Increase in income from agriculture and growth in the overall rural economy coupled with huge migration of labourers to the Gulf countries are impacting the steady flow of skilled and unskilled job workers in the construction sector
The construction sector is facing labour shortage of around 10 million persons in any given day and the situation will worsen in the next decade when requirement for workers is expected to go up three-fold, reports PTI.
"The total requirement of skilled and unskilled labourers in the construction sector, including real estate, is 33 million per day. The shortage is around 30%. We need to take proper measures so that things do not worsen next decade when per day labour requirement will treble," Confederation of Real Estate Developers’ Association of India (Credai) president Santosh Rungta told PTI.
Increase in income from agriculture and growth in overall rural economy, coupled with huge migration of labourers to the Gulf countries, are impacting the steady flow of masons, plumbers, electricians and other skilled and unskilled job workers in the construction sector.
Mr Rungta said that the industry should gear up now on to mitigate the challenge, which could be compensated with the adaptation of latest technologies for construction.
"Technology is the need of the hour. We are not using the technology compared to the developers in developed nations.
Developers here are a bit reluctant as technology usage will increase their cost of capital, which they will not consider a good idea since 90% of our housing requirement is from the low-cost segments," he said.
However, as a fall out, a day may come when various parts of a building may be manufactured in a factory and a project will be assembled at the site, making the workforce constraint a non-issue, Mr Rungta anticipates.
"The existing scenario of less availability of workforce may also provide a room for the growth of the pre-engineered buildings. This is already being used in the high-end housing projects and commercial buildings. The usage will only grow with time," he said.
In its latest analysis of global manufacturing competitiveness, Deloitte said Asian giants China, India and South Korea led the current competitiveness index and were expected to retain their top three rankings over the next five years
India, China and South Korea will maintain their leading position in global manufacturing competitiveness while the economies of Western Europe, Japan and US are expected to become less competitive over the next five years, reports PTI.
Presenting its latest analysis of global manufacturing competitiveness index, Deloitte said Asian giants China, India and South Korea led the current competitiveness index and were expected to retain their top three rankings over the next five years.
In contrast, the dominant manufacturing superpowers of the late 20th century are expected to become less competitive.
Other Western European nations will be similarly challenged, especially Czech Republic, Netherlands, Switzerland, Ireland, Italy and Belgium.
Wayne Harvey, senior partner of Deloitte, said: "China and India have been emerging as global leaders in manufacturing for a number of years now, and this survey highlights the increasing dominance that these two major economies will continue to have over the remainder of this decade".
"It is disappointing to see that the UK is ranked outside the top 10, positioned at 17 in an index of 26. Further, it is predicted that the UK will drop three places over the next five years," he added.
Mr Harvey said it was important that the new UK government worked jointly with manufacturers to ensure they improve their global competitiveness.
The UK manufacturing sector is predominantly focused on emerging new technologies and hi-tech industry.
"We must continue to invest in and develop these areas.
Given the significant proportion of UK’s gross domestic product (GDP) earned through our manufacturing base, and the number of people employed in this sector, any further slippage in our global competitiveness will have a real impact on the broader UK economy," he said.
The company has already signed power purchase agreements with two players for medium-term power supply
Anil Ambani-led Reliance Infrastructure (R-Infra), which supplies power to Mumbai suburbs, will buy electricity from three generation companies for the next three years, reports PTI.
The company has accepted medium-term bids of Abhijeet Group, KSK-Wardha Power Company Ltd and Vidarbha Industries Power Ltd to power Mumbai suburbs for the next three years, the source close to the development told PTI in Mumbai.
The company has already signed power purchase agreements (PPAs) with two players for medium-term power supply and in the process of signing it with the third one, a source said.
Nagpur-based Abhijeet group will supply 55 MW power for three years starting from April 1, 2011, at a rate of Rs4.80 per unit while KSK-Wardha Power Company Ltd, a special purpose vehicle of Hyderabad-based KSK Energy, will supply 260 MW power for three years at Rs4.85 per unit.
Vidarbha Industries Power Ltd, a subsidiary of Reliance Power, will supply 135 MW power for two years, starting from 2012 April, at a rate of Rs4.85 per unit, the source said.
As per the medium-term contracts, the power supply will start from April 1, 2011, and the company will buy 315 MW for the first year and 450 MW for the next two-years.
R-Infra had forwarded the medium-term bids to the state power regulator Maharashtra Electricity Regulatory Commission (MERC) for its approval earlier this year and had issued Letter of Intent (LoI) — a document outlining an agreement between two or more parties before the agreement is finalized — to the selected power producers, its CEO Lalit Jalan had said in May. The long-term bids, to supply power to Mumbai for 25 years, are under process and it would take some more time to reach finalisation, the source said.
"The company is negotiating with power generators who bid for long-term power supply, for better rates" the source said.
R-Infra had invited long-term bids from domestic and foreign companies to procure 1,500 MW of power to meet demand for its Mumbai distribution licence area, in July 2009.
A tender floated by the company had said it "intends to procure power on 'round the clock' basis for a period of 25 years, with power supply starting from 48 months to 60 months from the date of signing of relevant documents.
"The power supply, as per the long-term contract, will start from April, 2014, for next 25 years," Mr Jalan had said recently. Reliance Infra supplies close to 1,500 MW power to around 27 lakh customers in the Mumbai suburbs.