India Ratings maintains stable outlook for cement firms for FY18; prices may go up

NEW DELHI: India Ratings and Research (Ind-Ra) has maintained a stable outlook on cement manufacturers for financial year 2017-18 due to stable demand growth, despite an increase in input cost.

The rating agency also expects cement prices to go up during FY 2017-18 on stable demand.

"Ind-Ra expects stable cement demand to enable cement manufacturers to pass on increases in cost during FY18," it said.

It expects the credit profile of cement manufacturers to remain stable on stable operating profitability and in the absence of debt-led capex.

The operating profitability of cement manufacturers in the next financial year to be around the FY16 and estimated FY17 levels on increase in government expenditure, according to the agency.

Ind-Ra has revised down its growth estimates for the cement industry to 3%-3.5% in the current financial year from 4%-6% earlier due to a blip in demand due to demonetisation.

It, however, expects the cement industry to grow 4%-5% year-on-year in the next financial year, driven largely by the demand from infrastructure activities and a revival in housing demand in rural areas, both led by government spending.

"Ind-Ra believes that a 38% and 23% increase in the allocation of funds towards the housing sector under Pradhan Mantri Awas Yojna and spending of the ministry of road transport and highways to Rs 290 billion and Rs 649 billion, respectively, would increase cement demand in FY18," it said.

The price of pet coke and coal has almost doubled since September last year. The current increase in crude oil prices is also likely to lead to an increase in diesel prices.

Source - ET Realty 

Housing approvals within 60 days in Delhi and Mumbai soon

Housing approvals in Delhi and Mumbai will come within 60 days. The notification for the model approval process in Delhi and Mumbai is expected soon. Venkaiah Naidu, Union Minister of Urban Development, Housing and Urban Poverty Alleviation told Magicbricks in an exclusive interview last week.

There will be an online process through which applications will be sent and approvals will come in 60 days. In case the approval does not come on time, the owner or developer can file an affidavit and start construction. Efforts are on to implement the process across the country.

However, this needs to spread to the rest of the country as well. In fact, the Centre has invited all states for a discussion on these issues on 28th February, 2017 in Delhi.

Metropolises such as Bengaluru, Pune and Noida are under scrutiny and comprehensive plans are being drawn to build better infrastructure. The Centre is facilitating creation of funds for urban local bodies in states to make cities more liveable. “We are taking into account the water supply, roads, etc. and creating a five-year development plan,” he said while talking about Bengaluru, Pune and Noida cities.

State participation is key to achieving adequate infrastructure and infrastructure is the essence of realizing the ‘Housing for All 2022’ dream. Affordable housing will be a success only when states perform. Around 23,000 houses lie vacant in Delhi alone because of lack of infrastructure. “Where there are people there are no houses and now there are houses with nobody residing in them. It is a grave problem,” said Naidu. The main infrastructure concern areas are drainage, sewage, main roads, byroads, rain water drainage, maintenance of water bodies, etc.

It is a joint effort by the Centre, states and local bodies. People only look for better quality and good services. If the states can figure out a method to provide these then there’s no going back. “They should study the development patterns of different states. Learn from other’s mistakes,” suggested Naidu.

He quoted the example of Rajkot in Gujarat, “It is a perfect example of how land can be monetised and used for rebuilding houses.” States should be agile and respond to the policy changes.

The developer community had initially voiced their concerns around the approval process. This concern has been taken care of by the Ministry of HUPA and Urban Development. MHUPA has collaborated with nine ministries to resolve the issue. Naidu shared, “Developers need around 41 permissions from the government which takes a lot of time. At the same time we are asking them to stick to timelines. So, I held meetings with several ministries and we agreed on some measures.”

He informed that the municipal bodies will start working through colour coded maps which they can consult, identify the area and grant approvals quickly.

Through the Real Estate Regulation Act (RERA), the aim is to create a central advisory mechanism, to ensure fair practices at the Centre and the states and to realise the mission of Housing for All By 2022. Naidu said that he has been actively pursuing the matter with the states. While some states have notified RERA, some are yet to do so. “By the deadline of May 2017, I am sure all 
the states will follow suit and notify the rules,” he added.

