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POWER point
The need for energy-efficient construction has been fuelled by the rising power consumption
of the fast expanding realty sector, writes C.M. Dhall
The building and construction industry is expanding rapidly at over 49 per cent per year, with more than 40 million sq m of commercial and residential space is being added annually. This is resulting in an additional burden of nearly 5.5 billion units of electricity. This energy consumption is not only dependent on the type of buildings being designed and constructed, but also on the kinds of interiors and gadgets which are being used therein. In view of this power load, it may become mandatory for developers to design and construct buildings that consume not more than 500 kw of electricity, according to the energy conservation building code, Bureau of Energy Efficiency. The statutory body, under the power minister, may make it mandatory for developers to adhere to energy-efficiency norms. The energy conservation building code sets the minimum energy performance standards only for commercial buildings or complexes with a load of 500 kw or more by the end of this year. This has helped in a saving of around 1.7 billion units annually in the first year itself, based on the current data. So far, over 320 buildings in the country have been built as per the code and many more are likely to be added to the list.
The buildings being designed and used today are consuming excessive energy for heating/cooling/lighting and even for the material being used for construction. This may cause serious environmental problems. There is an about 30 to 40 per cent energy-saving potential in the building industry, which shall not only ease the load on the power sector to meet its demands but also help the citizens in reducing their electricity bills. Further, energy consumption is not only dependent on the type of building design, but also on the interiors and the gadgets that are used therein. Several studies in the country have shown that energy efficiency does not get adequate attention when new buildings are designed. Incorporation of energy-efficiency provisions at the design stage of new buildings is crucial. Initially, implementation of the codes will be voluntary but will be made mandatory soon under the Energy Conservation Act, 2001. The codes set the minimum efficiency standards for the external wall, roof, glass structures, lighting, heating, ventilation and airconditioning of commercial buildings in all the five climatic zones in the country. The state governments will have the flexibility to amend these codes to suit local or regional needs and notify them accordingly. According to Haryana chief minister Bhupinder Singh Hooda, the state has acquired the distinction of being the first in the country to issue a comprehensive notification for the mandatory use of solar water-heating systems, compact fluorescent lamps (CFLs) and tubelights in government and semi-government buildings. The use of ISI-marked motors pumps sets have also been made mandatory. Furthermore, all the existing bulbs and tubelights installed in the government buildings offices, corporations, agencies etc of Haryana have been replaced with energy-efficient CFLs. Energy conservation has emerged as the viable option to achieve the goal of socio- economic development and to ensure environmental conservation. Financial commissioner, renewable energy, Ashok Lavasa, says that Haryana is organising a national workshop on promoting the energy conservation building code in association with the Bureau of Energy Efficiency, Government of India, to create an awareness among architects, engineers and builders, on power-saving building designs, the new National Rating System for green buildings etc. The writer is the SDO, civil, Haryana Vidyut Parsaran Nigam
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Green house
Fiscal benefits for eco-friendly buildings mooted
Tope was addressing a seminar on ‘Green Building' organised by the Indian Merchants Chamber (IMC) in Mumbai recently. The fiscal benefits would be given in the form of DC Rules Amendments, 10-50 per cent exemption in development charges, free balcony space to developers, and also 10-50 per cent concession in property tax to residents, an IMC release quoting the Minister said. The State government was also determined to get a new law passed in the coming Assembly session for switching from the current 'ratable value' basis to the 'capital value' basis for levying property tax, Tope said. Green buildings are gaining ground in the country as they offer long-term advantages like energy efficiency, water conservation, waste reduction, use of recycled wastes and other eco-friendly features.
