New Land Acquisition Bill is ready, PM Narendra Modi

Narendra Modi, PM of India slammed all the opposite political parties on the charges that BJP government is the pro-corporate and anti-poor, but conceded that BJP government is also the anti-development and anti-farmer government as they have come up with the land acquisition law which was proposed in Indian Parliament by the UPA government in the year 2013. Recently, BJP government has changed the 120-year-old law and takes the 120 hour to debate on it. And in the whole process it was not only the Congress party who was guilty on this count but also there were several other parties. The PM said in interview that we in BJP are also feeling guilty that we supported it as it was the main concern for the many formers because it can make the difficulty for the irrigation projects if we will not changed the land low.
The election period was coming up and the Parliament session was about to wind up that why we supported the hasty decision, but later all the state governments realized that this new law is big deal for progress. While taking on the Congress VP Rahul Gandhi, PM Modi stated that when opposition said that we are the anti-poor, so I just want to say that if they were well wishers of formers and poor’s then why there are so much irregularities and poverty in all over the country. The opposition has successfully created our false image and impression that we are helping the big carports houses to get the land at affordable cost., but still all the law and provisions are same for the corporate if they want to own the land as in 2013. I am so much confident that our government will uncover the lies as well as other perceptions because we are the changing the law for the better situation of farmers and their development.
The PM added that we are confident and our prospects for the Bihar state elections are clear which is coming up later in current year. People of the India have faith in the government of BJP and we full faith at every momentum to sustain the government in the coming elections. The more he added that we don’t have an pressure on fulfilling the expectations because we are already doing this as we are reconstructing the Indian on the global stage with many other economic factors such as; FDI inflow, power generation, inflation and many more .

On Wednesday, cabinet defers on the approval of Real Estate (Regulation & Development) Bill, which is committed to ensure consumer protection and to establish regulatory bodies at Centre and states for transparent and ethical business practices in country’s real estate sector. As per sources, the housing ministry has been asked to review the real estate bill explore that how it can be more consumer-friendly and to have better provisions for promotion of affordable housing.

Country’s Real Estate Sector

In review low cost housing and roof have been identified as a focus area by central government and it has promised the housing for all by 2022. Low-cost housing and roof to all have been identified as a focus area by the Narendra Modi government and it has promised shelter to all by 2022. TOI has learnt that there was a suggestion and strong argument during the Cabinet meeting that the provisions relating to Centre-state issues need to be made clearer in the bill. In current session of Parliament, central government has included the bill as one of the legislations for passage.

Recommendations in Real Estate (Regulation & Development) Bill:

The real estate bill was introduced in the Rajya Sabha in August 2014 and referred to the parliamentary standing committee for modifications and later committee had made several recommendations particularly in favor of consumers and greater check on unscrupulous developers, the housing ministry has rejected most of them. According to committee there are also several provisions in the revised bill with a single aim to protect the consumer’s interest. This has reference to recent cases in Noida where a developer had changed plans and built towers to increase economic viability without taking buyers into confidence. The real estate bill also included that the condition prohibits a developer to change the plan in a project unless 2/3rd of the allottees have concurred for such change.

As per new recommendations, now it will include checking the antecedents of project promoters before their registration is done and ensure that all real estate developers who have defaulted in two earlier cases be blacklisted. But later housing ministry has ministry rejected this by arguing that this a provision will work as a deterrent for the sector. The panel of committee had also recommended all real estate agents involved in sale of secondary market projects also need to be regulated through real estate bill. But this was not accepted. Similarly, the panel also suggested that promoters be made to enclose names of contractors, architects and structural engineers, which were also turned down.

Earlier housing ministry have allowed to builder to divert up to 50% of buyers’ investment in case of special projects to other real estate projects which are under criticism. But the original real estate bill had mandated the developer to put more than 70 per cent of the buyers’ investment to an escrow account to be used only for construction of that project.

Minimal drop in property sale in Mumbai

Even as Delhi and its surrounding region witnessed a 20% drop in sale, Mumbai saw marginal drop at just 2 per cent while Chennai and Hyderabad and Mumbai saw 18% and 13%, according to the 2014-15 real estate research survey by Liases Foras. Liases Foras, a non-brokerage firm, is into real estate researches. The survey was released on Thursday. It says that property sales across tier I cities in the country have dropped.  Proving that change in guard at the Centre has not changed the property market scenario.

The survey says that construction activity has increased in affordable and ultra-luxury segments in Mumbai. Flats that cost less than Rs50 lakh are selling more. Besides, the average prices have gone up in Greater Mumbai and Mumbai metropolitan region. In Greater Mumbai, this year a 2BHK costs Rs2.30 crore. Last year it was Rs2.14 crore… in MMR, a 2BHK flat cost is Rs1.32 crore while it was Rs1.20 crore last year, according to the report.

