Ahmedabad’s First IT SEZ to be Fully Operational in March 2011

The 3rd Eye Voice IT SEZ, city’s first IT/ITES special economic zone (SEZ), is all set to become operational in March 2011. Already around 100 small companies functioning from different locations under Software Technology Park of India (STPI) scheme are planning to shift into the upcoming Rs 550 crore project. Another two city-based companies, Elitecore Technologies Limited and Hi-Tech Outsourcing Services are also moving part of their existing business into the SEZ.
“3rd Eye is developing 36 lakh sq-ft infrastructure near Science City. Of the 10 buildings designed inside the SEZ, construction work of two towers is almost completed, where companies will start moving from March next year,” said Bipin Shah, director of 3rd Eye SEZ. The company is also planning a 50-storey (200m) tower, which will be the tallest building of Gujarat inside any IT SEZ in India. Design of the proposed tower is ready, but implementation will depend on certain approvals from state and central governments, added Shah.
“We are in the process of acquiring 70,000 sq ft space in the SEZ and investing Rs 100 crore for new software product development,” said Rakesh Mistry, chief finance officer, Elitecore. Bhanu Gupta, director of Hi-Tech said his company will purchase 35,000 sq ft space. Uttam Patel, who is representing a consortium of around 100 small IT companies associated with STPI said that since subsidy on exports and benefits under STPI schemes will expire in October, his group was looking for 3 to 5 lakh sq ft space.
This article is taken from- http://www.indianrealtynews.com/real-estate-india/ahmedabad%E2%80%99s-first-it-sez-to-be-fully-operational-in-march-2011.html

Investing in Indian Real Estate

ndian Real Estate: "Undeniably tremendous!"
And, that is the undeniable verdict of a Price Waterhouse Coopers study conducted on the investment environment in terms of Indian real estate. Ever since the Government of India gave its stamp of approval to 100% foreign direct investment (FDI) in housing and real estate, NRIs, overseas real estate developers, hoteliers, and others have been tracking a path to the sub-continent. Sensing the business potential for developing serviced plots, constructing residential / commercial complexes, business centres / offices, mini-townships, investments in infrastructure facilities e.g. roads, bridges, manufacture of building materials, etc., FDI is flooding in to take advantage of the tremendous real estate opportunities.
Indian Real Estate: Growing Potential
The increasing demand for Indian real estate has not only generated employment, it has also been instrumental in the growth of steel, cement, bricks and other related industries. Estimated to be in the region of US $12-billion, real estate development in India is growing by as much as 30% each year. Already, eighty percent of Indian real estate has been developed for residential space, and 20% comprises of shopping malls, office space, hospitals and hotels. Fuelled largely due to off-shoring / outsourcing of BPOs, call centres, high-end technology consulting and software development and programming firms, real estate growth in India has great investment prospectives.
Indian Real Estate: Investment Opportunities
Tax reform measures in the last few years have ensured real estate in India is one of the most productive investment sectors, with money invested in real estate offering regular returns on investment including appreciating in value. And, the Government of India by opening up 100% foreign direct investment, and fiscal reforms like stamp duty and property tax reductions, setting up real estate mutual funds has turned real estate into a promising investment option.
lready, it has approved the first Rs. 100-crore FDI project in Gurgaon. With urban populations expected to grow from 290-million to 600-million by 2021, housing requirements are expected to top 68-million by 2021, which means India's urban housing sector could do with an investment of US $25-billion over a 5-year period. Poised for rapid urbanisation, 3 out of 10 of the world's largest cities are in India. An influx of jobs due to off-shoring / outsourcing has resulted in rising disposable incomes, increased consumerism, factors responsible for changing the face of residential and commercial real estate in India.
Wishing to take advantage of real estate investment opportunities, banks and housing finance companies are falling over themselves to tie-up with developers or offer project loans at competitive rates.
Indian Real Estate: Foreign Direct Investment (FDI)
Recent government policies have seen to it that inbound FDI for housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure, no longer requires prior government approval, with the exception of the Reserve Bank of India (RBI). It is important that all inward remittances or issues of shares to NRIs are reported to RBI within 30-days, and all FDI in the above areas is subject to the following conditions:
Minimum area for development under each project is as under: Serviced housing plots, minimum requirement of 10 hectares. Construction-development projects, minimum built-up area requirement of 50,000 sq. metres. Combination project, either of the above two conditions suffices. Investment is further subject to the following conditions: Minimum capital investment = US$10 million for a wholly owned subsidiary, and US$5 million for joint ventures with Indian partners. Further, the funds have to be brought in within six months of commencing business.
It is not permissible to repatriate original investment before a period of three years from the date of minimum capital investment. However, if the investor gets prior approval from the Government through FIPB, early exit is permitted.
Fifty percent of the project is to be completed within 5-years from the date of obtaining all legal clearances. No undeveloped plots can be sold where roads, street lighting, water supply, drainage, sewerage and other conveniences are not available. Serviced housing plots can only be sold if the investor has provided infrastructure and obtained a completion certificate from the concerned local body / service agency.
Development has to be in accordance with town master plans, planning norms, standards, and local bye-laws.
The investor is responsible for obtaining all necessary approvals, including building / layout plans, internal / external / peripheral area development, infrastructure facilities, payment for development and other charges. All development has to be in compliance with State Government / Municipal / Local Body requirements that are prescribed under applicable rules / bye-laws / regulations. Further, Non Resident Indians (NRIs) are allowed investment under the Automatic Route of FDI in the following Housing and Real Estate Sector:
Services plot development and construction of built-up residential premises.
Real estate investment covering construction of residential / commercial premises including business centres, offices, etc. Development of townships.
City / regional level urban infrastructure facilities, including roads and bridges.
Investment in manufacture of building materials. Investment in participatory ventures in (i) to (v) above
Investment in housing finance institutions.
Permissible FDI private / joint / state investment in construction in the export processing zones (EPZS) / special economic zones (SEZS) is as follows:

