Commercial real estate rentals in Mumbai and New Delhi have seen a steep decline of 24 per cent in the January-March quarter over the previous quarter of the financial year 2008-09, according to a research report by Jones Lang LaSalle Meghraj (JLLM), a property consultancy firm. “The biggest decline in commercial rentals have been in Mumbai and Delhi, down 24 per cent in the January-March quarter, followed by Kolkata, Hyderabad, Chennai and Pune, which were down 10-15% from the previous quarter,” the report said. Further, as inventory piles up, rentals for commercial property do not appear to be heading north anytime soon. According to the report, “By the end of 2009, the total stock of ‘Grade A’ office space in Mumbai would exceed Bangalore, which has the highest stock at present.”
“There is plenty of inventory available. So, there is lot of scope for negotiation. Rentals have fallen across parts of New Delhi, but Gurgaon and Noida have seen the biggest decline. The average rate in Connaught Place, the business district of New Delhi, is around Rs 400 per sq ft,” said Ajay Rathore, CEO of Century 21 Integrated Property Solutions, a brokerage firm in New Delhi. “India’s property market has cooled down following several years of rapidly rising rentals and aggressive development activity. Prime office rentals in the best sub-markets of Mumbai and New Delhi have fallen by 10-25% from the levels recorded at the end of 2007. Both cities continue to have huge development pipelines. However, financing woes have led to delays in planned projects,” said a research report from Knight Frank Newman Global’s annual review of global real estate.
“The vacancy rates are going up in the business district of Mumbai (Nariman Point, Colaba and surrounding areas). The rentals have fallen drastically. In some cases, intense negotiations have resulted in discounts of up to 35 per cent,” said Shreegopal Maheshwari of real estate brokerage firm Maheshwari & Maheshwari. “Demand for office space in major cities in India remained weak as economic and business sentiment continued to deteriorate, particularly within the financial services and IT sectors. Any major increase in demand is unlikely in the near term. Rentals across prime buildings in the New Delhi and Bangalore CBD underwent a correction of over 10% while rentals in the Mumbai CBD suffered a 6.7% drop,” said a recent report on real estate sector from CB Richard Ellis (CBRE).
Says Anshuman Magazine, chairman and managing director, CBRE (South Asia),“With the global economic slowdown and substantial addition of supply in office space, rentals have declined across India. The office market rentals are expected to remain subdued in the short to medium term. However if the global economy begins to stabilise, I feel that the Indian economy would see the benefits earlier than many other countries, resulting in improved demand in the office sector.” “While the affordable housing vertical is already in a growth phase, the commercial, retail and premium housing verticals are still in a corrective phase,” said another report on real estate sector produced by brokerage firm Motilal Oswal. “IT sector, which was one of the largest consumers of office space, has slowed down its recruitments significantly. Three out of the top five IT/ITeS companies have reduced pace of recruitment considerably with Wipro reducing its head count marginally,” said another report on real estate compiled by Edelweiss.
Friday, July 3, 2009
Hotels Industries Push for Infrastructure Status Continues
The industry has also sought a uniform road tax on tourist vehicles. Transporters say tourism is subjected to a great disparity in taxation. A 10-year tax holiday for new hotel projects in the country is another priority of the industry. The hospitality industry has been demanding infrastructure status. It says that de-linking the sector from real estate would help it to access easier credit. The industry has also sought a special package linking it to small and medium enterprises for priority lending. At present, the Reserve Bank of India classifies loans to the sector as a commercial real estate exposure, resulting in higher interest rates and non-priority status for financial assistance.
However, analysts said this alone would not be enough to ensure easier access to credit. “Ultimately, bankers would only take a call based on the strength of the borrower and all these things will not necessarily increase the flow of credit,” said an analyst. Surprisingly, the hotels did not lobby hard enough against the threatened increase in the excise duty on wines and spirits which had been looming in the horizon, perhaps feeling that it was not a major factor in their scheme of things. But privately, the excise officials hint that if the hotel industry had gone through the tourism ministry, preposterous increase in duties could have been avoided.
