The major Indian commercial centre of Mumbai has embarked upon two major construction projects. These will involve slum-clearance programmes covering large areas, with the residents affected being rehoused during the period to 2014. 

Mumbai is bursting at the seams. The city formerly known as Bombay is in urgent need of more residential and commercial space if it is to meet demand, which is growing year on year. Help is at hand in the form of two major construction projects. 

The Dharavi Rehabilitation Project will involve replacing Asia’s biggest continuous slum area with almost 200 hectares of residential and commercial property. The area was divided into five sectors which were awarded to different bidders at the end of January. 

The successful companies had to give an undertaking to provide an equivalent residential and commercial space for the current residents of the slums covering a total surface area of 3.4 million square metres. 

The former slum district bordering the Bandar-Kurla-Complex, one of Mumbai’s most important business centres and consequently one of the most expensive sites in India, has been largely earmarked (85%) for the construction of residential and office premises under the development plans. The remaining 15% has been set aside for public facilities (parks, play areas, hospitals). A special economic area is also under discussion. 

The second major project concerns the redevelopment of a slum district near Mumbai airport. This involves a 110-hectare site, part of which (70 hectares) is to be used for expanding the airport. In addition, 40 hectares will be used for building shopping centres, hotels and offices. (pd/na/bfai)

Contact: Roland Meier

India’s construction boom has been accompanied by a significant increase in demand for construction equipment. According to a study by the McKinsey consultancy firm, India’s need for construction equipment is set to increase fivefold in the period to 2015, with annual expenditure reaching USD 13 billion. 

Currently, the level of mechanisation within the Indian construction industry is 20%. This compares to levels of between 70% and 80% in the industrial countries. Therefore, there is huge potential for growth in terms of the construction equipment market on the Indian subcontinent. 

The demand for construction equipment is highest in road and canal building projects, as well as in residential and commercial property programmes. 

Overall, conditions for foreign suppliers are favourable. There are no restrictions in terms of direct investment, and the basic rate of customs duty on construction equipment has been gradually reduced over recent years to its current level of 7.5%. Having said this, Indian manufacturers are lobbying for restrictive measures to be applied to the import of used construction equipment. 

Construction suppliers should also be aware that equipment (particularly hydraulic equipment, cooler elements and air filters) has to be adapted or improved to meet the high demands of use in India (climate, poor-quality roads, high dust levels, frequent overloading). 

The study also suggests that the leasing of construction equipment is likely to become increasingly popular over the coming years. The leasing of construction equipment offers attractive cost-saving opportunities, particularly for small and medium-sized construction companies. (pd/bfai) 

Contact: Roland Meier

Awareness of environmental issues is also on the increase in India. In collaboration with Baleco AG, the Swiss Business Hub India has produced a study (May 2004) which provides a market overview and an assessment of the opportunities for Swiss companies. 

One thing all the experts agree on is that the Indian environmental market has huge potential. Sadly, there is similar unanimity concerning the difficult local trading conditions faced by environmental technology companies in India. This is the result of a not infrequent failure to implement or enforce legal requirements. Further obstacles are created by the variety of legislation across the different states within the country. 

However, the very fact that the market is still relatively underdeveloped is seen by the SBH India/Baleco AG report (commissioned by BUWAL - Swiss Agency for the Environment, Forests and Landscape) as grounds for optimism for those looking to establish a presence. At 208 pages long, the report explains the broader political, legal, and economic conditions, with particular emphasis on the following areas: water/wastewater/emissions, hazardous waste, financial instruments, sources of information/consultancy. 

Opportunities for Environmental Technology in India - Focus Water, Air and Hazardous Waste (English, 208 pages)

The market report can be downloaded free of charge.

Contact: Daniela Krug