99-year lease of lands to industries welcomed

The government’s decision to allot land to industries on lease for 99 years is being welcomed on the ground that it will bring down the capital costs substantially.

It is considered a timely policy intervention that helps prospective entrepreneurs in setting up their units in Sunrise State without being worried about the exorbitant land costs.

Hitherto, the government used to sell land to industries through Andhra Pradesh Industrial Infrastructure Corporation (APIIC) but it has recently adopted 99-year lease as the preferred model of allotment to discourage real estate business.

The lease proposal was incorporated in the Industrial Development Policy 2015-2020 that was released by the Department of Industries and Commerce through G.O Ms No. 36 on April 29. The government has initially planned to fix the lease period at 33 years but has made it 99 to ensure a stable land use policy.

The Confederation of Indian Industry (CII) Vijayawada Zone has late last year recommended to the government to give land on lease and suggested that a delay tax of 10 per cent of the land cost should be imposed every year till the commencement of commercial production.

The new policy envisaged outright sale of land to industries coming up with investments exceeding Rs 100 crore and for projects whose gestation periods are more than five years.

Good initiative

There are some other exceptions to giving out the lands for lease.

Welcoming the government’s decision, CII Vijayawada Zone Vice-Chairman G. Venkateswara Rao toldThe Hindu that it was a good initiative and hoped that the change of governments over a 99-year period would not create uncertainties in the land allotment policy.

There should be no scope for different interpretations of the same policy, he said.

Andhra Chamber of Commerce and Industry Federation secretary Ch. R.K. Prasad said it was an excellent opportunity for companies with small budgets to take lands on lease.

The government will get lease rentals and the ownership of land will be with it at the end of lease period. Besides, companies will be most probably permitted to transfer the lands to other firms in the event of sale of their businesses.

SOURCE: The Hindu

Real estate bill: Union law minister slams Rahul

Union minister for law and justice D V Sadananda Gowda said the provisions in the amended Real Estate (Regulation and Development) Bill are favourable for common man. 

Gowda said here on Sunday that Congress vice-president Rahul Gandhi should not oppose it in its initial stage. "It is not fair to oppose a Bill in the initial stage. Let him (Rahul Gandhi) debate the issue inside the Parliament. There is no advantage in speaking about the Bill in public. The amendment, in no ways, is helpful for real estate industrialists. The government is bringing amendment with an objective of making the law favourable for common man," he said and added that Rahul Gandhi should come out of his "immature politics". 

"Rahul Gandhi should try to learn what position he is holding in his own party. Congress is indulged in malign politics. People of the country will not tolerate this. Their political activities are not moving on right path," Gowda charged.

SOURCE: Times Of India

High time for Delhi to get seismic smart

The India Meteorological Department, Ministry of Earth Sciences, Government of India has notified that Zone 5 is the highest risk zone whereas Zone 2 is the lowest. At least 38 cities in India are in the moderate to very high earthquake risk zone. Delhi being in zone 4 is a wakeup call to its residents to evaluate the ability of their home to withstand an earthquake. Everyone in the city needs to get seismic smart and understand the need of retrofitting the structures.

• Get seismic smart: Since one cannot predict nor prevent earthquake, it is best to understand the methods to make sure your home is safe and secure. Certain areas are more prone to earthquakes therefore find out the seismic zone of your locality. Find out ways to implement the necessary retrofitting of buildings.
  

• What is retrofitting: Seismic retrofitting is the modification of an existing structure to further make them more resistant to ground motion, earthquake or soil failure. This technique not only makes the structure resist intensive earthquakes but also lowers the risk of loss of property and life.
  
• Get ready to retrofit – Some of the old colonies in Delhi consist of ancient buildings which when constructed did not have any codes or laws in place. Things have changed. Today, earthquake-resistant building codes are in place which needs to be adhered to by builders. Under the procedure of retrofitting, bracing is added and the home is bolted with its foundation so as to strengthen the critical connections within a home. A home that is retrofitted is strong enough to resist greater earthquake forces.
  

