Yamuna bridges await Haryana reply on cost sharing

The NCR Planning Board has sought a reply from the Haryana government after the Noida Authority raised the issue of cost sharing of the two bridges planned on Yamuna between Noida and Faridabad. The Authority, which says it has sufficient funds to start the project, has also decided to increase purchase rates of land along the river.

Construction of the two bridges was approved last month in a meeting in Delhi attended by Haryana additional secretary P Raghvendra Rao, Noida and Greater Noida authorities' chairman Rama Raman, NCR Planning and Monitoring Cell (UP) commissioner Kush Verma and Faridabad town planner.

 

"After we raised the issue of cost sharing, the NCRPB has sought a reply from Haryana. Once cost sharing is settled, the projects will further move ahead," said Rajesh Prakash, additional CEO, Noida Authority. "We are going to increase purchase cost of land near the riverbed. We are planning to increase the purchase rate from the existing Rs 2,800 per square metre to Rs 3,500 per sqmts. A proposal will be presented in the Authority's next board meeting," Prakash said.

Chairman of the Noida and Greater Noida authorities Rama Raman, meanwhile, said MoU for the two bridges was being finalized and is expected to take a couple of months, following which tenders will be awarded. "A team is working on the MoU. Once both Haryana government and we finalize MoUs, a date for signing them will be announced," Raman said. The bridges will drastically cut travel time between Noida and Faridabad from two hours at present, to flat 15 minutes.

"The bridge on the FNG corridor, estimated to cost Rs 266 crore, will start between sectors 150 and 149A and end in Tilori village in Faridabad. The length of the bridge is 600 metres and Canal Bridge is 80 metres. The other bridge will start nears sectors 167A and 168 and end near Faridabad's Lalpur village. The 600m-long bridge will cost Rs 315 crore," Raman said. Both the bridges will end on the road leading to Badkal lake crossing. "We have already received environment clearance and hydraulic study will soon be completed," Raman added.

Source: Magicbricks

Smart transportation for Smart Cities

As per a World Bank study, by 2031, some 600 million people are expected to live in India's cities. However, only about 20 Indian cities with populations over 500,000 have any kind of organized public transport systems. In fact, the share of public transport in large Indian cities actually declined from some 70 per cent in 1994 to almost 40 per cent in 2007. Furthermore, India's accident and fatality rates are among the highest in the world, mainly affecting the poor and vulnerable who do not have their own means of transportation.

City transportation is an important pillar for quality of life of citizens in a city. Currently, in most of the cities, public and private road transportation are the key mode of commuting and logistics. Some large and mega cities have metro and local train network as the backbone transportation mode.

Lack of quality and safe public transportation, inadequate capacity of public transportation, road safety concerns, overcrowded road network, poor traffic management, parking issues, theft, poor road conditions, lack of modal options (including pedestrian walkways) remain the key issues in most of the cities. Most cities also lack the integrated transportation plans leading to huge demand-supply gap and poor transportation network. For transport operators, huge demand-supply gap, under recovery  and poor asset management remain the key issues.

The schematic below highlight some of the key issues in public transportation in India which are mapped as a part of Accenture- NASSCOM report:

Transforming Public Transportation leveraging Smart Technology Solutions

Technology plays an important role by predicting demand and supply data to feed into transportation planning. Technology can also help in improving reliability of public transportation network by providing visibility on arrivals/departures/route information for travellers for hassle-free journey. Multi modal fare integration can help citizens to use multiple modal options without hassle of purchasing different tickets. Intelligent traffic management can aid efficient traffic flow.

 

The schematic from Accenture NASSCOM report below shows the how Smart Technology Solutions can be leverage to improve public transportation and transportation security:

Some of the technologies relevant for Smart Cities includes:

Bicycle sharing system: A bicycle sharing system, public bicycle system, or bike share scheme, is a service in which bicycles are made available for shared use to individuals on a very short-term basis. For many systems, smartphone mapping apps show nearby stations. They show how many bikes and how many open docks are available at each station, increasing convenience for users.

Geospatial-enabled efficient transportation system: Geospatial-enabled services provide periodic traffic forecast, journey planning mobile applications based on real-time data, etc.

Dynamic carpooling/car sharing: Carpooling applications link drivers and passengers in real-time, thus enabling dynamic carpooling. Drivers wishing to profit from their journeys can find people situated on the same route via a smartphone app and vice versa. Passengers can also directly debit his or her fare to app, eliminating the need for any money exchange. The costs of travel would typically be capped.

GPS-based tracking and route information of public transport: Advanced vehicle tracking solutions enhances operations and optimises public transportation and ridership. These solutions offer real-time GPS tracking from mobile devices thus increasing the reliability of public transportation.

