11 cement companies, including ACC, Ultratech & Lafarge, fined Rs 6,700 crore for cartelization

NEW DELHI: The Competition Commission of India asked 11 cement companies and their lobby group Cement Manufacturers Association (CMA) to pay a fine of Rs 6,714 crore (see graphic) for alleged cartelisation, standing by its previous orders that the antitrust watchdog was asked to reconsider. It also held the lobby group of these manufacturers guilty of facilitating price collusion.

The CCI reconsidered the matter after the Competition Appellate Tribunal last December set aside its orders and asked the watchdog to take up the case afresh.

In 2012, it had ordered 10 companies to pay Rs 6,317 crore after the Builders Association of India accused them of fixing prices. Separately, it had imposed a Rs 397 crore fine on Shree Cement.

Cement companies are likely to appeal the order in the appellate tribunal. A final decision could take years to come as any decision will be subject to further appeals.

The CCI noted that the cement companies used the CMA platform and shared details relating to prices, capacity utilisation, production and dispatch, which allowed them to restrict supplies in the market, the government said in a statement on the commission's order.

"CCI also found the cement companies to be acting in concert in fixing prices of cement," it said.

On Wednesday, the CCI directed the association to disengage and disassociate itself from collecting wholesale and retail prices through member cement companies or otherwise.

"The action of the cement companies and CMA is not only detrimental to the interests of consumers but also as detrimental to the whole economy, as cement is a critical input in construction and infrastructure industry - and thus vital for the economic development of the country," the CCI said in its order.

SOURCE: ETRealty

India's never been stronger: Deepak Parekh

MUMBAI: Chairman of India's largest mortgage lender Deepak Parekh praised the Modi government, saying large scale corruption has been weeded out under the current regime. "India has never been in a stronger position than today from a macro-economic perspective," Parekh said at a risk summit held by CII in Mumbai.

"The country is demonstrating immense growth potential helped by a strong leadership at the helm, driving key policy changes." Parekh said with an expected GDP of above 7.5%, India is in a bright spot compared to its global counterparts."We in India hold a key advantage by being a major economy with tremendous growth potential," he said. Parekh acknowledged there's a slowdown in private capex and said public sector spends were instrumental in propping the economy.

He said lots of activities were happening in ports, waterways and airports. "Often, when infrastructure projects are a workin-progress, there tends to be a feeling that nothing's happening on the ground. But this is certainly not the case in India," he said. Parekh also expressed concern over the confusing signals emanating from global economies.

"On one hand, there is tepid growth, continued problems with European banks, massive over capacities in China, and on the other, key global stock markets have touched or are nearing record highs," he said. Investors are chasing emerging markets predominately for yields, but the tide may turn when the US starts raising rates.

More than 30% of all loans below Rs 10 lakh in 2015-16: National Housing Bank

NEW DELHI: More than 30 per cent of the home loans disbursed by banks and housing finance companies in 2015-16 were under Rs 10 lakh, indicating a growing interest in housing for economically weaker sections and lower income groups, said National Housing Bank (NHB) managing director Sriram Kalyanaraman.

"This is in sync with the go vernment's 'housing for all 2022' initiative," Kalyanaraman said. The supply of low income housing is growing as the government has offered several incentives in the recent budget as well, he said.

In 2015-16, housing finance companies and banks disbursed loans to individuals to buy a total of 1,60,4000 units. The incentives for individuals buying a low income house include the credit linked subsidy scheme under the Pradhan Mantri Awas Yojana.

Households categorised as those belonging to economically weaker sections, with a total income of up to Rs 3 lakh, and lower income group households, with a total income of up to Rs 6 lakh, will get subsidy at 6.5% interest rate for a loan amount of Rs 6 lakh for a maximum of 15 years. NHB, the central nodal agency for implementation of the scheme for urban areas, had released a subsidy of Rs 119 crore till June 2016 that has benefited 7,062 individuals.

SOURCE: ETRealty.com

Building highrises near Delhi's IGI Airport becomes easy on relaxed 'red zone' curbs, online approvals

NEW DELHI: Gone are the days when one has to go through a maze of rules to get permission for building a highrise near the airport. Now, people can expect a hassle-free procedure as the Airports Authority of India (AAI) and the South Corporation have created a common online platform for applicants seeking approval to their building plans. Besides this, AAI has eased "red zone" restrictions—the curb on construction of highrises in areas close to the IGI Airport.

