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Construction: India: Overview:

In India, construction is the second largest economic activity after agriculture. Construction accounts for nearly 65% of the total investment in infrastructure and is expected to be the biggest beneficiary of the rush in infrastructure-investment in the next five years. Investment in the sector accounts for almost 11% of India's GDP (Gross Domestic Product). As opportunities in the sector continue to come into the open, FDI (Foreign Direct Investment) has been rising. The real-estate and construction sectors received FDI of ?216.53 million in the first half of financial year 2013-14. It is roughly estimated that 40?45 per cent of steel; 85 per cent of paint; 65?70 % of glass and significant portions of the output from automotive, mining and excavation equipment industries are used in the construction industry.

12th Year Plan (2012-2017): Forecasts for the market-size of construction industry for the Twelfth Plan period indicate that the aggregate output of the industry during the period 2012-13 to 2016-2017 is likely to be 52.31 lakh crore, increasing from 7.67 lakh crore in 2012-13 to 13.59 lakh crore in 2016-17. The construction industry will pick up momentum as the 12th Five-Year Plan is put into action, which will spend $1 trillion on building infrastructure. It will take care of following things:

  • Human-Resource Strategy- Construction industry faces acute shortage of skilled workers especially in mechanized trades. CIDC (Construction Industry Development Council) ? an industry association formed with the initiative of the Planning Commission ? is actively involved in imparting training and skill up-gradation of the workers in the industry;
  • Safety of Construction Workers- Workers are vulnerable to inherent risks to their life and limbs. Temporary relationships between employer and employee, uncertain working hours, lack of basic amenities and inadequacy of welfare facilities are some of the difficulties faced by the employees. Plan aims at accelerating the process of implementation of the provisions of The Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996;
  • Regulatory Framework- Construction has been declared as an industry but has presently no regulatory framework on an all-India basis. It has been suggested that a Common Construction Law must be formed, which would harmonize the existing statutes related to construction sector. It has also been suggested that a nodal regulatory authority in the shape of Central Construction Authority at the national level and State Authorities at the state levels should be formed to administer and monitor the Construction Law. The proposed authority could act as a nodal agency of the Government on all issues related to the construction sector;
  • Contracting Systems and Dispute-Resolution- The present contracting procedures are costly and cumbersome for both the project owners as well as the contractors. Lack of standardization of contract procedures and evaluation criteria is another difficulty associated with contracting process. It has been suggested that the criteria of awarding works to the lowest cost bidder adopted by the procuring agencies in the public sector hinders in the process of adoption of better technology, best practices and quality. It might result in cost cutting practices by contractors and preventing passing on the benefits to the workers. In this respect, it has been suggested that 'Effective Lowest Price' rather than the 'Lowest Price' may be considered for adoption; and
  • Arbitration and Dispute-Resolution- The enactment of Arbitration and Conciliation Act 1996 provided for an effective framework for resolution of disputes without depending on the overburdened judicial system of the country. Despite these improvements, the arbitration process continues to be predominantly ad-hoc. A solution to the this problem is to use the Institutional-Arbitration system according to which appointment of arbitrators is done from international, national or regional panels. Other features of this system are: having a code of ethics which binds the arbitrators and a pre-determined level of fees.

Construction: India: Laws:

Fatal Accidents Act: 1855 Provides compensation to families for loss due to death
Workmen's Compensation Act: 1923 Provides relief to workmen or their dependents
Trade Union Act: 1926 Provides for the registration of trade unions
Children Pledging of Labor Act: 1933 Bans the pledging of the labor of the children
Payment of Wages Act: 1936 Controls payment of wages to certain classes of employees
Employer's Liability Act: 1938 Covers liability of an employer for death or injuries of workmen
Weekly Holidays Act: 1942 Regulates the grant of weekly holidays to employees
Industrial Disputes Act: 1947 Provides for identification and settlement of industrial disputes
Employees' State Insurance Act: 1948 Provides for certain benefits to employees
Factories Act: 1948 Combines and amends the law-regulating labor in factories
Minimum Wages Act: 1948 Fixes minimum wages to be paid to skilled/unskilled laborers
Mines Act: 1952 Provides for measures for safety and welfare of workers in mines
Employee's PF Act: 1952 Provides for future of industrial workers and their dependents
Collection of Statistics Act: 1953 Facilitates the collection of statistics of certain kinds
Employment Exchanges Act: 1959 Provides for compulsory submissions of employment returns
Apprentices Act: 1961 Regulates and controls the programme of training of apprentices
Maternity Benefit Act: 1961 Regulates the employment of women before/ after child-birth
Motor Transport Workers' Act: 1961 Regulates the condition of work of motor transport workers
Payment of Bonus Act: 1965 Provides for the payment of bonus to employees
Personal Injuries Act: 1970 Imposes liability ion employers to pay compensation to workers sustaining injuries
Contract Labor Act: 1970 Aims at regulating employment of contract labor
Payment of Gratuity Act: 1972 Provides for a scheme for the payment of gratuity to employees
Bonded Labor System Act: 1976 Provides for the abolition of bonded labor system
Equal Remuneration Act: 1976 Provides for payment of remuneration equally to men & women
Inter-State Migrant Workmen Act: 1979 Regulates the condition of service of inter-state laborers
Child Labor Act: 1986 Prohibits the employment of children in certain employment
Building and other Construction Workers Act: 1996 Regulates employment and conditions of service of the building and other construction workers
Building and other Construction Worker's Welfare Cess Act: 1996 Provides for levy and collection of cess on the cost of construction incurred by employers