Earlier this month, the Delhi government increased the excise duty from Rs.150 a bottle to 30% of the Maximum Retail Price announced by the distributors if it is up to Rs.2000 and 20% on the incremental value beyond Rs. 2000, resulting an increase in excise of around Rs. 300 to Rs.800 in general, on mid range fine wines. This will negatively impact the wine consumption in restaurants. Commonwealth Games 2010 are around the corner. The tourist business will be negatively affected with the fine wine prices going up and becoming unreasonable.
The annual budget, called the Union Budget will be announced by the Finance Minister on 6th July. It is not likely to impact the wine duties, though one could dream of the FM bringing it down to the earlier 100% from the present 150% as bounded by the agreement with WTO. Of course, the additional duties which were the bane of contention with WTO were withdrawn at that time in July 2007, but not before giving free reign to the states to charge excise duty to their heart’s content; taxation as excise duty is a state subject.
However, analysts said this alone would not be enough to ensure easier access to credit. “Ultimately, bankers would only take a call based on the strength of the borrower and all these things will not necessarily increase the flow of credit,” said an analyst. Surprisingly, the hotels did not lobby hard enough against the threatened increase in the excise duty on wines and spirits which had been looming in the horizon, perhaps feeling that it was not a major factor in their scheme of things. But privately, the excise officials hint that if the hotel industry had gone through the tourism ministry, preposterous increase in duties could have been avoided.
Earlier this month, the Delhi government increased the excise duty from Rs.150 a bottle to 30% of the Maximum Retail Price announced by the distributors if it is up to Rs.2000 and 20% on the incremental value beyond Rs. 2000, resulting an increase in excise of around Rs. 300 to Rs.800 in general, on mid range fine wines. This will negatively impact the wine consumption in restaurants. Commonwealth Games 2010 are around the corner. The tourist business will be negatively affected with the fine wine prices going up and becoming unreasonable.
The annual budget, called the Union Budget will be announced by the Finance Minister on 6th July. It is not likely to impact the wine duties, though one could dream of the FM bringing it down to the earlier 100% from the present 150% as bounded by the agreement with WTO. Of course, the additional duties which were the bane of contention with WTO were withdrawn at that time in July 2007, but not before giving free reign to the states to charge excise duty to their heart’s content; taxation as excise duty is a state subject.
CREDAI Seeks Stimulus to Pump up Affordable Housing
The real estate developers in the country are banking on affordable houses to come out of the current crisis which has worsened with a slump in demand from the IT sector. The Confederation of Real Estate Developers Association of India (Credai), the apex body of the builders in the country with over 4000 members, has sought incentives and tax relief from the government in the forthcoming Union Budget for affordable housing sector to encourage builders to take more such projects. According to Credai chairman Mr Kumar Gera, who was here for the formation of Kerala chapter of the association, the price for affordable housing sector in the has been found to be Rs 2700 per sq ft., which would include cost of land, construction, services and infrastructure. “ If we can construct houses 300 to 400 sq ft. then it be would affordable to a vast sections of people in the tier 2 and 3 towns at this price ,'’ he said.
The association has asked for special concession and tax relief for houses up to 1000 sq ft. and to provide the status of infrastructure developer for builders going for special residential zones in more than 20 acres for facilitating access of finance. Raising the tax relief limit to Rs 3 lakh, is another demand, which Mr Gera feels has elicited good response. Decline in the growth in IT sector from a level of 23 % to 17 % has been one of main causes for the meltdown in the realty sector, Mr Santosh Rungta, Credai president said. But in the last two months some positive signals have emerged with a rise in the demand for office space from telecom sector, he told ET.
Mr Rungta said residential properties which are rightly priced are still saleable even during this difficult period. To maintain the right price, however, the government should rationalize the stamp duty, which at 15.5% is the highest in Kerala when the national average is 5 to 8 %. The National Housing policy has recommended the states to bring it to 2 to 3 %.