— PTI
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Deed indeed
Please advice if the profit from this sale will be long-term or short-term capital gain. If this is long-term capital gain, with my father-in-law investing Rs.55,00,000, would he be able to save tax or will he be liable to pay tax on remaining Rs 21 lakh on a proportionate basis? — Nitin Grover A. There is a difference of judicial opinion with regard to the determination of period of holding where the flat is booked on installments basis. However, in quite a few cases it has been held that the period of holding shall be counted from the date of the allotment of the flat. The latest decision in this regard being that in CIT vs. Jindas Panchand Gandhi 279 ITR 552, wherein it has been held by the tribunal that the period of holding of a flat should be counted from the date of allotment of shares to a member in the society. The Gujarat High Court accepted the view of the tribunal and dismissed the appeal. If this contention is accepted, the capital gain arising on the sale of flat owned by your father-in-law should be a long-term capital gain. In case this plea is not accepted, the capital gain earned on the sale of the flat should be treated as short-term capital gain and tax levied accordingly. The short-term capital gain cannot be saved by making an investment in capital gains tax saving bonds or investing the same in the acquisition or construction of a residential house.
Farm cuts
Q. Agricultural land was purchased on October 1964 by my mother for Rs 6,500. She expired on January, 2005, and the land was inherited by us four brothers and sisters. The said land is being sold in August, 2008 for Rs 2 crore. The sale price will go in four equal shares. The land is not within municipal limits. Will capital gain tax be levied, if yes, how much and how to save tax. — Negi A. The capital gains tax would be levied if the land is outside the municipal limits but is situated within such distance not exceeding 8 km from the municipal limits, as notified by the Central Government. Accordingly, the location of the agricultural land will have to be examined on the basis of the notification. The taxability of capital gain arising on the sale of such a land can be decided thereafter. In view of these particulars not being available in the query, this aspect cannot be replied. The capital gains tax can be saved by making investments in the following manner; (a) Each of the co-owners can invest his/her share of net consideration in the acquisition of a residential property within two years of the date of transfer of land or; (b) Each of the co-owners can invest his/her share of net consideration in the construction of a residential house within three years of the date of transfer of the land or; (c) Each of the co-owners can invest his/her share of capital gain arising on the transfer of land in the acquisition of capital gain savings bonds within six months of the date of transfer. Such bonds have a lock-in period of three years. It may be added that an assessee can choose to make an investment partly in the acquisition or construction of a residential property and partly in the acquisition of tax savings bonds so as to claim the exemption from the capital gains tax.
Flat rate
Q. I shall be very thankful to you if you can guide me whether the income tax deduction is available on a loan taken for acquiring a shop-cum-flat too. If yes, kindly elaborate.
— Amit
A. The deduction for any amount towards the repayment of a loan taken for acquiring/constructing a residential house is available under Section 80C of the Income Tax Act 1961 within the overall limit of Rs 1 lakh. If you have acquired a flat which is meant for residential purposes you may be able to get the deduction of the repayment of a proportionate amount, provided it is possible to ascertain the cost of the flat separately.
The writer can be contacted at sc@scvasudeva.com
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Consolidation drive Pradeep Sharma Zirakpur village-turned-township is all set to emerge as Chandigarh's Gurgaon. Its proximity to Chandigarh and strategic location on the tri-junction of three major highways are proving to be boon for the town, with big realtors taking a fancy for the township, says Sital Singh Bains, chairman of the Silver City group of companies. "In fact, the coming up of the international airport at Chandigarh should give the much-needed boost to the real estate sector in the Dera-Bassi-Zirakpur belt, says Bains, who took the lead in establishing the first state-of-the-art township — Silver City — in Zirakpur. With Chandigarh going beyond the reach of the middle class and lower middle class, Zirakpur, which serves as a gateway to Himachal Pradesh and Punjab, provides an ideal and affordable option for these sections of society, the realtor says. Moreover, Chandigarh's limited 114 square km area and strict architectural controls constrict the real estate sector but the Zirakpur area does not have any of these limitations. While major realtors go in for expansion, Bains prefers consolidation. Currently, Cosmo Plaza, group's flagship shopping mall-cum-multiplex on the Chandigarh-Ambala highway, is in an advanced stage of completion. Another housing project, Silver City Themes in Dera Bassi is set to be re-launched. With the Punjab Government formulating a new policy for the relocation of the hazardous industries after a directive from the Punjab and Haryana High Court, the area around Themes would be the next destination for the investors and end-users, Bains claims. He feels that with the Parkash Singh Badal government taking "proactive" measures for the development of the real estate sector, particularly in the Mohali area, the real estate sector is set for an upswing. The current slowdown in the real estate sector is only a transitional phase, he quips.
