ministry

Government May Soon come up with Reformed FDI Agenda

by Paul Joseph May 14, 2011

The government is believed to be giving final touches to the proposal for allowing foreign direct investment (FDI) in multibrand retail, in a decision to go ahead with its reform agenda. However, in order to not incite large-scale protest and opposition, it has decided to open the sector in a “calibrated manner”. The final report, being prepared by the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry, has got the much-needed approval from all other ministries concerned. However, DIPP is still fine-tuning the proposal, to avoid public ire. According to senior officials, the UPA government would now pursue its reform agenda more aggressively, since its alliance gained considerable foothold in the state elections. Opening multibrand retail to FDI is one such item. “It will not be done all of a sudden but in a calibrated manner. We have zeroed on some preconditions that would be made mandatory for the foreign retailers to follow. Some of them are already operating in the country (in single brand and wholesale cash and carry) for some years now and they have no issues with the conditions,” a top government official, told Business Standard. The official also said the government is soon going to convene a high-powered meeting on the issue with all the stakeholders. After the meeting, the proposal would be forwarded to the Cabinet. The government is likely to put a condition to the foreign retailers, of investing a minimum of $100 million, of which $50 million would be kept aside for supporting back-end infrastructure such as warehouse, cold-storage and transportation, among others, depending on the state governments’ decision. Retailers would not be allowed to set up shops in cities with a population of less than a million. Under the present norms, the government currently allows 51 per cent FDI in single-brand retail and 100 per cent in wholesale cash-and-carry operations. It is prohibited in multibrand. Last year, the government also removed the condition that wholesale trading made to group companies must be utilised for internal use. However, the government has not removed the clause that such sale of goods internally should not exceed 25 per cent of the total turnover of the wholesale venture.

Tagged as: business, delhi, foreign, group-companies, ministries, ministry, mumbai, noida, proposal, state

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Govt Opposes Residential Construction near Rashtrapati Bhavan

by Paul Joseph February 23, 2011 Uncategorized

Raising security fears, the union government has stoutly opposed plans by a subsidiary of real estate giant DLF to build residential flats on a plot near Rashtrapati Bhavan. In a comprehensive affidavit filed recently in the Delhi high court, the central government has said any such project raises “security and aesthetic issues” and sought cancellation of permission granted by a single judge to convert a dairy land for residential purposes. Filed through advocate Arjun Harkauli, the affidavit informs the division bench currently hearing the case that any high-rise, that too residential, poses a grave security threat to the Rashtrapati Bhavan close by. To buttress its point, the government adds it reached this conclusion after receiving elaborate inputs from various agencies like the New Delhi Municipal Council ( NDMC), the home ministry and also the President’s secretariat. It added, if required it can place all the annexure raising red flag on the residential project on security grounds, before the judges. The affidavit has placed a copy of the DLF’s website showing Edward Keventer Successors Private Ltd (EKSPL) to be its subsidiary and urged the court not to permit any private builder from using the prime Chanakyapuri land for building private housing. The government affidavit comes in the backdrop of the HC division bench staying the single judge’s clearance to develop a 22-acre prime plot neighbouring the Rashtrapati Bhavan for residential purposes. Stung by the implications inherent in the single judge’s ruling, the union urban development ministry had rushed in appeal and obtained a stay, with the division bench asking the ministry to place its objections before it. Meanwhile on Tuesday, the private firm moved an application in court seeking early hearing into the matter and documents on the basis of which the government had decided to oppose permission. After the central government said it will place all the sensitive documents before the bench for it to read them, the court has posted the matter for April. While granting permission to EKSPL to convert a dairy farm for private residential purpose, the single judge of HC had last year also asked the firm to deposit conversion charges of the land valued at roughly Rs 1200 crore. The ministry in its appeal faulted the single judge for “exceeding his jurisdiction” by “granting a mandatory order in a purely discretionary and contractual matter” and claimed the power to permit land use change rests solely with the government as per the agreement between it and the private firm. On its part the private firm maintained it held the property under a perpetual lease deed since 1942 and had for the first time in 1970 communicated to the UD ministry seeking permission to use the property in question for residential purposes by way of constructing flats. However, the matter remained enmeshed in a dispute between EKSPL and the government over what amount ought to be paid as conversion charges. In 2008 the firm deposited some amount with the ministry that was later refunded by it, prompting EKSPL to seek intervention of HC.