Source - ET Realty 

Dwarka Expressway oustees to finally get plots on March 1

GURUGRAM: Huda has decided to give physical possession of alternative plots to the oustees of Dwarka expressway by March 1.

All eligible candidates, barring oustees with general power of attorney (GPA) and special power of attorney (SPA), will be given allotment letters. Oustees have six months to vacate the structures coming in the alignment of expressway.

On Thursday, allotment letters were given to oustees from Kherki Daula. Those from New Palam Vihar were handed over the letters last week. Around 568 oustees of the project from New Palam Vihar and Kherki Daula had applied for alternative plots; out of which, 212 of them were found eligible as per the rehabilitation policy. Huda had given allotment letters to 148 of the 212 eligible oustees. The remaining 64 oustees with GPA and SPA will be rehabilitated after a verdict on the pending case before HC.

Following a petition from one of the oustees, Punjab and Haryana high court had stayed the issue of allotment letters to oustees with GPA and SPA, the next hearing for which is on March 16. “We are ready to give physical possession of the plots by March 1,” said Huda administrator Yashpal Yadav.

Oustees from Khedki Daula were given alternative plots in Sector 37C while those from New Palam Vihar were given plots in Sector 110A. On Thursday, the Huda administrator inspected the two sectors to review the status of the development works. “We hope to complete the development work in next four months,” said Yadav.

Source - ET Realty 

Delhi's IGI airport will have own Metro connecting all terminals

NEW DELHI: The IGI airport will soon get its own “air train”, a dedicated Metro, for passengers to transit from one terminal to another. Leading airports of the world like New York’s JFK, London Heathrow, Hong Kong and Zurich have long had free-to-use Metro lines between their terminals and Delhi will be the first Indian airport to boast of the same.

“Delhi International Airport Pvt Ltd (DIAL) has proposed an automated people mover (APM) between terminal 1 (low cost domestic), T2 (old international which will make way for a new T4 in 2020) and T3. Work on it was originally supposed to begin in 2020 alongside the construction of T4, but, given the growth at Delhi airport and volume of traffic, the aviation ministry has told us that the APM should be expedited and made ready at the earliest,” said a highly placed source.

At present, passengers transit between terminals by buses. Till the tunnel road was ready, buses used to go via NH-8 in front of Radisson — something that could take upto 45 minutes. The tunnel route has cut commute time to half an hour.

DIAL is going to ask Delhi Metro Rail Corporation (DMRC) to do a technical study on the routing and also give an indicative costing of the air train project. The airport operator has held initial consultations with a New York-based firm.

Based on that, the plan is to have four stations for its air train — at T1, Aerocity (the hospitality district), cargo terminal and a common one for T3 and T2/4.

“By our estimates, the line should be 5.5-km-long with 3km underground section and 2.5km on ground. The average costing of each kilometre of under and on ground Metro line is up to Rs 500 crore and Rs 200 crore. It should cost Rs 1,500-2,000 crore. All this will be known for sure once DMRC gives its report to DIAL,” said the source.

Delhi airport — with two terminals (T3 and T1) and three runways — handled 5.5 crore passengers in 2016. By July, DIAL will begin work on expanding T1 and laying the fourth runway.

With this, the annual capacity at T1 will rise to 3.5 crore while T3-T2 will collectively handle about 4 crore passengers by 2020. Clearly there will be a large number of passengers transiting between T3/2 and T1 for flight transfers. The next phase in 2025 when T4 is ready, will see an annual traffic rise to 9.2 crore. The eventual capacity of IGI airport is about 10 to 11 crore passengers per annum. Once T4 is ready by 2025, T3 which is integrated domestic-cum-international could be made all international and T1, T4 could be all domestic.

The airport operator is collecting data on the projected volume of inter-terminal transfers in coming years to determine the number of coaches and frequency.

It estimates the train may need to start with two coaches and leave at duration of two to three minutes. The capacity and frequency will be increased as traffic increases.