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Ceramic Magic Jagvir Goyal Ceramic tiles were the unanimous choice of people as a quick finish flooring material till the time vitrified tiles invaded the market. Thereafter, the floor area of buildings got divided between these two types of tiles. While the main areas such as the living room, bedrooms and circulation areas were provided with vitrified tiles, ceramic tiles were restricted to the bathrooms and the kitchen. However, many people still prefer to provide ceramic tiles in these areas as these tiles are cheaper than vitrified tiles. The main advantages of using tiles instead of marble flooring is that these can be provided in the least possible time and no polishing mess is created. For the walls, these still are the unanimous choice. However, ceramic tiles themselves offer many options and a choice can be made, depending upon the area of use and one’s personal preference. Here are a few guidelines: The basics: Basically, there are only two types of tiles-vitrified or ceramic. Ceramic tiles further have variety in the form of porcelain tiles, glazed tiles, unglazed tiles, matt finish tiles and antiskid tiles. Many dealers offer porcelain tiles as a separate variety. Porcelain tiles are, in fact, a variety of ceramic tiles only. These have recently made a comeback and almost all major manufacturers are selling these under matching names such as porselain, porselano, porcelano and so on. Classification: Ceramic tiles have four classes. These are classified as Group II, Group III, Group IV and Group V tiles. Strength wise, Group V tiles are the strongest and most resistant to abrasion. The cost of the tiles goes up as we choose higher groups. A judicious choice should therefore be made. Choose Group IV or V ceramic tiles for floorings and Group III tiles for walls. Size & thickness: Ceramic tiles are being produced in many sizes, varying from 100 mm x 100 mm to 600 mm x 600 mm. Generally, the bigger size is restricted to porcelain tiles. Use 600 x 600 mm size for floors if you are choosing porcelain tiles. Otherwise 400 x 400 mm size looks beautiful. In the kitchen and bathrooms, use 400 x 400 mm or 300 mm x 300 mm size tiles for flooring. For the walls, choose 200 x 300 mm or 200 x 200 mm size tiles. Smaller sizes have too many tile joints and more workmanship is required. Thickness of the tiles varies from 5 to 10 mm. Choose 7 to 10 mm thick tiles for the flooring and 5-mm thick tiles for walls. Antiskid tiles: For the bathrooms and kitchen floors, choose anti-skid tiles. They are cheap in comparison to other floorings and cost about Rs. 30 per sq ft, including their fixing for Group IV tiles and about Rs 40 per sq ft for Group V tiles. Avoid choosing white colored tiles for the floors as the dirt marks are easily visible on them and the floor keeps looking dirty. While choosing anti-skid tiles, make sure about their resistance to skidding. Ask the tile dealer for such class of anti-skid tiles that offer resistance to skidding under soapy solution conditions. This aspect must be checked that the tiles, when wet, don’t turn slippery. Countless colours are available in this category. Choose as per your liking. RAK and Kajaria are some reputed manufacturers who offer a wonderful variety of these tiles. Wall options: For the bathroom walls and kitchen wall above the worktop, you can choose from amongst ceramic tiles, glass tiles, glass mosaic tiles and hand-painted tiles. Among these, ceramic tiles are the cheapest and hand-painted ones the costliest. Choose Group III glazed tiles for walls. For the glazing of tiles, a mixture of glass and elements like Feldspars, Zirconium and Zirflour is applied on raw tiles to give them a glassy look. Tiles are produced either by firing them twice-first burning the tile biscuit and then again burning them with the glaze applied on it or by firing them only once, with the glaze is applied on them in the first instance itself. Tiles burnt singly are better and you should choose them for walls. Tile literature available with the supplier will tell you whether the tiles are single fired or double fired. Further, specially look for no broken edges of tiles. Preparing the walls: Before fixing tiles on the walls, see that the walls are truly even. Some unevenness can be absorbed by the mortar layer. Never start fixing tiles on a