Home prices in metros rise over 50 per cent in 4 years

Ireo Skyon, Gurgaon

Home prices have appreciated by an average 66% in Mumbai, 52% in Gurgaon and 46% in Bangalore over the past four years, with some pockets growing nearly 100%, say property consultants, belying hopes of fall in property prices.

A limited supply of clear land, demandsupply mismatch and rising cost of inputs like steel, cement and labour have contributed to the rise in prices in most locations. “On the demand side, affordability is getting better as salaries have increased by at least 10-12% per annum in this period helping home buyers take a decision,” says Niranjan Hiranandani, co-founder & chairman of Mumbai-based Hiranandani Group.

In addition, corporate investments have turned uncertain, and therefore, investors have moved to real asset classes like real estate and gold, which have became more attractive and offered better returns.

After the Lehman crisis in late 2008, property markets started to recover by 2010, but at that point, there was a huge demand-supply mismatch as many earlier projects got stalled due to the slowdown. This pushed up prices in the ensuing period, says Ajay Chandra, managing director of Unitech.

Read more: The Economic Times

Gurgaon’s master stroke for 2031 to drive realty

After the recent notification of the final development plan of Gurgaon-Manesar Complex 2031, the property markets of Gurgaon and its emerging satellite cities like Manesar, Dharuhera, Sohna, etc are expected to go northward. Additionally, the reserved Special Economic Zone (SEZ) too has opened itself to attract investment opportunities through upcoming residential projects. The plan is aimed at catering to the needs of an estimated 42.50 lakh populace by the year 2031 and is likely to create opportunities for realtors operating in the region.

Hailing the plan, some realty experts have already started opining that the National Capital Region (NCR) could soon be redefined as NCT (National Capital Territory). The think tank behind the final development plan of Gurgaon-Manesar Complex 2031 has estimated that more than 12 group housing projects and two townships would come up in the above mentioned residential sectors. This will create as many as 8,000 residential units and plots in these sectors. The initial work has begun as Haryana Urban Development Authority (HUDA) and some private builders have already developed a residential area of about 8,000 hectares in the various residential sectors.

Read more: The Economic Times

Economy

China, India to be largest investors among developing nations: Report

China and India would together account for 38 per cent of the global gross investment in 2030. All this would change the landscape of the global economy, Kaushik Basu, the World Bank’s Senior Vice-President and Chief Economist, said.

India and China are expected to be the largest investors among developing countries by 2030, with the two Asian giants accounting for 38 per cent of global gross investment, a World Bank report said today.

“Among the developing countries, China and India are expected to be the largest investors, with the two countries together accounting for 38 per cent of the global gross investment in 2030. All this will change the landscape of the global economy, and GDH analyses how,” said Kaushik Basu, World Bank’s Senior Vice-President and Chief Economist.

According to the latest edition of the World Bank’s Global Development Horizons (GDH) report, by 2030 half the global stock of capital, totalling $158 trillion, will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock.

The developing countries’ share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report titled ‘Capital for the Future: Saving and Investment in an Interdependent World’.

Read more: Business Line

Infrastructure

India offers unlimited investment opportunities in infra: P Chidambaram

Finance Minister P Chidambaram has said that India offers “unlimited” opportunities for investment in infrastructure sector as the country needs more roads, airports and seaports.

“What I am telling the investors here and the government here is that there is a huge opportunity in India, especially in infrastructure,” said Chidambaram.

“There is no other country in the world which requires so many thousand kilometres of road, so many airports, so many seaports, so much more capacity of steel, mining, power. So I think the opportunities are unlimited,” he said.

Referring to rate of price rise, he said, “inflation has come down sharply in the last two months and I think numbers for April is doing better. In fact, we are talking about core inflation having reached a zero level.”

Inflation, based on the Wholesale Price Index, fell to 41-month low of 4.89 per cent in April on account of decline in prices of food items, including fruits and vegetables. It stood at 5.96 per cent in March. In April, 2012, it was 7.50 per cent.

Read more: The Economic Times

NRIs

NRI guide to property investment in India

NRIs have always been opportunistic in terms of investment avenues and returns. The government regularly comes up with new schemes to attract more and more investments from abroad. Real estate is one of the sectors which always grabs the attention of non-residents.

The Reserve Bank of India has also given permission to all non-residents who possess Indian passports as well as people of Indian origin to put their money in the real estate sector (residential as well as commercial property). The number of NRIs investing in real estate is increasing fast as the value of the rupee is depreciating and real estate offers better returns. A place in the homeland usually gives a sentimental support and sense of security, which is the other reason of investment in real estate by NRIs.

The RBI along with the Foreign Exchange Management Act (FEMA) has become lenient in terms of rules and regulations for non-residents who are looking for an investment in real estate. They are not only simplifying the rules but also providing the benefit of repatriation of the capital involved. The government is planning some investment growth activities through their investment promotional council, to create an environment appropriate for non-residents to put money.

Read more: NDTV

Telecommunication

India to deploy Rs.17,500 crore to boost local telecom products

India has proposed to set up three funds with a combined corpus of Rs.17,500 crore to boost local research and manufacturing of telecom products as it seeks to cut dependence on imports at a time when the current-account deficit has widened to a record and also to reduce security concerns posed by such imports, particularly from China.

The government will initially allot Rs.5,000 crore to the Telecom Research and Development Fund, Rs.2,500 crore to the Telecom Entrepreneurship Promotion Fund and Rs.10,000 crore to the Telecom Manufacturing Promotion Fund during the 12th Five-year Plan ending March 2017, according to an internal document of the department of telecommunications (DoT) that has been reviewed by Mint.

Widening trade and current-account deficits and security concerns about cheap equipment imports from countries such as China have prompted the government to look for local alternatives. Indian companies that import telecom network equipment from China’s Huawei Technologies Co. Ltd and ZTE Corp. require security clearances from the government.

