Newsletters: December 2004
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| Lighting of Lamp by Hon'ble Minister of Defence, Shri. Pranab Mukherjee during the Inaugural function of the International Conference & Exposition held on September 23th - 25th, 2004 at Pragati Maidan, New Delhi. |
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Message from the Chairman (CIDC) ……………..
CIDC's Annual Conference & Exposition on Construction held at Pragati Maidan, New Delhi during September 23-25, 2004 on the theme 'Construction Opportunities and Strategies for Action with focus on Asia- Pacific, Middle East & African Regions', had excellent response with very good deliberations taking place during the various technical sessions. The Conference was inaugurated by Mr. Pranab Mukherjee, Hon'ble Defence Minister (then also looking after the urgent duties of the Prime Minister, who was abroad) which had a special significance as Mr. Mukherjee was the first Patron of CIDC in 1996. The Conference had many delegates from abroad and it was held together with an International Exposition organized by Montgomery and Interads. The huge support received by to CIDC has considerably boosted our morale and has motivated us further to work for the benefit of the industry.
The quality of the physical infrastructure created in the country is directly related to the robustness of the construction industry. It is in this context that I once again would request you to take note of the major initiatives of CIDC such as Grading of Construction Entities, Construction Cost Indices, Executive Development Programmes, Construction Workers Training Programmes, Standard Bidding Documents etc, which require your support to achieve more penetration in the Industry. There is no shortcut to improvement but to adopt good work practices that would improve the performance of the Industry.
Finally, I would like to bring to your kind notice CIDC's new initiative to offer training in trades such as Construction Works Supervisor, Site Accountant and Storekeeper. Details are given elsewhere in this News Letter. This initiative requires your support.
Uddesh Kohli
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From the Desk of the Director General ……
With the onset of globalization, the Indian Construction Industry has to face new challenges both within and outside the Country. The opportunities, however, exists in the Asian & African region where development has yet to take place. It is in this context that CIDC's annual National conference had the main theme as "Construction Opportunities and Strategies for Action with focus on Asia-Pacific, Middle East & African Regions" organized during September 23-25, 2004, at Pragati Maidan, New Delhi. The conference was organized in association with the Planning Commission, Govt. of India and with 24 sponsoring organization and many nominating delegates. Details of the proceedings were published in a souvenir. I am indeed grateful to all who have supported the event and worked to make it a success. The support extended has indeed boosted us to keep on working for the industry.
I am happy to inform you that the Executive Development Programmes initiated by CIDC are being well received by the Industry. This is evident from the huge response as well as the wide rang of topics being covered. It is indeed a pleasure to note that the Construction Industry of the country is committed to continuous learning and exchange of information.
On the anvil are many new activities( MoU with SIAC, School Training Programme etc) details of which are given elsewhere in this News Letter. We welcome your queries in this regard and shall also keep you updated from time to time.
P R Swarup
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International Conference & Exposition on Construction “Construction Opportunities and Strategies for Action with focus on Asia-Pacific, Middle East & African Regions” September 23-25, 2004, Pragati Maidan, New Delhi.
CIDC in association with Planning Commission and Ministry of Statistics & Programme Implementation hosted an International Conference & Exposition on September 23-25, 2004 at Pragati Maidan, New Delhi. The Conference was inaugurated by Hon’ble Union Minister of Defence, Shri Pranab Mukherjee (who was the first Patron of CIDC) on 23rd September 2004 at India Habitat Centre, New Delhi. Hon’ble Dy Minister of Roads & Transport, Ghana, Mr. Emmanuel Adjeiboye and Hon’ble Minister of State for Home Affairs, Shri S Regupathy were Guest of Honour at the Inaugural Function. |
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| Release of Souvenir by Hon'ble Minister of Defence, Shri. Pranab Mukherjee; Shri. S Regupathy, Hon'ble Minister of State for Home Affairs along with Dr. Uddesh Kohli, Chairman CIDC are also present on the dias. |
The Technical Sessions of the Conference and Exposition were held at Pragati Maidan, New Delhi. It was attended by around 500 delegates from India and 19 foreign delegates from Pakistan, Ghana & Singapore.
