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Baddi on a roll
Extension of industrial package has erased the slump, reports Ambika Sharma
The extension of the industrial package has come as a welcome sign to the realtors in the industrial hub of Baddi-Barotiwala-Nalagarh in Solan district. The package, which was to expire in March 2007, has now been extended by four years. The rates, which had started falling by as much as 15 per cent, have now started picking up. The rise has been a phenomenal 10 per cent in the various areas of this industrial area. An amalgamation of a number of factors have contributed to this new boom. The much-awaited development authority has been put in place though it is yet to be made functional. The extension of the package has come as a big encouragement to the government, which has now stepped its drive to seek extension of railway line connecting the industrial area. The government is making all efforts to provide adequate land to the Inland Container Corporation of India to set up a container to facilitate the industry. The constitution of the Nalagarh-Baddi-Barotiwala Development Authority (Naabda) is being seen as a positive step to bring about planned development of the area. “Its constitution, though belated, would now earmark specific staff and funds for the development of this industrial area. While the much-required additional staff would help tide the pending files it will speed up the development of the area. “The fact that staff in crucial departments of Town and Country Planning, revenue, electricity, irrigation, public health and industries has virtually remained what it was before the industrial package the work load on the existing staff was immense” opines a real estate dealer of Baddi. Optimistic on the region developing into a planned city soon, Prem Goyal, a realtor says: “With planned housing colonies coming up in Baddi, the area would become a planned city like Gurgoan in the near future.” An added advantage for the realtors investing in Baddi-Barotiwala-Nalagarh area is the presence of a plain surface unlike any other place in Himachal. Further its proximity to Chandigarh, Punjab, Mohali and Panchkula is being seen as another reason alluring investors. The rush of industries has increased the pressure of housing in Panchkula and Chandigarh. According to an estimate, nearly 60 per cent of the company executive commute daily from Panchkula while another 10 to 15 per
cent stay in Mohali and Chandigarh. “A three-room set, which was available at a modest Rs 4,500 per month at Panchkula has now shot up to Rs 8,500 per month. This has increased the demand for residential colonies in the industrial areas here. The extension of the package has removed the uncertainty about the future of real estate,” observes a company executive. The steps taken by the state government to encourage opening of an inland container depot and laying of a railway line are other measures which have send positive signals among the investors. “While this would make available, the basic amenities to the industry, it would step up investment here and contribute to the real estate boom” observes an investor. “The advantage of investing here is the presence of real end-users. With thousands of company executives commuting from Panchkula, Chandigarh and Mohali, the development of residential houses is being eagerly awaited. They are keen to settle here once the flats become operational. The advent of private entrepreneurs in crucial fields like health and education has given the much-needed boost to the investors. The Himachal Pradesh Housing and Urban Development Authority (Himuda) has acquired land at Kalujhinda for an educational institute. “The authority would invite expression of interest for this land and then it can be auctioned to a private entrepreneur for setting up a quality educational institute,” concedes Chief Executive Officer of Himuda Y.R. Sharma.
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Hoteliers check in
The industrial growth story of Himachal Pradesh had so far failed to attract the hospitality sector. But the wait might not last too long for the industrialists in the boom town as Baddi has finally caught the eye of the hotel industry.