The association has asked for special concession and tax relief for houses up to 1000 sq ft. and to provide the status of infrastructure developer for builders going for special residential zones in more than 20 acres for facilitating access of finance. Raising the tax relief limit to Rs 3 lakh, is another demand, which Mr Gera feels has elicited good response. Decline in the growth in IT sector from a level of 23 % to 17 % has been one of main causes for the meltdown in the realty sector, Mr Santosh Rungta, Credai president said. But in the last two months some positive signals have emerged with a rise in the demand for office space from telecom sector, he told ET.
Mr Rungta said residential properties which are rightly priced are still saleable even during this difficult period. To maintain the right price, however, the government should rationalize the stamp duty, which at 15.5% is the highest in Kerala when the national average is 5 to 8 %. The National Housing policy has recommended the states to bring it to 2 to 3 %.
Property Prices in Navi Mumbai on Rise
Notwithstanding the concerns over the proposed international airport in Navi Mumbai, real estate prices around the satellite city have rising for the past one month. During the past 30 days, prices of medium residential apartments rose by Rs 300-500 per square feet across various nodes in the city. The present prices range at Rs 2,500-3,000 per square foot across nodes like Kamothe, Panvel, Kharghar, Khandeshwar and CDB Belapur, said Srikanth Puduval, a real estate agent. The prices at nodes far from the proposed airport site — like Airoli, Koparkhairane and Nerul — managed to hold steady at around Rs 3,000 per square foot(medium residential apartments), despite the financial crisis. This also varies, as prices are different for different builders, while high-end and premium complexes are priced higher.
“The soaring of prices is based on speculation that the airport would eventually get clearance. The price rise is across residential and not in retail or commercial structures, but as the area develops (with proposed Special Economic Zone and airport), the hike will spill over to commercial establishments also,” Cushman & Wakefield Executive Director (Occupier Solutions) Arvind Nandan told Business Standard. Real estate prices are determined by certain benchmarks, and prices of Rs 2,500-3,000 for suburbs seem to be on the right side.
“The soaring of prices is based on speculation that the airport would eventually get clearance. The price rise is across residential and not in retail or commercial structures, but as the area develops (with proposed Special Economic Zone and airport), the hike will spill over to commercial establishments also,” Cushman & Wakefield Executive Director (Occupier Solutions) Arvind Nandan told Business Standard. Real estate prices are determined by certain benchmarks, and prices of Rs 2,500-3,000 for suburbs seem to be on the right side.
Hotels Industries Push for Infrastructure Status Continues
The tourism industry continues to lobby hard with the finance ministry, seeking infrastructure status for hotels, tax sops for restaurants and a uniform road tax on tourist vehicles in the next budget. According to a blueprint prepared by the ministry of tourism, one of the top demands is the inclusion of hotels within infrastructure under the income tax laws at par with airports, sea ports and the railways. Sources in the ministry reportedly said if this concession is allowed, new projects would be able to get full tax deduction on profits for 10 years.
The industry has also sought a uniform road tax on tourist vehicles. Transporters say tourism is subjected to a great disparity in taxation. A 10-year tax holiday for new hotel projects in the country is another priority of the industry. The hospitality industry has been demanding infrastructure status. It says that de-linking the sector from real estate would help it to access easier credit. The industry has also sought a special package linking it to small and medium enterprises for priority lending. At present, the Reserve Bank of India classifies loans to the sector as a commercial real estate exposure, resulting in higher interest rates and non-priority status for financial assistance.
However, analysts said this alone would not be enough to ensure easier access to credit. “Ultimately, bankers would only take a call based on the strength of the borrower and all these things will not necessarily increase the flow of credit,” said an analyst. Surprisingly, the hotels did not lobby hard enough against the threatened increase in the excise duty on wines and spirits which had been looming in the horizon, perhaps feeling that it was not a major factor in their scheme of things. But privately, the excise officials hint that if the hotel industry had gone through the tourism ministry, preposterous increase in duties could have been avoided.