The Valedictory session was chaired by Mr. Oscar Fernandes, Hon’ble Minister of State for Statistics & Programme Implementation, Govt. of India and Mr See Chak Mun, Hon’ble High Commissioner, Singapore was the Guest of Honour.
The Exposition was organized by INTERADS LIMITED, in association with Montgomery International Limited, U.K., and supported by Construction Industry Development Council (CIDC). |
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| Valedictory Session during the International Conference & Exposition held on September 25th, 2004 at Pragati Maidan, New Delhi. |
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Working Group on construction cost price rise constituted
On a request from CIDC, the Ministry of Statistics & Programme Implementation is considering a proposal to develop/ evolve a trigger mechanism to counter the situation being faced by the Construction Industry. MOSPI has now constituted a Working Group “to develop a Generic Trigger Mechanism to deal with price rise or fall of bulk construction materials and to evolve a contractual provision to reduce the incidence of time and cost overruns in the construction projects”.
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To review the present status of the trends of consumption of manufactured Construction Materials by the Indian construction industry, and identify those materials which have a profound impact on the cost of procurement of construction.
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To review the present procedures and methodologies for the tendering, bidding and contracting for construction work, specially those related to providing compensation for the price rise. (Escalation Clauses) and also three type of indices being used.
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To study and establish following :
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Effective actual Quantum of price rise on account of the price of Major Construction Materials, and its impact on exchequer.
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The status of service providers, and the impact of this trend on their functioning.
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The likelihood of time and cost over runs arising out of this incidence.
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Possible solutions to combat the detrimental effects arising out of the situation.
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To study sectoral impact comprising of following :
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The type of construction (viz., Buildings, Highways, Bridges etc.)
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The type of Project owner (PSU, Government, SPV etc.)
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The duration of execution; and
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The incidence of Consumption of Major Construction Materials.
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To evaluate the adverse impact of this phenomena in impeding the generation and substances of employment and suggest measures for improvement.
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To evaluate the influence of Global market dynamics on the pace of this phenomena.
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To suggest a policy framework for adoption of the standard guidelines for contracting procedures by the Ministry of Statistics and Programme Implementation, specially with a reference to escalation clauses.
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To recommend a strategy for action including the trigger mechanism for controlling steep rise in prices of bulk construction materials.
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The Group comprises of representatives from MOSPI, Planing Commission, CPWD, Ministry of Steel and Construction Industry. Mr. P R Swarup, DG, CIDC is the Member Secretary of the Working Group.
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CIDC signs an MOU with Singapore International Arbitration Centre (SIAC), Singapore
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| Signing of SIAC & CIDC MOU - Shri. P R Swarup, Director General, CIDC and Prof. Lawrence Boo, Dy. Director, SIAC exchanging copy of the MOU signed between SIAC and CIDC on 25th September, 2004. |
CIDC and SIAC have entered into an MOU for the setting up of the SIAC-CIDC Dispute Resolution Centre, to facilitate the expedient and effective resolution of construction-related disputes arising in India. The MoU was signed during the CIDC’s national conference held during 23-25 September 2004.
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CIDC launches Training Programme for School Dropouts :
CIDC has launched the following training programmes leading to Certification by CIDC under the auspices of Ministry of Labour, Govt. of India. |
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Construction Site Store Keepers.
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Construction Site Land Surveyors.
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Construction Site General Works Supervisors.
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Construction Site Quantity Estimators.
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Construction Site Lab Technicians.
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Construction Site Accountants.
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The courses and program have been accepted by Kendriya Vidyalya and also the Government of NCT of Delhi. The first batch of students shall commence their training program on 15th October 2004 at Govt. Girls Senior Secondary School, Lado Sarai, New Delhi
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Executive Development Programmes (EDPs)
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Delhi
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Advance Certificate Course in Construction Cost Estimating and Quantity Surveying on 26-27 August, 2004, at Radisson Hotel, New Delhi.