From Tatas to the Escorts Group — everyone seems to have discovered the Baddi- Barotiwala belt. As of date, those visiting the mammoth factories, which have come up in the belt, have no option but to travel down to Panchkula or Chandigarh, because no good hotels are present in Baddi. Though the hill state has attracted investments of over Rs 19,000 crore, it still lacks proper infrastructure in the industrial townships of Baddi, Paonta Sahib and Una. Officials in the Tourism Department of Himachal Pradesh say that they have received an offer from the Tatas, who are looking for a suitable site near Baddi to set up a budget hotel. The company recently launched its chain of budget hotels called Ginger Chain at some of the key cities across the country. Tatas propose to set up a Ginger Chain hotel in Baddi now, designed to meet the needs of the business traveller. The hotel will be designed for a comfortable stay at a relatively budgeted price. This hotel will not offer five-star facility but offer all ready-to-use modern facilities like cyber cafes, ATMs, 24-hour check-in kiosks, wi-fi facilities, a gym and conference facilities. Such hotels will also be set up by the Tatas in Hardwar, Bhubaneshwar, Pune and Mysore. It is learnt that the company officials have already met top state government officials and made their presentation before the government. The hotel will offer anything between 50 and 60 rooms, with a tariff range of nearly Rs 950 per day. Earlier this year, Country Inn and Suites by Carlson had also announced plan to set up a hotel in Baddi. The company officials had said that they were in the process of identifying land for setting up the hotel. Even the Himachal Pradesh Tourism Development Corporation is mulling a proposal to set up a hotel in Baddi. Meanwhile, KK Trams property at Jabli is now being taken over by the Escorts Group. Escorts has reportedly struck a deal to re-launch the project by adding facilities like a fast food joint for the highway traveller and cable car at Kasauli.
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Property prices go down as road gets elevated
The proposed elevated road, which has brought into focus a major developmental project to decongest the city and pave way for thousands of devotees for easy access to the holiest of the shrines, Golden Temple, has dampened the property prices on G T Road.
The project has received tremendous enthusiasm for the future planners of the city as well as the residents who have been crying hoarse for the many years in view of the large inflow of tourist traffic. Property rates, which got a shot in the arm after the completion of hi-tech bus terminal last year, have once again dipped much to the chagrin of the real estate developers. Bhupinder Singh Billa, a property dealer on the periphery of the elevated road, said the rates which had touched Rs 35,000 to 40,000 per square yard for commercial dwelling have suddenly shown a downward trend and the buyers are not willing to offer more than Rs 25,000 to 30,000 per square yard. Although the construction to the preliminary structure has just started, people living in the area have already started witnessing traffic snarls. The completion of the project may take more than a year and the residents may face problems till the project’s completion. He said thought the prices around bus stand had remained firm but Ram Talai to Bhandari bridge area has shown a decline. He said the list of prospective buyers around this area have also reduced which clearly sends wrong signals. A few shopkeepers and residents, while talking to The Tribune, said they were not sure how the elevated road would shape up. Moving ahead towards Jalandhar on the G T Road, near Manawala, with the proposed SEZ which was notified last month by the state government, property prices on the main road have shown greater firmness. A large number of prospective entrepreneurs and businessmen are now eyeing the property as according to industrialists this location is highly conducive for the future development of the city.
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Ansals get nod for SEZs
Ansal API, a real estate developer of Delhi, has got the formal approval from the Haryana government to set up new single product engineering-based industrial Special Economic Zone (SEZ) at Murthal. Ansal would invest around Rs 800 crore.
The company has also got an in-principle approval from the Rajasthan government to set up another SEZ in Neemrana. It will involve an investment of Rs 6,553 crore for a multi-product based industry SEZ spread over an area of 2,500 acres and is expected to be completed within six years, Sushil Ansal, Chairman, Ansal API, says. He says the Murthal SEZ in Sonepat district on NH1 would be spread over an area of 255 acres and expected to be completed within three years. The reason behind selection of Murthal as engineering based industry SEZ is that last year out of the total export worth Rs 1,320 crore from Sonepat about Rs. 732 crore came only from engineering goods. It is expected that there would be an initial export turnover of Rs.400 crore to Rs. 450 crore. This SEZ is also expected to generate employment for approx. 20,000 persons. At Ansal API SEZ the land will be equally divided between processing and non-processing areas. The non-processing area will include residential zones, commercial complexes, community structures, hotels, banks and all other facilities that define a modern lifestyle. Of the total area, that is 255 acres of land, 30 to 35 per cent area will be dedicated to residential zones, 15 to 20 per cent to commercial and between 25 per cent and 30 per cent area to common infrastructure like roads, parking areas, green belts and the like. Ansal API for its SEZ at Neemrana- Behror, NH-8, Rajasthan has obtained in-principle approval. This multi-product based industry Special Economic Zone is on NH8 near Rewari on 2,500 acres of land. The reason behind selection of this SEZ is due to the good connectivity by rail, road and air, availability of power and skilled labour, apart from the developed industrial corridor of Gurgaon, Manesar, Dharuhera, Bhiwadi, Bawal and Neemrana. Ansal API Chairman said: “These SEZs will boost economic development and provide fillip to the local economy of these towns by providing direct and indirect employment to the youth.” Ansal API is also planning to set up IT parks at Lucknow, Chandigarh, Panipat, Meerut, Jaipur, Jodhpur and Patiala.” The group has already received approval for IT-based SEZ in Greater Noida.
