and coarse aggregate from construction waste” instead of exploiting natural resources. Government & Industry need to come together to fund research on this subject. He observed that with increased mechanization different type of machine operators are being employed on construction site. Unfortunately there is no licensing system or training courses for such machine operators save and except certain machinery manufacturers. There is need for licensing system like automobile as well as training course for machine operators. On avoiding time and cost overrun Dr. P.R. Swarup observed that work authorities need to follow standard operating procedure and standard works manual such as adequate infrastructure is placed and land is in possession invitation of tender. He observed that labour camps and work site offices are of not desired standard. It is therefore necessary to include provision of labour camp and work site offices in bill of quantity. He impressed that there are an number of laws applicable to construction as such first need is to have comprehensive “Construction Law” in place. Dr. Swarup observed that present Arbitration System need to be changed. Arbitrators need not be appointed by parties to the dispute, Instead Arbitration should be institutionalized by authorised institution as is done by Singapore Arbitration Council. He also suggested that bulk of Construction Industry being in unorganized sector rating of construction entities be insisted upon by work authorities.
Housing Opportunity According research by McKinsey Global Institute’s (MGM) research papers it took 40 years till 2008 for the urban population to rise by 230 million, but it will take half the time to add next 250 million people. This is born of the fact that in 2001 census only 285 million people i.e. at present 28% of population lives in urban areas which is expected to rise to 40% by 2030. By that time i.e. 2030 country’s population is expected to be around 1500 million and therefore urban population will be around 600 million. This means that country needs to provide shelter / housing to 320 million i.e. 32 crores (600 million minus 285 millions) which on the basis of 4 persons per family would work out to construction of 8 crore additional houses to settle this urban migration. This requirement of houses is in addition to 24.71 million units required at the beginning of XIth Plan. Rising income of nuclear families coupled with GDP growth rate of more than 9% will expand middle class, who even otherwise in turn will create demand for housing. By 2030, India’s cities will likely to account for 70% of GDP, generate 70% of net new jobs created, drive an almost four-fold increase in nation’s per capita income and contribute 85% of tax revenue as per MGI’s research report. At present 42 cities have a population of one million plus, expected to increase to 68 cities. Country in order to cope with such demand need to create more than 100 cities like Lavasa in next twenty years besides expanding present cities. Country will need as much as 1.2 trillion US dollar being capital investment by 2030 to cater to an estimated 590 million people who will be living in Urban areas. Country will have to provide 700-900 million sq.mts of commercial and residential space to be built every year for next 20 years. It will need 2.5 billion Sq.mts. of Urban roads to be paved, i.e. 20 times the capacity added in the past decade. These cities will need 7400 km of metros and subways to be constructed. In addition to Lavasa, Greenfield city of 300 sq.km in area is planned at Dholera near Ahmedabad. This new city will be connected to National Highway No.8E. Other Greenfield cities planned are at Manesar-Balwal in Haryana, one between Indore-Mhow in M.P. and one near and around Dighi Seaport in Maharashtra. All these cities are along route to Delhi-Mumbai Industrial corridor. Construction Industry will have it’s hand full for next twenty years in coping with massive housing requirement. It will change present cast-in-situ construction practice by replacing it with large scale ready made built-up building components such as wall, slab, columns etc. to finish colonies and townships. PUBLIC -PRIVATE PARTNERSHIP (PPP) PROJECTS India today has 337 public-private partnership (PPP) projects in infrastructure, accounting for $ 124 billion in investments, which places it among the first five developing countries by the number of projects and
magnitude of investment. But do these PPPs provide value for money to the government or they are merely moving liabilities into the future? Value for money to the government is ascertained by comparing the projects’ discounted whole life cost with the counter-factual – the discounted whole life cost of conventional procurement. The two main methods for implementing ‘build, operate and transfer’ road projects in India are BOT (annuity) and BOT (toll). The difference between the two relates to the allocation of traffic risk, which is assumed by the government in ‘annuity’ projects, while it remains with the concessionaire in ‘toll”. In ‘annuity’ projects, construction, operation and maintenance of roads are done by the concessionaire who gets annuity payments determined by competitive bidding to recover his investment. Annuity payments are borne by the government through deferred budgetary expenditure and the concessionaire receives a fixed sum directly from the contracting agency, National Highway Authority of India (NHAI), biannually. In ‘toll’ projects, investment is recovered through toll revenues, and budgetary support is restricted to an upfront grant to the concessionaire, upto a maximum of 40% of the project cost.This upfront grant compensates the concessionaire for undertaking projects that are economically viable but fall below financial viability threshold.
SKILL DEVELOPMENT – A CHALLENGE AND
OPPORTUNITY Economic growth came down to 6.70% in 2008-09, increased in 2009-10 to 7.40% from earlier average 9% growth during 2005-08 period. G.D.P. is expected to be 8.80% in 2010-11 and likely to grow at more than 9% thereafter. Economic think tank of Government rightly felt that transition to double digit growth in economy is not going to be a smooth ride and happen automatically. As thing stands, what can thwart high economic growth is shortage of skilled personnel across all industrial segment and at all level. A World Bank study states that India is staring at a labour crisis in the construction sector. Although no formal figures are available, informal inputs from the industry estimate shortage of labour at approximately 30%. The supply of skilled and semi-skilled workers will barely keep up with the pace of growth and will fall short by 18-28% under medium growth scenario. However, under a high growth scenario, the shortage will be to the tune of 55-64% over the next eight years. According to Shri Taikant Singh, number of skilled workers available in Construction Industry at present is believed to be nearly 0.8 million. Construction Industry employed 22,41,000 people in 1995 increased to 31,46,000 in 2005, however ratio of skilled workers has gone down from 15.34% to 10.57% during 1995 – 2005
period. Construction Sector is expected to totally employ 83 million workers by 2022 as per table below:-
Table Projected Human Resources Requirement (2008-
2022) (figures in’000’)
Sector 2008 2012 2018 2022 Incremental Infrastructure 25177 33868 48280 58289 33111 Real Estate 10790 14515 20692 24981 14191 Total 35968 48383 68792 83270 47302 The total incremental requirement of 47302000 is break up for different category is as follows:- Profile of People Incremental
Requirement Bar Benders Masons Plumbers Carpenters Surveyors Others (including quality glazing workers, painters, equipment operators). Minimally educated.
1419000 1419000 1183000 1892000
47000 459000
38038000
Total 47302000 Government on its part is doing its best to tackle this problem. In budget 2006, the Finance Minister came out with a proposal that, out of 4000 or odd Industrial Training Institutes (ITI) across country though owned by Government of India but run by State Governments as centrally funded project, offered to give identified 1400 ITI for adoption by private sector on PPP basis. Private Sector partners were supposed to retain existing faculty and courses which will continue to be funded by Government. However they can start new industry related courses and charge market fee as well recruit new faculty at mutually agreed salary. They were to get Rs. 2.5 crores interest fee loan to be paid back between 11th to 20th years. Many trade Association and companies have adopted all the 1400 ITI’s. In another path breaking initiative in skilling India is the formation of National Skill Development Corporation (NSDC) by Government of India. This was first announced by Finance Minister Shri Pranab Mukherjee in Budget 2009. It was established soon thereafter as a nodal agency to coordinate and shape training initiatives in India. Skill development has emerged as one of the biggest challenges or one of the biggest opportunities for the country. There are millions of students who have the classroom knowledge but are unemployable because they lack specialised and soft skills. A few million join them, year after year, blunting India’s ‘demographic advantage’. The skill gap is a major challenge for an economy that wants to grow at more than 9% a year for a long time to come. A study by ICRA Management Consulting Services projects an incremental demand of 240 million workers in 21
critical economic sectors in 2022. NSDC’s target is to train 150 million over 10 years, for which, it has estimated that it will need Rs 15,000 crore. NSDC solicits training proposals from the private sector. Construction Industry is feeling shortage of engineers, supervisors, carpenters, masons, bar benders, crane and machine operators since last two to three years. In some cities it faced shortage of even unskilled workers as result of successful implementation of National Rural Employment Guarantee Scheme. This has reduced migration of surplus farm labour normally engaged in construction sector. Shri Arun Maria, Member, Planning Commission feels that organized industry at present creates one million jobs but need to create eight million jobs in next couple of years says upto 2022. If country has to exert it’s demographic might on economic front, it will need to create 240 million skilled people by 2022. Shortage of skilled personnel across all sectors prepared by National Skill Development Corporation is given in table below: Sr. No.
Name of Industry
Incremental demand in
million 2022
Remarks
1 2 3 4 5 6 7 8 9 10
11 12 13 14
15 16 17
18 19
20
Informal Employment Sector Auto and Auto components Building and Constructions Textile and clothing Transportation and logistics Organized Retail Real Estate Services Healthcare Food Processing Education and skill development services IT and ITES Gems & Jewellary Leather goods Banking and Financial Services Tourism and Hospitality Furniture and furnishing Electronics and IT hardware Media and Entertainment Chemicals and Pharmaceuticals Constructions Material and building hardware
37.6
35.0
33.0
28.2 17.7
17.3 14.0 12.7 9.3 5.8
5.3 4.6 4.6 4.2
3.6 3.4 3.3
3.0 1.9
1.4
Out of Country’s total population of 1.2 billion, 674 millions are in age group at 18-59 years called working age population which is going to increase to 793 million by 2022 when country’s population will be about 1.4 billion. Similarly elderly population i.e. above 59 years will increase from 98 million to 143 million by 2022, whereas kids population would marginally increase from 404 million in 2010 to 417 million by 2022. Shortage in construction sector is second highest, leaving informal sector.
TOTAL 240 Million
NSDC solicits training proposals from the private sector. It enters into joint venture with companies and provides them with funding to set up training facilities. The funding is primarily in the form of soft loans at interest rate of 6-10%, having tenure of two to three years. In select cases, NSDC also gives grants or invests in equity. So far, NSDC has funded four JVs, with a combined training capacity of 1.5 million over 10 years, to the tune of Rs 65 crore. It has approved another 12 proposals — 10-year training target of 20 million and funding of Rs 364
crore. Private companies are warming up to the idea. NSDC receives about 15 proposals a month and is working with Industry Associations to set up skill councils to assess personnel demand and training requirements in their respective sector. Recently, NSDC approved the first automobile skill council, headed by SIAM. The Government is establishing 1500 new Industrial Training Institutes and 5000 Skill Development Centres in backward areas to give the large unskilled workforce access to mainstream job markets. M EETING OF NATIONAL SKILL DEVELOPMENT
COUNCIL FOR FORMATION OF SECTOR SKILL COUNCIL FOR CONSTRUCTION SECTOR. National Skill Development Corporation (NSDC) convened a meeting on 3rd June 2011 in New Delhi with the objective of discussing and evolving a consensus amongst the concerned stakeholderstowards formation of Sector Skill Council (SSC) for Infrastructure and Building Construction Sector. As per the provisions of National Skill Mission and the mandate of Government of India, the NSDC shall be setting up the Sector Skill Council for all Sectors in the country. The aim of the meet was to discuss the challenges of skilled manpower in the infrastructure and building construction sector which after agriculture is the largest employer. It was also discussed how would setting up a Sector Skill Council assist in resolving the issue. As per NSDC, Sector Skill Councils are:- � Sector Skill Council are national partnership
organizations to bring together all the stakeholders – industry, labour and academia in order to manage the talent challenges in India.
� These Councils address all human resources and skill issues relevant to that particular sector. They are created by the industry, comprise of industry staff, and work for the industry.
� The Councils’ primary function is to project sector specific skill shortage, and address other key issues affecting manpower requirements by finding solutions in a collective, collaborative and sustainable manner.
Functions of an SSC:- • Research labour market information to provide
industry with accurate real time imputes.
• Develop the delivery mechanism for industry relevant training
• Set up Standards and QA to bring global best practices in industry.
Following officials of the NSDC were present on the dias:- • Shri Dilip Chenoy, MD & CEO • Shri Krishan Kalra, Member Proposal approval
Committee. • Shri Basab Banerjee, Standards &QAS. • Shri Jaikant Singh, Head-MIS & Monitoring. The meeting was attended by the representatives of various professional bodies / associations / bodies imparting training / construction companies / construction workers unions etc. BAI was represented by Shri Raj Pal Arora, Hon. Secretary, BAI Delhi Centre & Co-Chairperson, Skill Development Committee and Shri Satnam Singh Arora, Executive Officer, BAI Delhi office. After due deliberations and listening all present there, there was unanimity amongst all for creation of the Sector Skill Council for the Construction / Infrastructure Sector. A Working Group has been formed for the creation of Sector Skill Council for the Construction Sector. Shri J. Ganguly (retired from L&T) is the Chairman of the Working Group, Shri Raj Pal Arora, BAI is the Co-Chairman and Siddharth Singh, Secretary General, CFI is the Convenor of the Working Group. The Working Group has been given the time of one and half month and if all things go well, they will submit their report to the NSDC in the second half of July 2011. CEMENT CARTEL CASE FILED WITH COMPETITION COMMISSION OF INDIA Builders’ Association of India have filed a complaint with the Competition Commission of India (CCI) against the Cement Manufacturers Association & various cement companies, about the unfair trade practices / indulging in cartelasiation thus pushing up the price of cement, vide Case No.29/2010. The Commission issued Notice vide File No.1(29)/2010-Sectt. dated 23.12.2011 - Case No.29/2010 forwarding therewith a copy of the investigation report (non-confidential version) submitted by the Director General for filing the response / objections (in 10 copies), if any, within two weeks of the receipt of the letter. The Commission also directed the parties of both sides to appear before the Commission for oral hearing, if they so desire, either personally or through their authorized representatives on 17.01.2012 & 18.01.2012 at 10.30 A.M. Complete case papers received in the office were forwarded to M/s. Seth Dua & Associates for making the replies. As per the information gathered, replies / objections, on behalf of BAI were submitted. Accordingly, the case came up for hearing before the Commission on 17th January 2012, before the full
bench. On behalf of the BAI , Shri O P Dua, Senior Advocate, Shri Rahul Garg & Ms. Anu Monga, Advocates from Seth Dua & Associates-Advocate on records for the above mentioned cases, and Shri Satnam Singh Arora, Executive Officer, Delhi Office were present. Also there were 75-80 advocates present, representing the CMA and other cement companies to whom the notices were issued by the CCI. Advocates pleaded before the Commission for making available the soft copy of investigation report along with its enclosures or the hard copy with all colour pages / figures / graphs etc. to enable them to understand the same in the right prospective and file their objections etc. because it is not possible for them to understand it properly from the black & white / photocopy set of the investigation report made available to them. After hearing almost the identical / same requests, the Commission passed the order as conveyed to BAI vide their letter / File No.1(29)/2010-Sectt/1101 dated 23.01.2012 which is reproduced below :- “The Commission considered the matter in the ordinary meeting held ;on 17.01.2012. 2. After considering the request of the parties, the Commission decided to extend time up to 14.2.2012 as last opportunity for filling their response/objections (both in hard copies and soft copy), along with profit & loss accounts and balance sheet of their enterprise for last three years, and to give oral hearing to the parties, either personally or through their authorized representative on 21.02.2012, 22.02,2012 and 23.02.2012. It was made clear to the parties that no further extension of time will be granted in the matter and no adjournment of hearing argument will be granted. The parties shall file sufficient number of soft copies of reply so that a copy each may be given to other opposite parties as agreed by the parties during hearing. 3. As a response to the DG Report has already been filed on your behalf, you may appear for oral hearing either personally or through the authorized representative on 21.02.2012, 22.02.2012 and 23.02.2012 at 10.30 A.M.” The Commission held its meeting on 21st, 22nd & 23rd February 2012 at its office in the Committee Room, Hindustan Times House, 7th Floor, 18-20, Kasturba Gandhi Marg, New Delhi-110001 which was attended by the representatives of the informant i.e. BAI as well as the opposite parties, by the representatives of the companies & their Lawyers/Senior Advocates etc. as detailed below :-
Builders’ Association of India - Shri O P Dua, Sr Advocate - Informan t Shri Rahul Garg & Ms. Anu Monga (M/s Seth Dua & Associated)
Shri D L Desai, Trustee Shri S S Arora, Ex Officer, Cement Manufacturers’ Association (CMA) - Opposite Party (OP) No.1
Associated Cement Company Ltd (ACC) - OP No.2
Ambuja Cement Ltd. (ACL) - OP No.3
Grasim Cement - OP No.4
Ultratech Cement Ltd. (UCL) - OP No.5
Jaypee Cement Ltd. (JAL) - OP No.6
India Cement Led - OP No.7
J. K. Cements Ltd. - OP No.8
Century Cement Ltd. - OP No.9
Madras Cements Ltd. - OP No.10
Binani Cement Ltd. - OP No.11
Lafarge India Pvt. Ltd. - OP No.12
Opposite Party No.1 i.e. Cement Manufacturers Association (CMA) was asked to give its presentation in the last. M/s. Associated Cement Ltd. (ACC), Ambuja Cement Ltd. (ACL) and Ultratech Cement Ltd.(UCL) made their oral presentations, through their lawyers / senior advocates, on 21st February 2012, defending the charges of indulging in unfair trade practices / cartelization etc. and other issues as brought out / reported by the Director General Investigation in its Investigation Report. ACC & ACL stated that they have resigned from the membership of CMA and they have attended only two meetings of the CMA where the issues of excise duty etc. were discussed and the charges of cartelisation leveled against them are biased / ill conceived. Though they are operating in more than one region but they never indulge in the so called cartelisation as the price of cement is determined by the market forces. M/s. Grasim Cement, M/s Jaypee Cement Ltd., M/s India Cements Ltd, M/s. J K Cement Ltd., M/s. Century Cement Ltd, M/s. Madras Cements Ltd., M/s. Binani Cement Ltd., M/s. Lafarge India Pvt. Ltd. & Cement Manufacturers Association made their presentation, through their lawyers / senior advocates, on 22nd February 2012. These companies are having the market share of 3 to 5 % and are operating in a particular region / area and their representatives were all the way pleading either of following the price trend of the major cement manufacturers and not indulging in any sort of cartelisation or trying to defend themselves on one reason or the other and were totally on the defensive side. They were raising the technical issues stating that DG(I) have not included their name in this list or that list and as such their name should have not been included in the list and were simply trying to save their skin from this whole episode of cartelisation.
