Projects

Why it is a good time to build, renovate a house?

Published

9 years ago

July 4, 2016

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This is not the best time to buy a house? Though an estimated 2.45 lakh houses are lying unsold across the country, the correction expected in property prices has still not happened. Interest rates too are not coming down. Even so, the dip in commodity prices means this could be the ideal time to construct a house. Prices of key construction materials that account for nearly 47 per cent of the total construction costs have come down 6-21 per cent in the past six quarters, bringing down the overall costs by more than 6 per cent (Refer the graphic). These figures are based on prices of construction material in Delhi?s Burari Market between April 2014 and September 2015.

Steel accounts for the biggest chunk of the costs of construction material. Last week, the government imposed a minimum import price on steel to protect the domestic industry. This is likely to cause a spike in steel prices which had dropped almost 18 per cent between April 2014 and September 2015. The other big component is cement. Cement prices have hardened in the past few months but still remain 5 per cent below their April 2014 levels.

Can?t buy in bulk There are, however, certain limitations to making the best of this opportunity. It is not easy to find space to store building materials like cement, bricks and steel. Even if you have enough space, cement cannot be stored for extended periods of time. So, you can?t buy the entire steel and cement required for construction at one go. These will have to be purchased in small installments, according to usage. Moreover, many items will not be immediately required. Prices of paints, electrical fittings and tiles are down but they are needed when the structure is ready, which could be 4-6 months down the line. By the time you need these items, their prices might have gone up.

Even so, if you have been planning to build a house, this is the best time to take the plunge. Overseeing the construction of a home is an arduous task, which is why many house owners endlessly procrastinate the decision. But delaying the decision could mean missing out on the low construction costs. Our calculations show that if the total cost of construction is Rs 30 lakh, one can save close to Rs 1.9 lakh by acting now. Keep in mind that construction involves a lot of time-consuming paperwork as well. Getting the initial permission from municipal authorities alone can take a few weeks. Finalising the architectural drawings and arranging for finances also take up a lot of time. So if you start now, the construction might start only two to three months later.

Projects

Adani Group to invest Rs 55,000 cr in Gujarat projects, including cement plant

Published

3 years ago

October 21, 2021

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Billionaire Gautam Adani announced over Rs 55,000 crore investment in next five years in a clutch of projects in Gujarat including the world’s largest solar park, a copper plant, a cement unit, and a lithium battery manufacturing complex, envisaging direct employment to 50,000 people.

Adani Group, which operates Mundra port in the state, announced plans to foray into petrochemical business with a Rs 16,000 crore project with German chemical major BASF.

Speaking at the 9th Vibrant Gujarat Summit here, Adani said his group’s investments in Gujarat in the past five years exceed Rs 50,000 crores and “we are further accelerating our investments.”

“Over the next 5 years, our investments will include the world’s largest solar hybrid park in Khavda. The anticipated investment in this park is Rs 30,000 crore. We also plan to establish a 1 GW Data Center Park in Mundra, a one million ton copper smelting and refining project, a cement and clinker manufacturing unit in Lakhpat, an integrated Lithium battery manufacturing complex and expand our Photovoltaic manufacturing capabilities. Overall, we anticipate a total of Rs 55,000 crore of investment in all these projects,” he said.

Image Source: Google

Projects

Bangladesh’s Chhatak Cement announces modernisation project

Published

3 years ago

October 21, 2021

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Bangladesh’s Chhatak Cement Co Ltd has announced plans to modernise its facility and convert it from wet process to dry process. The company has begun to prepare a development project proposal, with a schedule to implement the upgrades by 2021.

According to company officials, Chhatak Cement has incurred an accumulated loss of over BDT3.63bn (US$43.25m) between FY13-14 and FY17-18, mainly due to its outdated machinery resulting in loss of production capacity. The plant is currently operating at 70,000 tonnes per annum (tpa).

However, the new project is anticipated to boost production capacity and increase annual company profit to around BDT1bn. The modernisation is expected to be financed by a BDT8.9bn investment from the government, with BDT5.34bn as a loan with a payback period of seven years and the rest as equity, according to The Financial Express.

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Projects

Forced shutdown of Viet-Dung Quat cement plant in Vietnam

Published

3 years ago

October 19, 2021

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The Dai Viet-Dung Quat cement plant has been forced to temporarily shut down in the central province of Quang Ngai due to environmental pollution. Since 26 May, the locals had gathered in front of the plant to call for a shutdown.

Director of Central Region Cement JSC Trinh Van Dien, investor in the Dai Viet-Dung Quat cement plant, said, “We invited an environmental monitoring team to check the dust concentration and the results are safe. The local Department of Natural Resources and Environment hasn?t reached a conclusion on the noise level yet.”

He added, “We?ve had to temporarily close the plant, meaning we”re losing VND300m (US$13,437) and the 100 workers are kicking their heels at home. I don”t know what to do.”

The ground clearance work should have been done this year but the coal-powered plant project was delayed until 2020. As a result, the ground clearance work has also been delayed.

According to the locals, they want to be compensated for the relocation if the plant stays. “We don?t want to stay. We have to move,” local Nguyen Ne said.

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