RISK ANALYSIS OF “STATUE OF UNITY” PROJECT BY

L&T

SUBMITTED BY :-

AKHIL K SANTY (1810103)

AMAL JOHNS VARGHESE (1810104)
DOMINIC CJ (1810125)

SUBMITTED TO :-

Dr. PUJA KAURA

COMPANY PROFILE
Larsen & Toubro Ltd. Incorporated in 1946 as a private limited company. Earlier it was
started as a partnership firm of two Danish engineers “Henning Holk Larsen with Soren
Kristian Toubro in Mumbai. In 1950 the company became a public company having a paid up
capital of Rs. 2 million. The company has a turnover of Rs. 141007Cr. The registered office
and the headquarters of the company is in Mumbai. The company has its offices/branches in
different parts of the country like in Delhi, Ahmedabad, Pune, Chennai, Bangalore etc.
Larsen & Toubro is a major technology, engineering, construction, manufacturing and
financial services conglomerate, with global operations. L&T addresses critical needs in key
sectors - Hydrocarbon, Infrastructure, Power, Process Industries and Defence - for customers
in over 30 countries around the world. L&T is engaged in core, high impact sectors of the
economy and our integrated capabilities span the entire spectrum of ‘design to deliver’. With
8 decades of a strong, customer focused approach and a continuous quest for world-class
quality, we have unmatched expertise across Technology, Engineering, Construction,
Infrastructure Projects and Manufacturing, and maintain a leadership in all our major lines of
business. Every aspect of L&T's businesses is characterised by professionalism and high
standards of corporate governance. Sustainability is embedded into our long-term strategy for
growth. The Company’s manufacturing footprint extends across eight countries in addition to
India. L&T has several international offices and a supply chain that extends around the globe.

HIGHLIGHTS ABOUT THE COMPANY

 The company is Currently executing metro projects across 10 cities in India – as well
as major portions of the Riyadh and Doha Metros.

 Development of India’s largest Transit Oriented Development project in Hyderabad.

 Commissioned India’s largest city surveillance project (5000 cameras at 1500

locations) in Mumbai.

 Implementation of modules of Smart Cities Programme in Mumbai, Jaipur, Nagpur,

Pune, Hyderabad and more…

 Currently building the world’s longest extra-dosed bridge over the Ganges at Patna,
Bihar.

 Executing the largest private sector defence order for Artillery Systems – for the
manufacture of 155 mm / 52 Cal Self Propelled Tracked Guns.

 Played a role in building 19 of India’s 22 nuclear reactors and is involved in all 9

reactors under construction.
  Currently building the world’s largest high-vacuum pressure chamber, the Cryostat,
for ITER.

 Delivered 8 reactors for the Refinery and Petrochemical Integrated Development

(RAPID) project for Petronas, Malayisa.

 After the successful moon and Mars missions, L&T also partnered ISRO in the launch
of 104 satellites in a single mission.

 Played a vital role in the execution of ONGC’s first Deepwater project - the Vashishta
& S1 subsea project.

 Launched L&T Infotech’s proprietary platform and Experience Centre (MOSAIC),

demonstrating how new-age technologies impact real business scenarios.