Read more: Mint

Internationally Renowned Lifestyle Designer Tony Chi Makes his First Appearance in Gurgaon for his Debut Project in India

Tony Chi

Acclaimed designer Tony Chi is a study in contrasts. Humble, quiet, thoughtful, contemplative and yet, at once, bold, vibrant, loud, combative, unrelenting passionately visionary, and animated with a limitless energy. He is the kind of man who upon arrival, instantly fills up a room with his exuberant and infectious grasp of all of life’s possibilities. He is indefinable and his talents defy convention. In his career spanning nearly three decades, he has been a creator, a developer, an operator, amongst a myriad of countless endeavours all of which define the very finest things of life. He is a consummate creator and curator of life’s most exceptional experiences. A life in the making.

His arrival in Gurgaon launches his luxurious expression of elegant 21st century living with the Grand Hyatt Residences at the Ireo City complex in Gurgaon. The Grand Hyatt Residences in Gurgaon’s Golf Course Extension Road area, are a first of their kind branded residential project that brings together the vision and expertise of world-leading names in architecture, design and hospitality. While TonyChi & Associates are envisioning the interior design, Ireo has teamed up with Foster + Partners for the architecture and Hyatt Hotels Corporation to provide facilities, services and amenities for Grand Hyatt Residence owners. Tony Chi’s much admired designs will grace the interiors of residences, apartments and Grand Hyatt hotel at this 29-acre mixed use project.

Read more: DNA India

Economy

India’s economic growth expected at 5.5-6.5% in 2013: Moody’s

Indian economy is expected to pick up and grow in the range of 5.5-6.5 per cent in 2013 even though government steps for new investments have been “relatively small in scope”, Moody’s said today.

Citing cautious private sector and relatively high inflation, the global rating agency also said that the country is struggling to boost investment and economic growth.

Based on its central forecast scenarios, Moody’s Investors Service has estimated that Indian economy would see 5.5-6.5 per cent growth in 2013, as against 3.9 per cent last year. The growth is projected to improve further to 6-7 per cent in 2014, it noted.

According to Moody’s, one percentage point range in the forecast is to “avoid spurious precision” and to focus on significant changes that could potentially influence rating decisions.

“Despite the recent decline in wholesale price inflation, CPI inflation remains in double digits, which points to pricing pressures elsewhere in the economy.

“As such, while GDP growth is likely to pick up during 2013, it will probably take at least another year or two before the economy matches the pace of expansion seen during 2010 and 2011,” Moody’s said in a report.

Read more: Financial Express

Global firms bet on India’s spending power

In the biggest recent deal, Unilever (ULVR.L) (UNc.AS) is spending up to $5.4 billion to lift its stake in its Indian subsidiary, Hindustan Unilever (HLL.NS), the country’s largest consumer goods maker.

Inbound M&A into India totals $9.86 billion this year, the highest in Asia, Thomson Reuters data shows, pointing to growing confidence among overseas firms in the potential of a 1.2 billion-strong consumer market.

“India as a country is under-consumed. That is changing,” said Amitabh Mall, a partner at the Boston Consulting Group.

For now, however, an economy in the doldrums is poised for only sluggish recovery. While long-crippling inflation is finally easing, a general election due next year and fractious parliamentary politics have stalled many economic reforms.

In 2012, foreign direct investment into India dipped about 7 percent to $29.3 billion. By comparison, FDI into China saw a decline of about 10 percent, but it attracted $111.6 billion.

Read more: Reuters

Transportation

Qatar Airways seeks more traffic routes from India

Qatar Airways has sought more traffic routes and seats from India to serve two-tier cities, a top airline official has said.

Qatar Airways, one of the world’s fastest growing airlines, has sought more traffic routes and seats from India to serve two-tier cities, a top airline official has said.

Akbar-Al-Baker, the Chief Executive Officer told the PTI yesterday that Qatar Airways has exhausted all the traffic routes allotted by the Government of India.

He was here on the sidelines of “Educate a child”, a global education program sponsored by the airline and Jazz@ Lincoln Center, New York.

“We hope Indian Civil Aviation authorities will give additional access to other Gulf carriers in India and if that happens we would like to operate more flights.

We would like to operate more flights out of India to cater to the demands of global traffic,” Al-Baker said.

He said India is a country with 1.3 billion people and has the highest number of affluent and educated middle class. It has economic prosperity and large number of people travels overseas.

Read more: The Economic Times

Telecommunication

Videocon to launch 4G services in 6 circles

Videocon Mobile Services would launch high speed data LTE(Long Term Evolution) in 6 circles namely viz, Gujarat, Haryana, Madhya Pradesh, Chattisgarh, UP (East & West ), Bihar & Jharkhand by the end of this fiscal year.

Addressing the media here in Chandigarh, Videocon Telecommunications Ltd, Director & CEO, Arvind Bali said, ” The spectrum won by us in the auction last year for 6 circles was paired and liberalized, ie, the spectrum can be used to roll out Next Generation Networks and Services by adapting a highly spectrally efficient 4G technology FDD LTE. This enables operators to gain more efficiency using the same spectrum resources. Next-generation network technologies enable about 30 times more data capacity than a traditional 2G network, allowing telcos to extend the lifespan of existing spectrum assets and reduce the amount of additional spectrum required. We are planning to roll out complete 4G products & services across the newly won circles by the end of this fiscal year.”On being about the finances, he mentioned that it is being currently worked out.

Read more: Business Standard

Energy

India-U.S. Clean Energy Partnership Mobilises $1.7 Billion

Reflective of the expanding Indo-U.S. partnership in clean energy sector, India and America have managed to garner $1.7 billion from the private sector to finance clean energy initiatives, a top Obama Administration official has said.

“We are also expanding our bilateral cooperation on clean energy through the U.S.-India Partnership to Advance Clean Energy, or PACE, which has mobilised over $1.7 billion to finance clean energy initiatives,” Assistant Secretary of State for South and Central Asia Robert Blake said in his address to the CEOs attending the 4th U.S.-India Energy Partnership Summit.

