WB keen to fund city's two new mega Metro projects

By PTI | 15th September 2014

The proposed Dahisar-Bandra-Mankhurd Metro line is estimated to cost Rs 28,900 crore

Mumbai, September 15: With the Japanese government taking a lead in funding the megapolis' many signature infrastructure projects, the World Bank has evinced interest in funding the proposed Charkop-Dahisar and Wadala-Teen Hath Naka Metro projects.

The Japan International Cooperation Agency (JICA) has already committed to fund the Mumbai Metropolitan Region Development Authority's (MMRDA) two ambitious projects-- the just announced Rs 23,136-crore Colaba-Seepz Metro and the 22 km Rs 9,630-crore Mumbai Trans Harbour Link (MTHL), which still remains on paper.

"The MMRDA is undertaking large infrastructure projects which require huge investments. Recently, the JICA has committed to funding two major projects in the city and it has also shown interest in funding some more projects as well.

"At the same time, the World Bank has also expressed interest in funding two other proposed metro projects which we will be soon taking up," MMRDA additional metropolitan commissioner Sanjay Sethi told PTI here.

The World Bank had earlier funded two phases of Mumbai Urban Transport Projects implemented by the authority. While phase I involved Santacruz-Chembur and Jogeshwari-Vikhroli link roads, phase II was to strengthen the suburban railway networks and improving its operational efficiency.

The state government recently merged the stalled Charkop-Bandra-Mankhurd Metro line with the proposed Dahisar-Charkop corridor by converting the entire line underground instead of the originally planned elevated line.

The proposed 40.2-km Dahisar-Bandra-Mankhurd Metro line is estimated to cost Rs 28,900 crore with all the 37 stations underground.

The cost of 32-km Charkop-Bandra-Mankhurd corridor was originally pegged at Rs 7,660 crore, while the 7.8-km Charkop-Dahisar corridor was estimated to cost Rs 4,680 crore.

The state has also cleared a 30.8-km-long metro link connecting Wadala on the easter fringe to Teen Hath Naka on the northwestern fringe that will have 31 stations. The link will have 10 underground stations while the rest will be on elevated line.

Source: www.igovernment.in

Govt plans to merge existing state sponsored urban housing projects

BY  PTI

The government is looking to enable online clearances for housing and other urban development projects.

With the target of providing of providing houses for all by 2022, a new integrated National Housing Mission will be launched soon by merging some of UPA's flagship schemes like JNNURM and Rajiv Awas Yojana.

Noting that the gigantic task of ensuring housing for all needs large scale participation of private developers, Urban Development and Housing Minister Venkaiah Naidu said the Government is committed to promote Public-Private-Partnership and operational hurdles will be removed by making available land required and enabling expeditious clearances.

The Minister said that in consolations with states/UTs and urban local bodies, an effort is being made to enable online clearances for housing and other urban development projects.

"We have experiences of JNNURM, Indira Awas Yojana, Rajiv Awas Yojana, Rajiv Rinn Yojana. There are so many yojana some of them even did not take off," Naidu said at a real estate conference here.

While JNNURM was meant to create urban infrastructure and also affordable housing, Rajiv Awas Yojana, Indira Awas Yojana and Rajiv Rinn Yojana launched with much fanfare were exclusively for providing housing for the needy and economically weaker sections in the society.

Targeting UPA government's flagship programmes, Naidu said Rajiv Rinn Yojana, "inspite of best efforts, could not take off. So after taking over we have studied all these schemes and now the government has decided to merge all schemes into one. It will be National Housing Mission which will be launched soon."

Lamenting the shortage of housing, he said "a decent house is a basic requirement for a dignified living. But even after 67 years of Independence, crores of families do not have proper houses to live which is big challenge before the country. That is why the government has given a clarion call for houses for all by 2022."

Assuring real estate developers all help, Naidu asserted that the proposed Real Estate Regulation Act will not "stifle and strangulate the development of real estate sector but only seeks to protect the interests of the consumers."

While responding to the concerns over excessive regulation of construction sector, Naidu emphasised the need for protection of consumers whose confidence is critical for the growth of the sector.

"Given the deficiencies in the 'Law of Torts', the consumers are finding it difficult to address their grievances as legal remedies are expensive and time consuming."

He said things were not moving as per expectation for many years now.

"The Ministry would consider the suggestion to rename the proposed law as ?Real Estate Facilitation and Consumer Protection Act?," he said.

Naidu said that he is making efforts to enable increased flow of bank finances into real estate sector through various options including that of priority lending. 

Naidu appealed to the private builders to accord priority for affordable housing schemes, saying that "profits are OK but not profiteering".

He suggested a 10-point agenda for the real estate sector to promote affordable and inclusive housing including rental housing for the economically weaker sections and low income groups looking at opportunities at the "bottom of the pyramid" as this sector is viable through larger volumes.

