Horizon April-May 2014

APs most credible real estate magazine

ANDHRA PRADESH REAL ESTATEDEVELOPERS ASSOCIATION

www.apreda.org

Telangana, a dream comes true

Volume 2 | Issue 16 | ` 50 | April-May 2014

HorizonsHorizons

P20

Telangana, a dream comes true

4

Admissions for Grades 1-8

Academic session 2014-15

NOW OPEN AT

KOLLUR, GACHIBOWLI

For details call:

T: 040-30878889, M: 08499993928

E: [email protected]

log on to www.openminds.in

H O R I Z O N S A P s m o s t c r e d i b l e r e a l e s t a t e m a g a z i n e6

contentscover story

Telangana, a dream comes true Page 20

special Report

Abreast with the times Page 31

08 news watch

42 Happenings

44 APReDA Diary

46 Pulse

48 Auspicious Days

48 Humour corner

50 Market Monitor

52 Property Lisiting

Landscaping

Palms to rev up your landscapePage 38

InteriorsSmart Home for Smart PeoplePage 34

Volume 2 | Issue 16 | April-May 2014

oth

er s

ectio

ns

e-Town Planning of GHMC &Green Channel initiative of HMDA

Editors Note

tthe creation of telangana has raised new opportunities for realtors as well as investors. With Hyderabad as its common capital, the hopes for futuristic development are all high. Properties in Hyderabad currently are highly undervalued when compared to other tier-1 cities like chennai and Delhi ncR. the realty rates have shown a modest growth of only 12-13% since 2009. over all these years, the real estate market of Hyderabad had stagnated, thus leaving the prices fluctuating even along the lower side of the graph. But the division of AP has started building up hopes of investors and developers once again.

the rates of properties in Hyderabad, hitherto, refrained from going up because of other factors too. the frequent revision of the repository rates by the RBI resulting in higher home loan interests and the crumbled rupee value against dollar played a dampening effect on buyers' sentiments. Inflation was an all-time high, diluting buyers' sentiments even more. Amelioration of the predicament is expected to put the developers back in action. the city is a vibrant one and shall continue to grow, thanks to its stronghold over It, Ites, pharma, health services, education, tourism, medium and small scale industries backed by high class infrastructural facilities, connectivity and climate.

the posh areas of chennai, like Poes Garden is trading at Rs 28,000-30,000 per sq ft where as similar areas in Hyderabad like Banjara Hills and Jubilee Hills are trading at Rs 7000-9000 sq ft i.e about 30%. the out skirts of chennai like the end of old Mahabalipuram Road (oMR) the rates are Rs 5500 whereas in HItec city and Kondapur which is hardly 8-9 kilometers from the cBD the prevailing prices are anywhere between Rs 4000-5000. so, there is a lot of potential for the prices to go up. Post state and general elections the Hyderabad prices are expected to firm up in a span of next six months.

In the south west of the city, the area from narsingi up to the airport on account of better connectivity due to oRR, service roads and radial roads has seen lot of development upto narsingi junction. now several villa and apartment projects are coming up in the vicinity of narsingi junction. Apart from traditional ribbon development along the national and state highway roads, concentrated developments are coming up in nallagandla, tellapur and Kollur oRR junctions as well as Adibatla, sagar road oRR junction.

In this issue of Horizons the cover story is dedicated to the impact on industry and real estate, post bifurcation of AP on the successor states of telangana and AP, the special Report dwells on the etown planning of GHMc and Green channel initiative of HMDA, then we have an interesting piece on home automation under our section on Interiors, tips on landscaping for the garden lovers besides our other regular features and a dose of realty news under the section on news Watch. Hope you enjoy reading as we did wrapping up this edition. Please do send in your feedback. Here is wishing to all our readers a very Happy Ugadi for the last time from united AP!

Jydip Mukherjiexecutive editor

Telangana, a long cherished dream comes true Volume 2 Issue 16

April-May 2014

Editorial Advisor

R Chalapathi Rao [email protected]

Executive Editor

Jydip Mukherji [email protected]

Editorial Team

Chief Copy Writer : Kishore Upadhyay Writers : A R Swati Geetha Prasad Trivita Roy

Production Team

Designed By : Akshaya Design Studio

Advertising & SalesManager : Sudheer Singh Thakur

Circulation & DistributionShams News Agencies.

Printed & Published by P. Prem Kumar on behalf of

AP Real Estate Developers Association, owned by AP Real Estate Developers Association,

Printed at Paper Craft Center, 2-3-514/4, Umanagar, Ameerpet, Hyderabad, A.P.

RNI. No. APENG/2012/44473

Published From

AP Real Estate Developers Association, # 102, Tirumala Shah Apartments,

Yellareddyguda, Ameerpet X Road, Hyderabad, A.P.- 500 073.

Contact:Tel: 040-65572184, +91-9989844467

email: [email protected]

HorizonsHorizonswww.apreda.org


national

news Watch

Ratings for green field housing

Green tribunal stays tree-cutting in eco-zone

Cabinet okays scheme to increase forest cover

Greenfield housing projects will soon come under a new rating system being developed jointly by mortgage regulator national Housing Bank and Indian Banks Association. the rating is aimed at encouraging lenders to give loans at concessional rates to individuals buying units in projects rated highly by nHB-IBA. this will prompt builders to get their projects rated. As an incentive for builders and lenders, the regulators, including the RBI and nHB, may consider regulatory forbearance or concessions to rated projects through lower risk weightage and lower provisioning as compared to unrated projects. the move comes as part of efforts to stimulate demand in a slowing economy, where

growth rate has fallen below 5% in the last two years from 8.9% in 2010-11. A report on a housing project-specific rating system was recently submitted to the finance ministry by a panel of experts from nHB, IBA, the housing industry and rating agencies. While the Rs 52,000-crore mortgage industry is growing at a brisk 18-19%, the new system will lower costs for builders and buyers, prevent inventory pile-up and speed up new projects. the new rating system will be different from the existing IcRA and cRIsIL ratings, which have a builder-specific rating

system and are not project-specific. While the new rating system will cover greenfield projects initially, nHB and IBA may consider ongoing projects. the rating will not be mandatory, but will be incentive-based and demand-driven.

After dithering for over two years, the government recently approved the much-awaited Green India Mission to increase forest cover in the country and sanctioned Rs 13,000 crore for the purpose. the local population

will be involved in the programme. It is expected to generate employment while enhancing carbon sinks through large scale afforestation and upgrading quality of existing forest cover across the country.

the approval came from the cabinet committee on economic Affairs which also cleared the proposal to converge Green India Mission with MGnReGA schemes and compensatory afforestation fund.

the national Green tribunal (nGt) has stayed the further cutting of trees and called for a halt on illegal mining on a 32-acre plot of land in the eco-sensitive Western Ghats that was stripped

of over 7,000 trees for a toll booth. If constructed, the toll booth will involve flattening of two hills on either side of a stretch of road along the Mumbai-Goa highway.

the Pune bench of the nGt passed an order recently directing the Maharashtra government and a number of government authorities, including the regional transport office and forest officer, to maintain status quo. the order prevented them from undertaking any activity by themselves or through any agency for the

purpose of illegal mining or cutting of any more trees in the area of the land in question... the deforestation occurred within a matter of weeks between December 2013 and January 2014 in Banda village, which is on the list of eco-sensitive regions declared by the ministry of environment and forests. However, the tree authority of the sawantwadi forest department issued a circular in December stating that no part of sindhudurg was ecologically sensitive. But now the same tree authority has complained against the states check post authority, which was given permission to cut 1,279 trees but had ended up cutting an additional 5,429 trees.