“In addition, a $125 million public-private joint research center is being created that will be led by 95 government, research, and private organisations. President (Barack) Obama is taking a leadership role in these efforts,” Blake said.

Read more: Silicon India

Water

Gurgaon Inc Luminous Water Technologies invests in water technology

Known for Luminous Power Technologies, Gurgaon-based business conglomerate, SAR Group has now forayed into the water purification industry. The company will now be also manufacturing Reverse Osmosis (RO) water purifiers and has planned an investment of Rs 500 crore over a period of four years in this vertical.

Founder and chairman – Luminous Water Technologies and chairman, SAR Group, Rakesh Malhotra informed, “Half the investment will be sourced from internal accruals and the other half will come from equity or debt. Out of the total corpus, Rs 200 crore would be dedicated to developing manufacturing facilities and research and development processes. The remaining Rs 300 crore would be invested in engaging the consumers with the brand.”

Read more: The Economic Times

NRI Investment in Real Estate

Ireo Skyon, Gurgaon

Non-Resident Indians should now think of making investment in India in the Real Estate Sector. If Non Resident Indians invest today in the Real Estate sector, surely it will bring higher appreciation in the years to come. Before venturing into investment in Real Estate in India, the Non Resident Indians in particular should take care of the provisions contained in the Foreign Exchange Management Act as well as the Income tax Act. A fair knowledge of these two enactments will help the Non Resident Indians to take a wise decision of investment in Real Estate keeping in view the provisions of law affecting such Real Estate Investment.

Under the Foreign Exchange Management Act, an Indian citizen who resides outside India is permitted to acquire any immovable property in India other than agricultural/plantation property or a farm house. Thus, it is very clear that Non-Resident Indians enjoy almost all the privileges which are enjoyed by a resident Indian with reference to purchase of immovable property in India. Under the above mentioned Act. An Indian citizen who is a resident outside India popularly known as Non Resident Indian has the permission for the following activities with reference to acquisition and transfer of immovable property in India..

Read more: The Times of India

Rising aspiration, values drive property market

Globalisation, a growing economy and awareness has encouraged even the modest of families to aspire to own a home, and once invested probably look for a second one or upgrade to a superior abode. Another reason for the rise in demand for housing is the falling average age of home buyers — from 43 years in 1999 it dropped to 33 in 2010. This changing demographic profile is also transforming housing consumption patterns.

An interesting pattern in the aspiration levels of the consumer was observed at the Real Estate Dialogue (RED) on Assessment of Consumer Demand held by Magicbricks.com. As the spending power of the consumer grows, his aspiration increases. “The urge to buy and upgrade to a better lifestyle is upfront. With an increase in purchasing power, the consumer looks for a better environment; he upgrades from a colony to an apartment and then to a plotted development,” said Kumar Bharat, Director, BCC Infrastructure, at the meet.

Read more: Magic Bricks

Business

India to be preferred option for Japanese companies

India will soon overtake China as the preferred destination for investment by Japanese manufacturing companies. According to Japan Bank of International Cooperation (JBIC) CEO and executive managing director Hiroshi Watanabe, the gap between China and India in attracting Japanese investment has reduced significantly in the last couple of years.

JBIC conducts an annual survey of Japanese companies’ preferred investment destination every August.

Watanabe told TOI that the latest survey on overseas investment by Japanese manufacturing companies showed that India ranked as the second most preferred investment destination after China. However, Japanese firms have been steadily reducing investment in China.

Read more: The Times of India

Transportation/Infrastructure

Stronger viaducts for Metro Ph-III

After quality concerns over the construction of the Airport Metro Express, Delhi Metro seems to be getting extra cautious about the civil work in Phase III. It has recently approved new technologies for the super-structure, that is, the viaduct of the track. Apart from the changes in the design of the viaduct, DMRC is also strengthening the spans or segments that make up the track while making the piers easier to maintain.

“Based on the past experience and the alignment of phase III, some of the elements of the super structure have been designed on new lines. New technologies available are being used in the construction of the new phase,” said a DMRC spokesman.

The biggest change will be in the way the parapet is joined to the girder or the underbelly of the corridor. “DMRC uses two types of super-structures, which is the box girder and the U-girder. In Phase III, box girders will be used predominantly, and it’s this which has been modified with the new technology,” said a Delhi Metro official.

Read more: The Times of India

Airlines eye higher revenue from unbundling charges

Indian airlines are banking on the government’s decision to allow them to charge for services such as preferential seating, meals, use of lounges and baggage, known as unbundling, to increase their ancillary revenue in a weak economy.

On 30 April, India’s aviation ministry allowed airlines to unbundle charges for services including drinks (except drinking water), carriage of sports equipment, musical instruments and items of value, a month after the government cleared a proposal by AirAsia Bhd, the Tata group and Telestra Tradeplace Pvt. Ltd to start a domestic airline.

Malaysia’s AirAsia is among low-cost airlines that derive a significant portion of their revenue by charging for services including excess baggage, meals and seat preferences.

In 2010, the world’s top 10 “ancillary revenue earning airlines” earned between 14-29% of total revenue from à la carte services, Ram Tamara, director, Nathan Economic Consulting India Pvt. Ltd, said. AirAsia X, a franchise of AirAsia Bhd, earned the largest amount of ancillary revenue per passenger of €29.45 in 2010.

Read more: Mint

Power

India bucks the trend in power development activity in Asia in March quarter

India recorded an unprecedented 46.5 per cent growth in new power capacity in the first quarter ended March this year, according to Platts, a global provider of energy price assessments. This comes at a time when power development activity in the Asian region tumbled 12 per cent between January and March 2013 against the year-ago period, it said.

Power development activity in Asia in the first quarter totalled 62,743 megawatts (Mw), Platts said in its newsletter, Platts Power in Asia. “This was 12 per cent lower than in the same period of 2012, but was well up on the prior quarter – in fact, more than a fifth higher than in the last three months of 2012,” said the editor of the newsletter, Martin Daniel.