“Originally we were to begin work after 2020 when T2 would be demolished to make way for T4. However, the government wants the air train to be ready at the earliest. Once DMRC gives us an estimate, we will move the Airports Economic Regulatory Authority (AERA) to see how it will be funded,” said the source.

A senior DIAL official had recently said the massive traffic boom in Delhi will ensure that there is no sudden rise in cost for users, the passengers, as the operator begins the second phase of its expansion work.

Source: Et Realty

Delhi Development Authority to digitise 77 activities, set up service centres

NEW DELHI: As part of its plan to take all services online, Delhi Development Authority will start working on the digitisation of 77 activities related to land disposal and management, finance, sports etc. To assist people with online interface, the agency will set up citizen service centres throughout the city.

The decision was taken at a review meeting on Wednesday where lieutenant governor Anil Baijal approved the blueprint for ‘DDA going digital’. Soon after taking over as Delhi LG, Baijal, also former DDA VC, had directed the agency to initiate process to take all services online.

DDA has been directed to compile year-wise data of encroachment on their land along with action plan for its removal. A facility for grievance redressal will also be made online.

Source: Et Realty

Here's what you will save on buying home under Pradhan Mantri Awas Yojana

After the recent changes in the Pradhan Mantri Awas Yojana (PMAY), it seems that the interest in the scheme is picking up. Developers have started promoting their offerings in the affordable housing segment, which may sound tempting to those interested in government subsidy.

Real estate has its own share of concerns, both for the end-consumer as well as an investor looking to lock in funds for a quick gain. From a delayed home possession to oversupply of units, there's a lot to tackle in such an illiquid and immovable asset class. PMAY may, however, still generate a positive response, especially if the builders live up to their promise in terms of construction quality and timely delivery. The infrastructure related to affordable housing is also something the government needs to address.

Meanwhile, the subsidy in PMAY is in real rupee terms. Existing guidelines are aimed at the economically weaker section (EWS) and the lower income group (LIG) category, earning Rs 3 lakh and Rs 6 lakh per annum respectively. The two new subsidy slabs (yet to be notified) will bring in people earning up to Rs 12 lakh and Rs 18 lakh per annum into the fold. Irrespective of the loan amount, the subsidy is fixed for each category of income level.

Government subsidy in percentage
The credit-linked subsidy of 6.5 per cent will be available only for loan amounts up to Rs 6 lakh. In the two new slabs, people earning up to Rs 12 lakh per annum will get 4 per cent interest subsidy on a loan amount of Rs 9 lakh, and the Rs 18 lakh per annum income category will get a 3 per cent subsidy on a loan amount of Rs 12 lakh. Any additional loans beyond the subsidised loan amount will be at a nonsubsidised rate. For all the slabs, the scheme will apply to loans with a tenure of up to 20 years.

Government subsidy amount
The interest subsidy amount will not be the differential of interest amount (of actual and subsided rate) but will be the net present value (NPV) of the interest subsidy amount. It is to be calculated at a discount rate of 9 per cent. For calculating NPV of the subsidy, one will need the loan's amortisation schedule as the interest portion of each equated monthly instalment (EMI) has to be considered. Thereafter, use the Fx function in an excel sheet to arrive at the NPV.

Because of the subsidy amount, your loan amount reduces and, therefore, the interest burden too comes down. Let us now see how the interest subsidy amount will be calculated and how it will be applied to one's loan.

I. First, let's consider someone with an income up to Rs 6 lakh
(Maximum subsidised loan of Rs 6 lakh; Subsidy: 6.5 per cent)
Original loan amount: Rs 6 lakh
Interest rate: 9 per cent
EMI: Rs 5,398
Total interest cost (over 20 years): Rs 6.95 lakh

At 6.5 per cent (subsidy), the NPV of the interest subsidy amount comes to Rs 2,67,000.

This interest subsidy amount is what the government is offering to the borrowers. So instead of the Rs 6 lakh loan, the revised loan amount comes to Rs 3,33,000. Remember, the borrower has still to service the loan at 9 per cent per annum. This is because the interest subsidy amount will be credited upfront to the borrowers. The net effect: Reduced EMI and a lesser interest burden.

