BUILDERS ASSOCIATION OF INDIA

Estd. 1941 BUILDERS ASSOCIATION OF INDIA (All-India Association of Engineering Construction Contractors) G-1/G-20, 7 th Floor, Commerce Centre, J. Dadajee Road, Tardeo, Mumbai 400034 Tel: (91-22) 23514134, 23520507, 23514802 Fax: 23521328 Grams BUILDASIND Web Site : www.baionline.in E-mail : bai@vsnl.com / baihq.mumbai@gmail.com Ref: 569/D/2008-09 dated December 1, 2008 MEMBERS OF THE MANAGING COMMITTEE OF BAI NOTICE The Third Meeting of the Managing Committee of Builders Association of India for the year 2008-09 will be held on Friday, the 19 th December 2008 at 9.30 A.M. at B.M. Birla Auditorium & Convention Centre, Bhawani Singh Road, Statue Circle, C-Scheme, Jaipur 302 001, Rajasthan [Tel: 0141-2385094], to transact the following business:- AGENDA 1. To confirm the Minutes of the last Managing Committee Meeting held on 9 th August 2008 at Nashik. (Minutes already circulated). 2. To grant Leave of Absence. 3. Issues arising out of previous Meeting (Action taken report enclosed). 4. To discuss and review the latest position of i. Provident Fund (Circular No.SSN/HO/07-08/01/23406-556 dated 18.7.2008 issued by Regional Provident Fund Commissioner(NDC), Employees Provident Fund Organisation New Delhi, enclosed). ii. Service Tax (Letter written by BAI to the Hon ble Finance Minister enclosed). iii. To discuss implication of mismatch of Wholesale Price Index and market rate of Steel and Cement (BAI s representation enclosed). 5. Impact of financial melt down on Construction, infrastructure and real estate sector. (Note enclosed). 6. To take note of NCCET activities. (Note enclosed). 7. To consider letter received from Shri A. Puhazhendi, Vice President, on extension of date of Patron Membership fee (Letter enclosed). 8. To discuss the letter written by BAI Pune Centre to all MC / GC Members and decide line of action (Letter enclosed). 9. To take note of Centres which have not paid 2% contribution to Charity Commissioner for 2005-06, 2006-07 and 2007-08. (Statement enclosed). 10. To discuss implication of Centres not having Tax Deducted at Source Number (TAN). (Note enclosed). 11. To note the expenditure for the period April to October 2008 (Statement enclosed). 12. To take note of reports from Chairmen of various functional Committees. (Reports received enclosed). 13. To take note of Membership position of each Centre as on 30 th November 2008 and to admit New Members. (Statement enclosed). 14. To decide the Election Programme for BAI Organisational Elections 2009-10 (Proposed Election Programme enclosed). 15. To decide about date of the next Managing Committee Meeting. 16. Any other matter with the permission of the chair. Members are requested to make it convenient to attend the meeting and also inform headquarter about attending or not attending the meeting. Also please bring this copy of the agenda. Thanking you, Yours truly, ANAND J. GUPTA HON. GEN. SECRETARY BUILDERS ASSOCIATION OF INDIA Note: The meeting will start sharp at 9.30 A.M. and will be completed by 1.30 P.M. Delhi Office: D1/203, Aashirwad Complex, Green Park Main, New Delhi 110 016 26568763 E-mail: baidelhi@ndb.vsnl.net.in BUILDERS ASSOCIATION OF INDIA

Managing Committee Meeting Jaipur, 19 th December 2008 REPORT OF SHRI D.C. AWASTHI, CHAIRMAN, VAT COMMITTEE Item No: 12 Since last General Council / Managing Committee Meeting held at Nashik on 9 th August 2008, there have been developments at various levels, which are being enumerated as below:- 1. BAI had a meeting with Shri Satish Chandra, Member Secretary, Empowered Committee of State Finance Ministers on 12 th August 2008 and explained various kinds of anomalies in different States and difficulties faced by the construction industry in lieu of such variation in VAT Act, adopted by States in different ways. Shri Chandra gave very patient hearing to delegation and advised to submit a representation in this regard for consideration of the said Committee. Such representation has been forwarded and copies sent to Headquarter for adequate circulation to members of the Association. In this context, a meeting was also arranged with Shri Lok Ranjan, IAS, Director, Department of Revenue, Ministry of Finance, Government of India, as Shri Ranjan participates in the meetings of the said Committee on behalf of Revenue Secretary. Detailed discussions culminated in better understanding and appreciation of problems of construction industry. 