Decentralise urbanisation

Integrated Chandigarh need of the hour, says Rajmeet Singh

Information Technology made Bangalore. It also jacked up the real estate prices and choked the infrastructure.

The same ‘success story’ is being replicated in City Beautiful, Chandigarh. Thanks to the IT boom, affordable housing is increasingly becoming a casualty.

Surveys by IT companies and real estate players are going all out to project the city as an emerging most preferred destination for IT companies. This means a lot of professional influx and generation of employment - putting an additional load on the city’s infrastructure, which was planned for just a few lakhs of population.

No one talks about the ills that have seriously afflicted Bangalore. Unchecked urbanisation has spelt disaster for the city. Environmentalists have gone on record to state that the city is already in the midst of serious environment crisis. The city is grappling with the problem of depleting groundwater resources, disposal of waste and depletion of green cover.

Already apprehensions of Chandigarh going the Bangalore way are being expressed. Along with the IT boom comes the real estate business and the common man loses his right to affordable housing.

Big names like Parsavnath, Uppal’s and DLF are already in the City Beautiful to cash on the real estate boom. Elite apartments are being offered for anything between Rs 1 crore and Rs 6 crore. The Chandigarh Housing Board (CHB) is already a stakeholder in one of the upmarket housing project.

Surveys indicate that the future in the real estate sector belongs to tier II and III towns with a population up to 1 million as they are going to drive the growth in this sector over the next three to five years. Rising property prices in metros, dearth of skilled and cost-effective manpower, high cost of living and high operational costs would drive the technology-sound companies towards these cities, including Mohali and Chandigarh.

E & Y has forecast that these towns will emerge as the most promising market for residential and retail developments in the years to come.

Unlike Bangalore, where the land bank for future development is huge, City Beautiful has little land left for future urbanisation. Town planners strongly feel that the IT boom should not be Chandigarh centric. Urbanisation should have been decentralised instead of allowing influx of the employment seekers.

Save Chandigarh from being like another Indian chaotic city.

Policy makers should be refrained from taking arbitrary decisions for changing the existing land uses and carefully drafted zoning regulations and building bylaws, such as permitting high-rise buildings or apartments in sectors meant for low-rise development that define the distinct open and green character of Chandigarh. The city was designed with clearly defined functions to provide dignified and healthy living to all classes of citizens. The periphery control of 16 km was enacted in 1952 to check haphazard growth and ensure a greenbelt around the city for agriculture and similar uses that would provide for daily needs.

Due to undesirable pressures and vested interests, Chandigarh is rapidly deteriorating. Uncontrolled growth surrounding the city is in utter violation of the Periphery Control Act and emergence of ever expanding satellite towns are depriving the ordinary farmers of their lands and livelihood for a pittance. The government is acquiring the farmer’s lands in the green belt and selling these at a huge profit to developers. All such developments are further straining the infrastructure. It is feared that, before long, City Beautiful will meet the same fate as other chaotic Indian cities.

With little or less that 2,000 acres of land left for development, the Chandigarh Administration should coordinate with the neighbouring states of Punjab and Haryana to plan the population spill-over.

The need of the hour is to span out and create an integrated Chandigarh (tricity included) so that instead of putting pressure at one place, the development should be spread out in a coordinated way on the pattern of NCR.

Allotment rules hem in speculators
New rules may dampen auctions

The new allotment rules for leasehold and freehold property have brought cheers for the genuine end-users and tears for the speculators.

Officials in the Chandigarh Administration claim that the revised rules, known as the Chandigarh Estate Rules, 2007, would ensure easy compliance and reduced litigation, as these are simpler, transparent, precise and citizen-friendly.

“From 150 page rules, it has been reduced to 15 pages,” officials assert.

Now, the allotment of commercial and residential properties will be done by way of auction.

To discourage the speculators, the Administration has introduced a clause that any leasehold property bought in auction cannot be sold for 15 years — a condition which is generally applicable to plots allotted on nominal lease money.

Another rider put on the speculators during an auction is that the interested persons will now have to deposit Rs 2 lakh in advance in place of earlier fee of Rs 500.

