09.06.06
Posted in India, SEZ, Real Estate at 8:47 am by Mridul
Haryana gives in-principle nod to project to be spread over 20,000 acres to real estate giant DLF Universal Ltd is going to match Mukesh Ambani’s Reliance Industries Ltd in setting up a 20,000 - acre multi-product Special Economic Zone (SEZ) in Gurgaon.
Senior Haryana State Industrial Infrastructure Development Corporation (HSIIDC) officials say the private developer has offered the corporation a joint venture for the SEZ. “However, the project will have to be first approved by the Haryana Industrial Promotion Board (HIPB),” adds an official.
The proposed project, which has already received an “in-principle approval” of the Central government, is proposed to be set up on both sides of (Gurgaon-Jaipur) National Highway 8, bisecting the proposed Kundli Manesar Palwal (KMP) Expressway In fact, the proposed DLF SEZ will look on to the 25,000 - acre Reliance - HSIIDC joint venture SEZ likely to come up in Gurgaon and Jhajjar districts.
The proposed DLF SEZ will be developed in four phases. The first phase of 500 acres is expected to be completed by 2009 and the final phase by 2018.
The company expects the SEZ to attract an investment of Rs 1,24,000 crore in terms of fixed as-
sets like industrial, commercial and residential stock. The annual export potential of the project has been pegged at $10-12 billion once it is fully operational. The SEZ project will be developed through a special purpose vehicle (SPV) promoted by DLF
The company has identified land on both sides of NH 8 for the project, and has offered to keep any part of the land acquired by the state government for public purpose out of the SEZ project.
The project report submitted by DLF visualises 5,000-6,000 acres of the total project area being developed for industrial use in two parts - large industrial zone and small industrial zone. The large industrial zone will be developed with plots of 10, 25 and 50 acres, while the small industrial zone will be developed with plots of one, two and five acres. The company also proposes to demarcate a “free trade zone” within the processing area of the SEZ, which would lay emphasis on trading of goods and commodities manufactured within the SEZ, their packaging/ repackaging/ exhibition and the service sector, including BPOs, IT and ITES companies. The private developer will reserve about 2,000 acres for a commercial zone that will include shops and other establishments such as hotels, office complexes and banks. DLF will also develop about 20 million square feet of built-up infrastructure, which would include business centres, logistics park, warehouses and hotels.
Almost 10,000 acres will be developed solely as residential zone, providing all categories of houses for people working in the SEZ. DLF will also develop about 2,000 to 3,000 acres as institutional area, providing educational, healthcare and research infrastructure.
The private developer will provide connectivity to the 20,000-acre SEZ by creating an arterial road connecting NH 8 and the proposed Kundli-Manesar-Palwal Expressway during the first phase of development. DLF also proposes to set up a gas-based captive power plant of 2,000 MW capacity at a cost of Rs 6,000 crore.
According to tentative company estimates, the land cost for the project will work out to Rs 10,000 crore. The development cost has been estimated at Rs 6,142 crore, the cost for readily built infrastructure at Rs 2,625 and the cost of project management at Rs 938 crore.
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08.31.06
Posted in Review, India, Oil news, Real Estate at 11:40 pm by Mridul
Reliance found more Gas in the Krishna Godavari Basin
This is good, Reliance has found more gas reserves in the Krishna Godavari Basin. Now the company will start the pumping process by June 2008. The company earlier had gas in this region in the shallow sedimentary basin, but now what they have found is the gas belonging to the older deeper sedimentary basins which will ensure higher yield and better and sustained gas flow. RIL will now have 80 mmscmd of gas at its disposal; will call for competitive bids to develop the market.
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Posted in Review, News, India, investment, SEZ, Government, Prices, Real Estate at 11:40 pm by Mridul
SEZ: Is it Export promotion or Real Estate Promotion: says RBI
Now the SEZ fever has disturbed the (Reserve Bank of India) RBI too. The RBI has said that the SEZ policy 2005 sees to be more focused on the Real Estate promotion rather that Export promotion. In the recent reports, the RBI has said that “the tax breaks for the SEZ are only justifiable only if they establish forward or backward linkage with the domestic economy”.
Our review: If RBI is now in picture, then it’s a matter of concern. This will definitely ignite the political dispute for SEZ into the states also. The promoters who have already set up their plants in the existing operational SEZ must be the most happiest persons coz they would be affected by any the policy change into the SEZ act, since their units were set up in the SEZ which the old policy was in action.
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08.30.06
Posted in News, India, investment, SEZ, Government, Real Estate at 2:53 am by Mridul
Kerala inviting partners for SEZ in State.
The Kerala State Industrial Development Corporation (KSIDC) is inviting proposals, the real estate developers to partner into the SEZ that they are willing to set up in Kerala State. The corporation has acquired land in the Districts of Kannur, Kozhikode and Malappuram. KSIDC has acquired approximately 250 acres in each of the districts. The KSIDC has no problem setting up industries like textiles, garments, rubber products, healthcare, tourism, resorts, food processing etc.
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Posted in Review, News, India, Real Estate, Retail at 2:51 am by Mridul
After Reliance and Bharti: Birla also explore for Retail
Birla has also joined the retail race going on in India. After Reliance Retail and Bharti coming up with their Retail outlets, Birla is also exploring opportunities to grab some market share. Birla’s have joined hand with McKinsey to study and explore the opportunities in the sector. The Aditya Birla Group will be the third business house to enter into the organized retail sector.
