Cidco to go online to clear building plans

NAVI MUMBAI: The City and Industrial Development Corporation (Cidco) has decided to replace the age-old system of manual clearance for building proposals with online applications, promising speedy delivery of plans and early approval.

The decision comes in the backdrop of rapid expansion and growth in the south side of the city, extending deep into Raigad district. With construction activity having gained pace in Ulwe in the wake of the airport development, Cidco is now looking at new cities and townships ? the port city in JNPT influence area, Pushpak Nagar close to the proposed airport with plans of metro connectivity and Naina for which it is the special planning authority.

Mohan Ninawe, senior PRO (Cidco), said that online clearance would take around a fortnight instead of a long wait of a month or more.

Builders and developers will get early clearances and cut the waiting time for their building proposals to be approved with the introduction of auto development control regulations (DCR).

"There are around 100 to 200 proposals per month that have to be cleared and the manual checking takes time. This results in project delays and, at times, can also add to the cost of capital. For early execution of projects, Cidco has decided to opt for the online facility," said Ninawe.

He added that the software is available in the market, but will have to be customized as "DCR is different for our area". The software has been availed by three municipal corporations for early disposal of proposals ? Pune, Kalyan-Dombivli and Aurangabad. The online facility will get started in another three months, sources said. The delay is due to the customization of the software.

Chief minister Devendra Fadnavis gives nod to MSRDC projects

Chief minister Devendra Fadnavis has given an in-principle approval to several big-ticket projects of the Maharashtra State Road Development Corporation (MSRDC).

Some of these projects are :

Worli-Haji Ali Sea Link

Augmentation of Mumbai-Pune Expressway

Bridges over Thane and Vashi creeks

Freeway on Ghodbunder Road

Smart Cities along Mumbai-Pune Expressway

Inland passenger water transport, etc. Apart from this, an approval has also been given for setting up of MSRDC India International, an international arm of the agency to take up projects for implementation in foreign countries.

MSRDC officials made a presentation to the chief minister detailing about the projects that were pending for clearance and further implementation for the last several years due to various reasons, including lack of funds with the corporation.

"Assurance has been given by the CM on speedy formation of cabinet sub-committee on infrastructure and thereafter quick clearances to the projects of the MSRDC," said Eknath Shinde, chairman of MSRDC

New ordinance on land acquisition rattles Navi Mumbai airport PAPs

Project-affected-persons (PAPs) of Navi Mumbai international airport project are under apprehension after the Central Government approved an ordinance to amend the Land Acquisition Act, 2013, on Monday. The amendment will ease the ‘consent clause’, which has so far posed hurdles during the land acquisition of several mega infrastructure projects across the country.

Land acquisition has been the major factor for the delay in Navi Mumbai international airport, which resulted in the escalation of its cost for almost three times. However, the City and Industrial Development Corporation Ltd (Cidco) has shot down any plans of forceful land acquisition. “We have already acquired almost 90% land required for the airport. The acquisition of the remaining 10% land will also be done through the normal process,” said Dr Mohan Ninave, senior public relation officer of Cidco.

Dr Ninave added that the planning agency has been giving one of the best compensation packages in the state. So, there should not be any problem in acquiring the remaining land.

The amended land acquisition act, which included five new categories of projects, including projects under public-private-partnership (PPP) module, would not require prior consent from affected families. Such projects do not even need to carry out the Social Impact Assessment (SIM) of affected families.

Now, projects under PPP do not require consent of 70 percent to 80 percent of the landowners. However, the higher compensation will continue to strike balance between farmers’ (PAPs) rehabilitation and development. Several projects across the country have been stuck because of the slow pace of land acquisition. Even with one of the best package offered by Cidco, the land acquisition process met several hurdles including PAPs approaching the Bombay High Court.
However, the High Court dismissed the petition filed by farmers, seeking more clarity on the package offered.