Tagged as: delhi, faridabad, government, ministry, president, property prices, real estate

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Parsvnath wins Delhi land bid for Rs 16.5 bn

by Paul Joseph November 12, 2010 Uncategorized

Delhi Property NEW DELHI/MUMBAI: Realtor Parsvnath Developers won the bid for a 38.3-acre (15.50 hectares) land in New delhi auctioned by Rail Land Development Authority (RLDA) for Rs 16.51 billion, a spokesman said on Thursday. RLDA is a statutory authority, under the Ministry of Railways , set up to develop vacant railway Land for commercial

Tagged as: delhi property, developers, development, ministry, property, real estate delhi

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WTM 2010: India buoyed by Commonwealth Games

by Paul Joseph November 11, 2010

Commonwealth Games The Commonwealth Games has had a positive impact on tourism in India despite widespread media coverage of the struggle the country faced to be ready on time. Tourism in the country in October while the games in Delhi were being held was up 5%, said Ministry of Tourism secretary Shri R.H. Khwaja. Speaking at WTM on Tuesday, he said he expected the long-term impact to be

Tagged as: commonwealth, india, ministry, real estate delhi

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WTM 2010: India buoyed by Commonwealth Games

by Paul Joseph November 11, 2010

Commonwealth Games The Commonwealth Games has had a positive impact on tourism in India despite widespread media coverage of the struggle the country faced to be ready on time. Tourism in the country in October while the games in Delhi were being held was up 5%, said Ministry of Tourism secretary Shri R.H. Khwaja. Speaking at WTM on Tuesday, he said he expected the long-term impact to be

Tagged as: commonwealth, commonwealth games, delhi, games, india, ministry, real estate delhi, the-country

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Housing and Urban Poverty Alleviation Ministry Gives Final shape to “Slum Free India” Scheme

by Paul Joseph October 18, 2010 Uncategorized

UPA-II’s ambitious programme to make the nation slum-free within five years is all set to take off as the housing and urban poverty alleviation ministry has finalised the scheme, and how now sent it to finance ministry for approval. Last year, the government had announced the launch of Rajiv Awas Yojana (RAY) aimed at making cities slum-free, addressing the problems of slum-dwellers and urban poor in a definitive and holistic manner. With the sanctioned budget of Rs 1,270 crore for the current fiscal, the ministry has given final shape to other crucial aspects like financing pattern, contribution of the Centre, states and the model for PPP. Prior to unveiling the scheme, the ministry had asked the state government to chalk out an action plan for slum-free cities, and sanctioned Rs 120 crore for it. Besides, slum-free city planning, the states were asked to frame legislation to accord property rights to slum-dwellers, and also formulate detailed project reports for the release of funds. The ministry has re-drafted the RAY scheme to focus on upgrading slums, redevelopment, rehabilitation and constructing new houses after factoring in the views of concerned stakeholders, states and the expert committee, which is headed by Deepak Parekh. The ministry constituted the expert panel to estimate “reliable” urban slumpopulation. As per the committee’s findings, around 93.06 million people will live in slums in cities by next year. Faced with funds crunch, the ministry has sought supports of banks, other financial institutions and the real estate sector to use its interest subsidy scheme for construction of houses for urban poor. “There is a need for credit enhancement through appropriate fiscal, legal and institutional mechanism to ensure the flow of capital to realize the vision of slum free India,” housing and urban poverty alleviation minister Kumari Selja said.