Earlier this month, the Delhi government increased the excise duty from Rs.150 a bottle to 30% of the Maximum Retail Price announced by the distributors if it is up to Rs.2000 and 20% on the incremental value beyond Rs. 2000, resulting an increase in excise of around Rs. 300 to Rs.800 in general, on mid range fine wines. This will negatively impact the wine consumption in restaurants. Commonwealth Games 2010 are around the corner. The tourist business will be negatively affected with the fine wine prices going up and becoming unreasonable.
The annual budget, called the Union Budget will be announced by the Finance Minister on 6th July. It is not likely to impact the wine duties, though one could dream of the FM bringing it down to the earlier 100% from the present 150% as bounded by the agreement with WTO. Of course, the additional duties which were the bane of contention with WTO were withdrawn at that time in July 2007, but not before giving free reign to the states to charge excise duty to their heart’s content; taxation as excise duty is a state subject.
The industry has also sought a uniform road tax on tourist vehicles. Transporters say tourism is subjected to a great disparity in taxation. A 10-year tax holiday for new hotel projects in the country is another priority of the industry. The hospitality industry has been demanding infrastructure status. It says that de-linking the sector from real estate would help it to access easier credit. The industry has also sought a special package linking it to small and medium enterprises for priority lending. At present, the Reserve Bank of India classifies loans to the sector as a commercial real estate exposure, resulting in higher interest rates and non-priority status for financial assistance.
However, analysts said this alone would not be enough to ensure easier access to credit. “Ultimately, bankers would only take a call based on the strength of the borrower and all these things will not necessarily increase the flow of credit,” said an analyst. Surprisingly, the hotels did not lobby hard enough against the threatened increase in the excise duty on wines and spirits which had been looming in the horizon, perhaps feeling that it was not a major factor in their scheme of things. But privately, the excise officials hint that if the hotel industry had gone through the tourism ministry, preposterous increase in duties could have been avoided.
Earlier this month, the Delhi government increased the excise duty from Rs.150 a bottle to 30% of the Maximum Retail Price announced by the distributors if it is up to Rs.2000 and 20% on the incremental value beyond Rs. 2000, resulting an increase in excise of around Rs. 300 to Rs.800 in general, on mid range fine wines. This will negatively impact the wine consumption in restaurants. Commonwealth Games 2010 are around the corner. The tourist business will be negatively affected with the fine wine prices going up and becoming unreasonable.
The annual budget, called the Union Budget will be announced by the Finance Minister on 6th July. It is not likely to impact the wine duties, though one could dream of the FM bringing it down to the earlier 100% from the present 150% as bounded by the agreement with WTO. Of course, the additional duties which were the bane of contention with WTO were withdrawn at that time in July 2007, but not before giving free reign to the states to charge excise duty to their heart’s content; taxation as excise duty is a state subject.
Real Estate India Awaiting Demand Spur
India’s real estate sector wants larger tax breaks for new homes, especially for the largely untapped, middle-income and cheaper projects, to spur sales. The housing sector, the largest revenue contributor by far for real estate developers in India, has been hit by slumping sales and falling unit prices as the country’s growth began to slow amidst the credit crunch. “The distress is more locally generated and more to do with property prices,” Raja Kaushal, executive director and chief operating officer of BNP Paribas Real Estate India. Duplicate service taxes need to be brought down for developers, while transaction costs need to come down for home buyers, he said.
Real estate companies such as India’s largest listed real estate developer DLF Ltd, Tata Housing, Puravankara Projects and Unitech have rushed to launch middle or low-income housing projects to drive cash flows amidst the liquidity crunch. The government needs to initiate public-private partnership in low income housing by providing land banks, available with the government, to the developers, Maharashtra Chamber of Housing Industry said in a note. It also wants the bracket for priority lending for houses increased to up to 3 million rupees from 2 million rupees.