According to the Cidco package, it has been offering 22.5% developed plots as compensation to those whose land has been acquired. The state government has offered 22.5% developed land with an average floor space index (FSI) of 2. The villagers would get FSI of 1.5 for 12.5% of developed land and 2.5% for the remaining 10% developed land.

-Amit Srivastava/dna

Property Rates Will Rise Due Ready reckoner rates increase

MUMBAI: Home buyers in Mumbai will pay more for their dream home after a cash-strapped Maharashtra government sharply increased government rates used to calculate taxes paid by consumers when purchasing property. 

Ready reckoner rates, as they are called, have been increased by 30-40% in case of some fastest growing, popular suburbs in the city triggering protests by builders, consumers and unease among the members of the ruling BJP-Sena alliance which captured power in the state after a 15-year break. The hike, which is effective from January 1, could make property expensive and will most likely dampen hopes of home buyers waiting for a fall in property prices after years of dizzying climb. It will also make it difficult for builders who are eager to draw buyers and get rid off an increasingly bloated inventory 

Posh residential localities such as Worli, Bandra-Kurla complex, the city's fastest-growing commercial complex and home to someof the country's biggest financial institutions, are among the places where rates have been increased by 30-40%. Rates in popular suburbs such as Goregaon, Borivali, Malad, Chembur, Ghatkopar, Vikhroli have also been increased by a similar percentage. These localities are home to the city's burgeoning middle-class and upper middle-class families. Many of them voted heavily for the BJP in the October assembly election. 

While the average hike across the city is between 15-20% for 2015, the highest increase is about 40%. The average hike in the past two years has been 13%. 

< .. "We will again approach the state government to stay this hike because it will hurt sales. The move will not result in higher revenue for the state as the sales itself will remain subdued due to the hike," said Dharmesh Jain MD of Nirmal Lifestyle. Jain added that the developers' body will seek to meet the revenue minister in the next few days.  The ready reckoner is used to calculate the market value of properties for paying stamp duty and registration charges at the time of registering the transaction. The rates are different from market rates. Taxes such as stamp duty, value added tax, sales tax and the registration charges are based on such government provided ready reckoner rates. Rate changes were made for all of Maharashtra on Wednesday and it is customary for the government to announce such changes on the new year. The city BJP chief Ashish Shelar admitted that he was surprised by the extent of the hike but explained it away by saying that the government needs revenue. "It's a welfare state and if needed the government will take a call on these rates for the benefit of common man," he added.  "The buyers' outgo will increase now and will impact the sales absorption further. For a realty developer it's a double whammy as he will have to pay higher stamp duty for land transactions and will also have to convince the buyer to shell out more to buy the finished product," said Ramesh Nair, COO &International Director, property consultancy JLL India.

Illegal constructions thrive in Panvel as officials pass the buck

NAVI MUMBAI: The civic body and town planning authority continue to pass the buck, even as illegal construction of residential buildings continues to flourish in Panvel, including the 23 villages that are part of Navi Mumbai Airport Influence Notified Area (Naina) land.

Officials from the revenue department had identified 35 illegal buildings in Panvel area and asked City and Industrial Development Corporation (Cidco) to demolish them. According to a report submitted by revenue officials to Cidco last week, 35 buildings have already come up without requisite permissions from the concerned departments.

They include Nine buildings in Vichumbe, 10 in Devad, two in Shivkar, Usaly Khurd, Chiple and Adai each, 3 in Akurli and Nere each and one each in Vihighar and Harigram. "We have sent the list to Cidco for further action. We will continue our search for illegal buildings," said a revenue official from Panvel circle office.

An official from the office of Chief Controller of Unauthorized Construction (CUC) confirmed the receipt of the report, but wondered why the revenue department officials had not demolished the buildings earlier by exercising the existing authority vested on them.

"Unless our draft plan is approved by the government, we cannot distinguish the legal and illegal buildings in question," added the CUC official.

After Cidco was appointed as the special planning authority for 270 villages under Naina in 2012, it prepared a draft plan for the interim development of the area, which is awaiting government approval. Cidco officials expect the government to okay the plan in January.

