China should learn ‘valuable lessons’ from India’s overseas investment policy

Image source : eastasiaforum.org

China should learn “valuable lessons” from the Indian approach to its Overseas Direct Investment (ODI) which has won wider acceptance without attracting prejudice, official media said today.

Compared with China, India’s overseas investments are more market and resource oriented, a write up in the state-run Global Times said, drawing up a comparison between India-China overseas investment policy.

“Since 1991, India’s private enterprises have greatly engaged in investing abroad. The volume of overseas investments by private enterprises is small but they cover a wide range of programs,” it said.

Read more: NDTV Profit

Real Estate

Buying property? Check developer’s finance

Buying you property? Have you checked the developer’s balance sheet? Do take a look, because you may be in for a rude shock.

Click to enlarge

The myth about land scarcity

In 2008, Inkel had identified 10,000 acres of land in eight districts,a fact confirmed by the revenue department.

Land shortage has become so acute in the state that both the ruling and opposition combines have become scared to pursue any project involving land acquisition.

But little seems to be known to policy makers and the public that Inkel, established by the state government itself, had identified about 10,000 acres as available for industrial projects in different parts of the state in 2008.

Read more: The Times of India

Realtors cash in on Gurgaon riches for luxury play

Gurgaon, the industrial city bordering Delhi, is buzzing with ‘trophy homes’, at least 3,000 of them with a price tag of Rs 5 crore or more. It’s as if the ‘slowdown’ has given this glitzy city a miss, well almost! ‘Trophy homes’ refer to luxury residences with spectacular views or other extraordinary amenities.

Of these 3,000 luxury units, around 1,500 to 2,000 apartments and villas were added in the Gurgaon market in the past year itself, according to IndiaHomes.

Read more: Business Standard

Interest rate cut not enough to buy property

Like every festive season, this year also has banks and builders coming together with lucrative offers for home buyers. Several banks have cut rates on home loans by 25-50 basis points and real estate developers are offering freebies and discounts on under-construction and ready -for possession properties.

Bank of Baroda, Allahabad Bank, Central Bank of India, IDBI Bank, Indian Overseas Bank, Oriental Bank of Commerce, Punjab National Bank and Union Bank of India have cut rates by 25 to 50 basis points on a home loan of Rs 25 to 50 lakhs. This is part of the festival period offer which typically starts with Ganesh Chaturthi and goes on till after Diwali, sometimes extending till the New Year.

But, before you do take plunge, make sure you have enough funds.

First, you will have to cough up the 20 per cent down-payment because property prices are still high. In many cities, builders have sold it to investors. A recent Knight Frank report said almost 80,000 flats were unsold in Mumbai.

Read more: Business Standard

House sale capital gains clause: P Chidambaram unhappy with the proposal

A proposal in the 2012-13 budget to exempt the proceeds of house sales from capital gains tax, provided the money is invested in a small business enterprise, is being reviewed following the change of guard at North Block.

Finance minister P Chidambaram is unhappy with the proposal as he feels the scheme can be misused to avoid capital gains tax by those sitting only on large ancestral wealth, said a government official familiar with the development.

As a result of the rethink, the scheme is yet to be notified by the Central Board of Direct Taxes making it yet another budget proposal – after the retrospective tax and rules against tax avoidance – about which the government has had a rethink after the departure of the finance minister Pranab Mukherjee.

Read more: The Economic Times

Luxury brands like Porsche, Jimmy Choo ally with CAs, wealth managers to woo rich clients

As the lights dim, a young lady of Indian origin with a heavy British accent takes over. The screen lights up with a presentation about a luxury homes project in London that overlooks the Tower Bridge on the Thames. The hostess begins by explaining the tax implications if members of the audience at the Lalit Hotel in central Delhi were to buy any of these apartments priced between Rs 7 crore and Rs 160 crore.

Every other evening, chartered accounts and private wealth managers are organising such shindigs to showcase to their clients a piece of luxury-from high-end apartments in London to Porsche cars, Italian luxury men’s fashion brand Canali and Jimmy Choo shoes.

Read more: The Economic Times

Infrastructure/Transportation

RBI relaxes ECB norms for infrastructure companies

Giving a boost to infrastructure sector funding, the Reserve Bank on Tuesday relaxed the External Commercial Borrowings (ECB) norms to help companies raise more funds from overseas markets.

The RBI has allowed companies engaged in infrastructure sector to raise bridge finance from overseas market under the automatic route.