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Andhra makes a move to restore Charminar’s glory
Creation of buffer zone hits traders, says Ramesh Kandula
To reinstate this historic core as a commercial hub and as a centre of activity, the Municipal Corporation of Hyderabad had undertaken pedestrianisation of the immediate area around Charminar. The plan envisages decongesting the historic area around Charminar and creating a buffer zone, which enables a leisurely appreciation of the intricate carvings of the monument. The project also involves restructuring the historic precincts with the provision of civic amenities, traffic infrastructure, storm water drainage, introduction of heritage walks, pedestrianisation and beautification of Laad Bazaar, widening of ring roads, restoration of Pathergatti facades and a comprehensive signage system for Charminar precincts and restoration of Char Kamans. However, the project, though contemplated more than a decade ago, moved at a snail’s pace due to innumerable constraints. Initially, the Forum for Better Hyderabad, an environmental group, opposed the project prepared by an Ahmedabad-based consultant, Vastu Shilpa Consultants on the ground that several protected monuments in the surroundings would be defaced if the proposal were to be implemented. The proposal of Vastu Shilpa Consultants was shelved and a revised proposal was floated and accepted by the state government. The project received a fillip last year with the city administration taking quick decisions with regard to widening of roads, shifting of the Charminar Bus Terminal and improving traffic junctions in the old city. The government had already spent Rs 12.5 crores on the development works and Rs.10 crores was earmarked in 2005-06. A Rs.50-crore proposal was also being proposed under the Jawaharlal Nehru Urban Renewal Mission. According to officials, as many as 782 properties, most of them housing petty traders, would be affected. Of these, some properties have already been bulldozed, and 355 properties will be acquired by the Municipal Corporation of Hyderabad within a month. The bustling Charminar Bus Terminal has already been relocated near Falaknuma Palace to ease the congestion. A multi-storeyed parking complex will soon come up near the Pension office. Plans are being finalised for inner and outer ring roads around Charminar for which 11 roads have been identified. Beautification of the immediate area around Charminar and creation of a buffer zone, however, still hangs fire. The Majlis-Ittehadul-Muslimeen, which has a strong political presence in the old city, has opposed creating a 30-metre buffer zone around Charminar, as this would affect the traders. Looks like the dream project aimed to recapture the past glory of the magnificent structure would have to wait for some more time before it can be completed.