>

>

>

April - May 2014 9

news Watch

Proposal to reschedule payment in road projects

People living on rent in urban areas

>

Finance minister P chidambaram has approved a proposal by the Rangarajan panel to permit rescheduling of premium payment for stressed highway projects. this comes nearly a year after the proposal was first discussed. now, the highway ministry and the national Highways Authority of India (nHAI) need to notify the rules and a cut-off date by which developers will say whether they would like to make use of the proposal to postpone payment of premium to continue doing their projects. Premium is the amount offered by a developer

Infrastructure and capacity addition in infrastructure based industries has received a big push. In 2012- 13 and in the first nine months of 2013- 14, 29,350 Mw of power capacity, 3,928 km of national highways 39,144 km of rural roads, 3,343 kms of new railway track,

As per census 2011 data, the number of people living on rent in urban areas in the country is approximately 21.72 million. this was stated by Girija Vyas, union housing minister. the minister further stated that no decision has been taken on the recommendations of the task force on rental housing. 'Land' and 'olonisation' being state subjects, it is for the states to take necessary steps to address the concerns of the tenants as well as house owners in their tenancy laws. However, the national Urban Housing and Habitat Policy, 2007 (nUHHP) envisages that rent of a housing unit should be fixed by mutual agreement between the landlord and the tenant for a stipulated lease period until which the tenant will not be allowed to be evicted and after the expiry of the said lease period, the tenant will not be permitted to continue in the said housing unit, the minister added.

to the government to bag the right to widen a road, maintain it, and collect toll from the road users over a 20-30

and 217.5 million tonnes of capacity per annum in the ports was accomplished. Besides, 19 oil and gas blocks were given out for exploration and seven new airports are under construction, finance minister P chidambaram informed. In the interim Budget for 2014- 15, allocation towards the infrastructure sector has

been raised by as much as 8.6%. the government will allocate 1,81,134 crore to the sector, comprising power, coal, roads, civil aviation, ports and railways, against 1,66,756 crore in 2013- 14. During 2013- 14, the government spent about 20,000 crore less than what was allocated towards the

year concession period. the proposal will help road projects on which work has already started and prevent many projects from turning into non-performing assets for banks, according to nHAI chairman RP singh.

nHAI estimates that 21 ongoing two- to four-lane projects would benefit from the recommendations. the total annual premium payable in these 21 projects is around Rs. 729 crore. the overall premium payable over the concession period is Rs. 28,577 crore.

sector. For 2014- 15, the Plan outlay for the coal ministry has been raised by 15%, while the power ministry recorded a 12% rise in budgetary allocation. Allocation towards the shipping and ports sectors was cut 2%. the finance minister announced a marginal cut in spending towards civil aviation, while raising the allocation towards the roads sector to 5%, as less than 500 km of road projects were awarded in 2013- 14. Public- private partnerships (PPPs) have been given a renewed push. In 2014- 15, the government will add four ultra- mega solar power projects, with a capacity of about 500 Mw each, as well as 1,684 Mw, of grid- connected solar power under the national solar Mission. It is estimated overall, the infrastructure sector will require investment of $ 1 trillion in the 12th five year Plan.

>

Infrastructure gets big push

>


news Watch

nationalFDI to buy farm land in India

the urban development ministry is pushing for retrospective application of a significant change proposed in the foreign direct investment (FDI) policy for construction sector, which will allow foreign investors to purchase farm land in India. the Department of Industrial Policy and Promotion (DIPP) has proposed to relax the FDI rules for construction and housing. It has recommended a company owned and controlled by an Indian and having foreign investment could directly buy agricultural land from farmers. However, a company controlled by a non-resident will be able to buy such

the Union government has decided to establish the Urban Institute of India in new Delhi, under the Ministry of Housing and Urban Poverty Alleviation (MHUPA) as an apex national level institution, to facilitate inclusive and sustainable urban development and provide effective capacity building in the urban sector. the institute would be an autonomous, not-for-profit institution, registered under

the societies Registration Act and would be partly funded by the MHUPA through the allocations under Rajiv Awaas Yojana (RAY). Mc Kinsey a leading global firm in urban advisory services would be the knowledge partner for this Institute.

the institute with specialised verticals, specifically dealing with different urban sector domains, will aim to get the

best in class faculty both national and international, supported by the most competent researchers and support professionals. this institute will conduct high quality research on relevant and contemporary urban issues and policies, design, and implementation and engage in systematically creating and disseminating standards and best practices to all tiers of government.

land only after it is converted to non-agricultural land. the ministry wants this provision to be available retrospectively. the DIPP is in the process of floating a note for the consideration of the cabinet. DIPP feels changes under the Foreign exchanges Management Act (FeMA) can only be done on a prospective basis. A retrospective application will benefit real estate major emaar MGF, which was issued a show cause notice last year by the enforcement Directorate for alleged diversion of FDI funds to buy agricultural land. Between April 2000 and october 2013, construction development,

including townships, housing and built-up infrastructure in the country, received FDI worth $22.77 billion, or 11% of the total FDI attracted by India.

Housing demand remained weak in the second half of 2013 on a slower economic growth, coupled with high property prices and steep interest rates, says latest bi-annual report of cBRe, a global realty consultant. High vacancy levels and rising construction costs led to a slowdown in construction activity, leading to a fall in new launches, and a further delay in project completion timeline, says the report. Liquidity issues and an increasing inventory caused developers to shift their focus from new launches to the completion of existing projects. While the premium housing segment saw a steady interest from high net worth individuals and nRIs, end-user demand in the high-end and mid-end segments remained low. the depreciating rupee, which tumbled to a series of record lows in 2013, resulted in an increase in nRI inquiry for property in India. Developers reduced prices across select projects and offered discounts or marketing promotions to attract buyers in micro-markets with high inventory levels.

>

Centre to establish Urban Institute of India

>

Q3 housing demand remains weak

>


national

news Watch

Private equity funds returning to realty space

Retail lending outpaces corporate credit

>

>

Retail lending at major private and public sector banks is growing faster than corporate advances, as lenders worry about the impact of a slowing economy on business houses, show data until December, 2013. Banks are increasingly relying on retail loans to drive credit growth as they feel their chances of turning into non-performing assets (nPA) are much lower. Retail loans are also an avenue for portfolio diversification, thanks to their smaller size and distributed customer base. According to RBI data, gross outstanding credit to the retail sector as on December 27, 2013 stood at Rs 9.99 lakh crore, up 15.8% y-o-y. In the same period leading

to December 27, 2013, outstanding credit to industry was up 14.1% y-o-y at Rs 24.11 lakh crore. In case of state-run Bank of Baroda (BoB), the retail loan book stood at Rs 42,777 crore as of December 2013 mainly led by home loans of R18,398 crore. the bank's total domestic lending as of December 2013

optimistic about the revival of economy after Lok sabha elections, foreign and domestic private equity players are now returning to Indian real estate sector, but with caution and will focus on top six-seven cities, say industry experts. Last year witnessed as many as 393 Pe deals totalling UsD 9.67 billion, out of which UsD 40 million were in the real estate sector.

"We believe the current sentiment cannot become worse than (in the) last few years. the real estate sector is expected to witness a revival this year. this positive sentiment is encouraging private equity

was up 18.1% y-o-y. For private sector lender Axis Bank, loan growth was 33% in retail segment y-o-y, taking the bank's domestic retail loan book to Rs 64,126 crore in December 2013.

However, the banks corporate loan growth was a meager 3% at Rs 97,407 crore during the same period. Meanwhile, central Bank of Indias retail loans stood at Rs 25,345 crore at the end of December 2013, rising 18.44% y-o-y, while corporate credit grew just 9.54%. However, HDFc Bank and Bank of India managed to have better y-o-y growth in corporate loans compared to retail loans.

players to re-look at the sector for investment," said Pwc executive director shashank Jain.

Both the domestic as well as international players are looking at investing in the sector, he added. "Improvement in policy framework, banking sector reforms, and increase in construction activities are encouraging investors to look at real estate. there have been investments in real estate asset class, which are giving double digit returns of around 20-22 per cent," Milestone capital director Rubi Arya said.

Indias first bank dedicated to women has been in operation since november 2013. Bharatiya Mahila Bank is offering lower interest rates on loan products. From car loans to home loans and education loans, women borrowers get to pay lower interest on their loans at the womens bank. While the bank employs men and also allows men to open an account, preference is given

to woman borrowers and businesses targeted at women. the bank started out by offering a loan of up to Rs. 5 lakh for kitchen renovation at the (current) rate of 12.25 per cent. It later expanded its loan product basket to include standard offerings, such as auto, home and education loans. now the bank normally gives car loans at a 10.75 per cent interest rate. If either the borrower

or one of the co-borrowers is a woman, the rate drops to 10.5 per cent.

this is much cheaper than the 10.95 per cent interest rate on car loans offered by sBI to most borrowers. similarly, in home loans too, women get a helping hand. the bank normally charges the base rate (currently 10 per cent) of interest on home loans if the loan amount is less than Rs. 30-lakh.

A cheaper credit line for women

>


news Watch

Global investor CPPIB to have an Indian set up

canadian Pension Plan Investment Board (cPPIB), among the largest long-term public and private equity investors managing $200 billion in assets, is set to appoint an India team with a new office in Mumbai later this year. this will be the marquee investor's only second office in an emerging market and signals reviving sentiments on the India investment story. cPPIB strung together three high-profile deals with shapoorji Pallonji, Piramal and L&t in the past one year stepping up interest in India's real estate and infrastructure. cPPIB could eye investments topping $5 billion in Asia's third largest economy

in the next five years, people familiar with the matter said. the fund mix shows that only $11 billion-or just 6% of the total assets-is invested in Asian markets excluding Japan. Its exposure to emerging market equities is under 7% compared to 35% in foreign developed market equities and 8.4% in canadian equities.

one of the largest retirement funds, cPPIB has been an indirect investor behind India story for many years, as it backed several private equity funds operating in the country. But its direct entry comes at a time when long-term

foreign investors, especially private equity firms, have seen erosion of wealth caused by policy paralysis, slowing economy and declining rupee.