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Advance Certificate Course in Emerging Trends in Construction Management on 13-15, September 2004 at Radisson Hotel, New Delhi.
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Refresher Course for Engineers of Employees Provident Fund Organization on 13-17, September 2004 at New Delhi.
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Advance Certificate Course in Managing Construction Sites on 27-29, September 2004 at Radisson Hotel, New Delhi.
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Chennai
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Construction Risk Management, 7-8 Jan. 2005 at IIT-Madras
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Managing Construction Quality & Safety, 24-25 June 2005 at IIT-Madras
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Construction Productivity & Work Methods, 12-13 Aug 2005 at IIT Madras
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Building Construction Management, 7-8 Oct. 2005 at IIT Madras
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Marine Projects Management, 16-17Dec. 2005 at IIT Madras.
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Executive Development Programme in Healthcare
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Consequent to the Conference held at Katmandu on Integrated Healthcare Management the need for EDPs in healthcare & infrastructure was strongly felt by all the participants. It is therefore proposed to organize a series of EDPs on the same. Details of the first EDP is as follows:
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This initiative is being jointly undertaken by CIDC & HSCC (I) Ltd.
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CIDC to make a representation for the Union Budget for FY 2005-2006
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CIDC in association IIT Madras are organizing a National Workshop with the main theme as: “Infrastructure Development and Economic Growth – India at the Crossroads” during 6/7/8 April 2005 at IIT-Madras. Sub themes of the event are:
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To identify, quantify & highlight the role of infrastructure development in the growth of the economy. To highlight the role of construction in the economy.
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To identify impediments, challenges and key success factors.
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To focus on the different sectors of the infrastructure development so that individual issues could be highlighted:
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To promote meaningful interaction amongst the participants for nurturing quality and safety consciousness in construction industry.
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To evaluate the adverse impact of this phenomena in impeding the generation and substances of employment and suggest measures for improvement.
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To bring out a set of recommendations for all the concerned stakeholder.
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To deliberate on issues related to Integrated Infrastructure Development & Aesthetics and related issues.
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Details of the event are being widely circulated.
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Training Programme for Indonesians
Govt. of Indonesia, through National Small Scale Industry Corporation has entrusted CIDC to develop course materials, depute trainers, Conduct Training, testing & Certification of Indonesian Construction Workers. The training is to be imparted in six trades and shall include facilitation in setting up a training center at Jakarta, Indonesia.
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Diploma Programmes in Civil, Electrical, and Mechanical Engineering
Consequent to the signing of the Agreement between CIDC & IGNOU on 18th July, 2003, Diploma Programs in Civil / Electrical & Mechanical Engineering are being offered for Indian Army personal on full time basis, of two and a half year duration (5 semesters). The third batch is due to commence classes shortly. |
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Candidates of the Diplomo Programme.
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Construction Workers Training Programme:
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The following programmes were organized during the July-October 20054 period:
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Rural Building Centre, Pune during 22-07-2004
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Ajay Enterprises, Gurgaon during 03-08-2004
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Ansals Buildwell Ltd., Dwarka, New Delhi during 21-08-04
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Bridge & Roof, IGNOU, New Delhi during 28-08-04
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Ansals Buildwell Ltd., Dwarka, New Delhi during 04-09-04
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Bridge & Roof, IGNOU, New Delhi during 11-09-04
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Simplex Concrete Piles (I) Ltd, Gurgaon during 06-10-2004
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Bridge & Roof, IGNOU, New Delhi during 13-10-04
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G K Constructions, DLF-III, Gurgaon during 14-10-2004
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Ansals Buildwell Ltd., Dwarka, New Delhi during 14-10-04
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MCM, Faridabad during 14-10-2004
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CIW, Pune during 01-03-11-2004
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M S Builders, DLF-III, Gurgaon during 27-10-2004
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Pathnet India Pvt. Ltd, Gurgaon during 05-11-2004
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Simplex Concrete Piles (I) Ltd, Gurgaon during 05-11-2004
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Ansals Buildwell Ltd., Dwarka, New Delhi during 27-10-04
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10th Asia Construct Conference, Columbo, Sri Lanka
The 10th Asia Construct Conference was organized in Columbo, Sri Lanka, 16-17 November 2004. It was attended by Mr. Anil Chadha, Sr. Project Officer CIDC and he presented the India Country Report 2004-2005. The Country Report, prepared by CIDC, is a comprehensive document on the Construction Industry of India. . It features: Macro Economic Review and Outlook; Administration and Regulations of Construction Industry; Globalization of construction services; and a set of annexures highlight the structure of the Construction Industry.