“We don’t need to generate demand, it just needs to come at the right prices,” Kaushal said. Mortgage lenders want an increase in the bracket for tax concessions on housing loans to 250,000 rupees. Tax payers now get a relief of up to 150,000 rupees for interest payments. Analysts say that this will help spur demand and benefit buyers as well as help boost sales for the industry. A separate tax relief for capital repayment should be provided for, R.R. Nair, chief executive, LIC Housing Finance (LICH.BO: Quote, Profile, Research), said. Besides the relief to consumers, the government needs to increase the tax exemption limit to mortgage lenders.
Kapil Wadhawan, managing director of Dewan Housing Finance (DWNH.BO: Quote, Profile, Research), said the exemption limit for a tax free reserve should be raised to 40 percent of the pre tax profits or revenue. The exemption was slashed to 20 percent 2 years ago. “I think one way (to) actually pass on the benefits to the customers is to reduce the base of interest instead of tinkering too much with individual tax slabs,” he said. However, demands on exemptions may not be answered, analysts point out. “Their margins are fairly high, they’re higher than software, so why (should they) get benefits,” Shailesh Kanani an analyst at Angel Broking.
The companies also want tax relief for five year deposits like that given to banks, Wadhawan said, adding this would help raise cheap long term funds. Cheaper funds need to reach National Housing Bank, the state-run funding agency for housing firms, to lend to housing finance companies at lower rates, he said.
Real estate companies such as India’s largest listed real estate developer DLF Ltd, Tata Housing, Puravankara Projects and Unitech have rushed to launch middle or low-income housing projects to drive cash flows amidst the liquidity crunch. The government needs to initiate public-private partnership in low income housing by providing land banks, available with the government, to the developers, Maharashtra Chamber of Housing Industry said in a note. It also wants the bracket for priority lending for houses increased to up to 3 million rupees from 2 million rupees.
“We don’t need to generate demand, it just needs to come at the right prices,” Kaushal said. Mortgage lenders want an increase in the bracket for tax concessions on housing loans to 250,000 rupees. Tax payers now get a relief of up to 150,000 rupees for interest payments. Analysts say that this will help spur demand and benefit buyers as well as help boost sales for the industry. A separate tax relief for capital repayment should be provided for, R.R. Nair, chief executive, LIC Housing Finance (LICH.BO: Quote, Profile, Research), said. Besides the relief to consumers, the government needs to increase the tax exemption limit to mortgage lenders.
Kapil Wadhawan, managing director of Dewan Housing Finance (DWNH.BO: Quote, Profile, Research), said the exemption limit for a tax free reserve should be raised to 40 percent of the pre tax profits or revenue. The exemption was slashed to 20 percent 2 years ago. “I think one way (to) actually pass on the benefits to the customers is to reduce the base of interest instead of tinkering too much with individual tax slabs,” he said. However, demands on exemptions may not be answered, analysts point out. “Their margins are fairly high, they’re higher than software, so why (should they) get benefits,” Shailesh Kanani an analyst at Angel Broking.
The companies also want tax relief for five year deposits like that given to banks, Wadhawan said, adding this would help raise cheap long term funds. Cheaper funds need to reach National Housing Bank, the state-run funding agency for housing firms, to lend to housing finance companies at lower rates, he said.
SEZ Developers can Raise Overseas Debt- GOVT
The government on Wednesday allowed developers of special economic zones to raise overseas debt for building infrastructure facilities within the zones. The move is expected to benefit companies such as Reliance Industries , Adani, Mahindra, Suzlon, Parsvanath and others who have plans for SEZs in place. However, SEZ developers cannot raise ECB for buidling integrated townships or commercial real estate within the zone. They can raise overseas loan after taking approval for establishing infrastructure facilities including power, telecommunication, railways, road including bridges, ports, industrial parks, urban infrastructure (water supply, sanitation and sewage projects) and mining, refining and exploration as laid down in the ECB policy.
Companies such as DLF, Unitech and Parsvnath that build integrated townships have also been allowed to raise foreign loans upto December. Integrated townships comprise houses and other urban amenities like commercial premises, hotels, resorts, roads and bridges built in an area of at least 100 acres. The government had opened the foreign borrowing window for developers of integrated townships on January 2 this year until June 30 as it sought to stimulate the economy. The facility has been extended untill December to make a meaningful impact on the sector which has been hit hard by fall in demand.