ABOUT THE PROJECT – STATUE OF UNITY

The Statue of Unity is a colossal statue of Indian statesman and independence activist “Sardar
Vallabhbhai Patel” (1875–1950) who was the first Home minister of independent India and
the chief adherent of Mahatma Gandhi during the non-violent Indian Independence
movement. He is highly respected for his leadership in uniting the 552 princely states of India
to form the single Union of India, that is why the statue has been named as the statue of unity.
Narendra Modi first announced the project to commemorate “Sardar Vallabhbhai Patel” on
7th October 2013 at a press conference to mark the beginning of his 10th year as The Chief
Minister of Gujarat. At the time, the project was dubbed, "Gujarat's tribute to the nation". The
statue was built by Public Private Partnership model, with most of the money raised by the
Government of Gujarat. The Gujarat state government had allotted Rs.500 crore for the
project in the budget from 2012 to 2015. In the 2014–15 Union Budget, Rs.200 crore were
allocated for the construction of the statue. Funds were also contributed by Public Sector
Undertakings under Corporate Social Responsibility scheme. Indian infrastructure company
Larsen & Toubro won the contract on 27 October 2014 for its lowest bid of Rs.2,989 crore
for the design, construction and maintenance. They commenced the construction on 31st
October 2014. In the first phase of the project, Rs.1,347 crore were for the main statue,
Rs.235 crore for the exhibition hall and convention centre, Rs.83 crore for the bridge
connecting the memorial to the mainland and Rs.657 crore for the maintenance of the
structure for 15 years after its completion. L&T employed over 3000 workers and 250
engineers in the statue's construction. Construction of the monument was completed in mid-
October 2018 and the inaugural ceremony was held on 31 st October 2018, presided over by
Prime Minister Narendra Modi. The statue has been described as a tribute to Indian
engineering skills.
The Statue of Unity is the world's tallest statue at 182 metres. It rises 54 metres higher than
the previous record holder, the Spring Temple Buddha in China's Henan province. The statue
can be seen within a 7 km radius.

RISK ANALYSIS OF THE PROJECT

The risks that are faced by the statue of unity project are as follows;

1. Environmental Risks

It is one of the greatest risk faced by the statute of unity project because the
environmental factors like wind, earthquakes stood as a challenge for the engineers.
The statue was very tall and in that area there were strong wind blows, so it was a
tough task for the engineers to build a statue which can face these adverse situations.
It was predicted that the statue can withstand a wind with velocity of 220 km/hr, and
earthquake up to 6.5 on the Richter scale. In order to cope up this situation
engineering team first constructed the core wall, the RCC spine of the statue. Then
steel frames were fixed.

2. Political Risks

The construction of the statue faced a lot of political risks also because the Modi
government spend a huge sum of money on this project while the farmers in the
country continues to perish and tribals protest (The land on which the statue was built
is an Adivasi sacred site that was taken forcibly from them). Many have picturized the
project as a mere political symbolism that does not add much to the historically rich
culture of India. The opposition parties criticised it and named it as a wastage of
money just in favour of the BJP government.

3. Project Risk

The statue of unity is the world’s tallest statue and was one of the main challenge for
L&T in taking up the project and whole world was looking on to the project, so the
company was having a huge risk as it was a project which represents India in front of
the whole world.

4. Supply Risks

They faced a challenge in the supply of soil and steel during the cladding of the
statue. The statue needs about 1850 metric tons or 18.5 lakhs kilograms of bronzes
cladding in all. The amount of steel and concrete used were amounted to several times
 more. Thus the supply of these became a risk for the company. In this situation Modi
had flagged off 1000 trucks to travel to 7 lakhs villages with 3 lakhs empty kit boxes
to collect soil and scrap iron farm implements.

5. Operating Risks

The L&T company is liable for the maintenance of the statue for 15 years after the
construction of the statue as per the agreement. So if the statue get damaged by any
natural calamities like earthquake, damage due to huge wing blows. The company is
liable to fix the problem, which may cause heave expenses for the company and it will
affect the company badly.

SUGGESTIONS

Some of the suggestions and recommendations are as follows:

 There was a land acquisition controversy during this project. The

land belonged to Adivasi tribe people were acquired for the
construction of the statue, so before such acquisition they have to
ensure proper rehabilitation and a court order should be done prior
to avoid time and money loss.

 If the company find it difficult to ensure the smooth supply of raw

materials, that particular task could be outsourced to any other
party for the smooth functioning of the project.

 The project acquired a huge area of land for the construction

purpose. In order to make up the environmental problems that may
occur due to the acquisition, the company has to plan activities to
bring back the environmental balance.