Construction: India: National Building Code:

NBC (National Building Code) of India is a national instrument providing guidelines for regulating the building construction activities across the nation. It provides for a model code for adoption by all agencies involved in building construction-works, be they PWD (Public Works Department), other government construction departments, local bodies or private construction agencies. The code chiefly contains administrative policies, development control regulations and general building requirements; fire safety requirements; stipulations regarding materials, structural design and construction (including safety); and building and plumbing services.

Construction: India: Statistics: Housing:

Total Houses 330,835,767
Total Rural Houses 220,695,914
Total Urban Houses 110,139,853

Source: Census (India): 2011


Percentage of occupied census houses in India

Source: Census India (GoI)

Construction: India: Statistics: Road:

Sl. No. Name of State National Highway No. Total Length (in km)
1 Andhra Pradesh 4, 5, 7, 9, 16, 18, 18A, 43, 63, 202, 205, 214, 214A, 219, 221, 222 & 234 4537
2 Arunachal Pradesh 52, 52A & 153, 229, 52B Ext.,37 Ext. & 315A 2027
3 Assam 31, 31B, 31C, 36, 37, 37A, 38, 39, 44, 51, 52, 52A, 52B, 53, 54, 61, 62,151,152,153, 154, 127B & 315A 2940
4 Bihar 2, 2C, 19, 28, 28A, 28B, 30, 30A, 31, 57, 57A, 77, 80, 81, 82, 83, 84, 85, 98, 99, 101, 102, 103, 104, 105, 106, 107, 110, 131A, 327Ext., 333, 527C 4106
5 Chandigarh 21 24
6 Chhattisgarh 6, 12A, 16, 43, 78, 200,202, 216, 217, 111, 221 & 343 2289
7 Delhi 1, 2, 8, 10 , 24 & 236 80
8 Goa 4A, 17, 17A & 17B 269
9 Gujarat NE-I, 6, 8, 8A, 8B, 8C, 8D, 8E, 14, 15, 59, 113, 228, 76A, 360, 947 & 953 4032
10 Haryana 1, 2, 8, 10, 21A, 22, 64, 65, 71, 71A, 72, 73, 73A, 71B, NE-II, 236 & 709 Ext. 1633
11 Himachal Pradesh 1A, 20, 20A, 21, 21A, 22, 70, 72, 72B, 88, 73A & 305 1506
12 Jammu & Kashmir 1A, 1B, 1C & 1D 1245
13 Jharkhand 2, 6, 23, 31, 32, 33, 75, 78, 80, 98, 99, 100, 114A, 333 & 343 2170
14 Karnataka 4, 4A, 7, 9, 13, 17, 48, 63, 67, 206, 207,209, 212, 218 & 234 4396
15 Kerala 17, 47, 47A, 47C, 49, 208, 212, 213, & 220 1457
16 Madhya Pradesh 3, 7, 12, 12A, 25, 26, 26A, 27, 59, 59A, 69, 75, 76, 78, 86, 92, 26B, 69A,927A 5064
17 Maharashtra 3, 4, 4B, 4C, 6, 7, 8, 9, 13, 16, 17, 50, 69, 204, 211, 222, 26B, 360 4257
18 Manipur 39, 53, 150, 155, 102A, 102B & 137 1317
19 Meghalaya 40, 44, 51, 62 & 127B 1171
20 Mizoram 44A, 54, 54A, 54B, 150, 154 & 502A 1027
21 Nagaland 36, 39, 61, 150 &,155 494
22 Orissa 5, 5A, 6, 23, 42, 43, 60, 75, 200, 201, 203, 203A, 215, 217 & 224 3704
23 Pondicherry 45A & 66 53
24 Punjab 1, 1A, 10, 15, 20, 21, 22, 64, 70, 71, 72 & 95 1557
25 Rajasthan 3, 8, 11, 11A, 11B,11C, 12, 14, 15, 65, 71B, 76, 79, 79A, 89, 90, 113, 112, 114, 116, 76B, 65A, 76A, 116A, 158, 162 Ext., 709Ext. & 927A 7130
26 Sikkim 31A, 310 149
27 Tamil Nadu 4, 5, 7, 7A, 45, 45A, 45B, 45C, 46, 47, 47B, 49, 66, 67, 68, 205, 207, 208, 209, 210, 219, 220, 226, 226E, 227, 230, 234 & 532 4943
28 Tripura 44 & 44A 400
29 Uttarakhand 58, 72, 72A, 72B, 73, 74, 87, 94, 108, 109, 123, 119, 121, & 125 2042
30 Uttar Pradesh 2, 2A, 3, 7, 11, 12A, 19, 24, 24A, 24B, 25, 25A, 26, 27, 28, 28B, 28C, 29, 56, 56A, 56B, 58, 72A, 73, 74, 75, 76, 86, 87, 91, 91A, 92, 93, 96, 97, 119,231, 232, 232A, 233, 235, NE-II, 3A, 330A, 730, 730A, 931 & 931A 7818
31 West Bengal 2, 2B, 6, 31, 31A, 31C, 31D, 32, 34, 35, 41, 55, 60, 60A, 80, 81, 117, 114A & 116B 2681
32 Andaman & Nicobar 223 300
Total 76818

