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Hyderabad: Govt. to spend Rs 50,000 crore on infra upgrades

Comments Off on Hyderabad: Govt. to spend Rs 50,000 crore on infra upgrades   |  March 24, 2020

Telangana government has plans to infuse a sum of Rs 50,000 crore to uplift the infra status in Hyderabad in the next five years. KT Rama Rao, Minister for Urban Development and Municipal Affairs (MA&UD) has shared that the fund would be utilised for the development of the Hyderabad Urban Agglomeration area.

A corpus of Rs 50,000 crore is being readied by the Telangana government, which would go into the development of the Hyderabad Urban Agglomeration (HUA) region. KT Rama Rao, Minister for Urban Development and Municipal Affairs (MA&UD) has shared the information. HUA region comprises the core of the city as well as its outskirts falling within the Outer Ring Road (ORR) limits.

Developments include strengthening public transport, with the government weighing the possibility of developing an elevated Bus Rapid Transport (BRT) System or tramway in HITEC city to decongest traffic. As a response to demands for better municipal administration, the State government will also introduce a new mechanism for building permission approval, named TS-bPASS.

For the infrastructure upgrade, the government will shell out Rs 10,000 every year, earmarked for HUA development. Some of the pending development works in 38 Urban Local Bodies (ULB) under Mission Bhagiratha would also be taken up soon with a budget of Rs 800 crore.



Nagpur civic body to levy triple tax on buildings without OC

Comments Off on Nagpur civic body to levy triple tax on buildings without OC   |  March 24, 2020

The Nagpur Municipal Corporation (NMC) has proposed a penalty of threefold property tax on residential structures lacking the Occupancy Certificate (OC).

As the Nagpur Municipal Corporation (NMC) plans to levy threefold property tax on residential structures lacking the Occupancy Certificates (OCs), it may affect as many as 90 percent of the buildings in the city.

Tukaram Mundhe, Commissioner, NMC, avers that the occupancy certificate is mandatory as per the building byelaws stated under the Maharashtra Regional and Town Planning (MRTP) Act, 1966. Therefore, all the building owners should obtain OC to avoid penalties. Nagpur has around 3,000 buildings that were served notices under the MRTP Act, but penalties were not levied until now.

However, lately, the State government has issued orders to all urban local bodies to recover triple property tax on unauthorised constructions developed in the last eight years.

Criticising the move, experts have opined that instead of penalising owners, the corporation should organise special camps and regularise unauthorised structures in the compounding scheme and then compel developers to pay charges for not obtaining required documents.



Mumbai: Authority commences work on a new underground metro corridor

Comments Off on Mumbai: Authority commences work on a new underground metro corridor   |  March 24, 2020

The Mumbai Metropolitan Region Development Authority (MMRDA) has begun the construction of 3.1 km-long new Metro Line 7A. The proposed metro corridor would comprise two stations and would connect Line 7 with the Chhatrapati Shivaji International Airport.

The Mumbai Metropolitan Region Development Authority (MMRDA) has commenced the development of the Metro Line 7A.  The reach of the new metro would be 3.1 km, out of which 2.1 km-long section would be underground and would include a twin-tunnel. The corridor would establish connectivity between Metro Line 7 and the Chhatrapati Shivaji International Airport. Other areas that are expected to benefit from the improved connectivity include Andheri and Dahisar (East).

According to an MMRDA official, “The metro would comprise two stations Airport Colony and Metro T2 station. From Andheri East to Airport Colony, it would follow an elevated route; thereafter, it will be underground until it reaches airport station of Metro 3 (Colaba-Bandra-Seepz).”

Contractors have commenced the barricading task between Bahar Junction and NAD Colony. However, the airport authorities are yet to send the final approvals. Further, MMRDA would soon discuss the details with the Mumbai Port Trust for funding the extension of Line 4. The development authority is initially expecting assistance of Rs 1,830 crore of the total cost of the project, i.e. Rs 8,730 crore.



PMAY progress report: Centre approves 93 percent of total housing units

Comments Off on PMAY progress report: Centre approves 93 percent of total housing units   |  March 24, 2020

The Central Government has approved around 93 percent of the total planned housing units under the Pradhan Mantri Awas Yojana-Urban (PMAY-U). By far, as many as 1.03 crore housing units have been sanctioned across the country under the said scheme.

To provide affordable pucca houses to the homeless population of the country, the Central Government has approved over 1 crore houses in urban parts of the country under the Pradhan Mantri Awas Yojana – Urban (PMAY-U). Against the humongous target of 1.2 crore units, the Government has sanctioned nearly 1.03 crore units across the States and Union Territories (UTs). Of the approved units, approximately 61 lakh units are under-construction and nearly 32 lakh units have been completed and successfully delivered to the eligible candidates.

