All Stories

Some six months after they fled the real estate sector, investors are gradually making their way back. This time around, high networth individuals (HNIs) and domestic funds are putting money mainly into office and retail spaces.

As the economic meltdown unfolded in late 2008, commercial realty became the worst hit segment in the sector and lease rental and property rates fell by 30-40% in the metros and the bigger cities. The lower prices, in turn, have triggered some big ticket sales in recent months.

In May, Unitech Ltd, India's second biggest listed developer, sold a 200,000 sq. ft office property in Saket, New Delhi, to an investor for Rs450 crore, nearly Rs200 crore cheaper than in 2007-08. Unitech didn't disclose the identity of the buyer.

Big catch: The DLF tower in Gurgaon. The cash-strapped realty firm sold its 66% stake in a private mill property in central Mumbai to an undisclosed Chennai-based investor for Rs310 crore in May

In April, three investors from Kolkata bought 50,000 sq. ft of an office property near Bangalore's Outer Ring Road for Rs35 crore, about 20% lower than the asking price till mid-2008, said a property consultant who brokered the deal. He didn't want to name anyone involved in the deal. The developer had earlier leased the property to companies.

"Many HNIs and funds are now returning, looking at only commercial properties...to take advantage of the falling rates. The returns for such properties are as high as 12-13% compared to 3-4% in residential projects," said Farook Mahmood, chairman of Bangalore-based advisory Silverline Group Inc.

For example, a Hyderabad investor with Rs300 crore is scouting for commercial properties in Bangalore, said Mahmood, without elaborating.
There is huge demand from HNIs for buying office properties, said a Unitech spokesman. "We are in contact with a group of HNIs with a portfolio of Rs1,000 crore each, who are looking at lucrative deals," he said.

Unitech, also cash-starved, has been selling office properties and hotels the past two quarters in and around New Delhi and Mumbai. Domestic property-focused funds, which earlier targeted residential projects, too, are looking at commercial properties now. Red Fort Capital Advisors Pvt. Ltd, for example, has invested Rs400 crore in three commercial properties in New Delhi and Mumbai and is looking for more.

Source: Live Mint Big-Ticket : Office, Retail Space Is Hot Property For High Networth Individuals (HNIs)

The schedule

• Sale of Brochure at ARCs and submission of online forms:July 10-July 18, 4 pm

• Confirmation of application form and verification at ARCs:July 10-July 18, 5 pm

• Display of provisional merit list: July 20, 5 pm

• Submission of complaints if nay at respective ARC: July 21, 5 pm

• Final merit list and distribution of seats: July 22

• Submission and confirmation of on line form for CAP round I:July 23-July 27

• Cusrow Wadia Institute of Technology, Pune

• Government Polytechnic, Pune

• Government Polytechnic, Avasari (khurd)

The CAP will cover 36 government and 18 aided polytechnics across the state with a total of 24,485 seats.

Source: Sakaal Times Polytechnic admissions from July 10

On June 15, MSEDCL submitted a petition before MERC, along with a new proposal for zero load-shedding model for seven revenue districts: Pune, Thane, Vashi, Nagpur, Amravati, Nashik and Aurangabad. The petition was moved after the MERC directed the power distribution company to file a comprehensive petition on or before June 30, failing which the regulatory body would scrap the existing Pune model.

The Commission had stated that the comprehensive petition should cover steps taken to incentivise decentralised additional power generation capacity and the road map for the same, steps taken to minimise load-shedding in its licenced area of supply and the road map for the same, road map of MSEDCL to supply continuous power to consumers specifying the milestones to be achieved with time frame and steps taken for appointment of franchisee through competitive bidding process and the road map for the same.

Sajag Nagrik Manch president Vivek Velankar said that the latest MSEDCL proposal has several lacunae. He said that in the new proposal, the company has stated that it can acquire 448 MW on a 12-hour basis for the seven cities at an average rate of Rs 7.50 paise per unit, based on rough estimates.

Source: Sakaal Times New model has flaws, says activist

The Pune Municipal Corporation (PMC), which recently sought a record from the Groundwater Survey and Development Agency (GSDA) on the number of dug wells and bore wells within its jurisdiction that it could take under control during times of acute water crisis, has been stunned by the statistics it received.