At the end of the day, the lawyer / representative of the CMA, while giving their oral presentation simply denied the charges of making the CMA platform available to the cement manufacturers for price fixing / cartelisation etc. They also pointed out that the DGI have taken the notice of increase in the price of cement after its meeting but have not said anything when the prices have gone otherwise. They out rightly denied any hand in such activities in their meeting where only technical / matters related to the excise duty etc. are discussed. The oral presentation of the Informant i.e. Builders' Association of India was made by Shri O P Dua, Senior Advocate. He started with the brief statement about the BAI and that the majority of the cement produced in the country is consumed by its members. As the cement companies are indulging in caratelisation which badly effects their working which is the reason of this complaint. Then he gave, in chronological order how the CMA have been providing the platform to its members to indulge in the activities where the prices are pre-determined and conveyed to the distributors / sellers. He also quoted the instance of making a copy of the circular of M.s Mahiar Cement which was meant for its retailers, intimating the effective price of cement in advance. The circular further states that the price of cement have been fixed in the meeting of CMA held at Jabalpur. The signatory of the circular was cross examined by him in the MRTP case filed by Shri Sarabjit Singh Mokha in the year 2001. He further stated that there use to be Regional Committees in CMA which use to fix the price of cement but after having filing of cases in the MRTP and other forums that they have disbanded those committees and have now authorized the representatives of the cement companies in particular areas who collect the rates in their respective region and pass on to the CMA which then compiled and share the same with its members all over the country to determine the price of their produce. He further questioned the moving of the price of cement in parallel band where as the production cost of the each producer is different. After having losing so many cases, they have become wiser and the information of their meeting where such decisions are taken never comes out. According to him no one will go to the roof top and say anything about the price fixing / cartelisation etc. As regards the case No.RTPE-52/2006 which was initiated by the Director General Investigation & Research (DGIR) on the basis of the complaint was filed by the Builders Association of India to the Director General – Investigation & Research (DG-IR) about the unfair trade practices of the cement manufacturers in the year 2006.. The DG - IR investigated the matter and submitted its findings / report and accordingly a case was filed by the DG-IR in the MRTP Court vide case No. RTPE-52/2006. Consequent upon the Competition Commission of India came into existence and started functioning
from May 2009, all the cases, which were pending in the MRTP Court, were transferred to the CCI. One of the respondents while arguing the case on 21.02.2012 stated that the DGI of CCI have gone beyond the limits in investigating the case citing Supreme Court Judgment. Since the matter was pertaining to the MRTP Court, its findings should have been restricted to the rules as per MRTP Act and not CCI act. CCI did not take up matter and it was advised by our Senior Advocate Shri O P Dua not to pursue the matter further. After the presentations by the informant, the representatives of the cement companies tried to take up the matter on the pleadings made by Shri O P Dua which was straight away denied by the bench. The bench directed all the present there to make the written submission, if any, within 15 days with all their objections whatsoever. As a matter of practice, the bench will take about a fortnight in pronouncing their judgment and in the event of penalizing the cement companies, they will issue show cause notice why they are not penalized because of their indulgence in unfair trade practices / cartelisation and there will be one more meeting of the bench somewhere in the month April / May 2012 in which the cement companies will be given the opportunity to defend themselves. As the decision in the case has far reaching consequences, if it goes against the cement companies, the Commission is taking its time in arriving at the conclusion. As per the indications available, the Commission is likely to pronounce its order by the end of May 2012. PROVIDENT FUND. Construction Industry was brought within the purview of the Provident Fund Act, 1952 (the “Act”) vide Notification dated 17.9.1964. Subsequent notifications dated 23.9.1980 and 1.11.1990 sought to broaden the boundaries of the said Act, wherein a requirement was placed for every employee employed in or in connection with the work to become a member of the scheme from such employee’s date of joining. This amendment lead to an interesting tussle between the Central Provident Fund Commissioner and the Building and Construction Industry as to the applicability of paragraph 26(2) of the Provident Fund Scheme to daily rated casual, temporary, and peripatetic labours. The issue got further entwined when the said industry challenged the capability of the Provident Fund Department in distribution of the benefits of this social legislation to the actual beneficiary.
From the year 1991 to the year 2012, EPFO failed to formulate any constructive scheme on the said issue despite trying out various models.
Till date there is no approved and functional mechanism whereby the funds as are collected in the name of individual welfare of the construction
workers despite there being a plethora of litigation as regards the said subject, and to further accentuate the fact there also appears to be several thousands of crores lying undisbursed in the EPFO coffers with no identifiable beneficiary.” Builders Association of India, Delhi Centre & Others filed a Civil Writ Petition No.3588 / 2002 against Union of India & Others on the applicability of Employees Provident Fund & Misc. Act on the construction workers. The case came for hearing in April 2002.
On 30.05.2002, the BAI Counsel pleaded before the Court that in terms of the proposed scheme framed by the respondent (EPFO) and as was placed in CWP No.792/1991 (Piare Lal Hari Singh & Another v/s Union of India & Others , the Provident Fund Organisation (EPFO) was required to issue a pass book and assign a ten digit number to each employees. It is submitted that despite this scheme having framed in 1991 and despite the same having been filed in Court in 1995, no pass book has been issued till date nor ten digit number has been assigned. In the matter CM No.6191/2002 (similar / identical matter) before the Hon’ble Court: Mr. Chawla, the respondent’s Councel (for EPFO) submitted that till the next date of hearing, the respondents will not take any coercive steps in respect to the coverage of casual workers of the petitioner, however, the proceedings will continue. Since, the proceedings under the Act are continuing before the Regional Provident Fund Commissioner, the Petitioner will extend co-operation for completion of the proceedings. On 07 July 2004 - Court issued the “Rule ”. To be heard alongwith WP(C) 7253/2002 (similar / identical matter). The interim orders passed on 30th May, 2002 (under C.M.No.6191/2002) is made absolute till the disposal of the Write Petition. Later on the matter was sent to the Lok Adalat for the final settlement but due to non listing of the matter in the Lok Adalat for such a long time, on 2nd February 2009, the Hon’ble Court issued orders for listing the matter for final disposal on 24th August 2009. The matter has been listed for hearing on 24th August, 2009, 6th January 2010 & 30th April, 2010, 5th October 2010, 5th January 2011 and 30th April 2011 but adjournment granted on one grounds or the other. The matter was listed for 16th August 2011. On 16th August, 2011, counsel for Respondents 2 and 3 stated that she has just taken over as the counsel for RPFC and at her request, the matter was deferred for 29th September 2011. Meanwhile, it was felt that the present Counsel Ms. Amrita Sanghi, was not doing enough for the case and it was decided to change the counsel on the
record. Accordingly Shri Somesh Arora has been appointed as the Advocate, on record, to plead that case. He appeared in the High Court on 29th September 2011, behalf on behalf of Builders’ Association of India, and sought adjournment which was granted and the matter was deferred for 5th December 2011. On 5th December 2011, when the matter came up for hearing in the Court of Justice P K Bhasin, BAI’s advocate on record Shri Somesh Arora was present in the court alongwith the Senior Advocate Shri Sandeep Sethi for arguments but counsel for the respondent for No.1 requested for adjournment. The Hon’ble Judge granted the adjournment and deferred the matter for 20th April 2012. Civil Application vide No.1105/2012 was filed in the High Court of Delhi, on 24th January 2012, with the prayer to direct the respondents to comply with the direction given through various orders passed by the Hon’ble Court of compliance of modified Scheme of respondent, call upon the respondents to clarify the contradictory statements / stands taken before different courts in respect of implementation of Scheme, restrain the respondents not to take any coercive steps till the pendency of the matter etc. The Court of Justice P K Bhasin (Court No. 7) directed the listing of application for consideration on 20th April 2012, the date already fixed in the matter. CM 1105/2012 & 3588/2002 came for hearing in Court No.7 of Justice P K Bhasin on 20.4.2012. Orders : Notice. Notice of the application is accepted by learned counsel for respondent no.1- UoI and respondents No. 2 and 3.
List on 9th October, 2012 along with other connected matters. PRE-BUDGET M EETING FOR UNION BUDGET 2012-13 BAI has submitted its views to the Budget Officer (TRU), Government of India, Ministry of Finance, Department of Revenue, New Delhi, as under:- BAI represents members involved in construction business across the country and are concerned about the method & manner of indirect taxes administration in India and through the present budget representation are sanguine of the same getting addressed. The concept recommendation is couched in below mentioned ‘PREFACE’.
PREFACE:
Present recommendation is based on following premises rather aiming for fiscal exemption or concession:-
a) Tax administration to be unambiguous, transparent & uniform and further shall not cause blocking of working fund for industry,
b) Tax administration shall seek to
eliminate the power of discretion and help avoid unproductive litigation.
c) Tax administration shall be based
on scheme as a package for a designated period, avoiding perpetual changes.
1. FINANCE ACT 1994:
� TAXABLE PERSON
While a provider of taxable service is viewed as an agent for collection of tax on behalf of exchequer, receiver of such service is not held a statutory partner and being an ultimate beneficiary remains outside the statutory scheme. Specific to project construction business, preferably the Tender-bids be mandated to specify the method & manner of arriving at the tax component for purpose of statutory compliance. Such a provision of statute will prominently avoid litigation aspect, both in terms of legal & commercial and also apprehension of unjust enrichment. That apart, it will help create an equal playing field to stakeholders, while infusing competition limited to basic price as will make any proposal of Tax deduction at Source to be redundant. For example, a tender bid conforming to statutory compliance while to prescribe specific guidelines for bidders to consider the tax element, say, to adopt composition option vide Notfy.23/2009 @4.12% of contract price taking into account free supply goods or abetment vide Notfy.12/2003 @10.3% of contract price excluding sale value of goods as per contract etc. In short, service providers as well as service receiver shall be defined as “co-joint taxable persons”.
� DEFINITION :
There is imperative need to define “service” and to simplify computation of ‘taxable service turnover’ as well as without any encumber.
It is an accepted fact about construction business is complex and sans uniformity as well as its transaction documentation or accounting treatment no exception. Obviously the reported service turnover per return and books of A/c at given point time will be mismatch, unless execution of contract is completed.
It is to avoid such situation not to be misconstrued by field formation and exception to construction business, the compliance be restored to cash receipt with certain modification to scheme of statute for purpose of tax collection on entire contract price, without any drop-out.
� POINT OF TAXATION (POT)
While modifying the pattern of tax payment to accrual basis vide notify dated 18.7.2011 and followed by Trade clarifications, basically the invoicing method, as per practice of industry, is assumed to be followed by client ‘certification/approval’.
For work done, contractor raises progress/running bills on cumulative basis, which goes to client for certification and final payment approval, but no other way. Representations have been made on taxability of mobilization advances, ad-hoc payment pending certification etc., which are unique issues of construction industry.
While switching over to cash receipt basis exclusive for construction industry, it is expected to resolve the issues, OR else more clarity of statutory basis making clients certification subsequent to contractor raising of bills to be the identified point for tax payment, would greatly help industry and avoid ambiguity. � INFRASTRUCTURE
PROJECTS:
Construction work for infrastructure since considered to be exemption from levy of tax, be it exempted per se but not on admix basis. In other words, the project designated be exempted as such, inclusive of its inputs, may be reference to PAC certification vide Foreign Trade Policy.
Otherwise, existing scheme contains hidden cost for such project owing to disability for CENVAT credit/refund for inputs.
Such a position would make the object foolproof as well as eliminate commercial disputes in government projects.
� CENVAT CREDIT-BENEFITS
The scope of CENVAT credit context to execution of contracts while to be defined as “in the course of business”, avoiding concept of disruption in chain of such set-off. This will help avoid unwarranted litigation or blocking of working capital for industry. For e.g. tax on input services, like, Outdoor caterers, Insurance coverage for staff, Travel for staff benefits etc., which relates to the conduct of business.
To avail Cenvat credit benefit unavoidably its reference bound to find mention in records/accounts though utilization may be at a later period or could not be. Merely for reason of taking Cenvat or accumulating the same in records, should not be subjected to penal consequences in the event of found ineligible at a later period, though same not utilized. It betrays logic as well as self-contradiction and thus levy of penal interest be omitted. This position presently prevails both for Finance Act 1994 and also Central Excise Act 1944.
2. CST ACT 1994: The onus of collection and filing of forms/certificates prescribed under CST Act, is fixed upon seller, though the buyer despite enjoying the benefit is not a statutory party for such compliance. Filing of C forms by seller is presently a matter of serious concern of industry and need to be addressed by holding beneficiary buyer also as statutory partner for compliance under the Act.
Presently a seller is required to obtain C Forms from beneficiary buyer and file the same within the prescribed time i.e. by next quarter period of such sales. This has also been serious matter of concern, as compliance is encountered with administrative and commercial issues, primarily, with buyers and includes various public sectors. The prescribed time frame deserves a review and relation. In terms of transit sales under section 3(b) read with section 6(2)(b) of CST Act, subsequent sales qualifies for full CST exemption unless covered by C form issued by client and E-I certificate by outstation vendors. But then such sales to SEZ unit, in
the absence of suitable amendment to CST Act read with CST (Registration & turnover) Act. This issue needs suitably be addressed by amending statute and remove ambiguity. Concessional CST rate against C form is 2% and thus CST rate for declared goods, especially iron & steel being one of the prime input material for all infrastructure project works, be considered for 2% and thus uniform rate adopted by every States.
3. CEA 1944:
As per recent amendment to CET Act 1985, Ready Mix Concrete (RMC) hitherto was attracting ‘nil’ duly, is made liable to duty. For purpose of construction work ‘concrete mix’ while is dispensable, it may be RMC or SMC (site concrete mix). While concrete mix produced at site for captive use of designated project, yet field formation seek to classify as RMC, so as to bring it into dutiable category vide CH.3824 50 10 of CET Act,1985.
The above position is a matter of serious concern taking into account the importance of concrete mix in construction works and thus uncertainty is posing into statutory as well as commercial disputes. It is essential to bring ‘RMC’ to dutiable of ‘nil’ category and avoid unwarranted disputes supra. Specific exemption has been accorded for manufacturing activity as exclusively meant for designated site work e.g. Production of RMC; pre-casting of girders etc., and structural fabrication, as meant for same project works. However, such manufacturing activity for compulsion and unavoidable reasons is required to be carried away from such site premises and this position is sought to be construed by field formation as not conforming for scope of exemption. This issue need to be addressed at the earliest to avoid uncertainty and thus definition u/s.2(f) manufacturing of CEA 1944 may be appended with an Explanation to include such activity carried away from project premises subject to condition of same meant exclusively meant for the designated site work. Excise & service tax exemption/concession be extended to all infrastructure projects, including power projects by borrowing the field scheme of Foreign Trade Policy. Of course, it is imperative to define ‘infrastructure projects’ for above purpose.
To give boost to agencies involved in power generation based on solar OR windmill power projects, exemption be considered for exemption from levy of excise duty as well as service tax for such projects per se. To achieve the object of notfy.108/1995 issued under CEA 1944, it is necessary to consider among other financing agencies, the JICA to make the object of said notification purposeful.
EXCISE DUTY ON RMC Ready Mix Concrete (RMC) when sold is subject to 1% Excise Duty from 1st March, 2011. There was no Excise Duty applicable on RMC, when made for ‘captive consumption’. Despite this some of our members are receiving notices from Excise Department for RMC made for ‘captive consumption’. In support of above contention, we are citing below order of CESTAT, New Delhi and Punjab & Haryana High Copurt. 2006(198) E.L.T. 503 (Tri.LB) IN THE CESTAT, PRINCIPAL BENCH NEW DELHI (COURT NO.IV) (LARGER BENCH) S/Shri S.S. Kang, Vice President, C.N.B. Nair Member (T) and M.V. Ravindran, Member (J) CHIEF ENGG, RANJIT SAGAR DAM Versus COMMISSIONER OF C.EX. JALANDHAR Final Order No.190/2006-Ex/PB), dated 23.1.2006 in Appeal No.E/1410/2003-NB(A) “Ready Mix Concrete” manufactured at site – Exemption under Sl.No.51 of Notification No.4/97-C.E. available provided it is manufactured at site of construction. Ready Mix Concrete and Concrete mix falls under Chapter 38 of Central Excise Tariff Act, 1985, fact not disputed, Exemption to Concrete mix at Sl.No.51 of Notification No.4/97-C.E. should not be given a narrow meaning as to include only Concrete mix and to exclude from its ambit Ready mix concrete manufactured at site. Concrete mixing plant, by necessity, to be located at place within vicinity of the area where dam is being constructed. Fact of manufacturing Concrete mix away from site and transporting the same to the site itself would not exclude the Concrete mix manufactured from exemption granted under Sl.No.51 of Notification No.4/97-C.E. Entry at Column No.2 at Sl.No.51 of Notification No.4/97-C.E. refers to only Chapter 38 ibid and not to any heading or sub heading no. If the law makers did not intend to exempt Rady mix concrete falling under sub heading 3824-20 / 3824.90 ibid, they would have categorically said so. (paras 9, 10, 11, 12)
2007 (217) E.L.T.345(P&H) IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH M.M. Kumar and Rajesh Bindal, JJ. COMMR.OF CEX. JALANDHAR Versus CHIEF ENGINEER, RANJIT SAGAR DAM CEA No.8 of 2007, decided on 16-4-2007 Concrete mix prepared at site and used in construction of dam – Exemption under Notification No.4/97-C.E. – In construction of dam, mixed concrete used to be prepared at site – on account of hilly area, the plant was kept at some distance would not necessarily bring the production of mixed concrete within mischief of taxable entry reproduced by Item No.3824.20 of Central Excise Tariff – Benefit of Notification ibid not to be denied. (Paras 3,4). Based on the above, our members have taken advantage and got relief. INTERACTIVE M EETING OF BAI WITH CPWD IN NEW DELHI . For the first time in BAI history, BAI arranged a high profile interactive meeting with the top bosses of Central Public Works Department (CPWD) in Delhi on 22nd September 2011. The meeting was presided over by Shri S.K. Mittal, ADG (S&P), CPWD. Shri P.K. Gupta, ADG (TD); Shri A.K. Sharma, CE (CSQ); and Shri V.K. Malik, SE (C&M) of CPWD were also present and heard the BAI delegation’s grievances patiently and expressed positive response to almost all the points. Shri Cherian Varkey, President, BAI led the BAI delegation. In addition to the agenda points, BAI also raised the issue of ‘Negative List of Services’ published by Union Finance Ministry on inclusion of almost all categories of construction within the levy of Service Tax payment. BAI appraised the matter to CPWD in detail and requested them to take up the matter with the Union Finance Ministry for excluding CPWD construction from the purview of Service Tax payment. The agenda discussed in the meeting is given below:- 1. Clause 10 C – Payment on Account of
Increase in Prices / Wages Due to Statutory Order(s).