Integrated transit hubs: Integrated transport hubs seamlessly connect multiple modes of transportation like bus system, metro system, etc.

Public transport surveillance: As the public transit population grows, it becomes increasingly important to launch surveillance system on the public transport, for e.g. buses, mass transit railway, underground, and trains to secure public transportation. The administrators can monitor the public transport remotely and take action against any accidents/incidents. The video footage can also be used as legal evidence against damage or criminal action on the public transport.

Road user charging: Road user charges are direct charges levied for the use of roads, including road tolls, distance or time-based fees, congestion charges and charges designed to discourage use of certain classes of vehicle, fuel sources or more polluting vehicles. These charges help to reduce peak hour travel  and the associated traffic congestion or other social and environmental negative externalities associated with road travel such as air pollution, greenhouse gas emissions, and visual intrusion, noise and road accidents. It can be leveraged in certain busy areas or selected cities to discourage private transport usage.

Single fare card: Single fare card for fare payment on the various participating public transportation systems. The cards can be recharged by mobile applications/internet/retail outlets. Potential extension of the cards could also be for street parking.

Smart parking: A smart parking leverages parking sensors, cameras, smart parking solution, etc. to provide efficient management of on street and off street parking spaces.

Smart toll: Smart toll leverages technology like number plate detection, RFID, etc. to charge toll fees to user account so that vehicles do not have to wait at toll gates on local, national and state highway.

Smart traffic lights: Smart traffic lights leverages technology to sense traffic condition to tune traffic lights which enable smooth flow of traffic.

Freight ICT services: Freight ICT applications can help save time and energy by improving the efficiency of freight vehicle operations including processes at entry and exit and making better use of the freight network. ICT brings the potential for virtually unlimited data collection, greatly enhanced predictive capabilities, and real-time, dynamic decision-making and implementation which lead to a more efficient freight system based on completely visible and accessible physical and digital networks.

Electric vehicles: Support electricity and renewable energy operated cars with the required infrastructure. Make a few cities as pilot for "Plug-in" ready cities by facilitating the expansion of a Public Electric Vehicle (EV) infrastructure that ensures the safe, reliable, and efficient integration of EV charging loads with the power grid.

Transportation is a key pillar for quality of life in a city. India needs a balanced focus in terms of improving/extending transportation infrastructure and leveraging smart technology solutions. While, there is lots that needs to be done to improve/extend public transportation infrastructure in Indian cities and Government of India is investing in various national/ state/ local initiatives to improve public transportation, there is also need to leverage Smart Technology Solutions to quickly improve efficiency/capacity of public transportation and to create high quality public transportation system.

Source: The Economic Times

SECTOR TO GAIN FROM REDUCED BANKING RATES

In a move that will provide a huge help in driving the demand for real estate sector in our country, a handful of banks have slashed their lending rates and a few have made a cut in their deposit rates which is considered a sign for future reduction in lending rates. A drop in lending rates means that the Equated Monthly Instalments (EMIs) are decreased which provides an immediate relief to the pockets of the customers. Country’s second largest private sector bank in terms of assets, HDFC Bank yesterday announced a reduction of 35 basis points or 0.35 percent on its base rate bringing it down to 9.35 percent which will be effective from today, from a previous 9.7 percent; currently getting it to the lowest in the industry standing shoulder-to-shoulder with SBI and ICICI Bank. Also, the Bengaluru-headquartered state owned Canara Bank reduced its lending rate by 10 basis points or 0.10 percent bringing it down to 9.90 percent from 10 percent previously. Axis Bank will reduce its deposit rates by 0.2-0.5 percent across various maturities with effect from today signalling a future drop in lending rates.

“The reduction in lending rates by banks is coming at the right time as we are inching closer towards the final festive season of the year where most home sales takes place. It was also important on the banks behalf that these rates were reduced as frequent nods had already come from the RBI chief and by end of this month, another RBI review policy is awaited that might see a rate cut only when the banking industry cooperates with the RBI”, states Mr. Deepak Kapoor, President-CREDAI Western U.P. & Director, GulshanHomz. Also agrees Mr. Ashok Gupta, who is the CMD of Ajnara India Ltd. as he believes that “There exists a direct relation between reduction in lending rates by banks and an increase in demand for property. It is then just a matter of proper timing by the banks while adjusting the rates. Just a month away from now we will begin with the festive season of the Hindu calendar where massive demand is observed every year, and this is the time when potential customers plan and allocate their funds for the big purchase. Thus, a fall in lending rates today will promote the sentiments in the market and allow people to strategize their upcoming purchase”.

