By Nancy Singh

Many a things about the Delhi masterplan, and the pace at which it is evolving goes unnoticed.

In the past week or so, there have been affirmative reports about fast paced developments, on the policy notification, of the MPD 2021.

For those who haven’t travelled on the NH-10 for some time, this is the time to actually go towards Bahadurgarh, from the Peera Garhi chowk, ad take a rain check. As you hit Mundka, from nowhere, a humongous development of the Delhi Metro (DMRC) is visible. We are given to understand that this might be a big MRO centre for the Metro, and that progressively, more than 5000 resources would be working out of the Mundka centre.

This particular DMRC hub is adjoining the proposed 100 meter road, which originates from beyond the NH-1 and connects 4 national Highways. The Metro hub is supposedly being developed as a one of its kind in the South Asia region.

There is fresh news that DMRC has awarded the contract for development of housing, for its employees, within the Mundka land. It is supposed to be a beginning with about 1.30 lakh sq. Feet of housing development for the employees. Per the developer press release, the structure is likely to be Ground + 7 floors structure, and is likely to be completed within about 15 months. This would kick off fresh demand for housing under zone ‘N’ from the other employees working, in and around the vicinity.

The other recent notification being the conversion of 25 acres of Land under sector 36 of Rohini, from ‘Recreational’ to ‘Transportation’. Per sources contacted by us, it is understood that the Lieutenant Governor has already sanctioned approval for the conversion. This should pave the way for the accelerated development of the Heliport project, slated to be completed by the common-wealth games 2010. This project too is close to the 100 meter road connecting the 4 NHs. This should give a big leg up to the proposed developments under zone N of the MPD 2021.

The other good news that many a well wishers of Delhi await is the positive announcements regarding the Mini India project, under Village Kanjhawla. That would send a wave of positive energy through the entire area from Narela to Rohini to Najafgarh.

The paced at which notifications have been rolling out, we believe the means would definitely leads towards a very satisfactory MPD 2021 roll-out.

My friend and colleague Ajay Dabas does quip ponderously that “Delhi was built majestically by the British who never has 10–20-30 year(s) announced masterplans as a futuristic city, esp. focussed on the quality of lifestyle of the inhabitants. Politics of development„ coupled with the serious intent of the class divide brought in inward looking master plans which created Delhi into an urban slum over the past 50 years”.

Sets me thinking — What is it that the British had which we Indians haven’t been able to replicate.

Answer seems to be — “POSITIVE INTENT & TIME BOUND IMPLEMENTATION”

I am not once confused by the British intent Vs. Desi leaders’ direction. Both desired a certain vested interest, as well as the emphasis of their leadership on the so called “aam-janta”. TO say the least, both succeeded, and how.

Delhi hasn’t created any marquee landmark building, and still boasts of those that the British left for us, to savour, deteriorate and exploit. I have my sense of exasperation when I read that 54% of Delhi is Urban slums and unauthorized colonies.

A spate of recent announcements in Delhi sets me thinking — “are we finally ready to shed the image of an old dilapidated city, one constructed majestically by the British, and left to rot even more majestically”. However, things seem to be changing. Delhi government agencies seem to be taking the “Builder” tag seriously.

Moti Bagh, Jawaharlal Nehru Bhawan, Maulana Azad marg, Janpath, INA, Shahdra, Kidwai Nagar, Vasant Kunj, Rajouri Garden and some more areas seem to have caught the attention for rebuilding projects.

• Is that owing to the acute shortage of Ministerial houses?
• Do our policy makers desire swankier offices?
• Do they expect mega parking & parks for their fleets?
• Is there a genuine awareness, awakening and desire to re-build Delhi.

It is heard that some areas of New Moti Bagh are shortlisted to build ministerial houses, and NBCC is the shortlisted partner who would not only build, but also fund the construction through a unique finance model wherein they would be allowed to sell 10% of the total land area for commercial purpose, in return for the ministerial housing.