To add to its woes, the PMC has discovered that not all the dug wells and bore wells are in working conditions. "Some have closed down due to disuse, and will need extensive repair before any water can be drawn from them,'' additional municipal commissioner Umakant Dangat said.

Interestingly, had these underground sources of water been in use, they could have been a rich source of water as the water table in the district is very good sometimes just about 25 ft below the surface, officials said.

Another alternative that the PMC officials are trying is to convince the neighboring PCMC to divert some of its water to feasible areas like Bopodi and take at least part of the demand on the city. "We have a good network of pipelines between Bopodi and Pimpri-Chinchwad and it can be put to good use if the PCMC allows,'' said Pramod Nirbhavane, head of water supply department of the PMC.

Meanwhile, senior BJP leader Vikas Mathkari has demanded that the PMC order suspension of all work on construction sites in the city.

The five buses inducted on Wednesday are among the total 887 buses which will be introduced in the fleet over the next six months, said PMPML's chairman and managing director Nitin Khade. By the end of this year, PMPML's total fleet of buses would be 2109, he said at a function organised to dedicate the buses to the city. The function was attended by Pune mayor Rajlaxmi Bhosale, Pimpri-Chinchwad mayor Aparna Doke, as also elected office-bearers of both the municipal corporations.

In his speech, Khade compared the cities of Pune and Bangalore, where buses comprise a major part of the public transport system. "While Bangalore has 80 buses for a lakh of people, Pune has just 28. This shortage of vehicles invariably makes it difficult for PMPML to improve its services." However, 650 buses procured under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme, 162 buses got on lease from private operators and another 75 taken from funds made available by both the municipal corporations will start arriving in the next few months, he added.

At present, the PMPML has a fleet of 1,441 buses, of which 267 have been taken on lease from private operators. Khade said of the 1,441 buses, the transport undertaking has 219 buses, which are more than ten years old. The frequent breakdown of these vehicles affects the transport services and creates a bad image, he said. However, after the induction of the 887 buses, the old buses will be scrapped. The need for more buses will be felt even more because the free-travel scheme for students studying in standard V to X will start shortly. A similar scheme is to be introduced for students in Pimpri-Chinchwad, because the municipal corporation has forwarded a proposal in this regard, he said. Various innovative schemes such as making daily bus passes available with conductors in the buses will also be introduced soon.

Rajlaxmi Bhosale said the PMPML is committed to providing efficient public transport services for the people. When the transport body was formed after the merger of the Pune and the Pimpri-Chinchwad Municipal Transport undertakings, the citizens had high expectations from the new transport company. The PMPML is on its way to providing good services, she added. Doke said the public transport service should improve such that people should be forced to leave their private vehicles at homes and take the bus.

One of the directors of the PMPML, Ajit Apte, said in his speech that plying buses on public-private partnership does not mean privatisation of the transport body. The objective behind the formation of the PMPML will be fulfilled only if the transport company is able to provide good services.

At the function, Nationalist Congress Party leader of the house in the PMC, Anil Bhosale, handed over a cheque of Rs 20 crore on behalf of the PMC for payment of salaries and arrears of the PMPML employees. Among others present at the occasion were standing committee chairpersons of Pune and Pimpri-Chinchwad, Nilesh Nikam and Dnyaneshwar Bhalerao, PCMC commissioner Ashish Sharma and senior corporators Ujwal Keskar, Sulabha Ubale. MLA Kamal Dhole Patil presided over the function.

Addressing a press conference here on Wednesday, Vijay Kolte, vice president of the council, said, "On the lines of other educational institutes, agricultural universities also want to adopt information technology in its routine work. The council has submitted a proposal to the state government and is expected to complete the project in a year."

The process of connecting the four agri-universities is expected to cost Rs five crore, but could be revised after finalising the project, said Kolte.

The council has sought a software which will process the documents from admission to convocation, and will keep updated records of the students, university projects, various programmes and activities. The universities will also upload and share information like news about recent varieties of grain being developed, response to these varieties and other established research.