2. Clause 10 CA – Payment Due to Variation in Prices of Materials After Receipt of Tenders.
3. Clause 10 CC – Payment Due to Increase / Decrease in Prices / Wages (Excluding Materials under Clause 10 CA).After Receipt of Tenders for Works.
4. Clause I – Performance Guarantee.
5. Clause 1A – Recovery of Security Deposit.
6. Clause 2 – Compensation for Delay.
7. Clause 2A – Incentive for early Completion.
8. Clause 3A – When Contract can be Determined.
9. Problem being faces with regard tio initial criteria for eligibility in respect of Tenders being invited under 2/3 Envelope System.
10. Bidding Capacity.
11. Refund of Security Drposits regarding Specialised Items of Work.
SERVICE TAX ON CHARITABLE TRUSTS I.E. BAI Service Tax on Clubs/Associations was earlier effective from 16.6.2005, however many associations disputed levy of Service Tax. Ultimately Department of Revenue, Ministry of Finance, Government of India issued Circular No. 137/50/2008-CX.4 dated 28th April 2008, which is reproduced below: Service tax is applicable on "club and association service" with effect from 16.6.2005. The taxable service under this category is any service provided by a club or association to its member for a fee or any other consideration.
2. A number of trade associations have disputed the levy of service tax on them under this category of taxable service. In this regard it is stated that there is no dispute that such bodies fall within the scope of club or association.The services provided by these associations are not of charitable, religious or political in nature. They collect membership fees and other charges form their members and they work for the interest of trade and industries. Therefore, they do not have objectives which could be categorized as public service. Accordingly, they do not fall within the scope of the excluded categories.
3. Further some of the trade associations have also argued that they are providing service to their own members and thus the service is in the they are self service. However such argument does not have any legal basis. In this regard attention is invited to the Explanation to section 65 of the Finance ACt, 1994, which clearly clarifies that at taxable services includes any service provided by any unincorporated association or body of person to a member thereof, for cash deferred payment or any other valuable consideration.
4. In view of the above, appropriate action may please be taken for recovery of service tax in all these case.
(Gautam Bhattacharya) Commissioner (ST) Despite the above circular controversies on taxability prevailed leading to insertion of Section 96 J in Budget 2011 which is reproduced below:- S.96J inserted by the Finance Act, 2011 provides as follows (w.e.f. 01/05/2011): “1. Notwithstanding anything contained in section 66, no service tax shall be levied or collected in respect of membership fee collected by a club or association formed for representing industry or commerce, during the period on and from the 16th day of June, 2005 to the 31st March 2008 (both days inclusive). 2. Refund shall be made of all such service tax which has been collected but which would not have been so collected if sub-section (1) had been in force at all material times”. Despite this specific provision of applicability of Service Tax on Association from 1.4.2008, BAI sought meeting with Joint Secretary, Tax Research Unit, Department of Revenue, Ministry of Finance, Government of India and presented a memorandum, seeking exemption / clarification on levy of Service Tax. The said representation is reproduced below:- Shri V.K. Garg, Joint Secretary (TRU) Department of Revenue, Ministry of Finance. New Delhi Dear Sir,
RE: SERVICE ADMINISTRATION-BAI
FUNCTION
Builders Association of India (in short referred to as BAI) is a representative body of members from Construction Industry and it has functional units in various States and its HQ at Mumbai. BAI primarily acts as a catalyst between Government and its members on various issues, including tax administration. For example, formulation, simplification & rationalisation of State VAT Act, levy of excise duty on site precast activity, etc. In terms of Finance Act 1994, administration of Service tax is considered to be complex and ambiguous. This position is accentuated with the perpetual modification effected to the statute. Trade
& Commerce is not against discharging their tax liability, but are averse for the lack of simplicity as well as sans self-compliance. This issue not to be addressed merely from the point of quantum of tax collection or merely from the legal aspect of statute, but on composite basis and more specific to commercial aspects of project owners. BAI units is being visited by field formation of dept., advising for statutory compliance with reference to receipts of subscription. Equally important to mention is about the complexity of interpretation about applicability of such levy is further accentuated with differential opinion expressed by experts on both the sides. BAI Managing Committee in its recent meeting held at Cochin felt it appropriate to refer the issue for your intervention and suitable guidelines. To draw a suitable conclusion, the following facts being placed for your information and record:- 1. BAI is a body established/registered under (i)
Societies Registration Act XXI of 1860 w.e.f. 11th January 1983; and (ii) Bombay Public Trust Act 1950 w.e.f. 8th Feb 1984.
2. BAI, as a society, basically functions towards
non-commercial and for public utility objectives, including the following in brief for its members:-
a) To promote & foster feeling of fair business practice amongst and members, eliminate unhealthy competition among the members;
b) To disseminate knowledge and
information in a manner of R&D, educational etc among members;
c) To facilitate and co-ordinate with
Central & State Govt., complex administrative issues, including tax laws in resolving contentious matters and avoid litigation.
d) BAI provides services only to its
Members hence the concept of Mutuality involved.
3. On financial aspect to meet the select targeted
agenda of BAI, subscription from members is secured per annum/life-membership etc. But the any surplus fund is not eligible for distribution to its members.
BAI addresses this representation with the above functional profile of ours and thus seek suitable guidelines, enabling us do the needful. BAI Managing Committee is concerned on the issue both
from the point of administrative aspect as BAI operates with skeleton staff and rigid financial support. However, our members are registered under Finance Act 1994 and are discharging their tax for applicable category of taxable service as legally due.
While on the above, we request you to review the status of BAI on taxable or otherwise and await your guidelines. BAI shall also thank you for according a suitable appointment to meet in person and appraise on the issue. SERVICE TAX ON M ANAGEMENT , M AINTENANCE
AND REPAIR OF ROADS. Service Tax in relation to ‘management, maintenance and repair of roads’ was introduced in 2007. Due to BAI’s vigorous efforts, the said services were exempt from the purview of Service Tax. Please refer to Circular No.110/4/2009-ST and Notification No.24/2009-Service Tax issued by Department of Revenue, Government of India. However, the Service Tax Department started issuing demand letters to many BAI members for payment of Service Tax on the contracts carried out by them for ‘management, maintenance and repair of roads’ for the period 2007 to 2009. This was challenged by BAI Madurai Centre in the Madurai Bench of Madras High Court and a Stay Order obtained. However, the Writ was dismissed on 28th March 2011. Due to BAI’s persistent follow-up with the Department of Revenue, Government of India, has come out with Notifications.- SERVICE TAX APPLICABILITY ON M EMBERSHIP SUBSCRIPTION The Finance Ministry have imposed Service Tax on Membership, exhibitions, Advertisement, etc. of Trade Bodies with effect from 2005. BAI with opinion from experts have so far been out of the ambit of Service Tax. Budget 2011 came out with the following: IV. Service Tax Exemptions with retrospective effect have been given for “Management, Maintenance and Repair of Roads” by the Finance Bill: To an Association or Chamber representing commerce or industry in respect of membership fee under the ‘Club or Association Service’ for the period from 16.06.2005 to 31.03.2008.
‘Membership of BAI along with other activities like income from Exhibitions, Conferences, Conventions, Seminars, etc.’ will be covered under the provisions of Service Tax with effect from 1st April 2008’. Though BAI has represented the matter to the Ministry for exempting BAI membership from the purview of Service Tax on various grounds, the same was not met with positive result. WITHDRAWAL OF BAI’ S INCOME TAX EXEMPTION U/S.12A. The Income Tax Department through its Order No. 12AA(3)/2009-10 dated 8.12.2011 issued by Director of Income Tax (Exemptions) withdrawing BAI’s Income Tax exemption with retrospective period i.e. from 2008-09 onwards. BAI have been enjoying exemption from payment of Income Tax U/s.12A of Income Tax Act, being registered as a Charitable Trust. However, by Finance Bill 2008-09 amended the definition of “Charitable purpose”, and as per the definition those Organisation which provides Educational, Medical, and Religious services’ are only eligible to be qualified as “Charitable Trust”. The Order received from Director of Income Tax (Exemptions), the Income Tax Department, which have taken note of various activities of BAI and dismissed BAI’s claim that, BAI is a Charitable Organisation, resulting in BAI to pay Income Tax for Accounting Year 2008-09 amounting to Rs.1,90,130/- with applicable interest. For the Financial Years 2009-10 and 2010-11, the consolidated income generated for these two years was approximately Rs.2.6 crore. This matter of payment of Income Tax and Service Tax were discussed at various Managing Committee Meetings held at Cochin on 30th April 2011, Chennai on 16th July 2011, Delhi on 23rd September 2011, and Mysore on 27th January 2012, and ultimately took a decision for payment of Income Tax and Service Tax in the following lines:- � Service Tax liability of the past periods for
‘Membership’ i.e. for 2008-09, 2009-10 & 2010-11 will be solely borne by BAI Headquarter.
� Service Tax liability arising out of ‘other than Membership’ for the years 2008-09, 2009-10 & 2010-11 will be solely borne by the respective Centres. Centres have to send the respective amount shown in the statement already circulated to them to the BAI Headquarter.
� The ‘Income Tax liability will be solely borne by the Centre’ and the respective amount shown in the statement circulated to the members has to be sent to the BAI Headquarter.
� BAI Headquarter will make the payment both the Service Tax and Income Tax immediately to avoid heavy penalty and interest burden.
� BAI Headquarter is authorized to use Corpus Fund for remitting the Service Tax and Income Tax liability.
� BAI Headquarter should initiate steps to recoup the Corpus Fund so used as early as possible.
BAI Headquarter then paid Rs.72,90,130/- as Income Tax and Rs.1,09,43,478/- as Service Tax by taking Overdraft from Corpus Fund Account and also by breaking Headquarter’s Fixed Deposit. ENTRY TAX Background:- Prior to 1998-99, Urban Local Bodies used to realize Octroi from the traders and business community and this used to be one of their revenue sources for meeting their budgetary provisions. State Government somehow realized that there are leakages and malpractices in the process of collection and this caused harassment to public. Thus, State Finance Commission (2001-2006) and U P Taxation Enquiry Committee jointly recommended in 1998-99 in their report that octroi should be abolished altogether. The stare Government came out with alternate source of revenue by levy of entry tax in the state and enacted an ACT as “U P TAX on entry of Goods Act, 2000 (the Act of 2000)” wherein entry tax became leviable from 1-11-1999 on selected items. U P TAX on entry of Goods Act, 2000:- The Act, 2000 was challenged by Indian Oil Corporation Ltd. (referred as IOCL hereinafter) before Hon’ble High Court of Judicature at Allahabad. The Divisional Bench declared the said ACT as ultra vires on 27-1-2004 and this was reported in 2004 UPTC page 240 (Tax law journal). Learned court in its order said that the Act is in violation of Article 301 (any tax law requires assent of the President of India) and also Article 304 (which allows inter-state movement of goods with reasonable restriction). Thus the Act, 2000 could have been legal, had it been of compensatory nature and the Court said that as per available records, it is not of compensatory nature, thus ultra-vires and stuck down. U P Govt. filed SLP in Supreme Court of India on 9-2-2004 and in case of IOCL, operation of High Court order was stayed. Learned Court in its order said that IOCL will pay entry tax, which shall be kept in separate interest bearing account.
After 9-2-2004, in other states too, entry tax was challenged in their respective High Courts and suitable orders were passed. Around 12 states went in appeal before Supreme Court of India regarding levy of entry tax. Hon’ble Apex Court through five judges constitution bench laid some principles and guidelines and asked High Courts of concerned states to examine their cases in light of guidelines, laid down in Jindal Stainless Steel case ( reported as 2006 SCC Vol. 7 page 241) and whether do those cases meet criteria, so laid down? The Divisional Bench of Allahabad High Court in its order dated 8-1-2007 in case of IOCL held that no material has been placed by U P Govt. before this court to show that this tax is of compensatory in nature and amount, so collected, has been specifically spent for welfare and benefit of trade and industry. Thus, the Act is ultra vires. In case of IOCL, learned Court directed the state Government to refund Rs. 3022 cr. to IOCL. To avoid refund of entry tax to IOCL and others, U P Government enacted another act, known as “UP Tax on entry of Goods into local areas ,2007 (known as the Act, 2007) with retrospective effect i.e. 1-11-1999 meeting out the guidelines of Supreme Court of India and forming a committee, which will monitor utilization of funds, so collected, for the welfare and benefit of trade and industry. UP Tax on entry of Goods into local areas, 2007:- The Act was challenged in Allahabad High Court alleging that defects are still there and guidelines given by Apex Court in Jindal case were not wholly covered. About 1500 writ petitions were filed in Allahabad High Court. Divisional Bench of Learned Court held in order dated 23-12-2011 that the Act, 2007 is valid from 1-11-1999 and all stay orders stand discharged. About 15 petitioners, including IOCL, ITC, Hindalco etc. filed SLP before Supreme Court of India in beginning January, 2012 and Learned Apex Court passed a stay order directing that entry tax is payable regularly from date of order in cash and for arrears from 1-11-1999 till date of order, 50% is to be paid in cash and balance 50% by furnishing Bank Guarantee valid till the case is finally disposed off. Benefit of 50% Bank Guarantee applies to petitioners only and not to others. Final hearing of the case is pending before Apex court. Division Bench of Allahabad High Court heard pending cases both at Allahabad and Lucknow and disposed off almost all pending cases in the light of Apex Court judgement of January, 2012 and thus cleared the backlog of pending cases.
Effect of the Act, 2007 on builders and contractors:- Consequent to the said order of Hon’ble Supreme Court of India in January, 2012, contractors and builders will come under ambit of entry tax and it is likely that notices may be issued to them for assessment subject to limitation asking them to give from details of materials, purchased and brought from outside municipality limits of site location. Similar situation may arise in other states also. GOODS & SERVICE TAX Buoyed by successful implementation of Value Added Tax at States level, Government of India and Empowered Group of Ministers suggested introduction of Goods and Service Tax (GST). After initial resistance majority of States have accepted concept of GST in principal. Some of the States feels that, GST would ultimately restrict their taxation freedom. However, Government of India is confident of persuading all States to see benefit in GST and feels that these States will fall in line. Justification for G.S.T. With the present multiplicity of in direct tax laws both at State and Central level, construction sector is ultimately taxed at approx. 26% on the value of goods at factory level. It generally includes 10% Excise Duty with Surcharges, 12.50% VAT, 3% to 5% Entry Tax or Octroi Duty and 10% Service Tax. In addition, compliance cost of each law requires to have separate registrations, separate registers, separate returns, engaging different experts and consultants which works out at 1% to 3% of turnover. The new tax is expected to make life lot easier for construction contractors and tax administrators. Country moved one step forward on 22nd March 2010 when Hon’ble Finance Minister tabled Constitutional Amendment Bill required to operationalise Goods and Service Tax (GST). Amendment is required since under present dispensation Centre can not tax sale of goods and States can not tax services. Bill seeks to provide powers to Centre and States to make laws for levying tax on supply of goods and services. Bill seeks to establish GST Council to be headed by Union Finance Minister with State Finance Ministers as other members. Every decision of GST, Council has to be supported by all members. Once GST is operationalised, it would be single most important fiscal legislation in independent India’s history. For the first time country will have a genuine common market having single rate of taxes on goods and services. GST will subsume following taxes which are presently being levied by Centre and States :-
a) Excise Duty, Additional Excise Duty, Service Tax, Central Sales Tax, Countervailing Duty and Special Additional Custom Duty, Central Surcharges and Cesses. Excise Duty levied under Medicinal and Toilet Preparation Act, 1955. This will be replaced by Central GST.
b) VAT Tax, Octroi Duty, Entertainment Tax,
Entry Tax levied by State Governments, Luxury Tax, State Excise Duty, Professional Tax, Purchase Tax, Tax on Lotteries, Betting and Gambling Tax, Tax on Advertising, State surcharges, cesses and levies will be replaced by State GST.
c) The Centre and States have agreed on dual structure for GST.
Following taxes, levies, charges will be outside purview of GST :-
I. Crude Petroleum, high speed diesel, petrol, aviation turbine fuel, natural gas, alchohol for human consumption (This has now been incorporated in Constitution Amendment Bill No.22 of 2011 by introducing clause (12A) to Article 366 presented in Budget Session of Parliament). Royalties on minor and major mineral charges by States and Centre respectively.
II. Stamp Dty and Registration Charges levied
by States on sale of immovable property. Stamp Duty levied by States on Bank Guarantees, Power of Attorneys, Promissory Notes and any financial documents.
III. Octroi duty, Entry Tax and Entertainment
tax levied by a Panchayat or Municipalities.
Considering the special nature of the Construction Sector, it is necessary to present Industry’s view point to Empower Group of Ministers impressing upon them to include the following in GST :- 1. The Construction Industry looks forward to
being treated as a normal part of the chain of supply of goods and services as envisaged by the proposed GST model. All ongoing contracts should be covered under GST.
2. Government projects and all exempted projects
should be brought under GST. This will remove cascading effect on infrastructure projects.
3. Inter State stock transfer of capital goods is very
frequent in the industry and these goods are not meant for sale. Such capital goods when relocated at actual construction sites in other States should be viewed only as stock transfer and should not be taxed.
