Operation Decongestion
Urban planners moot ‘conservative surgery’ to ease the structural clutter, Rakesh Lohumi finds out

In a belated effort to save the Queen of Hills from further degradation, the Town and Country Planning Department has come out with a three-pronged strategy, involving extension of the planning area to pave way for the development of Greater Shimla, implementation of a capital city regional plan and development of a counter magnet.

In the parlance of urban planners, it will be a “conservative surgery” to decongest the core of the city by shifting major markets, workshops, wholesale and transport business to the activity zone proposed to be developed in the extended planning area. The heritage properties still in good shape will be conserved as it is, while those in a state of disrepair will be improved. Development in the main city will be restricted and only need-based structures, up to a maximum of two storeys, will be allowed. However, in the proposed Shogi–Jabbar-Hatti-Ghanahtti activity zone, four storeyed structures will be permitted.

As many as 243 villages in the peripheral areas have been brought under the Shimla planning area to form Greater Shimla. In the process existing area of 9,950 hectare has been doubled to 20,000 hectares. In all 188 villages of Shimla tehsil, 50 of Kandaghat, 4 of Theog and the lone Durgapur village of Sunni have been included. With this the total number of villages in the Shimla planning area has risen to 405, including the municipal area. The Greater Shimla will extend up to Fagu on the east, Durgapur and Puabo on the north, Waknaghat on the west, Jabbar Hatti airport and Ghandal on the northwest . The limits have been extended right down to the Ashwini khad on the south. The new villages included mostly fall in the Waknaghat, Jabbar Hatti and Ghandal belt on the northwest and Durgapur and Puabo on the north.

Along with it a Shimla City Regional Plan, which will take care of development activities within a radius of 35 km, is being framed on the pattern of the national capital region scheme for New Delhi. Under the plan satellite townships will be developed at Ghandal between Shalaghat and Ghanahtti and Waknaghat on the Shimla-Chandigarh highway. The regional planning area will be bounded by Shalaghat on the Shimla-Bilaspur national highway, Destination Resort on the Shimla-Chandigarh highway, Matiana on the Hindustan-Tibet road and Sutlej river on the Sunni side.

As long term measure, the Jabbarhatti, Kunihar and Bhararighat belt will be developed as a counter magnet to shift construction activity from the eco-sensitive hill ranges like Kufri, Mashobra, Chail, Jakhu and Naldehra. All major development activity like industry, multiplexes, shopping malls and transport hubs will come up in the proposed counter magnet belt. As the eco-sensitivity increases towards North and East the only need-based constructions will be allowed in areas located on the east of Ghanahatti-Jatogh-Kamna Devi-Tara Devi Range. The eco-sensitive Mashobra-Kufri-Chail belt is proposed to be developed as a tourism zone.

The focus of development will be shifted to Waknaghat, Jabbar-Hatti, Shalaghat, Ghandol, Tattapani ,Mashobra and Matiana area, which will be connected by a proper highways by upgrading the existing radial roads. New bus stands are proposed at Hiranagar and Bhatta Kufer.

It may be too late to implement a regional development plan as the lush green “core” of the country’s largest hill station has already been transformed into a concrete jungle due to unregulated construction activity. Moreover, development plans have not been adhered to in the past and as many as 38 amendments have been made in the plan, mostly to regularise unauthorised structures.

HIMA(LL)CHAL!
Baddi becomes a trendsetter as retailers make a beeline to set up malls in the entire state, writes Ambika Sharma

The industrial area of Baddi-Barotiwala-Nalagarh is all set to witness a revolutionary trend in designs, style and variety in shopping, entertainment and eateries with the advent of shopping malls. Closely following the development of industrial investment and housing colonies is a planned and organised move by the realtors to set up shopping malls. While Homeland Malls has been launched, two others are in the process of obtaining license.

A realtor, who is venturing into malls, says: “It is a high demand of thousands of company executives from domestic units and MNCs who are being targeted. Since the place has a near-total absence of decent eating joints, no entertainment zone and hardly a place to shop, malls will fill the gap and serve this purpose.”

With investments reaching a whopping Rs 20,000 crore, queries from all major private banks, nearly 40, according to an estimate, and small companies dealing in industrial facilities, abound. Commercial complexes are expected to do well. Promising the right ambience and perfect professional atmosphere, these malls are poised to cater to such needs. Important banks like Vijaya Bank, Corporation Bank, HDFC Bank, etc., have already set up their offices in the region. The space is selling for prices ranging between Rs 4,500 and Rs 5,500 per square feet.