Revised loan amount: Rs 3.33 lakh
Interest rate: 9 per cent
EMI: Rs 2,996
Total interest cost (over 20 years): Rs 3.86 lakh

Net reduction in EMI: Rs 2,402
Net savings in interest: Rs 3, 08,939

II. Next, let's consider someone with an income up to Rs 12 lakh
(Maximum subsidised loan of Rs 9 lakh; Subsidy: 4 per cent)
Original loan amount: Rs 9 lakh
Interest rate: 9 percent
EMI: Rs 8,098
Total interest cost (over 20 years): Rs 10.43 lakh

At 4 per cent (subsidy), the NPV of the interest subsidy amount comes to Rs 2, 35,000.
Revised loan amount: Rs 6.65 lakh
Interest rate: 9 per cent
EMI: Rs 5,983
Total interest cost (over 20 years): Rs 7.70 lakh

Net reduction in EMI: Rs 2,114
Net savings in interest: Rs 2, 72,445

III. Next, let's consider someone with an income up to Rs 18 lakh
(Maximum subsidised loan of Rs 12 lakh; Subsidy: 3 per cent)
Original loan amount: Rs 12 lakh
Interest rate: 9 per cent
EMI: Rs 10,796
Total interest cost (over 20 years): Rs 13.91 lakh

At 3 per cent (subsidy), the NPV of the interest subsidy amount comes to Rs 2,30,000.
Revised loan amount: Rs 9.7 lakh
Interest rate: 9 per cent
EMI: Rs 8,727
Total interest cost (over 20 years): Rs 11.24 lakh

Net reduction in EMI: Rs 2,069
Net savings in interest: Rs 2, 66,649

Conclusion
The actual interest rate may be different from the 9 per cent considered above. Currently, marginal cost of funds based lending rate (MCLR)-linked home loan rate is hovering around 8.5 per cent, so the EMI will be lower and even the interest savings will be more. But yes, do check out PMAY's eligibility, which is that the person (beneficiary) who applies for the scheme should not own a pucca house (an all-weather dwelling unit) either in his or his family member's name anywhere India. A beneficiary family includes husband, wife and unmarried children.

Source: Et Realty

NCR RWA writes to Noida Authority CEO, Delhi CM over DND maintenance

Delhi/NCR

The NCR RWA has written to authority CEO Deepak Agarwal and Delhi chief minister Arvind Kejriwal on February 20 over the maintenance issues of DND till the Supreme Court verdict comes on the matter. For this, they have proposed a joint action committee comprising of Noida Authority, Noida Toll Bridge Company Ltd (NTBCL - responsible for DND maintenance) and Delhi government to coordinate amongst them for the same.

"Since the Supreme Court verdict of (November 11, 2016) upholding the Allahabad High Court order (Oct 26, 2016) for a toll free DND, the maintenance of the said road has stopped as NTBCL, primary company responsible for the maintenance of the road, is not doing the same. Because of this there is no regular cleaning, lighting, upkeep of plants and daily maintenance of the road. Also, there's need to increase police patrolling as well as deployment of fire tender and ambulance to tend to emergencies," said P S Jain, president Confederation of NCR Residents Welfare Associations (CONRWA).

According to Jain, since the possession of the road is with NTBCL it is the responsibility of the company to maintain it. "But there's no maintenance happening on the road," said Jain.

CONRWA further states that since one part of the road is under ownership and control of Noida authority and the other major part is in ownership and control of Delhi government, a joint responsibility of both to maintain the road falls on both bodies in the public interest. "Hence we've written to CEO Agarwal and CM Kejriwal to form a joint committee of Noida authority with NTBCL and Delhi government to carry out the maintenance work of the road before the condition worsens," said Jain.

Anil Sharma, general secretary, CONRWA, added that concerned officers from Delhi should also be asked to take care of the area falling under control of Delhi government. "It has been observed that the municipal toll collection by MCD Delhi, obstruct the road by stopping the vehicles in a non-disciplined manner. This obstruction on the road should be checked and the toll collection should be properly organised," said Sharma.