According to Pankaj Kapoor, MD, Liases Foras, “Currently, property market has been quite inflated and over-stretched. No one, including end-users and investors, wants to invest his/her money… and that has resulted in decline in property sales” . “Besides, there is a huge gulf between the current rates and expectations of end-users. They are still waiting for price correction. All things are attributed to the stagnant sales in Mumbai and other cities,” he told a newspaper. “Buyers cannot afford such costly houses. But developers have little choice. The land cost is already high and buyers have to pay various government taxes. If we meticulously calculate, buyers are forced to spend almost 10-15% of total flat cost on stamp duty, registration, valued added tax, service tax etc. To make houses affordable, the government should slash taxes,” Manohar Shroff, general secretary of the Maharahstra Chamber of Housing Industry (MCHI) demanded.

The Narendra Modi-led government cannot increase peoples’ income overnight. The current property market is beyond the reach of common man. An ineffective market will continue for some time. Despite low sales, developers are not bringing down prices. But they are offering sops such as waiving off stamp duty and registration charges to lure buyers.

The New Chief Minister of Maharashtra

The first BJP government of Maharashtra is committed to providing roof over every head and accelerating housing industry in Maharashtra to realize the vision of housing for all by 2020, said Maharashtra CM-designate Devendra Fadnavis.

Q: What steps should government take to convert the vision of housing for all by 2020 to reality and to boost the affordable housing?

A: The government will give priority status to affordable housing. Since the vision of housing for all by 2022 is to be realized, the government will streamline the approval process and also reduces the total cost of ownership for the end user of affordable housing.

The new government will remove major bottlenecks like land acquisitions and government clearance for the real estate sector, especially affordable housing projects. Our government wants everyone in Maharashtra to have a roof over head and hence we will do everything within the legal framework to facilitate the development of affordable housing.

Q: Will you adopt BOT policy for development?

Developmental projects should be undertaken on ‘Build, Operate and Transfer’ (BOT) basis. This is one of the ways of development. But in the last few years, some contractors have gained disproportionately out of such projects. Nothing was done in the past to augment the revenue of the state. But this will not happen again. Efforts will be made to augment the revenue of the state by proper evaluation of every project and no undue favours will be granted to any contractor.

Q: What will be your order of priority as the CM?

A: Development of infrastructural facilities, improving the agricultural productivity, industrial development, law and order, standard education in schools and colleges, besides basic facilities of water, power, road, bridge, irrigation and airport.

Q: Since you hail from urban area, what is your idea of agricultural development?

A: I am the son of farmer. I know that it is essential to improve the productivity of the farmland. Unfortunately nothing has been done by the past government. A special machinery will be set in place for this purpose. There will be proper planning for ‘Bagayati and Jirayati’ forms of farming and ample water will be supplied for irrigation. Stress will be on sprinkler irrigation which will lead to the saving of water.

Q: What is your idea of industrial progress?

A: For the promotion of industry, red-tapism will have to go. Efforts will be made to remove all hurdles in the path of industrialists desiring to set up industries which take as many as two years for establishment as of now.  No delay can be tolerated in this competitive age. Technology gets obsolete in no time and hence fast clearances will be granted to industrial projects. Decision will be taken on increasing the FSI in the industrial estate. Effective implementation of Narendra Modi’s ‘Make in India’ will be done in Maharashtra and I will put great emphasis on IT development in Maharashtra.

Q: When in opposition you had flayed the government for turning Maharashtra into debt-burdened state. How will you tackle the situation?

A: Actually, I am not opposed to seeking loans. What is important is purpose for which the loan is taken for and how it is utilized, whether assets can be created out of them. When the loan is spent on unproductive things, the state enters the debt trap. Unnecessary expenditure will be lessened; quality of official cost will be examined, and newer sources of revenue generation will be created so that the state GDP also goes up.

The Ministry of Housing and Urban Poverty Alleviation will hold consultations with stakeholders on the Real Estate (Regulation and Development) Bill on September 19.

The consultations will be held with representatives of the Ministries of Environment and Forests and Climate Change, Consumer Affairs, Civil Aviation, and Culture, a statement from the Ministry said.

Before seeking to move this Bill for consideration in the Rajya Sabha in the winter session of Parliament, the Ministry will deliberate on issues such as protection of consumer interests, single window system for approval of real estate projects, perspectives of developers on delays in approvals and corrective measures required, the statement added. A meeting of all stakeholders has been convened in the national capital on Friday to seek their views on a key bill that seeks to pave the way for construction of a large number of affordable houses.

The Real Estate (Regulation and Development) Bill, 2013 is likely to be taken up for consideration in the Winter Session of the Parliament.