Earlier, a no-objection certificate (NOC) from AAI was mandatory for construction of buildings with a height of 18 metres and above. People had to file separate applications at AAI and the civic body for necessary approvals to their building plans. With the new move, there is no need to make rounds of various offices for getting clearances.

The 18-metre condition has been relaxed too as AAI has reduced red-zone areas. Earlier, 8.67% of Delhi's areas came under red zone. Now, it has been reduced by almost 50%—from 129sq km to 60sq km.

"Since the total area of Delhi is approximately 1,496sq km, now only 4% falls under the red zone. This step is a breather for many Delhiites who are looking to get a highrise built in southwest Delhi. With building plans simplified and the red zone reduced, people can easily construct buildings in areas like Dwarka, Vasant Kunj, Janakpuri and Kapashera as well as some parts of Lutyens' Delhi," said a senior corporation official.

South Corporation commissioner Puneet Kumar Goel said the civic body had sanctioned 1,080 building plans in the past three months and 730 applications were approved within an average span of 13 days.

"Earlier, it used to take several months to get a building plan sanctioned. With the launch of a common online platform, it has become easy for people to get their plans approved from the local authorities," Goel added.

According to civic officials, the move will not only help curb illegal constructions, but also make the procedures transparent. "Illegal constructions are rampant in Delhi. Earlier, the procedures were complex and it used to take a lot of time for getting approval. This had resulted in corruption. Now, we have a transparent system in place," the senior official added.

He said the south civic body would bring other stakeholders on the common platform soon. "Agencies such as Delhi Urban Art Commission, DJB, discoms and Metro will be integrated to our online platform," he said.

Source: ETRealty

NITI Aayog for releasing funds to revive construction projects

The NITI Aayog is looking to revive the construction sector by working out a plan to remove hurdles for projects where contractors are locked in arbitration with government agencies.

The government think-tank is readying a proposal through which funds would be released to banks in cases where there is unanimous award in favour of a contractor. In these cases the plan is to release 75% of the funds to the banks, which can be used for reducing the loans extended to the companies. Alternatively, it can be released to the contractor for use in projects.

"We do not want to wait for the appeal to be settled because it often takes time. This will help release funds and revive stalled projects," said an officer, who did not wish to be identified. Close to Rs 3.6 lakh crore is locked up in such cases and banks will see their performance improve even if a part of the funds are released. Sources said that only a part of the amount is related to projects where there is unanimous award during arbitration.

Market players said the move would help improve cash flows and reduce stress on companies.

SOURCE: ETRealty

Property consumers want ministry to tweak Real Estate Regulation Act

Afraid that the Real Estate Regulation Act (RERA) might not help revive their stuck housing projects, home buyers are lobbying with the government to shine some light on the issue.

'Fight for RERA', a pan-India grouping of home buyers, met Minister of State for Housing Rao Inderjit Singh to talk about buildercentric rules under the legislation which they claim will not help home buyers who are stuck in delayed projects. They, however, did not get a firm commitment from the minister. Fight for RERA members from Mumbai, Bengaluru, Hyderabad, Kolkata and the NCR also met Joint Secretary-Housing Rajiv Ranjan Mishra.

The group has highlighted that draft rules under RERA do not specify which plan builders of ongoing projects need to submit when they register with the regulator - the original, sanctioned plan or the latest version, which may have been revised several times.

They suggest that a builder, at the time of registering an under construction project with the new regulator, should submit all layout plans, sanctioned plans and specifications for ongoing project since launch.

Abhay Upadhyay, national convener of Fight for RERA, which represents more than 50 home buyer associations in the country and several NGOs, said the group put forward all its issues with the draft rules and also suggestions that would help home buyers.

"We have not got a firm commitment from the minister so far. We are hoping these highly critical suggestions find place in the final rules if the government is serious about protecting the interest of existing home buyers," he said. One of their suggestions has to do with keeping 70 per cent of the sales proceeds in a separate bank account by developers to cover cost of construction and land.
"In absence of specific rules, promoters who have already collected substantial sum ranging from 70 per cent to 100 per cent, may keep 70 per cent of future receivables which may be inadequate to complete the project since in many cases projects are not even 20 per cent complete," he said.