He, however, added the announcement of 21,000 Mw projects in Asia during first quarter, almost double that of the fourth quarter of 2012, appeared to indicate an improvement in developer confidence. In line with the overall boost to investor confidence, India added a record 10,768 Mw of fresh power capacity between January and March this year against 7,349 Mw during the same period in 2012, according to the latest data from the Central Electricity Authority, the planning wing of the power ministry.

Read more: Business Standard

Gurgaon

MCG to go for ward-wise contract for a cleaner Gurgaon

In a move that would perhaps guarantee a cleaner city, the Municipal Corporation of Gurgaon ( MCG) has decided to award sanitation contract ward-wise instead of the present method wherein these contracts are awarded zone-wise. There are a total of four zones and 35 wards in the municipal corporation area.

According to senior officials, this paradigm shift is taking place in order to ensure more sanitation agencies and workers can be roped in to clean the city. This process would begin from zone-IV in which there are six wards – 25, 26, 27, 28, 30, 52. The technical bid for this zone will be opened on May 25. In fact the process to award sanitation contract for all the four zones started in April last year and while the contracts for zone I, II and III were awarded, the one for zone-IV could not issued due to several allegations of corruption.

Read more: The Times of India

No housing price bubble building up in India: RBI

Ireo Waterfront, located in Ludhiana, Punjab, is a 500 acre township

There is no housing price bubble building up in India, Reserve Bank of India Governor Duvvuri Subbarao said on Monday in a post-policy conference call with analysts.

Subbarao expects liquidity conditions to be less uncomfortable over the next few months due to the winding down of the government’s cash balances as well as the narrowing gap between deposit and credit rates.

He said the central bank’s open market operations (OMOs) were not the preferred tool to inject liquidity, but all options will be used to actively manage the cash situation.

However, Subbarao said liquidity is expected to be in deficit mode over the next few months, and that the central bank would prefer it to be in deficit as there are upside risks to inflation.

In a teleconference with analysts, the central bank chief also said the RBI does not intervene in forex markets to manage liquidity. RBI does not have a target for consumer price index inflation, Subbarao said, but added the central bank considers both wholesale and consumer inflation while framing policies.

Read more: The Economic Times

M&As show India is still hot spot for foreign investors

Despite concerns on the macroeconomic front, it seems like foreign companies are reviving their interest in India. Not only has there been a surge in foreign institutional investors’ interest in India’s equity markets this year, but increasing merger and acquisition deals in India are also reflecting investor optimism.

In the last five months, FIIs have deployed $11.8 billion in Indian equities against $8-6 billion in the year-ago period as reallocation of global funds has helped the Sensex to trade at a forward price earnings multiple of 12.

Even inbound investments into India such as Qatar’s Rs 6,800 crore investments in Bharti Airtel, global consumer-goods giant Unilever’s additional 22.5% stake buy in its Indian unit Hindustan Unilever, Abu Dhabi-based Etihad’s 24 percent buy in Jet Airways and parent GlaxoSmithKline’s $900 million investment in its India-listed subsidiary GlaxoSmithKline Consumer Healthcare suggest that long-term investors are still bullish on India.

Read more: First Post

Real Estate

Real Estate Regulator Bill will see light of the day sooner: RV Verma

Central Registry of Securitisation Asset Reconstruction & Security Interest of India (CERSAI) portal will be open to public view by mid-June, said R V Verma, chairman and managing director of National Housing Bank, a shareholding bank in CERSAI. In an interview with Neelasri Barman he said that they are working to provide a seamless payment gateway system for the individual members of public to enter the site and check on the information relating to the properties they would be transacting in. Excerpts:

The decision on the real estate regulator bill has been deferred by the union cabinet. When can it be expected now?

It’s only a matter of time as this is a critical need and will serve the larger consumer interest and transparency in the sector. This will, in turn, have a number of positive implications including larger flow of funds, better credit availability and lower risk. All this will result in more efficient and transparent pricing and enhanced confidence amongst the lending institutions.

Read more: Business Standard

Infrastructure

Rework on road-widening proposal, RITES told

The officials of Rail India Technical and Economic Services (RITES) Ltd have been asked to rework on their proposal to widen the Ferozepur Road-starting from the Jagraon Bridge till Sidhwan Canal. They have been asked to properly prepare a proposal for the widening of Ferozepur Road and discuss it before May 31.

The team from RITES Ltd was in city today and they held a meeting with Mayor and the MC officials at Zone D office in Sarabha Nagar, here today. The meeting started at 10 am and continued for over four hours (till around 2 pm).

The Ludhiana Municipal Corporation, with the help of RITES Ltd, plans to make Ferozepur Road eight-laned from existing four-lane on priority basis. That is why, for the past some months, officials from RITES are regularly visiting the city. While speaking to The Tribune, Mayor Harcharan Singh Gohalwaria stated that he was not happy with the proposal submitted by RITES. “They should prepare the proposal in a better manner so that the Ferozepur Road can be widened. The kind of proposal they submitted, even our MC engineers can prepare a similar one. As it is RITES, we expect a better proposal from their side,” informed the Mayor.

Read more: Tribune India

Noida plans another bridge over Yamuna to connect with Delhi

With a daily traffic volume of more than 1.5 lakh vehicles proving too much for the two connecting routes between Noida and Delhi, the Noida Authority is looking to construct another six-lane bridge across the Yamuna.

The new bridge, officials said, will run parallel to the Kalindi Kunj bridge near Okhla Barrage and will benefit commuters travelling between Delhi, Noida and Faridabad.

Senior Noida Authority officials confirmed that Pune-based Central Power Water Research Station (CPWRS) has been handed the charge of conducting a feasibility study of the proposed bridge. CPWRS is studying the psite and the final model for the project is expected to be ready in a couple of months.The construction will be completed two years after work begins, officials said.

“During peak hours, there are jams on DND Flyway and Kalindi Kunj bridge. The existing bridge has two lanes on either side, and is clearly insufficient to deal with a traffic volume of close to 1.5 lakh vehicles per day,” an official said.