“We have convened a meeting of all stakeholders to seek their views and suggestions on the bill,” a senior official of the Housing and Urban Poverty Alleviation Ministry said. Housing and Urban Poverty Alleviation Minister  on Wednesday discussed various aspects of the bill with his officials. The Narendra Modi government has promised houses for all by 2022.

Naidu emphasised that the bill, while seeking to promote housing activities, should aim at harmonising the concerns of consumers and real estate developers, rather than introducing strangulation in the name of regulation.

The minister said the bill should promote transparency in disclosures by developers with regard to all relevant information about real estate projects by registering them with the proposed regulator.

Besides Naidu and ministry officials, representatives of the Ministries of Environment and Forests and Climate Change, Consumer Affairs, Civil Aviation and Culture would attend the meeting.

Issues like protection of consumers’ interests and single window system for approval of real estate projects will also come up for discussion. Officials of Consumer Welfare Association, Federation of Apartment Owners Associations, Professional Associations like legal firms and management consultants, National Real Estate Development Council, and Council of Real Estate Developers Associations of India will also attend.

After this exercise, Naidu will hold a meeting with ministers concerned before firming up the official amendments to be moved, if required. There is a suggestion from the real estate sector to rename the Bill as Real Estate (Regulation and Promotion) Bill.

Real estate in Navi Mumbai is all set to witness yet another boom with the prime minister Narendra Modi laying the foundation stone for the Rs 4,000 crore special economic zone at Jawaharlal Nehru Port Trust (JNPT).

Navi Mumbai where the property prices are as high as those in Thane is all set to witness a surge in prices, says Arvind Goel, president of Maharashtra Chamber of Housing Industry (MCHI), Navi Mumbai unit.

According to Goel, the inauguration of government-owned SEZ holds a lot of significance for Navi Mumbai. Currently, a 2BHK in Navi Mumbai costs Rs 70-90 lakh. A 20-30% rise is expected. Arvind Goel, says demand for commercial property will also go up. “There are 250 supplementary industries, directly and indirectly dependent on real-estate sector. A real-estate boom will develop them as well,” he said.

In three years, the SEZ will start. Since land for the 277-hectare zone is already acquired and in possession of the central government, no delay is feared. Widening existing road network to 6-8 lanes and development of service are also proposed to facilitate the vehicular traffic movement within the city.

The Thane-Belapur belt, known as an industrial belt, is slowly turning into a realty belt with the swanky residential and commercial complexes replacing the smoke stacks. “Just as the property market in Pune developed immensely, thanks to the IT industry. Employment is main factor for the growth of the housing industry and cities. Similarly, Navi Mumbai will grow in the next five years as there will be lots of employment opportunities with new start-ups, BPOs, KPOs and other new age industries coming up in the satellite township,” a realty watcher explained.

“Now developers will buy huge tracts of land in Panvel and other locations to develop townships. It’s a good sign that Navi Mumbai is developing. It will become another developed city in the near future,” says Manohar Shroff, chairman of Shivam Developers, adding that housing and real-estate will attract lots of investors to Navi Mumbai.

Some developers have added a note of caution for their colleagues who are gung-ho about the development of real estate on the back of SEZ planning. They say that the builder fraternity should not create a false euphoria about the housing project or it might turn out to be another bubble burst.

Government of India today said it is preparing a concrete plan for providing piped gas connections to at least 70 per cent of households in Mumbai by 2022.

“We have decided to provide piped natural gas (PNG) to at least 70 per cent of the houses in the Mumbai metropolis by 2022. We will hold talks with the state government and the municipal corporation also to achieve this target,” Union Petroleum Minister Dharmendra Pradhan said here after a review meeting with officials of the natural gas distribution company, Mahanagar Gas Limited.

Pradhan said a feasibility study will be conducted before implementing the plan, and added that “the decision is part of Prime Minister Narendra Modi’s plan to put the piped gas connectivity in the nationwide mission mode.”

Currently, there are 15 crore LPG connections in the country, while the number of piped natural gas (PNG) connections stands at around 20-22 lakh, of which Mumbai alone accounts for 7.30 lakh customers, he said.

“PNG is a good clean, cheaper and safe fuel,” he said. Modi government is committed to extend the piped gas networks in the country to 30,000 kms in the next 15 years as against the 15,000 kms network today, the Minister said.

Besides, the government also has plans to provide PNG connectivity to all crematoriums in the city as people often complain of power and fire wood shortage at these places, he said.

Natural gas appliances are economically competitive and help make homes energy-efficient. The use of natural gas is fully compatible with the most efficient and up-to-date methods of building insulation. The latest innovations in gas appliances are increasingly efficient and consistent with the new environmental policies introduced in the country. Moreover, with the gradual introduction of the eco-friendly gas for new buildings, natural gas’s market share for domestic use has been growing significantly.