However, the Administration objective to weed out speculators could mean serious trouble for the official machinery involved in auctions. It is seen that it is the speculators who charge the atmosphere and generally increase the bid money. This could mean lukewarm response to the auction, as the section of the genuine end users was less.

“There should be no condition of depositing money in advance. A number of people make up their mind at the spot after seeing the sites,” believes NK Marwaha, a real estate agent.

There is cause of worry for the officials in the estate office, as the high rates of bid reflected in auction would fall. “Except Chandigarh, the commercial property auctioned is generally on freehold. In Haryana and Punjab, the commercial property is on freehold,” believes Amarjeet Sethi, a city-based realtor.

Coming back to the rules, officials say ever since conceptualisation of Chandigarh, property in the city was being administered by two sets of rules framed in 1960 for freehold property and 1973 for leasehold property. The Chandigarh (Sale of Sites and Building) Rules, 1960, and the Chandigarh Leasehold of Sites and Building Rules, 1973, have been clubbed to form the new rules known as the “Chandigarh Estate Rules, 2007.”

By attracting genuine buyers, the number of litigation would come down. It was felt that around 35 per cent litigation pending before the Estate Officer pertained to the payment of dues under these rules and, therefore, it was felt that a right balance has to be made between the rights of the citizens and the state and at the same time make the rules less discretionary as well as less litigation prone.

Besides, acceptance of money through electronic transfer, in addition to cash and demand drafts, has been allowed.

Bangalore plans 5 satellite towns

Mysore highway is the next hotspot, reports Jangveer Singh

The new road for prosperity seems to lead to Mysore with major development activity set to make the Bangalore- Mysore stretch the most sought after real estate in the region.

The Bangalore-Mysore Infrastructure Corridor, which envisages creation of five satellite towns, along an expressway between Bangalore- Mysore has set the tone for this development. However the recent clearance of a Rs 60,000 crore Knowledge City, slated to be built at Bidadi, on the outskirts of Bangalore enroute Mysore, may well emerge as the icing on the cake which will take development in the region to an altogether new level.

The Knowledge City or the Bidadi Integrated Township Project, which will be built by property giant DLF, in association with a foreign equity holder, will be the first of the five satellite towns planned to be built around Bangalore to ease congestion in the city and expand it further.

DLF is touting the city as the New Bangalore as the city will be a self-contained one in line with the Bangalore Metropolitan Region Development Authority (BMRDA) vision of having residential areas adjacent to zones of commercial activity.

The walk to work theme, which has remained a dream in Bangalore despite attempts to incorporate this in building activity in the city, will be supplemented by shopping malls, multiplexes, hotels, educational institutions and hospitals. It will be mandatory for IT companies taking up space in the proposed city to take up space for housing its employees also.

The Knowledge City was one of the last things cleared by the H D Kumaraswamy-led Janata Dal (Secular) - BJP government inspite of objections from its coalition partner. There was a difference in opinion as to with which department the Rs 57 lakh per acre development fee should be deposited.

The project has been cleared due to keen interest shown by Chief Minister H.D. Kumaraswamy to bring development into his Ramanagara assembly constituency. Besides private lands, the government will give 2,200 acres of government land to the project developers. The proposed city will cover an area of 9,000 acres upon completion and proposes to house 7.5 lakh persons. The project is slated for completion in 2016.

Special efforts are being made to link the city with the upcoming international airport at Devanhalli, which is 60 km away. The government has come up with plans for a dedicated metro service to the city besides construction of an expressway to connect the new township with the international airport.

The Bidadi project is set to be complemented by a Film City, which is coming up near it, being projected as a one-stop centre for film production and entertainment. Besides this, a Heritage Centre and Global Apparel Village is coming up nearby at Ramanagara, an eco-tourism project at Srirangapatnam, also on the Mysore highway.

Bidadi is already known for the Toyota factory, besides many other industrial units.

BMRDA Commissioner Sudhir Krishna says the new projects are unique as they will be based on integrated land use concepts and will centre around one specific economic activity which promotes a work-home balance with residential facilities nearby. Its IT Secretary M.N. Vidyashankar while speaking about the Bidadi project and the other proposed townships, said the Bidadi project would be the largest IT city in the country possessing all required social infrastructure in one complex.