wall from a corner or from floor upwards. The horizontal line of floor and wall is never truly straight. Nor the vertical corner is truly straight. Ask the mason to prepare a measuring batten ‘A’ by marking tile plus joint widths on it. Position another batten ‘B’ horizontally by leaving a space equal to one tile width above the floor. Now mark the tile spacing from the measuring batten ‘A’ to the horizontal batten ‘B’. Similarly, fix a vertical batten ‘C’ in the corner by leaving space of one tile width from the corner. See that the angle between horizontal and vertical battens is exactly 90 degrees. Now, transfer the tile spacing from measuring batten ‘A’ to vertical batten ‘C’ also. In case tile size is not square, a batten D should be created for transfer of vertical tile spacing. This is an easy method for accurate work. The corner of these two battens is a right angle and the starting point of our tiling work. Fixing of tiles: Use liquid polymer additives like Fevimate for mixing with the mortar. Otherwise epoxy-based adhesives can be applied on prepared surface. Spread this adhesive on the wall for an area of 1 square metre. Comb it with a toothed spreader. Doing that will provide a better grip for tiles. Fix the bottom most horizontal row of tiles with horizontal batten in position. Press the tiles well. No space is required to be provided between the tiles for grouting purposes. Tile edges are so angled that this space itself becomes available. Fix more rows moving upwards till all the rows are laid. Allow at least 16 hours for the adhesive to develop full strength. Remove the battens only thereafter. Now fix the bottom row of tiles and vertical column of tiles in the corner in full or part as the case may be, to completely fill the space. Grouting of tiles: Do grouting of tiles fixed on the walls. Allow 24 hours to pass before doing the grouting work. Keep using a damp sponge to wipe off the extra grout from the tile surface. Tile work doesn’t need any polishing. Just rub them clean, allow two weeks for their full setting and they are ready for use. Curved surfaces: If tiles are to be fixed along curved surfaces or along the curved edge of a washbasin, create a cardboard template of the curve. Now, lay the required number of tiles on the floor or a plain surface, put the template over them and transfer the curve to the back of tiles. Mark the tiles as 1,2,3,4… and cut them along the curve. On fixing of these tiles along the curved surface of washbasin, you will find no difference between its edge and the tiles and the finished work shall be what you have actually been desiring for. Go ahead. Happy building! The writer is deputy chief engineer, civil,
PSEB. He can be reached at www.jagvirgoyal.com
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Room Recession
The demand for office space from IT firms set to decline in Gurgaon, Noida
In its latest report for the second quarter 2008, Jones Lang LaSalle Meghraj says that though Indian office markets have continued to post growth over the past few years, the last few quarters have seen a polarisation in them in terms of growth in demand across the country. It has categorised the office markets across six major cities—Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad and Kolkata—in three broad segments. The first segment includes markets which are likely to be ‘susceptible’ in terms of retarded demand growth for the remaining half of 2008, the report says. The consultant has put Gurgaon and Noida (Delhi NCR suburbs), Whitefield and Electronic City (Bangalore suburbs), OMR (Chennai suburbs), Thane and New Mumbai ( Mumbai suburbs) and Rajarhat (Kolkata suburbs) in the "susceptible" category. "In case of the susceptible markets, demand from occupiers in the IT/ITES segment, could be rationalised on the back of economic slowdown in the US. "This, coupled with the strong supply pipeline in many of these markets, could lead to a potential consolidation in the respective markets, leading to relatively higher vacancies," Jones Lang LaSalle says, adding that this might not lead to any immediate rental consolidation. The Consultant, however, cautions that "if the global economic slowdown sustains, we foresee the vacancies to rise in these micro-markets due to strong supply volumes. This might put pressure on the rental values next year." Jones Lang LaSalle