Kolte said, "The council also wants new agriculture colleges and other allied colleges to open in the state and, this year, the state has granted permission to 12 new colleges to begin their functioning. All the colleges fall under the Mahatma Phule Krishi Vidyapeeth in Rahuri, Ahmednagar." With this, the total number of agriculture colleges in the state has gone up to 112, with over 7,000 seats in all. It includes both government, government-aided and non-aided colleges, he said.

During the general body (GB) meeting on Monday, corporators had insisted that the civic administration demolish immediately an illegal construction built by a trader in Pimpri camp.

The civic administration conducted an anti-encroachment drive on Monday afternoon and Tuesday morning but had to abandon it after the Pimpri court directed that the status quo be maintained.

The civic administration has been demanding that the municipal commissioner be granted permission to refer the matter of the illegal constructions of 23 corporators to the court so that the disqualification process can be initiated. Former municipal commissioner Dilip Band on July 18, 2008 had sent the first proposal to the GB to seek this permission.

But he was denied permission and the proposal was kept pending every time it was tabled for discussion. Even after Ashish Sharma took over as commissioner the GB on June 3 decided to keep it pending for one year!

When contacted, party leaders did not comment about action against these illegal constructions.

Independent corporator Maruti Bhapkar said, "Civic officials should have machinery to detect illegal constructions when they are being built and demolish them rather than wake up after they are completed."

Manav Kamble, founder of the Nagrik Hakka Suraksha Samiti said, "The Mayor's action ordering that the give illegal construction in Pimpri camp be demolished was a gimmick. The civic administration is guilty of shielding the illegal constructions of influential people."

Commenting on the issue, Sulabha Ubale, group leader of the Shiv Sena corporators said, "The law that is applicable to the common man should be also applicable to corporators. Many illegal constructions in the municipal limits have been served notices by the civic administration but no action has been taken against them."

Commenting on the administration's failure in demolishing the illegal construction in Pimpri, mayor Aparna Doke said, "The administration tried to demolish the construction but could not complete the work as the court ordered to maintain status quo."

On the GB's move to keep the proposal to seek the court's directives about the 23 illegal constructions pending for a year, she said that the decision was taken after considering the views of all the corporators.

Criticising the administration, Azam Pansare, president of the Nationalist Congress Party (NCP) and corporator said, "The administration does not take firm action to control the spread of illegal constructions. Encroachments have also come up along the nullahs but no action has been taken".

"We are for regularising small unauthorised constructions of the people under the gunthewari system but other constructions that obstruct developmental projects should be removed," said Pansare.

Congress corporator Amar Mulchandani who had raised the subject of the illegal construction in Pimpri at the GB meeting on Monday said, "I will meet the municipal commissioner on Thursday and hand over a letter to him demanding inquiry into why the demolition could not be conducted faster."

A statement issued by the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) said that since Thursdays are designated days for general repair and maintenance, power supply in other parts of the city may also be shut for a brief period if any urgent repair work has to be undertaken. Consumers can get information about the shutdown on mobile numbers 9960677021/025 or the toll free number 18002333435.

The areas which will be affected are:

Kothrud division: Kelewadi, Ideal Chambers, Anandnagar, Sarvatra, Gururaj, Sangeeta, Alkapuri, Sutardara, Rambaug colony, Shivteerthanagar, Model colony, Saket society, Mhada, Karishma, Sangam press, City Pride area, Shastrinagar, left Bhusari colony, Ved Bhavan, FTII, Kanchan galli, SNDT, Law college area, Prabhat road, Karvenagar lane 1 to 6, Karve Stree Shikshan Sanstha, Paranjpe complex, Gosavi vasti, Paschimanagari, Darode Jog, Girijashankar vihar 1 and 2, Uttamnagar, Koparegaon, Ramnagar area.

Shivajinagar division: Govt Polytechnic, Deep Bungalow chowk, Model colony, Symbiosis hotel management, Canal road, DSK, Telephone exchange, Mayurban, Durganagar, Vadarwadi, J M Road, Shaniwar Peth, Narayan Peth, Shivajinagar gaothan, Bavdhan, Ranwara, NDA road, Pashan, Devi heights, Dalvi hospital, Wakdewadi, Shivajinagar ST stand, LIC, Hotel pride, PMT depot, Rohan builders, Defence colony, MIG, Sus road, Sopanbaug, Abhimanshreem NCL, Chavannagar, University of Pune, Aundh, station road, Ghole road, Balgandharva chowk.

