Celebrating the Real India: Through Public Private Partnership

Celebrating the Real India: Through Public Private Partnership

We celebrate India's 69th Republic Day today. An occasion to rejoice our independence and our sovereignty. A lot has been done. Lot more has to be done. While the government attempts to achieve a lot through its established machinery, the private institutions are also trying their best to contribute towards the nation. One route to achieve the India of our dreams is by bringing together the best of both the worlds - through public private partnership. Not just in the technical way, but in a way that is core to our collective identity as Indians. Here is one such example of a project done almost two decades ago. Yet, it resonates what we all stand for when it comes to love for our motherland and the well-being of its people. Known as the 77-day wonder, it truly depicts the power of what we as Indians, are capable of, despite all limitations, despite all differences and despite all idiosyncrasies.

When the Chief Minister of Andhra Pradesh called the President of Larsen & Toubro...

Image: The Majestic Shrine of Lord Venkateshwara atop Tirumala Hills

‘On the morning of 7 November 1999, the Chief Minister of Andhra Pradesh, Chandrababu Naidu, telephoned me and said that the Tirumala Hills have water supply that will last only for two months. All pilgrims will get affected (if there isn’t water atop the hill shrine). You must immediately help,’ recalled Anumolu Ramakrishna (A.R.), then Deputy Managing Director, Larsen & Toubro, during our conversation. The Tirumala Hills in the Chittoor District of Andhra Pradesh is the abode of Lord Venkateshwara. It is among the holiest Hindu shrines in the world and is visited by one lakh pilgrims every day. On special occasions like the Annual Brahmotsavam, the number of pilgrims shoots up to five lakh. The annual pilgrim estimates range from 5 to 20 crore, making it one among the most-visited holy places in the world. In the past, L&T had constructed many structures for the benefit of pilgrims including the famous ‘Q’ complexes, the Asthana Mandapam and the administrative office-building complex for Tirumala Tirupati Devasthanam (TTD - The apex administrative body of the temple established under the TTD Act in 1932 by the Government of India). However, a water supply project for Tirumala Hills, which are 3,200 feet above sea level, and about 10.33 square miles in area, would take at least a year for completion. 

It was the Deepavali Day. A.R. called K.G. Hariharan (KGH), Executive Vice President and Head of Industrial Projects and Utilities at ECC, requesting him to go to Hyderabad and meet the Andhra Pradesh (AP) Chief Minister (CM) the very next day. KGH was not prepared to face the CM without extensive knowledge about the problem. But A.R.’s persuasive skills made all the difference. The very next morning, KGH reached Hyderabad with his colleagues—Subbiah and Jagannathan. At 7 p.m., they had a meeting with some of the senior-most state secretaries headed by Rambabu, Additional Chief Secretary, AP Secretariat. They explained to KGH that the goal was to transport water from Tirupati, the foothills of the holy shrine to the Tirumala Hills, where the temple complex was located. 

Image: The steep incline of The Tirumala Hills

The project involved the transportation of water over a height of around 800 metres, construction of ground level service reservoirs, electrical substation, piping mains and accessories. It also called for design, supply, installation, testing and commissioning of pipeline, erection of pumps with motors and surge protection equipment. It was a comprehensive engineering, procurement and construction (EPC) project, a concept that ECC had successfully pioneered in India. EPC was known for good quality and economic construction. Regrettably, most government contracts are item rate contracts as opposed to lump-sum EPC contracts. This led to variability in designs and a consequent rise in the frictional cost of interaction between the nodal agency and the construction contractor.

The secretaries wanted the project cost estimates within 24 hours. This was the first challenge for the team since they didn’t have complete technical data. However, they managed to prepare a rough estimate overnight. The next evening, the CM met them and expressed immense confidence in L&T’s ability to achieve steep targets. He wanted the project to be completed within sixty days. This was impossible. With great hesitation, KGH committed to complete within ninety days. Though the team made the commitment, they realized that the stakes were extremely high. Failure to meet the deadline would not only affect the team, but A.R. and L&T as a whole. Given the dire need for water, the CM had not even called for an open tender to save time that would be lost in a tendering process. He had reposed his faith on L&T’s ability to deliver. Non-accomplishment would impact his political reputation as well; and as always, the opposition parties were likely to allege collusion.  

Leaving behind all pessimism, KGH and team got into action. One of the first challenges was to gather the required workforce. KGH immediately shot a telegram to his trusted worker Abu from Kerala to arrive at Madras (now Chennai) within thirty-six hours. Not surprisingly, when KGH returned to Madras, Abu was waiting for him at the entrance of his office. He told Abu, ‘Go back home and collect 150 workers and reach Tirupati in three days.’ Without a question, Abu said, ‘Seri, Sir.’ (Yes, Sir.)