Tagged as: centre, financial, india, ministry, noida, real estate, real estate developers, real estate india, real estate trends, scheme

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Allahabad Bank offers festive season rebate up to 1% on loans

by Paul Joseph September 2, 2010

NEW DELHI: State-owned Allahabad Bank today said borrowers will get an interest concession of up to 1 per cent on loans during the festival season, which it hopes will attract new customers. While the interest rebate offered by the bank on housing loans under the floating rate scheme varies from 0.25 per cent to 1 per cent, new borrowers taking out loans under the fixed rate scheme will get a concession of 0.50 per cent to 1.75 per cent for a limited period, Allahabad Bank said in a statement. At present, housing loans up to Rs 50 lakh at a floating rate are available at 10.25 per cent interest for a period of 15 years, while fixed rate loans of the same maturity and amount are available at 12.5 per cent. The announcement comes days after a few banks, including Punjab National Bank, launched a festival bonanza for their customers. PNB has offered floating home loans at a fixed rate of 8.5 per cent for three years. At the same time, Allahabad Bank has also reduced the interest rate on car loans for new vehicles by 1 per cent, it said. Under normal circumstances, the Kolkata-based lender provides car loans at an interest rate between 10.5 and 11 per cent. The saral loan scheme, personal loans for doctors and pensioners and housing loans for furnishing will also get a rebate of 1 per cent, it said. The concessional offer is valid from September 1 to December 31, 2010, it said. The special festival offer will encourage customers, especially from middle and lower income groups, to avail credit at reduced interest rates to fulfill their requirements during the festival season, it said. Meanwhile, Allahabad Bank has been conferred with the national award for excellence in MSE lending for 2009-10 instituted by the Ministry of Micro, Small and Medium Enterprises (MSME). The award was received by Chairman and Managing Director J P Dua from the President of India yesterday. The award reinforces the bank’s commitment and consistent contribution to overall economic development of the country through faster growth of MSMEs and other priority sectors, Dua said. Source: http://economictimes.indiatimes.com/personal-finance/loan-centre/home-loans/Allahabad-Bank-offers-festive-season-rebate-up-to-1-on-loans/articleshow/6475075.cms Filed under: Home loans Tagged: Allahabad Bank , Home loan interest rates

Tagged as: bank, chairman, country, home-loans, ministry, president, punjab-national, requirements

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Consumer Affairs Ministry Gives Green Signal to 49% FDI in Multi-Brand Retail

by Paul Joseph August 30, 2010 Uncategorized

The Consumer Affairs Ministry has given the green signal to allow 49 per cent FDI in multi-brand retail. It has written a letter to this effect to the Commerce Ministry. India currently allows 100 per cent FDI in cash-and-carry operation and 51 per cent in single-brand retailing. Foreign investors are barred from investing in multi-brand retail. Additionally, the Ministry also sought that a model law be first put in place at the State-level to protect mom-and-pop stores from the impact of the ‘Big Boys’ of retail. “Multi-brand retail should be permitted with a cap of 49 per cent. A significant chunk of investments should be spent on back-end infrastructure, besides logistics and agro-processing,” the Consumer Affairs Ministry had said in response to the discussion paper floated by the Department of Industrial Policy and Promotion in June on allowing 100 per cent FDI in multi-brand retail. A senior government official said the Consumer Affairs Ministry has sought the enactment of the National Shopping Mall Regulation Act to regulate the fiscal and social aspects of the retail sector, besides allowing mom-and-pop stores to become franchises of multi-brand retailers. “This will help grow not just the business but also in setting up back-end infrastructure which is much needed for the evolution of the retail sector,” the official added. According to an ICRIER study, commissioned by the Commerce Ministry in 2007, “the retail business, in India, is estimated to grow at 13 per cent each year from $322 billion in 2006-07 to $590 billion in 2011-12. The unorganised retail sector is expected to grow at about 10 per cent a year from $309 billion 2006-07 to $496 billion in 2011-12.”

Tagged as: consumer, department, green, ministry, national, real estate india, real estate trends, retail market in india

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Certain Regulation of the Proposed Real Estate Bill can Hit Project and Buyers – Realtors Claim