With an estimated 700 small and big pharmaceutical units having set up their operations in the region a corresponding number of basic raw material dealers are on a lookout for office space. “They play a crucial role in the pharmaceutical industry as they deal in material which sells exorbitantly at nearly Rs 3 lakh per kilogram. Since they need a decent dust-free office atmosphere, malls are specifically targeting them” confides a realtor.

Doon Metro Mall, providing showrooms, entertainment and a host of eating joints has already come up at the prime Sai Road. “With immense demand for banks and offices, the space has been an instant sell out, discloses proprietor Ramkumar Chowdhary. Designed by architectures from Delhi, it is poised to be a trendsetter for retails in this, hitherto, industrial town lacking modernisation.

With planned development being in nascent stage, the place has little to offer in terms of multi-cuisine restaurant. Another realtor, while targeting food buffs says: “ I have planned to devote a whole floor to food court presenting a multi-cuisine choice to the residents.”

Optimistic on capitalising the lack of development in the region, another retail developer points out: “ These malls will provide quality on competitive rates under one roof. Experiences from Noida, Delhi and Gurgaon, have proved that it is the middle class who visit these malls. A myth has been dispelled that such outlets are meant specifically for the elite.”

With no source of entertainment or facilities like schools or hospitals, company executives had been shying away from settling here. They preferred to commute from adjoining Chandigarh and Panchkula, thereby spending in Haryana what they earned in Himachal. The coming up of multiplexes, which caters to the needs of the middle class, is slated to arrest this trend, especially since other facilities, too, are being developed by the Himachal Pradesh Housing and Urban Development Authority.

Finding the venture lucrative, a mall developer opines: “The idea is to provide entertainment for the residents of the industrial areas.”

“While exposing an average man to organised retail under one roof, the concept has floated from an overwhelming demand. This virgin sector in Himachal is yet at a nascent stage as the realtors are assessing viability,” observes Dr Ashwin Johar, a realtor exploring Himachal for shopping malls.

Lack of planning in the towns has, however, reduced the space available for setting up such malls in other places. Haphazard growth, coupled with hindrances like forestland or government land, has reduced the scope of availability of prime areas. Many a times, it is the illegal structures that have sprung up at prime locations which restrict the coming up of malls, comments Johar who is on the look out for land in Manali, Shimla and Solan.

Retailers are targeting land lying along national highways or one connecting nearby towns and habitations. Being a tourist-oriented state, resorts of high potential are also on the watch list of realtors.

Helipad, the latest fad 
Jangveer Singh discovers that the chopper-on-rooftop craze is picking up in high-end Bangalore townships

Karnal heights
Apartments get approval in historical city, reports Vishal Joshi

With the private entrepreneurs have geared up to offer the best in the upcoming residential and commercial projects, Karnal, which is otherwise considered “a sleepy township” is all set to have a new modern day look.

The state Town and Country Planning Department has reportedly granted permission to at least two developers to construct residential areas on apartment basis. It is to be the first project in the district.

Both Ansal and Pam Residency groups have been allotted land in Sector 36 of the Urban Estate where they are offering the residential premises on flat basis.

According to the District Town and Country Planning (DTP) Dilbag Singh, the two groups have been granted permission to develop areas in the upcoming residential areas of Haryana Urban Development Authority.

Ansals are also offering penthouses in their Sushant City project and promising world-class environ here, which has the character of a “smalltime township”.

Market watchers claim that upcoming commercial and residential projects are getting tremendous response from the investors as Karnal is indeed stepping towards modern-day living.

Private builders having sound experience have made elaborate development projects in their respective plans.

Besides, several other private builders have also jumped in the group housing competition where the areas would be developed on plot basis.

Prominent among them is Narsi village in Sector 32 spread over 55 acres. Ansals are developing a luxurious colony in Sector 36.

DTP said that the latest project cleared by the state authorities is CHD developers in Sector 45. Located adjacent the toll plaza on the GT Road, market watchers believe that it will 
catch with the investors’ eye due to its ideal location.

At least two shopping malls are also coming up in the township, which would cater to the demand of the localities looking for the joyful shopping.

Venetian outing 
Grand Venezia mall will soon come up in Noida, says Nalini Ranjan

With the malls coming up everywhere, new ones have to be unique to stand out. This is a great challenge for retail developers, especially those who want to make a name in their chosen business.