With land prices sky-rocketing in Panvel due to the Naina project, residents said many local builders have started illegal constructions without obtaining necessary NOCs and other permission from authorities.

"Some illegal structures have already three to four floors and flats have been sold to buyers. Corrupt officials are hand-in-glove with builders to cheat the buyers. It's time for the authorities to stop the illegal constructions," said Rajesh Chaudhari, resident.

Ohhh My God : Another Campa Cola ?

400 flat owners in Panvel could lose homes to illegal constructions

ANOTHER CAMPA COLA: HC orders status quo after PIL alleges four societies in Panvel have come up illegally.

Occupants of over 400 flats in four complexes in Panvel, Navi Mumbai, are in danger of losing their homes after the Bombay High Court on Tuesday directed the societies/builders to maintain status quo. 

The division bench of Justices A S Oka and A S Gadkari, while hearing a public interest litigation against the alleged illegal constructions in Panvel, directed that construction - wherever it was going on - should be stopped. 

The affected societies that have been constructed on the plot, near the State Transport bus stand, are Ambika Nagar CHS, Aspire CHS, Pushpadham CHS and Neelkanth Landmark. Of these, Neelkanth is a commercial complex and the construction is still on, while people have already taken possession of their houses in the other three societies. The court also directed that if the flats which are occupied or unsold are being sold, the purchaser should be specifically informed about the on-going litigation, and also told that the fate of the said flat will depend on the final outcome of the PIL. 

"A tragedy like Campa Cola should not happen again and the flat purchasers should not claim equity saying we are innocent purchasers," the court observed. 

The court also noted that there was prima facie illegality committed in granting permission to develop the said plots, where four societies comprising various buildings stand. Panvel resident Yashwant Bhagat, represented by advocate Rajendra Pai, had filed the PIL in 2009 after he noticed construction on the plots. On inquiry and with help of the Right to Information Act, he found that the land parcels belonged to the city planning authority CIDCO. 

The land on which these societies stand, constructed/under-construction on four different plots measuring a total of 18,500 sq mt, were originally acquired from local residents by the state government after it envisaged the scheme to develop a satellite city (Navi Mumbai). This particular area then fell under the limits of the Panvel Municipal Council (PMC). 

The CIDCO, represented by advocate Ashutosh Kulkarni, has been supporting the PIL and seeking that the land be returned to the body. Certain portions of the land are earmarked for railways for the Panvel-Diva railway line, while certain other is for Panvel-Matheran road and the balance for CIDCO. 

The PIL alleged that one Jitendra Timbadia got the land converted for non-agricultural use from the Collector, entered into agreements with four different builders/developers and the PMC granted development permissions, despite the fact that PMC had no such powers since the land had already been acquired by the state. 

During various hearings, the HC had directed Konkan's divisional commissioner to conduct an inquiry into the episode. The divisional commissioner, in an affidavit filed in March this year, along with the report, in a way ratified the contentions raised in the PIL. 

However, according to Timbadia, not only the development permissions but occupation certificate too has been obtained for the residential buildings, and hence there is no illegality on his part. 

The CIDCO too filed an affidavit saying that PMC did not have powers to grant development permission since it (CIDCO) was the planning authority. The CIDCO informed the court that the authority had been issuing stop work notices to the builders since February 2009 itself, but they carried on in blatant violation, ignoring its notices. According to CIDCO, it had informed other concerned authorities such as the PMC about the same, but it paid attention only after the HC came into picture. The case will now be heard in January, after court's Christmas vacation.

Govt relaxes FDI policy for real estate sector

Removes lock-in period, minimum land area requirement

The government on Wednesday eased foreign direct investment (FDI) norms for the construction development sector, which is expected to provide a substantial boost to the sector in terms of greater foreign capital inflows.

Notifying the decision taken by the Cabinet in November, the Department of Industrial Policy and Promotion (DIPP), the nodal agency for all FDI policy, said foreign developers would now be allowed to exit a project only after completion or after completing the basic trunk infrastructure such as roads, water supply, street lighting, drainage and sewage.