2. Hon ble Supreme Court of India delivered landmark judgement in 2008-VIL-30-SC in SLC (State of Andhra Pradesh Vs. Larsen & Toubro Ltd. On 26 th August 2008 holding Main contractor accountable for the sale turnover of the sub-contractor and realisation of VAT from sub-contractor. The said judgement may prompt few departments to realise VAT from sub-contractors and main contractor, resulting in double taxation, which is in violation of the constitution. As the captioned order related to the State of Andhra Pradesh, a meeting was convened at Hyderabad on 13 th October 2008 and the agenda and minutes were circulated to all members of BAI by Headquarter. 3. Gammon India Limited, Kolkata decided to file petition before the Tribunal on VAT and Shri Alok Choudhary of Gammons India Ltd. Suggested that, our members from BAI, Kolkata, may join GIL as co-petitioners so as to make it more effective. The matter was discussed with Shri S.K. Basu, and copy of GIL petition was forwarded to Shri S.K. Basu for doing the needful. 4. In Uttar Pradesh, we had dozen of meetings with Commissioner, Commercial Tax and Principal Secretary, Tax and Registration, Government of Uttar Pradesh on evolving Compounding Scheme for civil works contracts. It so happened that on two occasions, first in March 2008 and second time in October 2008, both Principal Secretary and Commissioner, Commercial Tax concurred to send the proposal for cabinet approval and coincidently, both the officers were transferred thereafter for some other reasons. Now, we are pursuing with the present officers, who have taken over on 13 th October 2008 and we are optimistic to get scheme in a month or so. We need to be patient with the Government. 5. Our Writ Petition No.643 of 2008 is pending before Allahabad High Court (Builders Association of India Vs. State of Uttar Pradesh) for admission and interim stay against levy of 4% TDS under VAT Act, 2008 challenging Government Notification dated 4 th March 2008. We have engaged most competent Senior Advocate Shri Bharatji Agrawal in this case. It is being listed every week during the current month. 6. We are also pursuing the matter of earlier compounding scheme being in operation as the old scheme has not been withdrawn, terminated or superceded by any other scheme. We are quite optimistic of some relief either by way of extension of old scheme or formulation of new scheme. Sd/- D.C. AWASTHI Chairman, VAT Committee

BUILDERS ASSOCIATION OF INDIA Managing Committee Meeting Jaipur, 19 th December 2008 REPORT OF SHRI CHERIAN VARKEY, CHAIRMAN, IFAWPCA CO-ORDINATION COMMITTEE Item No: 12 A meeting of IFAWPCA Co-ordination Committee was held on 21 st August 2008 at Hotel Presidency, Cochin. The following Members were present in the meeting:- 1. Shri S.P. Goel, President, BAI 2. Shri P. Jayapal 3. Shri Cherian Varkey 4. Shri K. Sriram 5. Shri P.K. Ramachandran 6. Shri V.S.K. Moorthy 7. Shri V.M. Fazal Ali 8. Shri C.K.S. Panicker 9. Shri M.M. Mohandas 10. Shri K. Lava 11. Shri M.V. Antony 12. Shri P.P. John 13. Shri Prafulla Kumar 14. Shri Anand J. Gupta 15. Shri B. Chandra Mohanan 16. Shri Alex P. Cyriac 17. Shri Santhosh Sebastine Antony 18. Shri George Thomas 19. Shri Varghese Kannampally 20. Shri Biji Stephen 21. Shri Shaji Mathew 22. Shri Sany Francis 23. Shri Prince Joseph 24. Shri A.K.Yussouf 25. Shri K. Padmanabhan 26. Shri Raju John Shri Cherian Varkey briefed members on IFAWPCA and its Convention by stating that IFAWPCA was established in 1956 and its Head Quarter is at Philippines. IFAWPCA usually comes out with convention of its member countries to showcase the latest technology or information in construction industry so that member countries can develop. The conventions are normally held in duration of 18-24 months and so far there were 36 conventions the first being in the year 1956 and the last one was in 2006 at Gold Coast, Austrialia. India is slated to host the 40 th IFAWPCA Convention in the year 2013 i.e. after the conventions of Dhaka (scheduled to be held between 4 th and 7 th March 2009) followed by Conventions at Taipei (China) and Hong Kong. He then appraised members on the purpose of this meeting by stating that certain mandatory conditions of IFAWPCA Secretariat to be fulfilled at Dhaka. Shri S.P. Goel, President congratulated Cochin Centre for accepting the challenge of hosting 40 th IFAWPCA Convention in the year 2013. He also complimented his immediate predecessor Sri. P.R. Mundle, for selecting Cochin Centre, to entrust the