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M/s. RCAI Awards Asphalt Study to CIDC
M/s. RCAI, a research based industrial supply company based in USA has awarded a study to CIDC. The purpose of preparing this report is to understand the Construction Industry in India and it’s future, working mechanism, Strengths, Weaknesses, Opportunities, vis-à-vis release agents for asphalt & cement concrete. The objective is to recommend choices of streams of operation within the overall ambit of road building & pre-cast concrete activities. |
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Construction Cost Indices
Construction Industry Development Council (CIDC) has computed Construction Cost Indices (CCI) for Delhi, Mumbai, Kolkata, Chennai, Bangalore & Hyderabad. The CCI represents variation in cost of construction. CCI are computed from the cost of various inputs that go into construction works and since the weightage of these inputs such as cost of cement, steel, sand, wood etc, wages & salaries and cost of equipment vary for various sectors of the economy where construction plays a major role, the indices are computed for the 11 sectors as given in Table 2 to 4. Table 2,3 & 4 gives the CCI for the period July, Aug. & Sep. 2004 respectively. The averages are computed for the cities and are given in Table 1 along with the National Average. |
Table 1: Average Construction Cost Indices
Base = 100.00, Jan 1998
| Period |
Delhi |
Kolkata |
Chennai |
Hyderabad |
Bangalore |
Mumbai |
National Average |
| March 2004 (Q4: 2003-04) |
124.12 |
129.49 |
118.86 |
137.34 |
118.83 |
131.39 |
126.67 |
| June 2004 (Q1: 2004- 05) |
124.9985 |
130.39 |
119.6348 |
138.1582 |
119.7182 |
132.2048 |
127.519 |
| Sept. 2004 ( Q2: 2004-05) |
126.858 |
132.3197 |
121.3733 |
140.1536 |
121.4409 |
134.1237 |
129.3782 |
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On an average, the index rose by 0.67% during Q1 of FY 2004-05 (April – June 2004). The index rose primarily due to increase in prices of steel & cement. Further during the period Q2 of FY 2004-05 (July - September 2004) the index rose by 1.457% again due to increase in prices of cement & steel. Thus the H1 period of FY 2004-05 witnessed an increase of 2.17%.
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Table 2: CCI for July 2004
Base = 100.00, Jan 1998
Sector |
City |
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Delhi |
Kolkata |
Chennai |
Hyderabad |
Bangalore |
Mumbai |
| Building |
121.98 |
131.8395 |
117.9415 |
137.3483 |
119.3816 |
130.208 |
| Bridges |
124.7092 |
132.9444 |
120.7614 |
141.991 |
122.6044 |
133.8335 |
| Dams |
119.7744 |
128.8484 |
118.0825 |
132.5243 |
119.4823 |
130.0871 |
| Medium Industry |
128.3167 |
133.6225 |
122.296 |
141.4453 |
122.3301 |
137.1161 |
| Maintenance |
139.6747 |
135.9384 |
125.8069 |
152.062 |
121.5469 |
136.9555 |
| Roads |
127.7717 |
132.6849 |
119.6268 |
131.8794 |
128.7282 |
128.8087 |
| Mineral Plant |
121.4402 |
131.1156 |
118.7521 |
133.6124 |
119.034 |
131.2797 |
| Urban Infra. |
128.8887 |
127.7909 |
120.6808 |
146.2712 |
119.15 |
136.5527 |
| Power |
119.779 |
126.7461 |
119.7287 |
135.9482 |
116.7787 |
132.1526 |
| Railways |
125.8886 |
130.7847 |
120.9248 |