>

After sites, it's now the turn of flats. Bangalore Development Authority (BDA) has arbitrarily jacked up the prices of flats by almost 100%-200%, spiking the common man's last hope of owning a dream home in the city. While BDA plans to sell 2BHK flats of its future projects at not less than Rs 25 lakh, it also served notice to over 3,000 home buyers who've won flats in a recent lottery, to pay an additional Rs 10 lakh to Rs 15 lakh, depending on the type of house. the decision to hike prices was

taken at a recent BDA board meeting, taking into consideration the prices of land and increased construction costs according to BDA.

Allottees, who've won 2BHK flats, have started getting notices from the BDA, informing them to pay an additional Rs 10 lakh over the original price of Rs 7.5 lakh, fixed at the

time when BDA had invited applications in 2012. Allottees of 3BHK homes will soon get notices to pay up Rs 15 lakh more. the abrupt increase in BDA flat prices has sent allottees scurrying to arrange for finances, while some have simply given up. Interestingly,

some private builders are offering 2BHK flats of better quality and with more amenities, for prices slightly higher than those fixed by the BDA.

BDA doubles flat rates

Make the most of online property auctions

With the economy tottering, bad loans are piling up at many banks. this is forcing banks to put on

the block assets pledged by defaulting borrowers. therefore, in adversity lies an opportunity, even if its for someone else. Properties auctioned by banks are generally available cheaper than the going market rate prices could be 10-20% lower. Unlike the cumbersome physical auctions of the past in which bidders had to assemble at a pre-

decided venue, banks these days mostly conduct online e-auctions. With

online auctions, it is now far simpler for individuals to scout for cheaper properties across the country.

online auctions are also more transparent. If you win the auction, you have to pay 25% of the purchase amount to the bank by the prescribed period, usually within the same day. the earnest money deposited earlier will be adjusted in this payment. the balance 75% of the bid amount has to be paid within a prescribed time too usually within 15 days from the date of the auction. Failure to comply with this will result in you forfeiting the 25 % already paid.>

>


news Watch

state

>

Ianthinite has been discovered so far only from eight countries including the UsA, Germany, and France. India now joins the elite club after the Akkavaram discovery. Ianthinite is a rare Uranium oxide mineral discovered in Mahbubnagar district. the city-based Atomic Minerals Directorate has found deposits of Ianthinite, a rare mineral of Uranium, at Akkavaram village of Atchampet mandal in Mahbubnagar district of Andhra Pradesh. though Ianthinite has been known to science for

seven firms have submitted bids to the Visakhapatnam Urban Development Authority (VUDA) for preparation of a master plan, including review and revision of the existing master plan and zonal development plans. the VUDA issued the notification in February seeking consultancy support and preparation of the master plan for an area of 5,573 sq km. In response to the notification, seven firms have submitted technical and financial bids. the technical bids were placed before an expert committee for evaluation recently. the consultant would be finalised soon.

on the other hand a Registration Adalat of VUDA to issue papers required for registration of houses or flats was held recently. Allottees of different layouts and housing schemes attended the Adalat to obtain documents from counters at VUDA office. the staff received requests from some of the allottees who attended, for preparing the documents of registration. others were provided information on pending payments, submission of documents etc. those who submitted all the required papers were handed over the final documents for registration. the allottees attending the Adalat submited

requests for registration along with the original allotment order issued by VUDA, two passport size photographs, proof of residence and receipts of payments. After verification, the allottees will be issued the sale deed, which is to be re-submitted with a non-judicial stamp for Rs.100. It will be filled by the VUDA staff with particulars of allotment made, and other official stamps and signatures required for registration and handed over to the allottee.

the allottee has to register the sale deed within 90 days with the concerned sub-Registrar office.

the last 90 years it is for the first time that the uranium mineral is discovered in India. Ianthinite is a type of uranium oxide mineral that contains two types of Uranium (U6+ and U4+). the discovery of Ianthinite in Atchampet mandal abutting the nallamala forests may help geologists to explore more Uranium resources in the region. Ianthinite was found in the form of tiny grains along with Uraninite and Uranophane, two radioactive minerals of Uranium. Ianthinite was discovered in early 1920s

from a Uranium mine in congo. But its presence in India was not known till the AMD team discovered it recently.

>New gaming policy formulated by AP Govt

the state Government has formulated a new gaming, animation and entertainment policy for 2014-2019 extending a slew of incentives, including stamp duty and VAt rebate, to encourage players across these sectors. the much-awaited policy seeks to develop initial support infrastructure while providing for various incentives. these include reimbursement of production cost of an animation film or gaming product (based on set guidelines /stipulations) up to a maximum of Rs 5 lakh per film. this includes production costs including manpower, materials and print and professional services. It offers 25 per

duty, transfer duty and registration fee paid by gaming, animation, media and entertainment companies on sale/lease deeds on the first transaction. this incentive is not allowed if the land is allotted by the Government. there is also provision for 100% VAt reimbursement. the Government will collaborate with leading Mncs such as IBM for outsourcing the productions content for companies based here. An animation and gaming city will be set up initially in Hyderabad offering plug and play facility and later in other major cities.

A rare mineral found in Mahboobnagar

VUDA on a proactive mode

cent subsidy on lease rentals up to Rs 5 lakh a year for a maximum period of up to three years, built up office space ranging from 500 sq. ft to 15,000 sq. ft lease by animation and gaming companies. the policy seeks to extend 100 per cent reimbursement of stamp >


news Watch

18

Hyderabad

Hyderabad has become the world's most affordable office locations due to rupee depreciation and fall in rentals amid political instability over telangana, according to global realty consultant DtZ. Four other Indian cities -- chennai, Pune, Bangalore and Kolkata --- figure in the DtZ's list of top 10 least expensive office space markets in the world. "Devaluation of the Indian rupee in combination with declining rents led to Hyderabad overtaking surabaya (Indonesia) as the least

Gaming Animation Media and entertainment (GAMe) city at Raidurg inaugurated by the chief minister Kiran Kumar recently. Weve been waiting for such a project for a long time. For some reason, the project didnt take off. Given the potential of the industry and presence of animation, gaming and entertainment firms here, its the most suitable project for Hyderabad, said L. Maruti shankar, founder and MD of the city based gaming firm 7seas entertainment Limited. conceptualised earlier as Digital entertainment city (Dec) in 2008 it has been rechristened

expensive market in 2013," DtZ said in a report. the consultant has released the 17th edition of the Global occupancy costs - offices, which presents outlook and analysis of the costs of occupying prime office space across 138 markets worldwide. the total cost of occupancy in Hyderabad stood at UsD 1,250 per workstation per annum. office rentals have declined in Hyderabad to Rs 45 per sq ft per month in 2013 from Rs 58 per sq ft a month in 2012, he added.

developed in a public-private-partnership involving FXLabs, suresh Productions, Gemini tV and DQ entertainment etc. But for some reason, the location of the project was shifted. the government, on its part, is all set to execute the project on a fast track mode. About Rs 400 crore has been allocated for the project and a developer will

be identified to construct the GAMe city tower according to APIIc MD Jayesh Ranjan. However, the industry is still waiting for details such as the likely names of the firms selected for playing major role, cost of land to be allocated, likely sops and status of seZ etc.

>Interest on property tax arrears to be waived

In some good news to property tax payers, the government issued Go (no. 90) waiving interest on arrears and current year property tax dues up to March 31 and paving way for adjustment of interest already paid against future property tax. taking note of the Go, GHMc commissioner somesh Kumar has appealed to all property tax payers, who were waiting for the government nod on interest waiver, to pay their dues immediately. GHMc hopes to achieve Rs.1, 250 crore as targeted due to the interest waiver. Incentives have

already been announced for bill collectors and tax inspectors who collect more than one-and-half times last year's revenue. "We have formed five to eight teams in each circle for collection of property tax. Also, 18 special teams from the head office are being deployed to assist deputy commissioners for achieving good results. A central team, headed by additional commissioner (Planning) and comprising additional director, fire services, additional sP, vigilance & enforcement, will focus on collecting property tax from big defaulters," he added.