“The government is now open to the idea of making builders like us construct ministerial bungalows because they want the project to be delivered on time. Also, the government didn’t have funds for the project, so we came up with the idea of building them at our own cost and taking some land to build a commercial complex in return,” said Arup Roy Choudhury, chairman and managing director, NBCC.

NBCC has already delivered 50 bungalows and the rest are expected to be completed in a year.

Choudhury added, “Players like CPWD are quite understaffed so most of their projects suffer time overruns overtime, so the government is looking for fresh bidders who can have accountability.”

Other initiatives include 7.78 acres of land on Janpth under one of the Green building initiatives of the govt, an office complex in INA consisting of 6 blocks, one of which might house the HQ of CVC, another commercial complex in Kidwai Nagar, One residential pool accommodation project in Shahdra etc.

The government is also planning a commercial complex in Kidwai Nagar, though no details are available. The cost expenditure for these projects alone would exceed about 600 crores, as per conservative estimates.

Can’t expect DDA to be left behind (in announcements only). They also have announced plans for housing complexes in Vasant Kunj Jasola, Dwarka, Narela, Baprola etc; a staggering 65000 residential units with an investment of almost $500 million.

Parking lots in many areas like Subhash Nagar, Rajouri Garden, Hauz Khas, Gandhi Nagar, Model Town 2 and Munirka are already under construction with investments of around 200 crores . The project is worth Rs 170 crore.

Now, are these mirages or indicators?

Author Ramesh Menon is the Head– strategic consulting for Certes Realty Ltd, a boutique real estate consulting company, based out of New Delhi NCR (India).He can be reached on menon@certesrealty.com

There seems to be some buzz and serious intent being exemplified by the multitude of agencies under the Delhi administration. Irrespective of the various resistances, the Delhi plans, IF THEY GO AS UNDER PLAN, seems to take the Delhi “Megapolis” dreams forward.

After the announcement of the 2 SEZs in Baprola village of Delhi, comes the news of the Intent of the authorities to enact the similar development plans of the growth centres planned under Kanjhawla & chhawla. Kanjhawla in fact seems to be already off the block with the first phase of the Bus Terminus already completed, and the administration and mechanical blocks under construction.

It doesn’t take “3 Idiots” from the premier engineering institutes to figure out that while it’s easier to plan real estate on paper, it would be a gargantuan task to implement the allied services on the ground. Specially, when it comes to the touchy subject of linking the unauthorised & resettlement colonies, providing water, sewerage, electricity and roads towards them.

The announcement of the Delhi Jal Board (DJB) about their intent to immediately roll out a Vision 2021 for the services under their domain, and aligning them to the Delhi master plan MPD 2021 is indeed a welcome sign.

Officials said the Jal Board will now look at altering its plan to include vision 2021. It has already shortlisted eight consultant companies, out of 23 that submitted ‘expressions of interest’, they added.

“The eight companies have been issued ‘request for proposal’ and the bids would be announced on December 21. Work would then be awarded to the selected company for preparation of a sewerage master plan for Delhi,” said the DJB Additional CEO Santosh Vaidya.

The DJB’s mandate has now tripled: extended to rural, unauthorised, and resettlement colonies of Delhi.

The new sewerage master plan would look into three basic areas of operation: New sewer lines into hitherto coverage areas like Outer Delhi specially the areas next to Rohini, Dwarka etc., alignment of existing network of trunk sewers and internal sewers with existing sewerage treatment plants, and a wastewater policy for the use of treated effluent.

“Besides providing sewerage solutions for the city, the selected company will also prepare a detailed wastewater policy for the use of effluent,” Vaidya said.

The fact to ponder is the various agencies already announcing their plans. If they all roll out, especially, with the government talking about single window clearances for all such projects, Delhi surely would roll out the carpet for the real estate developers & investors to reap their rewards over the next 2–5 years.

Keeping the fingers crossed.

The Vice Chairman (VC) of Delhi development authority (DDA) would chair the committee, comprising of members from the various stakeholders & implementation groups.