The DND flyway connecting Delhi and neighbouring Noida was declared toll free for commuters by the Allahabad High court order (of Oct 26, 2016) in response to a Public Interest Litigation (PIL) number 118. R 60214/2012 filed by Federation of Noida Residents Welfare Associations (FONRWA of Nov 16, 2012) demanding a toll free DND.

The said judgment was further upheld by the Supreme Court on Oct 27, 2016 and also Nov 11, 2016 demanding a Comptroller and Auditor General (CAG) inquiry into the cost of the DND flyway project and submit a report before the Apex court.

Source - Magicbricks 

Govt approves 90,095 more affordable homes under PMAY(Urban) in 3 states

NEW DELHI: The government on Monday approved construction of 90,095 more affordable houses for urban poor under Pradhan Mantri Awas Yojana (Urban) with an investment of Rs 5,590 crore in three states. The central assistance for the same would be Rs 1,188 crore.

The ministry of housing & urban poverty alleviation (HUPA) has allotted the highest 82,262 houses in 49 cities and towns of Madhya Pradesh with an investment of Rs 5,260 crore with a central assistance of Rs 1,071 crore.

Jammu & Kashmir got 4,915 houses in 24 cities and towns with an investment of Rs 240 crore and central assistance of Rs 74 crore, while Dadra & Nagar Haveli’s capital Silvassa has been sanctioned 803 affordable houses with an investment of Rs 26 crore and central assistance of Rs 12 crore.

The government approved 46,823 new houses under the beneficiary led construction (BLC) component of PMAY (Urban), enhancement of 773 houses in Jammu & Kashmir under BLC and building 42,499 new houses in Madhya Pradesh under affordable housing in partnership (AHP) component.

In Madhya Pradesh, another 39,763 new houses will be built under BLC component under which an eligible beneficiary is assisted to build a house on the land owned by him/her. This takes the total affordable houses approved for Madhya Pradesh to 187,135 and for Jammu & Kashmir to 5,864.

The government has so far approved construction of 1,651,687 affordable homes for the benefit of urban poor under PMAY (Urban) with a total investment of Rs 89,072 crore with central assistance of Rs 25,819 crore.

Under BLC and AHP components of PMAY (Urban), central assistance of Rs 1.50 lakh is provided for each beneficiary.

Source-

From April 1, pay 5 times more for freehold conversion in Delhi

Delhi/NCR

You will have to pay nearly five times higher ground rent from April 1 while applying for freehold of properties in prime locations of the capital, which have been leased out by the land and development office (L&DO) under the urban development ministry.

Even those property owners who converted their leasehold properties to freehold between 2000 and 2017 would have to pay the revised rent, specific to the year when the deed was approved. Sources said L&DO had taken affidavits from all the applicants with an undertaking to pay revised rent at the time when they applied for freehold.

The urban development ministry has approved aligning the land rates of L&DO at par with Delhi Development Authority (DDA) and it issued a circular on February 15. While DDA has been revising its land rate periodically, L&DO has not revised it since 2000. Rates of DDA are at least five times more than the L&DO’s rates.

Ground rent, which is paid annually by the lease holders to the land owner, is in the range of 2.5% to 5% of the premium or cost of the land in the case of L&DO properties. These properties are located in prime areas including Connaught Place, Hailey Road, Mandir Marg, Parliament Street, Khan Market, Prithviraj Road, Golf Links, Defence Colony, Sundar Nagar, Vasant Vihar and Nizamuddin, to name a few.

So far, L&DO has leased out around 65,000 properties in Delhi and about 30,000 of these have been converted to freehold.

Sources said the revised rates of land will be different, depending on the localities and type of the property.

According to the last revision of land rates by L&DO in 1998, one sq metre of residential property in CP cost nearly Rs 18,500 while a sq meter of commercial property cost about Rs 58,000. Once the rates are notified, the minimum cost of one sq meter of residential property would increase to about Rs 92,000 and commercial property price to around Rs 2.9 lakh. So, the ground rent will also increase substantially.

