Land prices jump three-four times along International Border from Kathua to Akhnoor 
As guns fall silent, realty booms
Jupinderjit Singh

VILLAGES along the Indo-Pak border have seen the worst of times — four wars, regular skirmishes, numerous brushes with militancy, mine-infested fields and mindless shelling and firing from across the border. But the five-year silence along the International Border has done wonders for prices of agriculture land. From a time where no one even thought of buying land for peanuts, prices have increased three to four times.

Though land prices along the Line Of Control (LoC), which begins from Akhnoor, remain badly hit, the scenario is much improved along the border from Kathua to Akhnoor in Jammu division. The border in Jammu district is divided in two. In one part, the countries do not have dispute over the boundary line, which is called the International Border and stretches upto Akhnoor.

From Akhnoor begins the LoC since the boundaries are disputed. The situation along the LoC is always tense due to repeated infiltration bids and firing but ceasefire is in place along the International Border.

Girdhari Lal of Suchetgarh village, which is right next to the Zero Line, said they had never had it this good. “After the Kargil War, land prices had come down to less than Rs 10,000 a kanal. Now, they have climbed up to Rs 30-40,000 and even more,” he says. “The Indian defence forces have erected a 10-foot high bandh along the border. Earlier, Pakistani forces would fire indiscriminately at farmers working in fields. They do so even now but the bullets go over our heads. It is even safe to stand upright in the fields,” he says.

Romesh Chander of nearby Abdal village, also situated close to the International Border, pegs the price of one kanal at Rs 80,000. Villagers, who want him to tell the price at which he sold his land, however, instantaneously correct him.

Swaran Lal, also of Suchetgarh village, says that no one is selling land, not even those close to the border. “People can quote prices as they like but land near the border is available for less than Rs 40,000 a kanal,” he announces.

Chowdhary Dev Raj, president of the Sarpanch Association of RS Pura sector that includes border villages, put the price at Rs 2-3 lakh an acre near the border. Each acre comprises eight kanals. “This land is very fertile. The region exports one of the finest varieties of Basmati besides producing wheat. If the borders permanently go silent, this region can become the richest in the country,” he says. Prices increase as one travels farther from the border. Corroborates Dev Raj, “Land away from the border can even fetch Rs 5-7 lakh per acre.”

There was a time when these villagers were finding it hard to marry off their children. No one wanted to marry their daughters to men in villages along the International Border, especially after the Kargil War. “Now people are not wary of entering matrimonial alliances with families here,” giggles Swaran Lal.

Article 370...

REAL estate business remains completely local in the area. Due to imposition of Article 370, only state subjects — residents of the state of Jammu and Kashmir — can buy land here. Even though there is a huge potential to develop realty, the government cannot allow outsiders for reasons other than economic. However, just as Himachal Pradesh has after years of isolation now started encouraging outside investment, Jammu and Kashmir may also have to follow suit for better economic development. Till then, local buyers can sell and buy among themselves enjoying immunity from bigger fish.

Win some, lose some 
MC wants land along GT Road cleared to widen it, govt land prices would mean huge losses for investors 
Sanjeev Singh Bariana 

THERE is some good news and some bad news for the large number of property investors along the portion of Grand Trunk Road that passes through the city limits of Ludhiana.

The good news is that the notorious traffic snarls on the GT Road passing through Ludhiana could soon be a thing of the past. The road is being widened — in some places, upto 100 feet area is being cleared.

The bad news is that the Municipal Corporation has served notices on property dealers to clear land portions along the road. Going by the fact that the city property was priced as high as Rs 1.5 lakh a square yard at many places, particularly on Ferozepur Road, clearing of property along the GT Road will mean government rates for owners that are far less than market prices.

Proprietor of Vishal Properties, Dugri, says, “The development will have mixed results. Some will lose their entire land and a big portion of expected money. Others may end up losing most of their land but saving some portion of it in the back of their property and make bigger gains. Owners of ancestral property might crib at the loss of their gold pot but investors must remember that they had played a gamble.”

A MC senior official said that portions along the entire road were being cleared but they were concerned only with land within municipal limits and were waiting for objections to be filed before preparing a case file.

Says property dealer Ashok Malhotra, “I am not aware of the details of the new notices. Plus, we have left at least 100 square feet area in front of our colonies and would not be affected. There is talk about property owners in Sahnewal and other townships along GT Road also getting similar notices.”

