Tuesday, 1 December 2015

11K CRORE AMRUT PUSH TO FUEL REALTY GROWTH



      Earlier this year on 25th of June, the current Government of India had announced development of 500 cities under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) plan for Smart India Mission. For the same, centre has finally begun with efforts by clearing proposals worth Rs. 11,654 crore that are aimed towards improving basic infrastructure and facilities in 272 cities and towns, which include investments worth Rs. 3,120 crore in 102 cities and towns.
“The much awaited infra upgrade plan for the country is finally underway. Infrastructure in any region serves as the backbone for its realty sector and this amount will allow the regions to develop a platform for the realty sector. This will gradually help shape the future demand for housing and office spaces thereby enhancing its prospects of being accepted by the potential customers”, claims Mr. Ashok Gupta, CMD, Ajnara India Ltd. Adding to view, Mr. Vivek Gupta, Director, Vardhman Estate & Developers (P) Ltd. states “A strong foundation for the smart cities will be provided by AMRUT plan. We can think about developing smart cities only when basics are in place. Over 11 thousand crore have now been set aside for rejuvenation and urban transformation of 272 cities and towns which will greatly upgrade the infrastructure in those regions”.
The government has given a green signal for Rs. 438 crore investment in 18 cities identified in Haryana during the next fiscal year. Likewise, 9 cities in Chhattisgarh would get Rs. 573 crore and a sum of Rs. 416 crore has been assigned for 12 cities in Telangana and Rs. 588 crore for 9 cities in Kerala. The largest chunk of funds is being earmarked for West Bengal with a sum of Rs. 1,105 crore meant for 54 cities and towns across the state. For the augmentation of civic infrastructure, the centre has also approved investments worth about Rs. 2,386 crore towards water supply projects in 58 cities, Rs. 495 crore for sewerage projects in 17 cities, Rs. 106 crore for storm water drains in 9 cities, Rs. 61 crore for urban transport in 9 cities and Rs. 72 crore for development of parks and green spaces in 102 cities during this financial year. The centre and the state governments will together invest about Rs. 11,654 crore to make available 135 litres of clean drinking water per person each day and provide sewerage linkages in all the 272 cities. “Understanding the direct co-relation between infrastructure and demand in realty sector, the Central Government has given complete freedom and flexibility to State Governments to design and execute basic infrastructure facilities. For all the projects approved, the government will contribute 50 percent of the funds with an equivalent amount to be organized by the states themselves. This revamp of infrastructure in 272 cities and towns will duly fuel and introduce a fresh wave of realty demand in near future”, elucidates Mr. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group.
“A perfect habitat is one where civic infrastructure is in place along with proper sanitation, availability of urban transport, sewerage disposal, water and electricity supply, etc. With AMRUT’s aim to upgrade the infrastructure, it will be most crucial if realty sector is to perform in Tier 2, 3 and 4 cities. The mission of Housing For All will also gain a much needed boost once infrastructure in regions get corrected and private developers also start picking pace”, enlightens Mr. Vikas Bhasin, MD, Saya Group.
“The centre has identified 482 cities and towns, each with a population of one lakh and above as AMRUT cities and Rs. 11,654 crore has been announced for upgradation of 272 cities and towns. This upgradation will help these regions to fulfil the basic needs for real estate to perform and succeed in the long run. The dream of Smart Cities and Housing For All will finally get a go ahead with regions meeting the minimum standards required, where private realty sector players will also play a vital role in shaping those regions”, concludes Mr. Rakesh Yadav, Chairman, Antriksh India.

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