GAME city at Raidurg inaugurated

Hyderabad tops in least expensive office markets

>

as GAMe city. touted to be the first of its kind in the country, the Dec was expected to rope in several animation, gaming, film production, music studios, tV studios, training academies, a regulation support office and an entertainment complex at a single location. the project was intended to be >


cover story

clearing clouds of uncertainty, telangana the 29th state of India is finally seeing the light of the day. A wide cross section of the industry across the two regions have hailed the dawn of a new era that would lead to decentralised growth of not one but two states simultaneously, reports Jydip Mukherji

April - May 2014 21

on the other hand, G V Prasad, chairman and ceo of Dr Reddys Laboratories, does not view it as a big deal. For a while now, manufacturing units have been moving

towards Vishakhapatnam. this is not because of telangana, but due to lack of clearances from the pollution control board to set up sites around Hyderabad. I dont see much of a hindrance as we do business all over the world, he said.

cover story

Goutham Reddy, executive director, Ramky Group said, "the industry was awaiting clarity on the issue. We will now have to build and nurture an

entrepreneurial spirit in the telangana people so that they can contribute to the development of the new state.

FAPccI said the end of the political impasse would improve the industrial climate and usher in stability in both the regions. "now, the FAPccI hopes that an excellent and good new industrial policy will be formed by the new governments in both the states and we will have a conducive climate for industrial growth,"

Andhra Pradesh finally heaved a sigh of relief following the release of the gazette notification dated 1st March, 2014, declaring the bifurcation of the state of Andhra Pradesh into the successor states of telangana and Andhra Pradesh. telangana the 29th state of India will come into existence on 2 June, 2014. Hyderabad city will be the common capital of the successor states of telangana and Andhra Pradesh for a period of 10 years. Until its exclusive integration with telangana, law and order duties in GHMc area will remain under the common governor. High court at Hyderabad will be common for both the states till a separate Hc is set up. existing admission quotas in all government and private institutions of higher, technical and medical education shall continue for ten years.

clearing the clouds of 'uncertainty' over businesses, the industry at large and developers and realtors too, rejoiced the end of political uncertainty in the state, especially Hyderabad, which they stressed, was at the root of the crisis prevailing in the property market over the last few years. Bifurcation of Andhra Pradesh is expected to see increased economic and business activities in both the states but there is a need for early resolution on sharing of resources and clarity on the new capital, say industry and bank officials.

Industry Reactions on bifurcation of Andhra Pradesh

Ashok Reddy, chairman, cII Andhra Pradesh reacted cautiously in view of the several unanswered questions relating to the distribution of resources like water and power as well as state government policies and tax benefits. "After 10 years, the question of which city will be the capital of Andhra Pradesh may again become the bone of contention between the people of Rayalaseema and Andhra, impacting the growth prospects of the new state in case that decision is not taken quickly," Reddy cautioned.

A Krishna Kumar, Managing Director, sBI said the objective of bifurcation of any state would be to enhance growth of both the regions. "And we take this as an opportunity because of the fact that once these two states are created, there will be additional opportunity for banking, economic activity and growth."

sundeep Kumar Makthala, founder of telangana Information technology Association said, Most multinationals that wanted to invest in Hyderabad had put their plans on hold due to uncertainty all these years. now with the state formation, investments will flow into the city. However, since all development in telangana has been Hyderabad-centric, there is an urgent need to develop tier-II cities such as Warangal and Karimnagar as It centres."

B h a g a w a n t h a Rao, Managing Director, state Bank of Hyderabad said, the expected new capital, surrounding infrastructure and other developments

in Andhra Pradesh will be a good opportunity for new business. Definitely it spells good business in the infrastructure, construction and other related areas.


cover story

Profile of Telangana

telangana with a population of 3.5 crore to have ten districts: Hyderabad, Adilabad, Khammam, Karimnagar, Mahbubnagar, Medak, nalgonda, nizamabad, Rangareddy, and Warangal. It would comprise of 17 Lok sabha seats and 119 assembly constituencies. situated on the Deccan Plateau, in the central stretch of the eastern seaboard of the Indian Peninsula, the region is bordered by the states of Maharashtra to the north and north-west, Karnataka to the west, chhattisgarh to the north-east, odisha to the east and Andhra Pradesh to its south. the region has an area of 114,840 square kilometres with a gender ratio of 987 females per 1,000 males and the literacy rate is 59 per cent.

Economy of Telangana

45 per cent income of the existing state of AP comes from this region. telangana is estimated to have 12,308 industries with the bulk of it concentrated in and around Hyderabad; the rest of the region is devoid of much of industries. Its economy is likely to bank upon the information technology (It), health, tourism, pharmaceutical and other manufacturing sectors. efforts now need to be made to give a push to the manufacturing and other segments in the region, including Hyderabad. People in power have to ensure the development of the districts particularly Warangal, Adilabad, Karimnagar and nizamabad, which are at a distance of 150 km and above from the city. the mainstay of some of the districts has been food processing, poultry, dairy, weaving,

seeds and fertilizers. telangana being land-locked will have to depend mostly on road and rail for transportation.

Connectivity

Hyderabads Rajiv Gandhi International Airport one of the major airports in Asia is the jewel in the crown and the only existing commercial airport in the region. the region is well connected by railway network. secunderabad being the major hub with the south central Railway headquartered here provides a wide network of connectivity between the north and south of India. While Warangal is a nodal railway junction on the Hyderabad-new Delhi-Vijayawada-chennai-Kolkata route and part of the south central Railway zone of Indian Railways. All the districts are well connected by the railways except Medak from where the nearest railway station is 17 kms away at thippapoor and Karimnagar is not at all connected with the rail network.

telanganas road network comprises 42

per cent of the total road length of AP. It has a high proportion of rural roads. of the total 4,645 kms of national highways in the state, only 1,578 km (34 per cent) runs through telangana. some of the important highways running through the region are nH 65 connecting Hyderabad to Vijayawada and Machilipatnam, nH 202 under construction from Hyderabad to Bhopalpatnam in chhattisgarh passing through Warangal, nH44 the largest in India, a north-south corridor that connects Varanasi in north India to Kanyakumari in south India, passing through Hyderabad and Mahbubnagar, nH16 starts at nizamabad passes through nalgonda and Adilabad, nH 202 links Hyderabad to Bhopalpatnam in chattisgarh and nH 222 connecting Bhainsa - nirmal- Adilabad. the nHAI is further working towards improving interconnectivity in the region.

Natural Resources in the region

two major rivers flow through the region, with about 79% of the Godavari river catchment area and about 69% of the

cover story

December 2013 - January 2014 23


cover story

Krishna River catchment area, but most of the land is arid. several minor rivers such as the Bhima, the Manjira and the Musi also flow through the region from west to east.

the region has numerous lakes too. there are also extensive coal deposits, which are excavated by the singareni collieries company, for power generation and industrial purposes. the limestone deposits in the area feed the cement factories here. significant deposits of manganese, bauxite, china clay, granite, feldspar and mica are available here.

Power Scenario

telangana may face problems on the power front as the region largely depends on lift irrigation schemes for agriculture and drinking water, which consumes a lot of electricity. According to experts, telangana is likely to face power shortage of up to 2,000 MW after the state is formed. of the 8,924.86-MW installed capacity of state power utility APGenco, about 54% (4,825 MW) is located in telangana region. However,

52% of the capacity in telangana lies in hydro power, which is available only when reservoirs receive good inflows, while just 48% capacity is available through coal-fired power plants. currently, APGenco is building 3,210-MW capacity plants. of these only 30% (960 MW) is coming up in the telangana region. ntPc, a state-owned PsU has an

installed capacity of 4,610 MW of which 2,610 MW is generated in telangana. It is gearing up to add 1,320 MW in the region. there is an urgent need to develop power plants in telangana as the It industry needs uninterrupted power supply. As such the cabinet recently decided to bring an amendment under which 85% of the electricity generated by central units will be allocated to the two states as per population and only 15% will be allocated based upon their actual consumption pattern of the last five years.

The Hyderabad Advantage

telangana has the advantage of having a readymade capital with all the necessary infrastructure and ecosystem in place. Hyderabad with a world-class infrastructure including the outer Ring Road, connecting radial roads and the upcoming Metro Rail will kick start growth which was stalled in and around Hyderabad for the last five years. the city will continue to grow on account of outstanding infrastructure,

cost competitiveness, skills availability, which in turn would spur industrial development. Hyderabad had Rs. 13,000 crore revenue surplus during the last financial year, accounting for almost 20% of pharma exports from India, making the city a hub for the drug industry. Pharma exports from telangana may not face any hurdles as the Rajiv Gandhi International Airport at Hyderabad has necessary infrastructure for storage of drugs. Health care, education and tourism are the other major revenue earners for the city. of the 72 notified special economic zones (seZs) in the

state, 37 are located in Hyderabad and Rangareddy. In fact, Hyderabad and Rangareddy districts account for 44% of the registered manufacturing and 39% of the construction activity of the region.

