METRO PHASE IV, PLANNED TO BRING OUTER DELHI CLOSER, GETS AAP GOVT CLEARANCE

The Delhi Metro is set to add 104km to its network after the Arvind Kejriwal cabinet on Friday gave the much-awaited clearance to the six-line fourth phase that will boost connectivity to the Capital’s outskirts, the airport and south Delhi.

The Delhi government had in May given in-principal approval but the Centre returned the file, as it didn’t make a provision for the project’s funding. The cabinet cleared the financial arrangement and in six years, the Metro would have six more lines, deputy chief minister Manish Sisodia said.

The project will cost Rs 50,000 crore. Usually 70% of the funds come through loan and the remaining 30% cost is borne equally by the Delhi government and the Centre.

MORE LINES, MORE CONNECTIVITY

Delhi Metro will expand its reach further with six lines in Phase 4. The new lines will intersect the existing lines at crucial junctures and bring people living in outer areas closer to city’s heart. In May, the AAP govt gave an in-principle approval to the phase 4 project but the Centre returned the file saying they needed to give financial approval first. The six lines will be completed by 2022. These lines, in addition to the 140km being added in Phase 3, will decongest central and southern parts of the city. The Airport Line is connected only with the Yellow Line. Phase 4’s Aerocity-Tughlakabad Line will give passengers more options to get to the airport.

Delhi phase4 metroline

PROPOSED PHASE IV METRO LINES

Janakpuri (West)-RK Ashram Marg: 28.92km Stations: Krishna Park Extn, Keshopur, Meera Bagh, Paschim Vihar, Peeragarhi Chowk, Peeragarhi, Mangolpuri, West Enclave, Deepali Chowk, Madhuban Chowk, Rohini East, Prashant Vihar, North Pitampura, Haiderpur, Mukarba Chowk, Bhalaswa, Majlis Park, Azadpur, Ashok Vihar, Derawal Nagar, Rajpura, GG Sabji Mandi, Pulbangash, Sadar Bazar, Nabi Karim, RK Ashram Marg.

Tughlakabad-Terminal 1 (Aerocity): 20.20km Stations: Tughlakabad, Tughlakabad Railway Colony, Anandmayee Marg Junction, Tigri, Khanpur, Ambedkar Nagar, Saket G Block, Saket, Lado Sarai, Mehrauli, Kishangarh, Masoodpur, Vasant Kunj (Sec-D), Mahipalpur, Delhi Aerocity, Terminal 1.

Rithala-Narela: 21.73km Stations: Rohini Sec 26, Sec 31, Sec 32, Sec 36, Sec 37, Barwala, Pooth Khurd, Bawana Industrial Area 1, Bawana Industrial Area 2, Bawana, Bawana JJ Colony, Sanpath, New Sanath Colony, Anaj Mandi, Narela.

Inderlok-Indraprastha 12.57km Stations: Dayabasti, Sarai Rohilla, Ajmal Khan Park, Nabi Karim, New Delhi, LNJP Hospital, Delhi Gate, IG Stadium, Indraprastha.

Mukundpur-Maujpur: 12.54 km Stations: Burari Crossing, Jagatpur Village, Surghat, Khajuri Khas, Bhajanpura, Yamuna Vihar, Maujpur.

Lajpat Nagar-Saket G Block: 7.96 km Stations: Saket-G Block, Sheikh Sarai, Chirag Delhi, GK-1, Andrews Ganj, Lajpat Nagar.

We are now future oriented and lines have been planned in the areas where traffic is expected to grow,” Sisodia said. The DMRC would submit a progress report to the cabinet every month. Once the Centre’s gives all-clear, the project would be completed in six years.

The six lines are – Rithala –Narela, Inderlok–Indraprastha, Tughlakabad–Aerocity, Lajpat Nagar– Saket G-Block, Janakpuri (west)-RK Ashram and Mukundpur-Maujpur.

While sending the file to the Centre in May, the Delhi government said the fund commitment would be cleared by the cabinet later. The Centre returned the file but after Friday’s nod, it would be sent back to the urban development for final approval after which tenders will be called for construction work.

Phase 4 network is expected to have a daily ridership of 850,000. These lines, in addition to the 140km being added in Phase 3, will decongest central and southern parts of the city. Phase 3 will get operational in a staggered manner. The first launch is expected sometime later this month and the last in September. The new lines will expand the Metro network to 434km and 308 stations. The daily ridership is likely to go up to 6.3 million from the current 2.8 million.

