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28-02-2019

CIDCO - Makers of a 21st century City - Navi Mumbai

What is CIDCO  ?

 

CIDCO is an acronym of the City and Industrial Development Corporation of Maharashtra Limited (CIDCO). Completely owned by the State Government incorporated as a company on 17th march 1970, it is a public sector undertaking of the Government. 

CIDCO is notified by the State Government as the New Town Development Authority (NTDA). The Government later widened the scope of CIDCO’s activities delegating the responsibility as the Special Development Authority (SPA). 

Today CIDCO has earned a reputation as the premier town planning and development agency in the country.

 

Some of the completed Flagship Projects of CIDCO -

 

  • Agricultural Produce Market Complex (APMC)

As an integral part of decongestion of Mumbai and consistent with the recommendations of the Regional Plan for the Bombay Metropolitan Region setup under the MR & TP Act 1966, 

CIDCO planned Agricultural Produce Market Complex (APMC) at Turbhe to shift the wholesale markets of agricultural and agricultural-processed commodities.

The physical planning and designing of the market was made conducive for open market. This reduced the malpractices and an era of free trading began. 

The key features of the path-breaking project set standards for other market. It was planned to have shop-cum-godown unit for each trader with loading/unloading space. 

The passage for buyers with facility to approach all shops in a row of buildings was totally covered.

 

  • Palm Beach Marg

Palm Beach Marg is a City Scale Road of Urban Expressway Standard having length 12 kms. Starting from Thane Belapur Road at Pawane it ends at Aamra Marg at Belapur-CBD. Part of the Road from Thane Belapur Road at Pawane to Sion-Panvel Highway having length of 3.2 km was existing. 

The Palm Beach Marg is traversing through the western edge of Navi Mumbai developed to provide fast movement of intra city traffic. It is serving for inter-nodal traffic of Vashi, Sanpada, Nerul and Belapur. All the junctions are designed with acceleration and deceleration lanes.

 

  • Exhibition Centre, Vashi

Spread over the 7.4 hectare area it is strategically located in sector 30-A, Vashi adjacent to the Sion-Panvel Expressway at a stones-through-away distance from Vashi Railway Station.

The area of the Exhibition Centre is approximately 21,562 sq.m, Business Centre is approximately 7,597 sq.m. and Ancillary Block is approximately 780 sq. m. It has day-light harvesting system and recycled water to be used for flushing and gardening purpose. 

The state-of-the-art Exhibition-cum-Business Centre CIDCO has offered an international platform to the corporates from all over the Globe for a wider exposure. 

Certified by Indian Green Building Council (IGBC) under the LEED criteria the building complex features an Exhibition Centre, Business Centre and Ancillary Block. 

The exhibition hall has underground air distribution system for Exhibition hall. There is a bridge connecting Exhibition & Business Centre at first floor level. There is a provision for car parking for 450 vehicles.

 

  • Urban Haat, Belapur

Developed on a small hilltop without disturbing the natural environment, the Urban Haat provides a panoramic view. Spread over an area of 4.7 hectares in Sector-15, CBD Belapur adjoin Belapur Railway Station its unique setting provides an environment conducive for recreation and leisure. 

It comprise of stalls, exhibition hall, food court and amphitheatre for cultural Programmes. The main purpose of an establishment like the Urban Haat is to generate awareness and promote Indian handicraft and emerging arts. 

It has become a permanent fair for crafts, food and cultural activities. Not just handicrafts, but cuisines from different states of India also form part of the fairs at Urban Haat.

 

  • Central Park, Kharghar

Spread over around 80 hectares in Sectors 23, 24 & 25 it virtually creates a 'Green-Link' between the hills dotting Kharghar and the creek, while a natural channel runs from hills to creek with fully grown trees and vegetation spread over sporadic locations. 

The recreational facilities include: Children's Park, Amphitheatre Area, Musical Instrument Park, Hasta Mudra Park, Theme Park, Food Plazas, Parking, Amusement Park, Water Park, Nursery and Club House. 

It has become most sought destination to spend quiet evenings for families and further development of the park is looked forward by the masses. 