Property owner Rattan Pal confirms the notices. “Yes, we have been served notices. I am approaching my legal council. We will go through details of the case before charting out the future course of action. Even if the government compensates us at Rs 12,000 a square yard, the price is much lesser than market price. Let us see.”

Senior citizen Sadhu Singh says, “I do not want to comment on the prices of property. One positive development is that we can have broader and cleaner roads. The volume of traffic has multiplied several times. Honking vehicles are literally clamouring for space. Houses and shops adjoining the road face noise pollution and those choosing to walk live in constant fear of being run over.”

Businessman Taranjit Singh will lose a portion of his land to lower prices but is upbeat. “I expect a change for good. I have travelled widely in the US and nowhere along main roads are there commercial establishments. Proper care is taken to keep some free space between habitation and the road. Here, travellers’ safety is being constantly compromised,” he says. Broadening of roads also needs to be complimented with regulation of traffic inflow channels to the road, he suggests. “The GT Road is national highway number one. The traffic on to the main road should be regulated by entry from smaller roads that open towards the back of buildings on the main road,” he says.

Real estate dealer Vipan Gupta Bitta says it’s all part of the game. “Property dealing has its ups and downs. The forthcoming change in land use has resulted in near halting of business deals on property along the road. We have to wait till there is an official outcome on objections being filed by owners.”

Farmer Gurjit Singh says it is fine to learn about the possible profit and losses to different categories of landowners. “It will be interesting to find out about those who have already raised illegal buildings on the land area under question.”

Tax tips
S.C. Vasudeva
This column appears weekly. The writer can be contacted at sc@scvasudeva.com
Calculating HRA
Deduction limit 25pc of income or Rs 2,000

Q. I am married, working and live with my parents. The residential accommodation is in my mother's name and I pay rent to her. My father and younger brother are individually earning less than the exempted income tax limit. Therefore, they do not file returns. I am the only member earning more than exempted limit and do not receive HRA from my employer. On the basis of above, can I claim deduction u/s 80GG for the amount of rent paid by me to my mother for residential accommodation used by me and my wife (my wife is a housewife)? Is it also necessary to submit form 10BA with the ITR-1 for the A.Y. 2007-08?

— G.P. Agarwal

A. The deduction under section 80GG of the Act is allowable if the following conditions are fulfilled:

n The rent paid is in excess of 10 per cent of his total income before allowing any deduction under this section;

n the rent paid is in respect of accommodation occupied for the purposes of his own residence subject to the condition that the assessee files declaration in Form No. 10BA [vide Rule 11B];

n the deduction is to be claimed only in cases where any residential accommodation is not owned by the assessee or by his spouse or minor child or by Hindu undivided family of which he is a member.

However, the deduction in respect of rents paid will be denied only where the assessee, his spouse or minor child or the Hindu undivided family of which he is a member, owns any residential accommodation at the place where the assessee resides or performs the duties of his office or employment or carries on his business or profession. Thus, where the assessee or his spouse or minor child or a Hindu undivided family of which he is a member owns any residential accommodation elsewhere (i.e., at places other than the place where he ordinarily performs his duties of employment or carries on business or profession) the deduction under this section will not be denied. In cases where the assessee owns any residential accommodation at any other place and he claims concession in respect of self-occupied house property for such accommodation, the deduction available under this section will be denied even if he does not own aXny residential accommodation at the place where he ordinarily resides or performs the duties of his office or employment or carries on his business or profession; and

n the assessee, being an employee, who is entitled to house rent allowance from the employer is eligible for exemption under section 10(13A) of the Act but not for deduction under section 80GG.

The deduction for rent paid is limited to 25% of total income or Rs.2,000/- per month whichever is less. You would be entitled to a deduction of house rent paid provided you fulfill the above conditions.

Form 10BA is required to be filed by a person claiming deduction under section 80GG of the Act. The deduction is allowable only if this form is filed along with the return of income. The documents evidencing the payment of rent should be preserved since the same can be demanded by the assessing officer for verification of the declaration made in the said form.

Include DA, exclude allowances

Q. I am a lecturer in a government-aided college. My house rent allowance is Rs 1,600 a month. I live in my father-in-law’s house. He has no source of any income and I pay him Rs 3,000 a month towards house rent. Can I get the benefit of Rs 3,000 house rent in income tax? If yes, what proof will be required to be submitted to my employer?