Retrofitting your home in the right way
Before starting with the seismic retrofit ensure your property is inspected thoroughly by the structural engineer. Hiring a professional will help you evaluate the risk level of the building and will further ensure the retrofit is done right. There are various types of seismic improvements for a home which can be determined once the engineer has inspected the property.

Before you hire a retrofit professional or a structural engineer, be sure they are licensed and have a good reputation in the market.

SOURCE: Magicbricks

SECTOR CHEERS FOR ITS PILLARS ON LABOUR DAY

     

Real estate sector is one of the biggest employment generating sectors in our country. It generates high level of direct employment opportunities at different levels in addition to stimulating the employment prospects in associated industries as well. Due to the fact that real estate sector has tremendous potential and has extensive employment generating capacity; it is one of the biggest contributor to India’s GDP. Real estate sector heavily relies on the work force. Manpower is one of the biggest contributor and sturdiest pillar of realty sector. The outstanding role which the workforce has played in the success of para mounting real estate segment is commendable. For the same, realty sector has always given a supporting hand to its workforce. Facilities and services are given to its employees of all classes to make the working conditions better and enjoyable for them.

     To improve the quality of life and working conditions and to mark homage to the workers for their efforts made to strengthen the well-being of the country, Labour Day is celebrated annually on 1st May every year across the globe. Labour Day, celebrates the achievements of workforces around the world. The day was first celebrated in 1882 and since then it is officially celebrated as World Labour Day. Real estate has great contribution of manpower in its success and growth and the place this sector has attained today is a lot due to the hard work of workforce associated with it.

   Workforce or human capital is the main engine of any industry or sector. Real estate sector is no exception and this is the reason that realty sector has always given extra care and attention towards its employees. This not only helps in improving the quality of lives of its employees but it is also a great help to society too. Realty firms make constant efforts and provide facilities to its employees of all levels ranging from top and middle level to labour class to improve their working conditions and to uplift their status too.  Various realty firms organize free health check-up camps on sites for its laborers and their families. They are sometimes also allowed to build temporary homes on sites for their stay. Schools are built to provide education to children of laboures as these lower segment people might not afford to send their children to schools. Free education and books are provided to their children. Not just this, these laboures are donated clothes and food at times. During summers they are provided free water/fluids and seasonal fruits/vegetables to keep cool. Sheds are also built to allow them some rest during working hours. During winters blankets and woolens are distributed among workers. Raincoats and umbrellas are provided during monsoon. Apart from this, many other facilities are given like masks to prevent inhaling dust, helmets for safety, aprons and gloves to wear while working on construction sites, organizing workshops and training sessions etc.

   The manpower in offices too are given due attention. They are given facilities like bonus and incentives on festivals or on performance basis. Ladies are provided cab facilities keeping in mind their safety. Working conditions are made better by providing neat and clean environment. Many developers also give special discounts to their employees on purchase of property in own projects. All these small steps and measures not only make the employees happy but also develop trust and loyalty towards their organizations. These measures help in retaining employees and building long term relationships with them. The sector would also like to express its gratitude towards its workforce for their continuous support:

Mr. Rajesh Goyal, MD, RG Group, says; “Manpower is very important in real estate sector as this sector heavily relies on it. Labour that works 24x7 outside in extreme conditions like rain, heat, etc. is appreciable. Raw materials are only a basic element of real estate but the work done by labours and the way they do it is remarkable. We would like to convey our heart full thanks to the labours of RG Group whose work is praiseworthy”.

Mr. Arvinder Singh, MD, Agrante Realty Ltd. says “For us, labours are the first price. We would like to take this opportunity to thank all the employees working with us and across the globe as well. Without their insight, energy and continuous support, the work of construction in real estate sector would not have kick-started and neither would have reached fruitfulness.”