The group has suggested that the rules under the Act should mandate promoters to deposit a sum which may be arrived at after deducting cost of construction and cost of proportionate land from the  total amount collected till date from the buyers, which would force promoters to complete the project rather than deposit the money.

Home buyers also suggest that that builders should be asked to mention the original timeline for completion of the project at the time of the launch along with any extension taken from authorities when they register the project with the new regulator.

They should also be asked to give a fresh deadline for completing the project.

Earlier this month, Fight for RERA members met Housing Minister Venkaiah Naidu who had suggested they meet Rao Inderjit Singh. They had also met MP Rajeev Chandrasekhar, who was a member of the Rajya Sabha Select Committee on the Real Estate regulation Bill.

SOURCE: CREDAI NCR

NCR homebuyers seek service tax refund on EMIs paid to builders

NOIDA: Homebuyers across NCR are now shoring up support to seek refunds of service tax on installments paid to builders, with the National Consumer Disputes Redressal Commission (NCDRC) ordering the refunds earlier this week, citing a Delhi high court ruling.

The Delhi high court had ruled on June 3 that homebuyers cannot be charged service tax on payments made towards purchase of under-construction apartments from builders if the total value of the apartment includes the land value. It held the service tax is only payable on the value of services and not on the value of land.

In the case of Suresh Kumar Bansal Vs Union of India & others, the court had also said that if the developer has already collected service tax, buyers would be refunded the amount with 6% rate of interest by the Centre's revenue department. However, the high court judgment applies to flats purchased before July 1, 2012.

The builders charge homebuyers service tax at the time they make part payments — currently it is 3.8% of the total sale value in NCR. Since most homebuyers in the NCR have signed up for apartments prior to construction, they are now made exempt of service tax.

"We have made the buyers aware of the Delhi high court ruling and the recent NCDRC order on the basis of it. Now we have asked all buyers to come forward and notify the tax department about the amount of tax that has been already paid. The builders will now need to secure refunds from the tax department and refund the same to the buyers," Indrish Gupta, a member of NCR Homebuyers Association, said.

Gupta, who is also the co-founder of Noida Extension Flat Owners Welfare Association, says if the taxes are not refunded, buyers may even move court for redress.

"The June 3 order brought in clarity that any project which is not complete and where people are not living cannot be categorised under service tax. So far, builders have levied this tax from all buyers. The Delhi high court's ruling clarified that builders would have to seek refund. Now this has been endorsed by NCDRC," said Amit Chauhan, founder of Logical Buyer, a homebuyer's forum.

However, Credai (NCR) president Manoj Gaur said, "If there is a ruling, then the government needs to return the funds to the buyers. They can do that directly. Builders have so far been middle agents for this tax. If the builders have to execute it, then the funds need to come back to the builders first. If such a huge amount of fund are to be returned to those who have already paid this tax, this is going to be a mammoth task."

SOURCE: ETRealty

India’s progress incomplete without infrastructure expansion: PM Narendra Modi

India’s progress is incompete without rapid expansion and upgradation of basic infrastructure, Prime Minister Narendra Modi said on Tuesday while underlining that his government’s efforts are characterised by speed and scale to usher in “an era of historic growth”.

Modi, who chaired a meeting in New Delhi on Monday to review the progress in core infrastructure sectors, said it was noted that there has been “phenomenal progress” in vital sectors such as renewable energy and railways.

“On 22nd August 2016, I chaired a marathon meeting to review the progress in core infrastructure sectors. I have been holding such meetings very often because India’s progress is incomplete without the rapid expansion and upgradation of our basic infrastructure,” he said in a statement. “The development journey of India is special. Our sustained efforts are characterised by speed and scale, which can usher an era of historic growth,” he added. The Prime Minister underlined that the India story is also about resilience. “When the world economy is weakening and slowing down, India is a ray of hope,” he said. Contending that doing business is easier today than it was, Modi said, “Big level corruption and bottle necks are becoming history.”