— Indu

A. The amount to be excluded from the total income of an assessee in respect of the house rent allowance is the least of the amounts referred to hereinafter:

n the actual amount of such allowance received by the assessee in respect of the relevant period; or

n the amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or

n an amount equal to –

- where such accommodation is situated at Bombay, Calcutta, Delhi or Madras, one-half of the amount of salary due to the assessee in respect of the relevant period; and

- where such accommodation is situated at any other place, two-fifths of the amount of salary due to the assessee in respect of the relevant period.

The relevant figures for the amount of salary not having been provided in the query, it is not possible to compute the amount that is to be excluded from your total income. It may be noted that the salary for the above purposes would include dearness allowance if the terms of employment so provide but would exclude all other allowances and perquisites. It should be possible for you to compute the amount not includible in your salary on the basis of the provisions of the Act given herein above. 

Deduction: What you pay, you get

Q. I along with my husband secured a Rs 8 lakh house-building loan from a bank in the joint account. We are both government employees. My husband repaid Rs 1.4 lakh and I repaid Rs 15,000 for the year 2008-09. My query is:

n Are we both eligible for rebate on repaid loan and in what proportion?

n Am I eligible for rebate for Rs 15,000 only or excess from my husband’s installments?

n What documents should we submit to our DDOs?

— Charanjit Kaur

A. A deduction is allowable under section 80C of the Act to an owner of a residential house in respect of whole of the amount paid in the previous year towards the repayment of amount borrowed for the purpose of purchase or construction of a residential house as does not exceed Rs 1 lakh. On the basis of the above provisions of law, your queries are replied hereunder:

n Both of you are entitled to the deduction allowable under section 80C of the Act as the facts indicates that the house is owned by both of you.

n In my opinion, you would be entitled to a deduction of Rs 15,000, the amount paid by you towards the repayment of the loan raised for the purchase/construction of a residential house.

n The DDO should be provided with the supportive with regard to the raising of the loan as well as with regard to the payments made towards the repayment of the loan. 

Data insufficient to work out I-T liability

Q. One of my friends was gifted a one kanal plot in Abdi Deharea about 50 years back. He sold the same for nearly Rs 16 lakh. Is he is liable to pay income tax on the transaction? If so, how much?

— Jaswant Singh

A. The facts given in the query do not indicate various particulars that are essential to compute tax, if any payable on capital gain arising on sale of the plot. The particulars required are date of acquisition of the plot, cost thereof and the fair market value of the plot as on April 1, 1981. The fair market value as on April 1, 1981 is required because your friend has an option to adopt such value for indexation in case the cost of the plot is lower than the fair market value. In view, thereof, it is not possible to compute the tax, if any leviable, on capital gain arising on sale of the plot. 

Capital gain on plot sale may be taxable

Q. I am a senior citizen. For the financial year 2008-09 (assessment year 2009-10) my financial position is as under:

n Pension: 87,614, PF: 32,136 (less 10,712)=21,424, Medical: 6,833, Total: 1,15,871.

Bonus on maturity of MIS a/c (opened in 2002 out of pensionary benefits received at the time of retirement) = 30,000. DA/Intt. Etc. 787. Grand total = 1,15,871+30,000+787 = 1,46,658.

n Contributions: PPF: 70,000, LIC Premium: 10,442, Helpage: 3,000. Total: 83,442.

I purchased one built-up house jointly with my son and invested Rs 4.5 lakh during the financial year (2007-08) from my personal savings and by taking loan from friends and relatives. I showed this transaction in IT return (2007-08). I sold one plot (transferred to me after the death of my wife (the plot was in her name) for Rs 6.25 lakh. Out of this amount, I cleared the loans and invested the rest in renovation of the house.

Kindly guide me as to what would be my tax liabilities. Also can tax be saved? I have one son and three daughters, all married.

— Prem Lal Arora

A. The facts given in the query do not indicate whether the house purchased by you was for the purposes of self-residence or for being let out. Presuming that the same is for self-residence, your total income from various sources would work out at Rs 1,39,825. The amount of medical expenses is not treated as income on the presumption that the same represents reimbursement of expenditure incurred by you. The deduction allowable under section 80C and 80G of the Income-tax Act 1961 (the Act) would be Rs 81,942 (70,000+10,442+50% of 3,000). The taxable income after allowing the deduction under section 80C of the Act would work out at Rs 57,883. The income from self-occupied house being nil, no tax would be payable in respect of the said income as the same is below the taxable limit of Rs 2.25 lakh as applicable for assessment year 2009-10. However, the capital gain on the sale of plot may be taxable. The facts given in the query do not indicate whether plot was held for more than three years as also the cost of such plot. It is, therefore, not possible to compute the capital gain arising on the sale thereof. 

Now, a horoscope for your house!

ASTROLOGY, palmistry and what the future has in store for you has always held people's fancy. But how about the horoscope of the dwelling you stay in?

"Every house has a story to tell about what the future holds for each of its members," says Neeta Sinha an astro-architect who has pioneered the concept of astrology in architecture. House horoscope takes into account the general layout of the place like where it is situated, whether it is one or multi-storeyed, the number of windows and doors available, ownership pattern — rented, privately owned or a company flat — and the owners name to suggest things related to the house. "Based on these things, I determine what is wrong with a house, how much good is present in it and how to rid it of the bad," she says.

Vaastu and Feng Shui experts, however, dismiss the house horoscope. It is same with different names, says Mumbai-based Vaastu expert Kavita Laul, who also gives consultancy in house horoscopes. "The house horoscope is a mixture of three elements astrology, Vaastu and Feng Shui with architectural knowledge applied to it to give a perfect balance," she says. "I don't even need to visit someone in person to help them. I study the architectural plans or maps of the house to know where the trouble lies," she says.

And finally Feng Shui, the problem solver, comes into play. "My cure for all illness of the house is Feng Shui. I don't believe in structural changes. These are difficult to adhere to and may take time to bring the right result," says Kavita. "These horoscopes don't predict anything. They just balance out the negative energies to make your way for positive ones to better your life and turn the wheel of fortune in your favour. It balances the house by opening out the blocks and solve problems. People often have queries related to their health and finances and whether it is influenced by their house,” she says.

However, astrologers totally deny the fact that there can be horoscopes for a house. "I don't accept that you can make house horoscopes. These are only possible for humans. You need a date and time for a horoscope and that determines what your life will be and what you will be," says astrologer Pandit Shiv Narayan. 
— PTI

GROUND REALTY
Unconcealed Delight 
Turn your bathroom into a glamour room. Go in for a concealed cistern with a wall-hung seat, writes JAGVIR GOYAL, as he conducts a technical scrutiny of what’s available 

THE human desire to have vast open spaces around never dies. Rather, it symbolises the deeply ingrained craving for freedom and fresh air — more and more space always brings with it a feeling of freedom and fresh air. This natural desire, perhaps, resulted in the invention of concealed cisterns!

Overhead cisterns with their dangling long chains — and often erratic flushing operation — have almost disappeared. Low-level cisterns, both for Indian and English seats, are popular and users are more or less happy with them but as they say, innovation never stops. The flushing cistern is being concealed in the wall to enjoy more space in the bathroom.

Among English seats, wall hung ones are preferred. Coupled with a hidden cistern, these can be made to occupy minimum space and look like a small and insignificant wall fixture. Once a fixture occupying maximum space, a water closet (WC) can now be accommodated in a small corner in a bathroom.

Concealed cisterns can be just 90 mm or three-inch thick, which is equivalent to the thickness of just one brick. These can be easily concealed in the wall. Other available thickness are 120 mm and 175 mm. All these cisterns can be concealed in the usual nine-inch thick walls. However if the wall is only 4.5-inch thick, the three-inch version can be accommodated. Mostly, high-density polyethylene (HDPE) is used for cisterns.

n How it works: An actuator plate with an operating button that needs pressing is the only part visible externally. The plate is made of high quality plastic, metal or stainless steel. It has single as well as double press buttons on it for single or dual flushing and is being produced in many attractive designs and shapes. In 175 mm thick cisterns, the actuator plate can be on top or in front.

n Intelligent waterflows: Concerns to save water are on the rise the world over. Keeping in line with the latest concept, concealed cisterns, too, are designed for dual flushing, allowing short and long flushing. Six litres of water is used for short flushing and nine for long flushing. When the WC is used for urination, short flushing is usually found sufficient and saves 50 per cent water. Otherwise, long flushing can be used.

n Silence is golden: Efforts have been made to minimise flushing noise in concealed cisterns. At night, sometimes the sound of a flush is quite loud and may disturb sleeping members of the family. Concealed cisterns produce a sound of less than 20 decibels, which is barely audible. This technology has been named Whisper Technology.

n Low maintenance: One question that obviously comes to mind while choosing concealed cisterns is the repair or maintenance in case of leakage or non-function. Though manufacturers vouch for zero-maintenance, provision exists to remove the actuator plates to allow access to the cistern, if required. Float valve or flush mechanism can then be easily removed from the cistern by putting in the hand from the crevice created. Best quality cisterns are blow moulded as a single piece. So there is no chance of leakage. Otherwise, double-glazing is provided to the cistern for its longer life and pipe connections are made leak-proof.

n Stringent testing: In order to avoid post-installation problems, reputed companies subject concealed cisterns to stringent testing before release in the market. Discharge volume test is done to ensure release of designed volume of water during flushing. Hydraulic seal testing is done to prevent leakage. Filling rate testing is done to ensure cistern’s refilling at low bar pressure. Water noise test is done to check that the cistern makes least noise during operation. Discharge rate test is done to check that required volume of flushing water gets released within prescribed seconds of time.

n Compatibility test: Concealed cisterns can be connected both to wall hung WCs as well as floor standing WCs. Water supply connection can be made at the back or top of the cistern. The flush pipe for connection to the WC is supplied with the cistern.

n The right choice: In the concealed category, flush valves are an available alternative. Flush valves were prevalent for some time but were soon rejected in view of large volumes of water they use. All the water in the pipe up to the tank gets drained. Cities like Mumbai have banned their use in an effort to save water. Secondly, flush valves make a lot of noise due to the fast flow of water in the pipe under gravity. Concealed cisterns, therefore, are a better choice.

n Money wise: A 120 mm concealed cistern of reputed brands like Geberit costs around Rs 7,500. This may appear expensive in comparison to exposed cisterns, but then there is no comparison! A plain wall with a simple EWC hung to it and no cistern visible gives an entirely different look and feel. If we work out the cost of a flush valve and the pipe over it, the amount is almost equivalent to the cost of a concealed cistern. Hindware imports Italian concealed cisterns and prices them between Rs 6,000 and 7,000.

Geberit, Sanit and Grohe are the top three foreign companies that have made an aggressive entry in the Indian market. Cisterns sold by these companies are highly reliable. Hindware has brought concealed cisterns under the name Concealo. Compared to Gaberit’s 120 mm cisterns, these are only 83 mm thick. Some other companies have also produced concealed cisterns but their performance is debatable. If you have decided on a concealed cistern, it is better to pay more and go in for a branded one.

Concealed cistern manufacturers have first of all captured the five-star hotel segment in India. Now, the retail sector has been entered and a 10-year guarantee is being offered on the cistern. This is a fairly long period for a product like a cistern! Most malls and luxury residential complexes are now opting for concealed cisterns for a modern, world class feel.

More tips will appear next fortnight. Till then, happy building!

(This column appears fortnightly)

The writer is deputy chief engineer, civil, PSEB. He can be reached at www.jagvirgoyal.com 

DLF wants to surrender five SEZ 

REELING under a cash crunch, the country's largest real estate player, DLF, has approached the government on surrendering five of its nine IT-ITeS notified special economic zones (SEZ). Parsvnath has already put on hold its 12 IT/ITeS SEZ projects.

"DLF has nine (notified) IT/ITeS special economic zones, five of them they are dropping... they have made an application and it will come up after the elections," a senior Commerce Ministry official said. However, when contacted, a company spokesperson said, "We do not comment on market speculations."

While it cannot be ascertained as why the company plans to drop some of its SEZs, the entire real estate sector has been hit by a credit crunch, which has affected plans of major realty players.

According to industry sources, firms like DLF and Parsvnath have been unable to raise funds for their SEZ projects. As per the SEZ Act, the tax-free enclaves cannot be surrendered once they become operational. DLF, however, has not started work on the five SEZs that it wants to surrender.

DLF had earlier surrendered its 40-acre IT SEZ in central Delhi. Its nine notified SEZs are located in various states. It could not be ascertained which SEZs are now sought to be cancelled.

According to the official data, the land banks of DLF’s nine notified SEZs are: 10.61 hectares near Hyderabad, 10.12 hectares in Gandhinagar, 12.06 hectares and 10.73 hectares in Gurgaon, 10.24 hectares in Sonepat, 10.33 hectares in Pune, 10.23 hectares in Bhubaneswar, 13.29 hectares in Kanchipuram and 10.48 hectares in Kolkata.

Since the global economy began its freefall, almost all SEZ developers, earlier aggressively pursuing their projects, have been under severe financial pressure. The government has so far given formal approval to 571 SEZ projects and notified about 270. Real estate is facing a major slowdown for the past six months due to global liquidity crunch. Demand for office space has seen a sharp decline, leading to lowering of rentals. — PTI 

Others seek more time

FACED with a severe financial crunch, several SEZ developers have approached the Commerce Ministry seeking more time to complete their projects.

"Some companies have asked for extension of time," Commerce Secretary G.K. Pillai said. Pillai heads the inter-ministerial Board of Approval that clears the proposals for setting up of special economic zones (SEZs) where units are given tax exemptions. Export Promotion Council for export-oriented units (EOUs) and SEZ Units director general L B Singhal said, "It is natural because of the current economic slowdown ... demand for space has also come down." After each stage of approval - in principle and formal - the developer is given time to proceed and return to the government for final notification. Even after final notification, the promoter gets time to make the SEZ functional. Pillai did not disclose the companies approaching the ministry for extension. 

REALTY BYTES
Ascent Buildtech to invest Rs 120 cr in two housing projects

REALTY firm Ascent Buildtech said it would invest about Rs 120 crore in developing two group housing projects over the next three years in the national capital region. The company would offer flats of different sizes between Rs 11.07 lakh and Rs 25.4 lakh in one of its projects — Satya Ville De — in Ghaziabad.

"The property market has taken a U-turn now towards the path of recovery. Customers are now buying property as this is the right time to go for a purchase decision and keeping mind that aspect, we will lunch two group housing projects in Ghaziabad at affordable rates," Ascent Buildtech managing director Suresh Gogia said. The company would develop 598 apartments and a shopping complex over 4.95 acres over the next three years, he added.

It would construct one-three bedroom apartments with sizes varying between 655 sq ft and 1,526 sq ft, he said. "We have already acquired the land for Rs 15 crore and will launch the project in May. We will invest about Rs 70 crore in construction of the project, which will be completed in three phases," Gogia said. The company is expecting a realisation of about Rs 150 crore from the project, he added.  
— Agencies

Mumbai to host international fair

MUMBAI will host the first ever-international trade fair on construction machinery in 2011, the Association of Equipment Manufacturers has announced. Headquartered in Milwaukee, Wisconsin, the Association of Equipment Manufacturers has entered into an agreement in this regard with Messe Munchen, one if the leading organizers of trade fairs. Under the title of 'bC India - A bauma CONEXPO show,' the association said the international trade fair for construction machinery, building material machines, mining machines, and construction vehicles would take place in India's commercial capital. The organisers plan to establish a joint venture to run the show, a media statement said.

Realty tops max investment list 
Metros still hot favourites: Bangalore leads followed by Hyderabad, Chennai 

METRO rail, sewerage and real estate are the top areas attracting maximum investment in the infrastructure sector in metros across the country in the last six months, industry body Assocham said.

Assocham president Sajjan Jindal said the Indian metros continue to be the favourite destination for real estate development. Bangalore is the frontrunner in terms of real estate projects planned for the metros with the investment estimated at Rs 7,990 crore, he said, adding that Hyderabad with projects worth Rs 4,050 in the realty space was in second place. 

Chennai has attracted highest investment in construction and renovation of hotels. Investment of Rs 4,000 crore is being planned to construct a five-star hotel by ITC Limited in Chennai.

Private sector is still bullish on building special economic zones despite the hurdles in land acquisitions and slowdown in world economy. "Investments planned by the corporate sector for developing SEZs in metro cities had exceeded Rs 10,500 crore.

The key challenges faced in the metros include transportation and water supply. "In transportation sector, other than metro rail, Rs 6,283 crore are being pooled in, while road projects have been allocated Rs 5,819 crore," Jindal said. In the last six months metro rail attracted investment worth Rs 34,038 crore followed by sewerage (Rs 21,434 crore), real estates (Rs 15,170 crore), hospitality (Rs 13,010 crore), SEZs (Rs 10, 500 crore), transport (Rs 6,283 crore ), roadways (Rs 5,819 crore) and water supply (Rs 5,757 crore), it said. Construction of Metro Rail is being carried on in three cities including Bangalore (Rs 6,395 crore), Delhi (Rs 8,118 crore) and Mumbai (Rs 19,525 crore), it said.

Mumbai has attracted the highest amount of investment of Rs 16,694.67 crore in the sewerage segment followed by Chennai (Rs 1,588 crore) and Bangalore (Rs 1,354 crore), the chamber said. — PTI