“The ECB policy is regularly reviewed by the Government in consultation with the Reserve Bank keeping in tune with the evolving macroeconomic conditions, sectoral requirements, global developments, etc. On a review of the macroeconomic conditions, certain liberalization or modifications in the ECB Policy have been proposed,” a finance ministry statement said here. Getting tough on companies that have violated ECB norms, the government has said they will not be allowed to access automatic route for their overseas loans. “Currently, the ECB policy is not explicit about accessing of ECB by the corporates, which have violated the extant ECB policy and are under investigation by the Reserve Bank and or Directorate of Enforcement. It is clarified that Any request by such corporates for ECB will be examined under the approval route,” the statement said.
Companies such as DLF, Unitech and Parsvnath that build integrated townships have also been allowed to raise foreign loans upto December. Integrated townships comprise houses and other urban amenities like commercial premises, hotels, resorts, roads and bridges built in an area of at least 100 acres. The government had opened the foreign borrowing window for developers of integrated townships on January 2 this year until June 30 as it sought to stimulate the economy. The facility has been extended untill December to make a meaningful impact on the sector which has been hit hard by fall in demand.
“The ECB policy is regularly reviewed by the Government in consultation with the Reserve Bank keeping in tune with the evolving macroeconomic conditions, sectoral requirements, global developments, etc. On a review of the macroeconomic conditions, certain liberalization or modifications in the ECB Policy have been proposed,” a finance ministry statement said here. Getting tough on companies that have violated ECB norms, the government has said they will not be allowed to access automatic route for their overseas loans. “Currently, the ECB policy is not explicit about accessing of ECB by the corporates, which have violated the extant ECB policy and are under investigation by the Reserve Bank and or Directorate of Enforcement. It is clarified that Any request by such corporates for ECB will be examined under the approval route,” the statement said.
CREDAI Demands Better Infrastructure from Kerala Govt
The Confederation of Real Estate Developers Association of India (CREDAI) has demanded the Kerala government to improve infrastructure facilities, mainly road connectivity, to enable them to set up budget apartments in rural areas in the state. “Lack of proper infrastructure facilities in the state is preventing the developers from taking up budget housing projects. The government must reduce the stamp duty and come out with incentives for the developers who are willing to construct budget apartments,” CREDAI chairman Kumar Gera told mediapersons on the sidelines of a function, organised to launch the Kerala chapter of CREDAI.
“The government must create infrastructure facilities mainly for an area earmarked as Special Residential Zones and hand it over to a consortium of developers to build budget apartments,” he said. Gera said that the launch of CREDAI Kerala would bring in best practices in the real estate industry in the state and it will help the developers to adopt a corporate approach to meet the ever-growing demands of home buyers and provide a transparent and ethical platform for the buyers. Highlighting the demands put forward by the CREDAI before the Centre, he said, the CREDAI had requested the Union Government to categorise dwelling units below 1,000 sqft as affordable housing and provide special incentives to it.
He said that they had requested the Centre to allow foreign nationals to purchase dwelling units in the country.”Foreign citizens belonging to an approved list of countries should be allowed to buy a house in the country with a lock in period of seven years. This will help to create a good flow of FDI into the country,” he added.
“The government must create infrastructure facilities mainly for an area earmarked as Special Residential Zones and hand it over to a consortium of developers to build budget apartments,” he said. Gera said that the launch of CREDAI Kerala would bring in best practices in the real estate industry in the state and it will help the developers to adopt a corporate approach to meet the ever-growing demands of home buyers and provide a transparent and ethical platform for the buyers. Highlighting the demands put forward by the CREDAI before the Centre, he said, the CREDAI had requested the Union Government to categorise dwelling units below 1,000 sqft as affordable housing and provide special incentives to it.
He said that they had requested the Centre to allow foreign nationals to purchase dwelling units in the country.”Foreign citizens belonging to an approved list of countries should be allowed to buy a house in the country with a lock in period of seven years. This will help to create a good flow of FDI into the country,” he added.