“On a review, it has been decided to allow refinancing of such bridge finance (if in the nature of buyers’/suppliers’ credit) availed of, with an ECB under the automatic route,” the central bank said in a notification.

Under the earlier provision, the companies were required to take permission of the RBI for raising bridge finance, which is a kind of interim arrangement for short-term credit.

Read more: Business Today

Sheila Hopeful
Airport Metro may run between IGI & Dwarka

Services on the Airport Metro line that were suspended on July 8 due to structural faults might be resumed between stations where no faults were detected, howeverthe urban development ministry is yet to take a decision in this regard. The Rs 5,700 crore ($11.5-billion) line connects New Delhi railway station to Indira Gandhi International Airport (IGI) Terminal 3, and Dwarka Sector 21.

Read more: The Times of India

IT/BPO

Indian IT companies outstanding, have ability to generate decent value for shareholders

In an interview with ET Now, Rahul Bhasin, Managing Partner, Baring Private Equity Partners talks about his outlook for the Indian markets and why the Indian It sector has good potential.

ET Now: If I look at Indian markets, we have a bad macro, challenging global environment, complete policy paralysis, a broken down investment cycle and earnings are not looking all that attractive. However, Indian markets are still holding on and for this year, India is the best performing BRIC market, why is that?

Rahul Bhasin: In dollar terms, the market over a five-year period is off almost 40%. If it has had a small bounce back from there, there is nothing to get tremendously excited by. With a cheap monetisation engine which is fuelling global liquidity in a very significant manner, people look for yield.

Read more: The Economic Times

IT, BPO professionals become major property buyers in West Delhi

Gurgaon IT/ITeS and call centre professionals with a salary bracket of Rs 12 lakh to Rs 24 lakh per annum are buying properties in Janakpuri, Vikaspuri, Rajouri Garden and Punjabi Bagh of West Delhi. Good connectivity to Gurgaon, better infrastructure and security and presence of shopping malls are factors for people investing in properties in West Delhi, say Santhosh Kumar of real estate consultancy firm Jones Lang LaSalle (JLL).

“A lot of talent for the IT companies in Gurgaon comes from West Delhi as this part has a huge section of middle and upper middle class aspiring for corporate jobs,” said Santhosh Kumar, CEO-Operations, JLL India.

Read more: The Economic Times

India News

Haryana notifies Gurgaon-Manesar draft development plan for 2031AD

The Draft Development Plan of Gurgaon Manesar Urban Complex-2031 AD has been notified and published in Haryana Government Gazette on September 4. Any person can submit objections or suggestions, if any, till October 3, 2012 to Director General, Town and Country Planning, Haryana.

The Gurgaon Manesar Draft Development Plan-2031 AD has been made keeping in view projected population of 42.50 lakh. A total of 33276 hectares of land has been proposed including 16010 hectares for residential purpose, 1616 hectares for commercial activities, 4613 hectares for Industrial, 4420 hectares for transport and communication and 626 hectares for public utilities. Similarly, 2035 hectares for public and semi public (Institutional), 2775 hectares as open spaces, 114 hectares for special zone and 633 hectares as Defence Land have been proposed. In addition to this, 406 hectares for existing town and 478 hectares for village ‘abadies’ have been proposed.

Read more: The Times of India

Now, on sale: Coop land, buildings

It seems the Rs 4,500-crore worth of new and hiked taxes are not enough to fill the empty coffers of the Punjab government.

Looking to secure more funds, the SAD-BJP alliance has now agreed a plan to sell the land or buildings in possession of the cooperative organisations so that the accrued income could be invested on the capital expenditure and income generating activities.

In case a resolution was passed for the sale of by the BoDs or the MD, then the case would be sent directly to the Registrar Cooperative Societies — the competent authority to accord approval to the concerned institutions for the sale of its land or building.

Read more: The Indian Express

First real-estate web channel Propex TV launched in India

Propex TV, claimed to be the country’s first real-estate web channel, has started its operations in Malayalam.

The web channel will provide a 24×7 common platform for the Malayalee property buyers and sellers all over the world, Charles William, Chairman of Kochi based J C Group, which launched the Propex TV, told reporters here today.

The programmes produced by the JC group and aired by various television channels provide a common platform for buyers and sellers in real estate sector to come together.

Read more: Money Control

At Ireo Gurgaon Hills, the architectural planning ensures that residents get the most out of the stunning natural beauty of the surroundings.
All units have generous balconies for an ultimate alfresco experience, including a grand 400-500 sq. ft. balcony adjoining the living room that opens towards the best viewing corridors.

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