He noted that the country went through two drought years but agriculture production has not decreased. “Our endeavours to give our farmers an expansive market and more money for their produce continue,” he said. “I am certain that we will continue building on this progress and achieve our aim of transforming India,” he said. Referring to the various subjects discussed at yesterday’s meeting, the Prime Minister talked about new and renewable energy sector and said the cumulative installed capacity has crossed 44 GigaWatts.

“Targets have been met for various components and projects under Centre and State policies. A part of the discussion included the way ahead in enhancing solar energy production, including via rooftop generation,” he said.

“In the aviation sector, we had comprehensive deliberations on improving safety, connectivity and customer satisfaction at our airports,” Modi said.
He said regional connectivity assumes great importance because the more the smaller towns get connected, better opportunities will be available for people in those towns. “You would be happy to know that 8 Indian airports are ranked among the top 5 globally in their respective categories,” he said.

As far as the railways are concerned, Modi said it has achieved its target of daily passenger movement and 40 unmanned crossings have been eliminated in the first quarter of the current fiscal year, which is important keeping in mind the safety aspect. “The 21st century is an era of port-led development. For India to realise its true potential, we must have world class ports that make India the hub of trade and commerce as well as enable the quick exports of products made in India,” he said, adding in this sector, there has been significant progress in average vessel turnaround time.

Turning to the housing sector, he said the government fully understands its importance, especially ensuring proper housing to the poor and the neo-middle class. “That is why, 6.94 lakh rural houses have been completed in the first quarter of the current fiscal year in the rural housing sector, as compared to a target of 6 lakh houses,” he added.

Other initiatives that were discussed include the DBT scheme, LED bulbs distribution and steps being taken to ramp up ethanol blending of petrol, Modi said.

SOURCE: The Indian Express

GST rollout likely to be pushed to mid-2017 as India Inc seeks time

NEW DELHI: The government could be looking at rolling out the country's biggest indirect tax reform from mid-2017, realising that it may be an uphill task to have all the pieces for GST rollout in place by April 1, the start of the fiscal.

The central Goods and Service Tax (GST) and integrated GST laws may make it through Parliament only in the budget session, not leaving much time for preparation for the industry.

"All options are open... The target date is April 1and effort will be to keep it," said an official, but added that the industry has sought six months for preparation from the time when the law and rules are finalised.

The finance ministry has had a series of consultations with representatives of various sectors who were asked to give their views on being comfortable with a June or July, 2017 rollout. The government wants the industry to put its house in order soon after the final draft of the law are made public, said a second person privy to deliberations.

As GST is an indirect tax, a midyear rollout does not create much issues. It may be recalled that the negative list regime for service was introduced from July 1, 2012.

Experts said it would be preferred if the new regime is rolled out after adequate preparation, even if it is in the middle of the year. "It can come in any quarter of the year if they are ready.... It is better to launch it after proper preparations," said S D Majumder, former chairman of Central Board of Excise and Customs (CBEC).

The GST Council, chaired by finance minister Arun Jaitley with state finance ministers as its members, has to finalise the rates, base, exemptions, tax holidays, and administrative setup, besides the law and rules.

All the open issues plus the law have to be ready well in time so that it can be introduced in the winter session, which usually begins in late November or early December.

The law would then go through the parliamentary process, including vetting by a standing committee, before it is taken up for passage. State assemblies would then have to ratify state GST laws.

Though IT firms are ready with their enterprise resource planning software, these would need to be tweaked in accordance with the final law. These would then have to be tested by the companies.

"Industry needs to align its systems... with the GST law...This would require 6-9 months once the law is finalised," said Bipin Sapra, partner at EY.

ET view: Don't delay
Missing one more deadline will be unfortunate. True, for the switch to GST, Parliament has to pass the central GST and on IGST law, and states must pass state GST laws. The core issue will be agreement on rates of tax and working of GST Council. The govt must engage with states and Opposition to ensure the rollout on April 1. If it stretches into 2017-18, chances of its implementation would become slimmer.

SOURCE: ETRealty

Projects worth Rs 8,400 cr in AP under Sagarmala: Nitin Gadkari

Union Transport Minister Nitin Gadkari today said that projects worth Rs 8,400 crore have been sanctioned in Andhra Pradesh under the NDA Government's ambitious Sagarmala' initiative.