Thursday, July 2, 2009
Economic Survey Demands Foreign Investment in Multi-Brand Retailing
The Economic Survey for 2008-09 Finance Minister Pranab Mukherjee tabled in parliament Thursday has advocated sweeping policy changes like foreign investment in multi-brand retailing and higher foreign stake in insurance companies. The survey report card suggested the cap on foreign equity in insurance sector be raised to 49 per cent from 26 per cent currently. According to it, the limit of foreign equity can even be raised to 100 in case of health and weather insurance. (Weather insurance products are aimed at enhancing the risk-taking capacity of farmers, banks, micro-finance lenders and agro-based industries).
“This may help dispel fears of foreign equity in insurance,” the survey said. In the area of external reforms, the survey favoured foreign investment in multi-format retailing starting with food despite opposition to the idea. “Foreign direct investment in multi-format retailing should start with food,” it said, suggesting that for five years these companies must also have wholesale outlets for small and unorganised retailers. Other major initiative suggested by the annual survey was allowing foreign equity in the defence sector up to 49 per cent. The survey added that this limit can be stretched to 100 per cent in the case of high technology and strategic defence goods, services and systems that can help eliminate import dependence.
The survey has also called for decontrolling sugar, fertilizer and drug prices. However, in the case of life-saving drugs that have less than five producers, the prices should remain under government control, it said. The survey also suggested the passage of several bills including the Pension Fund Regulatory and Development Authority Bill, Insurance Bill and Forward Contract Bill. However, for real estate and housing regulation, the survey said it should be kept outside the purview of the central government and stay under the state governments’ purview. It said there should be a single regulatory agency for the transport sector including highways, railways, ports and airports, and it should have members from the sub-sectors. Regarding railways, the survey called for the entry of private companies into passenger train operations and railway services to tourist destinations. The survey also called for a new bankruptcy law.
“This may help dispel fears of foreign equity in insurance,” the survey said. In the area of external reforms, the survey favoured foreign investment in multi-format retailing starting with food despite opposition to the idea. “Foreign direct investment in multi-format retailing should start with food,” it said, suggesting that for five years these companies must also have wholesale outlets for small and unorganised retailers. Other major initiative suggested by the annual survey was allowing foreign equity in the defence sector up to 49 per cent. The survey added that this limit can be stretched to 100 per cent in the case of high technology and strategic defence goods, services and systems that can help eliminate import dependence.
The survey has also called for decontrolling sugar, fertilizer and drug prices. However, in the case of life-saving drugs that have less than five producers, the prices should remain under government control, it said. The survey also suggested the passage of several bills including the Pension Fund Regulatory and Development Authority Bill, Insurance Bill and Forward Contract Bill. However, for real estate and housing regulation, the survey said it should be kept outside the purview of the central government and stay under the state governments’ purview. It said there should be a single regulatory agency for the transport sector including highways, railways, ports and airports, and it should have members from the sub-sectors. Regarding railways, the survey called for the entry of private companies into passenger train operations and railway services to tourist destinations. The survey also called for a new bankruptcy law.
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Considering an increase in real estate investments, we bring in a quantum jump, introducing database for property prices in India. More ostensibly, we offer the right impetus the real estate enthusiasts and industry professionals require following the latest developments in Indian realty.
The entire spectrum of real estate information in IndianRealtyNews.Com has been created to facilitate prospective buyers/sellers and all associated with the real estate fraternity take informed property investment decisions by quick zeroing in on the latest real estate updates in India. So, Stay Connected !
Considering an increase in real estate investments, we bring in a quantum jump, introducing database for property prices in India. More ostensibly, we offer the right impetus the real estate enthusiasts and industry professionals require following the latest developments in Indian realty.
The entire spectrum of real estate information in IndianRealtyNews.Com has been created to facilitate prospective buyers/sellers and all associated with the real estate fraternity take informed property investment decisions by quick zeroing in on the latest real estate updates in India. So, Stay Connected !
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