137.2323 |
117.7586 |
132.9708 |
| Transmission |
127.2735 |
132.8321 |
120.9496 |
140.3845 |
119.4794 |
134.8158 |
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Table 3: CCI for August 2004
Base = 100.00, Jan 1998
Sector |
City |
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Delhi |
Kolkata |
Chennai |
Hyderabad |
Bangalore |
Mumbai |
| Building |
122.9502 |
132.8881 |
118.8796 |
138.4408 |
120.3312 |
131.2436 |
| Bridges |
125.5946 |
133.8883 |
121.6188 |
142.9992 |
123.4748 |
134.8876 |
| Dams |
120.6248 |
129.7632 |
118.9209 |
133.4652 |
120.3307 |
131.0107 |
| Medium Industry |
129.1892 |
134.5311 |
123.1276 |
142.4072 |
123.162 |
138.0485 |
| Maintenance |
140.7795 |
137.0136 |
126.8021 |
153.2648 |
122.5083 |
138.0388 |
| Roads |
128.6393 |
133.5858 |
120.4391 |
132.7749 |
129.6022 |
129.6833 |
| Mineral Plant |
122.266 |
132.0071 |
119.5831 |
134.521 |
119.8434 |
132.1724 |
| Urban Infra. |
129.8038 |
128.6982 |
121.5376 |
147.3097 |
120.0747 |
137.5222 |
| Power |
120.5935 |
127.6079 |
120.5428 |
136.8727 |
117.5728 |
133.0668 |
| Railways |
126.8299 |
131.7566 |
121.8794 |
138.252 |
118.6337 |
133.9589 |
| Transmission |
128.1631 |
133.7605 |
121.795 |
141.3658 |
120.3145 |
135.7582 |
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Table 4: CCI for September 2004
Base = 100.00, Jan 1998
Sector |
City |
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Delhi |
Kolkata |
Chennai |
Hyderabad |
Bangalore |
Mumbai |
| Building |
123.9043 |
133.9193 |
119.8021 |
139.545 |
121.265 |
132.2621 |
| Bridges |
126.4864 |
134.8389 |
122.4823 |
144.0145 |
124.3515 |
135.8453 |
| Dams |
121.4812 |
130.6845 |
119.7652 |
134.4128 |
121.185 |
131.9409 |
| Medium Industry |
130.0677 |
135.4726 |
123.9649 |
143.3755 |
123.9995 |
138.9872 |
| Maintenance |
141.7791 |
137.9864 |
127.7024 |
154.353 |
123.3781 |
139.0189 |
| Roads |
129.5127 |
134.4928 |
121.2568 |
133.6764 |
130.4822 |
130.5639 |
| Mineral Plant |
123.0974 |
132.9048 |
120.3963 |
135.4357 |
120.6583 |
133.0712 |
| Urban Infra. |
130.7577 |
129.644 |
122.4308 |
148.3923 |
121.0155 |
138.5329 |
| Power |
121.4135 |
128.4757 |
121.3625 |
137.8034 |
118.3723 |
133.9717 |
| Railways |
125.8886 |
130.7847 |
120.9248 |
137.2323 |
117.7586 |
132.9708 |
| Transmission |
127.2735 |
132.8321 |
120.9496 |
140.3845 |
119.4794 |
134.8158 |
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| Statistics |
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Percent Change Q1; 2004-2005 |
| Q1: 2003-04 |
Q1: 2004-05 |
| GDP at Factor Cost |
5.3% |
7.4% |
| GDP at Current Prices |
10.1% |
12.3% |
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% Change over previous year. 2002-03 |
% Change over previous year. 2003-04 |
| GDP Growth at Factor Cost |
4% |
8% |
| GDP Growth at Current Prices |
7.6% |
12.2% |
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| Core Sector Performance (based on Index of Industrial Production) |
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October 2004 (%change over previous year) |
| Electricity |
13.90 % |
| Finished Steel |
3.30 % |
| Crude Petroleum |
0.30 % |
| Coal |
6.60 % |
| Petroleum |
10 % |
| Cement |
4.0 % |
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