This is also likely to increase L&DO’s annual revenue from rent substantially. Moreover, one time clearing of old dues by freehold property owners may generate Rs 2,000 to Rs 3,000 crore.

Announcing the revision of land rates, L&DO said, "The revision is due from April 1, 2000. It has been decided by the competent authority to align the lane rates with rates notified by DDA with effect from April 1, 2000." The order said since the implementation of the revised rates entails modification of the specific rates on the web-portal, so applications for conversion of land has been kept in abeyance till this March end.

Source - MagicBricks

GST to decrease operating cost of warehousing, enable consolidation: Survey

NEW DELHI: Majority of the leading warehousing space occupiers feel implementation of the goods and service tax (GST) would decrease the operating costs and would be positive for their overall business operations in India, according to a survey by CBRE.

More than 63% of the respondents hope decrease in operating costs will enable them to consolidate their smaller facilities into larger ones and expand their footprint around major consumption centres.

About 45% feel that their cost of warehousing operations may decline once the GST comes into play, while around 25% were cautious and felt that it is too early to assess the actual impact.

Location is the most important factor for companies while leasing warehousing space, followed by the real estate cost of leasing space in a particular state/city, the survey revealed.

"While currently location decisions may also be influenced by tax-incidence, however, post the implementation of the GST, most warehousing occupiers are expected to take decisions purely on the basis of reach to market, quality and size requirements," said Jasmine Singh, head - industrial and logistics services, India, CBRE.

About 65% of respondents believe that they will need a minimum of 3 to 12 months to align their existing business strategies with the new tax structure.

Consolidation of warehousing portfolios will be the most important strategy for companies in the post GST era, with about to 28% of respondents voting for it, while 23% of companies plan to further expand their operations across the country.

"This will result in increased demand for larger, better quality warehouses thereby providing an ideal platform for the emergence of large scale nationwide players," Singh said.

The concept of a mother warehousing hub for a region supplemented by spokes is expected to become more popular in the post-GST scenario, with around 11% of companies preferring to adopt the hub and spoke approach, compared to only 6% now.

Due to the multiple tax rates at the state and city level, goods often spend a substantial amount of time in transit. This increases the overall cost of transport and makes the system inefficient.

The removal of various federal tax barriers and creation of a common market will improve supply chain efficiency and attract more foreign direct investment (FDI).

"While some may argue that the reform may prove to be detrimental for the smaller players, in our opinion it is likely to allow these smaller players to develop better quality assets or enter into joint ventures with larger players," Singh said.

Survey respondents included leading corporates in sectors such as third party logistics (3PLs), e-commerce, engineering & manufacturing, fast moving consumer durables and non-durables, pharmaceuticals and retail. Approximately 63% of respondents were domestic corporates, while the rest were headquartered abroad.

Source: ET Realty

Ghaziabad dept body to curtail expenses after row over CAG audit

GHAZIABAD: Nearly a week after Prime Minister Narendra Modi flayed Akhilesh Yadav government for not allowing CAG audit of expenditure in Ghaziabad Development Authority, the civic body has set in motion a process to curtail unwanted expenses in the authority.

According to sources, GDA vice-chairman Vijay Kumar Yadav recently wrote to its finance wing seeking details of expenditure under various heads and draw a plan wherein extravagances could be checked.

"The vice-chairman issued a directive to draw a plan where we could curtail unwanted expenses and we are in the process of preparing it," said T R Yadav, finance controller, GDA.

"The running cost of GDA comes to nearly Rs 75 crore in a year which includes administrative cost, establishment cost, repair and maintenance cost, expenses on vehicles and on training and workshop," said Yadav.

The annual administrative cost comes to nearly Rs 4.76 crore while the establishment cost per year is Rs 4 crore. The expenses on repair and maintenance of all buildings owned by GDA is Rs 4.49 crore per year.

GDA also spends Rs 25 lakh annually on fuel and maintenance of vehicles, while Rs 11 lakh is spent on training and workshops.