 

Few Ongoing Projects-  

 

  • Navi Mumbai International Airport  (NMIA)

The Navi Mumbai Airport is being developed through Public Private Participation (PPP) after all the statutory approvals of the State and the Central governments. The airport site is located in an area of 1160 hectares accommodating two parallel runways for simultaneous & independent operations with provision of full length taxi ways on either side of the runways. The airfield has been designed to accommodate the new large aircrafts compatible with International Civil Aviation Organisation (ICAO) Aerodrome Code 4F. To be developed in phased manner it is expected to absorb annually 20 million by 2020 followed by 60 million by final phase.
A Special Purpose Vehicle (SPV) company will develop and operate the airport. CIDCO nodal agency appointed by the Central government for the project will be the partner of the SPV and will hold 26% share and the rest will be held by the private developer.
The growth in resident population in Navi Mumbai, rapid development of its Central Business District in Belapur node, coupled with major economic generators such as Special Economic Zone, Jawaharlal Nehru Port, 

Thane-Belapur and Taloja industrial areas and the huge catchment area ranging from Pune to South Mumbai would ensure a steady growth rate in air traffic at the new airport, thus assuring steady revenues to the investors.

 

  • Mumbai Trans-Harbour Link

The proposed Mumbai Trans Harbour Link (MTHL) which aims at facilitating decongestion by improving connectivity between Island city and main land (Navi Mumbai) and development of Navi Mumbai Region was envisaged about 30 years back.

Government of Maharashtra appointed Mumbai Metropolitan Region Development Authority (MMRDA) as the implementing agency on 4th February 2009 and declared the MTHL project as Regional Development Project on 8th June 2011.  

The scope of the work includes construction of22 km long 6-lane bridge with 16.5 km long sea bridge and 5.5 km long viaduct on land on either side. 

The link has interchanges at Sewri (Mumbai), Shivaji Nagar (Navi Mumbai) & at Chirle in Navi Mumbai near NH-4B. MMRDA is the nodal agency to implement the project. Japan International Cooperation Agency (JICA) has agreed to fund the project. 

JICA has estimated the total Project Cost as Rs. 17,843 Crore. The MTHL will provide faster connectivity to the proposed Navi Mumbai International Airport (NMIA). The link will facilitate accelerated development of Navi Mumbai and Raigad District therefore the project stake-holders CIDCO, NMMC and JNPT will assist financially.

The Ministry of Environment, Forest & Climate Change has given the Coastal Regulation Zone (CRZ) clearance and stage-1 clearance for diversion of Forest land required for the project. 

The bids for the Packages 1, 2 & 3 have been received in July, 2017 and Letter of Acceptance is given. 

 

  • Metro Rail Project

With each passing day and with each fleeting moment a city grows – both in its size and scope. The number of motor vehicles in Navi Mumbai have increased substantially over the past few years and the utilization of public modes of transport as compared to privately-owned vehicles have decreased, which is predominantly utilized by professionals and business people traveling to Mumbai. Government of Maharashtra has authorized CIDCO as MRT system administration Implementing Agency under Indian Tramway Act 1886 to implement the Metro Rail Project. 

CIDCO has envisaged metro rail corridors in the city to improve connectivity with Mumbai's transportation system. The Corporation has decided that the Belapur-Taloje-Khandeshwar Corridor Metro Rail project will be executed with CIDCO's funds and accordingly the work of the phase I has been awarded. 

The ground-breaking ceremony of Line 1 was performed on 1st May, 2011 and the construction work is in progress

The well-made Roadways and well-developed Railway network will surely have a positive impact on the city transit corridor, along with the enhancement of the already existing roadways and various new developments including the Panvel/Nerul–Seawoods–Uran railway line, MTHL and the development of Waterways connecting Navi Mumbai and Greater Mumbai.

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28-02-2019

Navi Mumbai - In Short

Navi Mumbai, one of the important cities in Mumbai Metropolitan Region (MMR) is planned and developed by the City and Industrial Development Corporation (CIDCO). With Mumbai bursting at its seams due to mounting traffic, burgeoning population, sprawling slums, high pollution levels, no lung space to breathe, skyrocketing prices, and so on, Navi Mumbai comes as a perfect alternative for most Mumbaikars.

 

The area was introduced in 1971 as the new urban township of Mumbai by the Government of Maharashtra (GoM). For this new township, a new public-sector undertaking was established - City and Industrial Development Corporation of Maharashtra (CIDCO). Navi Mumbai is situated across two districts namely Thane and Raigad.