Hyderabad contributed nearly 90% of the total Rs. 51,285-crore It exports from AP last year. Hyderabad is the operational hub for over 1,200 It firms employing over 3,50,000 people

Telangana has the advantage of having a readymade capital with all the necessary infrastructure and ecosystem in place. Hyderabad with a world-class infrastructure including the ORR, connecting radial roads and the upcoming Metro Rail will kick start growth...


cover story

representing about 12% of the Indian total. Global It giants such as Facebook, Google, IBM and Microsoft have a base in the city. the city is home to almost all the top 500 It companies. Hyderabad is also approved as the information technology investment region (ItIR) with a total investment likely to be about Rs. 2.19 lakh crore, of which the It/Ites (Information technology/ Information technology enabled services sector) is projected to attract investments of Rs.1.18 lakh crore and electronic Hardware Manufacturing (eHM) sector Rs. 1.01 lakh crore. It is expected to generate employment of Rs 15 lakh over the next 25 years.

Other major towns of Telangana

other than Hyderabad, adjoining Rangareddy, Medak and nalgonda districts, manufacturing activity in telangana has not seen much progress. Medak is primarily known for large ordinance production facility. Recently Mahindras has launched a big tractor unit besides many other industries are on the anvil here. Warangal's economy is predominantly agricultural. It is home to the world's second largest grain market in enamamula. Adilabad is endowed with rich mineral and forest resources, cement, mining and small scale industries. Agriculture, handloom and handicraft form the backbone of its economy. over 100 parboiled rice units, cotton and ginning mills are located here. Khammam derives its revenue from agriculture, mining, poultry animal husbandry with mostly large and medium scale mineral based industries.

Mahbubnagar economy is agro-based with forest, livestock and mineral resources. the district is well known for artistic silk sarees of nrayanpet, Kothkota, Gadwal and tippadampally, besides the pharma seZ that has come up in Jadcherla. Karimnagar known for its silver filigree work is mainly dependent on agriculture and agro allied industries has paper, tiles, stone dressing and crushing, cement concrete pipes and granite units. the major industries in the district are power, collieries and cement.

Profile of Andhra Pradesh

Andhra Pradesh hitherto used to refer to the combined regions of Rayalaseema and coastal Andhra referred as seemandhra. the thirteen districts in the region may be subdivided into 4 different regions Uttarandhra/Kalingandhra/uttara costa (srikakulam, Vizianagaram, Visakhapatnam districts) central/Madhya costa (east Godavari and West Godavari, Krishna districts) Dakshina costa (Guntur, Prakasam, nellore districts) and Rayalaseema (chittoor, Kadapa, Kurnool, Anantapur districts). It would comprise of 25 Lok sabha seats and 175 assembly constituencies. the region encompassing an area of 1.60 lakh sq km with a population of 5 crores (2011 census), constituting 58.4% of APs population is surrounded by telangana and chattisgarh on its north, orissa on its north east, Bay of Bengal on its east, tamilnadu on its south, Karnataka on its south west and west. Andhra Pradesh has a gender ratio of 996 females per 1,000 males and a 60% literacy rate.

Economy of Andhra Pradesh

the state is estimated to have 13,284 industrial establishments across sectors and sizes. Agriculture, mining and international trade through the ports along the long coastline are the mainstay of the economy. the ports continue to reap rich harvest by way of export and import of commodities such as iron ore, coal, crude oil, sulphur and other products. Vizag is on an expansion mode and aims to become a major sea port in south east Asia. thermal and hydro-electric power production, oil and natural gas, especially endowed with huge reserves in the Krishna Godavari basin drive prosperity here. other key revenue earners for the state include pharmaceuticals, petrochemicals, automobile, tourism, textiles, retail, leather, It, Iron and steel, mining and religious tourism.

Connectivity

the region boasts of International airports at Vishakapatnam, Vijayawada, tirupathi and a domestic airport at Rajahmundry. Major ports including state-owned Vizag port, the biggest seaport in the region is the second biggest in the country. Gangavaram is a private port in close proximity to Vizag seaport and steel plant. Kakinada has a deepwater medium sized seaport and an anchorage port as well. Krishnapatnam and Durgarajupatnam ports are located in nellore District. there are proposals for construction of ports at Machilipatnam (Krishna District), nizampatnam (Guntur District), Bheemunipatnam

April - May 2014 27

cover story

and nakkapalli in Vizag district, Meghavaram, Kalingapatnam and Bhavanapadu port in srikakulam as well as narsapur in West Godavari.

Vijayawada, Visakhapatnam, Rajah-mundry, eluru (major line are Howarh-chennai), Guntur, tenali, Palasa and tirupathi are the major railway stations. Vijayawada and Visakhapatnam handle a high traffic and are the major railway hubs providing interconnectivity in the region. Guntakal is also a major railway junction. tirupathi station is another major revenue earning pilgrimage center.

some of the major highways that pass through the region are nH-5 connecting chennai-Kolkata that passes through srikakulam, Visakhapatnam, further upto ongole and nellore. nH 43 that connects Visakhapatnam to Raipur passing through Vizianagaram, nH-9 linking Pune to Machilipatnam passing through Hyderabad and Vijayawada, nH-221 linking Vijayawada-Jagadalpur, nH-214 Kattipudi-Pamarru, nH-7 Kanniakumari-Varanasi, nH-205 chennai-Ananta-puram, nH-4 chennai-Bangalore and proposed chennai - Bangalore expressway corridor. nH-214A, the 255km stretch, linking Digamarru near Kakinada to ongole and passes through narasapur - Machillipatnam - challapalle - Avanigadda - Repalle - Bapatla - chirala is of great promise for promoting coastal and beach tourism.

Natural Resources

the region will grow into one of the leading states of India soon endowed with natural resources, human resources and entrepreneurship in abundance. With the nearly 1,000-km long coastline, the coastal Andhra region has a large number of ports and act as a maritime gateway on the east coast of India, proving ample scope for promotion of exports to other countries as well as for receiving imports from other countries to service the hinterland and foster maritime trade, especially imported coal that could be used in abundance to generate thermal power. Andhra Pradesh is the sole producer of shale and slate in the country. It is also the leading producer

of apatite, baryte, ball clay, dolomite, laterite, limestone, mica, garnet and vermiculite. Most of the minerals are concentrated in Rayalseema areas and Krishna districts. Krishna-Godavari basin is well known for oil and natural gas.

Power scenario

of the 8,924.86-MW installed capacity of state power utility APGenco, about

46% is located in coastal Andhra region. While 70% of APGencos capacity upgradation of 3,210-MW being taken up in AP, 2,250 MW is located in coastal Andhra. ntPc with an installed capacity of 2,000 MW is gearing up to add another 4,000 MW in Andhra Pradesh region of its total capacity of 5,320 MW planned for the state as of now. As much as 20,000-MW additional power capacity is targeted during the 12th five-year plan and beyond in the region, including a 6,000-MW nuclear

power plant to be set by the nuclear Power corporation at Kovvada in srikakulam district. once the KG-basin gas production picks up, gas-based power plants located in Andhra Pradesh region will generate more power leading to a supply of surplus power. the central government should create necessary infrastructure for evacuation of power, which is expected to be generated from the upcoming projects.

A booster-shot to the Economy of Andhra Pradesh

Successor state of Andhra Pradesh is now going to emerge as an attractive preposition for investment. It will have to search for a capital and build it. the region stands to get benefited in the process. the large investments in building new capital, educational institutions, and hospitals among others will help spur economic growth. Funds for infrastructure development related to the creation of a new capital are being allocated by the centre. there are numerous contenders for the new capital, including Visakhapatnam, Vijayawada-Guntur, ongole, Kurnool, and tirupati.

Andhra Pradesh accorded 'special category' status for a period of five years by increasing the share of grants rather than loans that it receives from the centre. the state will get a minimum Rs.50, 000 crore from the centre over the next five years as per announcement made by the union minister Jairam Ramesh. centre has also given commitment to execute the

Andhra Pradesh is now going to emerge as an attractive preposition for investment. It will have to search for a capital and build it. The region stands to get benefited in the process. The large investments in building new capital, educational institutions, and hospitals among others will help spur economic growth..


cover story

Polavaram multi-purpose project, which is estimated to cost Rs.20, 000 crores and contribute 90 percent of the funds for the project which will ensure drinking water to Vizag, irrigation in Godavari basin, transfer water from Godavari to Krishna and generate electricity.

Both the successor states will also be eligible for tax incentives for ten years as part of the strategy to encourage investments. the special package announced by the centre includes setting up of IIt, IIM, central University, tribal University and a multi-specialty health complex. the Visakhapatnam-chennai industrial corridor as envisaged by the centre would be one of the thrust areas for industrial development in the region. A metro line connecting Vijayawada-Guntur-tenali would be built in the next five years along with a metro line in

Visakhapatnam.