"By judicious use of resources, we can save crores. For instance, we have outsourced computer operations to nearly 40 others which cost us immensely. We could use available manpower resources within GDA for the purpose instead of outsourcing them," he said.

"Likewise, stationery, newspaper and magazines cost us nearly Rs 21 lakh annually. We could check these expenses also," said Yadav.

During an election rally in Ghaziabad on February 8, Narendra Modi specifically took GDA's name and said that if voted to power in the state, the BJP will make CAG audit mandatory for all authorities including GDA.

The Akhilesh Yadav government in the past refused to allow CAG audit of GDA on the ground that funds allotted to it comes from state government's coffer, while the rest is generated by GDA itself.

 Source: ET Realty

Lift construction bar in Aravalis: Haryana

NEW DELHI: In a fresh attempt to allow more non-forest activities, including real estate projects, in the ecologically fragile Aravalis, the Haryana government has moved a proposal to amend a key provision in the Regional Plan of NCR 2021, which restricts using barely 0.5% of land for “recreational activities”.

In its proposal to the urban development ministry, the Manohar Lal Khattar government has demanded that the restriction be lifted in the Aravalis. Sources said the state has argued that since the apex panel of NCR Planning Board (NCRPB) has approved that the Aravali notification of 1992 will be applicable for the entire range, there is no need to have this restrictive provision on allowing construction activities. Till Aravali notification covered only Gurgaon (Haryana) and Alawar (Rajasthan) districts.

The ministry is likely to discuss the issue with Haryana government officials next week and may ask NCRPB to prepare a draft to amend the provision.

Haryana has said such zoning regulations of Regional Plan-2021 (restricting only 0.5% of construction, that also for recreational activities) should not be made applicable since this is an additional restriction. Harayna had consented to this provision when the regional plan was notified in early 2000. But subsequently, the Bhupinder Singh Hooda government raised demand to lift this restriction to allow more real estate activities in the guise of “recreational projects”, though it never succeeded.

Now after making public commitment to protect and conserve Aravalis, the BJP government has raised the similar demand like that of the Hooda government.

TOI has learnt that Haryana has argued that the Aravali notification of 1992 specifies the activities which can be permitted after getting prior approval from the ministry of forest and environment (MoEF). Hence, there is no need to have another restrictive condition.

The Regional Plan-2021 mentions that in Natural Conservation Zones (NCZs), which include Aravalis, lakes and other water recharge zones only agriculture, horticulture, pisciculture, social forestry/ plantations and recreational activities can be permitted.

Green activists said though the state may claim that MoEF guidelines would be enough to safeguard the environmental impact, doing away with restriction for non-forest activities will open up Aravalis for more commercial exploitation.

Source: ET Realty

Interest subsidy on housing loan applicable from January 1, 2017

Anyone who has applied and got a home loan sanctioned after January 1 and has less than Rs 18 lakh annual income, will be eligible for interest subsidy of 3-4%. Prime Minister Narendra Modi had announced the interest subsidy on December 31, though the annual income criteria was not announced.

This benefit interest subsidy can also be availed by unmarried and earning young adults for acquisition/ construction of a new house including repurchase.Moreover, flats measuring up to 960 sq ft and 1,184 sq ft will be eligible for 3% and 4% interest subsidy respectively for the specified income group.

TOI on January 4 had first reported that the housing ministry had moved a proposal to provide 4% rebate on interest rate for loans up to Rs 9 lakh and this can be availed by those who earn up to Rs 12 lakh annually in urban areas. Similarly, people earning up to Rs 18 lakh annually will be eligible to avail 3% rebate on interest for loan up to Rs 12 lakh.

Sources in housing finance sector said that though the government had finalized the policy, it has not yet announced it because of election code of conduct. In fact, the ministry had held a meeting with banks and housing finance companies where the operational guidelines for "credit linked subsidy scheme for middle-income groups (CLSS-MIG)" was discussed.

The rebate in interest rate is likely to push housing demand in urban areas and thereby help the sector to revive.

Source - Economics Times