4. All kinds of royalties, premiums, cesses being presently imposed on the construction industry should all be subsumed in the State GST, including lease premium paid on Government owned land.
5. TDS provisions should not find place under GST.
6. The petroleum products constitute a very
significant component of the construction cost and they should be brought within purview of GST and be treated as normal inputs subject to GST and benefits of input credit like any other intermediate views.
7. The Realty Sector should also be integrated fully into GST and the host of taxes, levies, cesses, stamp duty and registration charges imposed by the Government should be fully subsumed in the State GST.
8. CGST should be extended to projects executed in the State of J&K.
9. Specific clarity is required in the GST model que taxable event in case when project execution such as highways, railways, transmission lines are spread over more than one State.
10. The contracts turnover involves multiple transactions including import sales, inter-state sales, intra-state sales and On Behalf Transaction. The GST should be tuned to accommodate such transactions.
11. All infrastructural facilities under BOT model is
enjoying tax concessions under various heads. Concession period enjoys by operator varies from 10 to 30 years. Discussion paper is silent on fate of BOT projects.
12. There are about 2,50,000 local bodies in various
States. Entry Tax or Octroi levied by Panchayat or local bodies kept outside GST is virtual licence to such bodies. This should be subsumed in GST.
XXV ALL INDIA BUILDERS ’ CONVENTION The 25th All India Builders’ Convention – Bharath Parva, hosted by the Mysore Centre at Mysore between January 27 and 29, 2012, was a great success. The deliberations were held at the NIE Sports Complex. The participants were supremely happy at the conduct of the grand event and eulogised the entire Organising Committee for the wonderful and innovative arrangements. The glorious culmination was the result of hard and dedicated work by the Team-Bharath Parva. The members of the Convention committee converged together to
strive day-in and day-out to provide maximum comfort to the 1500 delegates attending the Convention. We also organised the Core Committee and MC /GC meetings.
The Convention was formally inaugurated on January 27, 2012 by Sri Kavuri Sambasiva Rao, Hon’ble Member of Parliament. Hon’ble Minister for Medical Education, Govt. of Karnataka, Sri S.A. Ramadass and Hon’ble Member of Parliament, Sri Vishwanath were the Guests of Honour. Sri Sambasiva Rao called for all the builders to be united and work towards the progress of our country. Sri Abbas Jasdhanwala, CMD of M/s. NCCCL,was conferred with the ‘Lifetime Achievement Award’. Sri Jasdhanwala, while delivering his acceptance speech, enjoined the builders to be very conscious about maintaining good quality of work and completing the projects within the stipulated time. Our National President, Sri Cherian Varkey presided over the Inaugural.
The Buildtech 11 International Seminar on ‘Green Struct – Mechanise Towards Sustainability’ was inaugurated on January 28, 2012 by Sri Lalit Kumar Jain, National President, CREDAI . Sri Prem Jain, Chairman, IGBC delivered the key-note address. He gave a clarion call to all the builders and developers to compulsorily follow the green concepts and play a major role in conserving the environment. Sri Chandrasekhara Hariharan, CEO, BCIL , Bangalore was conferred with ‘Green Builder Extraordinaire ’ award. Sri Cherian Varkey, our National President, presided over the function. Eminent speakers, from different parts of the World, addressed the seminar on very relevant topics. The arrangements in the seminar hall surpassed all international standards. The seminar concluded on January 28, 2012.
Three Gala Dinners were hosted on the three evenings at renowned hotels of Mysore. The superb entertainment programmes, during Dinner on all the three evenings, held the audience in raptures.
As a part of the Convention, our annual event – Mybuild 11 – National Exhibtion of Building Materials, Equipments and Interiors – was held at the Dussera Exhibition Grounds from January 26 to 30, 2012. The event, which had around 250 stalls, attracted a very large number of visitors.
The Convention concluded with the Valedictory on the afternoon of January 29, 2012. The Mysore Centre convincingly proved that it can organise any mega event. The following resolutions were unanimously passed in the Convention:- 1. It is resolved to request the Government to
frame policies for encouraging green construction by coming out with attractive
incentives and tax benefits towards import of technology and equipment for prefab and monolithic construction.
2. It is resolved that Government should establish a single point window for permission for projects to avoid red tape.
3. It is resolved that Government should encourage more mechanization in construction industry to reduce strain and stress.
4. It is resolved that in light of the acute labour shortage Government should encourage mechanization in our industry.
5. It is resolved that Government should consult the Consortium of Construction Association formed among BAI, CREDAI, IGBC, NHBF and CFI, before announcing policy decisions concerning the construction industry.
6. Construction activities with major thrust on
infrastructure spending more than Rs.46 lakh crores in the next five years (which is approximately 10% GDP) boosting the economy as well as the standard of life of people are aimed at by the Government, therefore it is resolved to eatablish a separate ministry for construction industry for bfaster implementation of the projects.
7. It is resolved to request both Central and State
Governments to rationalize and simplify the proposed GST to cover all materials and services in the construction industry without any exclusions.
8. It is resolved to request the Central Government
to provide, the eligibility period of 60 days for the construction industry workers, at par with workers of Cine and Newspaper Industries for the Provident Fund and ESIC benefits.
39TH IFAWPCA C ONVENTION Shri Cherian Varkey, President led a strong delegation of more than 50 members comprising from almost all States in India to the 39th IFAWPCA Convention held at Hong Kong between 15th – 18th November 2011. The theme of the Convention was “Built on Collaboration & Fair Contract Terms”. In the said Convention, Shri J.R. Sethuramalingam and Shri S.Narasimha Reddy were the Assembly Delegates. Shri K.V. Rangaswamy, former Vice President of L&T, ECC Division was the Executive Board Member. In the said Convention, BAI’s Past President, Shri Ajit Gulabchand was appointed as the President of IFAWPCA and Shri M.V. Antony was appointed as the Secretary General of IFAWPCA. Both Shri Ajit
Gulabchand and Shri M.V. Antony officially took charge as IFAWPCA President and Secretary General of IFAWPCA, respectively during the concluding General Assembly of IFAWPCA held on 18th November 2011. Shri K. Lava, Chairman, Organising Committee of 40th IFAWPCA Convention have presented a CD on the arrangements of ensuing 40th IFAWPCA Convention to be held at Cochin between 6th – 9th January 2013. In his address he requested the presence of maximum delegates from all IFAWPCA Member Countries. Regular Members of IFAWPCA � Master Builders Australia
� Bangladesh Association of Construction
Industry
� Taiwan General Contractors Association
� The Hong Kong Construction Association
� Builders’ Association of India
� Asosiasi Kontraktor Indonesia (Indonesia Contractors Association)
� Overseas Construction Association of Japan, Inc.
� Construction Association of Korea, South Korea
� Master Builders Association
� Maldives Association of Construction Industry
� Federation of Contractors Association of Nepal
� New Zealand Registered Master Builders’ Association
� Philippine Constructors Association, Inc.
� Singapore Contractors Association Ltd.
� National Construction Association of Sri Lanka
� Thai Contractors Association The 40th IFAWPCA Convention will be held in Kochi, India, between 6th and 9th January 2013. The theme for the 40th IFAWPCA Convention is ‘Responsible Infrastructure’. VISHWAKARMA AWARDS Construction Industry Development Council (CIDC) constituted a Committee under the Chairmanship for
felicitating outstanding contractors and construction artisans for their contribution. The ‘CIDC Vishwakarma Awards’ for 2011 were presented at a glittering ceremony at Stein Auditorium, India Habitat Centre, New Delhi, on 10th March 2012. Shri Virbhadra Singh, Hon’ble Union Minister of Micro, Small and Medium Enterprises, Government of India, was the Chief Guest. Some BAI member companies and many senior functionaries of BAI were recipients of some of the awards. They are:- I. Award for Best Project. 1) M/s. Akshaya Pvt. Ltd. 2) M/s. Ktech Engineer Builders Co. Pvt. Ltd. 3) M/s. Kunnel Engineers & Contractors (P)
Ltd. 4) M/s. Everest Industries Limited 5) M/s. B.G. Shirke Construction Technology
Pvt.Ltd. 6) M/s. Ashiana Homes Pvt. Ltd. 7) M/s. Hindustan Construction Co. Ltd. 8) M/s. Valecha Engineering Limited 9) M/s. Shantilal B. Patel 10) M/s. Aarvee Associates Architects
Engineers & Consultants Pvt. Ltd. II. Award for Construction Health, Safety & Environment. 1) M/s. JMC Projects (I) Ltd. 2) M/s. B.E. Billimoria & Co. Ltd. 3) M/s. Petron Civil Engineering Pvt. Ltd. III. Jury Special Award – Life Time Achievement Late Dr. Som Datt IV. Award for Social Upliftment 1. M/s. Ramky Foundation 2. M/s. Bharat Petroleum Corporation Ltd. 3. Mr. Haji C.H. Aboobacker V. Award for Industry Doyen Mr. Alla Ayodhya Rami Reddy, Chairman, M/s. Ramky Infrastructure Limited VI. Award for Best Professionally Managed Company (Turnover Rs.500 to 1000 Crores) M/s. Petron Civil Engineering Pvt. Ltd. BAI WEBSITE ‘www.baionline.in’ BAI launched its website ‘www.baionline.in’ at the Managing Committee Meeting at Nashik on 9th August 2008. With the launch of www.baionline.in,
BAI too aims at giving its members top-of-the-line service. As of now www.baionline.in offers the following services : � All circulars meant for BAI Centres and senior
functionaries will be hosted. � Important Judgements, Circulars and
Notifications by Government(s) and /or Departments will be hosted.
� Tender information. � Latest Price Index Numbers. � Construction industry related exhibition/trade
fair information. � Information on all publication of BAI and its
Centres. � Details of office-bearers of BAI. � Links to important websites i.e. like minded
national & international organisations, Government organisations concerning having dealings with construction industry, service providers, construction companies, etc.
BAI members / visitors can download : � BAI Constitution (BAI Rules & Regulations) � Membership Application Form � Membership Data Updation Form BAI members can get their membership number through www.baionline.in. Services to be introduced over a period, include : � Website based email service to BAI members. � ‘News & Discussion Board’ – news concerning
the construction industry will be hosted and members/visitors can air their opinion on the same.
� ‘Meeting Room’ – akin to the concept of ‘chatting’, senior functionaries can hold meetings via video conferencing.
� Archives of ‘Indian Construction’ and other publications by BAI Centres.
� Total detailed membership database of BAI. ‘Wheeling & Dealing’ – is a platform for BAI members and others for offering machinery to be given on hire or request machinery on hire / offer specialised service or request for specialised service, etc. FINANCE OF THE ASSOCIATION Though Headquarter was generating surplus for the last 10 years, payment of Service Tax and Income Tax from the General Fund of the Headquarter coupled with no interest receipt on Corpus Fund FD being kept for obtaining Overdraft created a cash crunch situation at BAI. However, due to the timely
involvement of the Trustees, Office Bearers of the Headquarter and major Centres, the financial situation is brought under control. FUNCTIONS OF BAI HEADQUARTER OFFICE BAI Headquarter and BAI Delhi Office with a staff of 14 members functioning exceptionally well under the guidance of Executive Secretary, Shri Raju John. M EETINGS During the financial year under report, 5 (five) Managing Committee and 5 (five) General Council Meetings were held at:
� Cochin on 30th April 2011 � Chennai on 16th July 2011 � Delhi on 23rd September 2011 � Mysore on 27th January 2012 � Kolkatta on 16th March 2012
COMMITTEES The Managing Committee authorised the President, Shri Cherian Varkey to re-constitute the Committees for the year 2011-2012. Accordingly, the following Committees were constituted with its Chairpersons as under: - Name of Committee Chairpersons
Arbitration
:
Dr. Kirti Dave
Banking & Finance : Shri V. Ganesan
CIDC Co-ordination : Shri H.S. Pasricha
CPWD Co-ordination : Shri Ved Khurana
Cement Action : Shri B. Seenaiah
Contract Conditions : Shri L. Moorthi
Corporate Communications
: Shri D.L. Desai (Shankarbhai)
Consortium of Associations
: Shri Shivarama Krishnan
Goods & Service Tax : Shri D.C. Awasthi
Grievances : Shri P.R. Mundle
Housing & Real Estate : Shri G. Ramamoorthi
IFAWPCA Co-ordination
: Shri Cherian Varkey
Indian Construction Bulletin
: Shri D.L. Desai (Shankarbhai)
Infrastructure Development
: Dr. S. Vijaya Kumar
ISO & Environment & Green Building
: Shri K. Lava
Mechanisation of Construction
: Shri K.K. Taparia
Membership Development
: Shri Sushanta Kumar Basu
Military Engineering Services
: Shri Rahul Garg
Public Relations : Shri R. Murugan
Railway Co-ordination : Shri S.G. Tantia
Skill Development : Shri S.I. Chunkhare
BAI M EMBERSHIP/AFFILIATIONS � Affiliated to International Federation of Asian &
Western Pacific Contractors’ Associations (IFAWPCA).
� Founder Member of Construction Industry Development Council (CIDC), New Delhi.
� Member of Indian Merchants’ Chamber, Mumbai.
� Member of Indian Council of Arbitration, New Delhi.
� Member of Employers’ Federation of India, Mumbai.
� Member of Indian Roads Congress.
� Member of Federation of Indian Chambers of Commerce & Industry, New Delhi.
BAI’ S REPRESENTATIVES ON VARIOUS COMMITTEES • Shri Cherian Varkey as Member, Board of
Governors of National Institute of Construction Management & Research.
• Shri Cherian Varkey as Member, Board of Governors of Construction Industry Development Council (CIDC).
• Shri Cherian Varkey, Member, Board of Governors of National Academy of Construction (NAC).
• Shri Cherian Varkey, Member, Review Committee for Contract Management System formed by Ministry of Statistics & Programme Implementation (MOSPI).
• Shri Cherian Varkey, Member, National Council of Construction Federation of India (CFI).
• Shri Cherian Varkey in the focus group formed for WTO.
• Dr. Brahm Datt, Past President & Past Trustee represent BAI on the Working Group of Construction constituted by Planning Commission for the 11th Five year Plan (2007-12).
• Dr. D. Thukkaram as Board Member on the Executive Board of IFAWPCA.
• Shri Ram M. Bhatia on the Expert Committee and Shri L.D. Kotwani on the State Level Advisory Committee of Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996 for Government of Maharashtra.
• Shri Anand J. Gupta on Central Advisory Committee constituted by the Ministry of Labour, Government of India, under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996.
• Shri H.S. Pasricha, Member, Central Advisory Contract Labour Board, Ministry of Labour, Government of India.
OFFICES OF BAI CENTRES There has been a growing trend amongst BAI Centres to go in for their own office premises, with facilities for conducting meetings, training, etc. The premises owned by these Centres are registered under the name of “Trustees Builders’ Association of India”. As on date, the Centres who have their own office premises are Andhra Pradesh (Hyderabad), Delhi, Eastern (Kolkata), Karnataka (Bangalore), Nanded, Nashik, Rajasthan (Jaipur), Sangli and Southern (Chennai). Pune Centre purchased a new office premises and BAI has given an amount of Rs.10,00,000/- for purchasing the new office premises to Pune Centre. ‘I NDIAN CONSTRUCTION ’ Journal Shri D.L. Desai (Shankarbhai) was the Chairman, Indian Construction Journal Committee for 2011-2012. The printing of the magazine has been continued with a marked change and your journal is becoming more and more popular. The journal has admittedly established a numero-uno position in construction related trade magazines as is evident from non-member subscribers, which includes, Engineering Institutes, Government Departments and Undertakings including many Works Authorities. The Association is also sending around 1000 complimentary copies to like-minded organisations in the country and abroad. The rising paper, printing and postal costs may make it difficult to repeat the financial performance for the ensuing year.
ORGANISATIONAL ELECTION 2011-12 The Managing Committee, in its Meeting held at Mumbai on 9th Febraury 2011, approved the Election Programme for the year 2011-12 and appointed Shri Raju John, Executive Secretary as the Returning Officer. The Election was conducted as per the Constitution and the result of the same was declared on 30th March 2011 at 5.00 P.M. Following are the Office Bearers of BAI for the year 2011-12:- President : Shri Cherian Varkey Vice Presidents : Shri J.R. Sethuramalingam Shri Lal Chand Sharma Shri Uttam Chand Jain Shri Ravindra Pradhan Hon. General Secretary : Shri Mahesh M. Mudda Hon. General Treasurer : Shri Anand J. Gupta Imm. Past President : Shri Bhagwan J. Deokar State Chairmen / State Co-ordinators: Shri P. Mohan Reddy (Andhra Pradesh) Shri Manikant (Bihar) Shri N.R. Prasher (Chattisgarh) Shri Ved Khurana (Delhi) Shri Upendra J. Barot (Gujarat) Shri Naresh M. Singh (Jharkhand) Shri P. Subramani (Karnataka) Shri John Paul K. (Kerala) Shri Suresh Vaswani (Madhya Pradesh) Shri Baburao L. Shakkarwar (Maharashtra) Shri Ashok Agarwal (Rajasthan) Shri M. Gopalakrishnan (Tamil Nadu) Shri Ravindra Tyagi (Uttar Pradesh) Shri Pradip Kumar Mukherjee (West Bengal) BAI M EMBERSHIP SUBSCRIPTION . The subscription for various categories of membership with the Association were as follows :- Annual Membership Annual Subscription Rs.2,400 Entrance Fee Rs. 100 ‘I NDIAN CONSTRUCTION’ Rs. 100 Service Tax Rs. 268
Total Rs.2,868 Patron Membership One time subscription – Membership for 20 (Twenty) years.
