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For fifty long years, A. Ramakrishna (AR) was closely involved with the changes in India’s construction industry. His tenure with L&T ECC from the time he joined, soon after taking his postgraduate degree in structural engineering from the College of Engineering, Guindy, in the 1960s, to his retirement four decades later, marks a spectacular evolution of the Indian construction sector.
A. Ramakrishna (AR)
The giant corporate L&T achieved a turnover of Rs. 72,724 crore last year. There have been very few large, sophisiticated projects, be they related to factories and buildings, harbours and airports, steel plants and other industrial projects, roads and bridges, railways, sports complexes, hotels, multispeciality hospitals, or IT parks – name what you will – with which L&T has not been associated.
A. Ramakrishna (AR), who passed away recently, had been associated with a large number of them. A measure of this is evident from the growth recorded by L&T ECC under his stewardship during 1992-2004; the revenue of ECC grew close to 15 times, from Rs. 440 crore to Rs. 6500 crore, profits from Rs. 18 crore to Rs. 250 crore! This record continues, with the construction business accounting for a major share of L&T’s revenues and projects.
I have interacted with AR at the time of commissioning several prestigious projects, like a blast furnace at the Visakhapatnam Steel Plant. On another occasion, I chanced to travel with him on a flight from Frankfurt to Chennai. That was the time L&T ECC was constructing a stadium for the World Cup cricket match in Barbados, West Indies. AR explained the challenges involved in completing the project to a tight schedule at a place 10,000 miles away! The stadium was got ready in time for the World Cup match.
Such challenges were met in a great measure due to the 18-month specialised training AR underwent in structural design and engineering in the then German Democratic Republic. This enabled AR to gain proficiency in state-of-the-art German construction techniques. Regular visits to the giant construction fair Bauma and his other frequent trips to Germany enabled him to adopt several of the emerging practices. AR specialised in pre-stressed concrete for composite construction and in introducing alternative designs that saved on original cost estimates. He once referred to the advantages of steam curing of pre-stressed rib slabs, a practice common in Germany.
Recourse to alternative designs opened up the scope for achieving handsome economies. While AR noted the preference for steel structures in Europe and in Japan, thanks to plentiful availability of steel, he felt that concrete structures were more suitable in India, especially in coastal areas and for chemical and fertiliser plants that suffered corrosion. Concrete structures also saved 15-20 per cent on total cost, as steel was expensive. This technique became industry standard and was even adopted by international construction giants like Toyo Engineering.
Skills development and training have been receiving attention at the national level only in recent years. ECC set up a well-equipped centre at Manapakkam for training construction workers in a variety of skills. The centre has comprehensive curriculum and training systems and sophisticated tools and equipment for training artisans in several centres spread across the country. In-house training facilities are provided to diploma-holders and graduate engineers.
AR was closely involved in IIT-M instituting a M.Tech programme on structural engineering. Apart from imparting theory, the programme also provides for training at L&T sites. AR also took care to include financial and personnel management as part of the curriculum, thus equipping graduates to handle managerial functions.
Top industrial houses, like the Tatas and Reliance, entrust all major jobs to L&T ECC as a matter of course. The political leadership in Andhra Pradesh made excellent use of the expertise of AR. The Construction Industry Training Centre was set up in Hyderabad. The Hi-Tech City, Hyderabad, triggered the development of large IT infrastructure in the country (Murasoli Maran, then Minister of Industry, who inaugurated the Hi-Tech City, was so impressed he replicated the effort in constructing Tidel Park, Chennai).
L&T invested 89 per cent in the equity of Hi-Tech City which put Hyderabad on the global IT software map. Hitex, the international exhibition centre in Hyderabad, is another prestigious L&T project.
A view of Hi-Tech City, Hyderabad
The first modern airport in the country promoted by GMR in Hyderabad was constructed by L&T. AR also opted for L&T joining the Bangalore International Airport as a promoter and partner. The second road linking Tirupati to Tirumala was constructed by L&T-ECC in record time. The present Rs. 15,000 crore Hyderabad metro rail project is being constructed and will be operated by a subsidiary of L&T. All these huge economic activities in Hyderabad can be credited to the initiative of AR.
AR was closely associated with the Sri Sathya Sai Central Trust. L&T ECC was entrusted with the construction of the Trust’s modern hospitals, housing colonies and marriage halls. Sri Sai Baba also had L&T ECC line the Telugu Ganga Canal to help Chennai get drinking water from the Krishna river. He held AR in such affection that he presented him with a luxury car.
AR adapted quickly to the changes that flowed in cascades in the liberalisation era. L&T ECC seized opportunities for constructing roads and bridges on build-operate-transfer (BOT) basis as concessionaires. Of course, it involved unknown risks, like the initial resistance to paying tolls. I remember AR convincing political and administrative leaders on the need for such tolls. In quick time, the massive highway development programmes adopted BOT as the standard model.
AR was also involved in the setting up of the Construction Industry Development Council (CIDC) and was its first vice-chairman. The rich expertise of L&T ECC, and of AR in particular, was a big help in opting for standards in design and construction. Just look at the diseconomies and wastages suffered due to lack of attention to standards in a sector that accounts for 40-50 per cent of the capital expenditure on projects and massive employment of around 50 million!
ECC standardised form works, shuttering, and concreting. AR worked consistently on educating and lobbying for the use of ready mix concrete (RMC) which ensured the right mix and consistent quality. L&T, at that time a large producer of cement, also set up dozens of RMC plants. AR could take credit for the use of RMC gaining wide acceptance in quick time. Familiar with the speed of construction in developed countries, AR once remarked, “Our roads, bridges over level corssings and other projects can be standardised to some four or five basic designs. If this is done, we can complete a bridge over a railway level crossing in six months instead of the more than three years taken now!”
L&T ECC has completed large housing projects in short time. It constructed 10,000 primary school buildings in different locations in Gujarat at an average construction time of just 80 days per school thanks to extensive standardisation.
A matter for disappointment is the lack of recognition on the part of Delhi and the State governments to the multifarious contributions made by AR, many of which were of a pioneering nature. Tamil Nadu leadership has been focussing largely on politics, films and social issues of mass appeal. Sadly, the invaluable contributions made by business leaders, professionals, scientists and academics are not receiving the attention they deserve. Just think of this Mr. Builder not being considered for a Padma award! (Courtesy: Industrial Economist)
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