Meghraj says that micro markets which are dependent on demand from IT/ITeS occupiers are likely to be more sensitive to the occupation cost variations compared with those micro markets which derive demand from non IT/ITeS occupiers. The consultant has put the central business district (CBD) of all the six cities in the "strong micro market" category, which means these cities would maintain a demand growth in the second half of 2008. The third segment includes micro markets which have "high potential" in terms of improving demand growth for the rest of the year. The outer ring road (Bangalore SBD), Mount Poonamallee, Guindy (Chennai SBD), Gachibowli (hyderabad suburb), Andheri, Vikhroli and Kanjurmarg (Mumbai) and Sector five salt lake (Kolkata suburb) figures in the high potential micro markets category. In terms of new office supply completions in the first half year of 2008 compared with the same period last year, the consultant says Kolkata, Chennai, Mumbai and Delhi have posted the highest positive growth rate. But, Bangalore and Hyderabad are two cities which have actually posted negative growth in terms of stock completion in the first half of 2008 vis-a-vis the same period in 2007.
— PTI
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Thrust on PPPs to augment infrastructure
Putting the thrust on public private partnerships (PPP) to overcome resource gaps in urban infrastructure, urban development minister Jaipal Reddy has said the PPPs are the only option to raise money required for various projects. "Given the present taxation structure the urban local bodies will not be able to raise the money required for various projects. Hence PPS are the only option to raise resources," Reddy has said. PPPs have become potential strategies to promote urban infrastructure investments which lead to efficiency in service delivery and inclusive growth, he said. He was speaking at a workshop on capacity building for promoting public private partnerships in Urban Infrastructure in Hyderabad recently. Highlighting the immense pressure which the Indian urban infrastructure is facing, he said there are many gaps with respect to water supply, sanitation, waste management, public transport, housing and facilities for urban poor. He said that while the 11th Plan estimates Rs 1,29,000 crore will be required to take care of water supply, solid waste management and sanitation, a resource gap of nearly Rs 89,237 crore will be needed to meet urban infrastructure needs. Mentioning the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), the flagship programme of the Urban Development Ministry, the minister said it provides the framework and incentives for urban local governments to promote PPP. "Yet structuring and implementation of PPP projects in critical sectors such as urban transportation, solid waste management, water and sanitation continue to be a challenge," according to an official release. For the successful
implementation of any PPP agreement, involvement of local stakeholders and transparency in
awarding of contracts are of paramount importance, Reddy said. — PTI
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The Maharashtra Government would look at the recent proposal made by the Mumbai Mahanagar Palika for extending fiscal benefits for the construction of green buildings, minister of state for urban development, Rajesh Tope, has said.
Q. My father-in-law booked a flat in Gurgaon through a reputed builder on February 13, 2004, by paying a booking amount worth Rs 1,37,000 and the allotment letter which had the flat no and building number area mentioned in it was issued on the same date. The flat buyer agreement was signed on February 28, 2004. This flat was booked under the installment plan and the possession was to be handed over in three years. The possession was taken by my father-in-law on July 12, 2007, the conveyance deed of the flat was registered on November 14, 2007. Its total cost of this flat came out to be Rs 32,80,000. He sold this flat on February 1, 2008, for Rs76,00,000. The proceeds from the sale of this flat (Rs.55,00,000) were reinvested in March in another residential flat. 
The demand for office space from IT and ITeS companies is likely to fall in Gurgaon and Noida during the second half of 2008 on account of the economic slowdown in the USA, a global realty consultant has said in its report.