The group named Strategic action group (STAG) would suggest steps to complete the various actions initiated under the Master plan 2021 document, and the new identified areas of urban planning. As per a communiqué issued inviting attendance for the first meeting of the group, the agenda for consideration is likely to be:

1) Critical success factors for the successful implementation of the MPD 2021

2) Research areas for review of MPD 2021

3) Identify new policy initiatives under MPD 2021

4) Areas of research for review

5) TO identify areas of collaboration in the metropolitan area between the developmental agencies and stakeholders

6) To define and develop a periodic interactive methodology for review the field of urban planning amongst the major development authorities & agencies.

The broad contour of brief would be to create success stories, and to replicate them for the implementation of the “soft & hard” factors of the Delhi master plan MPD 2021.

I entered the realty industry on a promise, in 2005, when I came back from U.S.. As someone with a prolonged stint in the corporate world, I was always impressed with the numbers, esp. the size of the market, the employment & innovation opportunities, the healthy growth rate, the pent-up demand and the investment opportunities.

However, the last 5 years haven’t been exactly as it was planned, both personally, as much as for the industry. When the Industry was on a roll, it resisted regulation of any sort, as was wont. The common wisdom as typical American – “why fix something when it isn’t broke”. (though America boasts of one of the best regulated Real estate Industry).WHY SO???

Let us compare the Telecom Industry, which is comparatively younger in India. Within the last 20 years or so, the Industry has grown multi-fold by increasing consumption, offering cutting edge products and services, as well as has a singular authority regulating the Industry and setting benchmarks for the future.

The very mission of TRAI announces: “The mission of Telecom Regulatory Authority of India (TRAI) is to ensure that the interests of consumers are protected and at the same time to nurture conditions for growth of telecommunications, broadcasting and cable services in a manner and at a pace which will enable India to play a leading role in the emerging global information society”.

Cut to the real estate industry : The real estate Industry is functioning under no singular guidelines, respective states and organizations carry forward the business as it “presumes” good for the Aam-aadmi, the Aam-Aadmi is still hoping for salvation, there are no benchmarks and set standards, and most of all, an industry forecasted to grow to almost 100 billion dollars in size, seems headed in multifarious directions.

Critics, players of the Industry and part of the political class argue that the appointment of a regulator is not the solution. Per them, the diversity of the country, the fragmented polity, the governance of different states by different political parties etc. demands a much more localised governance and that one unifying body would be akin to creating a ‘toothless’ tiger. But sir(s), can we create a single starting point? Can we have one direction wherein we can all head to? Can we adapt to tried, tested, best practices already enforced elsewhere in the world? Can the same India be any different in the realty industry compared to the IT, Telecom, services industry? Can we have a level playing field for all existing as well as intending players? Can we try and Possibly, vested interest and the lack of a coercive will is the biggest reason. The Mango people (aam-aadmi) deserve to remain a fruit to be milked of their juices, in the eyes of the policy maker. How come that we have certain norms in “A” industry, and can’t be enforced in the Real estate Industry? A clear indication that the Industry is not unified, and that the policy makers have a “VALID” reason not to enforce a singular norm across the country / Industry.

The unfortunate direct loser of this apathy is the consumer; followed by the Industry @ large, which seems myopic in intent.

No better time than today to enforce this… bring in a regulator for the real estate industry in India. The benefits would run across the spectrum. The central government would miss the chance to string all the states, either by conviction, or coercion, if not availed now.

The 100 day agenda of the Ministry of Urban development released vide the press release on the 29^th June’09 mentions this :

Point # 16          Real Estate Regulator for Delhi — Real Estate Management (Regulation & Control) Bill for NCT of Delhi will be taken up for decision.

If Delhi is serious, and rolls out a credible implementation plan, that would be the precursor of the regulator pan-India.

It is time we seriously considered “Consumer interest”, rather than keep trying to paint the Donkey to look like the Zebra.

The author is Ajay Dabas Founding Partner of Certes Realty Ltd. & the views expressed by him are of his own.