Read more: Indian Express

Banking

Cheaper ways to cover your loan

When one applies for a loan, he/she is almost immediately offered an insurance policy to cover it. Insurance companies tie up with lenders to offer this product to a borrower, to prevent the family from being burdened in case of an eventuality.

These are called Mortgage Redemption Schemes or Loan Protection Covers. The ones offered by banks typically fall under a group insurance scheme for borrowers of housing or vehicle loans. Mostly, these are single premium term plans. The lender pays the premium to the insurance company as soon as a borrower is sanctioned a loan. And, adds the cost to the borrower’s loan cost, paid in small parts with the equated monthly instalments (EMIs). Such covers offer a sum assured worth the loan amount.

This product is very helpful. However, there can be other options in place of Mortgage Redemption covers.

Says Mumbai-based certified financial planner Pankaj Mathpal, “Buying a (separate) term cover to protect a loan would work out better, even in terms of cost.”

Read more: Business Standard

Moody’s sees India’s sovereign outlook stable, pegs GDP growth at 6%

Apartment Interior at The Grand Arch, Gurgaon

Global rating agency Moody’s has said India’s sovereign outlook is stable and does not warrant any action on the country’s credit rating in the next 12-18 months.

“We feel the outlook (on India) is stable. We do not see ratings movement up or down in the next 12-18 months,” Moody’s Sovereign Ratings VP and lead analyst (India) Atsi Sheth said on the sidelines of ADB annual meet here.

Sheth said Moody’s has already incorporated the possibility of an improvement in India’s growth in its current rating outlook.

In January, Moody’s had reaffirmed sovereign credit rating of India at ‘Baa3′, which indicates investment grade, with a stable outlook. It had, however, cautioned that a high fiscal deficit could pull down the growth in the coming years.

“We expect the downturn will be extended if that is what the world is going through right now. But we do expect that as conditions globally improve, if the domestic situation improves, growth too will see an upward trajectory,” Sheth said.

Read more: Indian Express

India growth story intact, reforms in place, says FM

Finance minister P Chidambaram said on Friday that the India growth story remained intact and the economic and fiscal reforms already in place would help revive growth to robust levels in the months ahead.

Speaking at the India Day function Chidambaram urged investors to look at the tremendous opportunities available in the country and detailed the steps taken by the government to revive growth and investment.

“The Indian growth story is fascinating. . I’m not a great story teller but have a good story to tell… I expect India’s growth to be robust and sustainable. I am confident that it will gather further momentum in the coming years. FDI regime in areas like multi/single brand retail, airlines have been further liberalized and I am confident there will be forward movement in areas like insurance and pensions,” he told delegates attending the 46th annual meeting of the Asian Development Bank.

Read more: The Times of India

Market

Wall Street: S&P 500 closes at record again; financials, Apple lead

The S&P 500 closed at another record high, pushing further above 1,600 as financial shares led the way after Bank of America’s settlement with MBIA.

Apple’s advance helped lift both the S&P and the Nasdaq. Bank of America said it would settle claims with MBIA for $1.6 billion, lifting shares of both companies as well as the S&P financial sector Index, which gained 1 per cent. MBIA shares jumped 45.4 per cent to $14.29 and Bank of America shares rose 5.2 per cent to $12.88.

The day’s gains followed a strong run in stocks since the start of the year. Supportive monetary policies that have kept interest rates low as well as solid earnings have helped to keep the market up. The S&P 500 has gained 13.4 per cent since Dec. 31.

Read more: The Economic Times

Infrastructure

Soon, Gurgaon to get metro link to airport

The long-pending project of connecting Millennium city in Gurgaon with Delhi’s Indira Gandhi International Airport may soon see the light of the day.

The ministry of urban development is likely to call a policy-level meeting next week to finalise the project, said ministry sources. The new line, however, will have no connection whatsoever with the existing Airport Metro express.

“We hope a final decision on the project will be taken at the meeting. The ministry of urban development has suggested four alternatives – general metro, high-speed metro, extension of soon-to-be-launched Gurgaon’s rapid metro and a regional rail transit system – of which the most feasible plan would get a nod,” said SD Sharma, director (business development), Delhi Metro Rail Corporation Limited (DMRC).

Read more: Business Line

Power

Rs 5-lakh cr investment in power generation by FY17: Scindia

Confident of resolving woes of the power sector, Union Minister Jyotiraditya Scindia says that the country’s electricity generation capacity will leapfrog to nearly 315 gigawatts by fiscal year 2016-17 with an estimated investment of about Rs 5 lakh crore.

“Investments are already on stream. All we need to do for meeting this target of power generation is to resolve all the issues faced by the sector. Once these problems are resolved then the investments would be put in place,” Scindia said.

Admitting that all the four main areas of the power sector — generation, transmission, distribution and last-mile solutions — have their own issues, the Minister told PTI in an interview that he is confident of resolving those problems and the required initiatives are being put in place.”Each of these areas have its own characteristics, its own peculiarities, its own issues for which very customised solutions have to be devised,” said the 42-year-old Scindia who took over as the Power Minister about five months ago.

Read more: Business Standard

New distribution and gas pricing policy to boost energy sector

India’s energy sector is preparing for a new regime for natural gas pricing and distribution with fresh norms for allocating the scarce resource and revised prices that makes the business attractive enough for companies to commit risk capital and boost output.

The government proposes to grant the fuel-starved power sector the same priority as fertiliser plants for supply of depleting domestic gas. Currently, fertiliser plants get the top priority, and consequently the maximum natural gas. The change in pecking order can give the power sector enough fuel to generate 2,200 MW from existing plants, if the proposal is approved by empowered group of ministers (EGoM) scheduled to meet this week.

Read more: The Economic Times

IT

Public cloud services market to reach $ 443 million in 2013: Gartner

Public cloud services market in India is forecast to grow 36 per cent in 2013 to total $ 443 million, research firm Gartner today said.