One such retail company, which plans to be ahead of its competitors “the European way” is the Bhasin Group. In existence over the past four decades, the company encompasses a wide range of business interests, right from automobile dealerships to infrastructure development. A group company, Bhasin Infotech & Infrastructure Pvt Ltd, is an Indo-US joint venture geared to develop world-class living spaces at a time when India is emerging as one of the world’s most favoured destination for investment, shopping and tourism.

According to Chairman J.S. Bhasin: “Over time, the group has strengthened the pillars of trust, quality and credibility. Now it is expanding to the real estate and infrastructure development sector with a vision to constantly strive for perfection. Our growth will be great in the time to come but we plan to move on this path gradually ensuring customer satisfaction at every stage. We have many more projects planned in the time to come but we strongly feel that slow and steady wins the race.”

Bhasin Group has conceptualised the Grand Venezia mall at Greater Noida. The theme of this mall is romance and is designed to bring Venice, the city of canals and gondolas, to India. According to Ed Sweeny, director, Bhasin Group, retail is a specialty in itself and not just real estate development. “It requires scientific preparation and study in creating ideal retail space. This approach is seen in the Grand Venezia mall. Taking inputs from a renowned architect Hafeez Contractor, this mall has an European concept and will set a new paradigm for malls in India,” he says.

The location of Grand Venezia will be situated just adjacent to Jay Pee Golf Club, on the main highway with 700 sq ft wide frontage, with one side of the road approaching Pari Chowk and the other the proposed airport with easy proximity to all premier places.

Various retailers like Tatas, Pantaloons have already evinced keen interest in the mall.

The mall also has an action-packed entertainment zone on offer. While lifestyle clubs, hi-tech virtual games, bowling alley will ensure that adults have a good time, there will also be a special kids zone, surrounded by live cartoon characters and fun shows. Grand Venezia mall will also be the hub of entertainment of a uniquely innovative nature, which will make it stand apart from the rest.

This will ensure that all the entertainment needs of families coming to the mall will be met so that they can spend maximum time at the mall.

An amphitheatre will provide a platform for hosting cultural events, etc and live theatre. A multiplex will make Grand Venezia mall a destination point for the whole family.

To balance and rejuvenate mind and body, the mall will offer an extensive programme focused on traditional and ancient spa therapies, treatments and rituals. Grand Venezia mall will have 15-lakh sq ft covered area for retail and leisure and will be centrally air-conditioned having a huge atrium. All floors will have 15 ft. apparent height. Its other features include ample parking space, 24-hour security surveillance, and is set amidst water bodies and attractive landscaped surroundings.

HOME Decor
India inspires UK designer 

For British designer Tricia Guild, India inspires the main part of her vocabulary, prompting her to push the boundaries of creativity. “Inspiration from India is the main part of my vocabulary. This is what makes me push the boundaries in creating newer designs,” the London-based Guild says.

“I have been wandering through India (for long), taking pictures and drawing inspiration from the extraordinary wealth of fabrics and motifs that are on offer here,” she adds.

The designer is in India to launch her Designers Guild global brand of luxury home furnishing through a tie-up with an Indian retail major. “India has an exquisite traditional aesthetic sense, especially for homes and the environment, and a sensitivity that is built into its tradition and culture. In addition, Indians today are also becoming increasingly brand and quality conscious,” Guild explains of the venture.

The joint venture with India’s Floor and Furnishings hopes to clock sales of Rs.12 billon in two years. That, however, seems a little ambitious, considering that the total market in this country for upper end furnishings is pegged at nearly Rs 30 billion.

This is all the more so considering that Designer Guild creations start at Rs.500 per metre and go all the way up to a whopping Rs 10,000 per metre.

As Guild put it: “You have to believe in what you do. We will bring excitement in the segment by bringing fashion into home textiles.

“We also seek to introduce the brand concept in what is still a non-organised sector and bring the latest fashion trends and contemporary styles to furnishings,” she adds.

What then, is her magic mantra? Guild answers that by posing another question.

“What comes first, the design or the colour? Getting the balance right is the most exciting part. The idea is to take beautiful things and give people the opportunity to use them in different ways,” says Guild.