Earlier foreign developers were not allowed to take out the invested amount before three years from completion of minimum capitalisation. However, now the foreign firm can take its money out or transfer its stake to another non-resident company before completing the project on approval from the government.

“The relaxation of the lock-in period comes as a major relief for the industry. The new rules allow FDI in smaller projects, which is a big relief. Besides, by doing away with the lock-in period, the government has now made the norms much simpler,” said Akash Gupt, executive director at PwC. In a significant step, the government also allowed foreign investors to invest in completed project for "operation and management."

In other words, 100 per cent FDI under the automatic route can now come in projects that have been completed by way of townships, malls and shopping complexes, and business centres. This was not allowed earlier.

"The notification eases foreign investment rules in India's construction sector, which has been troubled by problems such as paucity of funds and regulatory bottlenecks, said Sachin Sandhir, global managing director, emerging business, and managing director, South Asia, RICS.

Projects in semi-urban and peripheral locations of Tier I cities or locations in Tier II and Tier III cities could also take off at this scale, as land prices in these regions and the total capital investment requirement were attractive, he said.

Besides, under the new policy, the DIPP has also reduced minimum area requirements. Unlike the previous policy, foreign real estate developers can now invest in construction development projects having a minimum floor area of 20,000 sq meter. Earlier the requirement was 50,000 sq meters of built-up area. Similarly, the capital requirement was decreased from $10 million to $5 million.

"This is an extremely positive step and virtually meets most of the demands made by the industry. Moreover, by permitting transfer of stakes between two non-resident companies the government has literally opened the floodgates for FDI in the real estate sector," said Punit Shah, co-head of tax at KPMG.

Between April 2000 and September 2014, the construction development sector received about $24 billion, constituting 10 per cent of the overall FDI into the country during the period. However, since 2012-13, FDI inflow into the sector has slowed drastically. In 2012-13, it fell to $1.3 billion from $3.1 billion the previous year. It again declined to $1.2 billion in 2013-14. During the first six months of this financial year, only $568 million has flowed into this sector.

CIDCO DRAWS UP ACTION PLAN AGAINST ENCROACHMENTS

High profile violaters to be targeted first, criminal cases to be filed, WhatsApp service for info

G. Mohiuddin Jeddy, Navi Mumbai

Faced with large scale encroachments on CIDCO land in Navi Mumbai and the areas around the proposed airport, CIDCO has drawn up a detailed action plan to counter the menace. First on its radar are the `high profile’ violators who CIDCO plans to target to send out a strong message. It has also decided to file criminal cases against the vested interests involved in the illegal constructions and issued a stern warning to its own officials that they too will not be spared if found to be hand in glove with the encroachers. The nodal agency will also seek information from WhatsApp.

CIDCO has got in former Beed collector Sunil Kendrekar as the chief administrator (new towns), who now also heads the Controller of Unauthorised Constructions (CUC) department of CIDCO to take on the encorachers. Kendrekar is known as a no nonsense officer, whose transfer from Beed was opposed by the local residents.

Speaking at a press conference at CIDCO Bhavan, Kendrekar said, “We have decided to get tough and not spare anyone. I have asked my officers to not just start taking action against the encroachers but also lodge FIRs against them. Officers who do not take stern action against the violators will themselves face the music if they are found to be colluding.”

Added Kendrekar, “I have drawn up a list of 20 encroachments each in Navi Mumbai region and NAINA area around the proposed airport, which belong to the so called influential people of the area. Action has begun with notices being sent to these illegal structures as we want to send a very strong signal to all that nobody is above the law.”

Lamented Kendrekar, “I do not want to talk about the past, but I am certainly not satisfied with the work of the CUC so far. We need to set things right and gain the confidence of the people before things get out of hand.”

Stated Kendrekar, “There has been a problem of staff shortage. There was just one anti-encroachment squad for the entire region under CIDCO. Now I have asked for 4 squads in each region.”

