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.