Central government closes about 62 toll plazas

In the recent action, central government informed in Lok Sabha that they has closes about 62 toll plazas, which are on highways and expressways in public interest after the recovery of cost of capital.

During the period of question hour in Lok Sabha, Pon Radhakrishnan, the minister of State for Road Transport and Highways, stated that “In public interest our government has closed about 62 toll plazas on national highways and expressways after the recovery of capital cost”.

All of these toll plazas were located in Karnataka, Madhya Pradesh, Uttar Pradesh, Bihar, Gujarat,  Kerala, Andhra Pradesh, Tamil Nadu,  Maharashtra, Telangana, Chhattisgarh, Manipur, Odisha and Rajasthan. Recently, government launched a web portal to make sure that all the road users can access the information that now onwards concerning toll plazas which are on the expressways and national highways are now under National Highway Authority of India and Road Transport and Highways Ministry.

The more he added that the total revenue collected from all of these toll plazas are about more than Rs 9283.23 crore for the year 2012 to 2013 whereas; Rs 11,436.59 crore for the year 2013 to 2104 and about Rs 14,214.48 crore for the year 2014 to 2105.

However; the information also includes the required fee rates for the different sets or categories of vehicles at any of these  toll plazas, as well as the information about the facilities available at troll plaza and the emergency contact numbers.

Real estate market declined by 6%

After surveys it’s clear that the investment in real estate sector by various public and private sources in all over the country has declined by six per cent in last four years of duration. It is clear that for the year 2013 to 2014 the investment in real estate sector in country fell to Rs. 14.30 lacs crore whereas; for the year 2011 to 2012 it was approx. Rs 15.2 lacs crore.

After the survey of Assocham, real estate experts find that more than 76 per cent of total investment in real estate was attracted by the various real estate projects and rest was from non-starter real estate projects in the duration of 2011 to 12 and 2014 to 15.

State wise analysis of Assocham:

After state wise analysis it is clear that for the period of 2014 to 2015 the top five states by the highest share in real estate sector in terms of investments are 21 per cent by Maharashtra, 14 per cent by Uttar Pradesh, 13 per cent by Gujarat, 12 per cent by Karnataka and 8 per cent by Haryana. Coming to the CAGR (compounded annual growth rate) the Assam has witnessed the maximum growth rate in terms of attracting the rela estate investments for the year of 2011 to 2012 and 2014 to 2015 which was 82 per cent followed by 19 percent by Bihar, 17 per cent by Odisha, 16 per cent by Uttar Pradesh and 12 per cent by Uttarakhand.

However; the states which recorded the maximum fall in real estate investments are 40 per cent in Jharkhand, 37 per cent in Himachal Pradesh, 29 per cent in Madhya Pradesh, 16 per cent in Haryana and 7 per cent in Gujarat. The survey was draw by the feedback of 100 big and small companies who are active in the sector of real estate in top cities of the country such as; Chennai, Indore, Lucknow, Mumbai, Delhi, Bangalore, Jaipur, Ahmedabad, Hyderabad and Pune.

Most of the real estate developers are veering the poll and it’s clear that they are down just due to the lack of focus of government from improving demand or supply in real estate sector. Whereas; the survey indicated that the previous and latest Union Budgets was disappointed the real estate sector with the exclusion of the new plan ie. to develop the 100 Smart Cities in the country. Apart from all that the increase in the rate of service taxes by 14 per cent makes the real estate sector but more expensive and it has direct impact on the sales and it is clear that it will make down the real purchasing power of average investors and end users in country.

All the real estate developers are have concern about the increase in excise duty on goods and service tax on construction and also increased on petrol and diesel prices with increase in freight rates on the cement which lead the construction cost in real estate sector. Now there is need to speeding up procedural requirements in the field of real estate sector which have just passed through the single window clearance system from different approvals to increase the operational efficiencies and cost of investment along with the stable and predictable policy framework in real estate sector.