Vidyashankar said the Bangalore-Mysore corridor was likely to transform into a knowledge corridor with Mysore registering a steep increase in IT revenues since the past few years. He said the city had recorded a 90 per cent increase in software exports last year.

Realty cools down on AIM
Still contributes 68 pc of total funds raised

Boosting India’s presence in the fast growing Alternative Investment Market (AIM) of the London Stock Exchange, three India-related companies are expected to make their debut on the bourses within next two months.

Taj hotel for Holy City

Amritsar emerging as a major investment hub, observes Ashok Sethi

To cash in on the slice of the booming tourist industry in the Holy City, India’s leading hotel and resort chain Taj Group of Hotels has decided to establish hotel on the airport road in view of the burgeoning growth in the aviation and tourism industry.

The senior executives of the Taj Group were in the process of finalising a land deal with a leading hotelier on the busy Ajnala Road. According to reliable sources, the Taj was working out a joint venture with the local hotelier for constructing 150-room hotel. The local group has offered farmhouse and some rooms on a 4-acre piece of land for constructing star property.

It is pertinent to mention here that major real estate developers, including DLF, Omaxe, Emaar MGF, Clarion and Ansal have pumped in huge investment in the city giving impetus to the construction activity pushing the city onto the fast lane of growth.

According to reports prepared by a leading consultant group of Chandigarh, Amritsar is emerging as a leading tourist destination. The report points out that with over 80 international and domestic flights operating from the Rajasansi international airport, the city has witnessed a large flow of visitors.

The Ajnala road has emerged as the hottest property area of the city with a number of PUDA-approved colonies and number of malls, multiplexes and hotels under construction attracting the attention of major groups from metropolitan cities in India and abroad.

Nucleus for Zirakpur
Amrita Dhaliwal

Vascon is all set to launch Nucleus, a mall-cum-multiplex-cum hotel at Zirakpur, with an investment of Rs 90 crore. This was stated by R. Vasudevan, Managing Director, Vascon Engineers Ltd in Chandigarh.

Nucleus mall in Pune has already bagged several national and international awards.

Among other projects in the north, Vascon has tied up with Business Park Town Planners Ltd. (BPTP) to design and construct a 9-lakh square feet IT Park at Gurgaon. In order to extend its footprint in NCR, Vascon is also in talks for developing multi-use townships in the region.

“We are also talking to commercial houses and academic institutions keen to enter the north, especially Punjab. We should be finalising some more ventures shortly,” Vasudevan disclosed.

Vascon is also developing a residential project at Amritsar with Elite County Developers Pvt. Ltd. The first phase will cover 40 acres.

Vasudevan pointed out that Vascon was not exactly new to the north of the country, having put up factories for several pharmaceutical majors at Baddi in Himachal Pradesh. “However, we are happy to be among the first to take up organised development of large and prestigious commercial and residential projects in the region,” he said.

Vascon Engineers recently tied up to build a state-of-the-art fashion technology park (FTP) at Sector-90, Mohali.

As the fashion technology park’s technical partner, Vascon will design, develop and build the 1.6-million square feet multi-purpose facility at an estimated cost of Rs 250 crore.

GREEN HOUSE
Let’s deal with barren sidewall

Neighbour’s wall can be your canvas, suggests Satish Narula

At times there are situations when a gardener finds himself in a fix as to how to cover or decorate a place. This is common nowadays due to the present forced lifestyle with high-rise buildings around. It happens when there are tall buildings in the neighbourhood and there is a wall of the neighbour, which is exposed. Worst still, the neighbour is not ready to plaster it, for whatever reasons. Such sidewalls become an eyesore and dirt keeps falling off perennially.

Those with green fingers and a good range of imagination have found ways to decorate their gardens and exploit the resources and the constraints to the hilt. Sidewalls can be decorated in several ways. It may be a small hurdle, especially for those living on the upper storeys but not a constraint. There are many ways to treat the walls.