Cloud computing facilitates sharing of technological resources, software and digital information. It operates on a pay-per-use model, helping companies to cut costs as they do not have to invest heavily in infrastructure.

The public cloud services market stood at $ 326 million in 2012, Gartner said in a statement.

Infrastructure as a service (IaaS), including cloud compute, storage and print services, which was the fastest- growing segment, grew 22.7 per cent in 2012 to $ 43.1 million.

It’s expected to further grow 39.6 per cent in 2013 to $ 60.2 million, Gartner said.

Read more: The Economic Times

NRI

Indian embassy issues fresh guidelines for Overseas Citizens of India card holders

The Overseas Citizens of India card holders, while travelling to India, must carry the OCI booklet and their passport having ‘U’ visa sticker, the Indian Embassy has said.

While the OCI card provides its holder a multiple entry, multi-purpose life-long visa for visiting India, in many cases its holders are required to apply for its re-issuance, including re-issuance of new passport for those below 20 and above 50.

“For an applicant who is 21 to 49 years of age, there is no need to re-issue OCI documents each time a new passport is issued. However, if the applicant desires, he/she can request that the OCI documents be re-issued so that the OCI documents reflect the correct passport number,” the Embassy said.

For an applicant who is 50 years of age or older, OCI documents must be re-issued once after the issuance of a new passport, the statement said.

Read more: The Economic Times

Private equity investments spike up in April

Ireo Uptown, Gurgaon

Value of investments in April is greater than the total investment value in the entire first quarter of 2013.

Source: The Economic Times

Government examining all possibility to raise FDI ceiling: Chief Economic Advisor Raghuram Rajan

Government examining all possibility to raise FDI ceiling: Chief Economic Advisor Raghuram Rajan

Chief Economic Advisor Raghuram Rajan on Friday said the government is examining all possibility of raising foreign direct investment ceiling in various sectors to help increase inflows and prop up economic growth.

“We are examining all possibilities for FDI,” Rajan said when asked on the sectors he would like to see investment coming in.

“But really, what we need is FDI in areas where we can benefit from technology. Technology in logistics is what we begin with in retail… If logistics chains can help us bring produce from the farmer to the table top in a much more effective way with less inefficiency less wastage that would a boon for everybody, the consumer, the farmer and the country as a whole,” he said on the sidelines of a seminar at the ADB annual meet here.

“More investment will help…more investment from the western manufacturers and domestic retail. All that will help. So, our main job is to get back to high growth,” he added.

Yesterday, the government approved Swedish furniture major IKEA’s proposal to invest Rs 10,500 crore– the biggest ever FDI proposal in single brand retail– for setting up home furnishing stores in the country.

Read more: The Economic Times

RBI cuts repo rate by 25 bps, CRR unchanged at 4%

The Reserve Bank of India Governor Duvvuri Subbarao spooked investors and businesses with just a small reduction in key interest rate cut and leaving the cash reserve requirement unchanged. The warning that bad external economic conditions and chances of revival in inflationary pressures may force its had to even raise interest rates has cast a cloud on outlook.

The Reserve Bank of India in its Monetary Policy Statement for 2013-14 cut repo rate by 25 basis points. The CRR was maintained at 4%.

Repo rate, the rate at which the RBI lends to banks, is cut to 7.25%, from 7.5% earlier. All other rates such as the reverse repo, the rate which the RBI pays banks for depositing excess funds, the penal interest rate and the bank rate, fall by similar amount. The Cash Reserve Ratio, the proportion of deposits to be kept with RBI is left unchanged at 4%.

“With upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from minimum support price increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures,” Governor Duvvuri Subbarao said in probably his last annual monetary policy statement. “Monetary policy will also have to remain alert to the risks on account of the CAD (current account deficit) and its financing, which could warrant a swift reversal of the policy stance.”

Read more: The Economic Times

Banking

PNB waives home loan processing fee

Punjab National Bank (PNB) has waived the processing fee on housing loans till June 30, 2013. This was disclosed by R.K. Chatterjee, Head of PNB-AP Circle at a builders’ conclave organised by the bank here. “We are offering personalised service and quick disbursement of advances through retail asset branches with special focus on housing loans and car loans,” he said.

Source: Business Line

Infrastructure/Transportation

L&T, Sojitz may bag Rs 6,700-cr rail freight corridor contract

Infra major Larsen and Toubro (L&T) along with Japanese major Sojitz Corporation may bag a large dedicated rail freight corridor contract valued at about Rs 6,700 crore.

This will be the country’s single largest railway contract and involves civil and track construction of 640-km stretch between Rewari in Haryana and Palanpur in Gujarat. The stretch is a part of the 1,483-km Western dedicated rail freight corridor to be built between Dadri near Delhi and JN Port near Mumbai.

“L&T and Sojitz consortium have emerged as the lowest bidders for the Rewari-Palanpur contract. The consortium has submitted a price bid of about Rs 6,700 crore,” sources told Business Line. The competing bidder – Ircon-Mitsui-Leighton consortium – has submitted a price bid of about Rs 11,000 crore.

Read more: Business Line

Gurgaon expressway may be toll-free

Commuting between Delhi and Gurgaon may be both toll and hassle-free soon. Infrastructure Development Finance Company submitted before the Delhi high court on Thursday its proposal to end the feud, and suggested that toll be imposed beyond Manesar. Once the out-of-court settlement is arrived at, only long-distance traffic heading towards Jaipur and coming from that end would have to pay total toll for the entire stretch at the new toll plaza.

If the proposal gets a nod from the NHAI and the present operator, at least four lakh commuters using NH-8 between Delhi and Manesar daily won’t have to pay toll. Sources said that the long distance traffic is not more than 60,000-70,000 vehicles per day. On April 18, TOI had first reported the proposal to shift the two toll plazas beyond Gurgaon’s municipal limit.

Now, NHAI will consider the proposal and would inform the HC by May 17, the next date of hearing.

