Real estate developers say the passage of the Land Acquisition Bill could push up property prices by as much as 30% in projects where land is yet to be acquired.
The Bill, passed by the Lok Sabha on Thursday, aims to provide higher compensation of four times the market value for land sold in rural areas and twice the market value for land in urban areas, among other benefits to land owners.
While developers agree that the Bill will increase transparency in land deals, they say the higher compensation to land owners could make several real estate projects unviable. While large projects of over 50 acres will become difficult to execute, even prices of smaller parcels of land that do not come under the purview of the Bill could double, they add.
“The process of acquiring land for projects will become tedious, especially in the case of large land parcels,” said Lalit Kumar Jain, chairman of Confederation of Real Estate Developers Association of India.
Developers say the worst hit could be lowcost and budget housing projects. “The idea of low cost housing was to get cheap land. If land prices shoot up, so will the prices of the finished product,” said Niranjan Hiranandani, chairman of Mumbaibased Hiranandani Group.
Read more: The Economic Times
Real estate regulation to benefit buyers
Real Estate (Regulation and Development) Bill to regulate real estate sector in India which got cabinet nod in the month of June 2013 has several provisions which were highly to benefit property buyers in India.
According to a PIB report, considering the sensitivity of the sector, the proposed bill also has stringent rules having provisions like a jail term of up to three years for developers who committed offences like putting up misleading advertisements about projects repeatedly.
The bill sought to provide a uniform regulatory environment to the sector while developers could launch projects only after acquiring all statutory clearances from relevant authorities.
All relevant clearances for real estate projects would have to be submitted to the regulator and also displayed on a website before starting the construction.
According to the bill, builders and developers who become repeat offenders in terms of displaying misleading ads may even face a jail term of up to three years.
The proposed legislation has tough provisions to deter builders from putting out misleading advertisements related to the projects carrying photographs of the actual site.
Failure to do so for the first time would attract penalty which may be up to 10% of the project cost and a repeat offence could land the developer in jail.
The flats when sold should be based on carpet area and not super built area and the same would be made uniform for the entire country.
Read more: Nagaland Post
Prime properties in the making
Prices in Gurgaon have shot up significantly in past several months while that in South Delhi have contracted. What is the reason behind it? Do you think is is still worth investing in Gurgaon for more upside?
Anuj Puri: Gurgaon is the hottest investment market in Delhi NCR. It has been for quite a while. The reasons are the fact that most of the large corporates have offices there, which makes it a very desirable residential destination for the upper management cadre.
Source: Money Control
India receives highest FDI worth $1 billion in pharma in April-June
India’s pharmaceuticals sector has received FDI of $1 billion, the highest among the top 10 segments, during the April-June period this year amid concerns over increasing acquisitions of domestic firms by multinationals.
Foreign Direct Investment (FDI) in drugs and pharmaceuticals during April-June 2012 stood at $465 million, according to the latest data of Department of Industrial Policy and Promotion (DIPP).
The DIPP is working on a cabinet note to include major changes in the FDI policy in the sector to protect domestic generic (off-patent) firms.
“The DIPP is concerned that an overwhelming majority of foreign direct investment in pharma is coming only in existing (brownfield) units,” an official said.
During April 2000 and June 2013, India has attracted FDI worth USD 11.31 billion, which is 6 per cent of the total foreign inflows.
The Finance Ministry has recently cleared a Rs 5,168 crore proposal of US-based pharmaceutical firm Mylan Inc’s to acquire Indian generic drugs company Agila Specialties.
Read more: The Economic Times
HT pitches for toll free Gurgaon
Commuters between Delhi and Gurgaon almost always complain of a bitter experience at the toll plaza of the Gurgaon Expressway, with waiting times going upto an hour during rush hours. Taking a cue from this situation, Hindustan Times has launched an initiative titled ‘Toll Free Gurgaon’. The campaign pushes for the removal of the toll plaza and highlights how ill-conceived and poorly designed the Gurgaon Expressway is, and its adverse impacts on the traffic situation and life in the city.
The campaign aims to strengthen the position of HT Gurgaon edition that positions itself as ‘Your Gurgaon. Your Voice’. It targets residents of Gurgaon as well as the office-goers who travel to Gurgaon from Delhi and the rest of NCR.
Speaking about the campaign, Shantanu Bhanja, business head and VP, marketing, HT Media, says, “As citizens of Gurgaon we have all suffered the ill-effects of the toll – constantly being late for events. The toll plaza has indeed taken a toll on all of us! And, as the leading newspaper of Gurgaon, and with our declared position of being the voice of Gurgaon, we decided that we must take up most strongly one of the biggest issues that afflict the lives of the citizens of Gurgaon on a daily basis.”
HT has launched a full-fledged media campaign, barring television, to promote this initiative. It is running print ads across its Delhi and NCR editions, along with full page editorials on how the toll plaza creates a traffic bottleneck and chaotic jams.
Read more: AFAQS
Larsen & Toubro bags orders worth Rs 1,141 cr in August
Larsen & Toubro (L&T) today said the water and renewable energy business of its construction division bagged new contracts worth Rs 1,141 crore in August.
“The Water & Renewable Energy business of L&T Construction… has secured new orders worth Rs 1,141 crore in August,” the company said in a statement.
These include an order from Public Health Engineering Department, Rajasthan for an integrated drinking water supply project.
“The scope of the project includes supply and laying of transmission pipelines, construction of clear water reservoirs and pumping stations,” it added.
Other states from where the company bagged orders are West Bengal, Tamil Nadu and Karnataka.
“Another turnkey order was received from the Public Health Engineering Department, West Bengal for the design, construction and commissioning of a 52 MGD water treatment plant,” the company said.
The water and renewable energy business caters to turnkey infrastructure projects including water supply and distribution, desalination plants, waste water networks and water and waste water treatment plants.
Read more: The Economic Times
Building curbs in NCR forests set to go
In a move that could deal a body blow to threatened forests and water bodies in the National Capital Region, Haryana government has successfully got restrictions on construction activity in ‘conservation zones’ deleted from the revised NCR regional plan, which is now in the final stages of getting notified.
If the change is notified, all four state governments in the NCR will get a much freer hand in allowing constructions in eco-sensitive zones such as the Aravalis and the Yamuna riverbed. Although mandatory clearances would still be required, the earlier clause that restricted constructions in these zones to just 0.5% of the owned land — that is, only 20 sq m in an acre — has been jettisoned.
The dropping of the restriction clause came to light after an RTI application allowed green activists to access files related to NCR plans. The original regional plan for NCR 2021 has a clause that restricts constructions for “regional recreational activities” in natural conservation zones.
Documents obtained by SS Oberoi of Mission Gurgaon Development under RTI show that the proposal to do away with this restriction was moved by Haryana government in the 61st planning committee meeting held at the NCR Planning Board on June 4, 2013. According to the minutes of the meeting, “Financial commissioner and principal secretary, town and country planning department, government of Haryana suggested that natural conservation zone [para 17.5.3 (iv)] relating to regional/ recreational activities, restricted constructions of 0.5% may be deleted.”
Read more: The Times of India