Mr. Deepak Kapoor, President CREDAI - Western U.P. & Director, Gulshan Homz says “We understand the importance of our employees and for this we always try to do extra bit from our end so as to keep them satisfied. We acknowledge their hard work and their efforts which make us stronger together as a family. Today, tomorrow and each day is their day and on this special occasion we thank them for their constant support”.

Mr. Rupesh Gupta, Director, JM Housing, says; “Each and every structure that stands tall today is because of our highly dedicated labour and its expertise. We would like to thank them for their sincere efforts and thorough hard work that has allowed us and our work to be known to public. We believe in building long lasting relations with them as we all work as a team and one family”.

Mr. Vikas Bhasin, MD, Saya Homes, says “A company or a business is successful only when its manpower delivers. It is a team that performs and never an individual. All the employees are precious to us and we are grateful for their efforts they put in to help us grow. Today we celebrate their success and efforts; and hope for their best in future as well”.

SOURCE: http://iccpl.blogspot.in/2015/05/sector-cheers-for-its-pillars-on.html

Smart cities to attract over Rs 2-lakh cr investments: Venkaiah Naidu

A minimum investment of Rs 2 lakh crore will flow in over the next five years for development of urban areas across the country, with nearly half the amount coming in from state and local bodies, Union Minister Venkaiah Naidu said today. 

The Union Cabinet yesterday approved the government's flagship 100 smart cities project and the new urban renewal mission with a total outlay of about Rs 1 lakh crore. 

"A minimum investment of over Rs 2 lakh crore would flow into urban areas over the next five years since states and local bodies would mobilise matching resources ranging from 50-66 per cent," Naidu said today.

The Minister for Urban Development and Housing further said the initiative would help make the urban life confortable given the large-scale migration taking place from rural areas. 

"Urbanisation is a reality and you can't reverse it. People are migrating from rural areas because of five needs, education, entertainment, employment, economic opportunities and enhanced healthcare, which are mostly concentrated in urban areas. So we have to make urban life comfortable and liveable and useful to people...," Naidu said.

Urban areas have issues like pollution, congestions, encroachments and urban governance is in a mess. "We have to think in terms of rejuvenation of our urban areas and bring back the governance," he added.

"The smart cities are the flavour of the season. To make smart cities you need smart leadership," Naidu said while delivering the keynote address in a session at 'National Leadership Conclave' organised by All India Management Association. 

The Cabinet had approved Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation yesterday. 

Smart cities intends to promote adoption of smart solutions for efficient use of assets, resources and infrastructure with the objective of enhancing the urban life and providing a clean and sustainable environment, Naidu said. 

"While a number of countries have expressed interest in developing the cities, no plan would be made without people participation and consent," he added.

In addition, substantial private investments would be mobilised by states and urban local bodies through PPP model as required to meet the project costs, he added.

Union cabinet had yesterday given nod to government's flagship 100 smart cities project and the new urban renewal mission with a total outlay of about Rs 1 lakh crore. 

Replying to a question on the passage of the Real Estate (Amendment) Bill, Naidu said: "We do not have majority...I am talking to people, but it is important that the real estate development bill should be passed as soon as possible. The government is trying for this...We will take it forward in the coming days." 


SOURCE: The Economic Times

Surviving earthquake: Ask for seismic safety

“Earthquakes don’t kill, the quality of construction does.” This statement by V Suresh, vice chairman of the National Building Code of India 2015 is extremely apt. In the light of the fear that the devastating Nepal earthquake has raised in the minds of property users across India, I thought it would be a good idea to address this concern of users and buyers. Consumers remember and fear earthquakes when one has occurred.  We have seen this in the aftermath of the Latur, Uttarkashi and Bhuj earthquakes.

While withstanding a high seismic magnitude shock is always a challenge, there are many ways in which you can ensure that the house you buy is as safe as possible. As an aware consumer it is important to understand that you are well within your rights to ask for seismic safety. The National Building Code, a guideline document prepared by the Bureau of Indian Standards has laid down detailed guidelines for safety of built structures during an earthquake. These need to be incorporated in Building byelaws of cities so that architects and developers in the city are mandated to adhere to these.