Source: MRTH (GoI)


PPP (Public Private Partnership) - With a view to attract private investment in road development, maintenance and operation, National Highways Act (NH Act) 1956 was amended in June 1995. In terms of these amendments, the private persons can invest in the NH projects, levy, collect and retain fee from users and is empowered to regulate traffic on such highways in terms of provisions of Motor Vehicle Act, 1988.

The common forms of PPP that are popular in India and have been used for development of National Highways are -

  • Build Operate and Transfer (BOT) Toll basis;
  • Build Operate and Transfer (BOT) Annuity basis; and
  • Special Purpose Vehicle (SPV) basis.

Construction: India: Statistics: Rail:

Indian Railways is a multi-gauge, multi-traction system covering the following:

Track Kilometers Broad Gauge
(1676 mm)
Meter Gauge
(1000 mm)
Narrow Gauge
(762/610 mm)
Total
86,526 18,529 3,651 108,706
Route Kilometers Electrified Total
16,001 63,028

Source: Ministry of Railways (GoI)

Construction: India: Statistics: Port:

Sl. No. Name of State Number of Ports
1 Andaman and Nicobar Islands 23
2 Andhra Pradesh 12
3 Daman and Diu 2
4 Goa 5
5 Gujarat 40
6 Karnataka 10
7 Kerala 13
8 Lakshadweep Islands 10
9 Maharashtra 53
10 Orissa 2
11 Pondicherry 1
12 Tamil Nadu 15
13 West Bengal 1

Source: IPA (GoI)


Construction: India: Statistics: Power:

The overall generation of power in the country increased from 877 BU during 2011-12 to 911.652 BU during 2012-13. Generation-performance is as follows:

Category Improvement
Thermal 7.27 %
Hydro 12.93 %
Nuclear 1.8 %

Source: Ministry of Power (GoI)


The annual growth in power-generation during 11th Plan period is as under:

11th Plan Growth in Achievement (%)
2008-09 2.7
2009-10 6.6
2010-11 5.56
2011-12 8.11
2012-13 3.96

Source: Ministry of Power (GoI)

Construction: India: Construction Technology:

BMTPC (Building Materials and Technology Promotion Council), established by Government of India in 1990, aims for promotion of cost-effective, environment-friendly and energy-efficient innovative building materials and construction technologies for housing in urban and rural areas including disaster-resistant practices.

The Council has been instrumental in introduction of the following building materials and technologies:

  • Based on agro-industrial wastes:
    • Flyash-based bricks/blocks
    • Cellular light-weight concrete
    • Bamboo-based materials
    • Bagasse boards;
  • Partial pre-fabrication is another area which is being propagated by the Council;
  • Council has developed easy-to-operate simple machines, which are being used in construction with encouraging results all over the country;
  • The Council also lends support in the policy intervention matters of Government of India related with saving of forest, top layer of soil, environmental degradation, energy conservation, waste utilisation, disaster mitigation & management, etc.; and
  • Apart from home-grown technologies and materials, the Council is working towards bringing emerging technologies like Rapidwall Construction System, Monolithic Construction System, to bring cost, economy, quality, environmental protection and speed in housing construction.