The Sagarmala project aims at "port-led development" in the country, he said, speaking to reporters here after inauguration of various works undertaken by the Visakhapatnam Port Trust. Under this initiative, projects worth Rs 8,400 crore are sanctioned to Andhra Pradesh, which include LNG terminal at Kakinada at the cost of Rs 3,000 crore, Coastal Food Export berth there at the cost of Rs 150 crore, additional oil jetty at Visakhapatnam port at the cost of Rs 100 crore and the new port development at Vadarevu and Machilipatnam, he said. 

Earlier he inaugurated Container Freight Station developed by the Visakha Container Terminal Private Limited at the cost of Rs 104 crore near Muralinagar in the city and a 10 MW solar power plant set up by Visakhapatnam Port Trust at the cost of Rs 57.5 crore.

SOURCE: ECONOMIC TIMES

JEWAR: GEARING UP FOR TAKE OFF

The much awaited and proposed Jewar International Airport has gone another step ahead in becoming a reality as it recently received a No Objection Certificate (NOC) from the Ministry Of Defence. This development holds a great significance as now there is clarity over this chapter that has been much talked about for several years. History has been a witness to how infrastructure and connectivity helps a region to grow and perform in all possible avenues. And once the infrastructural development gains momentum in a region, real estate becomes prominent. Gurgaon’s case study is a clear example of how presence of an Airport transformed it’s realty sector completely. Similarly, the upcoming Jewar Airport is expected to multiply region’s growth in the long run. Furthermore, once the work will commence, we will witness the emergence of corporate and commercial sectors in the region.

“This project will revive the realty sector across various regions in NCR that are being hit adversely due to negative sentiments and slowdown in the market. Soon, there will be an unbelievable change in the shape of NCR realty sector, and the primary boost will be received by the markets of Greater Noida, Yamuna Expressway, Ghaziabad, Noida and even Agra. At present, these markets are receiving moderate views from the public and due to the distance from the capital, it is hard to pull the customers. Once the airport here gets going, these regions will get the right fuel to ignite growth in demand for these regions”, elucidates Manoj Gaur, President CREDAI-NCR & MD, Gaursons India Ltd.

Adding further, Ashok Gupta, CMD, Ajnara India Ltd. states, “Development of infrastructure is directly related to the growth of real estate in the given region. Also, there are levels of infrastructural developments which affect the sector differently. Availability of an airport, metro rail, railway station and other such civic amenities provide better boosts to the region than provision of simple public conveyance and other such smaller amenities, as the former cater to a macro level of public. Hence, when the work on Jewar airport is commenced, there will be a significant increase in demand for real estate along with promise of future capital appreciation.”

How it all began

Back in 2001, the then active CM of UP, Rajnath Singh had proposed the idea of developing an Airport in Jewar. This idea was well accepted and approved by his successor, Mayawati, but was later denied by the current U.P. government. The talks had revived in the beginning of 2015 and this time the centre and state governments are looking deeply into the matter. This government has already acquired over 2000 acres of land for the proposed airport and more can be acquired, as space is not an issue in the region. This development of the Jewar Airport is sure to benefit the real estate sector which has been taking a massive toil due to the economic slowdown over the years. There hasn’t been much activity happening in the sector which has dampened the sales, especially in the last 2-3 years. Keeping this situation in mind, the development of infrastructure in the form of a new airport will greatly help in bringing the demand back in the key regions. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group explains, “It’s been over a decade that this project has been kept pending and finally the dream is turning into reality. The entire belt across Greater Noida, Noida Expressway and Yamuna Expressway is currently witnessing a dampened demand as there are more investors than end users. The area is yet to become end user centric and this can happen only when sound infrastructure is in place. The presence of an airport will provide the right thrust for the demand as this will be a major gain for the infrastructure of the region. The sector will observe better market acceptance in the regions which will result in greater demand and better price appreciation in near future”.