Extending complete support to Kendrekar, CIDCO vice chairman and managing director Sanjay Bhatia who gave details of the action plan, said, “Residents will not be able to inform us through WhatsApp number 8767753114 of any violations. We are also monitoring changes on land through google maps. An MIS report on encroachment will also henceforth be generated detailing, the complaints and action taken.”

Added Bhatia, “To cut red tape, Kendrekar has been authorized to ask the CIDCO engineering department to fence the sites where demolition of illegal structures takes place to prevent the structures coming up again. We are also mapping our plots in the region to keep an eye on them.”

Informed Bhatia, “The administrators in the nodes under our jurisdiction have been provided with mobile squads to enable decentralized monitoring and stop new encroachments.”

Assured Bhatia, “No action will be taken against constructions within 200 metres of village land in the region as that matter is pending with the government for regularization. New constructions on such land will however not be allowed.”

Cidco revamps policy to take on encroachments on its land

NAVI MUMBAI: City Industrial Development Corporation (Cidco) has decided to take a tough stand on illegal encroachments. Under its revamped action plan, it is mandatory for anti-encroachment officers to register an FIR before demolition and procure a court order, if required. Also, there would be zero-tolerance policy towards any sort of external interference. 

MD Sanjay Bhatia introduced Sunil Kendrekar, who will be heading chief controller of unauthorized construction (CCUC) and the personnel department, at a media meet held on Tuesday. Kendrekar said demolition drives will not be conducted without filing an FIR and action will be taken against those officers who fail to do so. 

Residents can inform CUC about encroachments by posting pictures and details on Whatsapp (8767753114). The department will be monitoring all Cidco-owned plots and management information reports. 

Speaking against coercive tactics, Kendrekar said, " To reiterate the fact that the law is equal for all, 20 unauthorized constructions in Navi Mumbai airport influence notified area (NAINA) and 20 encroachments within Cidco area, reportedly belonging to influential people, are to be demolished soon ," he said. All new constructions within 200m radius of the gaothan area will also be demolished. 

All nodal administrators are authorized to prevent encroachments and will be provided with a squad as well. 

"Currently, there is only one demolition team which is insufficient, considering over 5,000-odd Maharashtra Regional and Town Planning (MRTP) notices have been issued. We are seeking four units of demolition squad for NAINA region and four more teams for Cidco areas," added Kendrekar. 

Developers oppose high development fee at NAINA

CIDCO’s decision to levy very high development fee for permission to develop projects in Navi Mumbai Airport Influence Notified Area (NAINA) will be detrimental to the development of the area, according to Rajesh Prajapati, managing director of Prajapati Constructions.

The exorbitant development charges will tender affordable housing into a joke as the cost of housing is bound to double. The development fee will translate into cost hike by Rs 500/- a square foot, Prajapati said.

As it is, the cost of housing is very high in and around Navi Mumbai and home buyers are looking at outskirts of the city for affordable housing, he said and argued that the new levy is bound to make affordable housing shortage even more acute.

“We hope better sense to prevail and CIDCO will reconsider their decision, most importantly in the interest of home buyers who have very few options and nowhere to go,” he said.

Prajapati drew the attention of CIDCO to widespread illegal construction going on in NAINA area and said the planning authority’s new move will further aggravate the problem and innocent buyers will be hit hard.

Government plans to offer interest subsidy on housing loans to help poor section buy homes and boost real estate demand.

NEW DELHI: The government plans to offer interest subsidy on housing loans to help poor section buy homes and boost real estate demand. 

Addressing the realtors' body CREDAI conclave, Minister for Housing and Urban Poverty Alleviation Venkaiah Naidu said the Real Estate Development and Regulation Bill would soon come up in the Cabinet for approval and hoped that at least by the Budget session, the proposed law would become a reality. 