 

Navi Mumbai Municipal Corporation (NMMC) was formed with an idea of transferring the development rights of 9 of the 14 nodes in the Navi Mumbai area for its jurisdiction. The 9 nodes maintained by NMMC are namely Vashi, Sanpada, Juinagar, Nerul, CBD Belapur, Turbhe, Kopar Khairane, Ghansoli and Airoli, with the physical and social infrastructure already in place.

 

Navi Mumbai has grown by leaps and bounds in the past few decades. It is now home to many educational institutes offering courses in several streams. Also, many MNCs have their presence in the city with their head/branch offices – which makes the city an attractive business hub. Navi Mumbai is well designed in a manner to create a balanced life between corporate, leisure and residential life for the residents, making it one of the most liveable cities of the country.

 

Navi Mumbai has a robust infrastructure, is well connected to other major areas of MMR and the state and is relatively less polluted compared to Mumbai. The city has a good public transportation system with Navi Mumbai Municipal Transport (NMMT), the transport wing of NMMC, and Brihanmumbai Electric Supply and Transport (BEST) serving the bus commuters and allowing to travel all over Mumbai, Navi Mumbai, Thane, Bhiwandi, Kalyan-Dombivli-Badlapur, Panvel-Taloja, Uran-Ulwe, etc.

 

Navi Mumbai is also known as an educational hub as it houses many educational institutes offering primary and secondary education with colleges and universities offering various courses in the field of Medical, Engineering, Design, Management, Hospitality, etc. Apart from education, the city also offers adequate healthcare facilities to meet the primary, secondary and tertiary needs of the residents with prominent players like AHEL, Fortis Healthcare, etc. operating their multispecialty hospitals. The city is home to various knowledge parks offering commercial spaces to the buzzing IT-ITeS sectors with many industry majors having their presence here including L&T Infotech, Accenture, UBS and Capgemini among others.

 

Commercial parks such as The Dhirubhai Ambani Knowledge City (DAKC), Mindspace Corporate park etc. are spread across the Thane-Belapur road which is also home to the commercial developments in the region. The MIDC present in the Mahape-Airoli belt offers manufacturing facilities to enhance their presence in the region. Reputed developers such as Paradise Group, Raheja, L&T, Akshar Group, etc. are present in Navi Mumbai with Residential and Commercial spaces to give the city a flavour of mixed development catering to the needs of its residents. To support the corporate and leisure demand, Navi Mumbai offers immense hospitality options which are operational across the budget, mid-market and premium category.

In fact, Navi Mumbai is also steadily becoming the newest commercial hub with several developers opting to build many industrial parks and office hubs due to its easy connectivity to both Mumbai and Pune, well-planned infrastructure, relatively affordable office rentals, among others. Following the rising residential and commercial developments, retail segment is also catching pace with two major malls planned in Navi Mumbai in the coming years.

 

Ample land availability, aggressive infrastructure development, seamless connectivity to prime areas in MMR and relatively lower property prices across segments (residential, commercial, retail) have made Navi Mumbai a major attraction for builders, prospective homebuyers and corporate giants alike in recent times. And, despite this rapid growth, Navi Mumbai continues to be defined by its spatial openness with multiple green belts, parks and water surfaces that maintain a balanced landscape in the city. This is eventually leading to high residential demand by youngsters and elders alike.

 

Thus, all these developments coupled with mega infra projects (including the Navi Mumbai international airport) on the anvil, it is likely that the city will see a spurt in real estate activity in the times to come. In fact, it is likely to be the top investment choice in MMR for many people who are migrating into the region for better job opportunities.

 

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28-02-2019

Maha RERA

Government of India has enacted the Real Estate (Regulation and Development) Act 2016 and all the sections of the Act shall come into force with effect from May 1, 2017.

The key objectives of the Act are:

  • Ensuring Transparency & Efficiency in real estate sector in regards to sale of plot, apartment, building or real estate project.
  • Protecting the interest of consumers in real estate sector
  • Establishing adjudicating mechanism for speedy dispute redressal
  • Establishing Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority
  •  

Under this Act, Government of Maharashtra established Maharashtra Real Estate Regulatory Authority (MahaRERA), vide Notification No. 23 dated 8 March 2017,

for regulation and promotion of real estate sector in the State of Maharashtra, with its headquarters at Mumbai.

