Tuesday, September 21, 2010

INDIA: Metro rail project boost cement

The revival of the Hyderabad metro rail project is seen as a boost for cement and steel companies, which now have started coming out of the recession and the subsequent lack of demand from the real estate sector. The two industries are banking on the infrastructure segment for growth.

According to officials, the Rs 12,132-crore metro rail project would require about 2.6 million tonne cement, 2,17,000 tonne of steel and 5.8 million cubic metre concrete. This will translate into 52.31 million bags of cement. The average price of each bag (50 kg) is about Rs 200.

Pillars would come up every 30 meter along the 71-km route. In all, 66 station will come up for the metro project. Civil and engineering works will account for at least 40 per cent of the project cost.


The project, which would take five years for completion, would create jobs for about 20,000 labourers and another 5,000 skilled engineers.

“Cement consumption will be massive. Many ancillary industries and machinery manufacturing and servicing units will come up around Hyderabad,” said Hyderabad Metro Rail Limited managing director NVS Reddy.

The metro rail will come up on three high-density traffic corridors — Miyapur-LB Nagar (28.87 km), JBS-Falaknuma (14.78 km) and Nagole-Shilparamam (27.51 km).

Property development at the three depots spread across 212 acre will also spur the demand for cement and steel.
According to estimates, the three corridors would need about 8.77 million bags of cements while depots would require about 13.85 million bags and stations 7.19 million bags. The parking and circulation area would require 22.5 million bags.
Likewise, 1,12,500 tonne steel would be needed for the corridors, 33,000 tonne for the depots, 17,200 tonne for the stations and 54,000 tonne for parking and circulation. This apart, 600,000 tonne cement will be used for creating the rail corridors.

According to Ramesh Chandro, managing director of Bheema Cements, the metro rail project will trigger cement consumption in Hyderabad.

At present, the city consumes 400,000-450,000 tonne of cement per month. The metro rail project alone will mean an additional cement production of about 1.5 to 2 million tonne per annum during the project duration.

The demand for steel had been sluggish in the city for the last two years due to the economic slowdown and recently due to agitations for and against Telangana. The metro rail project would trigger the demand, said RK Birla, managing director of Sujana Metal Products, adding the company had launched a new product for bigger projects.

“It is too early to say what is in store for us. But we are optimistic of some good opportunities,” he said.

Anand Reddy, managing industries of Pennar Industries, which makes coach profiles among others, said the metro project would be a major opportunity.

“We expect to see some demand for crash guards, stainless and mild steel coach profiles once the designs are on the table,” he said.

Pennar is also working with BEML for coaches.

No comments: