Ernst and Young on TDR , Mihan < Nagpur

The project affected people (PAP) of Multimodal International Hub Airport at Nagpur (MIHAN) would not get much monetary benefit from selling of Transferable Development Right (TDR) as claimed by the Maharashtra Airport Development Company (MADC) and supporters of MIHAN. The PAP will get maximum price of Rs 250 per sq ft by selling TDR in Nagpur city. And outside Nagpur, there is no demand for TDR.

Renowned consulting firm M/s Ernst and Young in its concept paper on TDR for MIHAN notified area plainly stated that there will be excess supply of TDR as against demand in Nagpur. The company stated that in the year 2014, the total demand of TDR in the city will be 53 million sq ft while the supply will be 61 million sq ft. Even this demand figures have been calculated on the basis of ideal situation and moderate realty boom. These figures stated that TDR would not be beneficial for the project affected farmers and people of the MIHAN, as sought to be claimed by those portraying TDR as panacea for MIHAN PAPs .

It may be mentioned that MIHAN supporters have worked out formula for PAP that Maharashtra Government will allow TDR in place of compensation so that they can get more money in lieu of paltry compensation for lands acquired for the ambitious project. In its report it was mentioned that Nagpur Municipal Corporation (NMC) has divided city into three TDR zones. The total TDR issued in Nagpur Market is around 34,881 sq mt out of which 14,800 sq mt have been utilised in Zone B mostly in the areas lying between Amravati road, the inner ring road and Wardha road. The city is still having 20,000 sq mt (roughly 2 lakh sq ft) unutilised TDR easily available in the real estate market. If in the current market situation 20,000 sq mt TDR is unutilised than what will be the position when market will be flooded with TDR generated from MIHAN ?. experts asked. In the past three years, the prices of TDR have gone up from Rs 150 per sq ft to Rs 2,000 per sq ft. Some TDR transactions in third quarter of 2008, have even fetched between Rs 3,000 to 3,500 per sq. ft. The transacted value for agricultural land acquisition had varied in the range of Rs 60 to 70 per sq ft. This low price was prevalent due to bulk land acquisition. The consultants have pegged the feasible price for the sale of TDR at less than Rs 250 per sq ft (assuming a FSI of 1).

The company in its concept paper stated that Nagpur market sees a negligible supply of non-IT office space of approximately one lakh sq ft in 2009. It is estimated that there is likely to be a demand of about 1.63 million sq ft by 2011 in this category. This indicates that there could be demand of TDR in non-IT office segment. The other category that could witness a market for TDR is retail segment where a demand supply gap of approximately 4.29 million sq ft can be seen by the year 2011. Company while analysing present market situation, stated that global slowdown indicates that Nagpur market is pre-mature, when it comes to the utilisation of TDR originating from MIHAN. The company suggested a need for consolidated planning of infrastructure in the TDR receiving zones. Policy interventions will be required to facilitate inter-jurisdictional transfers of TDR, the TDR programmes may require a dedicated body to administer the programme and involves additional cost for implementation, an appropriate phasing mechanism is needed to be worked out to avoid an over supply situation in the market, the report claimed.

Mihan is in progress amid election

Major political parties and its leaders do not seem unduly worried about two reports prepared by separate entities pitching in for New 
Delhi as the most suitable site for an international air cargo hub. They believe that this development would in no way clash with the interests of Multi-Modal International Hub Airport at Nagpur (Mihan) for which heavy infrastructure building work is in progress here.

Even the industry bodies and the Maharashtra Airport Development Company (MADC), which is building Mihan jointly with the Airport Authority of India AAI), are confident that the Nagpur hub is now here to stay as it has already been given all necessary clearances by the government. About such infrastructure projects, more the merrier is the refrain of all the players. A special committee of the Planning Commission has prepared a report suggesting that New Delhi would be best suited for an international air hub. Consultants Ernst and Young have also given a similar report to the AAI.

“There is no question of Mihan not materialising. We have secured all necessary approvals and investors have committed to set up business at Mihan. What is unique about Mihan is that it is the only cargo and passenger hub airport with a special economic zone (SEZ) attached, said city MP Vilas Muttemwar. “The previous UPA government gave its nod to Mihan only after it was convinced that Nagpur in the heart of the country has several advantages because of its central location. It would be wrong to say that Mihan will be doomed if another such hub comes up in Delhi.”

“If world class infrastructure facilities come up at Mihan, the business will be drawn to it. Like Mumbai which is saturated , Delhi also has logistics bottlenecks. A place like Nagpur from where cargo could be distributed all over the country faster because of its network of road, rail and air connections would be preferred by the business houses. Only those unaware of its benefits would say it is not feasible,” said Muttemwar.

Moreover, he opined that with Indian economy destined to grow in coming days there will be scope for setting up of cargo hubs at several locations across the country. Mihan would be naturally used by those whose cargo is to be moved in central India.

State BJP president Nitin Gadkari, a big supporter of Mihan right from its conception, was also not surprised by the Planning Commission report. “There is no problem. If another hub comes up at Delhi, Mihan will not suffer. Mihan will come up here though global slowdown has hit the pace,” said Gadkari. He has been holding public presentations to spread awareness on how Mihan will open floodgates to prosperity in the industrially backward Vidarbha region which is more in news of late for the spate of suicides among distressed cotton cultivators.

Ramesh Yaul, general manager, MADC, said Delhi being the capital of the country has always been a better option for such activities. However, considering the location and the facilities being offered at Mihan, Nagpur can come up as a successful model too. There can always be a number of such hubs, for instance in Europe there are such facilities in every 200-400 kilometres.

Vilas Kale, president of Vidarbha Economic Development Council said Nagpur would always have an advantage on account of its geographical location. Moreover, it is the government’s mandate to have a balanced development of all the regions. As a result projects like Mihan should be developed to provide an economic boost.

 

Source: TOI

2 billion Euro Solar Panel project moved away from Nagpur

In a major embarrassment for the supporters of Vavasi Group which had planed whopping Rs 50,000 crore investment in Nagpur, Industries Minister Narayan Rane on Monday categorically stated that no concrete proposal was ever received from the Group about its mind-boggling investment at Nagpur.

Leader of Opposition Ramdas Kadam blamed the Democratic Front Government for neglecting proposal of Vavasi Group and forcing the Group divert its investment of Rs 50,000 crore to Rajasthan. The issue figured during the Question Hour. Making some plain speaking, Rane stated, during early talks, Vavasi Group was offered land at Butibori, but the Group demanded 5000 acres for its Renewable Energy Park at the five star Butibori Industrial Estate to manufacture silicon solar panels and other apparatus. Besides, it had also claimed that Al-Bukhari would invest Euro 6 billion in the process of setting up mono crystalline growing facility having a capacity of 20,000 metric tonnes on 400 hectare land. Since this much land was not available with MIDC, alternate land was offered, but the company never submitted its concrete proposal for the alternate land or complete project details.

The promoter of Vavasi Group, Farid Arifuddin had claimed that he had roped in Al-Bukhari, a Malaysian group, which claimed to have expertise in developing airports as a strategic partner in developing the Special Economic Zone (SEZ) for solar energy. Besides Farid had also promised to bring Russian jet manufacturer Sukhoi Company with a whopping investment of Euro 2 billion (Rs 13,600 crore) for manufacturing about 25 to 50 super jets initially and later 100 aircraft at full capacity. The company had also agreed to construct a world-class Airport along with rehabilitation of project affected person. However, the MADC which is handling the MIHAN-SEZ, the project was nothing but a figment of imagination and MADC Vice-Chairman and Managing Director R C Sinha had turned down such a worthless venture. The Group had demanded 700 acre land at negotiated price, but steadfastly refused to disclose planned use of such a huge land. When the Group was asked to make an application and submit documents explaining source of finance, copy of agreement with Sukhoi, expertise in solar energy, experience in construction of airport, it simply vanished into thin air, causing acute embarrassment to its vocal supporters. The Vavasi Group Chief later surfaced before the Nagpur media, a month before the general election and claimed that he had shifted the project to Rajasthan. But on Monday, Industries Minister Narayan Rane made the record straight, by refuting the tall claims made by supporters of this incredible venture.

Nagpur: Tax and Development

Municipal Commissioner Assem Gupta has proposed to allocate 50 per cent income of the Property Tax to the respective ward committee so that they can develop their area.

Aseem Gupta while talking to mediapersons on Monday, will table this proposal in the meeting of Chairpersons of Ward Committees and Assistant Commissioners slated on Wednesday. In that meeting, they will discuss on various proposals of ward chairpersons and their rights. Gupta has given administrative and technical approval power to Assistant Commissioner. Now, the transfer of employees within particular zone, sanction of leave also delegate to them so that they can easily control over the working of zones, he opined.

Gupta said, Ward committees will take decision regarding repairs, cleaning of nullah, maintenance of road and other emergency work but they will not have power to call tenders. He has delegated power to issue licence, birth and death certificate, assessment of properties to Assistant Commissioners. They will also look after assessment of properties. Outsourcing of maintenance Municipal Commissioner has proposed to give maintenance work to various project management consultants (PMC) firms. He has constituted PMC panel for maintenance works. The PMC will maintain NMC’s building, below 18 mt roads and gardens. The proposal has sent to Standing Committee for approval.

MADC, Nagpur lists in Dubai Airport Expo.

WITH that the much-awaited transfer of Nagpur airport being over, the Maharashtra Airport Development Company (MADC) Ltd. is now looking for the best bargains to complete the gigantic task of building and operating a truly world-class airport at Nagpur. No wonder, MADC was one of the most sought after client at the Airport Expo held in Dubai from May 19 to 21.

The ‘airport show’, dubbed as one of the largest airport construction, operations, technology and services events in the world, showcased over 500 suppliers from 41 countries, it was learnt. Talking to The Hitavada about the event, Vice Chairman andManaging Director (VC and MD) of MADC R C Sinha said that the show was sponsored by the Government of United Arab Emirates (UAE) in which MADC was invited

“We talked to about 70 to 80 vendors regarding our requirements at various airports including Dr Ambedkar International Airport at Nagpur. The best part is that we now know exactly what we can get where,” said Sinha. As MADC is also involved in planning and development of international airports at Shirdi, and Pune and regional airports at Solapur, Amravati, Jalgaon, Gadchiroli, Phaltan and Karad, it would require various equipment’s and machinery for the same, said Sinha. Elaborating on the shopping list for these airports, Sinha said that they would require material handling equipment, cargo systems and equipment’s, sorting systems and automation, aerobridge installations, baggage handling systems, runway lighting systems, visual docking guidance systems, automatic weighing systems, communication towers, indicators, staircases, etc. “These are necessary equipment’s to build and operate airports. Naturally, we will also needed numerous suppliers and consultants for our ongoing projects in Maharashtra for which we were scouting and we are satisfied with the results post Dubai,” said Sinha. “We talked to suppliers and manufacturers of these equipment’s required for running and operating the airport and have also called for their quotations,” said Sinha. The purchases made will not be only for Nagpur airport but for other airports developed by MADC as well, clarified Sinha. Till date about 1600 acres of land has been sold to various companies in the Multi Modal International Passenger and Cargo Hub Airport at Nagpur (MIHAN) being developed by MADC. Notable among them are DLF, Satyam, Ascendas, Wipro, TCS, HCL, Land T, etc. Some of them have already begun their work while some are following a wait and watch policy.

Removal of Electric Poles may cost huge

There is something to cheer for the local people as General Body of Nagpur Municipal Corporation (NMC) has passed the proposal to remove the electric poles and Distribution Boxes (DBs) standing tall on the roads and creating severe problems to the vehicular traffic and posing a great threat to the life of local citizens.

This decision was taken in the special meeting held on Friday afternoon at Raje Raghojirao Bhonsle Nagar Bhavan, Mahal. Total 13 proposals including three old and 10 new proposals were placed in the meeting. Of total 10 new proposals, seven were passed while two were reserved for the consent of Mayor and one for Hearing Committee. The three old proposals were kept unheard.

The proposal to remove Maharashtra State Electricity Distribution Company Limited’s electric poles and DBs standing tall on roads was among the seven proposals passed by the General Body. With the consent of General Body, NMC will raise funds of Rs 100 crore. The work will be done immediately as per the directives of High Court. NMC will pay Rs 15 crore per year for the debt of Rs 100 crore. The other six proposals passed by the General Body include to change the reservation of seven acres land located in Jaitala for crematorium and send the proposal for the approval of State Government, to demolish the lavatory located in the ground in front of Siddharth Library in Ward no-52, to change the reservation of Dispensary and Maternity Home to residential purpose on 0.5760 hectare land located in Parsodi, to constitute selection committee for taking personal interview for the 10 posts of Food Inspectors under Health Department, to promote 18 persons for the post of Junior Health Inspectors as per the Promotion Committee report (with couple of corrections) and to demolish the dilapidated building of NMC Marathi Primary School located in Ward no-70, Mahal. The two proposals that have been reserved for the consent of Mayor include Divisional Committee Report on Abdul Nazir Khan, Assistant Teacher, Tajbag Urdu Primary School, to freeze his pension and recruitment of four family members of deceased NMC employees as per their educational qualification. The one proposal that has been reserved for the consent of Hearing Committee include Divisional Committee Report to dismiss P B Gosh, Malaria Worker, Malaria Department.

The three old proposals that were unheard include to increase the rates of Yeshwant Stadium ground, to develop the roads with the help of local citizens, and to develop NMC owned roads. It may be mentioned here that, the special meeting that started about three hours late from scheduled time came to an end in meager 10 minutes. There were no discussions on the proposals and Mayor Maya Iwnate read the proposals as passed. Visnupad Bute, Additional Municipal Commissioner, Kishor Kumeriya, Deputy Mayor and other office bearers and officials of NMC were present. Aseem Gupta, Municipal Commissioner, who is on Mumbai tour was not present in the meeting.

Metro development plan, Nagpur included

The Ministry of Urban Development (MoUD), Government of India, has suggested that the Metropolitan Area Planning Committee (MAPC) should prepare a draft development plan for metropolitan areas.

Dr M Ramachandran, Secretary of Ministry of Urban Development, in a letter to the Chief Secretary of Maharashtra, stated that the MAPC should co-ordinate with plans prepared by municipal councils and Panchayats in the metro area including co-ordinated spatial planning of the area.

It may be mentioned here that as per the Constitution 74th Amendment Act, 1992, Maharashtra Government has constituted MAPC for Nagpur, Mumbai and Pune districts. Ramachandran suggested that the MAPC should co-ordinate and sort out common issues involving Panchayats and municipal councils in the metro areas including sharing of water and other physical and natural resources. He suggested allocation of resources made available by the State and Central governments to local level institutions. It should be phasing and prioritising development works involving number of Panchayats or urban areas. The committee would advise and assist local bodies in preparation of development plans and serving as a link to disseminate development objectives, policies and priorities of Central and State governments among various local bodies by formulation of operational guidelines so that the same may be considered while preparing plans of respective local bodies. He suggested that the committee should resolve conflicts and avoid areas of overlapping between different agencies operating in metro areas. The meeting of MAPC may be held at least once in every quarter of the financial year. The committee may invite experts to attend its meeting.

It may be added, in Nagpur, MAPC was constituted last year but not a single meeting of the committee was held during the year. Chief Minister is the chairperson of the committee and he has no time to conduct even first meeting of Nagpur MAPC. Ramachandran stated that as per the Constitution 74th Amendment Act, 1992, there is a mandatory provision for constitution of Metropolitan Planning Committee in all metropolitan areas by State governments. As per the Constitution Amendment Act, metropolitan area means an area having a population of ten lakh or more comprised in one or more districts and consisting of two or more municipalities or Panchayats or other contiguous areas specified and notified by the State Government to be a metropolitan area for this purpose. According to 2001 Census, there are 35 metropolitan cities having a population of ten lakh and above spread over 15 states and Union territories. The Ministry of Urban Development is the nodal ministry to oversee implementation of the Constitution 74th Amendment Act in the states and Union territories. Although 17 years have passed by since the Act was enacted, only West Bengal and Maharashtra have constituted Metropolitan Area Planning Committees, while two states namely Andhra Pradesh and Gujarat have enacted enabling legislation to constitute MAPCs. Other States having metropolitan cities are yet to take any action in this regard.

He said, metropolitan areas, having 38 per cent of the urban population, are the engines of economic growth in the country. They are generally composed of several local bodies comprising municipal corporations, municipalities, nagar panchayats and rural areas as well. Development Authorities created in these metropolitan areas are not in a position to bring all stakeholders on a single platform. He said, MAPC for metropolitan areas will play an important role as an inter-governmental, inter-organisational, politically representative forum. Under the JNNURM also, implementation of decentralisation measures as envisaged in the Constitution 74th Amendment Act is one of the mandatory reforms which among others include constitution and setting up of the MAPC in metropolitan areas. It has specified constitution of the MAPC for every metropolitan area consisting of 45 members to prepare draft development plan for the metropolitan area as a whole. Ramachandran suggested that the MAPC should also have representatives of Government of India particularly from Ministry of Urban Development, Ministry of Housing and Urban Poverty Alleviation, Ministry of Railways, Ministry of Surface Transport, Ministry of Telecommunication and others.

New traffic Signal in Nagpur

Nagpur Municipal Corporation (NMC) has established a dedicated Urban Transport Fund of Rs 25 crore on the directions of Urban Development Department of Central Government. NMC will install new traffic signals and construct foot over bridges.

Central Government has sanctioned funds for purchasing 300 buses under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The Central Government has released the first instalment for purchasing buses. Meanwhile, Central Government has directed all mission cities to set up dedicated Urban Transport Fund (UTF) at city level in accordance with which Municipal Commissioner Aseem Gupta also proposed the same in his budget presented to the Standing Committee. Now, Standing Committee will take decision on his proposal.

The fund will generate income of Rs 4.5 crore from Motor Vehicle tax, Rs 10,000 from accident claims, Rs 75 lakh from Pay and Park scheme and Bicycle Stands, Rs 20,000 from rickshaw tax, Rs 10 lakh from encroachment removal, Rs 10 crore from advertisement rights, Rs 60,000 from other advertisement fees, Rs 80 lakh from stocking of building materials, Rs 5 crore from city bus services and advertisements, and Rs 3.57 crore from road-marking reserved funds. NMC will thus generate Rs 25 crore from various sources. Municipal Commissioner has proposed expenditure of Rs 24 crore on various works like Rs 30 lakh on traffic signal controls and blinkers maintenance, Rs 50 lakh on channeliser and road-divider repairs, Rs 10 lakh on Mass Rapid Transport System and Bus Rapid Transport System, Rs 50 lakh on Children’s Traffic Park, Rs 2.50 crore on widening of square, Rs 2.5 crore on square development project, Rs 2 crore on traffic development, Rs 3.5 crore on installation of new traffic signals and controllers, Rs 2 crore on improvement of parking system, Rs 2 crore on signage system control, Rs 3.85 crore on area traffic control system and CCTV installation and Rs 4 crore on construction of foot over bridges.

Sources informed that Nagpur city has around 310 kms of road and 250 squares. The number of accidents are increasing on these roads and the civic body is taking various measures to control these accidents. Urban Development Department has suggested NMC to prepare parking policy wherein parking fee represents true value of the land occupied, which is used to make public transport more attractive, banning of parking on arterial and ring roads, multi-level parking centres in City Centres with park-and-ride facility etc. It has also suggested to set up a Traffic Information Management Control Centre for effective monitoring and enforcement of traffic as well as data-generation and data-collection for future planning.

Minister from the region again: Development no STOP

A day after taking oath for the second term in the UPA government, aviation minister Praful Patel has assured the people of Vidarbha, 
especially Nagpur, that the Mihan project will get his full attention. Patel arrived here on Friday morning from New Delhi and wasted no time as he left for home turf of Bhandara-Gondia to meet electorate who were generous enough this time to elect him with a record margin of over 2.5 lakh votes.

Asked by reporters if he had any priorities for Vidarbha and Nagpur, Patel said the development of the region was always close to his heart . “I have never flinched in doing my bit for the region. Mihan has my full support and I did everything possible to promote it. Now, I will work closely with Mukul Wasnik (Ramtek MP and social welfare and empowerment minister),” he said. “With the global as well as the local economies reeling under slowdown, there are some hurdles in the way. But we will make efforts for early completion and success of the Mihan project,” he asserted.

About his goals in the second innings in aviation ministry, Patel said the challenges before the sector were immense. “But in these difficult times, we are confident of manoeuvring our way through every crisis,” said Patel. “Prime minister Manmohan Singh has given his ministers immense responsibility by chalking out a 100-day economic development plan. The aviation sector will also contribute in it,” said Patel. “My immediate priorities will be to complete the tasks left unfinished in the previous tenure. We will work with renewed speed now,” the aviation minister added.

CRISIL say Nagpur needs nearly 1Billion $ for City development

Infrastructure Advisory Wing of Credit Rating Information Services India Limited (CRISIL), a leading rating company, has given more thrust on capital investment creating basic amenities like sewerage, storm water distribution, roads and transport in its revised City Investment Plan (CIP) of Nagpur. CRISIL has submitted the revised CIP worth Rs 4,000 crore to Nagpur Municipal Corporation (NMC) recently.

It may be mentioned that NMC had earlier identified a total investment of Rs 5,894 crore for development of the city by 2012. The civic body has commissioned preparation of a city development plan (CDP) in 2006 under Central Government-sponsored Jawaharlal Nehru National Urban Renewal Mission (JNNURM). In the CDP, NMC had given thrust on road and transport sectors while less attention was paid on sewage and storm water distribution. Sources informed that more than 70 per cent of the investments proposed under CIP are dedicated to sectors of Mass Rapid Transport System (MRTS) and traffic management, development of slums, roads and bridges while 10 per cent on water and 8.7 per cent on sewerage system. NMC had proposed Rs 590 crore for water supply and distribution, Rs 515 crore for sewerage, Rs 246 crore for storm water distribution, Rs 50 crore for solid waste management, Rs 1,600 crore for development of slums, Rs 250 crore for water recycling and reuse, Rs 1,000 crore for roads and bridges, Rs 1,500 crore for MRTS and traffic management and Rs 15 crore for social amenities in earlier plan. NMC had submitted 26 proposals of which 17 projects have been approved by Central Steering and Monitoring Committee (CSMC) of JNNURM. NMC has received approval for projects of Rs 900 crore under JNNURM.

NMC has to share Rs 270 crore for these projects while rest of the amount is contributed by Central and State Governments. Sources claimed that CRISIL has suggested to curtail present cost of total capital investment from Rs 5,894 crore to Rs 4,000 crore by 2021 in the revised CIP. However, the investment required and being made towards meeting the demands of water sector have not been considered in identifying the total investment requirements. CRISIL has suggested total investment of Rs 800 crore in sewage, Rs 1,000 crore in storm water distribution, Rs 35 crore on solid waste management, Rs 2,000 crore on roads and transport, Rs 5 crore on slum development and Rs 200 crore on providing social amenities The maximum part of the road and transport sector has recommended to specific projects to the tune of Rs 2,000 crore. Of this, Rs 1,500 crore will be spent on projects taken up on public private partnership (PPP) basis. The consultant has recommended 20 per cent on sewerage, 25 per cent on storm water drain, 1 per cent on solid waste management, 50 per cent on roads and transport and remaining on slum and social amenities. Sources confirmed that CRISIL suggestion will be discussed in general body and after consent of general body it will be submitted to State Government and thereafter to Central Government.

Summary of revised CIP Sector Investment ——————————————————— Sewerage Rs 800 crore Storm Water Drain Rs 1,000 crore Solid Waste Management Rs 35 crore Roads and Transport Rs 2,000 crore Slum Development Rs 5 crore Social amenities Rs 200 crore Summary of the previous CIP ——————————————————— Sector Investment ——————————————————— Water Supply Rs 590 crore Sewerage Rs 515 crore Storm Water Drain Rs 246 crore Solid Waste Management Rs 50 crore Slum Development Rs 1,500 crore Water Reuse Rs 250 crore Roads and Bridges Rs 1,000 crore MRTS and Traffic Rs 1,500 crore Social amenities Rs 15 crore

Disparity in Nagpur

Chunabhatti ward is a locality presenting a blend of slum and developed areas. Old Ajni locality of the ward is around 300 years old but still far away from development.

Food Corporation of India (FCI) godown is located in this ward. This is one of the prime localities along Wardha Road. First term corporator Laxmi Munna Yadav of Bharatiya Janata Party (BJP) is trying hard for overall development of the ward. Chunabhatti, Ambika Nagar, Old Ajni, East and West Samarth Nagar, Sahakarya Nagar, Rajeev Nagar, Navjeevan Colony, Priyanka Wadi, Rahul Nagar, Gajanan Nagar, Kanfade Nagar, Hindustan Colony, Ajni Square and Prashant Nagar are prominent localities of this ward. Water supply is satisfactory in her ward, said Laxmi Yadav and stated that roads are also in good condition. The ward is having many open grounds which may be developed as play grounds in the near future. She has constructed a compound wall to the open ground in East Samarth Nagar while she is developing a basketball ground at Prashant Nagar. She is trying to save these open spaces from encroachment. She is constructing a jogging track and a play ground at Hindustan Colony. Yadav has asphalted roads of Pragati Colony, Hindustan Colony, Samarth Nagar and Navjeevan Colony. NMC has constructed safety walls along the nullah that flows from Ajni to Narendra Nagar-Chhatrapati Square. Ahead of monsoon, she has ensured that the nullah is properly cleaned by NMC. Yadav has demanded NMC to start a Hindi medium school in the building of East Samarth Nagar Civic School. Presently, the Marathi school is closed due to scant strength of students. The building is idle and vacant for the last two years. However, her proposal for a Hindi medium school did not attract the officials of Education Department. Laxmi Yadav has provided home-to-home drinking water connection in slum locality. She has provided toilet blocks in 400 houses of slum-dwellers. She has constructed cement roads and community hall at Navjeevan Colony. NMC has erected street lights worth Rs 5 lakh in Navjeevan Colony, Prashant Nagar and Samarth Nagar. Yadav demanded NMC to construct development plan road between Irrigation colony square to Juni Ajni Square. High Court directed to make alternate arrangement of slum-dwellers that could be displaced due to construction of this road. If this road is constructed, it will provide direct access from Irrigation Colony to Narendra Nagar under bridge. She alleged that in the last five years, the civic body has failed to make alternative arrangement for slum-dwellers. Slum-dwellers were against the flat scheme provided under Basic Services to Urban Poor (BSUP), Yadav said.

Singapore Company bids for Gorewada Zoo

Forest Department received the much-awaited final master plan for the ambitious Gorewada Zoo of international standard from Barnard Harrison and Friends Company of Singapore and it submitted to the State Government for its approval this week.