Rs.25,000
Service Tax Rs. 2,575 Total Rs.27,575
Affiliated Association Membership Annual Subscription Rs. 4,400 Entrance Fee Rs. 500 ‘I NDIAN CONSTRUCTION’ Rs. 100 Service Tax Rs. 515
Total Rs. 5,515 Affiliated Association – Patron Membership Membership (One time subscription) Rs.30,000 Service Tax Rs. 3,090
Total Rs.33,090 Corporate Membership Memberships (One time subscription)
Rs.3,00,000
Annual Subscription Rs. 10,000 Service Tax Rs. 31,930
Total Rs.3,41,930 NEW CENTRES. During the year, the Managing Committee sanctioned opening of new Centres at Faridabad, Kanpur-South, and Thiruvalla. M EMBERSHIP STRENGTH . As on 31st March 2012, the membership was 12620, which included 8598 Patron Members and 4022 Annual Members. BAI AWARDS. BAI Awards for 2010-11, for different categories were announced at the 70th Annual General Meeting of the Association held at Pragati Maidan, Delhi, on 22nd September 2011. Trophies and Certificates of Award were issued to the following winner Centres at the concluding function of XXV All India Builders’ Convention held on 29th January 2012 at Mysore. 1. Overall Best BAI Centre (Below 200 Members)
Mysore Centre.
2. Overall Best BAI Centre (Above 200 Members) – Southern (Chennai) Centre.
3. Image Building Activities by a Centre – Karnataka (Bangalore) Centre.
4. Organising Best Training Programme or Seminar – (i) Pune Centre, and (ii) Tirunelveli Centre.
5. Maximum Annual Membership Growth – (i) Erode Centre, and (ii) Dhule Centre.
6. Best Efforts by any Centre for Quality Construction – Delhi Centre.
7. Best Builders’ Day Celebrations – (i) Ulhasnagar Centre and (ii) Nashik Centre.
8. Maximum Membership Retention – (i) Madurai Centre, and (ii) Gujarat (Ahmedabad) Centre.
9. Best Publication by a BAI Centre – Mumbai Centre.
10. Special Award – Jodhpur Centre
BUILDERS ’ DAY 2011. The theme for the ‘Builders’ Day 2011” was ‘Green Struct – Mechanise towards Sustainability’. Builders’ Day was celebrated by almost all Centres in a befitting manner. BLACK SUNDAY FOR BAI It is no dubt that it was one of the saddest day in BAI history, when eight (8) senior functionaries of BAI from Tiruchirapalli Centre, who attended the Managing Committee and General Council Meetings of BAI on 23rd September 2012, perished in a tragic air crash in Nepal on Sunday, the 25th September 2011. Shri M. Manimaran, Shri V.M. Kanakasabesan, Shri Kaatoor Magalingam, Shri M. Maruthachalam, Shri A.K. Krishnan, Shri T. Dhanasekaran, Shri Meenakshisundaram and Shri K. Thyagarajan had all gone to Nepal to unwind from their hectic business life and fate failed them. Shri M. Manimaran was the Chairman of Tiruchirappalli Centre; Member Institute of Valuers and an active Rotarian. Shri V.M. Kanakasabesan, was General Council Member of BAI representing Tiruchirapalli Centre; President-Elect, Rotary Club of Tiruchirappalli; Past Chairman, Institute of Valuers, Tiruchirappalli Chapter and Member, Civil Engineers Federation. Shri Kaatoor Magalingam, was also a General Council Member of BAI representing Tiruchirappalli Centre and a leading real estate developer. Shri A.K. Krishnan, was also an active Rotarian and was Chairman of its Annual Book Fair and a leading real estate developer. Shri Meenakshisundaram, was also an active Rotarian and a leading real estate developer. Shri M. Maruthachalam is credited of being the pioneer of developing housing flats in Tiruchirappalli and was the Past Chairman of Institute of Valuers. Shri T. Dhansekaran was also a leading real estate developer and Shri K. Thyagarajan was a specialist in pile foundations. They have been credited with changing the skyline of Tiruchirapalli. It was a moment of grief for the entire BAI community. Senior functionaries of BAI who had rubbed shoulders and interacted just couple of days ago with their colleagues from Tiruchirapalli Centre, in the Managing Committee and General Council meetings in New Delhi, found it hard to believe that their colleagues are no more.
Senior functionaries of BAI from across India attended the funeral of the deceased persons. BAI Headquarters was represented by Shri Bhagwan J. Deokar, Imm. Past President; Shri Anand J. Gupta, Hon. Gen. Treasurer; Shri C.G. Deochake, Past Hon. Gen. Treasurer and Shri Raju John, Executive Secretary, BAI. There was an out pouring of grief from BAI Centres across the country. Many Centres sent messages of condolence to Tiruchirapalli Centre. Almost all Centres of BAI convened ‘Condolence Meetings’. The print and electronic media covered the sad news in a befitting manner. OBITUARIES : The Association lost the following members who left for their heavenly abode. BAI in their death has lost sincere and hardworking members. � Shri K. Prasannakumar, founder Member of BAI
Alleppey Centre.
� Shri R. Alaguvel, sitting Generall Council Member of Southern (Chennai) Centre.
� Shri K. Suryanarayana, Past State Chairman, Tamil Nadu.
� Shri V.K. Jain, Patron Member from Pune Centre.
� Shri N.A. Samant, Past Executive secretary, BAI.
� Shri C. Vinod Kumar Bansal, Patron Member from Delhi Centre.
� Shri R.M. Chokshi, Past Hon. General Secretary, BAI.
� Shri Om Prakash Saraf, Past Chairman, Jharkhand (Ranchi) Centre.
� Shri Ramashish, General Council Member from Jamshedpur Centre.
� Shri M. Manimaran, Chairman, Tiruchirapalli Centre.
� Shri V.M. Kanakasabesan, General Council Member from Trichy Centre.
� Shri Kaatoor Magalingam, General Council Member from Trichy Centre.
� Shri M. Maruthachalam, Member from Trichy Centre.
� Shri A.K. Krishnan, Member from Trichy Centre.
� Shri Meenakshi Sundaram, Member from Trichy Centre.
� Shri T. Dhansekaran, Member from Trichy Centre.
� Shri K. Thyagarajan, Member from Trichy Centre.
� Shri Praphulla Kumar, Past State Chairman, Kerala.
� Shri Pawan Kumar Patodi, Past Chairman, Rajasthan (Jaipur) Centre.
� Dr. Som Datt (Brother of Dr. Brahm Datt, Past President & Past Trustee).
� Shri K. Mani, Patron Member from Shimoga Centre.
� Shri Harbanslal Aurora, Past President, BAI.
� Shri Parasala Divakaran, Past Chairman of BAI Kerala (Trivandrum Centre).
NOTES
ATTENDANCE SHEET FORMING PART OF ANNUAL REPORT FOR THE YEAR 2011-2012
ATTENDANCE (out of five meetings)
Name Attendance Name Attendance Shri Cherian Varkey, President 5 Special Invitees to the Managing
Committee
Shri J.R. Sethuramalingam, Vice President 4 Shri V.M. Fazal Ali 3 Shri Lal Chand Sharma, Vice President 5 Shri V.S.K. Moorthy 3 Shri Uttam Chand Jain, Vice President 4 Capt. George Thomas 1 Shri Ravindfra Pradhan, Vice President 3 Shri C.K.S. Panicker 1 Shri Mahesh M. Mudda, Hon. Gen. Secretary 4 Shri Kishor C. Joshi 1 Shri Anand J. Gupta, Hon. Gen. Treasurer 4 Shri Sanjay Walchand Sanghavi 0 Shri Bhagwan J. Deokar, Imm.Past President 5 Shri Kishore Viramgama 1 State Chairmen / State Co-ordinators Shri Thomas Joseph 0 Shri P. Mohan Reddy (Andhra Pradesh) 5 Shri Smit Kaneria 0 Shri Suresh Vaswani (Madhya Pradesh) 1 Shri B. Chandra Mohanan 1 Shri Ved Khurana (Delhi) 3 Shri Uday N. Gokhale 0 Shri N.R. Prasher (Chattisgarh) 2 Shri Sandip A. Tare 0 Shri Upenda J. Barot (Gujrat) 2 Shri A.R, Ravindra Bhat 2 Shri Naresh M. Singh (Jharkhand) 1 Shri R. Balakrishnan 1 Shri P. Subramani (Karnataka) 4 Shri Santosh R. Navle 3 Shri John Paul K.(Kerala) 4 Shri R.D. Khandelwal 0 Shri Baburao Shakkarwar (Maharashtra) 2 Shri Nitin M. Shah 1 Shri M. Gopalakrishnan (Tamil Nadu) 3 Shri Kapil Gupta 2 Shri Ravindra Tyagi (Uttar Pradesh) 1 Shri Muralidhara 4 Shri Pradip Kumar Mukherjee (West Bengal) 2 Shri Prem Karamchandani 1 Shri Manikant (Bihar) 4 Shri Basavaraj S. Totad 2 Shri Ramesh Premaraj Marda 2 Members of the Managing Committee Shri Jignesh J. Seth 0 Shri M. Dhandavakrishnan 3 Shri C.H. Aboobakker Haji 1 Shri Sushanta Kumar Basu 4 Shri N.J. Mathew 0 Shri K. Subramani 4 Shri Joshy Chandy 1 Shri Prabir Kumar Mukherjee 3 Shri Jacob Mathew Vellapally 1 Shri S. Natarajan 1 Shri M.S.K. Vasudeva Rao 0 Shri G.C. Gupta 1 Shri R. Prakash 1 Shri Iqbal Wahid 0 Shri P. Vimalan 0 Shri Mahendra Kumar Sethi 3 Shri K. Muruganandam 1 Shri K. Viswanathan 5 Shri Subhash Sharma 0 Shri R.K. Jain 1 Shri Rajeev Agarwal 1 Shri M.M. Mohandas 4 Shri B.D. Narang 0 Shri A. Puhazhendi 4 Shri Surendra Sharma 0 Shri A. Chamaraja Reddy 3 Shri R. Saravanan 1 Shri P.K.P. Narayanan 2 Shri C. Kumaravelu 0 Shri R. Ambikapathy 3 Shri R. Murugesan 0 Shri R. Ethirajan 4 Shri K. Annamalai 5 Past Presidents Shri T.V. Ramakrishnan 2 Shri B.N. Dikshit 3 Shri A.N. Balaji 2 Shri H.S. Dugal 0 Shri G. Ved Anand 2 Dr. Brahm Datt 1 Shri Alex Cyriac 4 Shri Shriprakash Goel 4 Shri Shri Bhopinder R. Lal 2 Shri C. Raghava Reddy 2 Shri Avinash M. Patil 2 Shri A.S. Chinnaswamy Raju 3 Shri Appu Wadhwani 0 Shri V. Ramachandran 4 Shri K.P. Baney 0 Shri R. Radhakrishnan 5 Dr. Taro T. Manghnani 5 Shri M.N. Rajaraman 0 Shri Jagdish M. Parekh 1 Shri M. Karthijeyan 2 Shri R.P. Selvasundaram 1 Shri A.K. Yussouf 4 Shri S.K. Pradhan 0 SHri P.R. Mundle 3 Shri Dilip Kumar Banerjee 1 Shri H.J. Shah 0 Shri Sanjay Tyagi 1 Shri Ajit Gulabchand 0 Shri N. Nagesh Reddy 2 Shri N.D. Golani 0 Shri O.K. Selvaraj 3 Shri S.A. Vichare 1 Shri L. Moorthi 3 Shri Lalit Sangtani 0 Shri Mu Moahan 4 Shri S. Ganapathi 4
Shri R. Sivakumar 3 Chairpersons of Committees Shri G. Ramamoorthi 4 Dr. Kirti Dave 0 Shri S. Ayyanathan 2 Shri V. Ganesan 0 Shri Mathew Alex Vellapally 0 Shri B. Seenaiah 4 Shri P.P. John 1 Shri Shivrama Krishnan 0 Shri M.V. Antony 4 Shri D.C. Awasthi 5 Shri N. Sachitananda Reddy 5 Dr. S. Vijay Kumar 1 Shri K. Sriram 2 Shri K. Lava 3 Shri M.S. Nandakumar 3 Shri K.K. Taparia 0 Shri D. Kempanna 5 Shri Rahul Garg 0 Shri K.J. George 2 Shri R. Murugan 2 Shri Mohanlal S. Katariya 1 Shri S.G. Tantia 0 Shri S.I. Chunkhare 3 Shri L.D. Kotwani 0 Representing Affiliated Associations Shri Harshad N. Bhayani 4 Shri S. Pandiyen 0 Dr. Narendra D. Patel 2 Shri Girish N. Manapure 0 Shri Ram M. Bhatia 2 Trustees Members co-opted to Managing Committee Dr. D. Thukkaram 5 Shri P.K. Ramachandran 2 Shri P. Jayapal 3 Shri K. Basavaraja Gowda 2 Shri P. Kandaswamy 5 Shri Vinodbhai C. Patel 1 Shri D.L. Desai (Shankarbhai) 5 Shri P.M. Harshe 0 Shri Mohan D. Bhate 4 Shri Lal Chand Ralhan 1 Shri Narendra Kumar 5
Estd. 1941
BUILDERS’ ASSOCIATION OF INDIA MANAGING COMMITTEE 2012-2013
President
Shri B. Seenaiah
Vice Presidents
Shri D.C. Awasthi Shri K. Viswanathan Shri Ranjeet More Shri Ravindra Pradhan
Hon. Gen. Secretary
Shri Anand J. Gupta
Hon. Gen. Treasurer
Shri Mahesh M. Mudda
Imm. Past President Shri Cherian Varkey
Trustees
Shri D.L. Desai Dr. D. Thukkaram Shri Lal Chand Ralhan Shri Mohan D. Bhate
Shri Narendra Kumar Shri P. Jayapal Shri P. Kandaswamy
State Chairmen / Co-ordinator
ANDHRA PRADESH CHATTISGARH DELHI GUJARAT Shri P. Mohan Reddy Shri Lalit Kumar Oswal Shri Arun Sahai Shri Bhupesh P. Shah
JHARKHAND KARNATAKA KERALA MADHYA PRADESH
Shri T.C. Mohanty Shri V. Srinivasa Murthy Shri Alex P. Cyriac Shri Suresh Vaswani
MAHARASHTRA RAJASTHAN TAMIL NADU UTTAR PRADESH Shri Manoj L. Potekar Shri Ashok Agarwal Shri Mu Moahan Shri R.P. Gupta
WEST BENGAL Shri G.C. Gupta
Members
Shri A. Chamaraja Reddy Shri Abhay Garde Shri Avinash M. Patil Shri Baburao L. Shakkarwar Shri Bhopinder R. Lal Shri C. Devarajan Shri D. Kempanna Shri D.R. Sekar Dr. D. Thukkaram Dr. Narendra D. Patel Shri G.M. Ravindra Shri H.N.Vijaya Raghava Reddy Shri Harkant G. Vachharajani Shri Harshad N. Bhayani Shri J.R. Sethuramalingam Shri Jagdish Parekh Shri K. Annamalai Shri K. Basavaraja Gowda Shri K. John Paul Shri K. Lava Shri K. Rajavel Shri K. Sriram Shri K. Subramani Shri K.J. George Shri K.P. Baney Shri L. Moorthi Shri Lal Chand Sharma Shri M. Dhandavakrishnan Shri M.A. Jesurajarajan Shri M.M. Mohandas Shri M.R. Navaneethakumar Shri M.S. Nandakumar Shri Mohan Katariya Shri N. Raghunathan Shri N. Sachitananda Reddy Shri N.R. Prasher Shri Nimesh D. Patel Shri O.K. Selvaraj Shri Prabir Kumar Mukherjee Shri Pratap Salunkhe Shri R. Ethirajan Shri R. Murugan Shri R. Parthiban Shri R. Sivakumar Shri R.P. Selvasundaram Shri Ram Janam Sinth Shri Ram M. Bhatia Shri Ravindra Tyagi Shri S. Ganapathy Shri S.D. Kannan Shri S.I. Chunkhare Shri S.K. Pradhan Shri V.S. Selvaraaj Shri V.S.K. Moorthy Shri Vinod C. Gamdiwala Shri Y. Ishwar Rao
Co-opted Members
Shri K. Appi Reddy Shri P.K. Ramachandran Shri P. Narasimhulu
Special Invitees Shri B.D. Narang Capt. George Thomas Shri Girish I Patel Shri H.V. Nagesh Shri K. Sudarshan Reddy Shri Kapil Gupta Shri Manikram J. Halbe Shri Mohamed Iqbal Qureshi Shri Nandkumar Jethani Shri Rajeev Agarwal Shri S. Saravana Kumar Shri S.P. Shamanna Reddy Shri Santosh Lodha Shri Santosh R. Navle Shri Shiv Kumar Sharma Shri V. Shivarajan
Builders’ Association of India
(All India Association of Engineering Construction Contractors)
ESTD. 1941
Report of Centres
2011 – 12
www.baionline.in
Reports from BAI Centres
ADILABAD CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 11th December 2011. Shri P. Mohan Reddy, State Chairman, BAI Andhra Pradesh; Shri V. Sudhakar, Chairman, Andhra Pradesh (Hyderabad) Centre and Shri K. Sudarshan Reddy, Advisor, BAI Andhra Pradesh, amongst many others also graced the occasion. AHMEDNAGAR CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 21st May 2011. Shri S.B. Tamsekar, Chief Engineer, Mumbai Region, Maharashtra PWD was the Chief Guest.Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra was the Guest of Honour. Shri Jawahar Mutha, Past Vice President, BAI; Shri Anil Sonawane, Past Chairman of the Centre; and Shri Vaibhav Joshi, BAI General Council Member from the Centre also graced the dais during the function. ALLAHABAD CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 12th June 2011. Shri Dhanwant Lal Gupta, Past Vice President, BAI, was the Chief Guest. Past Office Bearers and senior functionaries were present in strength for the function. The Year 2011-12 is the Golden Jubilee Year of the Centre. A general body meeting of the Centre was held on 15th August 2011, The Centre celebrated ‘Independence Day’ on the same day. Issues confronting the construction industry I Allahabad, Uttar Pradesh and India in general were taken up for discussion along with BAI organisational matters. On 16th August, 2011, a joint rally by the Centre and MES BAI, Allahabad Centre was organized to express solidarity with Mr. Anna Hazare in his fight against corruption. A ‘candle light march’ was also organised and culminated in a press conference. A General Body meeting of Members of the Centre was held on 23rd October 2011. The meeting began with the lighting of the traditional lamp by Past Chairmen of the Centre viz. Shri N.S. Darbari, Shri P.K. Jain, Shri Satish Kapoor and Shri R.K. Garg. Apart from briefing members about the happenings in BAI on the national front and about the various issues being tackled by BAI, issues confronting the construction industry at local level were discussed. On 20th November 2011, a General Body Meeting-cum-Picnic (family get-together) was arranged by the Centre. Variety of games, contests, etc. were organised apart from an informal meeting of the
members. BAI members and their families participated in the event enthusiastically. ANDHRA PRADESH (HYDERABAD) CENTRE ‘International Seminar on Green Buildings’ was organised by Contractors Development Institute, Hyderabad on 8th February 2012. Shri Walter Williams from USA was the main speaker. The Centre also participated in the Seminar in a big way. Installation function of the office bearers of the Centre for 2011-12 was held on 15th April 2011. During the year 2011-12, the Centre has conducted 8 Executive Committee Meetings. In the meetings, issues relating to Service Tax, EPC & Non-EPC Contracts, Jalayagnam and reforms on escalation and payment problems were discussed. The Centre also participated in the SSR meeting held by the Government of Andhra Pradesh and requested the Government to enhance the rates of various items at par with market rates. The Centre with its sister concern Contractors’ Development Institute (CDI) has launched a one year Diploma Programme on “Graduate Diploma in Building & Infrastructure Contracts and Real Estate Management”. BARAMATI CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 11th April 2011. Shri Imtiaj Shikilkar, President, Baramati Municipal Corporation; Shri Vijaysinh Deshmukh, Deputy Collector; Shri Himmat Kharade, Tahashildar; Shri D.D. Kale, Town Planning Officer, Baramati Municipal Corporation; Shri C.K. Taware, Former Chairman, MSSK; Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra and Shri Sushil Jadhav, Past Chairman of the Centre, were the Guests of Honour. BELGAUM CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 26th March 2011. Shri Cherian Varkey, President, BAI, was the Chief Guest during the installation function. Shri Abhayji Patil, MLA, Belgaum South; Shri P. Subramani, State Chairman, BAI Karnataka and Shri M.V. Antony, Past Chairman, BAI Kochi Centre also graced the occasion. The installation function was attended by large number of members, their families, local invitees. The function received wide coverage in the local media.