Strong push to demand

“A development of this scale will bring about massive price appreciation and enhanced demand in the markets of Greater Noida, Noida Expressway and Yamuna Expressway. This is extremely important for the overall development of these regions as Greater Noida is moving very slowly and Yamuna Expressway is yet to generate credibility. On the flipside, creating a second airport in NCR before IGI gets exhausted, it may render both airports impractical. The user charges at both airports will surely rise since the operating cost and capital expenditure at both airports would be spread over the same flyer base. But from the realty perspective, the demand for commercial properties will boost up, like it happened in Gurgaon after IGI”, avers Dhiraj Jain, Director, Mahagun Group.

“Proposed Jewar International Airport would be an integral part of Greater Noida region, which itself has become an important part of NCR , the planning of this region has been done with futuristic vision. The region is a fair mix of ready to move in commercial & residential properties and is also developing as an IT hub. Dedicated freight corridor is also an important feature in this region. Addition of an International Airport to such a planned & rapidly developing area shall give a different magnitude to this region and big growth opportunities in real estate can well be seen in this area, which is on the path of developing as a model region of NCR”, said Ashwani Prakash, Executive Director, Paramount Group.

Agra-Lucknow Expressway: A Teaser

Underway is a project that will link the City of Taj with the Nawabon Ka Shahar. The length of the expressway would be 302 Kms and will be the longest expressway in the country. The estimated cost of the project would be around Rs. 15,000 crore. The project will also provide easy connectivity and seamless travel options to the NCR through Greater Noida-Agra Yamuna Expressway. The Agra-Lucknow Expressway would link the main districts of Agra, Firozabad, Mainpuri, Etawah, Auraiyya, Kannauj, Kanpur City, Unnao, Hardoi and Lucknow. “Strategically, the regions of Noida and Greater Noida have a great industrial/commercial potential and consequently, infrastructure would be required. This will also lead to employment opportunities along with economic up gradation. For the sector, a lot of demand for housing and office spaces will erupt along with strong capital appreciation in and around Greater Noida. Jewar airport will be the perfect icing on cake which will give a much needed push to the demand in the regions. Moving further, the Agra-Lucknow Expressway will expand this demand till tier 2&3 cities that will fall in between Agra and Lucknow, thus allowing realty development in the untapped regions”, concludes Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz.

Noida receives 3 bids for group housing plot

NOIDA: Even as real estate seems to be down in the dumps, land in Noida seems to be in demand.

Noida Authority has received three bids for its 1.26 lakh square meters of land for a group housing plot in sector 43 on Friday. While the technical bids will be examined and in place by August 16, the financial bids will be finalized by the end of next week. The plot was auctioned at a reserve price of Rs 77,552 making its worth over Rs 1,000 crores.

According to officials, the three companies that have bid for the plot include Shipra Estates Limited, Saya group and Vibhor Vaibhav Infrahome Pvt Ltd. "The plot was auctioned on a two-bid system including a technical bid and a financial bid," said Bipin Gaur, general manager, group housing, Noida Authority.

"The highest bidder will be allotted the land once we have scrutinized the three bids technically and financially," he said.

"The large plot, once allotted will be allowed a ground coverage of 40%. A maximum Floor Area Ratio (FAR) of 3.5 will be allowed here. The height of the buildings will be permitted as per Noida's architectural norms," he added.

The said land in sector 43 land had earlier been involved in a legal wrangle between Noida Authority and Kendriya Karamchari Greh Samiti Society. However officials told TOI that the case has since been closed and the land is no more disputed.

The case, which is almost 20 years old, had pertained to Noida Authority cancelling allotment of plots to 1,754 members of the Kendriya Karamchari Sahkari Grih Nirman Samiti, a group housing society of Central Government employees. It was the contention of the Authority that the land was allotted in March 1995 fraudulently on the basis of a bogus list of society members.

The allotments were then cancelled in May 1998 after an inquiry was conducted by Noida Authority officials. However, the society had claimed that more than 116 acres of land belonging to it had been forcibly acquired by the government and hence society members were entitled to the allottment of 40 per cent of the total land acquired as per Noida's policy.

In 2008, Noida authority had tried to allot the same land through bidding process. But the society approached the Allahabad high court that stayed the allotment process.