responsibility of holding this mega event on behalf of BAI. He felt Cochin Centre being the host of IFAWPCA Convention, BAI Head Quarter as also all members of BAI can expect a world class show as Cochin Centre has a proven track record of conducting events in grand style. He offered all co-operations from the HQs and personally assured North Zone s cooperation of whatsoever nature as and when required. He also reminded members to participate in the ensuing IFAWPCA convention to be held at Dhaka so that BAI members can understand the `plus and `minus points while holding a convention of the magnitude of IFAWPCA Meet. He appreciated the IFAWPCA Co-ordination Committee for their advance planning and felt that the matters like budgeting, delegation fees, theme of the convention, programs involving all States in India, etc. should be kept in the back of the mind while completing the plans. Shri Anand Gupta, Hon. Gen. Secretary felt pre-planning will be very useful to achieve the targeted results without exerting more pressure at the last moment. He brought to the attention of members to the last All India Builders Convention held at Cochin, and opined that, it was the best and orderly arranged convention he ever attended. He offered the full support of Headquarters by way of printing articles or advertisement in the `Indian Construction Journal or give an exclusive publicity in BAI website. He felt BAI members, who intends to visit foreign countries as trade delegates should be encouraged to learn about the advanced technologies of the visiting countries and their visit should bring respect to BAI.

Shri Cherian Varkey then appraised members on the purpose of this meeting by stating that, BAI being the host of 40 th IFAWPCA Convention is required to fulfill certain mandatory formalities at 37 th IFAWPCA Convention to be held at Dhaka in March 2009. The first requirement is, BAI should nominate the name of Second Vice President and the same will be announced at Dhaka and he will take oath and occupy the Chair of Second Vice President at Taiwan IFAWPCA Convention. The Second Vice President will occupy the position of First Vice President in Hong Kong IFWAPCA Convention and will ultimately become the President of IFAWPCA during the IFAWPCA Convention to be held in India. Similar nomination should be made for Secretary General post of IFAWPCA too. Shri Cherian Varkey brought to the attention of members on the proposal of ad-hoc committee and felt any of the following should be formally approved by this committee: a) Shri Ajit Gulabchand, Hindustan Construction Co. Ltd. b) Shri Naik, Larsen & Toubro Ltd. c) Sri Abhijit Rajan, Gammon India Ltd. d) Sri Cyrus Mistry, Shapoorji Pallonji & Co. Ltd. The President felt that there would not be a better person than Sri Ajit Gulabchand who was the Past President of BAI and also was closely associated with the last IFAWPCA Convention held in Mumbai in 1991. All members present felt the same and endorsed the President s view and authorised Sri Cherian Varkey to approach Shri Gulabchand with BAI s request. The Committee unanimously passed the following resolution by taking into consideration that, Shri Ajit Gulabchand will honour the request of BAI to become the President of IFAWPCA. Shri S.P. Goel, President felt since the Convention is being held in Cochin, the Secretary General should also be a member from Cochin Centre. Shri. A. K. Yousouf proposed the name of Sri M. V. Antony for the post of Secretary General, which was accepted by all members. The Committee then unanimously accepted the suggestion. Shri K. Lava, Chairman, BAI Cochin Centre brought to the attention of members of the last IFAWPCA Convention held at Goldcoast, Australia and appreciated the organisers for their professional approach. He felt India should have more projects with advanced technologies so that foreign delegates get attracted to visit our country. He also felt the IFAWPCA Co-ordination Committee should have more participation of Centres throughout the country so that it will have an all India colour. Shri K. Sreeram, Co-Chairman, IFAWPCA Co-ordination Committee at the outset complimented the participants for their active participation in the discussion and suggested that, a competition of selecting an attractive logo of 40 th IFAWPCA Convention should be conducted immediately. He felt wider publicity for same should be given through BAI journal `Indian Construction. He also felt that publication and circulation of the Logo, launching of exclusive website for the convention, releasing of a Convention CD etc, should play a vital role in getting maximum publicity to the event. He also felt official carrier, official communicative media like mobile phones, official courier should also be considered. He also felt a dress code and adoption of project ethicate may also be considered. Sd/- CHERIAN VARKEY Chairman, IFAWPCA Co-ordination Committee