100% FDI real estate investment within Special Economic Zone (SEZ). 100% FDI for developing a township within the SEZ i.e. residential areas, markets, playgrounds, clubs, recreation centres etc.
Standard Design Factory (SDF) building development in existing Special Economic Zones. SEZ land may be leased or sub-leased to developers as per relevant guidelines for this purpose.
Full freedom to allocate developed plots to approved SEZ units on commercial basis including competent authorities for provision of water, electricity, security, restaurants, recreation centres etc. along commercial lines.
As you read this, a wide spectrum of changes are and have taken place in Indian real estate. Various proposed reforms e.g. removal of tenancy laws, computerization of land records, correction in taxation structure etc., are ensuring India emerges as a favoured and profitable destination for real estate developers / investors, both domestic and international.
This article is taken from- http://www.sharemarketbasics.com/Stockarticles/Real-estate-india-Investment.htm

Foreign stake in Indian companies rises in September quarter

NEW DELHI: The role of foreign investors in the Indian capital market is gaining significant momentum, as foreign stake in Indian companies has shown a sharp upturn in the quarter ended September 30, which saw net inflows of $12 billion.
According to an analysis of BSE500 companies for the July-September quarter, the market share of foreign investors including foreign institutional investors (FIIs), American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), has risen at the cost of domestic mutual funds.
For the September quarter, the market share of FIIs , ADRs and GDRs taken together in BSE500 has risen to 17.8 per cent, while domestic mutual funds' percentage of the total pie has declined to 3.76 per cent, even as the insurance share remained flat at 5.25 per cent, Religare Capital Markets said in a recent report.
"Foreigners are pumping in money into Indian shores, because of the resilience of the Indian economy. Just after the crisis we have bounced back quite sharply, as against the developed economies," Ashika Brokers Research Head Paras Bothra said.
The capital inflow of a whopping $12.5 billion got reflected in the uptrend in the Bombay Stock Exchange benchmark index, Sensex, which jumped over 14 per cent and on the foreign investor ownership, which rose to 17.8 per cent from 16.6 per cent over the April-June quarter.
Bothra however added: "Indian policymakers need to understand that capital inflows are going to be very strong and they should judiciously manage capital inflows. The kind of liquidity flow that we are witnessing that is going to have an impact on our currency value."
The foreign investor ownership showed the highest quarterly rise in nearly three years after December 2007.
"The overall value of the FII portfolio also leaped 27 per cent to $267 billion by September this year, as against $210 billion in June, and has now crossed its earlier peak of $264 billion in December 2007," the report added.
On the back of high foreign capital inflows, redemption pressures continued for domestic mutual funds and their overall market share in the BSE500 companies declined to 3.76 per cent. The insurance share remained flat for the third consecutive quarter.
A sectorwise analysis shows that most of the foreign capital found its way into the financials sector, while telecom and consumer staples saw interest from domestic institutions.
Meanwhile, energy and IT stood out as an under-owned sector across all institutional investor groups
This article is taken from- http://economictimes.indiatimes.com/markets/stocks/market-news/Foreign-stake-in-Indian-companies-rises-in-September-quarter/articleshow/6894674.cms

You may soon check legal status of land

MUMBAI: Property buyers dreading the antecedents of the land they are planning to buy have reason to rejoice. If the Bombay high court has its way, property records will have to carry additional information on whether the plots are under litigation.
A division bench of Justice B H Marlapalle and Justice U D Salvi has recommended that legal liabilities of a land find mention in the 7/12 extracts (property records).
TOI in its edition dated October 21, 2010 had reported about the high court dismissing a petition challenging the decision of the Nashik collector to start including details of the legal disputes of land in the 7/ 12 extracts.
“We suggest that all the district collectors in Maharashtra issue such circulars,” the judges have now advised.
The court said that the intention was to alert property buyers as well as government officials.
“It is intended to ensure that the pendency of the suit with respect to the properties sought to be transferred by any means is brought on record, while effecting an entry in the 7/12 and other rights extracts,” said the high court.
The judges added that the Nashik collector’s decision did not put any restriction on the transfer of properties under litigation. “It is intended only to alert the revenue officers and particularly those who are responsible for mutating the revenue entries regarding the rights of the parties.”
The court was hearing a petition filed by a Nashik resident who had challenged the local collector’s circular to revenue authorities to reflect pendency of court cases in the property records. The petitioner’s lawyers claimed that the decision had placed “unreasonable restrictions and caused prejudice” to his rights to dispose of the suit property.
The government’s lawyer Molina Thakur countered this argument by saying that the the ultimate objective of the circular was to safeguard the rights of the public. “When a buyer of a property puts in his hard-earned money to purchase a piece of land, he should be made aware whether the land is involved in litigation,” said the advocate. The court agreed with the government’s contention.
However, it remains to be seen if the government accepts the high court’s suggestion. Consumer activists have welcomed the order, saying that property buyers would be able to verify readily from the records if the land they are planning to buy has any legal encumbrances. 
This article is taken from- http://economictimes.indiatimes.com/markets/real-estate/realty-trends/You-may-soon-check-legal-status-of-land/articleshow/6886321.cms