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GREEN house A green screen does the same to a garden as a frame to a photograph, says Satish Narula
Hedge is the face of your house and garden. A poorly maintained hedge or a mixture of plants unkempt; give the home and the garden a shabby look. This is normally seen in government accommodations or in the houses where the owner does not take interest. In fact, the reason behind this is the wrong selection of hedge plants in the beginning. As it is almost a permanent feature, one should take special care in the beginning. If you are in the process of planning your garden, take a tip on selection of a hedge. The basic feature of a good hedge is that the plant should respond well to repeated clipping giving new dense growth, vigorously. One plant that fits this description most is Clarodendron inerme called Clarodendron (bitter leaf) in general terms. It forms very thick hedge and the best thing about this plant is that the more it is pruned, thicker it becomes. The leaves are oval, deep green and shining. It is drought resistant too. It does not have any serious insect pest or disease and is not eaten by stray cattle or goats. It is easily propagated through cuttings. The plant-to-plant distance should be kept at one foot and there should be two-rows-staggered plantation. Another hedge plant that is very popular is Murraya exotica, Kamini. The leaves are very shining and deep green. It also forms a very thick hedge but the problem with it that it is very prone to powdery mildew disease. If not checked in time it covers the whole hedge and the leaves lose lustre. In severe cases the plants start dying one by one leaving gaps in the hedge. In case you have already this hedge growing, spray wettable sulphur or karathane, dissolved at two gram or one millilitre respectively to a litre of water and spray the hedge whenever you find white powdery growth. Repeat the spray after a fortnight. Duranta is another very good plant for hedge purpose. It is available in three varieties, the Golden Duranta, the all green and the variegated form. As this plant takes pruning very well it is also used as ground cover or as an edge plant. The plant needs repeated cuttings and when you miss it you get a rising growth, near the terminals and the lower portion starts allowing a see-through. It is also easily propagated through cuttings. One hedge that was planted in the early times was Aliar with long and thin leaves. But its use reduced as it becomes barren at the base defeating the very purpose of a hedge. Those who go in for Hibiscus or Bougainvillea as hedge have to be very careful in handling them. As these are flowering species and their pruning has to be regulated in a manner that it does not affect flowering. For quick and temporary screening, one can go in for sweet peas, while the main hedge grows. Normally at the time of planting, the hedges are planted without much care. As the performance of a hedge depends upon its growth, initial preparation of soil is must. The soil should be dug deep, nearly a foot or so and refilled with a mixture of soil, sand and well rotten farmyard manure. It should also be treated for white ants by mixing lindane dust. After planting the bed should be treated with chlorpyriphos to keep the white ants at bay. Do not neglect them so far as nutrition is concerned and give at least one annual dose of manure in December. During growth period, that is monsoons, give nitrogenous fertilisers.
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Family land goes commercial
In a rush to build shops, offices and houses worthy of a thriving economy, a new elite is emerging in India — young men asked to turn plots of family land into a property business. The 30-something businessmen have set their sights on capturing a piece of an estimated $2 billion of annual inward investment earmarked for property in India, which eased rules on foreign financing of construction in 2005. They are inexperienced. But they are accumulating valuable land in a billion-person economy growing at more than 8 per cent this year but which is suffering a shortage of good quality housing for its burgeoning middle-class. Shrirang Sarda, 34, describes himself as a “reluctant developer” whose 83-year-old family business, Sarda Group, employs 16,000 workers making bidis, cigarettes rolled in dry leaves that are hugely popular in India. When his once-serene ancestral house in Nashik, between booming Mumbai and Pune, found itself on the main street of a horn-honking city of one million people, Sarda pulled it down and built the city’s first modern cinema complex. He sold the cinema and is now moving to develop a shopping centre and a township with big-name foreign investors, which he declined to identify because a deal was imminent. “There’s a huge change happening in India, with a wave of consumption,” Sarda said. “And if you enter the property business at a chaotic time, you’ve got a good chance of making it.” In India, success is haphazard and often begins with the good fortune of owning prime plots of land. Daleep Akoi’s great, great grandfather was a contractor during the British Raj who built FRI and IMA in Dehra Dun and picked up land across the country along the way. Now Akoi, 30, is giving up journalism and 11 years living abroad, mostly in New York, to turn a former British officer’s mess in central New Delhi into a boutique hotel before developing other parcels of family land. India, which hosts the Commonwealth Games in 2010, has just 12,000 high-quality hotel rooms, while tiny Singapore has 70,000. “I’m excited,” Akoi said. “There’s liberalisation of foreign capital coming in, confidence in the economy—you really feel it now—and the government is more open to new ideas.” He said young developers were also more open-minded. “They’ve been abroad and have seen what value-added stuff you can do with property,” Akoi told Reuters “And the younger generation have no barriers of culture, caste and language,” he said. “You can shed that baggage and go to Mumbai, Kolkata, anywhere to do projects.” The property sector, with only a couple of listed firms, has few billionaires because a tangle of red tape and poor finance prevented firms from expanding beyond their local base.