BUILDERS ASSOCIATION OF INDIA Managing Committee Meeting Jaipur, 19 th December 2008 Item No: 12 REPORT OF SHRI BHAGWAN J. DEOKAR, CHAIRMAN, CIDC CO-ORDINATION COMMITTEE I am thankful to the President for appointing me as Chairman of CIDC Co- Ordination Committee for 2008-09. The following are the main points I have taken up with CIDC in various meetings and interaction held in the past:- 1. There has to be a comprehensive Standard Contract Document taking care of price escalation and arbitration clause. 2. Government should issue directives to Banks and Financial Institutions to consider lending to infrastructure sector to be on priority basis at lower interest rate. 3. There has to be a Construction Industry s specific Ministry. 4. Government should initiate steps in providing more vocational training for construction workers. 5. An economic package should be announced for revival of infrastructure in projects. Sd/- BHAGWAN J. DEOKAR Chairman, CIDC Co-ordination Committee

BUILDERS ASSOCIATION OF INDIA Managing Committee Meeting Jaipur, 19 th December 2008 To take note of NCCET activities Item No: 6 The National Council for Construction Education & Training (NCCET) had introduced the innovative concept of skill certification through the Industry Route Certification, wherein construction workers with sufficient experience, on their being so certified by the employers, were being issued Orange Band Certificate by NCCET, which was to be valid for 5 years. NCCET received a very good response to this concept from all over India. Subsequent to being issued Orange Band Certificate, the said worker was to be issued Green Band Certificate by NCCET after testing him. For this, NCCET will set up Accredited Testing and Certification Units (ATCU) at major Centres throughout the country. An ATCU will undertake trade test to anyone who presents himself/herself for testing and pays the prescribed fee. On passing the test he/she receives a Green Band Certificate. Any worker, who has worked in the construction industry for 5 years, desires to be trade tested, and pays the prescribed testing fee shall also be trade tested at the Accredited Centres. As a first step in setting up ATCU across India, NCCET organised the first Testers Training Programme in Pune on 27 th September 2008. Dr. Anil Agarwal conducted the training. Dr. Agarwal is a Graduate Civil Engineer with Masters Degree in Construction and Management, and Doctorate from Shivaji University. He has been associated with NICMAR since 1999 and presently handling the post of Head ACM : responsible for organising and conducting Academics of PGD ACM, two years full time programme consisting intake of 150 students. In the first session, Dr. Agarwal briefed the would be testers about conducting examinations of the workers, which included 40% emphasis on his knowledge, 40% on skills and 20% on attitude. He then talked about the safety measures on construction sites and precaution to be taken by the workers while doing the job. The session was supported by visuals. In the second session, Dr. Agarwal highlighted about the materials, and testing procedure of materials on site without laboratory equipments. He also informed about standard specifications of the commonly used construction materials. The training programme ended with a question & answer and interaction session and Dr. Anil Agarwal answered the queries of the would be testers on technical issues. Shri K.L. Mohan Rao, Dy. Chairman, Human Resources Committee, BAI and Shri D.S. Shirole, Member, Human Resources Committee, BAI answered the administrative questions regarding conducting examinations, issuing cards / certificates, etc. Delegates were requested to inform other Centres in their region about the Testers Training Programme and to introduce their members to attend the next programme to be conducted shortly. Shri D.S. Shirole informed that series of such training programmes can be arranged by NCCET if the members come forward and convey their willingness to the BAI Secretariat.