During the first four months of the current calendar year, a few questions were oft repeated during most of the meetings & seminars that we attended.  Most of them obviously had a reference to the revival of the realty sector, and the promises, unfulfilled and yet to be made, by the scrupulous as the not so well meaning.

a)    Are we headed to a hung parliament?

b)    If a government is formed with majority, would the agenda be any different for the incoming urban development & housing ministries?

c)    Would it impact the real estate prices in Delhi NCR?

d)    How soon do we expect changes, if any?

The first question was answered by the resounding win by the congress. We finally had a stable government which “promised to deliver differently”.

Mr. Jaipal Reddy being sworn in as the urban development minister was an indication towards the government’s intent of continuity and speed. Ms. Selja’s appointment as the minister for Housing & poverty alleviation was another ‘leg-up’ for the change in positive attitude.

Everyone was keen to know on the constitution / functioning of the ministry, the agenda and the foreseeable results. We too have been anxious to know the logical direction of the Delhi master plan 2021, as we believe that would be the singular factor to drive down the already increased and unsustainable pricing prevalent in the NCR region.

We huddled together in the first week of July’09 to analyze the prevalent & likely trends, price points, ground level realities, administration – political & bureaucratic, and most of all, the first 100 days agenda of the ministry of urban development, as well as the Ministry of Housing & Poverty alleviation, which would be a key indicator for the strategic direction of the MPD 2021 (Delhi master plan).

We rummaged through a lot of reference materials, including transcripts of debates in the Parliament & Assembly, various notifications, draft master plans, the expert committees constituted for Lal Dora / others.

Here is the good news. The first 100 day agenda of the Ministry or Urban development.  Let me re-produce relevant portions of it, before we get down to the analysis of the same.

Press release — Monday, June 29th, 2009     18:52 Hrs

100 day agenda for action of Ministry of Urban development unveiled

Point # 15  Matters relating to the Delhi Master Plan 2021

“The Delhi Master Plan 2021 envisages involvement of private sector in the development of land and provision of infrastructure services as an improvement over the current scheme of large-scale development and acquisition of land entrusted to the Delhi Development Agency (DDA).  Focused efforts will be made to finalize the policy. Every effort will be made to finalize the Zonal Development Plans of Delhi”.

Our Observation: The draft master plan of Delhi 2021 was notified vide S.O no. 141 dated 07.02.2007 and published in the Gazette of India. Post that, there wasn’t much action on the ground level. Many an investors, developers and home buyers are waiting in the wings, money ready, to grab land parcels when the zonal & ward plans would be notified. This clear indication would definitely motivate them.

On the other hand, this news would be a major dampener for the real estate investment scenario of Gurgaon, Noida, Faridabad, Sonepat, Bhiwadi etc. Let us not forget that these markets (excepting Gurgaon to some extent) mushroomed since Delhi (read DDA) did not ensure that the supply was in any way commensurate to the demand. Delhi’s projected housing demand is in excess of 1 million homes.

Point # 16 Real Estate Regulator for Delhi

Real Estate Management (Regulation & Control) Bill for NCT of Delhi will be taken up for decision.

Our observation: A right step in the right direction, however, one needs to be too big an optimist to see this implemented in a hurry. Also, let’s not forget that real estate being a state subject; we won’t really see uniformity a la other sectors like Telecom (TRAI) etc.

However, we also referred to office order # o-17034/18/2009-H dated 19^th Feb’ 09 with the subject –“setting up of a committee to give a final shape to the model bill for regulation in real estate”.

Point # 17 Building up 65, 000 houses by the DDA in next four years

In order to meet acute shortage of houses for urban poor, economically weaker sections and lower income groups of city of Delhi, construction of about 40,000 houses will be taken up. Tender documents for construction of such houses have already been made ready with fast mode of construction adopting pre-fabricated technology. Here, about 10, 000 houses are phased to be completed every year from the year 2010 onwards.

In addition to above, about 10,000 houses for middle-income group will be taken up on the same technology of pre-fabricated construction in four years’ time in phases.

Apart from the above, about 15, 000 houses will be completed (ongoing projects) in various phases. These houses will be constructed on conventional technology and these will be available from the year 2009 to 2011.