Guild, who set up her company in 1970, now retails in 40 countries across the globe. She has received several awards, including an honorary fellowship of the Royal College of Art and an honorary doctorate in technology from Loughborough University. — IANS

GROUND REALTY
Look before you buy
Jagvir Goyal gives tips to house-builders on how to choose cement and steel

Cement, steel, bricks, sand and coarse aggregate are five basic materials used in raising the skeleton of a building and imparting structural strength to it. More than 50 materials are used in the construction of a building but the cost of these five itself is more than 40 per cent of the total cost of a building. Howsoever, attractive finishing materials may be, unless cement, steel and bricks are of good quality, a building loses its net worth and soon starts showing signs of distress. Utmost care should, therefore, be taken in selection of these. We will discuss the cement and steel in this edition

Cement

Freshness: Always choose fresh cement. Manufacturers attach tags to cement bags and these tags carry the week and year of manufacture. Don’t confuse the week with the month. A tag with a 2/07 stamp means second week of 2007. Don’t read it February 2007. Check the date of manufacture and don’t accept cement bags, which are more than two months old. Remember that cement absorbs moisture from air.

Maker: Manufacturing of cement has seen a technological revolution recently and the cement being manufactured by reputed manufacturers is of extremely good quality. Always select a reputed manufacturer.

Grade: Choose right grade of cement. OPC has three grades i.e. 33, 43 or 53. OPC grade 33 carries IS269 mark, grade 43 carries IS 8112 mark and grade 53 carries IS 12269 mark. PPC has no grading and its bags carry IS1489 mark. PPC is considered equal to 33-grade cement. Grade 53 cement is the strongest among all these though its cost difference is marginal. However, it requires more curing and should be chosen if adequate curing arrangements are available. Consult an engineer for the cement grade or go for 43-grade cement for RCC parts.

Weight: Check the weight of cement bags. Each full bag should weigh 50 kg. Weight of empty bag is extra. These days, plastic bags are used and their weight is negligible. Earlier, jute bags were used for packing of cement and 500 gm extra weight was counted for them.

Condition of bags: Always check the condition of cement bags. These should be in tact and not torn. Generally, labourers handling the cement bags use a hook. Skilled labourers don’t pull the hook after inserting it into the bags and are expert in shifting cement from one place to another without damaging.

Steel

Manufacturer: Always buy steel produced by a reputed manufacturer. Quality of reinforcement steel plays a very important role in determining the life of the building. Visually, all steel lots may look the same but quality wise, these may be a lot different. Steel Authority of India Ltd. (SAIL), Tata Iron & Steel Company (Tisco) and Rashtriya Ispat Nigam Limited (RINL) are three top manufacturers of steel in India. Inbuilt laboratory arrangements with these manufacturers ensure stringent quality control checks before passing of steel for sale.

Test certificate: When a large quantity of steel is to be purchased, ask the seller to show the test certificate of the lot being sold. These test certificates are supplied by the firms and are half printed and half embossed to avoid tampering. Reputed manufacturers also put their trademarks on the steel bars. Look for them or ask the retailer to show them. Locally produced steel may not be that strong and may have been produced from scrap.

Type: Decide the type of steel to be used. Prefer High Yield Strength Deformed (HYSD) bars to round ones, as these bars are much stronger than plain or round bars. Weight wise, both weigh equally. Popular name of HYSD bars is tor steel. In actual, tor is a trade name belonging to Tata steel company. As tor or HYSD steel is stronger, it saves cost. Strength of an 8 mm diameter tor steel bar is almost equal to 10 mm diameter plain steel bar. Similarly, a 10 mm dia tor steel bar has almost same strength as 12 mm plain steel bar. Further, prefer Thermo-Mechanically-Treated (TMT) bars.

Steel for stirrups: For the stirrups to be put in beams, use plain round bars as it may be difficult to bend tor steel of larger diameters. This quantity will however be small.

Diameter: While finalising the steel lot, check the diameter of the steel. Steel produced has variation in diameter. Steel categorised as of 8 mm diameter may in actual have 7 mm diameter and so on. This problem generally occurs in low diameters up to 16 mm diameter. Though lower diameter will not cause a financial loss as steel is sold by weight but it may ask for a review of the structural design.

Condition of the lot: Choosing a lot that is free of rust is obvious. Steel is supplied in straight as well as coiled form. Prefer straight steel bars. Coiled steel requires more labour for its straightening up.

Right quantity: Prefer to work out right quantities of steel required for different diameters. Take help of an engineer who may bring savings in steel by adopting cut length method and by deciding the lengths of steel bars to be purchased. He may workout lengths of bars for different portions and combine them to check the most suitable lengths that will generate minimum scrap.

Happy building!!