Our Review: With many business houses getting into the organized retail sector. The best thing is that consumer is definitely getting benefited. Also this will also give up a boost to the Real Estate and the manufacturing sector in the country.
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08.29.06
Posted in Review, News, investment, SEZ, Real Estate at 7:49 am by Mridul
Rs 15,000-crore refinery in Jamnagar SEZ : Essar
As the SEZ fever is going on in the country. Essar group has decided to set up a Rs 15,000-crore, 16-20 million tonne green-field refinery in its upcoming SEZ near Jamnagar. Jamnagar already boasts of the world’s largest grassroots refinery built by Reliance Industries (RIL). RIL is also setting up a Rs 25,000-crore, 27-mt refinery in its SEZ in the district. Essar has set a target of touching a cumulative refining capacity of 32 mt by 2009-10. The capacity expansion will be carried out in a phased manner. While the refinery at Vadinar, in Jamna¬gar, is ready for commissioning, the new capacities will be a part of Essar’s 1,000-hectare SEZ in the same district.
Essar has already got formal approval for developing the 1,000-hectare SEZ, for which it would pump in an estimated Rs 15,000 crore - most of which would be invested in constructing the new refinery.
Essar Oil, the group company executing the refinery project, has already begun the groundwork for construction of the new refinery as well as other downslream petrochemicals units that would be set up in the SEZ. Executives of Essar Oil have begun parleys with the state ports regulatory authority, asking the latter lo suggest suitable locations for putting up single buoy moorings (SBMs) in Gujarat waters. The company has sought approval for two SBMs.
The company is preparing a detailed project report for the new refinery as well as the two SBMs, the source added.
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08.28.06
Posted in News, India, investment, Government, Real Estate at 6:03 am by Mridul
Industrial Model Town ; in Faridabad
THE HARYANA government has decided to set up an Industrial Model Town (IMT) in Faridabad. The Haryana Small Industrial Development Corporation (HSIDC), entrusted with the task to develop the IMT, has started the process of acquiring 1,850 acres. According to Ballabgarh MLA M.S. Sharda Rathore, the state government issued a notification on July 31 empowering the HSIDC to acquire the land for the proposed IMT.
The Faridabad IMT would be on the pattern of Manesar in Gurgaon, she said. Both Indian and multinational companies will be provided industrial sites and facilities to set up pollution-free units. Sectors 66, 67, 68 and 69, situated across the Agra Canal in the Ballabgarh block, have been identified as the ideal location for the IMT in a preliminary survey
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08.25.06
Posted in Review, News, Government, Prices, Travel & Tourism, Real Estate at 4:00 am by Mridul
DDA bidding hotel lands at unreasonable prices
In a study of the land auctions to be done in Delhi for the Commonwealth games in 2010, The Delhi Development Authority (DDA) has grand plans to cope with this shortfall, by carving out specific areas for building hotels. The DDA is looking to make at least Rs 2,669.13 crore - as indicated from the reserve price - from the auction of 10 hotel sites on September 25, 2006.
Delhi at present is short of approx 22000 rooms for the Commonwealth Games and the DDA has planned to auction many sites. Most of these sites are actually not located at nice location from the tourist point of view. The sites at Shalimar Bagh and Wazirpur will not be preferred by tourists visiting Delhi during the Commonwealth Games, as they are not in proximity to the airport and popular tourist spots. So how these hotel even after getting the lands at such high prices will break even. The DDA should think over these facts and should think on making these hotels viable. If the cost of land and Building will be high, then it will affect the average room rate (ARR) of the Hotels which will directly affect the guest for the Commonwealth Games.
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Posted in Review, India, investment, SEZ, Act, Government, Information Technology, Real Estate at 3:44 am by Mridul
SEZ Caps: Central and State governments stands against each other.
So the SEZ war is on between the Central and the State Governments. PRESSURE is building on the central government from states for removal of the ceiling on SEZs by the empowered group of ministers (eGoM). The EGoM, which is meeting on Wednesday to review the cap, has to take the crucial decision on whether to maintain the cap at the original level, increase it, or do away with it.
State Ministers, Sharad Pawar, TJayanidhi Maran, Naveen Patnaik have been writing to the Central Government for this issue. They have asked the Government that the SEZ proposals for Maharashtra cannot be accommodated if the ceiling is not removed leading to loss of potential investment. With the commerce department formally approving 46 new SEZ proposals on Tuesday, the limit of 150 imposed by the EGoM has been exhausted, which has brought the State Ministries to react against the EGoM. The Orissa CM pointed out that his state, which had become an important investment destination for minerals and metals, IT and IT-enabled services, would lose out if the SEZ cap was not removed. He said Orissa was not as fast as many other states in getting sanctions and there should be fair and equal opportunities for all states in the sanctioning process.
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08.23.06
Posted in News, India, investment, Government, Real Estate, FDI at 10:51 pm by Mridul
FDI norms for Real Estate Development in India can be eased
Government of India is planning to ease the entry of the foreign investors in the country. The norms which were earlier being set by the Indian government were difficult so that the overseas Real Estate Developers cannot get into the market easily. But this news will not bring a cool breath to the Overseas Real Estate Developers.
The norms which were being set earlier:
For Commercial Development: A minimum area of 50000 sq mts.
For Residential Development : A minimum area of 10 Hectares.
These norms are now eased to 10000 sq mtr for the commercial and 10 Acres for the residential projects. Investors are not allowed to repatriate original investments before three years of completion of minimum capitalization. However in special cases, the foreign investor can be permitted to exit early but with prior FIBP approval.
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