The Centre organised Belcon ’11 Mega Construction Exhibition, between 9th and 13th December 2011.Shri Sushil Mantri, Chairman, Confederation of Real Estate Developers’ Associations of India (CREDAI), Karnataka State inaugurated the Exhibition. Nearly 72 real estate developers, building material manufacturers, service providers, etc. showcased their offerings and reported record business. BHOPAL CENTRE During the year 2011-12, six meetings were conducted by the Centre, in which various problems being faced by the members were discussed and action plan was made to solve the problems Interactive meetings were held with the Senior Officers of various Works Authorities and allied Departments and representations were made to them. The centralised enlistment introduced in June 2011, being successfully implemented due to the persistent efforts of members’ fraternity. Logistical assistance provided to the administration for the successful implementation of the Pulse Polio Programme. Blankets distributed to the labour and other needy people to help them cope with the winter weather. Candle March taken out to express solidarity with Shri Anna Hazare. Efforts are on with the help of the members of other Centres in the State to identify and start new Centres. CHENGALPATTU CENTRE On 8th June 2011, the ‘Bhoomi Pooja’ i.e. ground breaking ceremony for the building of “Chengalpattu Centre Builders’ Welfare Trust” (CCBWT) was done. CCBWT is an organiszation under the aegis of BAI Chengalpattu Centre. Office Bearers, Executive Committee Members, General Council Members and Well-Wishers of the Centre were present on the occasion. Installation function of the office bearers of the Centre for 2011-12 was held. Shri V. Somasundaran, MLA, Tamil Nadu was the Chief Guest and Dr. Prabhat Kumar, Director, Bharatiya Nabhikiya Vidyut Nigam Ltd., Kalpakkam, was the Guest of Honour. The Centre celebrated Builders’ Day on 31st October 2011. Shri T.K.M. Chinnayya, Minister for Backward Classes, Environment & Pollution Control and Minority Welfare, Government of Tamil Nadu was the Chief Guest. Shri V. Somasundaram, MLA, delivered the key-note address on the theme ‘Green Struct – Mechanise towards Sustainability’. Shri V. Ramachandran, Past President & Past Trustee, BAI and Shri A. Puhazhendi, Past Vice President, BAI,
were the Guests of Honour. Mrs. Mythili Thirunaukarasu, Chairperson, Kanchipuram Council; Shri R.T. Sekar, Vice Chairman, Kanchipuram Municipal Council and Shri Jeevanandam, Union Chairman for Panchayat (surrounding of Kanchipuram), were also present on the occasion. Around 400 workers of BAI members were given gifts on that day. CHITRADURGA CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 30th March 2011. Shri A.S. Chinnaswamy Raju, Past President & Past Trustee, BAI was the Chief Guest. Shri A. Chamaraja Reddy, Imm. Past State Chairman, Karnataka; Shri K. Appi Reddy, Imm. Past Vice President, BAI; Shri P. Subramani, State Chairman, Karnataka, also graced the occasion. A General Body Meeting of the Centre was held on 9th January 2012. Shri P. Subramani, State Chairman, BAI Karnataka was the Chief Guest. COIMBATORE CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 23rd April 2011. Shri Cherian Varkey, President, BAI, was the Chief Guest during the installation function. Dr. R. Murugesan, Vice Chancellor, Madurai Anna University was Guest of Honour. Shri J.R. Sethuramalingam, Vice President, BAI also graced the occasion and felicitated the newly installed and his team of office bearers. The print and electronic media was present in strength and gave wide coverage to the event and BAI’s view point on various issues. DHULE CENTRE The Centre conducted tree plantation programme jointly with Suman Foundation, Dhule in July 2011. The Centre had organised a ‘Study-cum-Recreation Tour’ to Panchmarhi in Madhya Pradesh between 18th to 20th August 2011. Around 26 BAI members participated in the tour. The members studied the infrastructure development being made around a tourist spot. They also studied how the real estate building industry and civil contracting industry benefits from the activities around a tourist spot. The Centre celebrated Builders’ Day on 17th December 2011. Shri Bhagwan J. Deokar, Imm. Past President, BAI, was the Chief Guest. Shri Anand J. Gupta, Hon. Gen. Treasurer, BAI was the Keynote Speaker. Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra and Shri Avinash Patil, Past State Chairman, BAI Maharashtra also graced the occasion. On 31st March 2012, the Centre organized expert lecture on ‘Plumbing Practices in Civil Engineering.
DINDIGUL CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 18th April 2011. Shri V. Ramachandran, Past President & Past Trustee, BAI, was the Chief Guest. Shri P. Jayapal, Trustee, BAI; was the Guest of Honour. Shri M. Dhandavakrishnan, Managing Committee Member, BAI, Shri S. Boobesh Guru, General Council Member of BAI, also graced the occasion, A technical lecture on ‘Partition Boards’ was organised by the Centre on 27th May 2011. Many BAI members along with their architects and consultants attended the meeting. On 24th June 2011, the Centre arranged a debate on ‘Valvatharkkup Porul Vendum : Valkkailum Porul Vendum’. It was a sort of special orientation programme for BAI members. DURG-BHILAI CENTRE A joint meeting of the Executive Committee and General Body of the Centre was held on 11th May, 2011. Shri Uttam Chand Jain, Vice President, BAI, was the Chief Guest. Shri N.R. Parashar, State Chairman, BAI, Chattisgarh presided over the meeting. On the occasion, Shri Uttam Chand Jain was felicitated on him being elected as the Vice President of BAI. The media also covered the meeting. EASTERN (KOLKATA) CENTRE The Centre celebrated Builders’ Day 2011 on 20th December 2011. Shri Swapan Chakraborty and Prof. Pijush Som were the Key-note speakers. Shri S.K. Basu, Past Vice President, BAI also graced the occasion. ERODE CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 24th April 2011. Shri M. Gopalakrishnan, State Chairman, Tamil Nadu & Puducherry; Shri Stallin Munasekar, Chairman, Makkal Chinthanai Peravai; Shri C. Devarajan, Secretary, EBET College, were present during the occasion. On 27th June 2011, a lecture on ‘Human Resource Development’ was arranged by the Centre. The 65th ‘Independence Day’ was celebrated by the Centre on 15th August 2011. A ‘Blood Donation’ camp and ‘Eye Donation’ camp was organised. About 38 members donated blood and many others pledged their eyes. Office bearers of the Centre and many others from the Centre participated in the events.
During the General Meeting of the Centre on 31st October 2011, a product presentation by M/s. Venlac Paints was arranged. The Centre celebrated Builders’ Day 2011 on 25th December 2011 by organising a series of events the whole day. On the occasion, the Centre gave a donation of Rs.10,000/- to Sri Venkateswara Welfare Society (Home for Children), Erode. Also, outstanding final year Civil Engineering and Diploma students were awarded by presentation of ‘Gold Coins’. The Centre along with Coimbatore and Tiruppur Centre’s of BAI, Civil Engineers Association and Coimbatore Builders & Contractors Association organised a ‘Awareness Programme-I Sand alternative to River Sand’ on 22nd January 2012. The delegates from Erode, Tiruppur and Coimbatore were taken around the plamt by technicians of M/s. I Blue Minerals Pvt. Ltd. 25 Members from the Centre had attended the 25th All India Builders’ Convention hosted by BAI Mysore Centre between 27th – 29th January 2012. GUJARAT (AHMEDABAD) CENTRE The Centre along with Gujarat Contractors’ Association (GCA) celebrated ‘Independence Day’ on 15th August 2011 by organising flag hoisting ceremony and a blood donation camp. Shri Anil Zinzuwadia, Chairman, BAI Gujarat (Ahmedabad) Centre and Shri Vinod Gamdiwala, President, GCA along with their respective team of office-bearers, senior functionaries and members participated in the events. Shri Bharat Modi, President, Gujarat Institute of Civil Engineers & Architects was also present on the occasion. ICHALKARANJI CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 7th May 2011. Shri Pratap Salunkhe, Past State Chairman, BAI Maharashtra also graced the occasion. Chairman and senior functionaries from Pune, Sangli, Kolhapur and many other Centres were present in strength for the function. Members of the centre came out in support of Shri Anna Hazare in his fight against corruption and organised ‘awareness morcha’ on 20th August 2011. State Government of Maharashtra has published a Notification on the ‘Development Control and Promotion Regulations for Municipal Councils and Nagar Panchayats in Maharashtra’. The Government has invited objections and suggestions from citizens and promoters and developers from all over Maharashtra. The Centre studied the Notification and presented a Memorandum to Shri Prithivraj Chavan,
Hon’ble Chief Minister of Maharashtra, during his visit to Ichalkaranji on 30th August 2011. JODHPUR CENTRE A grand installation function of the office bearers of the Centre for 2011-12 was held on 12th May 2011. The dignitaries present during the installation function were – Shri Niyas Mohammad, Hon’ble Mayor of Jodhpur; Shri S.P. Goel, Past President, BAI; Shri Anand J. Gupta, Hon. Gen. Treasurer; Shri Ashok Agarwal, State Co-ordinator, BAI Rajasthan; and Shri Varindar Garg, Past President, MES BAI. On the occasion, the Centre announced a ‘Scholarship Scheme’ for needy civil engineering students. KANPUR SOUTH CENTRE The Centre and Life Insurance of India Cricket Club jointly organised a T-20 Cricket Championship in the first week of December 2011. Nine teams participated in the tournament. Prize distribution ceremony was held on 7th December 2011. Shri D.C. Awasthi, General Council Member, BAI, was the Chief Guest. The event was widely covered by local media. KARNATAKA (BANGALORE) CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 17th April 2011. Shri Cherian Varkey, President, BAI, was the Chief Guest. Shri J.R. Sethuramalingam, Vice President, BAI; Shri P. Subramani, State Chairman, BAI, Karnataka; and Shri A.S. Chinnaswamy Raju, Past President & Past Trustee, BAI also graced the occasion. The 15th batch of ‘Job Oriented Training Programme for Civil Engineers’ organized by BAI Construction Academy & Research Trust (BAI CART) – a organisation under the aegis of the Centre, was inaugurated on 4th July 2011. Dr. K.N.V. Rao, Former Principal, Atria Institute of Technology was the Chief Guest. Shri P. Subramani, State Chairman, BAI Karnataka; Shri R.J. Srinivas, Chairman of the Centre; and senior functionaries of the Centre were also present on the occasion. 61 fresh Civil Engineers and 9 fresh Mechanical Engineers successfully completed the programme and certificates were awarded to them and the Engineers are now placed in reputed companies with good remuneration. The Centre celebrated ‘Independence Day’ on 15th August 2011. Shri A.S. Chinnaswamy Raju, Past President & Past Trustee, BAI was the Chief Guest and hoisted the national flag. The Sports Meet was held on 18th September 2011. Various sports were conducted for the members and their families. Shri A.S. Chinnaswamy Raju, Past
President & Past Trustee, BAI, was the Chief Guest. Prizes were distributed for the winners of various sports events. The Centre celebrated Builders’ Day 3rd and 4th November 2011. On 3rd November 2012, 175 artisans were honoured at Builders’NGV Club. The Chief Guest for the function was Shri G.S. Narayanaswamy, IAS, Secretary, Labour Department, Government of Karnataka. Shri Vasanth Kumar Hittangi, Secretary, Karnataka Building & Other Construction Workers Welfare Board was also present. On 4th November 2011, a gala function was held to celebrate Builders’ Day. Shri D.V. Sadananda Gowda, Hon’ble Chief Minister, Government of Karnataka was the Chief Guest. Shri P. Subramani, State Chairman, BAI Karnataka and Shri A.S. Chinnaswamy Raju, Past President & Past Trustee, BAI also graced the occasion. On the occasion ‘Bharatha Rathna Sir M. Visvesvaraya Memorial Award’ was conferred on Capt. Raja Rao, Former Secretary, Minor Irrigation & Environment Department, Government of Karnataka for his contribution in civil engineering field. Shri S.T. Narayana Gowda, Class I K.P.W.D. Contractor & Former President, Janatha Education Society; Shri V. Lakshminarayana, Managing Director, M/s. Nirman Shelters (Bangalore) Pvt. Ltd. And Shri K.L. Mohan Rao, Principal, Bangalore Metro Rail Corporation Limited (BMRCL) Training Institute were the three senior builders who were honoured for their outstanding contributions in the construction field. Shri S. Shiva Prakash, Hon. Secretary of the Centre attended the Interactive Session Chapter on Construction Sector for the formation of 12th National Plan held on 19th January 2012 called by Planning Commission. The Pre-Budget Meeting was called by The Commissioner of Commercial Taxes in Karnataka on 21st February 2012. Shri R.J. Srinivas, Chairman, and Shri S. Shiva Prakash, Hon. Secretary of the Centre attended the meeting and submitted a Memorandum to the Commissioner of Commercial Taxes in Karnataka. About 160 delegates from the Centre attended the 25th All India Builders’ Convention held at Mysore between 27th – 29th January 2012. KANYAKUMARI CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 4th April 2011. Shri C. Eugine Franco, Assistant Professor, St. Xaviers College, Tirunelveli, was the Chief Guest.Shri L. Moorthi, Past State Chairman, BAI Tamil Nadu & Puducherry, and Shri P. Justin Paul, founder Chairman of Kanyakumari Centre also graced the occasion.
The Centre organized an ‘International Conference on Intelligent Science & Technology’ along with Sun College of Engineering and Technology in Kanyakumari between 19th and 23rd March 2012. Shri J.R. Sethuramalingam, the then Vice President of BAI was the Chief Guest during the inauguration. Apart from the faculty and students of Sun College, faculty and students from other Engineering Colleges and BAI Members attended the Conference. KOTTAYAM CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 10th April 2011. Shri John Paul K., State Chairman, BAI Kerala; Shri Cherian Varkey, President, BAI; Shri P.K. Ramachandran, Past Vice President, BAI; and Shri P.P. John, Imm. Past State Chairman, Kerala also graced the occasion. Office Bearers and senior functionaries of all BAI Centres in Kerala attended the installation function. KUMBAKONAM CENTRE The Centre hosted the first BAI Tamil Nadu State level meeting in Kumbakonam on 23rd April 2011. Shri M. Gopalakrishnan, State Chairman, Tamil Nadu & Puducherry, Chaired the meeting. Shri J.R. Sethuramalingam, Vice President, BAI; and Shri K. Vishwanathan, Imm. Past State Chairman, BAI Tamil Nadu & Puducherry also graced the dais during the meetings. Issues confronting the building and construction industry in Tamil Nadu in particular and at national level too were taken up for discussion. Organisational matters like increasing the membership, collection of renewal membership subscription, etc. were also discussed. A post-meeting press meet was also organised, which was widely covered by the local media. MADURAI CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 7th April 2011.Shri Cherian Varkey, President, BAI, was the Chief Guest. Shri J.. Sethuramalingam, Vice President, BAI; Shri M. Gopalakrishnan, State Chairman, Tamil Nadu & Puducherry, BAI; and Shri M. Dhandavakrishnan, Managing Committee Member of BAI from Dindigul Centre also graced the occasion. On 23rd May 2011, the Centre conducted Medical Camp. About 40 members were present. It was very useful to members. The Centre organised a technical session on ‘Decentralised Wastewater Treatment System’ along with DHAN Vayalagam 9Tank Foundation) with the support of Consortium of DEWATS Dissemination Society (CDD) in Madurai on 30th August 2011. Shri V. Ramachandran, Past President & Past Trustee graced the meeting.