"We are coming out with an interest subvention scheme for the housing sector for the economically weaker section (EWS) and lower income group ( LIG) people and also partly to lower middle class people," Naidu, who also holds the portfolio of Urban Development, said on the sidelines of an event. 

He said the government is moving towards reduction in interest rates, which are difficult to manage currently. 

Asked about timeline, the Minister said when the new housing policy will be launched, the interest subvention scheme will be a part of it. 

According to government estimate, the housing shortage was 18.78 million units in 2012, out of which 95 per cent was in EWS/LIG category. 

Real estate sector is facing a huge slowdown in demand due to high interest rate regime and skyrocketing property rates. 

Responding to realtors' demand for single-window approval, he said the procedures for getting the approvals, particularly related to environment and aviation clearances, would be simplified and fast-tracked. 

On the Real estate regulatory bill, Naidu said it is at the "final stage of consultation" 

"I have gone through it personally. We have taken the views of various stakeholders including real estate sector. Then we will go to the Cabinet shortly. Once the cabinet approves, I am hoping we will get early clearance, then we will go to the Parliament. 

"If not this session, at least by the budget session the Real Estate Development and Regulation Bill will be a reality," Naidu said. 

"There will be no strangulation, only regulation. It will be a people friendly and construction sector friendly bill. In a democracy, regulation is required," Naidu said, adding that the state governments would get the freedom to frame rules under the Act, when it is passed by the Parliament. 

The Real Estate regulatory bill, which was introduced in Rajya Sabha in August last year, seeks to protect home buyers from unscrupulous developers. In February this year, the Standing Committee submitted its report. 

The Bill provides for mandatory registration of all projects, besides mandatory disclosure of information like details of promoters, layout plan, land status, schedule of execution, status of various approvals and carpet area. 

The Bill seeks to enforce the contract between the developer and buyer and provides for quick remedial measures in case of disputes. 

Stating that a whopping Rs 14 lakh crore would be needed annually to achieve Housing For All by 2022, Naidu said Centre will promote public-private partnership in the real estate sector. 

"You (CREDAI members) are our partners. This government does not treat the businessmen as untouchables. Businessmen are part of India. They are part of our development. Without their co-operation, we cannot move forward. I have no hesitation to say this," Naidu said. 

"My government is open. We want to encourage manufacturing sector. We want to encourage business community so that they create wealth and then we can prosper, we can distribute and we can reach to the bottom and let upliftment of the masses. This is the belief of my government. 

"There are people who do business with businessmen in the night and then condemn them in the day. We don't do it. I have no problem, I will say this in Parliament also that you are our partners," Naidu said, while extending all the assistance that the real estate sector needs for the growth. 

The Minister said the real estate and construction sector contributes only 6 per cent to the GDP, but it has a potential to reach 12 per cent by 2022. 

While seeking support from opposition parties on passage of key bills including insurance, Naidu said: "Even my friends in the opposition need to understand the mood of the people. People want stability, governance and development." 

"I hope that the opposition will also realise that the need is to get maximum investment and support us whether regards to the insurance bill or with regards to investment in the various sector," Naidu said, adding that infrastructure development was not possible without investments. 

"They should not oppose for the sake of opposition," he added. 

Criticising the previous UPA government, Naidu said the situation and mood have changed in the country since the NDA has come into power. 

Foreign investors are looking at India and they want to do business in India, he said. 

Showering praise on Prime Minister Narendra Modi's leadership, Naidu said: "Situation has changed now. There is trust, confidence, leadership, vision and the government is acting fast to extent possible" 

Govt can't force us to build affordable homes: developers

Maharashtra government’s decision making it mandatory for builders to construct affordable houses in projects that exceed 4,000 sqm has not gone down well with Mumbai developers.

The decision, which was first implemented by the previous Congress-NCP government two years ago, made it compulsory for builders working on plots measuring more than 4,000 sqm to reserve 20% of the land for affordable housing.

According to the original policy, these houses would to be handed over to the Maharashtra Housing and Area Development Authority (Mhada), and the housing agency would then sell them through a computerised lottery system.