Read more: The Times of India

Metro may link Delhi airport terminals

The Delhi metro may now connect the domestic and international terminals of the Indira Gandhi International (IGI) airport.\ The Delhi Metro Rail Corporation (DMRC) is carrying out a feasibility study on metro connectivity between Terminals 1 and 3 of IGI and has sought details ofpeak-hour traffic data between the two terminals from the aviation ministry and Delhi International Airport Limited (Dial) — the private operator of the Delhi airport.

A meeting was recently held at the aviation ministry on the issue where DMRC sought details of projected passenger, employee and visitor movement between the two terminals up to 2021-22 and details of long-term master plan showing traffic circulation between T1 and T3 and TI and other future terminals. It also sought to know from Dial whether T1 would be functional till 2021.

T1 handles 12.5 million passengers annually and the passenger traffic is expected to grow 8-19% annually over the next 15 years. “The distance between the two terminals is 7.5 km and the travel time by road is 15 minutes. Free-shuttle services are also operated at present between the two terminals,” an official said.

Read more: Business Line

Retail

India Clears IKEA’s $1.95 Billion Investment Plan

An IKEA outlet in Prague. The company has got India’s approval to open 25 stores.

India on Thursday approved Swedish furniture retailer IKEA’s proposal to invest 105 billion rupees ($1.95 billion) in the country to open 25 stores, Information and Broadcasting Minister Manish Tewari said.

The company’s planned investment is the largest by a foreign retailer in India since the country amended its laws in late 2011 to allow 100% foreign ownership in single-brand retail ventures. Before that, foreign companies were allowed to own only up to a 51% stake in such retail operations.

Thursday’s approval from the Cabinet Committee on Economic Affairs was the final one IKEA required to make investments in India. Any foreign investments of more than 12 billion rupees must get this committee’s approval.

India’s Foreign Investment Promotion Board had approved IKEA’s proposal in January.

The company welcomed the decision with IKEA Group Chief Executive Mikael Ohlsson calling it a “very positive development.”

In a statement, he said IKEA already sources products from the country and “will continue to increase our sourcing in India from both existing and new suppliers, building on long-term relations and shared values.”

Read more: Wall Street Journal

New Delhi

Restored Connaught Place aims for a grand October re-launch

The construction work of Connaught Place — one of the largest financial, commercial and business centers of Delhi — had started in 1929 and completed in 1933.

Eighty years later, the vibrant business centre of the city is ready for a rebirth this year, after undergoing major revamp and restoration work.

“Once the restoration work is complete, we would like to re-launch Connaught Place once again. This is a landmark, not only of the city but also of the country, because of being centrally located and of course because of its grandeur and architectural elegance,” said Atul Bhargava, president, New Delhi Traders Association.

According to Bhargava, a music festival, a shopping fiesta and a vintage car rally would be the ideal accompaniments for a grand re-launch for the place.

He claimed that talks in this regard had already been commenced with various agencies.

“We have done over 10 fests here and are speaking to people regarding the arrangements. We have met the chief minister, who has expressed her interest for a re-launch,” Bhargava said.

Read more: Business Line

Gurgaon: a city rises

Click for details about Ireo’s innovate real estate projects in Gurgaon

The silhouette of the Golf Course Extension road will never be the same as Ireo projects rise to redefine the contours of Gurgaon. When complete, The Grand Arch, Ireo Victory Valley and Ireo Skyon will add iconic structures to the city’s skyline.

Working behind the scenes are some of the best architects, contractors and consultants from across the globe. Leading architectural firms have conceptualized Ireo’s new age homes. Some of the most respected names in the construction industry such as Larsen and Turbo (L&T) and B. E. Billimoria & Co. Ltd. are engineering the Ireo vision into reality.

Construction work is in full swing at The Grand Arch, Ireo Uptown, Ireo Victory Valley and Ireo Skyon sites. As the projects reach difference stages in construction, we bring you the latest from the construction sites.

Economy

IMF pegs FY14 GDP growth at 5.8%

The International Monetary Fund (IMF) today pegged the country’s gross domestic product growth at 5.8 per cent during the current financial year, against an estimated decadal-low of five per cent in 2012-13, and predicted it to be as high as 6.3 per cent in 2014-15.

The IMF’s growth forecast is lower than not only the Economic Survey’s projection of 6.1-6.7 per cent, but also that of its multi-lateral agency peer —World Bank — at 6.1 per cent for 2013-14.

“Through removing bottlenecks, the country can grow faster. It includes capacity constraints and slow pace of clearances. These capacity constraints have external ramifications, too, as exports cannot keep up with demand,” said Naoyuki Shinohara, deputy managing director of the IMF, addressing a Federation of Indian Chambers of Commerce and Industry meet here

Read more: Business Standard

Supreme Court clears hurdles for FDI in retail says, ‘consumer is king’

The Supreme Court today cleared the hurdles for the implementation of FDI in multi-brand retail sector saying that the “consumer is king and if that is the philosophy working behind the policy then what is wrong”.

The apex court said the policy aimed at ‘throwing out’ middleman, who are ‘curse to Indian economy’ and who are ‘sucking’ it, has to be ‘welcomed’.

A bench headed by Justice R M Lodha said the policy does not suffer from any unconstitutionality or illegality requiring it to be quashed.

Read more: Financial Express

Private builders with SEZs set to get bonanza

The special economic zones (SEZ) may have been non-starters in Haryana but all is not lost for private developers with such notified projects. They seem to be in for a windfall with the “magnanimous” state government all set to allow them a “one-time opportunity” for grant of an industrial colony licence.

While those in the industrial and residential zones will automatically benefit from this move, the real largesse will go to private builders with SEZs in the “non-conforming zones”.

Sources said of the over 24 notified SEZs, nearly two-thirds of these, most of them located in Gurgaon, could be beneficiaries of this “generosity” once the Haryana Cabinet gives its nod to the agenda item at its meeting tomorrow.