Souce:http://www.hindustantimes.com/delhi/delhi-metro-phase-iv-planned-to-bring-outer-delhi-closer-gets-clearance/story-asytSNaVTUD3m68YZqWk1I.html

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WHAT’S NEW IN BUDGET 2017 FOR REAL ESTATE SECTOR?

NEW DELHI: Finance Minister Arun Jaitley in his Budget 2017-18 speech has announced one of the much needed changes for the Indian real estate sector. The affordable housing will be given infrastructure status which is likely to result in increased participation from private players.

“The announcement of affordable housing being given Infrastructure status is a welcome move and will act as a catalyst to meet the objectives of Housing to all by 2022. Credit off-take towards affordable segment of housing will lead to creation of supply especially for both stake holders the first home buyer and developer who will now have access to cheaper funding,” said Ravi Ahuja, Executive Director, Office Services & Investment Sales at Colliers International India.

“Considering the impetus being given to road infrastructure, manufacturing and affordable housing, the government have put in all the required ingredients to incentivise urban decongestion and the development of new industrial cities around our industrial transport corridors”

Jaitley also announced that National Housing Bank will refinance indiviual loans worth Rs 20,000 crore in 2017-18. “NHB allocation will give a big push to affordable Housing Finance Ccompanies namely AU housing, Gruh Finance, Repco,” said India Ratings.

Source: http://economictimes.indiatimes.com/wealth/personal-finance-news/whats-new-in-budget-2017-for-real-estate-sector/articleshow/56910234.cms

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FIRST HOUSE ON 20-YEAR LOAN TO COST RS 2.4 LAKH LESS

If you earn up to Rs 18 lakh per annum, buying your first house will cost about Rs 2.4 lakh less as the government will subsidise a part of your home loan interest. At present, this subsidy is available to only those earning up to Rs 6 lakh per annum.

The government has announced two new subsidy slabs to spur the real estate market and achieve housing for all by 2022. The slabs will apply to loans with a tenure of up to 20 years, as against the limit of 15 years now.

On December 31, 2016, PM Narendra Modi had announced two subsidy schemes under Prime Minister Awas Yojana (PMAY), but their details have been worked out only now.
Homebuyers will get subsidy at different rates depending on the income bracket they are in. People earning less than Rs 6lakh per annum will get a subsidy of 6.5 percentage points on a principal component of Rs 6 lakh, regardless of their total loan amount. If they borrowed money at 9% interest, they will pay only 2.5% interest on Rs 6 lakh, and 9% on the remainder.

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In the next bracket, people earning up to Rs 12 lakh per annum will get interest subsidy of 4 percentage points on a principal component of Rs 9 lakh, and the highest income category of Rs 18 lakh per annum will get a subsidy of 3 percentage points on a principal component of Rs 12 lakh.

The net benefit to all three categories over a 20-year loan tenure is roughly Rs 2.4 lakh (assuming an interest rate of 9%, see table), and the monthly instalment reduces by roughly Rs 2,200. This subsidy benefit under PMAY is in addition to the income tax benefits on home loans, which can go up to Rs 61,800 per annum for someone in the 30% tax bracket.

National Housing Bank (NHB) and HUDCO are the nodal agencies to implement the subsidy schemes. Under the scheme for the low-income group, the government had subsidised around 18,000 firsttime homebuyers, at a cost of around Rs 310 crore. A senior NHB official said the disbursal rate is likely to go up as the middle-income category has been brought under the scheme.

Source: http://economictimes.indiatimes.com/wealth/real-estate/first-house-on-20-year-loan-to-cost-rs-2-4-lakh-less/articleshow/57074740.cms

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LAND POOLING CAN HELP ADDRESS DELHI’S DEVELOPMENTAL ISSUES

Amaravati, the new capital of Andhra Pradesh, is being constructed by innovative landpooling mechanism without the use of the Land Acquisition Act. Capital gains tax will be exempted for persons holding land from which some part was pooled for creation of the state capital of Andhra Pradesh. The tax benefit depends on the value of the land given up by the farmer, according to the budget proposals.htestate

Those who held land on June 2, 2014 and sold it to the government to carve out the new capital will benefit from the tax waiver. Over 20,000 farmers have given up land under the Land Pooling Scheme (LPS) for the development of the new capital city. The exemptions are retrospective and are applicable for transfer of capital assets, both land and buildings.