SOURCE: THE TIMES OF INDIA

MAHAGUN BRINGS ‘GREAT INDIAN PROPERTY BAZAAR'

Noida/NCR: After the grand success of its property carnival, the ‘Great Indian Property Bazaar’ held earlier this year in January. Mahagun Group is now geared up for hosting the second edition of the same event on public demand. The event will start on 13^th August 2016 at its project site Mahagun Mezzaria in Sector – 78, Noida and will carry on till 11^th September 2016. The ‘Great Indian Property Bazaar’ serves as a one stop shop for home buyers, which will bring 11 unique offers across the nine ongoing projects from the developer. It will provide customers an opportunity to arrive at an informed decision only after looking at the whole range of products being offered in the back-drop of the most competitive prices ever.

The eleven offers under the ambit of this event would include price guarantee up to possession, double delayed penalty charges, free maintenance for 2 years, free wardrobes, free AC, free modular kitchen, free covered car parking, no loan processing fees, first transfer fees waived off, customized payment plans and much more. The Bazaar will have exclusive offers for exquisite residential units comprising of aesthetically planned lay – outs with all contemporary amenities and facilities to ensure peaceful living with optimum usage of natural spaces, ergonomically designed to provide value for money to the customers. Hassle-free and tailor-made payment plans will ensure that the customers are not bewildered by the multiplicity of charges. Get the best for the least, as long as it lasts.

On the eve of the launch, Dhiraj Jain, Director, Mahagun Group, said “The last GIPB held was a resounding success. So, on public demand we have decided to host a second season of the same event having the same benefits as were offered the last time. Consumers appreciate a platform that is transparent, trustworthy and beneficial when they make a big decision like buying a house. The focus of this event will therefore be to provide the best deals at the best prices under one single platform.”

Smart Ganga City programme launched in 10 cities

NEW DELHI: Union Ministers M Venkaiah Naidu and Uma Bharti on Saturday jointly launched 'Smart Ganga City' programme in 10 cities located along Ganga to set up Sewage Treatment Plants (STPs) and improve drainage network there on hybrid annuity mode on public private partnership basis.

Union Urban Development Minister Naidu and Water Resources Minister Bharti launched the works through video conferencing and were joined in by District Magistrates/Mayors of cities/towns.

Haridwar, Rishikesh, Mathura, Varanasi, Kanpur, Allahabad, Lucknow, Patna, Sahibganj and Barrackpore are the cities/town where the programme will be implemented in the first phase.

Bharti also stated the government plans to form District-Level Mentoring committees in Ganga basin states - on the lines of High-Level Task Force chaired by Cabinet Secretary - to keep an eye on programme implementation.

"Earlier, STPs would become defunct within four-five years for reasons including non-maintenance. Now, with the hybrid annuity mode, we expect the STPs to remain operational for longer period even as water is recycled," Bharti said, while addressing the event from Ujjain.

In the hybrid annuity model, a part of capital investment (up to 40 percent) will be paid by government through construction linked milestones and the balance amount through an annuity over the contract duration up to 20 years to ensure longevity.

In previous schemes, Centre and states borne 70 per cent of the costs for setting up STPs. Now the programme will be completely Centre-sponsored, the Minister said.

She said her Ministry will sign MoUs with other Central Ministries to see recycled water from the STPs is bought for their use.

To a question, she said the Government will expand the Smart Ganga City programme to other cities including Agra in time to come.

"Also several foreign companies have come forward to work under hybrid annuity mode," Bharti said.

At one point, the Minister stated the government will keep in mind local biodiversity and culture while doing river front development works.

Addressing the event from Hyderabad, Naidu urged local governing agencies concerned to join the mission "with complete dedication" and appealed people too to participate in the programme to make it successful.

"My ministry is an integral part of the Namami Gange programme," he said, adding his Ministry will work with the Water Resources Ministry on a 'Mission Mode'.

SOURCE: ETRealty.com

Noida's mute market scenario remains the concern

With the largest volume of unsold inventory in the region, the natural course of action did take place. Quoted prices have dipped bringing in the time correction factor. Developers seem to have given-in to price resistance to boost sales.

For an end-user this may be a good time with attractive discounts and deals floating in the market like no pre-EMIs, customized payment plans, free maintenance up to a year, assured rentals and even assured possession or money back schemes.