On 1st November 2011, a technical meeting was conducted by the Centre. More than 200 Members attended in this meeting. On 20th January 2012, the Centre conducted Quiz Programme, Drawing competition and oratorical competitions. On 12th February, 2012, in order to celebrate Builders’ Day, various competitions among Engineering Colleges and Polytechnic Colleges were arranged in the Campus of Thiagaraja College of Engineering. About 70 students were participated from 12 Institutions. The Centre celebrated Builders’ Day and Pat Chairmen Day on 10th February 2012. The Worshipful Mayor Shri V.V. Rajan Chellappa, Madurai Corporation was the Chief Guest and Deputy Mayor Shri Gopalakrishnan, Madurai Corporation and Shri V. Ramachandran, Past President & Past Trustee, BAI, were the Guests of Honour. About 180 members were attended the function. Professors of various Institutions and BAI Members in large numbers have gathered. MALEGAON CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 21st June 2011. Shri Panchgale, Chief Engineer, PWD, Nashik Division was the Chief Guest. Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra; Shri Zamare, Executive Engineer, PWD Kalwan; Shri C.D. Wagh, Executive Engineer, PWD Malegaon; Shri Mohan Katariya, Past Vice President, BAI; Shri Avinash Patil, Past State Chairman, BAI Maharashtra; Shri Joshy Joseph, Chairman, Nashik Centre and Shri Vilas Birari, Hon. Secretary, Nashik Centre, were also present on the occasion. On the occasion Shri Malunde, Deputy Engineer, PWD, Malegaon who has been transferred was given a fond farewell by the Centre. MUMBAI CENTRE The Centre organised an ‘Interactive Meeting on Service Tax, VAT and Labour Cess’ on 8th July 2011 in M.C. Ghia Hall, Mumbai. Shri S.S. Gupta, CA; Shri Rajkamal Shah, CA; Shri Manohar B. Gajare, Advocate (Retd. Dy. Commissioner of Labour, Maharashtra); and Shri Vinayak Patkar, Advocate, were the Speakers. Mementos in the form of ‘plaques’ were presented to the Speakers. The Centre took up the Sand Crisis matter with Government of Maharashtra and submitted a Memorandum to the Hon’ble Chief Minister, and also met the Revenue Secretary and Environment Secretary of Government of Maharashtra and presented them also a Memorandum. On 19th November 2011, a delegation of the Centre met Shri Prithviraj Chavan, Hon’ble Chief Minister
of Maharashtra. The BAI delegation called upon the Chief Minister to brief him about BAI’s view points on the proposed D.C. Rules vis-à-vis Mumbai City. BAI pointed out the differential treatment given to redevelopment of properties in suburbs compared to island city in terms of FSI, open spaces, open space deficiency premium, etc. During the course of discussion, the Chief Minister himself brought up the topic of MHADA / CIDCO /MMRDA acting as a real estate developer for redevelopment of slums existing on government land, instead of it being done by private builders. The BAI delegation drew the attention of CM to a proposal made earlier and had given details of these government undertakings can construct about 373997 flats at affordable rate by making profit. The issue of ‘sand policy’ was also discussed. An ‘Education-cum-Recreation Tour to Lavasa’ was organised by the Centre on 3rd and 4th February 2012. Members and their spouses from the Centre and also from Baroda Centre participated in the tour. A luxury bus was arranged from Mumbai for the purpose. A meeting of the Executive Committee of the Centre was convened on 3rd February 2012 in Dasvino Town and Country Club. Shri Neerav Parmar, Hon. Secretary of the Centre chaired the meeting. Issues like latest position of applicability of Service Tax to the Construction Industry, the recently introduced D.C. Rules in Mumbai, etc. were discussed in the meeting. On 4th February 2012, Shri Scot Wrighton, City Manager, M/s. Lavasa Corporation Ltd., gave a presentation to the BAI members in the Lavasa Experience Centre. The BAI members thereafter were taken on a tour of Dasave – the main town of Lavasa and a visit to Bamboosa – a bamboo workshop which produces bamboo products such as furniture and items of décor. The Centre hosted a meeting of the ‘BAI Western Region’ on 28th February 2012. All Chairmen, Office Bearers and senior functionaries of BAI Centres from Western Region were invited to the meeting. The meeting was basically convened in view of the ongoing ‘BAI Organisational Elections 2012-13’ and with an aim of attempting by discussion and consensus elections for posts from the Western Region to be unanimous. Shri Uttam Chand Jain, Vice President, BAI, chaired the meeting, MYSORE CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 10th April 2011. Shri K. Jairaj, IAS, Additional Chief Secretary to the Government of Karnataka was the Chief Guest. On 13th April 2011, Mrs. Anuradha Nagakumar H.S., was installed as the President for 2011-12 of ‘Spoorthi’ – the ladies wing of the Centre.Mrs. Shobha, Advocate, was the Chief Guest of the function.
The Centre along with Mysore Builders Charitable Trust (MBCT) and ‘Spoorthi’ – the ladies wing of the Centre, celebrated ‘May Day’ as ‘Labour Day’ on 1st May 2011. Shri B.A. Bhagerathi, National Champion in Javelin Throw was the Chief Guest.Various sports competitions were conducted for the workers and their families including some team events. About 400 construction workers and their families participated. Prizes were distributed for the winners of various sports events. ‘Shilpi’ – students wing of BAI Mysore Centre and Department of Civil Engineering, P.E.S. College of Engineering (PESCE), Mandya had jointly organised one day Seminar on ‘Building Construction Methodologies’ on 7th May 2011. Shri T.N. Hemanth, Chairman of the Centre inaugurated the workshop. About 50 students attended the Seminar. The Centre in association with Confederation of Real Estate Developers’ Associations of India (CREDAI), Mysore Centre, organized ‘Great Property Show – MyRealty 11’ from 20th to 22nd May 2011 in Mysore. The show was inaugurated by Ms. Pushpalath Chikanna, Worshipful Mayor of Mysore in presence of Shri L. Nagendra, Chairman, Mysore Urban Development Authority; Shri T.N. Hemanth, Chairman of BAI Mysore Centre; Shri M.B. Nagakumar, President, CREDAI Mysore Centre; Shri V.K. Jagdish Babu and Shri J.V.R. Naidhurva, Chairman & Secretary, Organising Committee, ‘Great Property Show – MyRealty 11’ respectively and other members of BAI and CREDAI. Over 30 Developers and 4 Banks participated in the show and more than 12,000 people visited the Exhibition. Shri Raikar, Commissioner of Mysore City Corporation was the Chief Guest during the ‘Valedictory Function’ of the event. A lucky draw for a ‘Maruti Alto Car’ was held amongst the persons who had booked houses in the exhibition. On 25th June 2011, the Centre organized a function ‘Prathibha Puraskara’ to felicitate meritorious children of the construction workers who scored high marks in the recently concluded S.S.L.C. and P.U.C. exams. Prof. A.J. Dhananjaya, Former Principal, Ramakrishna Institute of Moral & Spiritual Education (RIMSE) and Principal BGS College Education was the Chief Guest. On 27th June 2011, a technical presentation on ‘Membrane Structures’ was arranged by the Centre. Shri S. Prakash, Managing Trustee, Mysore Builders’ Charitable Trust (MBCT) Co-ordinated the organizing of the technical presentation. The Centre arranged financial assistance of Rs.32,000/- to Shri H.J. Surendra, a 2nd Year M.Tech (Water Resource) student from National Institute of Technology Karnataka, Mangalore.
Confederation of Real Estate Developers’ Associations (CREDAI) Mysore, which organized the first ‘CREDAI Statecon’ in association with the Centre on 23rd July wo11. The Conference was inaugurated by Shri S.A. Ramdas, Hon’ble Minister for Medical Education, Government of Karnataka & Guardian Minister for Mysore. Others present on the occasion were Shri Vijayashankar, Hon’ble Minister for Forest, Government of Karnataka; Smt. Pushpalatha Chikanna, Hon’ble Mayor of Mysore; Shri Ravindranath, Advisor to Chief Minister of Karnataka and Shri Sushil Mantri, MD, M/s. Mantri Developers. The conference highlighted on the growth of real estate in Karnataka, and goals to be achieved in the future. The conference was well attended by Principal Secretaries of various Government departments, along with well known builders. More than 600 delegates from all over Karnataka participated in the Seminar and were benefitted from the deliberations on important topics relating to the real estate in Karnataka. An informal discussion with Shri S.A. Ramdas, Hon’ble Minister for Medical Education, Government of Karnataka & Guardian Minister for Mysore was held by the Centre regarding finding a solution to be vexed sand problem. Shri Ramdas assured that a sand policy will be introduced at the earliest by the Government. On 18th August 2011, the Centre organised a ‘candle light procession’ to express solidarity with Shri Anna Hazare in his fight against corruption. Members of ‘Spoorthi’ – the ladies wing of the Centre also participated. The Centre and Mysore Builders’ Charitable Trust (MBCT) in association with M/s. Ultra Tech Cement Limited organised a 3 day Training Programme for Masons from 22nd to 24th August 2011. The programme was inaugurated on 22nd August 2011 by Dr. G.S. Suresh, HOD, Civil Engineering, National Institute of Engineering (NIE), Mysore, who was the Chief Guest. The valedictory function was held on 24th August 2011. Shri C.N. Babu, Retd. Chief Engineer, Government of Karnataka was the Chief Guest and distributed the Certificates, tool kit and stipend to the workers who competed the programme. More than 85 construction workers participated in the 3 day training programme. Experts from the construction industry and the engineering colleges imparted practical training to the workers on various aspects of construction. The Centre celebrated “Engineers’ Day” on 17th September 2011. Dr. K. Balaveera Reddy, Former Vice Chancellor of VTU, Belgaum was the Chief Guest. On the occasion Shri S.R. Subbarao, President of Managing Council, National Institute of Engineering, Mysore was honoured with ‘Engineer Par Excellence Award’ for his yeoman’s service in
the construction field and contribution to the civil engineering fraternity. The Eighth General Meeting of the Centre was held on 21st September 2011. Apart from issues concerning the Construction Industry in Mysore and Karnataka and on national level in general being discussed, the developments concerning the hosting of the XXV All India Builders’ Convention by the Centre was taken up for discussion. On 1st October 2011, a technical tour to Nanna Metro Project, Bangalore and Vrishabhavathi Sewage Treatment Plant at Bangalore was arranged by BAI Shilpi for 100 students. On 3rd October 2011, a motivational training programme was arranged by the Centre at Mysore, 43 Members of the Centre including their families visited Beijing and Shanghai, China for 7 days. On 21st October 2011, Shilpi Co-oedinators’ Meet was held at the Centre’s office. More than 60 student co-ordinators and 7 faculty co-oedinators from Colleges participated. The Centre celebrated Builders’ Day on 23rd October 2011. Shri Cherian Varkey, President, BAI was the Chief Guest. Shri J.R. Sethuramalingam, Vice President, BAI, and Shri P. Subramani, State Chairman, Karnataka, were the Guests of Honour. On the same day, a ‘Blood Donation Camp” was organized by the “Shilpi” – The Students Wing of BAI Mysore Centre. Few members and about 30 students from the various Engineering Colleges donated blood, A Mega Health Check-up camp for construction workers and their family was organized by Spoorthi, ladies wing of BAI at Mysore Builders’ Charitable Trust. More than 100 construction workers including their families were benefited. Shri M.G. Somashekar, Patron Member, BAI Mysore Centre was awarded the “Builder of the Year” Award and Shri A.S. Chinnaswamy Raju, Past President, BAI was awarded with the “Life Time Achievement Award”. MyBuild-11, a grand Exhibition of construction materials, interiors was held from 26th to 30th January 2012. It was inaugurated by BAI President Shri Cherian Varkey. More than lakh of visitors visited the Exhibition and the response was overwhelming. The Centre hosted the Managing Committee Meeting on 27th January 2012. The Centre had the unique privilege of hosting 25th All India Builders’ Convention in its Silver Jubilee Year aptly coined as Bharatha Parva from 27th to 29th January 2012. The theme of Convention was “Green Struct – Mechanise Towards Sustainability”. More than 1200 delegates including their families from across the country attended the 3 day Convention. The Convention was inaugurated by Shri Ramdas,
District in-charge Minister and Minister for Medical Education of Karnataka. NANDED CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 11th July 2011. Shri S.B. Tamsekar, Chief Engineer, Maharashtra PWD, Mumbai, was the Chief Guest. Shri Sunil Singh Soin, Divisional Railway Manager, Nanded; Shri Bhagwan J. Deokar, Imm. Past President, BAI; Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra; Office bearers and senior functionaries of BAI from across Maharashtra were present during the function. The Centre hosted the first BAI Maharashtra State Level Meeting on 11th July 2011 Issues regarding problems of the contracting and building industry in Maharashtra and also across the country were discussed in length. NASHIK CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 21st May 2011. Hon’ble Dr. R. Krishnakumar, Vice Chancellor, Yashwantrao Chavan Maharashtra Open (YMCO) University was the Chief Guest. Shri Anand J. Gupta, Hon. Gen. Treasurer, BAI was the Guest of Honour. Shri Mohan Katariya, Imm. Past Vice President, BAI also graced the occasion. The print and electronic media was present in strength and gave wide coverage to the event. On 22nd & 23rd July 2011, the Centre organized a ‘Technical-cum-pleasure’ trip to ‘Amby Valley’ – a project of Sahara Group. Office bearers and senior functionaries of the Centre participated in the trip. On 17th August 2011, the Centre organized a rally in support of the ‘anti corruption’ movement by Shri Anna Hazare. Placards with ‘anti corruption’ messages were carried by the members and the rally was taken to most of the offices of central and state works authorities. Office Bearers and senior functionaries along with other members of the Centre participated in the rally. On 21st June 2011, Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra visited the Centre. On the occasion, the Centre arranged a formal welcome and felicitation function in its office premises. Shri Mohan Katariya, Past Vice President, BAI; Shri Avinash Patil, Past State Chairman, BAI, Maharashtra; Shri Rajendra Mutha, Imm. Past Chairman of the Centre, and Shri Joshy Joseph, Chairman of the Centre, were present on the occasion.
PUDUKKOTTAI CENTRE The Centre celebrated Builders’ Day on 31st December 2011 by clubbing it with New Year celebrations.Shri M. Gopalakrishnan, State Chairman, Tamil Nadu and Pondicherry was the Chief Guest. On the occasion, the Centre had arranged ‘Mason Training Programme’ and masonary tool kits were distributed to the participants. BAI members along with their family and other well-wishers of BAI participated in the celebrations. PUNE CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 1st April 2011. Shri Cherian Varkey, President, BAI, was the Chief Guest. Senior functionaries of the Centre and other well-wishers were present during the installation function. The Centre organized a Seminar on ‘Rainwater Harvesting’ on 11th June 2011 along with Indian Plumbing Association (IPA), Pune Chapter. Shri Pravin Bora, Chairman, IPA Pune Chapter was the Keynote Speaker. The Seminar was attended by more than 100 delegates who actively participated in the technical interactions. The annual “Children’s Felicitation Programme” of the Centre was held on 23rd July 2011. This year more than 120 family members were present. More than 70 children were felicitated at the hands of the Guests. On 15th August 2011, the Centre celebrated Independence Day by hoisting the National Flag at the hands of the Chairman. Members in many numbers attended the function. On 18th August 2011, one-day Seminar on ‘Introduction of Uniform Plumbing Code-1 was organised by the Centre. On 15th October 2011, the Centre celebrated Builders’ Day 2011 in a befitting manner. More than 70 delegates attended the function. On 8th February 2012, the Centre organised a half day Seminar on ‘Safety during Construction’ jointly with MES Chief Engineer, Pune Zone. Eminent expert speakers from the Construction Industry spoke on the safety at site illustrating various case studies. A team of 30 members of the Centre made a technical study tour on 25th and 26th February 2012, to the very prestigious and monumental ‘Suvarna Soudha Project’ being executed by M/s. B.G. Shirke Construction Techology Pvt. Ltd. The Centre in association with Universal Construction Equipments organised a Seminar for
budding businessmen to encourage their entrepreneurial spirit on March 10, 2012. The Seminar aimed at educating students about the various opportunities available. RAJASTHAN (JAIPUR) CENTRE Members of the Centre celebrated Builders’ Day 2011 during October 2011, by having small functions at their respective works sites and with the involvement of their staff and workers, who were also treated to a sumptuous meal. Deserving staff members and workers were given awards. On 24th October 2011, a function was held at the ‘JECRC University, Jaipur’ worksite of Shri Ashok Agarwal, State Co-ordinator, BAI Rajasthan. Shri S.P. Goel, Past President, BAI and office bearers and senior functionaries of Rajasthan (Jaipur) Centre were present on the occasion. SANGLI CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 16th April 2011. Shri Digambar G. Malekar, Superintending Engineer, Kolhapur Circle, Maharashtra PWD was the Chief Guest. Shri Mohan Bhate, Trustee, BAI and Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra were the Guests of Honour. On the occasion of Builders’ Day, the Centre arranged a lecture by the Chief Guest Dr. Gumaste Krishnakedar S., Shri Mohan Bhate, Trustee, BAI was also graced the occasion. SATARA CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 20th April 2011. Shri Sham Deshpande, CEO, Zilla Parishad was the Chief Guest. Shri Avinash Parasnis, Past Chairman of the Centre also graced the occasion. On 17th August 2011, the Centre organised a ‘Seminar on New Forthcoming Town Planning Act proposed by Maharashtra Government’. Shri Sadamate, Assistant Director of Town Planning, Government of Maharashtra; Shri Mugade, Town Planner; Shri Shelar, Town Planner; Shri More, Engineer and Shri Kolekar, Engineer, were present and spoke in the Seminar. A team of the Centre, which had studies the proposed Act, gave a presentation on the same. The interaction between the Government Authorities and BAI Members of Satara District proved very fruitful and informative. Apart from Members of the Centre, Members of Karad Engineers Association, Phaltan City Engineers Association and other similar organization attended the Seminar.