by Paul Joseph July 23, 2010

Even as the real estate sector has welcomed the proposed Model Real Estate (Regulation of Development) Bill, developers feel some of the provisions in the Bill, such as the five-percent bank guarantee on project cost, several new advances and reserve funds, will not only block the capital of the developers but also limit the project size. They also claim multiplicity of procedures in the Bill will further delay the project timing up to six months. The Bill provides strict monitoring of timelines during the execution of the projects putting various penal implications on the promoters. “One of the prime objectives of the Bill is to remove malpractices and fly-by-night developers. “However, there are certain provisions proposed which may defeat the very purpose for which the Act has been proposed,” Rohtash Goel, chairman and managing director, Omaxe Ltd, said. On Friday, the Confederation of Real Estate Developers’ Associations of India (Credai) had said the Bill in its current form would make homes costly for buyers by Rs 300 per sq. ft. “The proposed model real estate regulation is a welcome step on the part of government. However, there are many provisions in the bill which will add to the housing cost,” Kumar Gera, president, Credai, the apex body of realty developers in India, said. According to Goel, “The proposed act in its present form will add costs and delays to the lifecycle of the project. In our opinion simplifying the approval procedures, facilitation, regulation, control and growth of real estate development and safeguarding interest of all stakeholders should be its objectives.” Credai has suggested that there should be collaboration and proper accountability of all concerned authorities so that the complete transaction is efficient and transparent. Apart from that, the Bill has no provisions to control errant buyers and it does not speak about the accountability of local authorities that causes unnecessary delays, said the apex body of realty developers. “Ultimately, it is the end-users who would be affected as we will pass on the cost escalation to the buyers,” Gera said. “The government has already burdened the buyers with the service tax and increase in the circle rate and on the top of that this new Bill is set to make housing unaffordable for the end-users. Also the affordable housing segment will be the worst hit,” he added. The Bill provides strict monitoring of timelines during the execution of the projects putting various penal implications on the promoters. But developers feel that it has nowhere taken into account the time taken by the government agencies in clearing the projects. According to Ashwani Prakash, executive director, Paramount Group, “This regulatory Bill provides validity for three years for the licence to be issued by the regulator, whereas the government agencies as mentioned earlier take 18 to 24 months in clearing various approvals. More so when different states have different criteria for clearing projects and granting licensees, such type of sections within the Bill are to be diluted.” Developers have already submitted its paper to the ministry for housing and urban poverty alleviation on cost impact of major provisions in the proposed Bill. It has also requested the ministry to modify certain portions of the Bill, which will help buyers and developers. Source: http://www.indianrealtynews.com Filed under: Legal questions Tagged: Real estate in india

Tagged as: developers, development, government, housing, india, legal-questions, ministry, opinion, project, promoters, real estate

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No Residential Development near Rashtrapati Bhavan- Union Urban Development Ministry

by Paul Joseph July 19, 2010

Challenging the order of a single bench of Delhi high court which allowed a real estate company to develop a residential colony on a plot near Rashtrapati Bhavan, union urban development ministry has moved a division bench against the judgment. In May this year, a single judge bench had allowed the petition of Edward Keventer Successors Private Ltd (EKSPL), a subsidiary of real estate company DLF, to use 9.26-hectare (22.9 acres) dairy farm in the vicinity of Rashtrapati Bhawan for residential purposes. The court had also directed EKSPL to deposit the conversion charges of the land worth Rs 1200 crore with the government. Stating that the case was purely a contractual matter between EKSPL and the ministry and that court had “exceeded its jurisdiction” by granting a mandatory order in a purely discretionary and contractual matter, the Centre went in appeal. Admitting the plea, a division bench of Chief Justice Dipak Misra and Justice Manmohan granted a stay till the final disposal of the case. During the arguments, additional solicitor general, who was appearing for the Centre, argued that the lease agreement between the Union of India and EKSPL conferred an administrative discretion on the Centre to permit or disallow a request for change in use of the land. The counsel said that the court could not substitute its judgment for the discretion vested in an administrative authority and ask it to decide in a particular manner. Earlier, the government had also opposed the attempt for conversion for security reasons. The government is concerned about the potential security threat posed by privately-owned flats located about a km away from the President’s house. As per the case, EKSPL has held the property under a perpetual lease deed since August 1942. In February 1970, EKSPL wrote to the land and development office (L&DO) in the ministry of urban development seeking permission to use the property for construction of ownership flats. Since then, there has been a dispute between EKSPL and the ministry for the conversion of the property and the charges to be paid for it. In September 2008, EKSPL deposited conversion charges with an application seeking permission to convert the land use. In August 2009, the government refunded the conversion fee deposited by EKSPL and rejected the request. EKSPL approached the high court for directing the ministry to grant conversion of land use from dairy farming to residential.

Tagged as: centre, delhi, government, india, ministry, president, property, real estate, real estate developers

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