However, builders had opposed it then, and got the directive stayed by the court.

But the new BJP government has now amended the policy, to allow builders to construct affordable houses anywhere in the same administrative (civic) ward. The new rules do not apply to redevelopment projects across the city.

“This clause of compulsorily building affordable houses is unfair. We pay exorbitantly to purchase land in the city. It is wrong of the government to force us into this,” said Sunil Mantri, president, National Real Estate Development Council. Mantri said the builders would challenge the directive in court.

According to Paras Gundecha, former president, Maharashtra Chambers of Housing Industry (MCHI), said the move was an unfortunate one.

“All rules are imposed on private builders. State agencies like the Cidco and MMRDA are minting money by auctioning their land at mind-bogging rates. These agencies should ideally be using that land to generate affordable housing, instead of forcing us to do so,” said Gundecha

Final shape to 'Smart Cities' project by next month: M Venkaiah Naidu

HYDERABAD: The government will give a final shape to its proposed flagship scheme on developing '100 smart cities' next month, Union Urban Development Minister M Venkaiah Naidu said here today.

"100 smart cities will come up..some by converting present cities and some by having satellite towns around those cities and some by combining two cities into one by building a new city in between. This is the plan. Final shape will be given during the month of November and then it will go to the Cabinet," Naidu said

Speaking to reporters on the sidelines of the '5th Telangana Real Estate Developers Association (TREDA) Property Show 2014' that got underway here, he said converting present cities into smart cities is a difficult job. So one idea is to develop satellite towns around the bigger cities. "That's one plan we are having in mind and I am working on that."

Aiming to provide better facilities and amenities in urban areas, the government announced a plan to develop 100 smart cities in the general budget this year.

Asked if policy framework on government's another ambitious scheme 'Housing for All by 2022' had been prepared, the Minister said, "We are at an advanced stage. We are trying to go for (providing) interest subvention for affordable housing. Because at the present interest rates, people cannot construct houses. So for the affordable ie economically weaker sections and low income groups of housing, we are planning to have interest subvention, wherein interest will be subsidised by government for those people.

"I am also working with Finance Ministry to have preferential loan for the housing sector. They said we are positive and working on that," he said.

Asked on Real Estate (Regulation and Development) Bill, Naidu said, "I am planning to take it in forthcoming session of Parliament or in budget session. That will be taken on a priority."

On Jawaharlal Nehru National Urban Renewal Mission (JNNURM), he said, "It has lapsed already in March 2014. Now we are planning to bring a new mission. It is almost in final stage and once it goes to Cabinet then it will be announced."

Earlier, speaking at the event, he said the Centre has a plan to develop periphery of Hyderabad city by creating satellite township. "That is the thinking of the Government of India. I had informal discussions with Telangana CM Chandrasekhar Rao (on the matter). That has to take concrete shape."

Naidu further said the Central government is trying to revive the economy.

"If we want the real estate sector to grow, we need to bring down interest rates. There is no (other way). Interest rates can be brought (down) only if the economy becomes strong."

"It is a challenge of constructing 3 crore houses in urban areas and 6 crore houses in rural areas. It is a massive task," he said, adding that the government has decided to allow FDI in real estate sector. The government also plans to develop 500 cities across the country and proposes to launch National Heritage City Development and Augmentation Yojana (HRIDAY), a scheme to conserve and preserve heritage character of cities, he said.

"My government has taken up implementation of Street Vendors Bill. The Centre has already passed this Bill. But it is the duty of the state governments' to frame the rules," Naidu added.

India Allows 100% Foreign Direct Investment In Construction

NEW DELHI – In what may prove to be a major boost for Indian economy, the Union Government today decided to relax foreign direct investment (FDI) norms in the construction sector, allowing 100 per cent of foreign funds in building projects.

The approval came at a Cabinet meeting, which was chaired by Prime Minister Narendra Modi, where the existing FDI policy on the “Construction Development Sector” was amended in line with the announcement made as part of the Union Budget earlier this year.