— Reuters
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TAX tips Wealth tax applicable on assets over Rs 15 lakh By S.C. Vasudeva Q I own nearly one acre of land within the municipal area of Jalandhar, the market value of which has gone up tremendously on account of spurt in the real estate prices. The approximate value, thereof, as per the property brokers is not less than Rs 50 lakh. I have been told by someone that I am required to pay wealth tax on the aforesaid property. Is it correct? If so, am I supposed to file return also? — Alok Verma, Jalandhar A In accordance with the provisions of Wealth Tax Act, 1957, urban land situated within the jurisdiction of municipality is covered within the provisions of aforesaid Act for the levy of wealth tax. The wealth tax is payable @ 1 per cent on net wealth exceeding Rs 15 lakh. Wealth tax is chargeable only on assets specified in Section 2(ea) of the aforesaid Act. One such asset is the urban land. If you own any other asset as specified in the above section, the market value thereof shall have to be added to the market value of the urban land and the value of debts owed in relation to the assets covered for the purposes of the wealth tax, shall be deducted there from. The tax will be payable at the above rate on the net wealth so arrived at. Wealth tax return is required to be filed by July 31 of the assessment year or by October 31 of the assessment year in case of a company and in case of a person whose accounts are subject to audit under Section 44AB of the Act or any other law. The wealth tax return should be filed accordingly and the tax on the basis of the rate of tax specified hereinabove should be paid and challan for the tax paid attached along with the return. Adjusting loss
Q I own a house, which was used by me throughout the previous year. The municipal value of this property is Rs 50,000. I have incurred Rs 10,000 towards repair during the year and have paid House tax of Rs 7,500 for the said property. I had borrowed a sum of Rs 2 lakh prior to April 1, 1999 for the construction of the house. The interest on the sum paid on account of loan is Rs 10,000, which has also been paid during the year. I am working as an Executive Engineer in the Electricity Board. The estimated taxable salary worked out by the accounts department for the year 2006-07 is Rs 2,40,000. I have asked the accounts department to allow me the deduction for interest paid for amount borrowed for the construction of the house but the accounts department has refused to do so. Is the action of the accounts department correct? —
R.K. Sharma, Malout A In accordance with the provisions of Section 24 of the Income Tax Act, 1961, (The Act), the interest on amount borrowed for the construction of house is allowable as deduction to the extent of Rs 30,000 if the borrowing was prior to April 1, 1999. You are thus entitled to the adjustment of ‘Income from property income’ in accordance with the provisions of Section 71 of the Act. You can also file the particulars of such loss with the person responsible for making the payment of salary and he will have to take such loss into consideration for deduction of tax at source. Rule of 26 B Income-tax Act, 1962, is relevant of the purpose of giving such particulars to the employer. According to the said rule, a statement of income chargeable under head ‘Income from property’ showing loss, duly verified in accordance with the above rule, should be filed with the employer to get the necessary benefit of adjustment of the loss so that the tax deductible from the salary can be reduced accordingly.
Tax cut at source
Q I and my brother are the co-owners of a property, which has recently been let out to a company. The property has been let out at a rental of Rs 16,000 per month. Since I own half the property, I am receiving a rent of Rs 8,000 per month in terms of a separate rent agreement entered into with me by the said company. My brother is also entitled to same amount of rent for the said property for which a separate agreement has been entered into with him. The company is insisting to deduct tax at source in terms of Section 194-I of the Act as the aggregate amount of rental is Rs 16,000 per month. Is the stand of the company correct? — Manjeet Singh, Patiala A In case each one of you has a definite and ascertainable share in the property, the limit of Rs 1,20,000 prescribed under Section 194-I of the Act, shall apply to each one of you. If the above condition is not satisfied, the company shall have to deduct tax at source from the payment made to each one of you in terms of the decision of Calcutta High Court as reported in 219 ITR 327.