So shouldn’t Delhi be given the same priority? After notification, the land-pooling policy of Delhi is currently languishing due to lack of political will, thereby leading to an increase in slums and unauthorised developments. It has been almost three years now.

Farmers, whether in Amravati or Delhi, deserve the same exemption. This is because Delhi is India’s only city state, which is 100% urbanised according to the Master Plan of Delhi 2021 or MPD 2021. The stated Farmers in Andhra Pradesh, who surrendered their land to the government for its upcoming capital city Amaravati, will not have to pay capital gains tax on land sale proceeds Those who held land on June 2, 2014 — when Andhra Pradesh was bifurcated to carve out Telangana, India’s youngest state — and sold it to the government will benefit from the tax waiver, finance minister Arun Jaitley vision is to “develop Delhi into a world-class megapolis. Land is either an inherited or longterm investment asset, and so valuation is largely subjective. There is also a projected need for almost 1.6 million affordable residential units and 130 million sq ft of workspace.

Governments, both at the Centre and the state level, need to understand that the average said in his budget speech Over 20,000 farmers have given up land under the Land Pooling Scheme (LPS) for the development of the new capital city Capital gains tax will be exempted for persons holding land from which land was pooled for creation of the state capital of Andhra Pradesh. The tax benefit depends on the value of the land given up by the farmer per capita land holding in Delhi would be less than half a hectare, and the only way to aggregate 56,000 hectares will be through the incentives route. This would help channelise billions in institutional investments into land and future developments.

If a robust manufacturing sector is to be developed, the government needs to extend facilitation and incentives towards raw materials for programmes, including Make in India and Start up India. So why can’t land be treated as the most crucial raw material for planned urbanisation of Delhi? MPD 2021 is the last phase of development of Delhi and 100% land is likely to be consumed for development. All possible incentives need be extended so that government agencies have access to identified land parcels to roll out the new infrastructure.

The lieutenant governor of Delhi, through an executive order, had ordered that the inter-department transfer of land for development projects in the Capital must attract only a notional fee. Even government agencies need to be incentivised to roll out physical and social infrastructure in a time-bound manner. Let’s not forget that almost 40% of the total land in Delhi would be available to DDA under the land-pooling policy.

Treat land like raw material for affordable housing, considering that the projected population in the NCT of Delhi is around 2.3 crore. There is also an urgent need for more workplaces.

Land pooling is the only way forward, and now is the best time to establish Delhi as the political, economic and development capital of India. The author is the founder director of Certes Realty Limited, a New Delhibased niche advisory and transaction organisation

Source from: Hindustan Times

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MODI WANTS PARAMETERS IDENTIFIED FOR SMART CITIES, ONE CHICAGO EVERY YEAR

Prime Minister Narendra Modi has asked the Urban Development Ministry to identify parameters like basic infrastructure, quality of life, and citizen-centric services that would be essential to developing 100 cities under the Smart Cities project.

Chairing a high-level meeting with officials on Monday, he said one of the aims of the initiative should be to improve the quality of urban governance, lending greater strength to the overall governance of the country.

With 40 per cent of the country’s population expected to live in urban areas by 2030, at least 80 per cent of that area is yet to be built. This is equivalent to a new Chicago being built every year.

Instructing the Ministry to convene a workshop of all central and State urban development authorities at the earliest, he said focus should be on reforms in laws related to urban development.

Mr. Modi told officials that cities should be identified as hubs of economic activity, and there should be adequate focus on turning “waste to wealth,” which includes solid waste management and waste-water treatment. The Prime Minister also asked government officials to visualise “urban-dependent” population, in addition to “urban” population, while planning for these smart cities.

The Urban Development Ministry has asked the States to ensure that the cities that are picked under the Smart Cities initiative meet the broad contours listed by it, including economically viable cities, meeting the requirements of e-governance and citizen services, urban mobility and energy efficiency.

While the States have been asked to draw up a short list by January 1, the Centre will take a final call based on criteria like cities accounting for 54 per cent of incremental GDP till 2025, hill and coastal areas, tourist and religious centres and mid-sized cities.

Source:

http://www.thehindu.com/news/national/narendra-modi-chairs-meeting-on-smart-city-initiative/article6735341.ece

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