After the meeting, the government said “100 per cent FDI under automatic route will be permitted in the construction development sector”. The Cabinet also cleared the proposal of the Department of Industrial Policy and Promotion (DIPP), under the Commerce and Industry Ministry, to bring down the minimum built-up area requirement for FDI in construction projects from 50,000 sq metres to 20,000 sq metres.

The Cabinet further gave its approval for reducing the minimum capital requirement for projects from $10 million to $5 million.

An official statement said: “The investee company will be required to bring minimum FDI of $5 million within six months of commencement of the project. The commencement of the project will be the date of approval of the building/layout plan by the relevant statutory authority. Subsequent tranches of the FDI can be brought till the period of 10 years from the commencement of the project or before the completion of the project, whichever expires earlier.”

The government, however, clarified that the FDI was not permitted in any entity that was engaged or proposes to engage in real estate business, construction of farmhouses and trading in Transferable Development Rights (TDRs).

The move was aimed at attracting more foreign investment in construction and real estate sector as investment in the construction development sector has a multiplier effect on the economy by way of infrastructure creation; substantial employment generation over the entire spectrum from unskilled workers to engineers, architects, designers as well as financial and other supporting services.

Further, it creates demand for the products of a number of related industries, including those in the manufacturing sector such as cement, steel, fittings and fixtures and others.

Officials said besides generating employment and income generation potential, greater investment in the sector would help augment the available housing stock, including affordable housing and built-up infrastructure for different purposes.

Enhancement of the affordable housing stock is an urgent need in order to stem the proliferation of slums in and around the cities. The sector witnessed steadily rising FDI from 2006-07 to 2009-10 after which the levels of inflows have been much lower. Between April 2000 and August 2014, construction development, including townships, housing and built-up infrastructure in the country, received FDI worth $23.75 billion or 10 per cent of the total FDI attracted by India during the period.

Although 100 per cent foreign direct investment is allowed in townships, housing and built-up infrastructure and construction developments, the government has imposed conditions.

Finance Minister Arun Jaitley in his maiden Budget had said projects which commit at least 30% of the total project cost for low cost affordable housing would be exempted from minimum built-up area and capitalisation requirements.

Centre Lists Conditions for Getting Smart City Label

CHENNAI: Cities along the coast, hills as well as those having a population between one to four million could be among the 100 to be developed as Smart Cities.

Official sources said that the Union Ministry of Urban Development has circulated a draft concept note to State governments on a set of proposed conditions for eligibility for the smart city tag.

Sources said the Centre has sought proposals for approval of satellite cities, cities of tourist and religious importance as well as cities in the 0.2-1 million population range. These proposals are likely to be reviewed by a committee before approval by the Central government.

Sources said that the approval process would have two stages. In the first stage, cities and states would have to submit an Integrated Smart City Development Plan, based on the Smart City Reference Framework.

Thereafter, cities would be sanctioned an initial amount for preparation of professional and comprehensive project reports. Under the second stage, the Project Reports would be evaluated by designated Project Management Units and finally approved by an Empowered Committee.

Cities that desire to participate in the smart city programme should develop a financing plan along with their smart city development plan and detailed project reports. Sources said the financing plan developed for a city or urban agglomeration could factor in resources from multiple government agencies and departments — not restricted to the ambit of urban development schemes alone. It is also learnt that the Union government has suggested a set of 13 benchmarks for smart cities — transport, spatial planning, water supply, sewerage, sanitation, solid waste management, storm water drainage, electricity, telephone connections, wi-fi connectivity, healthcare facilities, education, firefighting and others like renewable energy as well as adopting green building norms.

Both the states and Centre are banking on the private sector for developing smart cities. Sources said that using an average figure of one million people in each of the 100 smart cities, the total estimate of investment requirements for the services covered by high power expert committee comes to `7 lakh crore over 20 years.

This translates into an annual requirement of `35,000 crore. However, these estimates need to be analysed for the purpose of funding.