 

Mumbai is a major centre for real estate investments and Maharashtra has been on a forefront to implement and adapt RERA.

Thus, in order to ensure the smooth functioning of real estate operations in the state, the Maharashtra Real Estate Regulatory Authority (MahaRERA) came into force.

 

As per RERA Act 2016, only RERA registered agent can work in the real estate market i.e. only registered agents can facilitate sale and purchase of real estate properties registered under section 3 of the act.

 

Consumers who have been complaining about delayed possessions in the past need not worry as RERA makes it mandatory for each project to have sufficient funding.

Home buyers can check project layouts and approvals on the Maha RERA website, and update themselves with the latest developments.

This not only ensures transparency between companies and prospective buyers but also encourages a trustworthy relationship between them.

 

The promoter shall not issue any advertisement in any manner including by the way of issuance of brochures, pamphlets, words of mouth, or in any other manner, for booking of the apartment or plots or building in real estate project without getting their particular project registered under RERA.

In case, the promoter is found advertising any false claims that he/she fails to deliver, he/she shall be exclusively liable for further penalties.

 

It is compulsory for the promoter to mention the registration number of the project provided by the authority on the website as well as on any advertisement.

 

Through an initiative of the Mumbai Grahak Panchayat (MGP), a leading consumer body, along with the Confederation of Real Estate Developers’ Associations of India (CREDAI),

the Maharashtra Chamber of Housing Industry (MCHI) and the National Real Estate Development Council (NAREDCO), Maharashtra has become the first state in India to set up an Alternate Dispute Resolution (ADR) mechanism under the RERA,

to provide speedy resolution of disputes, with the formation of a Conciliation Scheme, coming into effect from February 1, 2018.

 

As on January 2019 more than 19,000 Projects and more than 18,000 Real Estate Agents are registered under MahaRERA.

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28-02-2019

GST in Real Estate

GST, which has been implemented from 1st July 2017 has stressed out most of taxpayers and dealer’s due to its compliance requirements.

How it affects the taxes in real estate sector got different views from industry experts.

 

As we know that real estate industry contributes about 7.8% to INDIA GDP and it is the second largest employment generator after IT industry.

The enactment of this tax law will alone solve the challenges faced by the real estate sector and help the sector to come out of its long slumber.

 

In the earlier tax regime, when property under construction was purchased, the purchaser was subjected to the payment of VAT, service tax, stamp duty, and registration charges.

Property purchased after completion were exempt from VAT and service tax, and only stamp duty and registration charges were payable.

 

GST will reduce the cost of buying houses for buyers as in the previous tax regime, they had to pay Service Tax and VAT on purchase of residential unit when booked prior to their completion,

developers had to pay excise duty, custom duty, CST, Entry tax which is non-creditable tax cost, on their professional side, which is included in the price of units.

With the uniform tax rate, developers will have input credits on GST paid for services and goods purchased by them which will reduce the cost for them and can be passed on to the buyers.

 

The uniform tax structure will improve compliance by developers. It will bring greater transparency to the sector and minimise unscrupulous transactions.

GST will have a cascading effect for the home buyers, as developers with more margins in their hands, will be able to restructure the cost of the products in favour of consumers.

 

However, the tax calculations under the GST regime, for the real estate market, are not so simple. For example, the GST on under-construction projects will be charged to home buyers on the sale price

but the credit can be availed by the developers, only on the cost of construction. As the builder will have to pay the GST on the full project and the input availed is only on the construction cost, there may be a gap that is no less than 30 per cent.

Consequently, whether you opt for an under-construction property or ready to move-in, the developer will hike the prices in that proportion, to make sure this gap is bridged.

 

Meanwhile, the Group of Ministers (GoM), under Gujarat Deputy Chief Minister Nitin Patel, set up in January 2019 to analyse tax rates and challenges being faced by the real estate sector under the GST regime is leaning in favour of lower rates for under-construction residential properties.

The panel has favoured lowering the GST rate on under-construction residential properties to 5 per cent (without input tax credit) from the present rate of 12 per cent with input tax credit (after abatement of land) and for affordable housing to 3 per cent from the current rate of 8 per cent.

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