The master plan has given details of the programmes to be taken up in four phases on 1885 hectares of forest land at Gorewada situated on the outskirts of the city. This international standard zoo would prove to be a major attraction for citizens and tourists after completion. The zoo includes development of zoo, bio-park, night safari, African safari, breeding centre, educational centre, walking trails, interpretation centre, rescue centre etc. Wild animals such as tigers, lions, leopards, crocodiles, herbivores and attractive birds would be kept in enclosures and open area with moats. Some area would be left for buffer purpose. Reliable sources informed that the total project would involve a cost of Rs. 725 crores. The actual work of this project would be taken up after green signal by the State Government. There could be a possibility of the government making any modification, if it feels so. The estimates for different works would then be prepared for taking up the project. It may be mentioned here that the Forest Department had floated tenders in 2007 but the Finance Department had raised certain objections about bidding process. Therefore, the department had to float the tenders afresh that consumed much time for making the formalities complete. Barnard Harrison and Friends Company of Singapore, an internationally known consultants for zoos and safaris, was finally selected as the consultants for the purpose. The firm had submitted a draft plan for the master plan in November last to the department which discussed and suggested certain modifications. The firm included modifications and prepared the final master plan. The concept of having an international standard zoo at Nagpur was floated by Forest Minister Babanrao Pachpute during 2004 winter session of Maharashtra Legislature at Nagpur and State Government had earmarked Rs. One crore for preparation of basic blue print. The top political leaders and forest officials had also toured several international zoos before finalising the plan. In its last year the Democratic Front government is expected to give a fresh impetus to Gorewada zoo project.

100 MW Power plant in MADC zone

The Maharashtra Airport Development Company (MADC) will increase its captive power plant capacity from 100 MW to 120 MW (2X60). Sources informed that the Ministry of Environment and Forest has given its nod for environmental clearance to extend its present capacity. Abhijeet Infra Private Limited of Abhijeet Group is setting up this power plant.

The 100 MW captive power plant is coming up at Khairi Khurd village at Hingna Tehsil of Nagpur District. The Ministry had granted environmental clearance to set up 100 MW capacity power plant on September 2008. The MADC has requested to change its capacity up to 120 MW recently. The proposal was accepted by the Committee. MADC stated that they will not require additional land for the Project. The coal quantity will also remain the same. However, they will be using better quality of coal in terms of its calorific value. The water requirement will increase from 11.92 mld to 14.43 mld, which will be met from the existing allocation of 16 mld for the project. It may be recalled that MADC has proposed to set up a 200 MW (4 X 50 MW) coal based Power Plant within Multi-modal International Hub Airport at Nagpur and Special Economic Zone (MIHAN, SEZ) with a provision of 25 MW back up diesel generator sets as start-up power for the main unit and for emergency use. The Power Plant will cover an area of about 60 Hectares. However, the MADC had got permission to set-up 100 mw captive power plant at MIHAN-SEZ area. This power plant will provide an uninterrupted quality power supply to the units in the SEZ area at a competitive rate. The power plant project is being established on Build, Own and Transfer (BOT) basis on Public-Private Partnership (PPP) principle. The project involves setting up a power plant, transmission lines and also operating the distribution network for supply of power to the consumers in the MIHAN Area. The Project would be developed on a PPP basis by Abhijeet Group jointly with MADC.

Service tax 18 Million $ in Nagpur

Addition of newer services in the network of Service Tax has yielded good results to the Government. In Nagpur Zone, the collection of revenue from Service Tax has jumped 12.47 per cent or Rs 90 crore.

Customs, Central Excise, and Service Tax, Commissionerate, Nagpur Zone has collected Rs 819.88 crore of Service Tax revenue in 2008-2009 as against Rs 728.99 crore mopped in 2007-2008.

The Nagpur Zone covers three Commissionerates — Nagpur, Nasik and Aurangabad. In the financial year 2008-2009, Nagpur collected Rs 384.40 crore which was Rs 338.76 crore in the year ago period showing an appreciation of Rs 45.64 crore (13.47 per cent). Nasik mopped Rs 2,09.19 crore in 2008-2009 against Rs 193.21 crore collected in 2007-2008, showing a rise of Rs 15.98 crore (8.27 per cent). Likewise, in 2008-2009, Aurangabad collected Rs 226.29 crore as compared to Rs 197.02 crore collected in 2007-2008, showing an increase of Rs 29.27 crore (14.86 per cent).

In Nagpur Commissionerate, there are 18,763 assessees who are entitled to pay Service Tax. K L Bablani, Chief Commissioner, Nagpur Zone, said that there are several assessees whose head offices are situated out of Nagpur Zone due to which their figures are not been reflected in the collection. He said that the department was continously monitoring the trends in market and conducting survey so that no one can evade from paying the tax. In Nagpur Commissionerate there are top 10 services like transport of goods by road availed by 2,254 assessees who had contributed Rs 41.58 crore during the year 2008-2009. In banking and other financial services, there are 1861 taxpayers who shell out Rs 26.13 crore. Businesss auxillary services and maintenance, management services contributed Rs 23.10 crore (1709 assessees) and Rs 22.07 crore (1708 assessees) respectively. There are 107 services that fall under the ambit of Service Tax.

Service Tax is a form of indirect tax imposed on specified services called “taxable services.” Service Tax cannot be levied on any service which is not included in the list of taxable services. Over the past few years, Service Tax been expanded to cover new services. The objective behind levying Service Tax is to reduce the degree of intensity of taxation on manufacturing and trade without forcing the Government to compromise on the revenue needs. The intention of the government is to gradually increase the list of taxable services until most services fall within the scope of Service Tax. For the purpose of levying service tax, the value of any taxable service should be the gross amount charged by the service provider for the service rendered by him. Service Tax was first brought into force with effect from July 1, 1994. All service providers in India, except those in the state of Jammu and Kashmir, are required to pay a Service Tax in India. Initially only three services were brought under the net of service tax and the tax rate was 5 per cent. Gradually more services came under the ambit of Service Tax. The rate of tax was increased from 5 per cent to 8 per cent w.e.f May 14, 2003. From September 10, 2004 the rate of Service Tax was enhanced to 10 per cent from per cent. Besides this 2 per cent education cess on the amount of Service Tax was also introduced. In the Union Budget of India for the year 2006-2007, service tax was increased from 10 per cent to 12 per cent. On February 24, 2009 in order to give relief to the industry reeling under the impact of economic recession, The rate of Service Tax was reduced from 12 per cent to 10 per cent.

Request for Fast Track Court in Cargo Hub

In a significant development, the Maharashtra Government has requested the Bombay High Court to constitute two fast track courts to take up land acquisition compensation enhancement cases of Shivangaon and other villages affected by Cargo Hub project.

A letter to this effect has been sent by Maharashtra Government to Bombay High Court due to relentless follow-up by West Nagpur MLA Devendra Fadnavis. Fadnavis had repeatedly raised the issue of raw deal meted to Cargo affected farmers and had utilised all parliamentary tools to get a fair and just compensation to them. During the process, Fadnavis pointed out that very often the land award is challenged in the civil court by aggrieved farmers for enhancement of compensation and due to delay the matter remains pending for quite a long time.

This often creates resentment amongst project affected farmers whose lands are taken at a paltry sum for public utility work. Therefore Fadnavis had asked the Maharashtra Government to set up dedicated fast-track courts at Nagpur to exclusively deal with land compensation matters. During Winter Session of Maharashtra Legislature held at Nagpur, the Chief Minister Ashok Chavan had promised to constitute fast track courts in consultation with the High Court. Fadnavis repeatedly sent reminders to Government and vigorously pursued the matter at the highest level which ultimately forced the Government to make a formal request to High Court. This will help in early settlement of cases of enhancement compensation filed by farmers from Shivangaon and other Cargo affected villages, Fadnavis hoped.