The irrigation department has announced a 30 per cent water cut for Pune beginning Wednesday. A 20 per cent cut has been in force in the city since June 21, which will be increased by 10 per cent.

"We will hold a joint meeting with guardian minister Ajit Pawar and irrigation officials on Thursday after which the new schedule for water supply will be announced," said additional municipal commissioner Umakant Dangat on Tuesday.

Following the announcement of 20 per cent water cut, the PMC had prepared a water-cut schedule. As per the schedule, some areas get water either in the morning or in the evening, while some areas get it on alternate days. After Thursday, it is likely that all areas in the city will receive water on alternate days.

Dangat said the PMC is conducting a survey of borewells and wells in the city. "We are taking a stock of situation and how much quantity of water is available from these sources during crisis. On the backdrop of the water scarcity in the beginning of monsoon, the PMC will also expedite the Bhama Askhed pipeline project," said Dangat. He added that though water was available in Mulshi and Pavana dam s there was no network to bring that water to the city in times of crisis. "We are waiting for the Thursday meeting where we could get some suggestions in this regard," said Dangat.

He stressed the need for a long-term plan for city's water needs considering the growing population.

There is a hint of a cautious move to deregulate fuel prices in the government's decision to hike retail prices of autofuels now. Also interesting is the timing of the move, on two counts. The West Bengal civic elections are over, and so crucial coalition partner Mamata Banerjee's opposition to such a move will be muted. More significantly, the hike in autofuel prices on the eve of the Budget paves the way for the government to perform two kinds of fiscal reforms. One, to include fuel subsidies in budgetary accounting, instead of fudging the figures by counting oil bonds meant to finance fuel subsidies as off-budget items. Two, to keep the now expanded fiscal deficit down by reducing the amount of subsidy on retail fuels.

The last time autofuel prices were increased was on June 4, 2008, which was followed by two quick rounds of price reduction in December 2008 and January 2009, well before the general elections were announced, as global crude prices came down sharply. As a result, petrol got cheaper by Rs 10 a litre and diesel Rs 4 a litre.

The government is also considering to compensate state-owned oil marketing companies--IOC, BPCL and HPCL--through budgetary provisions. This will be a departure from the current ad-hoc practice of compensating them through oil bonds.

Fuel prices were increased after consulting UPA chairperson Sonia Gandhi and Prime Minister Manmohan Singh, oil minister Murli Deora said at a press conference.

Source: Economic Times Petrol costlier by Rs 4, diesel Rs 2, LPG spared

Commissioner of police Satya Pal Singh signed a memorandum of understanding (MoU) with Nasscom, while launching the forum. Nasscom vice president Rajiv Vaishnav and advisor of Nasscom Pratap Reddy were present on the occasion. Joint commissioner of police Rajendra Sonawane, founder and managing director of Persistent Systems Anand Deshpande also attended the programme.

Singh said the police would like to learn fast and more on cyber security through the Cop-Tech forum. "The basic idea is to create a safe and secure cyber environment in Pune, which is a challenge by itself. We would like to learn more on cyber safety."

Reddy said this was the first-of-its-kind MoU in the country and that partnerships between the police and the industry is appreciated. "The forum will be useful for exchanging ideas and sharing knowledge between industries and the police," Vaishnav said.

DCP Rajendra Dahale (cyber cell) said the number of people coming forward with complaints related to cyber crimes has seen a significant rise. When the cyber cell was started in July 2003, only nine complaints were received by the police. However, in 2008, the cyber cell received as many as 2,007 complaints, he said.

"Through Cop Tech, we expect the IT industry and the Pune police to share knowledge and ideas on cyber safety. Members of the forum and the police will hold quarterly meeting for the purpose," Dahale said. Officials from several IT companies were present for the programme. Around 100 officials registered themselves as members Cop Tech on Tuesday itself, he added.

Job loss is one of the worst fallout of any economic slowdown. What began as a housing mortgage crisis in the US last year quickly sipralled into a global economic meltdown and from September 2008 companies across the world began downsizing their workforce to cut losses.