One of the ways is to make colourful mural on the wall. The theme of the mural could be such that it merges with the garden. A subject showing the depth concept could be used and the landscape features may be so created around the mural that it gives an illusion of vastness to the space.

The garden could be planned in a way as if it started at the base of the mural to extend sideways. Even a false door could be painted on the wall with an artificial shade as if there is a room beyond. One could also make a small pathway leading to that ‘door’ decorated with small stature plants. Also, make sure you do not place such plants near the mural that grow tall to hide features.

When we talk about flora, fauna comes in naturally. No garden is complete without a butterfly or sparrow. But thanks to indiscriminate urbanisation and technology development, the birds, in general, and sparrows, in particular, have vanished. However, die-hard nature lovers find a way out and try to create own nature to live in it. See the accompanying picture. The nest and the bird created with the fibre adorn the wall giving it a natural garden treatment. The wall is covered with the trailing and self-clinging Ficus repens creeper that contributes to make the wall green. Even those living on the upper storeys could use this plant by planting it in big pots. Once it catches roots, it spreads fast and on its own. You can also fix a nest and if your luck has it, you may get a pair of birds looking for one.

The biggest advantage of the sidewall is that you can secure hooks. You can also embed light stands for hanging pots. This way you can extend the garden and the sky is the limit. May be the aspect is sunny and there are wind currents.

In such situations, plant only hardy plants in the basket and keep them within the reach for proper watering. The pots used for such stands should also be made up of light material like plastic. The planting medium used should also be light and have plenty of peat, vermicompost, leaf mould, farmyard manure and sand. Now when the winter is round the corner and this is the time to plant winter annuals, the baskets could be used to plant winter annuals to make the place colourful. For this, choose the hanging types like nasturtium and petunia or small-statured plants like sweet allysum, pansy, mesembryanthemum (burf), dwarf marigold, etc.

— The writer is a senior horticulturist at PAU. His email id is satishnarula@yahoo.co.in 

HOME DECOR
Build on budget

Cost per square foot is often higher for smaller homes, says Devendra Malik

Dreaming of building a new home but worried about the expense? If you have detailed drawings, your builder can give you a close estimate. Long before you draw up the final plans, it pays to ‘guesstimate’. Knowing how much the project might cost may help you modify plans to meet the budget. Here are a few tips

Contact architects

Meet the architect or builder, who constructs houses that are similar in size, quality, and features to the home you desire. They will tell you how much per square foot they usually charge for construction. They can also give you a ballpark idea of what your dream home might cost.

However, it is important to know exactly what is included in the price.

Square footage

Look at newly constructed homes that are similar in size, style, quality, and features to the home you want. Take the price of the home, deduct the land price and divide that amount by the square footage of the home.

Use several new homes in your area to get an approximate square footage price. After you have calculated an average square footage cost, you can multiply that cost by the finished square footage of your house plan to get a ballpark estimate.

Expensive features

The most expensive areas in a home are usually the bathrooms and the kitchen. The number of openings (doors &windows) and the size and quality of openings can also affect the cost. False ceilings and high roof pitches can increase the cost of a home.

The cost per square foot is often higher for a small home than that of a larger home. When building a larger home, the cost of expensive items (such as a toilets or kitchen) is spread over more square footage. Consequently, a larger home may have a lower square footage cost than a smaller home. Also, it usually costs less to build a two-storey home when compared to a one-storeyed one that has the same square footage.

Small details in the design of home can make a big difference in the price. To save on costs, begin estimating construction expenses before you select your final blueprints. Here are important factors to consider:

Shape of home

Homes that have a rectangular or box shape cost less to build. Having more angles and corners in the shape of your home can increase the amount of labour and material needed to build a home.

Site preparation

Preparing a site for construction can have a big impact on the cost of a home. Building on a flat will usually cost less. If you have to excavate lots of mud, do a lot of grading, clear trees, or blast through large rocks, then site preparations can become more expensive.

Cost overruns

Usually the finished cost of a home is more then the original bid price. Cost overruns occur from overspending the allowances, making changes, and encountering unforeseen problems. Proper planning can greatly reduce cost overruns. In general, it is a good idea to allow an additional 10 per cent to cover unexpected costs.