Mihan: High court overules objections

Disposing of around 19 writ petitions overruling the objections of petitioner-land-owners against acquisition of their lands for the MIHAN project under section 126 of the Maharashtra Regional Town Planning Act, 1966, Justice Dilip Sinha and Justice Ashok Bhangale, at the High Court here, have held that Section 11-A of the Land Acquisition Act, 1894, which provides for passing of the award within two years from the date of publication of notification for acquisition, is not applicable to the acquisition of land for MIHAN, in view of the Supreme Court verdict in the Case – State of Maharashtra vs Sant Joginder Singh – 1995 Supp (2) SCC Page 475.

The award was passed on June 20, 2008.

The Court has held that the provisions of section 11-A inserted through Amendment Act 68 of 1984 is not applicable to the proceedings for acquisition of land for MIHAN under the MRTP Act. The court has held that pendency of reference before larger bench of the Supreme Court about the Apex Court decisions in Girnar-I and Girnar-II cases, does not affect in any manner the binding nature of the law declared by the Supreme Court in the Joginder Singh’s case. Further the Supreme Court’s decisions in the NIT case and the MSRTC case do not enlarge the scope of these judgements to make Joginder Singh judgement applicable to land acquisition cases in respect of MIHAN.

Advocate Sunil Manohar appeared for the one of the petitioners in these cases. Additional GP Bharati Dangre represented the State Senior Counsel M G Bhangde represented the N A D C. Accepting the request of the lawyers appearing in these cases, the Court has agreed to continue status quo in these cases for two weeks more. Advocate A A Naik, A S Manohar, P N Kothari, Anand Parchure, S P Kshirsagar, G R Agrawal and other lawyers represented the parties in other petitions.

MADC-AAI and Private players a JV for Mihan

Urban Development Department Secretary Manu Kumar Srivastava has been appointed as new Director of Joint Venture Company (JVC) of Maharashtra Airport Development Company and Airport Authority of India (AAI) formed to manage the ambitious Multimodal International Hub Airport at Nagpur (MIHAN). He is one of the Director amongst five of the new JV company.

The new board of directors will manage future growth and development of the MIHAN. The process of forming the first JVC is in progress and the company is all set to get registration in the name of MIHAN India Private Limited.

MADC will nominate three directors and AAI will appoint two directors on the new company. R C Sinha, Vice Chairman and Managing Director of MADC and Manu Kumar Srivastava have been nominated as directors of the new company from MADC while AAI is yet to finalise their directors. Sources informed that after registration of new company, the board of directors will elect its Chairman, however, it seems that R C Sinha is likely to be elected as first Chairman of the company. Sources confirmed that this would be the additional responsibility to Srivastava. Presently, he is working as Secretary, Urban Development Department looking after functioning of Urban Local Bodies and special projects and will continue to be so.

Sources informed that after formation of new Joint Venture, the company will select new partner through international bidding process for the development of the Nagpur Airport and MIHAN. The new JVC and private player will again form second JVC. In second JVC, the AAI will have stake of existing Nagpur airport while MADC has around 2,000 hectares of land, the third partner- private player, will invest money for the development of Airport and MIHAN. According to cabinet decision, in the proposed second JVC, private player will have 74 per cent stake while MADC-AAI will have 26 per cent equity.

Besa road complains water shrotage

The residents of Besa-Beltarodi region adjoining Wardha Road, are in a lurch as Government and planners seems to have simply forgotten about the New Nagpur project.

The promises of a well planned city is now turning out to be a pipe dream as ground realities is giving nightmares to citizens in the area. Citizens talking to The Hitavada said Besa-Beltarodi is caught in a political divide. Though the Gram Panchayat’s income has raised almost four fold and run into crores, the citizens are deprived of basic facilities. As new colonies are coming-up the scared water, citizens are dependent on well and tube wells, are fast running out of stock.

At the peak summer time, the residents are in a fix as the wells have dried-up. Getting even drinking water is a herculean task, said Chandraprakash Menkudale, Special Executive Magistrate. Menkudale who resides in Jagananath Nagar, one of the well planned locality, has listed out plethora of problems which has besieged the so called New Nagpur. About wells, he said many of them have reached 50 feet deep but still there is no water. Menkudale has stated that Besa-Beltardo Gat Gram Panchayat is simply collecting revenue which is now risen to crores thanks to upcoming new colonies and mini townships. But the Gram Panchayat has not able to provide roads, water, drainage system, health care system. During the April month, the water supply from tanker was available for just few days, that too at interval of four to five days, giving sleepless nights to residents. In absence of water everything comes to standstill. There are two nullahs in the Besa region but they are filled with filth that has affected the water flow. This has spread stench in the adjoining colonies and even polluted the ground water sources in many wells. Though submissions were made to Sarpanch and Kamptee MLA, no permanent mode of water supply through pipelines has been worked out yet.

Boeing may start MRO work in July’09

The construction work of Rs 5,000 crore (1 b$) investment project, Maintenance, Repair and Overhaul (MRO) facility of Boeing proposed in Multimodal International Hub Airport at Nagpur (MIHAN) will commence from third quarter of this year. Economic meltdown or other factors will not push the project back, informed Dr Dinesh Keskar, President, Boeing India.

Speaking to the mediapersons after being honoured with Vocational Excellence Award 2008-09 instituted by President’s Enclave, an organisation of 16 Rotary Clubs of Nagpur, Dr Keskar stated, economic meltdown is hitting America, Japan and other countries very hard. But India is in a safe position. Boeing, too, is safe and will start the construction work at Nagpur in the 3rd quarter of this year. Boeing will have 50 acres of land in MIHAN. On this land, two hangars (aircraft shelter) each measuring one lakh square feet will be constructed. Besides, the administrative building measuring 2,79,864 square feet consisting offices, billing sections will be constructed, said Dr Keskar. Though runway is already available in Nagpur, Boeing is expecting to get three assurances including taxi-way, adequate water supply and power as this MRO will play a vital role as per commitment to Air India. At this MRO, Boeing will deal with latest 787 and other aircrafts including 777 and 737 models with Air India. Dr Keskar admitted that there is a delay in delivering 68 aircraft to Air India. The flight test report of 787 model aircraft is awaited, he said. When asked whether Boeing has acquired 50 acres of land, Dr Keskar refused to comment on this issue terming it as commercial.

French Consul General offers ‘sister city’ status to Nagpur

 For the first time, Nagpur may become ‘sister city’ of a foreign nation and may receive liberal contribution from the developed country to ensure development at par with international city. During his visit to city on Tuesday, Francois Pujolas, Consul General of France in Mumbai and Head of Economic Mission, France, has expressed interest in this novel arrangement with Nagpur Municipal Corporation (NMC).