Besides allowing the SEZ developers to avail themselves of this benefit, the government intends to further relax the norms for an industrial colony licence by allowing them 15 per cent plotting for a residential area instead of the existing 10 per cent.

This relaxation, however, comes with the rider that 3 per cent of the houses in the residential colony will be for the labour. This will be in addition to the nearly 2 per cent reservation for the economically weaker sections (EWS).

Sources said this one-time benefit was being given since the progress on development of SEZs had not been as envisaged owing to mid-course policy changes by the Centre, including the introduction of the minimum alternate tax in 2010-11 which made them “economically nonviable”.

Read more: The Tribune

Real Estate

Realtors turn office space into homes

A number of builders in Mumbai are converting their office projects into residential ones amid poor sales and falling rentals in the commercial space. In the backdrop of tight liquidity, builders are also finding it easier to work on housing projects, given the self-financing ability of residential projects through customer advances as against back-ended commercial developments. Among major developers, Oberoi Realty is now contemplating to convert its office space project Oberoi Splendor Commercial on Jogeshwari-Vikhroli Link Road in Andheri, a suburb of Mumbai, into a residential project. Other builders such as Godrej Properties and Kohinoor have considered and executed such decisions in the past few months as existing ready commercial real estate spaces continue to see vacancy levels growing. “Most of the current office space deals are aimed at cost reduction and that does not necessarily mean demand growth. Therefore, it’s good to hedge your risk and go for more residential, which is relatively easy to sell than focusing on commercial space that may take long to get absorbed,” says Raja Seetharaman, managing director of property advisory firm Aperon Real Estate Services.

Slower economic growth has led to decline in expansion by companies due to prevailing cautious sentiments and the market saddled with higher inventory isn’t showing any bright recovery promise soon. Total net office space absorption across top eight Indian cities was down 37 percent from a year ago at 3.6 million sq ft in the first quarter of 2013, showed a recent report from property consultant Cushman & Wakefield. However, fresh supply continued to rise 18 percent to 7.9 million sq ft with 3 percent increase in vacancy rates to 19.6 percent. Residential property market, however, is relatively well placed and experts see more developers trending towards it as customer advances is a much better option than going in for expensive loans or private equity partner induction. “In residential market, latent demand is getting converted at right price point. Cash flow situation is much better in this segment than commercial. Residential projects work on negative working capital and therefore it makes more sense for a developer to focus on this segment now,” says Ambar Maheshwari, managing director, corporate finance at Jones Lang LaSalle India.

Read more: The Economic Times

Policy

RICS to address inconsistencies in property measurement rule

The Royal Institution of Chartered Surveyors (RICS) and 15 other global property organisations have joined hands to address the issue of inconsistencies in the methods of property measurement across the world. RICS, a global body for setting standards in property sector, is convening the first meeting of the International Property Measurement Standards Coalition (IPMSC), which is meeting today at the World Bank in Washington. The meeting has been organised to launch an initiative aimed at developing a consistent international property measurement standard, RICS said in a statement. The coalition includes International Monetary Fund (IMF), International Consortium of Real Estate Associations (ICREA), International Facility Management Association (IFMA), International Federation of Surveyors (FIG), International Valuation Standards Council (IVSC), among others. From India, Confederation of Real Estate Developers’ Association of India (CREDAI) is participating in the meeting. “An example of current inconsistency is the way in which floor space is calculated,” RICS South Asia Managing Director Sachin Sandhir said in the statement.

Read more: The Economic Times

Infrastructure

City ill prepared, buildings unsafe

That Delhi is vulnerable to earthquakes is no secret. But is it prepared to face even a moderately intense earthquake? The answer is no. Every year, civic agencies approve thousands of construction plans. But though it is mandatory to get a structural stability certificate from a structural engineer, sources say it is a mere formality as most building owners don’t apply for completion certificate from civic agencies. “Certificate for structural safety is submitted twice-—first at the time of getting the plan sanctioned and next when the building is completed. But just five percent of completion certificates are issued annually,” said a senior official with South Delhi Municipal Corporation. There are just 80 structural engineers registered with the three corporations.

Read more: The Times of India

Metro may link Delhi airport terminals

The Delhi metro may now connect the domestic and international terminals of the Indira Gandhi International (IGI) airport. The Delhi Metro Rail Corporation (DMRC) is carrying out a feasibility study on metro connectivity between Terminals 1 and 3 of IGI and has sought details of peak-hour traffic data between the two terminals from the aviation ministry and Delhi International Airport Limited (Dial) — the private operator of the Delhi airport. A meeting was recently held at the aviation ministry on the issue where DMRC sought details of projected passenger, employee and visitor movement between the two terminals up to 2021-22 and details of long-term master plan showing traffic circulation between T1 and T3 and TI and other future terminals. It also sought to know from Dial whether T1 would be functional till 2021. T1 handles 12.5 million passengers annually and the passenger traffic is expected to grow 8-19 percent annually over the next 15 years.

Read more: Hindustan Times

Hospitality

Hilton set to bring Waldorf Astoria to Delhi or Mumbai

The iconic Waldorf Astoria Hotel in New York City

The iconic Waldorf Astoria is on its way to India. Hilton Worldwide, the world’s second largest group of hotels with Waldorf as its ultra luxe brand, is looking at Delhi and Mumbai as the possible destination for it. The group has spoken to two big developers and will zero in on the best possible location for the project. “We would love to have the Waldorf Astoria in India. It could be in either Delhi or Mumbai as a suitable market is needed to sustain it. These two cities are in the league of New York, London, Tokyo and Shanghai where the brand exists,” Hilton Worldwide VP (operations, India) Guy Hutchison said. Hutchinson moved to India five months back from China where he was closely involved with the launch of the Shanghai Waldorf and was responsible for design of the Beijing Waldorf that will open next year. “Location is critical for finalizing the site of a Waldorf. Hilton has been very selective in wherever it has opened a Waldorf. The one in India will also have to be a continuation of that experience,” he said, while declining to give a time frame by when India will get its first Waldorf.

Read more: The Times of India