Inflation

Usually the cost of building a home increases around 5 per cent to 8 per cent per year. If it will be several years before you begin construction, remember to include inflation into the cost estimate for home.

— The writer is a New-Delhi based interior designer. His email id is devendramalik@yahoo.co.in 

TAX tips
Dividing plot for two houses
by S.C. Vasudeva

Q. I purchased a plot of 600 sq yards in urban area in 1998 for Rs 10 lakh. One of my friend, who is a builder, wants to take this plot and build two houses of 2,500 sq feet covered area, each of similar design for both of us on this plot on 300 sq yards each. As per agreement, he will give me the house free of cost within two years, in addition to Rs 14 lakh in cash before I hand over the plot to him. Please clarify on the following points:

1. How to calculate & what will be my tax liability?

2. How to register my house on my name once I transfer my plot to him?

3. Can I buy another flat for Rs 30 lakh by putting Rs 16 lakh from my pocket + Rs 14 lakh received in cash from my friend to save LTCG on Rs 14 lakh? I have no house at present. I have been told that I can have two houses & save LTCG also this way. Please guide me.

— Kulwant Singh Grewal, Ludhiana

A. The replies to queries are:

1. The portion of land on which your friend will build a house of 2,500 sq. ft. for himself would be considered transfer of land to that extent. The consideration for such transfer would be the amount of cash of Rs14 lakh given to you and the construction cost of house having an area of 2,500 sq. ft. The indexed cost of that portion of land, which has been transferred by you to your friend, would be deducted from the aggregate of such cost and Rs 14 lakh. The balance amount would be a long-term capital gain arising on such transaction. It is not possible to compute the tax liability as all relevant particulars for computing such tax liability are not given in the query.

2. The transfer would be in respect of that portion of land on which the portion of the house constructed by your friend for his own requirements stands erected. There should not be any necessity for you to register your house. This requirement would arise in the case of your friend.

3. The acquisition of two residential houses on the sale of a long-term capital asset other than residential house may not entitle you the exemption from the capital gains tax in view of the provisions of Section 54F of the IT Act, 1961 (the Act), which provides that exemption under the aforesaid section would not be allowable if the assessee owns more than one residential house other than the newly acquired one, as on the date of transfer of the original asset. This would imply that in case the capital gain arises from a long-term asset not being a residential house, the long-term capital gain would not be chargeable to tax if you own more than one residential house other than the newly acquired/constructed as on the date of transfer of a long-term asset.

You cannot, however, buy two houses out of net consideration received on the sale of long-term asset to save capital gains tax if the long term capital gain arises on the sale of a long term capital asset other than a residential house. This position also stands confirmed by a recent judgement of the ITAT reported in 107 ITD 327 (Mumbai) (SB).

PIO’s house

Q. I am a senior citizen NRI who has lived in the UK and Canada for the last 28 years. I own a residential property in Chandigarh (my only property in India) for the last 34 years and wish to transfer it to my son who is a Canadian PIO. Please advise with respect to the following queries:

(i) I understand that the transaction will be exempt from stamp duty. Please confirm if this is the case and if any other taxes/surcharges would apply on said transfer. Would capital gains tax be applicable? If so, how can it be mitigated or eliminated?(ii) Please describe the transfer process in detail i.e. which UT office(s) and department(s) to approach. Also what documents have to be produced for transfer to take place?

(iii) How long does the transfer process take to complete?

— Sukhwinder Kaur, Canada

A. The replies to your queries are as under:

(a) The residential property owned by you can be gifted to your son. I hope the residential property owned by you is a freehold property. If this is so and there are no restrictions on the transfer of the property in question, an execution of a gift deed would be required in favour of your son. This, in my opinion would involve payment of stamp duty on the market value of the property. I am not aware if there is any exemption in the Union Territory of Chandigarh with regard to the payment of stamp duty on such a transaction. According to my information, the stamp duty is payable @ 5 per cent of the value of the property in UT of Chandigarh in respect of freehold properties.

