Coming to terms with Realty
Combination of the Real Estate Regulatory Act and Demonetisation has radically altered the business model of the Real Estate sector.
Hitting the reset button on real estate sector
The government’s demonetisation move combined with the Real Estate Regulatory Act is expected to make real estate sector operations more transparent and sustainable in the long run. The impact will be felt not just in metro cities but also in tier-2 and tier-3 towns, and the 100 Smart Cities that are now attracting organised players.
Toll plaza operations will be affected in the here & now by demonetisation; but in the medium term will hasten moves towards e-tolling.
Cashless tolling to get a boost
Toll plazas on national highways have suspended fee collection till November 24 midnight, as people continue to grapple with poor cash flows. The transition to e-tolling is expected to get a boost.
Key macro question on Demonetisation—World average of ‘cash to GDP ratio’ is about 4%. India is at 12%. What will be the trajectory now?
Cash to GDP: Time for recalibration?
India’s cash-to-GDP ratio is four times that of Brazil, Mexico and South Africa. According to experts, the demonetisation move will force many businesses to come out of the shadows and show up in GDP numbers for the first time.
India’s nuclear pact with Japan is very significant in that it is the first that Japan has signed with a country that is not party to NPT.
Japan-India sign a landmark nuclear deal
The landmark deal, signed after six years of negotiations, will make it possible for India to commission nuclear reactors by global entities. It will also give a boost to India’s efforts for gaining membership to the Nuclear Suppliers Group.
April-Oct 2016 ~ 3591 kms of highways have been constructed which gives a rate of 17.1 kms/day. In same period project awards = 4433 kms.
Road project awards slow down
Roads and shipping minister Nitin Gadkari admitted to delays in awards of road contracts while pointing out that highway construction pace has increased. The government is unlikely to meet its declared target of awarding 25,000 km of projects in this financial year.
Fastest new PSU. Nat Highway & Infra Devpt Corpn (founded in July 2014 under MoRTH) has R1 lac cr worth of road projects under devlpmnt.
Speeding up road projects
NHIDCL is executing 134 highway projects totalling a length of 8,000 km, mainly in the north-eastern states, where it routinely grapples with law and order and land acquisition issues. Its mandate is not to compete with the private sector, but to expedite pace of construction.
Public policy conundrum. Delhi Metro needs to raise fares by 66% for sustainability. But urban transpt is an Aam Admi public good. So..?
Metro fare hike: A balancing act
The fare fixation committee has recommended that the Delhi Metro fares be increased from R8 to R10 and maximum fare be raised to R50 from the current R30. The recommendations were made to balance affordability for commuters and DMRC’s sustainability.
Nat GreenTribunal directs that helicopters be used to sprinkle water in Delhi-NCR region when pollution hugely exceeds prescribed limits.
Dust refuses to settle on pollution issue
The NGT has rapped the Delhi government for using hose pipes to sprinkle water instead of helicopters to bring down pollution levels. It also admonished Haryana and Punjab governments for not taking adequate steps to stop agriculture stubble burning and construction dust.