Pujolas visited NMC and met with Aseem Gupta, Municipal Commissioner. He took detailed information from Gupta about the various projects done or underway by NMC. Commissioner informed him about various projects of NMC including Bhandewadi Sewage Treatment Plant, waste water supply agreement with thermal power stations, proposed thermal power station, 24×7 water supply scheme, Jawaharlal Nehru National Urban Renewal Mission (JNNURM) projects, education, health and other projects. Aseem Gupta talking to The Hitavada informed that Pujolas expressed his interest to enter into ‘sister city’ concept with NMC considering the similar geographic conditions. He also showed keen interest for this concept. If this concept materialises between France and NMC, there will be exchange of ideas, concepts, schemes, plans and possible avenues of co-operation in field of infrastructure, education and culture. Besides, the officers and office bearers of NMC may go to France to study about their novel plans and ideas or the officers of France may come here for the same. It is a good concept of development and many cities of India are having such concept with Foreign nations, informed Gupta. Pujolas also paid a visit to office of Mayor Maya Iwnate where he also met Anil Sole, Ruling Party Leader and Krishna Khopde, Standing Committee Chairman. Corporators Baba Maind, Prakash Totwani, Kailash Chute, Habibur Rehman Ansari, Sudhakar Kohale, Vinayatai Fadnavis and Sanjay Jaiswal were also present. Pujolas had an informal interaction with Anil Sole about the political scenario of Nagpur. He asked about the political parties and candidates for Lok Sabha. He also obtained information about the public representatives in Nagpur. Pujolas is Consul General of France in Mumbai and looks after four states including Maharashtra, Madhya Pradesh, Rajasthan and Goa. He will meet a France national working on some project in local Museum of State Archaeological Department.

Nagpur-Mumbai Highway possibility

Empty coffers, state government’s reluctance to pay its Rs 160 crore share, and general economic slowdown are forcing Maharashtra State Road 
Development Corporation (MSRDC), state’s infrastructure arm, to privatise the construction and operations of its ambitious 700 km two-lane Nagpur (Butibori) – Ghoti (Mumbai) highway.

Satish Gavai, managing director of MSRDC told TOI that the private party to be selected this month would not only build the remaining half of the road but would also pay against the expenses already incurred on over 550 kms of the road already built by the MSRDC through private loans. “It will benefit us as the government will have to shell out comparatively less amount for the Rs 900 crore project,” he added.

According to chief engineer J T Nashikkar, the tender for privatisation of the highway would be opened by the month-end and the agency that quotes minimum period for recovering the cost through toll would be selected. Besides toll, the agency to be selected would get 15 plots along the highway for commercial exploitation, revealed Gavai.

The road would be handed over to the private operator on build-operate-transfer (BOT) basis for a minimum 30 years.

The half-built road is slowly becoming popular among regular travelers.

It has so far earned a revenue of nearly Rs 20 crore through toll since last year by attracting over 35% traffic from the old Mumbai and Nagpur road. The new road cuts distance between the two cities by 60 kilometres and the travel time by nearly one-and-half hours.

MSRDC’s Nagpur region chief engineer Sadashiv Mane said another reason for the road’s popularity was that it touches or passes close to several tourist and religious destinations like world famous Lonar crater, Gurumandir of Karanja, Jijabai memorial at Sindkhedraja, Sai temple at Shirdi, Nevasa of legendary Marathi Sant Dnyaneshwar, and Shani Shingnapur, besides the world famous caves of Ajanta and Ellora.

Dhananjay Dhawad, chief engineer of MSRDC’s Aurangabad region, said of the total 700 km road, work on 570 kilometres patch, mainly including 431 km stretch from Nagpur to Sindkhedraja, was complete.

The remaining 269 kilometres patch between Jalna and Ghoti (that falls between Nasik and Thane on Nasik-Mumbai highway) is yet to be finished except a small stretch between Puntambe near Vaijapur and Sinnar.

A railway-over-bridge and a bypasses near Ghoti and Sinnar are also yet to be built, Dhawad said.

 

Source:  TOI

Mihan work starts again

The siege on Mihan may be finally lifted on Monday after the work on the site was stalled by project affected persons (PAPs) for one 
complete week. The PAPs leader, BJP MLA Chandrashekhar Bawankule, said that he had received a letter signed by minister of state for relief and rehabilitation Rana Jagjitsinh Patil accepting their demands. The letter gives a final seal to the three-point package announced by the chief minister on the floor of the house.

Ashok Chavan had said the PAPs will be allowed to choose between developed land in proportion of the 12.5% of the land acquired, transferable development rights (TDRs), or an ex-gratia payment. The letter also says that the rehabilitation package will be prepared on the lines of the state’s rehabilitation policy and a fast track court will be established for settling cases demanding compensation according to the market rates.

However, even as Bawankule says that he now has a written word from the government, the MLA insisted that he would end the strike only if any of the ministers visits the agitating villagers and gives them an assurance. Patil may meet the villagers on Monday evening. The strike would continue if none turns up, he said.

Meanwhile, senior officials of Maharashtra Airport Development Company (MADC), say that they have lost 700 man hours during the strike. As some of the contractors stopped paying the wages, some of the workers had fled the site too.

 

Source: TOI

MADC worries over MIHAN

Local residents again stopped work at the Multimodal International Hub at Nagpur (Mihan) to press for their land being acquired for the project.

The contractors executing work at the sites alleged that the villagers were stopping the work forcibly. They said closure would lead to tremendous losses, especially at a time when the realty sector was already hit by a slowdown.

Even though there is no work, workers still have to be paid their wages, or else they may go away. “This is really taxing us,” said a contractor. Last year, when the villagers stopped work, the workers had also fled the sites and it took almost a week to mobilise them.

The sites affected by the strike include IJM’s First City, Neco Group’s captive power plant, DLF, MADC’s central facility building, Afcons’ flyover and Shapurji Pallonji’s Infocity apart from other agencies setting up the infrastructure.

All put together, there are around 5,000 workers in all the sites, MADC alone would suffer a loss of Rs 60 lakh a day if work remains shut, this is apart from the loss the investors would incur, said a senior Mihan officer.

ACCOR in MIHAN?

Though investors may be going slow, Maharashtra Airport Development Company building city’s ambitious Mihan seems to be going full speed 
ahead with developing infrastructure there.

MADC is in the process of finalising a deal with Europe’s biggest hotel chain— Accor— for setting up three and four star hotels within the SEZ.

Besides 50 other companies in the process of investing in Mihan, Accor is negotiating a land deal with Mihan to set up the hotels.

City Development and We

In the last 10 years, Nagpur has witnessed fast development, changing life style and rising standards in living. With the growing demand for commercial and office space, residential areas, growth in retail, the city has become the core axis of economic growth. Interestingly, the projects like MIHAN and Special Economic Zone (SEZ) have fuelled the rates of land in the outskirts of city. Particularly, the stretch of 40 km land from Hudkeshwar to Wardha Road is neck-to-neck with other metros as far as rates being quoted are concerned. In these boom times, an estimated 10,000 acres of land has changed hands from an investment point of view. Of them, 50 per cent are local and remaining are outsiders from cities like Mumbai, Raipur, Delhi, Kolkata and even people from overseas like Dubai. The rates of land are almost touching the roof by clocking an appreciation of 200 per cent in the last 5 years.