(b) The capital gains tax is not payable in case of property, which is transferred by way of a gift.

(c ) After the execution of the gift deed and its registration with the sub-registrar’s office, you will have to approach various authorities like the municipal corporation/committee, electricity department etc. for mutation of the house in the name of your son. The procedure for this aspect will have to be ascertained from these departments. The transfer process would be completed after the execution and registration of a gift deed. The mutation with various departments is a procedural aspect.

Capital loss

Q. I am a retired CRPF officer and working as an assistant manager with a nationalised bank. My gross salary and other income for the financial year 2006-07 (AY 2007-08) is as under:

1. Gross salary from the bank Rs 2,34,796

2. Interest from FDR with the bank Rs 5,820

3. Interest from TD with PO Rs 3,800

4. Pension from CRPF Rs 21,600

My savings are Rs 1 lakh u/s 80C (PPF, PF, LIP etc)

Secondly, I had purchased a plot of 100 sq yds on December 31, 1993, for Rs 16,000 and Rs 2,000 were paid as stamp duty. I spent following amounts (includes my savings and housing loan from HDFC/ICICI) on said plot:

1) Rs 8,000 for demarcation of said plot during March 1993.

2) Rs 1,63,700 for construction of house thereon during September-December 1997.

3) Rs 75,510 for wood/jaali work during June/July 1998.

4) Rs 1,25,500 for marble flooring, minor repairs etc. during May/June 2000.

5) Rs 1,90,000 for erection of porch, stairs, one additional bathroom, increasing of grill height on gate, increasing of outer wall height, laying of submersible pump and whitewash during January/March 2004.

I sold the said house in September 2006 for Rs 4,90,000 only. Can I claim capital loss? Can the set off loss be carried forward and adjusted against salary/interest income in future also?

Kindly advice and calculate my tax liability.

– Sant Singh, Patiala

A. The answers to your queries are:

(a) On the basis of the facts given in the query the residential house property would be considered a long-term capital asset and capital loss, if any arising on the sale thereof, would be treated as a long-term capital loss. The same can be carried forward for a period of eight years but would be adjustable against any long-term capital gain arising in such years. Such loss can, therefore, not be set off against salary/interest income.

(b) On the basis of the figures given by you your total income works out at Rs 1,66,016 after giving the effect of deduction under Section 80C of the Act. The tax payable thereon for assessment year 2007-08 would be Rs 8,367. This is on the basis that you are an individual below the age of 65 years.

HUF property

Q. I have some queries regarding Income Tax provisions, which are as follows:

1. I have been allotted a plot by HUDA and paying interest on instalments. Please advise me if I can reduce the amount of interest paid on instalments of residential plot out of my interest income from bank/loans?

2. I have inherited a house from my father held by him in individual capacity through will. The will mentions my name only. But I want to treat its rental income under my HUF. Can I do so? If not, please suggest any ways to do so?

— Sanjeev Gupta, Chandigarh

A. The replies to your queries are as under:

(a) The interest payable on instalments in respect of a plot allotted to you by HUDA is in the nature of capital payment and will be added to cost of the plot. Such payment of interest cannot be deducted from the interest income derived from bank deposits or loans advanced.

(b) In case the house has been bequeathed to you in the individual capacity, the income of such property shall continue be treated as your income for the purpose of the Act even if such property is converted into an HUF property by you. This is in view of the provisions of Section 64(1A)(2) of the Act. This is apart from the consequence of the Act of throwing the residential house in an HUF hotchpotch being treated as a transfer.