India too felt the tremors with close to 50,000 laid off in a span of two months, according to executive search firm Redileon Search Partners.

Sectors that have witnessed the axe include real estate and construction whic saw 79 per cent cut in its workforce. Job is export and trade, too, are down by 79 per cent while IT and hospitality sectors have witnessed a dip of 50 per cent. Banking and financial sector saw job cuts by 22 per cent.

But numbers alone don't explain the full story.

''One afternoon when I went to office… I was suddenly called by the editor and all of a sudden he said that you have to go,'' says Barid Baran, who worked as corporate communication manager.

Source: ibnlive.in.comIndian job market better off than western countries

Leading developers like DLF, Parsvnath, Unitech, Tatas, Puravankara and Akruti are banking on the volumes this segment promises to generate.

The 11th Five-Year Plan estimate of a shortage of 24.7 million units in urban housing, mainly for economically weaker sections (EWS) and the lower income group (LIG) has added to their excitement and expectations.

But while everyone's talking of affordable housing, no one's sure what it exactly means and what's in store for it. What is affordable in Mumbai may not be affordable in a tier II city.
There is no official definition provided for it by either the government or a housing agency.

Says Crisil Research head Sudhir Nair, "We believe affordable housing is a dwelling unit that can be purchased by at least 60 per cent of the families within a city. Here, we also assume that the bottom 40 per cent (the low income category) would be unable to afford a house, whereas the top 20 per cent (the high income category) would have the funds to buy any house, anywhere in the city."

HDFC chairman Deepak Parekh's letter in the company's annual report says the real agenda for affordable housing has still not been brought to the table.

"Affordable housing is not about box-sized, budget homes in far-flung places where there is no connectivity to work places and little surrounding infrastructure. Affordable housing has to be able to cut across all income segments and has to make economic sense in terms of proximity to the work place. The agenda for affordable housing requires a combined public private collaboration and a strong political will to enforce change," Parekh adds.
There are also concerns that funds raised for affordable housing may not be utilised for the projects they are meant for.

Source: mydigitalfc.com House for Mr India

"The government is already on the right track. It is planning to increase the income-tax exemption limit available for interest payment on home loans to Rs 2.5 lakh a year. However, there are still a number of issues to be sorted out," says Anuj Puri, chairman & country head of Jones Lang LaSalle Meghraj.

Santosh Kumar Rungta, president of Confederation of Real Estate Developers Associations of India (Credai) says, "The real estate sector alone can contribute 1-1.5 per cent to the GDP if the government makes efforts to solve urban housing problem while moving towards a slum-free urban India. We are seeking fiscal incentives to encourage `affordable mass housing' with unit sizes ranging between 300 sq ft and 1,000 sq ft."

The industry realizes that the government will have to face a daunting task in coming out with a balanced budget. "We understand that the finance minister's task to balance between industry requirements and widening fiscal deficit will be challenging and trust that the decision would be taken after careful consideration of many aspects. However, we hope that levy of fresh taxes, which could adversely impact the sector, would be avoided. Chances of service tax being increased to 12 per cent, cenvat rate being reversed to 10 per cent and excise duty on steel and cement being brought back to 12 per cent, are high," says Sachin Sandhir, director and country head of Royal Institute of Chartered Surveryors (RICS) India, an organisation of property and construction professionals.

Affordable housing-related sops and tax holidays for those involved in the sector are on top of the agenda. Other demands include further relaxation of ECB and FDI norms, rationalisation of stamp duty and registration charges, confirmation on abolition of service tax on renting immovable property, already announced by the high court, clarity on extension of tax waiver for STPI units and extension of tax holiday under section 80-IA (4) (iii) for developers who build industrial parks, which in turn would boost the recession-hit IT industry
"By considering the hiking of income-tax exemption for interest payment on housing loans, the government has hit the nail. Grant of infrastructure status would bring relief to the hospitality industry and boost upcoming hotel projects in the country. The budget should take a decision on FDI in retail. We hope that VAT on cement/RMC would be reduced to 4 per cent, says Mahesh Iyer, chief financial officer of Mumbai-based Phoenix Mills.

Source: mydigitalfc.com Betting big on affordable housing sops

Click Here to Watch Video: