Packed out lock, stock and barrel

More and more people choose movers and packers to shift base, says Peeyush Agnihotri

Most of the jobs come with jabs of transfer. Rather, change of base is an indissoluble part of life. Except for a clutch of blessed few, most of the MNC executives, government officials and job-hoppers have to undergo the pangs of shifting base at one stage of life or another.

Shifting, sparked either by personal or professional reason, invariably comes with an extra shot of nightmare. Moving household goods, inter-city or intra-city, is no Lilliputian task by any yardstick. Dismantling, packing, loading, and above all, knowing what is packed where and why to unload, refit and rearrange all over again, requires an eye for detail, organisational skill, attentiveness, brawn power and above all, a lot of common sense.

Who complains, then, if the job is ‘outsourced’ to movers and packers, even if that means shelling out a few extra thousands, to take care of a heavy heart sparked by broken chinaware or for that matter, a brand-new gizmo.

Though the concept is nearly 20 years old, yet it gained strength just a few years ago, when multi-national corporations registered presence pan-India. Concerned more about their on-transit -executives’ convenience rather than a few extra thousands, encircled with red ink, on TA bills they sought professionals who could transport the household goods in an efficient way within minimum time.

Corporate houses, usually, empanel big-time mover-and-packer (M&P) firms. These packers undertake all industrial, corporate and domestic movements of the company they have legal obligations to.

Transport

The network these M&P companies have is awesome. They can rather teach a lesson or two on management skills to reputed managers. The goods are packaged in such a way that even if there is a vehicle breakdown, the whole packed container can be shifted to another vehicle. Smaller players have a synergistic tie-up in other towns.

The growth rate of this service sector is pegged at a healthy 20 per cent. “If the household goods are shifted through an ordinary road transporter, goods are not taken care of properly. On an average, the cost works out to be Rs 5,000 extra per full-body truck if packers and movers do it for you. It is just a decimal fraction of the quantum of load that reaches safely,” says M.S. Chauhan from Advance Packers.

The recent fuel price hike has made the players reschedule their freight rates and there has been a hike of Rs 4 per kilometre nearly.

The goods are insured before they are moved from one place to another. “As a norm, most of the reputed players either insure 1 per cent as accidental and transport cost or 3 per cent as comprehensive insurance of the declared value of goods,” explains Raman Vohra from RDG Movers and Packers.

S. Nagpaul from Reliable Packers says that the competition is severe. “However, rich and reputed companies do not compromise on quality and rate even if that means sitting idle for a few days,” he says. On an average, a reputed company logs 60 to 70 major movements a year.

Currently, there are more than 70 recognised movers and packers while just a handful of them are reputed. The revenue they generate can be approximately pegged between Rs 15 and Rs 20 crore, according to analysts at Chandigarh.

Packing

A recognised packer has his own trained staff and they usually visit the house, assess the goods and hand out quotations. Packing varies from item to item as also the distance. Delicate and fragile items are wrapped tightly and securely taped before being placed in cartons or boxes. They are then buffered with a shock-absorbing material like bubble sheets or thermocol and placed in a wooden crate. Not only that! After meticulous packing, an inventory of each item is made and they are logged and documented serially, cartonwise, for easier identification.

“It is imperative to know the difference between professional packers and transporters masquerading as packers. Reputed players have workers who are deft in packing while an ordinary transporter will use jute sacks and corrugated sheets to tick off the job,” says Arvinder Thakur from Mapway International, a Chandigarh-based firm, which claims to be one of the firsts to operate from the region.

Joint Managing Director of DRS Group (Agrawal Movers and Packers) Ramesh Agarwal agrees: “New packers enter the industry everyday, finding it lucrative. However, they do more harm than good,” he says.

“The new concept that has caught on is the use of hard corrugated sheets instead of wooden cartons,” Thakur says. Agarwal Movers and Packers, meanwhile, have introduced the concept of portable homes, perfect box and coat carton box.

“Portable home is a leak-and-lockproof container available as per the housing needs of clients. The container’s length can be anywhere between 8 ft to 20 ft. Perfect box is a plastic box available at cheaper rates and coat carton box is a specially designed enclosure for costly apparels,” C.M. Gusain, an executive from DRS Group says.

Baddi units prefer prefabs

Entrepreneurs, in an attempt to curtail expenses and meet deadline, are going in for erect-and-assemble structures, notes Bipin Bhardwaj

A prefabricated structure comes up at Baddi. The prefabrication process has to be encouraged for building houses for the masses within a short span of time. — Tribune photo by Parvesh Chauhan

In an attempt to save money and time, a majority of industrial units coming up in Baddi and Barotiwala industrial areas are going in for prefabricated structures, instead of concrete buildings. The trend has picked up over the last year.

Besides being convenient, there are other reasons too. These units are battling against time to meet the cut-off date fixed by the central government for the start of production.

As per the Centre’s directive, only those industrial units that start production by March 31, 2007, can avail benefits of the new industrial policy. As per the policy, industrial units starting production before the cut-off date would be entitled to get exemption in the sales tax and the excise duty, besides other benefits for 5 to 10 years. Since constructing concrete structures and sheds for running an industrial unit is not feasible in such less time, therefore, industrialists have found an alternative in prefabricated structures. Apprehensions about losses, if the units fail to start production before the cut-off date, are also haunting the industrialists. Scared entrepreneurs have started erecting prefabricated structures on a mass scale, thus leaving the option of shifting to other industrial towns, open.

Talking to The Tribune, Mr AR Singh, President of the Baddi-Barotiwala-Nalagarh Industrial Association, claimed that the pre-fabricated structures reduce the cost of construction to half. Moreover, prefabricated structures can be set up in much less time and transported from one place to another with any breakage.

“Setting up prefabricated structures is not only economical but environment friendly also,” he says.

Mr Sandeep Sharma, District Town and Country Planner, Solan, was reluctant to comment on setting up prefabricated structures by industrialists.

Double whammy for housing sector!

Construction industry spiked by choppy Sensex and hike in home loan rates, says Shiv Kumar

The air seems to be escaping out of the housing and real estate bubbles that grew in size over the past three years. The months of May and June are proving to be decisive to the real estate industry as the stock market remains volatile and rising home loan interest rates portend a prolonged slump reminiscent of the slowdown of the ’90s.

Investors in residential and commercial properties have been undertaking a reality check over the past few weeks, according to observers in the real estate industry. “The stock market crash saw scores of bookings in new projects being cancelled. Quite a few people even chose to forego their initial token money as their investments lost value,” says Ninad Shah a real estate agent at the posh Lokhandwala area of Mumbai.

Though big developers insist that it is business as usual, brokers and real estate agents, who are on the frontlines of the industry, say panic is beginning to set in. “If the stock markets do not begin to look up by Ganesh Chaturthi, a lot of new projects would be stuck,” says Valjibhai Patel another real estate agent.

Developers in Mumbai do not undertake new projects in the monsoons. However, Ganesh Chaturthi sees a spate of bhoomi poojans with bookings for new houses peaking during Divali.

Analysts say buyers like foreign banks and finance companies, who are the big buyers of houses in Mumbai, look for value before shelling out record sums for properties. The feel-good factor of South Mumbai had spread across the city and even to many parts of the country as property prices soared. Apart from full-time brokers, young professionals, who found stock market a lucrative source of additional income invested their earnings into second homes and weekend getaways. “Income tax rebates on the interest component of housing loans also played a big role in people buying multiple properties,” says Sushant Desai, a chartered accountant in Mumbai.

Should the stock market go into a prolonged slump, investors with funds tied in are expected to begin offloading properties. The buzz is that several brokers and big investors have been forced to unload their properties for cash to cover their margins in the falling market. Therefore, the Reserve Bank of India’s hike in rates followed by higher home loan rates by some banks could not have come at a worse time.

Most banks have scrapped the option of fixed rates of interest on housing loans after the rates began to fall in the new millennium. So the prospect of shelling out more money by way of interest on even existing loans is sending shivers down the spine of homebuyers.

No wonder, the moves by public sector banks active in the home loan area are being watched with keen interest. While private sector ICICI and Standard Chartered raised interest rates this month, the PSU banks are playing a wait-and-watch game.

The State Bank of India, Bank of Baroda and Canara Bank are the most competitive banks today offering home loan products almost 75-100 basis points cheaper than private and foreign banks. While the SBI extends loans at 9.75 per cent for a 5 to 10-year tenure, ICICI Bank has its rates at 10.75 per cent - 100 basis points higher. However, reports say these banks may also raise interest rates after the RBI announces its quarterly review of Annual Policy next month.

Incidentally, ICICI Bank latest rate hike is the second increase within a span of one month. After raising home loan rates by 50 basis points on May 5, the bank did an encore by raising rates by another 50 basis points one day after the Reserve Bank of India raised its repo and reverse repo rates by 25 basis points.

According to Chanda Kocchar, Managing Director, ICICI Bank rates in the financial system usually softens in the April-May period. But this year, things were different. The yields on 10-year government bonds moved up by 40-50 basis points and the RBI decision to hike repo and reverse repo rates signalled that softening had not happened, Kochchar told reporters after the bank announced its higher rates.

With the construction industry facing a double whammy, it is quite likely that the exuberance of the past three years would give way to more sober movement of property rates. But much depends on how the stock markets perform in the coming weeks...and the government’s monetary policy next month.

Housing becomes a pipedream
Manoj Kumar

Congress MP from Kurukshetra in Haryana may be thinking to buy a house in New Delhi for Rs 150 crore, but housing is becoming a pipedream for the majority of middle and lower-middle class in India.

With another hike in interest rates by 50 basis points recently announced by the largest bank in private sector ICICI Bank, most of the banks are considering to hike interest rate on housing loans shortly.

In addition, housing prices in metros and major towns across India have almost doubled over the past two years, thus making it difficult for the salaried class to own even a small two bedroom flat.

The floating interest rates are, in fact, today touching 9.5 per cent and fixed rates have moved to 10.75 per cent as against about 7 to 8 per cent interest rates nearly two years ago.

HDFC, the major player in the industry, is still expecting another hike in interest rates by 25 to 50 basis points within next six months.

The Reserve Bank of India (RBI) has also indicated firming up of interest rates due to pressure on liquidity in the short and medium term.

In fact, with bearish run in the stock market, market experts are expecting transfer of funds to the real estate, especially by the speculators thus further fuelling the housing prices.

Mr Ashok Sharma, a chartered accountant said: “In 2004, we were getting a two bedroom flat for just about Rs 10-12 lakh on the outskirts of Delhi, whose cost has now crossed even Rs 25 lakh. At that time, banks were chasing us for taking housing loan at 7 per cent. Now they ask for interest of up to 10 per cent. It implies that for Rs 10 lakh loan for 20 years at 7 per cent interest rate, I have to pay an EMI of Rs 7,753 to the HDFC. But now for a Rs 25 lakh at 9.5 per cent, I will have to pay an EMI of Rs 23,304 to the bank.”

Admitting sharp increase in property prices, Assocham Secretary General D.S. Rawat says: “For middle and lower-middle class, owning a house in metros and even large cities has become a pipedream because the prices of property have sky-rocketed while their salaries have not increased in that proportion.”

Secondly, the high prices, he says, are a result of petrodollar investments that is being parted in real estate by the foreign investors, along with a section of speculators.

Waknaghat woes!

Landowners anguished over Himachal’s first planned township, reports Ambika Sharma

Just a handful of locals preferred to buy flats at the Himuda housing colony at Shogi, which was meant to decongest Shimla. The new colony might meet the same fate, they say. — Tribune photo by Anil Dayal

Waknaghat, which shot into prominence with the opening of Jay Prakash University of Information Technology in Solan district, may soon be recognised for having the first planned township of Himachal. Located ideally on the National Highway 22, the place has been identified by the Himachal Pradesh Housing and Urban Development Authority (Himuda) for setting up a modern township replete with plush residential area, sprawling shopping malls, quality educational institutes, amusement parks and hospitals.

The biggest hurdle, however, has been to identify the requisite land for this ambitious project. While the Himuda has pegged the land requirement at around 5,000 bigha availability of land has been fraught with major hurdles. As much 3,242 bigha of the identified land falls under private ownership and 1,701 bigha is the government land. In addition to this, 323 bigha of land presently earmarked for setting up IT-based industry also falls within the purview of acquisition.

Since a large chunk of the government land lies in the allotable pool, this land is used for allotment to the landless or construction of some government office. The other kind of land available is the common pool. This land is earmarked for community purposes like construction of an approach road, common paths, etc. Himuda was now pursuing the case for transfer of this entire land with the state government.

The five villages of Vakna, Sudharag, Manjhol, Malga, Baroughd and Anji have been identified for private land acquisition. The Himuda has now presented its case before the government for acquisition. Notices under Section 4 of the H.P. Land Acquisition Act would soon be issued to initiate this process, an official reveals. The area lying a kilometre below Kairighat has been extensively surveyed to explore the possibility of maximum land acquisition.

The proposal has, however, not found favour with the villagers. A cross-section of villagers opined that they had severely opposed the Himuda officials who had come to survey the area. “We are awaiting issuance of notices under Section 4. A decision would then be taken about what strategy should be adopted to deal with situation.”

Dependant on cash crops like capsicum, ginger, tomato and other off-season vegetables, the economy of the area is chiefly agrarian. Recalling their earlier experience where land had been surrendered to the Jay Payee University of IT, the villagers said: “There was little gain for the locals from the university despite having surrendered land for it.”

The land acquisition would also leave scores of families landless. This also includes about a dozen families from the SC community who had been allotted land here in 1974. Fear of becoming landless again is now stalking them. The officials of the Himuda, however, maintain: “A suitable provision for rehabilitation would be chalked out and they would be granted land within the acquired area.”

With the government having enforced the land use freeze in the area, the locals are unable to sell or buy land. This has stabilised the land rates here. While the prime cultivated land price stands at Rs 17 to 18 lakh per bigha, the grasslands have recorded a price of Rs 40,000 to 60,000 per bigha.

Officials evaded comments on the issue. Naib Tehsildar Kandhghat Vidyadhar denied having any information about the project and said no papers had been forwarded to the Revenue Department about the case. He, however, added that he had joined in October last year.

Himuda expects to decongest overpopulated Shimla by setting up this satellite town for a population of 30,000. Locals, however, opine that when flats constructed at Shogi failed to elicit the desired result from the residents of Shimla it is unlikely that this township would attract people from the Capital town. They add that the project, which was considered non-feasible some time ago, is being revived to enable few politically sound people to get better remuneration for their land lying in the region.

Availability of water has been another point of concern for the locals who are sceptical whether a population of 30,000 would be able to sustain with the water inflow of Ashwini Khud.

Officials however say: “A study had been carried out to explore water requirement and it has been pegged at 30 lakh litres per day. Ashwini Khud has adequate water for this township.” The fate of this ambitious project depends on the objections raised by the villagers for land acquisition, as there is little unanimity for surrendering private land.

Focus on low-cost housing
Gopal Bhargava

To bring a major chunk of people under low-cost housing scheme is an uphill task for any government. During the past two decades, housing conditions of our metropolitan and large cities have deteriorated at an alarming rate.

Rapid growth of population has been a responsible factor for aggravating the housing crisis in the urban areas. The low and middle-income groups find it difficult to afford exorbitant rents.

As such, our urban poor are forced to live in substandard houses, slums and squatter settlements. Incidentally, our five-year plans have not provided adequate investment in the housing sector. The national objective of housing for the urban poor has remained unfulfilled.

Planning for the mass-scale housing programme necessitates the search for inexpensive substitutes for building material. There is a need for rational utilisation of space and design of the construction outlay.

Building material like iron, cement, bricks and wood have become a costly proposition. Instead of traditional use of cement in the building structures, the use of flyash as a substitute for cement needs to be recognised. In the urban areas, due to the thermal power stations flyash is readily available.

The housing programme should not be rested with a monopolistic government agency alone. However, low-cost construction competition will give a better layout and reduce substantially costs. The prefabrication process of mechanisation has to be encouraged for building houses for the masses within a short span of time. It is possible to build houses quickly through the application of prefabricated materials.

In the layout for low-cost housing, the important consideration is the optimal utilisation of space at minimum cost. The cost of roofing can be reduced by the use of asphaltic corrugated sheets and cement pulp roofing sheets. These have been used in constructing low-cost housing structures. As such, the use of plastic pipes and fittings would also add to some savings with regards to internal and external plumbing and services.

To expedite its low-cost housing schemes, the government should evolve a rational land acquisition policy.

The writer is a former Senior Research Officer Town and Country Planning Organisation, Ministry of Urban Development, Government of India.

TAX tips
Rent rebate for separate floors possible for husband, wife
by S.C. Vasudeva

Q. My wife is a Punjab government employee whereas I am a Central one. We both are drawing HRA. We have taken on rent the ground and top floor of the same house. Whereas my wife is paying rent for ground floor, I am paying for the top floor. Now, kindly clarify whether my wife and I can claim house rent rebate u/s 10(13A) for ground floor and top floor separately from our respective departments by producing rent receipts.

— A.K. Saini, Chandigarh

A. In case separate floors have been taken on rent vide separate rent deeds it should be possible to claim HRA by both of you in your respective returns.

Documentary proof

Q. (i) I am a retired government officer drawing pension. Recently I had carried out major renovation of my house in my village. The cost of renovation was as follows:

1. Rs. 4 lakh contributed on different dates by my NRI son through bank in India.

2. Rs. 2 lakh contributed on different dates by another son who is a central government officer through bank.

3. Rs 4 lakh home loan taken from bank on the name of my wife (first applicant) and myself to be repaid in EMI.

4. My savings

Please advice

Is the amount contributed by my sons towards specific purpose of renovation of my house added to my income? Are not these tax-free?

What documentary evidence should I have in my possession in respect of amounts sent by my NRI son and another son, to meet the IT requirement?

What documents should I maintain towards renovation of my house?

Any other formalities to be completed from IT point of view

— Surinder Singh Dhillon

A. The amount received from your NRI son would not be treated as income as any amount received from a son is exempt from the provisions of the Section 56(2)(v) of the Income Tax Act, 1961, (the Act). You should keep with you the following in this regard: a) Inward remittance certificates of the money transferred by your son through bank. This would be given to you by your bank in which the amount has been deposited.

b) A letter from your son regarding the amounts sent with a note that these amount are his contributions towards the renovation of the house and that these may be treated as gifts to you.

c) Copy of the letter written by you acknowledging the receipt and accepting the gift.

d) Copy of passport of your son.

e) His address outside India.

f) Supporting evidence regarding his salary/income outside India.

(ii) In respect of contribution from your son resident in India, please obtain letter about the making of gift to you with his Permanent Account Number and details of the cheque number of his bank account from where the amount has been transferred to your account. Copies of the letters acknowledging the receipt and accepting the gift by you would also be required.

(iii) It would be better to keep a record of the major vouchers in support of the renovation expenditure. It would also be better to obtain a valuation report from the approved valuer in support of the total expenditure incurred on renovation.

(iv) The fact that you have incurred a substantial amount on renovations of your house should be disclosed in your IT return by way of a note, such note should indicate the total amount incurred during the year, nature of renovation and sources through which the expenditure has been met.

Spouse’s plot

Q. I purchased a plot on the name of my wife out of my income nearly 25 years ago. I was serving in the Army then and now retired and wish to purchase a house for our living. Since the house will be allotted by Army organisation on my name only, can my wife sell the old plot on her name and contribute the sale proceeds to buy the new house (within one year of selling) w/o paying any capital gains tax or please advise us the correct procedure/liability of tax etc.

— Kulwant Singh, Mukerian

A. As indicated by you, the plot was purchased by you out of your income but the same was registered in the name of your wife. I hope you have declared this fact in your income tax records or any other government record that the plot though in your wife’s name is your property. If so, it should be possible to save the capital gain tax on the sale of plot, in case the capital gain earned on the sale of plot is invested in acquiring/constructing a residential house within a period of one year before or two years after the date of sale of plot in case a built up house is purchased/acquired by you.

Read Section 24

Q. I am working in National Fertilisers Limited, (A Govt. of India Undertaking) and have drawn Rs.3 lakh as house building advance from my employer under the employer’s own scheme against the total estimate of Rs 5,35,000. Balance amount of Rs.2,35,000 was drawn as non-refundable loan from NFL EPF Trust against construction of house from CPF contribution as per details given below:

Own CF contribution Rs.1,56,388;

Employer’s contribution Rs 78,612;

Total Rs 2,35,000

Kindly advise me if I can avail the benefit under Section 24 on account of “loss” of deemed/accrued interest” on non-refundable PF loan for house construction. I may further request you to kindly also advise me if I may request my employer to issue necessary certificate for deemed loss of interest for availing benefit under Section 24.

— J.S. Walia, Bathinda

A. A deduction under Section 24 of the Act is allowable in respect of the interest paid for the amount borrowed for construction of a house. In my opinion, there is no concept of the allowance of the deduction of ‘deemed loss of interest’ under Section 24 of the Act.

Joint registry

Q. I and my wife are Punjab government employees. We purchased a plot a few years ago and had a joint registry of this plot. Only my wife has taken HBA on this plot and is getting IT Rebate. Now we are living in this home. But now the question is- Can I take HBA on this constructed house? What type of the mode of loan (i.e. for addition or renovation or alteration on this constructed home) can be taken because I have joint registry.

Can I also take IT rebate on this loan, which I want to take?

— Gurjit Singh, Rajpura

A. Since both of you are joint owners of the house, in case the amount is borrowed for the construction of another floor and the amount so borrowed is utilised for the said purpose, it should be possible for you to claim deduction of the amount of repayments made in a year against your total income under Section 80C of the Act. I may add that the deduction under the said Section is limited to Rs 1 lakh and covers a number of other contributions such as life insurance payments, PF contributions etc.

City of Garden expands
Jangveer Singh

Get hold of an apartment is the first advice given to any new entrant to Bangalore. As most of them are techies, or people working in the IT sector, the advice is well meant.

IT-savvy professionals can easily pay off equated monthly instalments (EMIs) that range between Rs 15,000 to Rs 20,000 per month due to their fat pay packages. With skyrocketing rents in the garden city, the EMI usually is a little more than the rent the techie would have to pay.

There are multiple choices, on paper at least, if one scans through advertisements in the newspapers. However, most are out of range of even well-heeled persons.

With the price range of flats in city centre touching Rs 1-crore mark, or even more, one has to broaden his search. Only a lucky few are able to get a property at a pre-launch price. Most of the advertisements are for the flats left in complexes, which have been completed or are nearing completion.

However, one has to keep moving further to the outskirts of the city for cheaper alternative. But these apartments, which are moderately priced and of medium construction, are situated in areas with kutcha approach roads and tight parking spaces.

Before a project is launched through advertisements, it is publicised that 40 to 50 per cent of the flats are already sold. When the launch actually take place, the builder tells prospective clients that only a few flats are available and they have little time to make up their minds. Both early birds as well as the builders benefit in this way. The late purchaser also benefits if he holds on to the property till it is constructed due to 20 to 30 per cent annual increase in apartment values.

Land rates in central locations in the city have reached a high of about Rs 4,500 per square feet. Even in the areas off Bannerghata road, which is 15 km from the city centre and does not have proper roads, the prices have gone up to Rs 3,000 per square feet. The airport at Devanhalli village, about 30 km from the city centre, will come up after two and a half years, but this has not stopped builders from selling villas and row houses near the proposed site.

Before a project is launched through advertisements, it is publicised that 40 to 50 per cent of the flats are already sold.

Buzz on Bourses
Majestic ties up with Ansals

New Delhi: Majestic Properties, a real estate player of Delhi, has joined hands with Ansal Properties and Infrastructure for a joint venture to develop a Rs 500-crore project in Mohali spread over 250 acres. The project would be an integrated township that would have a group housing, multiplex, hotel and a golf course as well. The project will get underway in the next quarter and take five years to complete. — TNS

Omaxe township

New Delhi: Omaxe, a multi-million real estate major, has announced to set up new age lifestyle living facilities for the largest city of Madhya Pradesh, with Omaxe City - Indore. Spread over an area of 89 acres with an investment of Rs.200 crore, the township will provide luxurious facilities including residential plots, expandable villas, hospitals, commercial complexes and schools. — TNS

Crossings Republik

New Delhi: Crossings Infrastructure Pvt. Ltd., a real estate company promoted by seven leading builders in Delhi and the NCR region, has announced plans to introduce in India, the first-ever new community global city — Crossings Republik. A highly premium township, Crossings Republik, will be located on NH24, across Hindon river in Ghaziabad and cover an area of 300 acres in Phase I. The company plans to acquire an additional 200 acres shortly, taking the total township area to 500 acres. The company plans to invest around Rs.3,000 crore in the project over the next five years. — TNS

Stake in Mysore Cements

Kolkata: After hiving off Saurashtra Chemicals Limited last year, the S K Birla Group might sell its stakeholding in Mysore Cements Limited, which has become sick due to complete erosion of networth. It is a logical conclusion to exit the cement business at a time when there was a wave of consolidation both in the country and overseas, company sources said. He said that it did not make any sense to run a 2 million tpa cement unit as operations would not become viable due to high transportation costs. Mysore Cements has plants in Karnataka and Madhya Pradesh, and a grinding unit in UP. — PTI

BoB initiative on home loans

New Delhi: Announcing that the bank will not hike the interest rates for now, the Bank of Baroda (BoB) has unveiled a new finance product here, under which home loans to urban customers would be sanctioned within six days. “There are no immediate plans to increase the interest rates on home loans as of now, but we are evaluating this. We want to act with prudence and not rush in this regard,” BoB Chairman and Managing Director Anil K Khandelwal told reporters here. He said that the ‘urban retail loan factory’, third in the country after Mumbai and Ahmedabad, has been initiated to provide hassle-free home loans to the customers, keeping in mind the fast life and growing need of home loans in urban areas. — UNI

Gallops in Gujarat

Ahmedabad: The Gallops, India’s first designer mall developed at an handsome cost of Rs 80 crore, was formally launched on Satellite Highway Cross Roads in the city. The Gallops, spreads over 350,000 sq ft area with offering of almost 2,25,000 sq ft shopping area, will have a huge parking space with facility to park over 700 cars. — UNI

Simplex to raise Rs 921 crore

Mumbai: Engineering procurement and construction company Simplex Infrastructures Ltd will raise over Rs 921 crore ($200 million) from the international or domestic market and split the equity shares of the company in 1:5 ratio. The Board of Directors approved raising the amount through the issue of Foreign Currency Convertible Bonds, GDRs, ADRs or other securities, the company informed the BSE. — PTI

Mega orders from NHAI

Mumbai: SREI Infrastructure Finance Ltd has said it has bagged orders worth Rs 3,000 crore from the National Highway Authority of India (NHAI) for road construction projects. The projects would be carried out on build-operate-transfer (BOT) basis and would be completed over the next 18 to 36 months in partnership with several leading construction companies throughout India, the company informed the BSE. — PTI

SEZ firms may come under Right to Information Act
Manoj Kumar

The Reliance, DLF and other big players investing in special economic zones (SEZs) could be soon asked to provide information under the Right to Information (RI) Act, as they would be getting subsidised land from the state governments.

“We have not specified the name of any company, but any organisation or institution which gets government aid in any form would be covered under the RI Act,” says Mr M. Veerapa Moily, Chairman of the Administrative Reforms Commission.

“There is already a provision under the Act that on demand any organisation, NGO or civil body, which is getting government aid, should provide all information regarding its activities and impact of its working on the community and individuals,” he says.

Notably, a large number of industrial houses and MNCs are getting subsidised land and tax exemptions from the state and central governments in the name of investing in SEZs.

The farmer bodies and consumer rights bodies can, consequently press the companies in Punjab, Haryana as well to provide information on the agreements with the state governments and their working.

Mr Moily states that a key recommendation is setting up of public records office in every state so that officials cannot take the plea of unavailability of records for not providing information. “One per cent of the budget for infrastructure sector can be given for creation and maintenance of this office,” he says.

Estate talk
Buyer to select the cost of interiors
Shveta Pathak

Gulshan Kumar

Ludhiana-based GK Builders has chalked out a plan to develop several societies in “good locations” wherein the company would provide apartments between Rs 14 lakh and Rs 20 lakh.

The company, which has already acquired site for the project on Gill Road, Pakhowal Road and Ferozepore Road, would take more sites and has planned around five to six societies in the coming two years.

Managing Director Gulshan Kumar says: “Our aim is to cater to the growing need for houses arising in Ludhiana. We have estimated that a fresh demand for at least 3,000 houses is created every year in this city alone. Even if we cater up to 25 per cent of it, we will have a substantial share in the market.”

The areas where GK Builders aim to build these societies include Sarabha Nagar and Gurdev Nagar, besides other prime locations on Pakhowal, Ferozepore and Chandigarh roads.

On the need to come out with such a project, Mr Kumar said: “For the middle-class, in particular, buying a house in the last two years had become increasingly difficult. This project would cater to that segment.” The company would give self-financing or financing through banking options to its buyers.

As per the plan, each apartment would be a two or three bedroom in an area of 950 to 1,500 square feet. The societies would be equipped with facilities like swimming pools, play areas etc.

Explaining the pattern on which apartments will be developed, Mr Kumar says: “One can call it improvement trust’s pattern wherein a buyer is given the option to select the cost of interiors etc as cost varies in accordance with that.”

DESIGNER’S corner
Jazz up hearth and home

Fireplaces can be ornamental too, suggests A.P. Singh

With the rising trend to explore outdoor parties and summer barbeque to chill out, let’s analyse a décor feature which looks stunning both inside your home and outside in the garden. Fireplaces look stylish, add warmth to your home both figuratively and literally and if used innovatively, can be a source of feeding your belly too.

Fireplaces tend to have a habit of being the focal point wherever they are installed. They stand quietly in you living room, where family tends to get together in the evenings to spend time with each other. Wing Chairs can provide company to the fireplace whilst offering invitingly cozy comfort to the family; generally the elders. Christmas lunch is unimaginable without Santa sitting on his Wing Chair eating mince pies whilst enjoying Sherry with children busy opening their presents in front of the fireplace. Regency Chairs or George V Chairs look better if you have installed the fireplace in your formal seating. Install a fireplace in your bedroom if it’s large and is well frequented by your loved ones. Nothing beats being snug like a bug in a rug in winters!

Fireplaces are available in wood, marble and stone. Wood can be crafted aesthetically to complement the interiors, whilst stone and marble provide the much required safety feature in a heat emitting log fireplace. Wood and stone combinations offer natural beauty and add dimension to a space and are much safer than resin surrounds. Outdoor fireplaces require special considerations, since they’re exposed to vagaries of the weather. Consider lightweight concrete or painted/plain ceramic tiles; combining with natural stone surrounds and mantle piece. Composition of white cement, natural sands and mineral pigment achieves every desired colour and surface texture, while maintaining durable physical properties, often exceeding that of natural, cut building stones. It can be easily stained or given a patina to achieve different looks.

Fireplaces can be purely ornamental devoid of any wood/coal burning facility. Inside you keep brass bucket holding only dry flowers, large porcelain vases or other decorative pieces covering where coal and wood recess. Outside you keep potted plants within the surround of the fireplace and topiary pots on either side will look spectacular.

Fireplaces in your garden can be easily made functional by burning non-smoke emitting coal and log. Nothing beats warming your hands in front of on open fire in the winters whilst sharing a hot toddy or a cuppa with your friends and family. You may even roast almonds, cashews or peanuts and pop fresh corn by hanging a sand filled iron platter from the mantle piece to accompany your drinks. Use iron pots to keep your gravy warm while you enjoy fresh nans emerging out of your tandoor by the side, in which you could experiment baking pizzas for a European break. Inside though, in the absence of smoke chutes and chimneys, install a fully functional heat emitting electric fire with fake coal/log burning effect. You can also opt for a decorative electric fire with deceptive live flames and no heat.

It’s paramount to choose a style of the fireplace which matches the interiors and exteriors of your room. Opt for toughened glass, plain woods and steel fireplace for contemporary looks, Roman pillar to carry the European interiors, Tudor beams or Gothic arches for that quintessential English room. A Baroque fireplace would conflict with a Prairie home. In the garden, too, there are plenty of ideas to explore. If you have a sphinx to guard your porch, then have pyramid for a fireplace with a straight slab balancing precariously on top to form the mantle piece. Paint it in wild colours for a bohemian look or let mosaics patterns with tile and mirror serpentine around for a Moroccan theme. Do a ‘Sanjhi’ to match the rustic or add bright yellows/ greens/blues with stone and pebble for your Mediterranean look.

From a craftsman bungalow to a suburban rambler to your backyard, no matter where you put one, a fireplace adds drama and enjoyment to your home, not to mention increasing its value.

Builders go flat!

Apartment bug bites mofussil towns in Punjab, says Pradeep Sharma

As far as new constructions are concerned, Chandigarh’s periphery is bursting at seams. However, the plotted colonies are becoming a thing of the past. With the land prices hitting the roof, multi-storeyed flats have replaced the plotted colonies.

The latest trend in modern living — the apartments — is the in thing. Not only Zirakpur and Mohali, big builders are now launching new apartment projects in even smaller towns such as Kharar, Morinda, Lalru and Dera Bassi.

Taking a cue from Chandigarh’s periphery, builders in all major cities of Punjab are going in for the construction of flats changing the very concept of “home”.

With the construction cost going beyond the reach of a common man, even the buyers seem to be taking fancy for the apartments. Explaining the logic behind multi-storeyed projects in major cities, a Delhi-based builder says that the multi-storeyed complex proves to be economically more viable than the freehold colonies. As major chunks of land are not easily available in these, the land for residential township is selling on a premium

Since we have to make do with the available land, both for the commercial and the residential project, the apartments are the best bet for us and the buyers, he adds.

“Selling plots after developing a colony is no longer a viable option as large chunks of land are not available in these towns at affordable prices. A big builder now prefers to build multi-storeyed flats which has ample market among the middle class,” Sunil Bandha, General Manager of the Silver City Construction Limited, says.

The boom in the real estate market has pushed the land out of the reach of the colonisers and the common man. That is perhaps the reason why big builders such as the Omaxe, the Parsavnath, the ATS, the Silver City, the Motiaz, the Gulmohar and Shivalik Vihar have gone in for constructing flats.

Building flats on a piece of land is an economically viable option as construction of seven storeys, including the ground floor, is allowed under the building rules. “Building multi-storeyed apartments is the only option left for the colonisers as land and construction cost is prohibited,” says Pawan Bansal, Managing Director of Motia Construction Company.

Another coloniser says an acre of land cost anything between Rs 5 and 6 crore in the prime locations in the Notified Area Committee (NAC) limits of Zirakpur. Other towns in the periphery are also going the Zirakpur way.

The land and construction cost discourages the colonisers to offer freehold plots. Anyway, multi-storeyed flats, apart from the cost factor, have certain inherent advantages such as security, which is of prime importance in fast-developing towns, he adds.

Builders say that with IT parks planned in Mohali, Chandigarh and Panchkula, besides Zirakpur-Dera Bassi and Banur-Rajpura belts, a large number of trained manpower would throng these areas. With security being their prime concern, the apartments would find good market among them. Moreover, IT and other professional coming to the metro cities would be more “exposed to the apartment culture”, they reason.

Commercial ventures thrive in residences

People have converted residential plots into commercial sites in Gurgaon, notes Ravi S.Singh

Thousands of persons representing the high-heeled section of the society residing in posh colonies of the city have devised a paying but illegal way to enhance their income and status by taking the advantage of the high rise in value of real estate in Gurgaon on one hand and colluding with officialdom on the other.

The authorities, which over the years had looked the other way, have now woken up to the malady. The Town and Country Planning Department recently sealed about 118 such premises.

The residents have either converted the entire plot meant for residential purposes into commercial sites or have converted it in parts. While some have converted the area into offices of property dealing, others have let out the premises on more daring ventures like hotels, schools and furniture showrooms and boutique shops.

Individual owners of premises collect thousands of rupees as monthly rentals or are doing roaring business.

Although the malady is widespread in all parts of the city, it is more pronounced in licensed areas of the city like the DLF City and Sushant Lok and to visible extent in HUDA sectors. The licensed areas are those, which have been colonised by the private builders.

The authorities, which over the years had looked the other way to the crime, have now woken up to the malady. However, it appears that they are taking half-hearted measures under duress and in a grudging manner. According to many, such piecemeal measures are not doing the image of this government, which continuously professes transparency and equality in administration, any good

The Town and Country Planning department has launched a drive against these premises. It recently sealed about 118 premises. However, immediately after the first phase of the operation in Sushant Lok and partly in DLF area, the authorities showed leniency that the premises would be de-sealed if the violators gave affidavits that they would close the commercial ventures in a fortnight.

According to the Administrator, HUDA, Gurgaon circle, Mr S.P. Gupta, notices have been sent to about 994 persons who were indulging in the crime. However, according to many, this figure is farcical and a gross understatement.

This appears to have merit as a drive in DLF City, Sushant Lok and other licensed areas of the city reveal that they are teeming with commercial ventures.

The exercise of sending notices has been going on for a very long time. The Town and Country Planning department has, in large number of cases served three notices. But the culprits did not respond and also did not stop the ventures. The general opinion is that in such a scenario there was not justification in the leniency.

Also, many fail to understand why the authorities are not going whole hog in sealing the illegal premises indulging in commercial ventures in residential pockets. The justification given by the authorities, including the Deputy Commissioner, Gurgaon, Mr R.P. Bhardwaj and Mr Gupta, that the phased manner was on account of shortage of police personnel, does not convince many for the alleged discrimination in choosing the illegal premises.

The top functionary of DLF Management has already gone on record to say that the sealing drive was highly discriminatory in its approach.

In HUDA sectors, a proceeding of action is afoot against 289 persons for running commercial ventures in residential area. According to the official version, 17 plots have been resumed by HUDA in connection with the crime.

Hike in collector rates resented
Rahul Das

The recent hike in collector rate of property in Ambala has added a fresh dimension to the real estate scenario.

There has been a substantial increase in collector rate of residential as well as commercial property. The hike will prove to be a major revenue earner for the government. But, for the common people who are keen to buy property, the increase in collector rate has not been a pleasant information.

Property dealers, developers, agents and advisors have strongly opposed the substantial increase in collector rate of property. As a matter of fact, a delegation went and met the Deputy Commissioner Ambala, Mr JP Kaushik. They submitted a memorandum to him with a request that the collector rate should be brought down to the old collector rate.

Real estate observers are of the opinion that the increase in collector rate is likely to be a dampener in property transaction. They feel that earlier the rate was much less than the market rate which meant that there was substantial “saving” in property transaction. The saving was in terms of lower registry fees.

However, with the hike in collector rate, the registry fees will proportionately go up.

Vaastu Views on kitchen

• The kitchen must be situated in South-East.
• The face of the cook should be towards the East.
• The water tap in kitchen should be in the North-East direction.
• It is better if the stone, on which food is cooked, is red in colour.