The writer can be contacted at sc@scvasudeva.com 

Buzz on Bourses

Zoom condos in Philippines

New Delhi: Real estate firm Zoom Developers has said it would invest $100 million to develop 15 lakh sq ft condominiums in the Philippines. “We have proposed a capital outlay of $100 million for construction of 600 condominiums in Forbes park area,” Zoom Developers CEO Rumneek Bawa said in a statement. For this, Zoom Developers has signed a memorandum of understanding with the Philippines Land Bank Company. Zoom Developers has tied up with leading international architect firm, Palafox Associates, for designing of the project, Bawa added. — PTI

Ludhiana hooks Fishman

Jerusalem: An Israeli real estate group will invest $180 million in a construction joint venture in Ludhiana, as part of its expanding operations. Real estate baron Eliezer Fishman has signed a memorandum of understanding with an Indian company through a Fishman group subsidiary, Mondon, to invest in the joint venture, daily Ha'aretz reported. Fishman will own 50 per cent stake in the 180-square metre under-construction shopping centre in Ludhiana city, which is expected to yield annual revenue of $36 million, the report said. — PTI

Red Fort Cap to park $425 m

New Delhi: Private equity firm Red Fort Capital will invest $425 million dollar (about Rs 1,677 crore) this fiscal in the booming real estate market and has tied up with the Prestige Group for a township project in Bangalore. Red Fort India Real Estate Fund Managing Director Parry Singh said of the $425 million earmarked, it has already invested $225 million in five projects - one in Chennai and two each in Bangalore and Hyderabad. — PTI

RPS complex in Faridabad

New Delhi: Real estate developer RPS Group has said it will develop a 49-acre residential complex worth Rs 600 crore in Faridabad. “This mammoth project is no less a township that will provide about 2,500 flats and 56 pent houses,” RPS group Managing Director Rakesh Gupta said in a statement. The size of the apartment flats would vary from 1,250 sq ft to 2,360 sq ft, it added. — PTI

Fitch rating for Unitech

New Delhi: Global rating agency Fitch has assigned high credit quality rating ‘A+(ind)’ to the proposed Rs-500 crore long-term debt programme of the real estate firm, Unitech Ltd. It also assigned ‘F1+(ind)’ rating, indicating strong ability of timely repayment, to the proposed Rs 500 crore short term debt raising plan of the company. The outlook on the ratings are stable, Fitch said in a statement. — PTI

Kotak takes 11 pc in Pride Hotels

Mumbai: Pride Hotel Group, which operates four five-star hotels, has received equity investment worth Rs 45 crore from Kotak India Real Estate Fund toward part- financing its Rs 350 crore expansion and renovation plan. The company is setting up new five-star hotels in Mumbai, Goa, Bangalore and Hyderabad. Besides, it has acquired land at Alibaug where it proposes to set up a resort hotel-cum-spa, a press note issued by the Mumbai-based Pride Hotel Group said. — PTI

Infinite ties up with Shrachi

Kolkata: Real estate investment firm Infinite India Group, backed by the JM Financial group which plans to invest $400 million in residential, commercial and retail sectors over the next two years, has tied up with city- based Shrachi Group. A Shrachi Group statement has said the partnership with Infinite was for a Rs 200-crore investment to be made over the next one year in real estate projects of the group, primarily in the eastern region. — PTI

Ansal forays into power

New Delhi: Realty player Ansal Properties and Infrastructure Ltd has announced its foray into the power sector with the establishment of a 12 MW wind energy farm in Gujarat at an investment of over Rs 72 crore. The company had amended its objects clause to diversify into the power sector after receiving its shareholders' approval, it informed the BSE. "The wind energy farm consists of 8 turbines of 1.5 MW and was set up in four months time. The company incurred a fixed cost of Rs 6 crore per MW," Ansal API executive director V.K. Saigal said. — PTI

Redhawk township for AP

Hyderabad: Redhawk Investments Group, a Colorado-based real estate company, has announced its foray into the Indian infrastructure space through a maiden project in the city. Redhawk's first township, Vishadh Park, designed on patented concept of Twenty-Minute Lifestyle would be developed here, the group's CEO Bipin Agarwal told reporters here. Dreamland Infrastructure has joined as a co-promoter. The group plans to develop a 650-acre township focussed on providing a complete solution for services-oriented companies. — PTI

Mahindras eye direct retail

Mumbai: The $4.5-billion Mahindra Group has said it was entering the retail business. The auto group has named new venture, Mahindra Retail. “The group believes that this is the opportune time to enter and extend its business into direct retailing, when the organised retail market is expanding in India,” Mahindra group company executive vice-chairman Raghunath Murti said. — PTI