With RERA around the corner, builders are also gearing up to ensure timely delivery rather than launch new projects. This explains the sharpest decline in the number of new launches in NCR, to the tune of 50% in the first half of the year.

Moreover, consumers are also shifting focus to ready-to-move-in units or those that are nearing completion. Increase in land allotment rates will further put a check on new launches because developers are cash-strapped at the moment.

Interestingly, those who are unable to complete their projects within a set time can now surrender the land to the authority, which can fetch 70% of the deposit value. This would help in financing the completion of the project after which a fresh allotment process can be initiated.

Meanwhile, focus of the buyers is largely the affordable segment. Although there is enough inventory in this budget, sales velocity is expected to remain muted for a little longer. This works well for builders with a good and clean track record as well as end-users who get to identify quality amidst the quantity. Office space absorption is also healthy, helping Noida retain the image of a bankable, investible destination.

Will buying a home in Noida become costlier in the future will be decided by the survey undertaken by the Gautam Budh Nagar district administration. It has decided to carry out the annual revision of circle rates.

Noida Authority is also going tech and aims to roll out details of properties, allotment letter, transfer of memorandum, occupancy certificate and more online. This will address consumer concerns a lot more transparently.
 
On the whole, researchers have noticed that at the current pace of sales, it may be difficult to exhaust the already existing inventory in the Noida market. Both buyers and sellers are waiting for respite.

SOURCE: CREDAI NCR

RAJAN BIDS ADIEU WITH NO CHANGE

In a much forecasted move, the apex bank today has decided to keep the rates unchanged on account of high retail inflation being still above RBI’s expectations. This was also the last RBI bi-monthly policy review for the present Governor, Raghuram Rajan, who is to finish his tenure in September. The repo rate at present stands at 6.5 percent with reverse repo rate under the LAF kept unchanged at 6 percent. Cash reserve ratio (CRR) remains at 4 percent with MSF rate and Bank rate at 7 percent respectively, and Statutory liquidity ratio (SLR) at 21.5 percent. This is the second time in succession that the rates have been kept unchanged since the last rate cut made during April’s monetary review.

“Being the last review policy for the present governor, it was quite anticipated that a balanced approach would be executed. Also, since the retail inflation was higher than projected, this decision was pretty much on the cards. For the realty sector, it is a good decision considering the passage of GST with still rising uncertainty over the rates”, says  Rakesh Yadav, Chairman, Antriksh India Ltd. Adding further,  Kushagr Ansal, Director, Ansal Housing explains, “This policy review decision has not come out as a surprise, and chances are that we might not see a rate cut in the remaining policy reviews for this calendar year as the newly appointed governor will take time and might follow a stable approach before commencing with any hikes or reductions. GST has been passed and the RBI will have to take actions in the next policy review based on what rate gets decided.”

“As the retail inflation observed higher numbers, it was clear that RBI will use a wait and watch approach, and this policy review being the last one for Raghuram Rajan, chances were slim that a rate cut was possible. Although, this time the monsoon has resulted better than forecasted which will allow the next policy review to become a bit lenient. The banks are yet to pass on the benefits of previous rate cuts and with the upcoming festive season, this sector will majorly bank upon how the next policy review shapes up”, avers Vaibhav Jain, CMD, Rise Group.

“Choosing not to cut down on the key rates is a wise step as the current market is susceptible to inflation and with the recent rise in retail inflation measured against the CPI, the future trajectory of inflation is uncertain. Although, with the festive season around the corner, this sector is forecasting a rate cut in the next policy review of RBI so that the banks can pass on the benefits right before high-sales volume that is witnessed during festive season”, states Rahul Chamola, MD, One Leaf Group.

“The apex bank has decided not to cut down on the rates in an accommodating measure for all. With the last reduction only two policies old, it wants to be sure if the market is ready to stabilise in the anticipation of more rate cuts. As Raghuram Rajan bids adieu with this policy review, a tough task lies ahead, as the sector will be expecting a rate cut in the next policy review since the market is expected to gain momentum with better monsoon this time and festive season ahead. A cautioned approach might also be underway with GST rate yet to be decided”, concludes Dhiraj Jain, Director, Mahagun Group.