The writer is SE (Civil), PSEB

TAX tips
Jurisdiction decides tax on compensation for acquisition
By S.C. Vasudeva

Q. I own agricultural land in a village near Gurgaon. The same is likely to be acquired by the state government for the development of special economic zone. I am using the land for the purpose of carrying out agricultural operations. What would be the position of the compensation, which I am likely to receive on the acquisition of such agricultural land?

— Chamman Lal, Gurgaon

A. In the first instance it will be essential to decide whether the agricultural land owned by you is situated in any area within the territorial jurisdiction of municipality or a cantonment board having a population of 10,000 or more and in any area specified by the government vide notification No. 9447 dated January 1994. In case the agricultural land is situated in a village, which comes within a municipality then the population of municipality shall be considered and not of the village. If the agricultural land is outside the above limits, the land would not be in the nature of a capital asset and the compensation would not be taxable. Even if it comes within the category of a capital asset, the capital gains shall be exempt from tax under Section 10 (37) of the IT Act, 1961, (the Act) if the following conditions are satisfied:

1. The assessee is an individual or a Hindu undivided family.

2. He owns an agriculture land situated in urban area mentioned in Section 2(14)(iii)(a) or 2(14)(iii)(b) of the Act.

3. There is transfer of the agriculture land by way of compulsory acquisition or the consideration for transfer is approved or determined by the Central government or the RBI.

4. The agriculture land was used by the assessee (and/or his parents if the land was owned by an individual) for agricultural purposes during two years immediately prior to the date of transfer.

5. The asset may be long-term capital asset or short-term capital asset.

6. Capital gain arises from compensation (and/or additional compensation) or consideration, which is received by the assessee on or after April 1, 2004.

7. If the above conditions are satisfied, capital gain (short-term or long-term) is exempt from tax from the assessment year 2005-06 onwards.

Stock-in trade

Q. We are a partnership concern. The partnership owns a piece of land, which is situated in the heart of city. The same was purchased as a fixed asset for the purposes of constructing a factory for manufacturing cardboard boxes. The scheme fell through and we could not carry on with the construction of the factory. It is now intended to develop the land and convert the same as a stock-in trade for the purposes of taking up the business of real estate. I have been told that this would involve tax consequences. We seek your advice.

—Manjit Singh, Kapurthala

A. In accordance with the provisions of Section 45(2) of the Act, conversion of a capital asset into stock-in trade is chargeable to tax in the year in which such stock in trade is sold. If the stock in trade is sold in parts in different years, tax on capital gain on conversion of capital asset in stock in trade can be said to arise in parts in different years. For the purposes of computing the capital gain in such a case, the fair market value of the capital asset on the date on which it was converted or treated as stock in trade shall be deemed to be full value of the consideration received or accruing as a result of the transfer of the capital asset. The capital gain would be computed by taking the full value of consideration that is fair market value on the date of conversion less cost of acquisition or indexed cost. Such capital gain would be taxable as a long-term capital gain.

Sale of flat

Q. I had purchased a flat on March 10, 2005. The place where the flat is situated has become a commercial centre and therefore, I intend selling the same by April 2007. Could you please explain my tax liability?

— S.K. Kapoor, Patiala

A. The sale of the flat within a period of two years or so would involve the payment of capital gains tax in case the sale price is more than the cost price of the flat. The incidence of capital gains tax depends upon whether the capital gain is a short term or a long term. Long-term capital gain arises on transfer of long-term capital asset. A long-term capital asset is an asset, which is held for a period of not less than three years. The capital gains tax in case of a sale of property is chargeable @ 20 per cent plus applicable surcharge and education cess. In your case the capital gain would be a short-term capital gain and shall be added to your other income and brought to tax at the normal slab rate.

No tax

Q. I own a house in Abohar, which I am not able to occupy because of my transfer to Chandigarh as I am employed with a General Insurance Company having its main office at Chandigarh. The house at Abohar is not being used but I am occupying a house in Chandigarh, which has been provided by the company. Will I be required to pay tax on the residential house, which I am not able to occupy on account of my employment?

— T.K. Gupta, Chandigarh

A. According to the provisions of Section 23(2)(b) of the Act if a taxpayer owns the house which cannot actually be occupied by him by reason of the fact that owing to his employment, business or profession, carried out at any other place has to reside at that other place in a building not owned by him, then the income of the property which is not so occupied will be taken as nil provided that the property not so occupied, is not actually let during the whole or any part of the previous year and no other benefit is derived from the above property by the owner. In case the above conditions are satisfied, the income of the property at Abohar in your case will be nil.