Major towns of Andhra Pradesh

Visakhapatnam or Vizag with a 2 million population the biggest city in seemandhra region boasts of many public sector and private industries. A big industrial hub, with India's first shore based steel plant, HPcL, BHeL, nstL, ntPc and Jawaharlal Pharma city. It is expected to emerge as the It hub post bifurcation in the region. An ItIR is being proposed for Visakhapatnam. out of the total It revenue of AP, Vizag accounts for about Rs 1,600-1,800 crores. Petroleum, chemical and Petrochemical Investment Region (PcPIR) is coming up with an investment of Rs. 343,000 crores by attracting investments in infrastructure and petrochemical units in an area of 610 sq km in Visakhapatnam

and east Godavari districts. Vizag a city with greater municipal corporation status has one of the major sea ports on the east coast and is the headquarters of the eastern naval command. It is well connected to different parts of India by rail, air and roads.

srikakulam district one of the most resourceful regions is seeing a spurt of industrial and economic activity. entrepreneurs are showing interest in the region. Dr. Reddy's Laboratories Ltd is setting up a bulk drug unit.

Vijayawada the "commercial capital" and also "political capital" besides being an educational and cultural hub is well-connected by roads and railway. It provides a vital south-north link for the railways and currently has a domestic airport with daily flights to major cities. Located on the banks of river Krishna, the city has good water resources. But land is in short supply here. Among the many advantages is its central location and easy accessibility. Authorities have identified close to 800 acres of government land between Vijayawada and Guntur, another growing city, for creating necessary infrastructure for the new capital.

Greater Guntur is third largest city in the region, well connected to other metropolitan cities in India. With a greater municipal corporation status, a major centre of business and learning is the heart of the textiles, tobacco, chilies, and cotton industries. But the city lacks in industrial development. It also has many ancient sites. the upcoming commercial belt between Guntur and Vijayawada has a great scope for merging the cities into twins.

Rajahmundry is the fifth largest city in this region both in-terms of area and also in population. situated on the banks of the river Godavari with abundant water for drinking and good irrigation facilities through canal system is the biggest center for business in the east Godavari. Adikavi nannaya University, a state university, is located here.

nellore is the fourth largest city in this region both in-terms of area and also in population. With Krishnapatnam

April - May 2014 29

cover story

Realty Prospects of Telangana

the real estate segment too eyes better scenario and opportunities out of the developments. While the industry was divided on the issue of Hyderabad losing some of its business to other major cities in the ssAP, but they unanimously maintained that the joint capital would see a drastic correction in realty rates that had touched rock bottom lately.

P. Dasharath Reddy, President, APReDA said, Declaration of telangana has finally brought the much needed clarity from the centre. now the markets will start looking upwards.

We have already hit our rock bottom, the prevailing prices are at 50% of chennai, 70% of Bangalore and much lesser than other smaller towns. selling prices in the last few years have not appreciated but the construction components i.e. costs of steel, cement, sand, labour and other material have gone up by 9% to 10%. none sells at a price lesser than their costs. the market is expected to moderately rise post general elections and further firming up will depend on the kind of set up that takes over.

R. chalapathi Rao, Vice President, national Real estate Development council (nAReDco) said, Warangal, nizamabad, Karimnagar, Khammam

and Adilabad have promising growth prospects. A few industrial centers including sirpur Kagajnagar, singareni, Ramagundam will see a spurt of economic activity. Warangal already has an Urban development Authority with a draft master plan in place. Hyderabad will grow super fast and give a tough competition to Bangalore, chennai and Pune, considering its property rates are underrated.

Raj Padmanabhan, President, AP Realtors Association, "In the next two years, a revision of Hyderabad real estate prices is bound to happen. the market has to go north with the

best infrastructure, low cost of living, low transportation cost and low real estate prices, as compared to all other cities. Majority of the realty here is residential and the unique aspect of it is the profile of the buyer. In the last few years the working migratory population has made sizeable investments. Right now we are selling at 60% of the rate that's prevalent in chennai and this is going to undergo a price correction soon." Given the cost of living in Hyderabad (cheaper than most other metro cities) he was optimistic of the local market garnering impressive investments in the future.

sandip Patnaik, Managing director, Jones Lang Lasalle (JLL-Hyderabad) predicted a similar trend. According to him, the sector is

expected to see an immediate northward growth in Hyderabad rates of anywhere between 5-10%. "Post election, this is set to rise further to touch 15-20%," he added. And this, sources said, would be irrespective of a temporary stagnation that the industry might face for a short three to six month period.

Mahavir P Agarwal, chairman, Ambience Properties Ltd said, "the prevailing prices in Hyderabad are much cheaper even as compared to the two tier cities. Given the kind of infrastructure the city has there has been a momentary setback to real estate and industry at large. But within no time the situation will evaporate and Hyderabad and its adjoining areas will regain their lost glory,"

outstation developers too confessed to their faith in the local market and insisted that their projects in Hyderabad would continue undeterred. "As a business house, all we

are interested in is returns. so given that the It& Ites industry, which has the highest buying capacity (of Rs 4,000 per sft and above), in the city, there is no question of us moving out of here. In fact, now with clarity on the bifurcation issue, we are ready to go all out with our projects in the city," said R suresh Kumar, head of Hyderabad operations of the Bangalore-based Prestige Group.

port based here it is the mineral export and coal import hub. It is strategically located on nH5 connecting chennai (just 160 KM away) and Kolkata. close to 20,000 MW thermal power plants are being setup in the close vicinity of nellore, spearheading unprecedented industrial growth. the sri city seZ on the boundary between nellore and chittoor hosts some of India's largest foreign investment projects and has managed to garner over Rs. 10,000 crore investments from 100 global firms in the recent years

including a new UsD70 million plant by Pepsico (its largest in India); a UsD160 million project by cadbury's; and a UsD480 million manufacturing plant by Isuzu Motors, its first in India that came up last year.

tirupathi the temple town is the abode of Lord Venkateshwara/ Balaji and the highest earning temple in the world. An international pilgrimage center of India, busy all round the year is a major revenue earner from religious tourism.

Kurnool the sixth largest city in successor state of Andhra Pradesh and the largest in Rayalaseema is a major industrial city endowed with rich minerals, mining is one of its primary activities. the city has good educational facilities like Rayalaseema University, Kurnool Medical college and G Pullareddy engineering college.

other major towns include Kakinada, Anantapur, Kadapa,chittoor, ongole, srikakulam, Vizianagaram, eluru, nandyal, Bhimavaram, Machili-patnam, Gudivada, Puttaparthi, Kavali etc.


cover story

Realty Prospects of Andhra Pradesh

G. chakradhar, President, APReDA- Visakhapatnam chapter said, "We are optimistic that the bifurcation of the state will lead to an influx of investment that will spur

the growth of the real estate sector and the economy on the whole in the region. the growth will be kick started by clarity on the location of the capital, high court, education hub, It, manufacturing, financial and administrative capitals are once made. People whose roots are linked to Vizag and neighbouring areas in the coming days will start looking at buying options."

A. Ramesh Babu, secretary, APReDA- Visakhapatnam said, A sizeable section of nRIs based in the Us are from the seemandhra region and once clarity on the

location of the new capital happens, we can surely see positive developments. Already there has been a considerable number of enquiries from nRIs, customers from Bangalore and chennai in the last

couple of months. since Vizag has the natural potential for becoming the hub for various sectors. It will record the highest growth in realty.

Venkanna choudary, Managing Director, sardar Projects, Vizag pointed out, Post bi-furcation Vizag has all the qualities to become the financial capital, It hub, cinema industry and

tourism centre. Its cosmopolitan culture suits multiple industries. During the last two months, we have seen that several people from neighbouring districts of east Godavari, Vizianagaram and srikakulam have started investing in Vizag. earlier, people from Vizag alone would buy flats or plots here. But now it is changing."

Areas towards Vizianagaram and srikakulam will be the future growth centres, said thalluri sivaji of Vizag Apartment Builders Association.

Gadde thirupathi Rao, President, Builders Welfare Association, Guntur, said, the urban region of VGtM (Vijayawada, Guntur, tenali & Mangalgiri) is now 7,068.20 sq kms with

ample land for further expansion, located at the centre of AP, well connected with all major towns and cities in south India, availability of abundant groundwater, two railway divisions, medical colleges, teaching hospitals and universities make it an ideal place for the capital. Although in the last few years with a heavy inflow of nRI fund as well as investment from the local trading community there has been an over investment in land here. But now it is time for various realty projects to take off, which were on hold due to the prevailing uncertainty and ride the growth wave.