Magicbricks has been talking to a series of seismic experts, planners and various other stakeholders to help users assess how safe they are when it comes to quake and your city. The statistics are alarming. An expert assesses that 70 per cent of the Delhi NCR is not built to withstand high intensity quakes. With city authorities unable to check rampant overbuilding, mostly unengineered, quakes are likely to be great levelers. However, the good news is that retrofitting or improvements to structures post construction can ensure safety of structures, especially in cities like Kolkata or Mumbai where the buildings are over 50-80 years old. You need a structural engineer to assess the property before being able to assess the need for retrofitting.

However, if you are buying property in your city, make sure you ask the right questions to your developer. Credai President Getamber Anand has assured that after the Bhuj earthquake, the revised BIS code 1893 is applicable for safety of building up to 30 storeys. As a consumer all you have to do is to ask the developer whether the standard is being adhered to.

The good news is that we have good standards in the country. The bad news is that Indian cities, such as Delhi and Mumbai, are in seismic zones 4 and above. The other bit of bad news is that we have not been terribly bothered as a country about implementing safety standards. The Delhi government’s announcement that buildings will be surveyed for safety is a welcome move. But as citizens and consumers we need to be more aware as well.

Magicbricks has been publishing a series of articles on seismic safety. Watch this space over the weekend, when we pan out across the country and bring the views and reactions of experts from across sectors to allay needless fears and inform citizens about what they can do as users groups to ensure their own safety when the ground shakes. After all the mighty Himalayan heave and over 80 aftershocks have been a warning to cities across the subcontinent that they cannot take their safety for granted.

SOURCE: Magicbricks

Advantage builders in revamped real estate bill, Oppn cries foul

Builders appear to have got a better bargain than customers in the revamped Real Estate (Development and Regulation) Bill introduced by the NDA government in the Rajya Sabha on Wednesday.

The previous UPA government had drafted the bill two years ago for a law to primarily regulate the country’s booming housing business rife with complaints from buyers.

Unhappy with the changes made to the 2013 bill, the Opposition now accused the BJP-led government of being “pro-builder”, adding to its anti-farmer barb over the proposed land acquisition law that will make it easier for industry to buy farmland. It said bill’s redraft should be sent to a parliamentary select committee for review.

The government clarified that the bill protects interests of buyers without throttling the real estate sector.  “It is a fine act of balance between the two,” a Union minister said.

The draft, however, reveals builders will enjoy more concessions than buyers. It allows builders to deposit only 50% of the money collected from prospective buyers in an escrow account as against 70% in the UPA-era bill introduced in the Upper House of Parliament in 2013.

Opposition parties alleged that the change would delay projects because builders might misuse buyers’ hard-earned money or spend in projects other than the one the cash was meant for.

But Manoj Gaur, president of the Confederation of Real Estate Developers of India’s NCR wing, welcomed the change, which he said would boost the sector’s health.

The government had also provided an escape route to builders if they fail to deliver flats or apartments within the promised deadline — the number one complaint of buyers.

Builders cannot be held liable for any delay if authorising agencies fail to give statutory clearances on time, such as completion certificate and other approvals. In such cases, the bill says builders can seek extension.

Ashish Kaul, an RTI activist and Gurgaon-based home buyer, said the change would open more avenues for builders to cheat buyers on flimsy grounds.

Besides, a key change in section 14 of the proposed law could lead to a buyer not getting what was promised to him. The bill of 2013 prohibited any alteration in structural plan offered to the buyer.

The new bill allows alterations, but it should be authorised by an architect or engineer and the buyer has to be informed about it. Kaul alleged that buyers could now get flats different from the original design, with a spiked price for a bigger “super-area”.

SOURCE: Hindustan Times