The Project Begins... But with Six Major Challenges

Image: The Underground Water Storage Reservoir at Tirumala

On 18 November—the day of the Bhumi Puja (ground-breaking ceremony), the countdown began. Through hectic consultations within the team, the design concepts and engineering plans were finalized by 30 November. The major requirements for the project included: four units of 640 KW pumps and motors, connected fitments in the pump house, and 2000–3000 workers to carry out civil jobs, including the entire electrification and automation job. The first stumbling block was the 640 KW pumps and motors. It was nearly impossible to procure them in less than 120 days. So the first call KGH made was to a very senior executive of Kirloskar Pumps & Motors (India’s largest manufacturer of pumps and valves; part of the Kirloskar Group founded in 1888 and headquartered in Pune), ‘I need four 640 KW pumps and motors. How fast can you deliver them?’ ‘Minimum six months,’ was the answer. ‘I’m talking about six days, and you’re talking about six months,’ retorted KGH. ‘You keep expressing your love and admiration whenever we interact. However, when I genuinely need your help, you’re not with me. If you really mean what you say, I want these pumps to reach us in the shortest time.’ His answer was ‘I can, perhaps, give it in four months.’ Then KGH said, ‘This is for Tirupati.’ The name of the Divine seemed to help. The response from the other side was, ‘I will make it in sixty days.’ After a lot of back-and-forth, they mutually agreed to forty-five days. ‘In the history of this industry, such heavy-duty pumps had never been supplied in less than six months,’ observed KGH. 

The team moved to the third challenge—steel procurement. The project required 450 tonnes of steel plates of a particular width that no steel manufacturer in India rolled. Again, KGH called a senior executive of a renowned steel plant, ‘I need these plates.’ The answer was, ‘Hariharan Saab (Sir), we do not roll steel plates of this width.’ KGH shot back, ‘Don’t tell me what width you roll. I know that perfectly, since I was the one who built this plant for you… I want these plates in three days.’ KGH’s colleagues were stunned to see his tenor. However, the passion to achieve the impossible had got the better of him. He told the steel plant executive, ‘I will send a team of people. You start rolling plates of 1.5 m width, I will arrange laser-cutting to the width of 1.25 m. I know you’ll incur a loss of more than 20 per cent, but remember you are doing this for Lord Balaji!’ He continued in a humorous vein, ‘In doing so, you would have washed your sins to a certain extent. Don’t you think it is a good opportunity?’ From the other end he heard peals of laughter. Finally, they confirmed, ‘I’ll do it Saab.’

Now, they tackled the fourth challenge. The list of problems seemed endless. They needed around 450 tonnes of steel that no major steel company was willing to provide at such a short notice. With a lot of research they came across a company, which hitherto was never known to make steel in the plate form. Astonishingly, this company agreed to manufacture and transport the steel from Delhi to remote Madurantakam in Tamil Nadu in just three days. Challenge number five was that these steel plates had to be rolled into pipes, each about 12 metre in length within seventy-two hours! What appeared as a ‘Divine intervention’—the only spiral building company in South India, PSL Holdings, enthusiastically came forward to execute this task. During the normal course, manufacturing these pipes would take at least a month. Instead, the rolled pipes reached Tirupati from Chennai within seven days! KGH termed this project a ‘Seventy-seven-day wonder’, because the team had set seventy-seven days for completion as the target timeline. 

The sixth challenge was the transportation of these pipes through steep slopes to the desired spots. KGH discussed with Abu and they jointly inspected the topography. An idea flashed. They decided to launch the pipes using the tall trees of the terrain. Interestingly, the first challenge related to manpower had brought in a multiplied solution. Within seven days, ECC mobilized 2500 workers from across India. A human chain was used to transport the material for concreting up the treacherous terrain. To ensure high levels of workers’ enthusiasm, A.R. visited the project site in December 1999. As the work was in progress, he walked down the hills and met all the workers and staff. This was a great morale booster. A unique aspect of workers’ commitment that stood out was the oath taken by Abu and his predominantly Muslim labour force. They vowed to stay-off liquor, smoking and non-vegetarian food for the entire duration of the work. (In a Hindu Vaishnavite temple precincts, these three practices are prohibited.) The workers epitomized genuine secularism in action. 

Image: The pipes launched using pulleys tied to trees

Mission 77 Accomplished... People's Well-being Ensured... Prime Minister of India Delighted...

Image: The pipelines laid across the hills in just 77 days

The testing and commissioning of the pipeline was scheduled for 1 February. KGH called his colleague onsite—Jagannathan—and enquired about the pressure. Jagannathan joked, ‘Which pressure sir, mine or the line pressure?’ With exhilaration, he almost shouted, ‘Water has reached Tirumala, sir!’ At the other end, KGH shed tears of joy and relief. Mission Seventy-seven had been accomplished. It was the most challenging project in his quarter century-long career! It was a project where passion worked for reasons that went far beyond money and status. On 2 February, the water supply began to the Tirumala Hills, twelve days before the ninety-day commitment to the CM. 

Image: Prime Minister Atal Bihari Vajpayee at Tirumala

‘Prime Minister Atal Bihari Vajpayee came to Tirumala and appreciated how well this project was done. And we attributed that if this could be achieved, it is God’s grace and not just our efforts. Many times, it appears that things are happening on their own, but God’s grace is always needed for accomplishing any task,’ observed A.R. with a sense of humility.

Know more about India's leading corporations and their unique approach to business in 'WIN-WIN CORPORATIONS: The Indian Way of Shaping Successful Strategies'.

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