Kolla syam, secretary, Builders Welfare Association, Guntur said, now in anticipation of Vijayawada becoming the capital people even from Hyderabad and Vizag region have started investing here. With

the immense business potential of the region, Vijayawada is poised to emerge as the financial capital of the new state just like Mumbai is to Maharashtra and maintain an upsurge in the real estate prices in the VGtM region,

CHAllENGES AHEADtelangana may lose out on access and opportunities to eastern coastline, which has major ports. While AP could lose a major market inherent in the huge population, business and market concentration of the city of Hyderabad. Given the indications, there will be development of massive infrastructure in AP region in future which in turn would lead to industrial development especially in and around its new capital, scripting a golden period in the history of AP with a lot of growth centres springing up along the coastline. While the telangana region will be benefited in the form of right valuation of the physical assets owing to political stability which was stalled in and around Hyderabad. It would decongest Hyderabad leading to a decentralised pattern of growth in the region very much the need of the hour according to industry heads. However, it all depends on how the funds are pumped by the centre for the creation of new AP capital city, creation of social infrastructure and connectivity of the regions with the external world, the industry opines.

[email protected]

there is a need for early resolution on sharing of resources between the two states and clarity on the new AP capital.

challenge would be posed by Hyderabad, where approximately 84,000 state government employees and hundreds of offices have to be distributed between the new entities.

there are a lot of government policies that investors in other cities (in AP) will have to battle it out before working on turning them into realty hubs.

Decentralisation of developments in the two states to reduce the pressure from Hyderabad and develop well developed cities to foster a homogeneous pattern and a faster pace of growth to overcome the disparities across the two states.

Telangana

Successor State of Andhra Pradesh

April - May 2014 31

With globalisation, technology has spread its wings like fire paving the way for It revolu-tion. In this cyber age, online era where reducing timelines to compete with the speed of a space shuttle is the essence of all endeavours. Greater Hyderabad Municipal commissioner (GHMc) and Hyderabad Metropolitan Development authority (HMDA) too have geared up to match up with the challenge. GHMc has launched e-town Planning and HMDA has initiated its Green channel Initia-tive recently. Both these initiatives have been launched to reduce red tape, bring in transparency and cut short the scarce time of the executive as well as the public.

now seeking building permission from GHMc will not be a problem anymore. the e-town Planning (e-tP) system in-troduced by GHMc promises to make it quick and hassle-free. People can now seek permission online from the GHMcs town planning department through its

website ghmc.gov.in.

speaking to Horizons somesh Kumar, commissioner GHMc said, It will cut down the cumbersome work of having to meet officers at various stages of works. I dont think any municipality has done this till now. the main intention behind the online system was to make the pro-cedures transparent. Anyone including architects, structural engineers, build-ers and others can apply. the applicant needs to go to e town Planning website of GHMc for e registration. they can enter their username, password and de-tails of the application online while simul-taneously they have to submit the hard copy to the citizen service center along with their unique number generated on-line. After which a file number along with an acknowledgement slip will be issued to them. At the processing stage itself we are updating on the net so that they are able to track the status of their applica-tion. still we have to improve further to a net format so that no paper work exists, the motto is to eliminate any manual in-teraction with corporation office, so that man power could be better utilised for effective implementation of master plan 2031 proposal and to control unauthor-ised constructions.

R chalapathi Rao, vice president, nA-ReDco, commenting on the move said, It is a noble endeavour to reduce the time taken to undergo the entire cumber-

some process of seeking building permis-sion as the detailed process of applica-tion procedure and the documents to be submitted is well enumerated. the move would facilitate swift inter departmental coordination, as the officials of various departments can record their comments, observations and objections online on a particular case, instead of getting entan-gled in the hierarchy.

G.V.Raghu, chief city Planner throwing light on the criteria involved in giving per-missions said, If the applicants project is above 20,000 sq. meters built up area impact assessment clearance from pollu-tion control board is needed. Fire safety clearance needs to be taken from DG Fire service in case of the following (i) residential area with proposed structures above 18 meters, (ii) if educational or functional hall having more than 6 me-ters height or above 500 sq. meters, (iii) if commercial building is above 15 me-

The e-Town Planning of GHMC and the Green Channel initiative of HMDA launched recently by the civic bodies are innovative steps to reduce time lines, ensure faster clearance of permissions and accelerate service delivery mechanism, reports Jydip Mukherji

Affordable housing for allspecial Report

Abreast with the times


special Report

ters height. Any category of project if it is more than 18 meters in height clearance from Airport Authority is needed. owner-ship document, plans are also required to be submitted at the time of applying for permission.

While on the other hand the 'Green channel' initiative has been recently launched by HMDA for speedy disposal of layouts. As a part of the initiative, lay-out approvals would be given to prop-erty developers within seven days from the date of submission of application. the applications would be accepted at citizen Facilitation centre (cFc) at the HMDA head office on mondays and thursdays between 10.30 am and 1 pm.

neerabh Kumar Prasad, HMDA com-missioner in an exclusive interview to Horizons informed, earlier when Green channel inititative was launched by HMDA in 2009 it did not do well. At that time many new developing areas were added to HMDA. Realising such an ini-tiative involved reengineering of all the processes we were unable to change the time taken in the whole process. there-fore we looked at it once again. this time we called it modified Green channel and have launched only for layouts. Gradu-ally in phased manner it would also be initiated for giving permissions for group housing and multi-storied complexes, in-dustrial, institutional and other categories too. the process would enable to study how this takes off and help us evolve the mechanism for other categories too.

neerabh Kumar Prasad giving details of the initiative further informed, the appli-cant should approach a licensed archi-tect and a document auditor (advocates) empanelled by HMDA for scrutiny on the

ownership of property, who would check whether the plans are in conformity with relevant rules, regulations and master plan. then the application from an ap-plicant duly approved and attested by li-censed document auditor and a licensed architect is received at our office. the document auditors are advocates en-rolled with the bar council to give a prima facie clearance that the land title is clear.

Prasad added, the authority would not charge any fee for disposal of the appli-cations under Green channel. However, the licensed architect has been asked to calculate fees towards development charges applicable on a project. the applicant has to submit the application along with fees in DD. the processing fees for the application will be deposited in cash in the special bank counter along with the application in our office.

now the whole application proforma has been reengineered based on this concept of licensed architect and document audi-tor. And the role of town planning wing of HMDA is to cross check; hence a new ap-plication format has been laid out. check

memos for scrutiny and check memos for points of inspection have been prepared by HMDA. Within seven days the intima-tion letter for draft approval of layouts would be issued. subsequently for fulfill-ing the conditions precedent like execu-tion of mortgage deeds and payment of balance fee if any, another seven days would be given. A 'Help Desk' has been set up at cFc where all queries will be answered and guide the applicants to fill the applications and other technical as-pects will be explained.

Prasad said, Within the next seven days the approved plans are handed over. We have even gone to the extent that if the applicant doesnt come within 7 days to collect the approved plans, on the eighth day it will be dispatched by speed post to the applicants address. these plans may be or may not be inspected by HMDA within seven days. the maximum time al-located by HMDA to verify whether these documents are prima facie in order is 30 days. Incase documents are not in or-der letters with the points of clarity asked for will be sent to the applicant within thirty days. Incase the applicant is not in agreement with the points raised, he can have a one to one meeting with the chief planning officer or director planning to resolve with the objections raised.

commenting on the initiative, M Vijaya sai, secretary general, APReDA said, It was a long standing demand from the developers. We are happy and welcome the decision of HMDA to launch this ini-tiative. It is a step in the right direction and I am quite confident the success of this initiative would encourage other states to take it up.

In respect of layouts near water body, heritage sites, airport, the chief planning officers of the respective areas have to inspect the sites. In case, the application does not confirm to rules and regulations or the submitted documents are not in conformity, it could be rejected. the au-thorities might also call the applicant to seek clarification. In such cases, the ap-plicants have to resubmit the application along with the processing fee again to the authority, he said. the developers would have to pay Rs 2 per sq metre fee to the respective gram panchayats for releasing

April - May 2014 33

special Report

I want to subscribe to APReDA Horizons for 6 issues. For 1 year subscription I enclose a cheque / DD of Rs 200 or have made an online payment in APReDA Horizons, Andhra Bank, srinagar colony Branch, A/c no:054311100001927.