Our observation: There seems to be a positive movement on the ground, with some projects already underway, esp. towards Bakkarwala etc. DDA already is in possession of land parcels which can reduce the timelines. That is another point of consideration when we deduce that the current pricing levels of NCR markets would see another round of correction, when the Delhi supplies are unveiled. Our deduction is that the entry level product pricing, for mid-end housing would be reduced to < 20 lakhs, compared to the 30+ today.

The notification of the Delhi master plan 2021 would be a precursor to many a systemic changes that we are likely to see in the India real estate industry. The draft policy of “land assembly.…..” vide order No.F.3 (53) 2003/MP and published on the DDA website vide letter no. CEO/EL.G/102 (14) / 2009 date 11.04.09 is a departure from earlier times. Let me refer to a couple of them to highlight the attitudinal shift.

- MPD 2021 acknowledges that with the necessity for creation of infrastructure to support growth of the city at this scale, the present policy of large scale development and acquisition and its relevance in the present context needs a thorough relook. Also to involve the private sector in the assembly and development of land and provisions of infrastructure services.

-  It is necessary to review and reconsider the current scheme of large scale land acquisition, development and disposal by DDA.

- Guiding principles 4.1 page 03 – Govt. / DDA to act as a facilitator with minimum intervention to facilitate integrated planned development.

- Page 07 – clause 9.1 – FAR permissible on the gross residential use in the assembled pockets – 200 ( higher than Gurgaon which is @ 175)

- FAR to be earmarked for the EWS component over & above the FAR of 200: 30 (15%)

The notification of Delhi master plan 2021, and its integration with the other agencies & watchdogs of culture, heritage etc. is extremely critical owing to the many national & international events and schedules in Delhi, over the next few years.

The intentions expressed by the various arms of the government over the past few months are indeed encouraging, and, we feel vindicated over our stand and effort invested over the past few years.

“We wait, to involve, and develop, aspirations of Delhi-ites”.

The author, Ruchika Bhardwaj, is an associate of Certes Realty Limited, a realty investment advisory organization focussed on the Delhi & Gurgaon master plans 2021. She can be contacted on ruchika@certesrealty.com.

However, the views expressed are of the author, and no claims whatsoever are being made through the observations.

Haryana has entered into a deal with real estate developers to provide affordable housing and is inviting expressions of interest for building 8,000 flats in NCR areas in the state. In a move expected to give a big push to the housing sector in Gurgaon and Faridabad, the Haryana Housing Board is in the process of inviting expressions of interest for building 8,000 flats in these cities and some other places in the national capital region areas. This is in addition to the 38,000 housing units, majority of them in NCR, planned in the next two years.

Under the latest project, the state will enter into an agreement with real estate developers to provide affordable housing to middle and lower middle class under the public private partnership mode.

‘‘Since we do not have land in Faridabad and Gurgaon, we will be joining hands with private colonizers whose projects have been stuck due to the (economic) slowdown. We’ll prefer those who have the licence, and then those who have enough land,’’ said S P Gupta, chief administrator of the housing board. The announcement follows chief minister Bhupinder Singh Hooda’s assurance to developers that steps will be taken to counter the slump in the real estate market. It will also fulfil his commitment of providing cheap housing to locals, especially those in NCR cities of Gurgaon and Faridabad. Among the other areas selected for the project are Bawal (in Rewari district close to Gurgaon), Badhi (Sonepat) and Karnal. Officials claim that around 828 units would come up at Badhi, a township to the north of Delhi.

Analyst’s Opinion:

* There would be Supply of approx. 50,000 acres of R– Zone developable/ urbanizable land in Delhi. Hence more land available for development.

* Land prices in Delhi even today is 60% lower than Gurgaon, it means lower FSI cost.

* Development norms in Delhi are likely to be more simplified.

* Quality of construction is likely to be better in Delhi.

* Haryana Government likely to construct houses in Price range of Rs 20– 25 Lacs.

Above points indicates that, If Delhi prices are x, Gurgaon prices has to be x-20% (20% lower than Delhi) .