Andhra Pradesh, Uttar Pradesh and Maharashtra have received the maximum number of sanctions at 20.08 lakh units, 15.74 lakh units and 11.68 lakh units, respectively. Amongst others, Tamil Nadu received 7.89 lakh sanctions, and Gujarat received approval for 6.46 lakh units.

Moreover, across States, about 29 lakh beneficiaries have already occupied the houses built under PMAY-U. Uttar Pradesh has reported the highest number of occupancies at 4.29 lakh led by Gujarat and Madhya Pradesh at 3.22 lakh houses and 3.21 lakh units, correspondingly. Overall, the Government aims to deliver 1.2 crore houses by 2022. Hence, the remaining nine lakh houses would be sanctioned in a couple of months’ time . Furthermore, to expedite the project deliveries, the Government has also created a National Urban Housing Fund (NUHF) of Rs 60,000 crore.



Environment Ministry proposes new norms for clearance of realty projects

Comments Off on Environment Ministry proposes new norms for clearance of realty projects   |  March 24, 2020

The Ministry of Environment, Forest and Climate Change (MoEFCC) has drafted the Environment Impact Assessment (EIA) notification 2020 to curb the construction violations across the country. The new draft would replace the EIA notification 2006.

The Ministry of Environment, Forest and Climate change (MoEFCC) has proposed a new set of environment clearance norms in its Environment Impact Assessment (EIA) notification 2020. Earlier, the environment approvals to construction projects  were given as per the criteria stated in the EIA notification 2006; however, the new draft would replace the former set of rules.

The Ministry has placed the EIA report in the public domain on March 12, 2020 and has sought views and comments from industry stakeholders within the next 60 days. Since 2017, MoEFCC expert panel has identified hundreds of projects that violated environment clearance norms defined in 2006. The draft 2020 goes a step beyond as it institutionalises the ‘fail accompli’ situation. The new draft would take notes of violations that are recurring in nature and would ensure that they are quickly identified during the process of appraisal or monitoring or inspection conducted by the regulatory authorities.

The Environment Ministry deems it necessary to lay down the procedure to curb the construction violations in the best interest of the environment. It would lay norms for projects such as airports, highways, ports and real estate projects.  



NBCC to issue tenders to complete eight stuck projects in Noida

Comments Off on NBCC to issue tenders to complete eight stuck projects in Noida   |  March 24, 2020

In order to expedite the completion of eight stalled residential projects in Noida and Greater Noida, the National Buildings Construction Corporation Limited (NBCC) would soon issue a tender.

The NBCC has plans to float a tender for completing the eight stalled housing projects of Amrapali, which includes over 23,000 residential units in Noida and Greater Noida with a total investment of over Rs 5,000 crore. The decision to issue the tender was made after the directive issued by the Supreme Court (SC) to take over the stalled projects in the region.

Last year, the apex court had given the responsibility to State-owned NBCC to complete the delayed projects in NCR at the predetermined project management fees of eight percent. Earlier, last year in August, NBCC had refused to invest the capital for carrying out the Amrapali’s stuck projects, which has an investment of over Rs 8,500 crore.

Here are the list of developers and their projects that NBCC has been tasked with completing the stalled projects. 

List of projects to be completed by NBCC
DevelopersNumber of stalled projectsNumber of housing unitsEstimated cost (in Rs)
Amrapali16 projects42,000 flatsRs 7,714 crore
Unitech74 projects65,000 flatsRs 14,000 crore
Jaypee27 projects24,000 flatsRs 6,500 crore


India Ratings predicts weak demand for residential sector in FY21

Comments Off on India Ratings predicts weak demand for residential sector in FY21   |  March 24, 2020

According to a study by India Ratings, lack of credit availability and ongoing economic slowdown in India due to the coronavirus pandemic could lead to the residential sector witnessing weak demand in the fiscal year 2020-21. 

Residential demand could remain muted in the next financial year, 2020-21 due to the increasing risks to India’s growth in case the economic impact of coronavirus continues beyond the first quarter.  

Moreover, the housing sector faces a liquidity crunch and refinancing challenges due to increasing uncertainty over the availability of credit in the market, coupled with poor demand. This is in the backdrop of the recent meltdown in the financial market and rising risk aversion among investors.

The top metro cities of India witnessed a drop in total residential sales by four per cent to 204 million sq ft in the first nine months of FY20, from a total sales of 279 million sq ft in FY19.

After growing steadily over FY17 to FY19, the affordable houses priced below Rs 50 lakh registered a decline in the first nine months of FY20. Meanwhile, Grade A developers registered a spike in sales due to consolidation in the market. Nevertheless, this growth rate can come under threat if the economic impact of coronavirus continues beyond the current quarter.

Geographically, the National Capital Region (NCR) saw the highest decline, while Hyderabad registered a stable growth rate in regards to area sold. Investors’ demand has been negatively impacted due to the residential sector under-performing as an asset class. 



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