Mr/Ms ______________________________________Address________________________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _city_ _ _ _ _ _ _ _ _ _ _ __ _ _ _ state_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _PIn_ _ _ _ _ _ _ _ _ _ _ _Phone_ _ _ _ _ _ _ _________________ _ _ _ _ email_ _ _ _ _ _ _ _ ______________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _D.D/cheque no_ _ _ _ _ _ _ _ _ _ _____ _ _ _ _ _ _Bank_ _ _ _______________________________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _/Date of online payment:_________________________________From my bank A/c no:___ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ________ From my bank name & branch:___________________________________________signature:___________________cheque/D.D should be in favor of: AP Real estate Developers Association (no cash accepted). Date :______________________

su

bs

cr

ibe

APReDA Horizons, AP Real estate Developers Association, Plot No. 43-A, Journalist Colony-A, Jubliee Hills, Hyderabad-500033, A.P. Tel: 040-65572184, +91-9989844467 email: [email protected]

them as HMDA would only give techni-cal approvals and final plans would be released by panchayats on payment of their fees.

M sridhar Rao, governing council mem-ber, APReDA, commenting on the initia-tive said, Green channel initiative of HMDA is a step in the direction of ush-ering in good governance and is going to boost the morale of the builder devel-oper community, which is at a low ebb because of the prevailing market condi-tions. It would foster an era of transpar-ency and eliminate time lost earlier in the process of attaining sanctions and approvals. And as the saying goes time saved is money earned. But the process of collecting fees at the gram panchayat level for layout approval can be elimi-nated and it could be collected at the HMDA itself. Also they could go a step further to a single window clearance sys-tem where approvals from various utility departments like power, water works and sewage could all be facilitated on a com-mon platform.

the commissioner informed for group housing and multi-storied complexes there could be a time frame of 14 days as it needs little more working. the ul-timate aim is to bring everything under the green channel mode. HMDA is main-taining the record of licensed architects and auditors. Incase any application is rejected a copy would go to them. It helps to monitor their performance and take a call on renewing their license. In case of any deliberate misrepresentation as per the licensed agreement, there is a clause to take up the matter with the

council of architecture and bar council. the commissioner is talking to JnFAU, Institute of town Planners, Institute of Ar-chitecture to introduce a week long cer-tificate programme so that these licensed architects are well aware of the rules and regulations. once the Green channel is crystallised the normal mode would be discontinued. the normal mode has still been kept open until the process of Green channel stabilises.

neerabh Kumar Prasad appealed, on this occasion I would look forward to bodies like APReDA and cReDAI to set up Green channel seva Kendra with availability of licensed architects and document auditor, so that the applicant can process their papers and then send it to our office. It could be real service that they could provide to the community of developers and builders. once all these development permission are put in place under the Green channel it would be a great help to the developers and HMDA

to reduce the timelines and for HMDA to focus on other town planning and policy decisions.

speedy disposal of applications will ben-efit applicants to put an end to their never ending trips to department offices. It will ensure faster clearance of planning per-missions and accelerate service delivery mechanism to the applicants. A total re-vamp of the existing scrutiny system, the new facility has standardised format for application, scrutiny performa and in-timation letter devised for a transparent approval procedure. It could act as a model of interaction between the govern-ment and public that could be replicated by other departments, which is so apt with the changing times. It is a bold initia-tive of HMDA that would enable to move towards an era of self autonomy from the traditional system where there was over dependency on the executive to scrutinise the veracity of documents submitted.

[email protected]

the era we are in today is indeed, a fast track. things are in a fast forward mode and everyone wants to do things as fast as possible. our kids

glued to the fascinating gizmos and gadgets with the iphones and the ipads being their favourite pre-occupation of amusement. technology has changed the lifestyles and attitudes of people from kids to oldies in every sphere --- be it education, retail, entertainment or even homes. And Home Automation is the buzz word.Prasad, a young It Professional, who is a technology and gadget addict, wakes up with curtains/blinds drawn, geyser switched on and water set to boil in the kitchen instead of getting up to an alarm? customisation options go as far as your imagination can take you! He walks into his house after a long day of work and feels magical, when the garage gate opens by itself on the click of a button. As he walks in, lights turn on; room temperature is preset as per his comfort. Doesnt it sound like a wonder?Home Automation enables the

automatic control of commonly used elements like lighting, security, temperature, music, irrigation, shading, and other home devices. All these are tied together by a central controller in a manner that is personalised to the needs of each family.

Why Automation? Smart Living enables us to be

organised and efficient, gives us security and peace of mind, entertains us in the manner desired, and reduces stress and anxiety.

Security settings, temperature sensors, and motion sensors may be used to adjust appliances and thermostats, monitor activity and track events.

Telephone accessibility allows you to change system settings via a phone in your house or by calling your system remotely.

Usage and occupancy-based lighting helps cut the energy costs and leads

sMARt HoMe FoR sMARt PeoPLeAre you all set to get your utensils and clothes washed and arranged at their respec-tive spots just by the flick of a button? Home automation would soon do it all and much more, says A r swati

InteriorsInteriors


to a more eco friendly living with the right blend of natural lighting and indoor lighting. For example, curtains can automatically be opened in the morning to allow light into the home, closed during the day hours to conserve energy.

Touch sensor enables one-touch control of all lights throughout the house based on time of day, motion, security. Using mood-based scenes you can program scenes for the different tasks such as dining, cooking and cleaning, provides convenience and elegance.

An arrangement where parents are being able to monitor the safety of their children and care-givers being able to remotely monitor the health and well-being of the elderly. Live camera feeds to monitor areas of the home centrally, recorded remotely. All you have to do is to relax now, lay back and enjoy.

Structured cabling: structured cabling the backbone of technology and entertainment infrastructure in your house is cost-effective, convenient to extensively wire the house when it is under construction. Central networked storage device: Media/content such as songs, photos and video that are downloaded to one or more computers in the house can be stored in a central networked storage device which will prevent loss of

data if any computers hard drive gets corrupted.Multi-room Audio: Multi-room Audio enable home owners to listen to their favourite audio track everywhere around the house and outside. It can deliver music from one central media server or from distributed sources simultaneously. theatres include high quality audio processing equipment, aesthetic in-wall speakers, stunning high-definition projectors and large screens that will display life size images when watching your favorite movies or sports events. You can also use a home disco, karaoke and performance stage for kids

with recording capabilities at minimal additional costs and movie theatre effects such as lights that dim as the action begins. Monitor usage: Monitor usage enables you to generate reports showing device or room-wise usage. Analyse the difference in energy consumption of various device settings and optimise the usage if you wish.Doorbell Assist: Answer the doorbell via the tablet application, talk across the other side of the door and see who is on the other side before you open. the application can be configured to send out an alert even when you are away an option to answer

All SET AT A fliCk, TO SuiT yOuR COMfORT ANd TASTE

Arpit Mohan working for an It company was impressed with the voice commands and the ability to control everything by just saying the words. He loves to say "party mode" ever so often to bring the music up and brighten the lights for the right setting. He says this enables him to unwind and relax after a hectic day at work.

Interiors

April - May 2014 37

sandeep Kumar sharma, a senior manager at another It company likes the energy management that the product enables and the fact that any appliance at home can now be controlled from anywhere. He tells us how he can preset things right from office or when he is on his way and things are ready for him at home and it feels awesome.

nithin Reddy enjoys the sheer convenience of managing media centrally and loves scheduling appliance actions via the smart phone application.

remotely. With electronic locks the door can be released remotely as well!Access Control: Monitor entry and exit of people in and out of protected areas. the access card can be reprogrammed as needed instead of additional keys required. Digital Door Locks provide keyless secure access with biometric, card or numbers. Key can be used as and when needed. Integration with automation systems will enable users to open digital door locks from inside the premises or from remote locations using their smart phones. they add beauty to doors in homes and provide pride of ownership.Central Vacuum System: simply plug in the hose to a wall-inlet and start vacuuming. Voice Recognition: Voice recognition that works home-grown speech recognition software using highly accurate speech recognition technology.truly Hands-free: the users voice is detected by supported microphones. commands are executed wirelessly. You dont need to get up to control devices; you dont have to keep track of different remotes. enjoy the smart home experience by delegating most of your mundane tasks.now simplify your lifestyle by adding all those repetitive and mundane tasks to the device scheduler. easy settings that can be played around with the application make it all the more fun, also, a better living experience. It could

also restrict access codes to working during specific times of the day, thus letting your housekeeper in on Monday between 3 and 5, instead of any other time. M sridhar Rao, city based reputed builder says, Home automation has been in vogue in europe and America for quite some time. the rapid penetration of the trend in the Asian markets has now evoked considerable response from Indian consumers. You could avail the services of a good consultant anywhere in the range of Rs200 to Rs600 per sq ft in the city to adopt smart home features in your house.the iPod of thermostats, installs in about 15 minutes, and then does all kinds of smart stuff, like learning your

Interiors

usage patterns for monitoring energy usage. expenses made on automation pay back over time as w

Date post:	14-Oct-2015
Category:	Documents
Upload:	smh1678
View:	161 times
Download:	1 times

Horizon April-May 2014

Documents