Capital gains
Q I have inherited a house in Ludhiana, from my father. The said property was constructed by my father prior to April 1, 1981,but the inheritance took place in 1990 when my father died. I intend selling the above property this year. The fair market value of the property as on April 1, 1981, was Rs 2 lakh. I expect to get a sum of Rs 20 lakh as its sale price. Please let me know the amount of capital gain, which would be liable to tax. — Baldev Singh, Ludhiana A The capital gain on the basis of facts given by you will be computed in the following manner: Cost of acquisition Fair Market value as on April 1, 1981, multiplied by CIF for 2006-07 divided by CIF for 1990-91 As the Cost Inflation Index for financial year 2006-07 has not been announced so far it is assumed to be 500. The cost of acquisition of the said property would work out as under: 2 lakh divided by 182 multiplied by 500 = Rs 5,49,450 Sale Price Rs 20 lakh Capital Gain, therefore, is Rs 14,50,550
Capital asset
Q I purchased a land in 1996 and constructed a residential house in 2004-05. I intend selling the same this year. Will the capital gain on the transaction be a short-term capital gain or a long term one? — Chetan Sahney, New Delhi A In the case cited by you, the land alone will be a long-term capital asset but the super structure thereon would be a short-term capital asset. The capital gain would, therefore, be computed accordingly. It would be advisable if the sale value of land and super structure is separately indicated in the sale deed otherwise it may have to be apportioned on the basis of an approved valuer’s report.
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Morgan raises $2.24 b
New York: Morgan Stanley Real Estate, a division of investment bank Morgan Stanley said its Special Situations Fund III has raised $2.24 billion of equity to invest primarily in real estate debt and equity securities around the world. The buying power of the fund could double depending upon the level of debt the fund will use along with its equity, John Carrafiell, managing director and global co-head of Morgan Stanley Real Estate said. Investors include institutional and Morgan Stanley Global Wealth Management investors from North America, Europe, the West Asia and Asia as well as Morgan Stanley. — Reuters Nod to amalgamation
Mumbai: Ambuja Cement Eastern Ltd (ACEL) has approved the amalgamation of the company with Gujarat Ambuja Cements Ltd. The shareholders, secured and unsecured creditors took a decision to this effect at the court-administered meetings held last week, the company - a subsidiary of Gujarat Ambuja Cements Ltd - informed the stock exchanges.
— PTI
Dutch loan for SREI
New Delhi: Infrastructure project finance company SREI Infrastructure Finance Ltd will get a syndicated loan of Rs 210 crore from Netherlands Development Finance Company (FMO). SREI will use the amount to fund small and medium enterprises involved in the infrastructure sector in India, the company told BSE.
— PTI
RDB Ind to reorganise
Mumbai: Kolkata-based RDB Industries Ltd has said it would restructure its business activities by way of de-merger or other measures. The Board of Directors at its meeting took an in-principal decision to re-align the business activities of the company and has constituted a committee for this purpose, RDB Industries informed the BSE. The committee would also carry out valuation of its two business segments — cigarette manufacturing and real estate.
— PTI
DLF to up ad spend
New Delhi: Real estate major DLF, which is making fresh efforts to launch its public offer, plans to leverage the power of cricket to enhance its brand image across the country and has earmarked Rs 100 crore investment in next two years on sponsorship, cultural events and advertisements. DLF is sponsoring the tri-series cricket tournament involving India, Australia and West Indies being held in Malaysia between September 12 and 24. DLF plans to invest about Rs 1,00,000 crore in the next 5 to 7 years on real estate development and its new venture — hotels.
— PTI
Hotels for Orissa
New Delhi: Umak Group, the promoter of Radisson Hotel Delhi, has chalked out a major expansion plan to set up five hotels in Orissa in next 2 to 3 years at an investment of Rs 900 crore. The company plans to expand Radisson Hotels across the country and would initially set up five hotels at major tourist destinations in Orissa. “We would set up five accomodations in Orissa and have so far identified Bhubaneswar, Konark, Paradip and Puri as possible destinations,” the firm’s Managing Director R. Kapur said here.