Gas is also traditionally used in cooking. For food preparation, gas is used to fuel cookers comprising a cooktop and an oven. The oven can be a separate unit from the cooktop. Cooking appliance manufacturers have developed a range of products that offer a combination of convenience and safety. Gas offers a wide range of food preparation settings: from low-level simmering to high-temperature cooking. In apartment buildings, individual apartments can have their own heating and hot water appliances, in which case they are the same as those used in individual houses.

Prime Minister Narendra Modi laid the Foundation Stone of Jawaharlal Nehru Port Trust Special Economic Zone (SEZ) , at Sheva in Navi Mumbai.

He also laid the Foundation Stone for widening of Port Connectivity Road from JNPT to the National Highway and symbolically handed over land allotment letters to JNPT Project Affected Persons under the 12.5 % scheme.

Addressing a large public gathering at the function site, the Prime Minister said his Government had conceived the Sagarmala, an ambitious project for maritime states. This would envisage not merely port development, but port-led development which would include ports, SEZs; and rail, road, air and waterway connectivity with the hinterland, including linkages of cold storage and warehousing facilities.

Noting that two-thirds of all global trade and 50 percent of container trade happens through the Indian Ocean, Modi highlighted the importance of the ports sector. “Ports can become gateways to India’s prosperity,” he added.

The Prime Minister said the Government is concerned at the large number of stalled SEZ projects across the country, and a high-level team has been constituted to review the problems and resolve them at the earliest.

The Prime Minister said export promotion was the need of the hour. “Until we join manufacturers in export promotion, and unless States and Centre work together, we cannot achieve new heights in exports” he observed. The Prime Minister added that the Union Government had recently convened a meeting with States to understand bottlenecks in exports, and States would soon be given the right to form their own Export Promotion Councils. “Let there be competition among States for exports,” the Prime Minister said.

The office property market is expected to continue to strengthen for the remainder of 2014. The restoration of business confidence is expected to gain steam, on the back of the positive business outlook. Adequate supply in the pipeline in all the markets will ensure steady rentals across the cities in the medium term, while vacancy may fall marginally in cities like Bangalore and Pune.

This market witnessed a new wave of leasing activity in Bangalore and Pune, while cities like Mumbai, Chennai recorded a moderate increase in absorption QoQ. Approximately 8 million sq. ft. of office space was leased across eight major cities in India during the quarter. The IT / ITeS sectors remained primary demand driver says Colliers International report.

The Collier International has come out with its report on economic overview which says that overall; market sentiment witnessed an improvement this quarter after the general elections. As Prime Minister Narendra Modi took charge at the Centre with a clear mandate, investor confidence picked up in expectation that the new government would revitalise the economy. Consequently, the CII Business Confidence Index for 2Q 2014 increased to 53.7 from 49.9 in the previous quarter. The capital markets also performed well, with both the BSE Sensex and the BSE Realty Index showing an upward swing. The rupee strengthened and even showed signs of recovery during the quarter, hovering in the range of 60 to 60.5 per US dollar. The first quarter GDP growth figures posted a marginal decrease from 4.7% in 4Q 2013 to 4.6% in 1Q 2014. The office property market witnessed a new wave of leasing activity in Bangalore and Pune, while cities like Mumbai, Chennai recorded a moderate increase in absorption QoQ. Approximately 8 million sq. ft. of office space was leased across eight major cities in India during the quarter.

Mumbai remains the top favourite of property buyers, reveals a recent survey. The survey, conducted by a private portal included a 2,583 strong sample of 40 percent respondents in the 25-35 age group and the rest above the age of 46 year.
One-third of the respondents felt that the time is right to make a property investment decision, while 49 percent plan to wait and watch for some time, with the remaining 16 percent saying the time is not right yet. Interestingly, two-thirds – 62 percent – of all respondents expect property prices to soar in the near future while the rest feel that there will be an escalation in the next one-two years, but a total of 79 percent prefer to go for long-term investments in property.
As far the preferred mode of investment goes, flats or apartments top the list with 40 percent of the respondents, followed by individual bungalows with 24 percent and residential plots favoured by 23 percent of the people. Commercial properties found favour with just seven percent and country houses and row-houses were chosen by three percent each.
After Mumbai come Bangalore and Chennai which are hot favourite for all property investments even now. The other cities next on the rankings include Pune, Kolkatta, Delhi-NCR and Hyderabad.
More than half – 55 percent – of the respondents expect the Modi government to reduce home loan rates and the rest demand better infrastructure and setting up of a real estate regulator.