BUILDERS ASSOCIATION OF INDIA Managing Committee Meeting Jaipur 19 th December 2008 Item No.3 ACTION TAKEN REPORT ON THE MANAGING COMMITTEE MEETING HELD ON 9 TH AUGUST 2008 AT NASHIK 1. Item No.3 2. Item No.9 3. Item No.10 Issues arising out of previous meeting BAI Constitutional Amendments The amendments proposed by the Constitutional Amendment Committee and approved by the Managing Committee in the meetings held on 10 th May 2008, and 9 th August 208 at Trivandrum, and Nashik, respectively, has been approved by the Special General Meeting of BAI held on 20 th September 2008 at Mumbai, and the same is incorporated in BAI Rules and Regulations. The approved constitutional amendments have already been circulated to all Members by Minutes of Special General Meeting under reference No.347/O/2008-09 dated 24 th October 2008. Builders Day 2008 celebration. BAI Secretariat has sent letter No.303/S/2008-09 dated 1 st September 2008 to Chairmen / Hon. Secretaries of all BAI Centres requesting them to celebrate Builders Day 2008 on the theme Global Trends and Challenges for Construction Industry. Organising a National and International Technical Tour. (a) National Technical Tour Shri K. Sriram, Past State Chairman, Karnataka, have shortlisted some major technically sound projects in the Eastern Region. The tour will be arranged once all arrangements done by Shri K. Sriram. 4. Item No.12 (b) International Technical Visit The proposed visit to Dubai to understand the technicalities involved in the construction of palm buildings and also to understand the technical details of the construction of the tallest buildings in the world, BAI Secretariat has collected quotations from three renowned tour operators and shortlisted In Orbit for the said tour. The tour will be held between 21 st February 2009 to 25 th February 2009 and the cost will be approximately Rs.55,000/-. To consider letter dated 12 th July 2008 written by Pune Centre The above matter was discussed in the 67 th Annual General Meeting of BAI held on 20 th September 2008 at Mumbai, and the following was the outcome:- The President expressed Headquarter s willingness to give Rs.25,00,000/- for

5. Item No.17 (i) 6. Item No.17(v) purchasing new office premises for BAI Pune Centre, partly as grant and the rest as loan with interest to be repayable within 5 to 6 years. Shri K.P. Baney, Past Vice President, and other members from Pune present in the meeting refused the offer and insisted the entire amount of Rs.25,00,000/- should be given as grant. President requested them to pragmatically consider his offer as Pune Centre s contribution of Patron Membership fees forming part of the Corpus is less than Rs.25,00,000/-. Further, he observed that, as per BAI Rules and Regulations, Trustees can not touch Corpus Fund amount contributed by other Centres for purchasing office premises for another Centre. While rejecting the offer, Shri K.P. Baney stated that, Pune Centre is withdrawing the request for contribution from Headquarter for purchase of office premises and left the house during the meeting and this forced the President to close discussion on the subject. However, this matter will again be discussed under item No.8 of Agenda of today s meeting. Renovation of BAI Headquarter s Office The condition of the office is very pathetic and it needs urgent repairs and renovation. The minimum amount required for this purpose is approximately Rs.25 lakh. BAI Secretariat has sent letter No.527/N/2008-09 dated 12 th November 2008 to Chairmen of all BAI Centres and Managing Committee and General Council Members and also printed in October 2008 issue of Indian Construction Bulletin, seeking donation to meet the expenses for renovation. No amount has been received till date for this purpose. Legal Fund Collection BAI Secretariat has sent letter No.502/O/2008-09 dated 21 st October 2008 to Chairmen/Hon. Secretaries/Hon. Treasurers of all Centres requesting to send Centre s contribution towards Legal Fund. However, so far no contribution has received from any Centres.