The Reserve Bank Of India had already provided the country with three rate cuts this year by 25 basis points or 0.25 percent on each occasion. In its monetary policy review on August 4^th, RBI governor Mr. RaghuramRajan had deplored that banks had lowered their rates by only 30 basis points since the first rate cut in January this year despite RBI having cut its benchmark rate by as much as 75 basis points since then. Mr. Rajan had also linked better monetary policy show or banks cutting their lending rates to any future rate reduction by the central bank. “The RBI has played its part seemingly well with already reducing the repo rate by 75 basis points within this year with two more policy reviews left for this calendar year. The ball is now in the banks court to pass on the benefits to the public otherwise RBI won’t be too lenient in the upcoming policy reviews. This rate cut by banks is a welcome move as it will further assist in boosting the demand for homes in the sectorwhich has become the need of hour considering rising inventory levels nationwide”, explains Mr. KushagrAnsal, Director, Ansal Housing. Adding to the view, Mr. Sudeep Agarwal, MD, Shri Group avers “These surprise rate cuts by a few banks will put pressure on other lenders to bring down their rates which will be largely favourable for the potential customers as they will have much reduced EMIs to pay for their homes and at the other side, the future demand for property market will see a correction as the overall cost of a unit on the customer will reduce drastically. This also holds a big significance as further the banks reduce their rates, more pressure will mount on RBI for its next review policy”.

Banks with high liquidity can easily afford to decrease their lending rates without touching the deposit rates but banks with lesser liquidity are first forced to decrease the deposit rate which on the other hand increases their liquidity then can they bear the drop in the lending rates. A drop in the deposit rate directly leads to lesser returns on investments such as fixed deposits, etc. Thus, major players of the banking industry are able to satisfy the complete demand whereas other banks can either provide higher returns on investments or charge less on the amount lent to the public. “Looking at the present economic scenario in the country, the banks will have to create a perfect blend between providing higher returns on investments or charging less on loans as on either side sentiments play a vital role in attracting customers. Another way around can be, when RBI allows the banks to lend below the base rate particularly for home loans, so that the demand for credit and property can be ignited the benefit of which will go in the accounts of real estate sector and the banking industry”, enlightens Mr. Rupesh Gupta, Director, JM Housing.

As more and more banks join the race of reducing the lending rates, it will be an all-win situation for the public, and real estate sector will be the biggest gainer of them all. The prices in this sector are witnessing its record fall for over a few years along with unprecedented inventory levels that will now gradually benefit from this reduction in lending rates made by banks. “Blaming on poor purchasing power, today’s population in India is making all the big purchases on credit, thus making the role of Banks even more quintessential in how the economic cycle circulates. As the lending rates are directly proportional to the EMIs, lower Interest rates are the need of the hour. With the slash in lending rates by one of the biggest banks in India –HDFC and Canara- the borrowers are at the happy spot. Especially with festive season just around the corner, it was a wise step to shake the dormant sales in the real estate sector”, concludes Mr. Rajesh Goyal, Vice President-CREDAI Western U.P. & MD, RG Group.

How smart city tag can transform Ghaziabad realty

The Urban Development Minister, Venkaiah Naidu on Thursday unveiled the names of 98 cities which will come under the scrutiny of a smart city tag. Uttar Pradesh has the largest share of developing 13 smart cities, Ghaziabad being one of them. 

Will this news kick start the real estate market of Ghaziabad which has been stagnant in the last couple of months? ‘Yes,’ say industry experts.  

“The population moving to Ghaziabad over the last decade are salaried professionals, who are mostly tech savvy. Some of them are also concerned about the environment. Smart City is a concept that makes life easier for residents and enhances their quality of life. It is not limited to technology," says Gaurav Gupta, general secretary, CREDAI Raj Nagar Extension.

It includes transportation, waste management, traffic management, etc.  Ghaziabad has been shortlisted for stage 2 of the smart city mission. Everyone including real estate developers will work towards providing such an environment,” he adds.

The development authority plans to put up informative LEDs running on solar energy, free Wi-Fi access to residents of Ghaziabad for a limited period, etc.

Developing Ghaziabad as a smart city, will definitely bring in positive results. Developers will increasingly focus on energy conservation, pollution control and come up with eco-friendly projects that will add value to the lives of the residents also quality of living for residents will improve significantly,” Gupta adds.

Currently, Ghaziabad is going through infrastructural development - from Metro connectivity to flyovers and roads. “We have already executed the first phase of metro line from Anand Vihar to Vaishali. In the second phase, we are taking the metro from Dilshad Garden to Ghaziabad new bus stand through Mohan Nagar. In the third phase, we are planning metro line from Sector 62, Noida to Indirapuram CISF Road," says VK Goel, chief engineer, Ghaziabad Development Authority.