— PTI
Property exhibition
New Delhi: Properties Ahead-2006, a comprehensive real estate exhibitions covering residential and commercial properties and financing opportunities, will be held from September 30 to October 2, at Pragati Maidan. Laden with property choices, the exhibition — to be organised by Ecube Entertainment Pvt Ltd in partnership with various industry councils — will have experts to guide the interested potential real estate investors on legal and procedural aspects of buying a property.
— UNI
RPS housing project
New Delhi: Realty firm RPS Infrastructure Ltd plans to invest Rs 500 crore in the next three years to develop a residential project at Faridabad, Haryana. “We are developing a housing project at Faridabad having a built up area of four million sq ft with an investment of Rs 500 crore, which includes the land cost of Rs 50 crore,” company’s Managing Director R C Gupta said. The housing project, spread over 50 acres of land, would incorporate about 3,000 units, which include apartments as well as penthouses.
— PTI
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Demolitions prop rentals in Gurgaon
Licensed areas are witnessing rush, says Ravi S. Singh
The pressure mounted by the district authorities on shops and commercial activities run at unauthorised places in Gurgaon, coupled with the Supreme Court’s firm directive against shops at residential places in the bordering state of Delhi, has put pressure on the price line of commercial sites in this city. Consequently, the rental prices of shops and commercial establishments have shot up. According to a local realtor, there has been a noticeable hike in rentals in DLF area and the Mehrauli-Gurgaon (MF) road. Rents have gone up by 10 to 15 per cent in the licensed areas of Gurgaon city. Another realtor added that inquiries for rental properties have recently increased manifolds. Licensed areas are the places where private builders have been accorded sanction by the Town and Country Planning Department to set up colonies and commercial centres. Big names like DLF, Ansal, Unitech, etc, with their quality constructions and architectural designs coupled with big budget marketing binge, steal a march over Haryana Urban Development Authority (HUDA) and the Haryana State Industrial Development Corporation (HSIDC), the Haryana government agencies. Hence, those whose commercial establishments have been dislocated from Delhi on account of apex court’s tough stand, are rooting more for shops for purchase or on rent in the licensed area. According to Nawal Ranga, who owns a shop in Super Mart, the licensed areas constitute a small chunk of the total new city area of the city. Hence, the supply chain (shops on offer or on rent) is thin in comparison to demand. Add to it the fact that the licensees (private builders) are allowed to set up shops on only 4 per cent of the area of the colonies sanctioned. Generally, while the builders use only 2 per cent of the 4 per cent of the area for setting up shops, the rest is used for setting up commercial and other office buildings. According to an estimate, the price for rentals in AC Malls like MG Mall and DT is presently quoted at about Rs 65/sq ft. A few months ago, it hovered around Rs 50/sq ft. Likewise, the rental price in non-AC malls is presently pegged at about Rs 45/sq ft. It was about Rs 30, a few months back. The general opinion is that presently there is 80 per cent occupation of shops and commercial establishments in the licensed areas. Hence, the possibility of further pressure in coming times cannot be ruled out. Apart from the pressure on account of the Supreme Court’s directives against shops and commercial ventures in residential pockets in Delhi, local authorities have also launched a drive against business ventures in residential and other unauthorised places in the licensed areas. While the demolitions against such ventures are taking places off and on, the authorities had sealed shops in residential pockets in DLF and other areas, about a couple of months back. In effect, the sword of Damocles hangs on others who continue to violate the law. It is another matter that the authorities had also come in for criticism from wide-ranging quarters for their alleged pick and choose policy of action against those who were on the left side of the law. The situation in HUDA sectors is the same suggesting manifold increase in rental prices of commercial sites. According to the Administrator, HUDA, Gurgaon Circle S.P. Gupta, the prices have shot up on account of the transparent auction policy of the government.