The agenda should include energy efficient, sustainable and aesthetic construction, harnessing solar energy and recycling of water through decentralised Sewerage Treatment Plants, rainwater harvesting and conservation of water bodies, marshy areas, grasslands, boulevards among others.

It should also include transparency and accountability in project implementation, ensuring consumer protection and symmetry of information, skill development of construction workforce and standardisation and professionalization of construction processes.

 
"Make profits but avoid profiteering and engage with central and state governments for promotion of the sector along with ensuring 'Housing for All' by 2022 in the spirit of 'Team India'," he said.

Brigade Group forms $247M JV with Singapore’s GIC for residential realty projects

BY  Swet Sarika

Dutch pension fund APG and Canada’s CPPIB had also struck similar platform deals in the Indian realty space.

Bangalore-based Brigade Group has entered into a Memorandum of Understanding (MoU) with Singapore's sovereign wealth fund GIC to jointly invest up to Rs 1,500 crore ($247 million) in residential developments in select cities of South India, the company said in a stock market disclosure.

The JV aims to acquire land for residential and mixed use developments in cities reporting strong secular demand for high quality residential units.

MR Jaishankar, chairman and managing director, Brigade Group, said, "Our first joint venture project - Brigade Cosmopolis is a well conceived, residential community with several amenities coming up at Whitefield, Bangalore that will be home to over 880 families. This JV will provide us a platform to acquire and execute a series of similar projects in South India."

Lee Kok Sun, managing director and co-head, Asia, GIC Real Estate, said, "As a long term investor, GIC is a believer in India's growth potential. We seek partners who share our philosophy and values and have a reputable track record in the markets in which they operate."

A number of real estate and infrastructure developers have formed alliances with global investors for investment and development of real estate in India. In February this year, Piramal Enterprises Ltd and Canada-based CPPIB Credit Investments Inc joined hands to offer rupee debt financing to residential projects in major urban centres of India. The two partners committed an initial investment of $250 million each for the same.

Recently, it sealed its debut deal from the joint venture where it invested Rs 110 crore in a luxury residential project of Advance India Projects Ltd in Gurgaon.

In March this year, The Xander Group Inc. and an investor consortium led by Dutch pension fund asset manager APG Asset Management NV, announced the creation of a $300 million (Rs 1,800 crore) venture that will buy income generating, institutional grade commercial assets across India’s main office markets.

Two years ago, Godrej Properties forged a residential property development platform with a string of foreign institutional investors led by Dutch pension services provider APG. The platform focuses on developing mid-income residential properties in Mumbai, Delhi-NCR and Bangalore besides looking at opportunities in Pune and Chennai. Godrej Properties is the exclusive developer of the projects and also gets development management fee.

(Edited by Joby Puthuparampil Johnson)

Reliance Inds formally opts out of proposed Haryana SEZ

BY  Anuradha Verma

Reliance and HSIIDC had formed a JV in 2006 for setting up SEZs in Haryana.

Reliance Industries Limited’s (RIL) group company Reliance Haryana SEZ Limited (RHSL) has returned 1,383.68 acres of land in Gurgaon which it had acquired from the Haryana State Industrial & Infrastructure Development Corp (HSIIDC) to set up special economic zones due to revision of strategic priorities.

This formally ends RIL’s proposed plan to develop an SEZ, which was already in the cold storage for years.

RSHL – a joint venture between RIL and Haryana government-owned company HSIIDC – was formed to develop SEZs, model economic townships and other infrastructure facilities in Haryana. HSIIDC has also exited the venture and project, the company said on Monday.

However, RIL would continue with development of a part of the project.

“The model economic township project will continue to be developed in the Industrial Model Township framework on the directly-purchased land. The development work has started on 290 acres of land as an 'industrial colony'. Companies such as Panasonic and Denso have established their manufacturing units in the MET Project,” it said in the statement.

Reliance Ventures Ltd, a wholly owned subsidiary of RIL, and HSIIDC had formed a JV in 2006 for the development of a large multi-product SEZ in Gurgaon and Jhajjar districts of Haryana.

HSIIDC transferred 1,383.68 acres to RHSL in 2007 to development the project. In 2010, Haryana government approved the development of SEZ over the land transferred by HSIIDC in Gurgaon and development of Model Economic Township (Industrial Model Township Framework) on the directly purchased land.

However, the Indian government withdrew the fiscal concessions of exemptions of MAT of DDT for the SEZs following which RSHL decided to return the 1,383.68 acres in January 2012 as SEZs became unviable with the withdrawal of fiscal incentives.

Earlier this year, the Haryana state cabinet gave approval to return the land to HSIIDC at a price much lower than the price at which it was transferred to them. It also approved the exit of HSIIDC from the project. Source VCCircle

(Edited by Joby Puthuparampil Johnson)