Further, there is a proposal in pipeline from Indirapuram CISF Road to Link Road and Vaishali to Mohan Nagar. The related Detailed Project Reports (DPR) are under preparation,” he adds.

Expert says that if the above mentioned development successfully completes and the government starts its process of converting the city into a Smart City, then it will push the property values significantly. “The announcement of it will only help in pushing up the values in the next 6 months or so, by at least 10-15 per cent. Once the metro and other infrastructures gets completed, property prices can grow even further,” says Ankur Budhiraja, AB Corporations, a local real estate agent. 

Ghaziabad might be considered as the city to invest. Under the smart city tag, it will definitely progress and being close to Delhi will boost its prefer-ability amongst buyers in months to come. Make an investment when the property prices are still lower and make the most of the opportunity.

Source: Magicbricks 

305 cities identified under 'Housing for All' scheme

The government has identified 305 cities and towns across nine states for implementation of its ambitious 'Housing for All' scheme.

As many as 305 cities and towns have been identified in nine states for beginning of construction of houses for the urban poor under the scheme, said a senior Housing and Urban Poverty Alleviation (HUPA) Ministry official.

The HUPA Ministry would provide assistance of over Rs 2 lakh crore over the next six years for enabling two crore urban poor own their own houses.

The selected cities and towns are in Chhattisgarh (36 cities/towns), Gujarat (30), Jammu and Kashmir (19), Jharkhand (15), Kerala (15), Madhya Pradesh (74), Odisha (42), Rajasthan (40) and Telangana (34).

Under the 'Housing for All' initiative of the central government, named as Pradhan Mantri Awas Yojana and launched by Prime Minister Narendra Modi on June 25 this year, two crore houses are targeted to be built for the poor in urban areas by year 2022, coinciding with 75 years of Independence.

Besides these nines states, the official said, six more states have signed Memorandum of Agreement (MoA) with the Ministry committing themselves to implement six mandatory reforms essential for making the housing mission in urban areas a success.

The states that have so far agreed to implement the mandatory reform measures are Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Jammu and Kashmir, Jharkhand, Kerala, Madhya Pradesh, Manipur, Mizoram, Nagaland, Odisha, Rajasthan, Telangana an and Uttarakhand.

By signing the MoA, the states agreed to make necessary changes including doing away with the requirement of separate non-agricultural permission in case land falls in residential zone earmarked in Master Plan of city or town and preparing or amending Master Plans earmarking land for affordable housing, among others.

Other reforms include putting in place a single-window and time-bound clearance system for layout approvals and building permissions, doing away with approvals below certain built-up area size in respect of economically weaker sections and low income groups.

Legislating or amending existing rent laws on the lines of the Model Tenancy Act circulated by the Ministry and to provide additional Floor Area Ratio (FAR)/Floor Space Index/Transferable Development Rights (TDR) and relax density norms, for slum redevelopment and low cost housing are other reforms to be carried out by states as per the MoA.

Under the urban housing mission, the Centre will provide an assistance in the range of Rs 1 lakh to Rs 2.30 lakh per unit under different components of the scheme including in-situ redevelopment of slums using land as resource, credit- linked subsidy scheme, affordable housing in partnership, and beneficiary led individual construction/improvement. 

Source: The Economic Times

Buyers in Noida prefer properties within Rs 20-40L

Five years ago, the realty market of Noida looked very different than what it looks now. Over these five years, the real estate sector has witnessed a surge in property supply. However, does this mean that the market gives what the consumer demands? Let’s find out.

Housing Sentiment Index (HSI), Apr-Jun 2015, a joint initiative by IIM-B and Magicbricks, states that Rs 20-40 lakh category is the most preferred price range. About 31.5 per cent respondents are looking to buy property within this range followed by 19 per cent for the Rs 40- 60 lakh category.

Does property supply match buyers’ demand? Not really! According to Magicbricks' data, maximum properties available (44%) in Noida are priced at Rs 50 lakh and above.

The major reason behind buyer preference towards lower budget category is because of low income. As per the report, about 53 per cent respondents earn less than Rs 10 lakh per annum, while another 26 per cent earn between Rs 21-30 lakh yearly.

Let’s understand this from an example.

If a buyer has an annual income of Rs 10 lakh it means he earns close to Rs 80,000 monthly after necessary deductions. Experts advise that 30 per cent of the take-home salary should be invested in a home. Even if the buyer stretches his budget and is ready to spend 50 per cent of his/her monthly salary on loan, it is not enough.

Firstly, he will not be eligible for the full loan amount. In case he is eligible, then there are other expenses such as stamp duty and registration costs which add to the value of the property. Therefore, the Rs 20-40 lakh category is highly preferred compared to the other ranges.

Source: Magicbricks