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Tithwal resurrected
Army constructed homes after October 8 quake, says Ehsaan Fazili
Tithwal, a small picturesque hamlet, located on the banks of Kishanganga river in Tangdhar bowl of Karnah in Kupwara district of north Kashmir, was one of the most affected villages due to earthquake on October 8 last year. At a distance of 174 km, north west of Srinagar, the hamlet is separated from the main Kashmir valley by Shamshabari range to the East, by Lipa valley, Kafirkhan range and Kishanganga river in the west and LoC along south Bugina bulge from PoK. After the devastating earthquake last year the Army adopted Tithwal and it now stands a developed model village. A total outlay of Rs 305.8 lakh was earmarked under Operation Sadbhavana, out of which maximum projects were completed in a record time of six months. The development works executed last year included augmentation of existing schools, Tithwal Community Development Centre, health centre, Children’s Park, electrification, water supply scheme and amphitheatre at Tithwal. A basketball court has been completed and sports kit provided for the local youth earlier this year. The other works under execution include Goodwill School, Tithwal, public toilets and augmentation of other villages. The Army pledged to undertake the rehabilitation Tithwal after the devastating earthquake. The projects selected are keeping in view the desires and needs of the locals and those having long term benefits in development of essential services, education, medical infrastructure and social uplift. The earthquake had done more than just levelling the homes and flattened the caste and class structures of Tangdhar region in general. The tragedy gave no reaction time to the people resting after their early morning meals during Ramzan, to vacate their houses and run for safety. Not only did the buildings and structures crumple like a pack of cards, mountainsides, too, developed large fissures, which were noticed later. One of the prime concerns for the Army was to avoid further damage and threat perception due to inadequacy of shelters and rapid onset of winters. Towards the end all possible efforts were spearheaded for the construction of shelters. Immediately, 26 temporary shelters were constructed and 1,291 CGI sheets were provided to 142 families. As many as 62 Igloo type shelter for families and other 30 shelters for families were erected.
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A buyer’s market soon
The Indian real estate market is likely to witness a 15 to 20 per cent drop in prices of residential space in Tier I cities over next one year where the prices have gone up rapidly during last 12 months, according to industry experts.
”We expect that there will be a price correction of 15-20 per cent in the residential segments in over-heated markets like metros during next 12 months,” Ernst and Young- Head real estate practice Ganesh Raj said at Indo-US Economic summit. Price correction has already started in Noida in certain pockets, he said. “After a certain price level, it will be a buyers market and developers will have to cut their prices,” Raj said. Hines Real Estate Managing Director Daniel MacEachron said price correction was expected in the land prices in the major markets (Tier I) over the next 12 to 18 months, which would lead to fall in the real estate prices in the housing sector. The rising home loan rates would also lead to correction in the prices in residential segment, MacEachron said. Echoing similar views, DLF Ltd Advisor J.K. Chandra said some sort of correction has happened or would happen where the prices have gone up disproportionately. Nearly a month ago, Deepak Parekh, Chairman, HDFC, had said that property prices were due to correct by up to 20 per cent within the next six months.
— PTI
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US firm to invest
Aiming to cash in on the bullish Indian realty space, US-based real estate company Hines plans to invest over $300 million (Rs 1,300 crore) over the next five years to develop projects in association with local partners. Hines, which manages about $12.5 billion of property across various countries, is targeting to develop various residential as well as commercial projects in the country. It had opened its first office here in April. The company is primarily focusing on NCR, Bangalore, Hyderabad and select other major markets.
— PTI
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The majestic Charminar is the centre of the historic old city of Hyderabad. Built by Muhammad Quli Qutb Shah in 1591 to commemorate the eradication of plague, the heritage structure has over the years turned into a traffic island. The square monument, which once commanded the landscape for miles around, is now just visible from thousands of vehicles plying around it. Adding to this clutter is the confusion of electrical lines, disarray of signs, and encroachment of virtually all kinds. 
No amount of concrete can provide the same desired effect for privacy that a green plant hedge can give. Moreover, no matter how much you decorate the walls you cannot get the softening effect. There is no substitute to a hedge. It does the same to a garden as a frame to a photograph.