SHIMOGA CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 13th April 2011. Shri K.S. Eswarappa, MLA, Shimoga & Karnataka State President, Bharatiya Janata Party, was the Chief Guest. Shri J.R. Sethuramalingam, Vice President, BAI; Shri P. Jayapal, Trustee, BAI; Shri P. Subramani, State Chairman, BAI Karnataka and Shri A. Chamaraja Reddy, Imm. Past State Chairman, Karnataka were the Guests of Honour. On 26th December 2011, the Centre felicitated Shri P. Subramani, State Chairman, BAI Karnataka during his ‘Sastipooja Celebrations’ i.e. attaining of 60 years. SOLAPUR CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 22nd April 2011. Shri Anand J. Gupta, Hon. Gen. Treasurer, BAI was the Chief Guest. Shri Sanjay Awate, Editor, Lokmat Online e-paper, Mumbai and Shri Mohanlal Katariya, Imm. Past Vice President, BAI were the Guests of Honour. The function was attended by representatives of various local organization and officers of various Government departments, The local and electronic media gave wide coverage to the function. The Centre celebrated ‘Engineers Day’ on 15th September 2011. Dr. S.S. Patil, Head of Civil Engineering Department, Walchand College of Engineering and Technology, Solapur, was the Chief Guest. Homage was paid to ‘Sir Mokshagundam Visvesvaraya’ by the Chief Guest. On 22nd October 2011, the Centre celebrated Builders’ Day. Shri Uttam Chand Jain, Vice President, BAI and Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra were the Guests for the same. BAI members and their families were present in large numbers for the celebrations. Rank holder students from Solapur District in B.Arct., B.E.(Civil) & D.C.E.(Civil) were felicitated. An Elocution competition of College students at District level was conducted. Blood donation camp was organised. In this camp, 38 members of the Centre donated blood. Sports activities for the members and their family members were also arranged. The Centre supported to Solapur Chamber of Commerce agitation against Local Tax and also kept one day Bhand to support this activity. SOUTHERN (CHENNAI) CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 18th April 2010. Shri K.N. Basha, Hon’ble Judge, Madras High Court was the Chief Guest. Dignitaries also present during the
occasion were Shri Cherian Varkey, President, BAI; Shri J.R. Sethuramalingam, Vice President, BAI; Shri M. Gopalakrishnan, State Chairman, Tamil Nadu & Puducherry; and Shri R. Radhakrishnan, Past President & Past Trustee, BAI. Dr. D. Thukkaram, Trustee, BAI; Shri M. Karthikeyan, Past President, BAI; Shri V. Ganesan, Past Chairman, Southern (Chennai) Centre; Shri K.R. Rajagopal, former General Manager, State Bank of Travancore; and Shri K.S. Sitaraman, Asst. General Manager, State Bank of Travancore also felicitated the newly installed Chairman and his team of office bearers. On 10th August 2011, the Centre organised a meeting on “Service Tax & Proposed GST”. Shri P. Purushotham, Advocate & Tax Consultant and former General Manager (Indirect Taxes) of Larsen & Toubro Ltd. was the Chief Guest. Shri M. Gopalakrishnan, BAI Tamil Nadu & Puducherry also graced the occasion. On 30th August 2011, a meeting on ‘Current issues on EPF’ was organised by the Centre. Shri Ravi Wig, Member (Employers’ Representatives), Central Board of Trustees, Employees’ Provident Fund; Shri Ashok Singh, Member (Employees’ Representative), Central Board of Trustees, Employees’ Provident Fund; Shri Babulal B. Todi, Member (Employers’ Representatives), Central Board of Trustees, Employees’ Provident Fund; Shri Sharma, Chief Commissioner, Employees’ Provident Fund and Shri Sarveswaran, Regional Commissioner EPF and Labour Secretary, Government of Tamil Nadu were the main Speakers and briefed the members about the various aspects of EPF and also answered queries raised by the members. Shri R. Radhakrishnan, Past President & Past Trustee, BAI, explained to the speakers in detail about the difficulties in complying with the various provisions and forms of EPF; citing the reason that construction workers are temporary and casual in nature. On 15th October 2011, a ‘Mega Health Camp’ was organised at the work site of M/s. Ganesan Builders by Shri J.R. Sethuramaligam, Vice President, BAI and Shri P. Narasimhulu, Past State Chairman, BAI Tamil Nadu along with Lions Club. Sankaranethralaya Eye Hospital and Raghas Dental College and Hospital lend support to the health camp by sending its team of doctors and necessary testing equipments. More than 250 construction workers were diagnosed. On 16th October 2011, on behalf of BAI, Shri T.V. Ramakrishnan, Shri A.N. Balaji, Shri R. Rajendran, Shri D. Viswanathan, Shri T.V. Chandrasejaran, and Shri Sekar – all senior functionaries of the Centre arranged for food and some goodies to the inmates of Larance Charitable Trust, Ashok Nagar, Chennai. On 19th October 2011, a ‘Oratorical Competition’ on the theme ‘Green Struct – Mechanise towards
Sustainability’ was organized by Dr. D. Thukaram, Trustee, BAI for Civil Engineering Students. On 21st October 2011, Builders’ Day 2011 was celebrated by the Centre. Dr. G. Narayanan, Principal Chief Engineer, Southern Railway, was the Chief Guest. Shri J.R. Sethuramalingam, Vice President, BAI; Shri M. Gopalakrishnan, State Chairman, BAI Tamil Nadu and Pondicherry, Shri R. Radhakrishnan, Past President & Past Trustee, BAI and Shri M. Karthikeyan, Past President, BAI, were present on the occasion. Members of BAI and their workers attended the celebrations in a large number. The Centre organised a Mega Property Show ‘House Hunt – Home Expo 2011’ on 2nd 3rd and 4th December 2011. The show was inaugurated by Shri Anand Sundaresan, Chairman, CII, Chennai Zone. Shri J.R. Sethuramalingam, Vice President, BAI; Shri R. Radhakrishnan, Past President & Past Trustee, BAI; Shri N. Raghunathan, Chairman of the Centre; and Shri Mu Moahan, Imm. Past Chairman of the Centre were also present during the inauguration. Wide pre-event coverage was given to the event. Over Sixty leading builders participated in the show which attracted more than 10,000 visitors. Due to bad condition of roads across Chennai, Municipal Corporation of Chennai blamed contractors for the same and issued notices to them, asking them to repair the roads at the own cost or face consequences. On behalf of the aggrieved contractors, a delegation of the Centre, consisting of Shri N. Raghunathan, Chairman; Shri Mu. Moahan, Imm. Past Chairman; Shri R. Radhakrishnan, Past President & Past Trustee; Shri S. Ayyanathan, Hon. Secretary; Shri R. Sivakumar, Joint Secretary; and some other senior functionaries met the Commissioner, Municipal Corporation of Chennai and submitted a Memorandum explaining that contractors alone were not to be blamed for road damage, as water stagnation, incorrect design, etc. had only caused the damage. On 21st January 2012, a ‘Family Meet’ was organised by the Centre. Games, Contests, Cultural Programmes, trivia like Mehandi Stall, etc. were planned for the nearly 300 participants, which included BAI members and their families. Prizes, gifts and an elaborate gourmet feast was also provided for. Shri R. Radhakrishnan, Past President & Past Trustee, BAI also graced the occasion. A Seminar on ‘Real Estate Regulatory Bill and Development Rules’ was organized by the Centre on 28th February 2012. Shri K. Phanindra Reddy, IAS, Secretary, Housing and Urban Development, Government of Tamil Nadu was the Guest of Honour. More than 125 members including senior functionaries, Office Bearers, Executive Committee and General Council Members participated in the Seminar.
On 27th March 2012, the Centre organised a function for presenting the awards of the competition it had organised under various categories of real estate construction. The winners were selected by a Steering Committee. Dr. K. Rosaiah, Hon’ble Governor, Tamil Nadu, was the Chief Guest. Dr. K. Rosaiah also presented an award to Shri R. Radhakrishnan, Past President & Past Trustee for his long standing exemplary service to the construction fraternity. THANJAVUR CENTRE Shri M. Gopalakrishnan was felicitated for his election as State Chairman, BAI Tamil Nadu & Puducherry on 5th April 2011 by the Centre. Shri M. Gopalakrishnan was former Chairman of Thanjavur Centre. THENI CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 8th May 2011. Shri J.R. Sethuramalingam, Vice President, BAI, was the Chief Guest. Shri M. Gopalakrishnan, State Chairman, BAI Tamil Nadu & Puducherry also graced the occasion. THRISSUR CENTRE ‘GRIHAPRAVESHAM 2011’ – a real estste exhibition, was organised by the Centre between 27th and 29th May 2011 in Thrissur. On 27th May 2011, Adv. Therambil Ramakrishnan, MLA, Thrissur, inaugurated the exhibition by lighting the traditional lamp. TIRUPUR CENTRE In April 2012, 14 days family tour was arranged by the Centre. 12 days in Australia and 2 days in Singapore. 35 persons participated in the tour programme. One month (from 18th July 2011 to 18th August 2011) Civil Supervisors Training Programme was conducted. 16 Civil Supervisors participated in the Training Programme. On 10th August 2011, the Centre arranged a technical visit to Precast Building Construction. 15 Members from the Centre attended the State level Meeting held at Coimbatore on 20th August 2011. 11 Members from the Centre attended the Condolence Meeting at Trichy on 28th September 2011. 40 persons attended in 9 days Singapore – Malaysia tour programme from 22nd October to 30th October 2011.
On 10th November 2011, a technical meeting was conducted. 60 Members attended in the meeting. Technical site visit to M-Sand Factory was arranged by the Centre on 22nd January 2012. 50 Members participated in the technical site visit. 14 Members participated in the XXV All India Builders’ Convention held at Mysore between 27th January to 29th January 2012. On 13th February 2012, 45 Members were participated in Technical Meet – Ready Mix Concrete. On 25th March 2012, General Body Meeting conducted by the Centre. TIRUVALLUR CENTRE The Centre organised a function to felicitate Shri B.V. Ramanna, Hon’ble Minister for Handlooms and Textiles, Tamil Nadu – on his ascending the post of Minister in the newly formed Tamil Nadu Government. Shri R. Radhakrishnan, Past President & Past Trustee, BAI; Shri Mu. Moahan, State Secretary, BAI Tamil Nadu & Puducherry and Shri N. Raghunathan, Chairman, Southern (Chennai) Centre were the Guest of Honour. A memorandum was also presented to the Hon’ble Minister by BAI, wherein contentious issues of BAI members contractors with the various State Government Departments were listed. The Hon’ble Minister requested all Government departments viz. PWD, BSNL, Highways, District Collectorate, Police, Transport, etc. to have a representative of BAI Tiruvallur Centre as a member in the panel while finalising development programmes and take consultation from BAI Tiruvallur Centre. TRIPUNITHURA CENTRE The Centre hosted the second BAI Kerala State level Meeting on 7th July 2011. Shri John Pul, State Chairman, BAI Kerala, Chaired the meeting. Shri P.K. Ramachandran, Past Vice President, BAI; Shri Joshy Chandy, State Secretary, BAI Kerala; Shri Sreedharan Nair, Chairman, Alleppey Centre; Shri Santhosh Sebastine Antony, Chairman, Cochin Centre; Shri Radheshyam Khandelwal, Chairman, Kannur Centre; Shri Vijay Hari, Chairman, Trichur Centre; Shri Rajesh, Chairman, Trivandrum Centre and many other office bearers of BAI Centres in Kerala and senior functionaries participated in the meeting, Cochin and Thrippunithura Centres jointly celebrated Builders’ Day 2011 on 15th October 2011 in Cochin. Shri K. Babu, Hon’ble Minister of State for Excise & Ports, Government of Kerala was the Chief Guest.
Shri Cherian Varkey, President, BAI; and Shri John Paul K., State Chairman, BAI Kerala were the Guests of Honour. TUTICORIN CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 6th April 2011. Shri Cherian Varkey, President, BAI, was the Chief Guest. Shri V. Ramachandran, Past President & Past Trustee, BAI; Shri A.K. Yussouf, Past President, BAI; Shri M. Gopalakrishnan, State Chairman, BAI Tamil Nadu & Puducherry; and Shri K.S.P.S. Rathinavel & Shri P.S.S.K. Rajasankaralingam, industrialists were the Guests of Honour. ULHASNAGAR CENTRE Installation function of the office bearers of the Centre for 2011-12 was held on 13th April 2011. Shri Bhagwan J. Deokar, Imm. Past President, BAI, was the Chief Guest. Shri Kumar Ailani, MLA, Ulhasnagar presided over the installation function. Shri Sajan Mulchandani, Past Vice President, BAI also graced the occasion. A function to felicitate outstanding children of BAI members was organised by the Centre on 10th August 2011. Shri Kumar Ailani, MLA, Ulhasnagar, was the Chief Guest and Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra was the Guest of Honour. On the occasion Shri Nathumal N. Bhagia of M/s. Tecksons Engineering was bestowed ‘Lifetime Achievement Award’. 17 outstanding children, who had scored very good in the SSC and HSC exams
were felicitated. More than 150 members and their families participated in the function. The Centre hosted the third Maharashtra State meeting of BAI at Ulhasnagar on 21st October 2011. Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra chaired the meeting. Shri Bhagwan J. Deokar, Imm. Past President, BAI; Shri Mohan Bhate, Trustee, BAI; Shri Sajandas Mulchandani, Past Vice President, BAI and Shri Prakash Panjwani, Imm. Past Chairman of Ulhasnagar Centre also graced the dais during the meeting. The Centre celebrated Builders’ Day 2011 on 21st October 2011. Shri Bhagwan J. Deokar, Imm. Past President, BAI, was the Chief Guest. Shri Baburao Shakkarwar, State Chairman, BAI Maharashtra was the Guest of Honour. During the year, the Centre conducted 12 Executive Committee Meetings. VELLORE CENTRE The Centre celebrated Builders’ Day 2011 on 30th October 2011 by honouring deserving workers. Shri M. Gopalakrishnan, State Chairman, BAI Tamil Nadu and Puducherry, was the Chief Guest. Shri N. Raghunathan, Chairman, Southern (Chennai) Centre also graced the occasion. VISAKHAPATNAM CENTRE The Centre conducted K.L. Rao Day function on 15th
July 2011 and also conducted meetings regarding Service Tax and Labour Cess every month.
Estd. 1941
Builders’ Association of India (All India Association of Engineering Construction Contractors)
FUNCTIONING CENTRES
ANDHRA PRADESH STATE KARNATAKA STATE Sangli Aligarh Adilabad Belgaum Satara Allahabad Andhra Pradesh (Hyderabad) Karnataka (Bangalore) Solapur Baghpat Karimnagar Chitradurga Ulhasnagar Bareilly Medak Mysore Gautam Budha Nagar Nalgonda Raichur RAJASTHAN STATE Ghaziabad Nizamabad Shimoga Jodhpur* Greater Noida Ranga Reddy Rajasthan (Jaipur) Hapur Vijaywada KERALA STATE Loni Visakhapatnam Alleppey TAMIL NADU STATE Lucknow Warangal Calicut Chengalpet Meerut Kerala (Thiruvananthapuram) Chettinadu Meerut Cannt. ASSAM STATE Kochi Coimbatore Modinagar Tezpur Kottayam Dindigul Moradabad North Malabar (Kannur) Erode Moradabad Northern Railway BIHAR STATE Thripunithura Kanyakumari Muzaffarnagr Patna Thrissur Kumbakonam Sitapur Thiruvalla* Madurai Kanpur CHATTISGARH STATE Madhuranthakam Kanpur -South* Bilaspur MADHYA PRADESH STATE Mayiladuthurai Durg-Bhillai Bhopal Musiri UNION TERRITORIES Jagdalpur Indore Namakkal Karaikal Kanker Jabalpur Nilgiri Pondicherry Raipur Neyveli MAHARASHTRA STATE Pudukkottai WEST BENGAL STATE DELHI STATE Ahmednagar Salem Durgapur Delhi Amravati Southern (Chennai) Eastern Centre (Kolkata) Baramati Thanjavur GOA STATE Butibori Thenni Goa Dhule Thiruvannamalai Ichalkaranji Tiruchirapalli GUJARAT STATE Jalgaon Tirunelveli Baroda Kolhapur Tirupur * Opened during the year Bharuch Malegaon Tiruvallur 2011-12. Gujarat (Ahmedabad) Mumbai Tuticorin Surat Nagpur Vellore Nanded JHARKHAND STATE Nashik UTTAR PRADESH STATE Jamshedpur Phaltan Agra Jharkhand (Ranchi) Pune Agra Cantt.
AFFILIATED ASSOCIATIONS
• All Kerla Government Contractors Association • Amravati District Contractors’ Association, Amravati • Building Contractor Association, Ichalkaranji • Chennai Flat Promoters’ Association • Chennai Suburban Builders Association • Confedeartion of Real Estate Developers Association of
India (CREDAI), Karnataka • Contractors and Builders Association of Vidarbha • Flat Promoters Association (Ambattur & Avadi) • Flat Promoters Association- Chennai South • Gujarat Contractors’ Association, Ahmedabad
• Jharkhand Local Thekedar Sangh, Ranchi • Karnataka State Contractors’ Association, Bangalore • Kerala CPWD Conatractors Association • Latur District Builders’ Association, Latur • Mumbai Housing & Area Development Contractors’
Association, Mumbai • Nagpur Contactors Association • Pavers Finished Road Builders’ Association, Chennai • Southern Region Petrolum Corporation Contractors
Welfare Association • The Association of Engineering Constractors CMWSS
Board
BUILDERS’ ASSOCIATION OF INDIA
Estd. 1941
Builders’ Association of India (All-India Association of Engineering Construction Contractors)
G-1/G-20, 7th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai - 400034 � 23514134 , 23520507, 23514802 ▲ � 91-22-23521328 ▲ Grams BUILDASIND
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PROXY Name of the Member I/We, the undersigned of being a member of Builders’ Association of India hereby appoint of or failing him/her of or failing him/her of as my/our proxy to vote for me/us and on my/our behalf at the 70th Annual General Meeting of the Association being held on Saturday, 29th September 2012 at 10.00 A.M. at The Taj Gateway Hotel, Banar Road, Jodhpur. Signed this day of 2012.
Affix Re.1/-
Revenue Stamp
(Signature of Member
with Rubber Stamp)
Note: Proxies, in order to be effective, must be received by the Association not less than 48 hours before the time of the Meeting.