“Nagpur is getting cluttered with commercial offices, hotels, malls, multiplexes and townships making it one of the most vibrant cities in the country,” said Jayant Dalvi, President of Vidarbha Land Developers Association. As the city is growing at a faster pace with development taking place in MIHAN, the population is bound to swell in times to come. “If you see Wardha Road today, you will find lot of activity taking place altering the equation of land rates,” he said. Presently, the investment in land was safer as compared to stock market and gold. “Stock market is unpredictable, although the rates of gold have inched up but there is more appreciation in the rates of land,” he pointed out. For developers, MIHAN may be the only USP for selling land but Dalvi said there were other things like setting up of newer educational institutes, increase in air connectivity and growth of IT sector. These cannot be neglected, he said and added that in times to come, there would not just be vertical growth but horizontal growth too. In such situation, Nagpur would not be able to provide accommodation to its burgeoning population. People have to look beyond the horizon if they want to make the city vibrant, he said. Dalvi said that the local administration that had broached new norms for developers on clearance of new layouts should not be so rigid. The local administration excluding some areas has said that those layouts which have proximity of 500 metres to the gaothan (village) would be given clearance. “Clearance should also be given to the adjacent layouts too as it would hinder the infrastructure development,” he pointed out. The new norms framed by the District Collector that developers for new layouts should first provide basic amenities like tar roads, assurance of 24-hour water and electric supply, drainage etc. was a welcome step. “We welcome the new proposal with open arms as it will boost the confidence of investors,” he said. Dalvi suggested that people before investing their hard-earned money should first get their doubts cleared by taking the help of well-known consultants. “One should not stand in line because others are standing. They should see why people are standing and then think twice before opening their purses to pour money into the project,” he suggested. He said that the New Metro Region map designed by the Nagpur Municipal Corporation should be immediately given green signal by the State Government as it would change the skyline of the city at a faster pace. New projects would come up creating a large scope for job opportunities and take vertical growth to newer heights. l

Bad news for Nagpur lease holders

Nazul land holders, the species, which constitute bulk of the land owners in Vidarbha region, should at once check their old lease-deeds. Because a recent judgement of far-reaching impact delivered by Nagpur bench of Bombay High Court has upheld the validity of a Government Resolution dated June 19, 2007, seeking to charge unearned income at the rate of 20 per cent for residential leases and 25 per cent for commercial leases.

However much to the respite of Nazul land holders, the High Court unequivocally held that till such time legislature authorises the government, the Revenue Department can not recover the unearned income from Nazul land holders whose lease-deeds had specifically prohibited any change in lease conditions. “The demand of unearned income is essentially related to the difference between the premium paid by the grantee/allottee at the time of original allotment and the market value of the plot at the time of proposed transfer. That is a price to be paid towards the entire bundle of rights held by the State Government in the land as landlord and enabling the grantee/lessee only to transfer his remaining rights which were enjoyed by him or her under the grant/lease. It is well established position that the Government is the real owner of the land. If the original grant/lease is not exempted from revenue, the Legislature of the State has power to direct levy of revenue on all lands under whatever title they may be held whenever and so long as the exigencies of the State may render such levy necessary. That power is vested in the Legislature. If the Legislature were to enact law on that subject, the Authority could legitimately exercise the power to levy revenue such as unearned income on all lands under whatever title which may include even lands held by occupants – Class-I, if the law so permits,” the High Court observed. Ordinarily, unearned income would mean income from investment rather than from labour. It is the difference between the premium paid and the market value of the lease plot at the time of sale. Nevertheless, in law, it is a land revenue recoverable from the grantee/lessee by the State Government if the law enacted on the subject or the terms of lease or grant so permits. Though it may appear that the State Government would share income of the grantee; but in substance, it is the price to be paid for approving the transfer of the land by the grantee/lessee to third party and recognising the right so transferred to enable the transferee to enjoy the Government property in question. The State remains the owner of the land and the right enjoyed by the grantee/lessee is a limited right granted under the Grant and not the entire bundle of rights of the State Government who is the real owner thereof. The High Court ruling has also rejected the argument that State Government had never demanded unearned income during last 100 years to recognise transfer effected by the original grantee. “For the time being, we may safely proceed on the basis that as of now, there is no legislation enacted by the State Legislature which would govern the field of power to levy unearned income. Indeed, the statutory rules framed under the MLRC, there is no corresponding provision enabling the State Government to claim or levy unearned income in respect of grant of land for Agricultural use under Part III or residential use under Part IV of the said Rules.” In other words, the State Government as of now has no authority to levy unearned income in respect of lands in question under whatever title, which would obviously include lands held by occupants-Class I. In absence of a specific law on this subject, the State Government or its Officers cannot usurp to itself power to levy such charges on the basis of a Government Resolution. That power to levy unearned income can be invested in the State Government only if the State Legislature expressly or by implication authorises it to do so and not otherwise. By no means such power can be usurped by an Executive fiat in the form of a Government Resolution. Insofar as grant of land for commercial and industrial purposes, there is express provision in the Rule 31(2)(c) enabling the State Government to claim half the unearned income where the land is sold without any construction, the High Court held. About ground rent, the High Court found no infirmity in decision of State Government to revise the rates based on market realities and devaluation of currency and held that revision in annual lease rent at the time of renewal of the lease cannot be said to be addition of new condition as such. The only limitation on the State Government would be to revise the lease rent on fair and just basis. The High Court while noting the principle expounded by the Apex Court in both the decisions of Mangalmurti’s case pointed out that the State Government has introduced the Government Resolution dated June 19, 2007 on this subject after due deliberation. The formula based on expert committee report for determining the annual lease rent is that of amount equal to the prime lending rate only on the 20% of existing market value of the land. In other words, if the prevailing prime lending rate is 10% and the existing market value of the land is around Rs.One Lakh, the Annual lease rent would be around Rs.2000/-(i.e. 10% of Rs.20,000/-). That would be only about 2% of the prevailing market value of the property. This formula attempts to factorise the inflation cost, cost of administration and escalation impact. This basis will be uniformly applied to all leases in the State. Though the nominal lease rent paid so far by Nazul land holders will be a thing of past, the High Court stated “One cannot be oblivious of the degeneration of Rupee value over the years. In our opinion, the State Government has taken a policy decision to recover fair uniform returns in relation to the Government property throughout the State which amount would factorise the inflation cost, cost of administration and escalation impact.” Ostensibly, it may appear that the formula adopted by the State Government is a complete departure from the modality of fixation of annual rent in the past. But that has been necessitated in larger public interest both for deriving realistic and fair return on the Government property and also to bring in uniformity and simplification of procedure for computation and levy of such charges. The larger public interest reckoned by the State Government in relation to regulation and control of the Government property shall necessarily prevail over the private interest of the Petitioners. Just and equitable does not mean that the annual lease rent should be so structured that in the perception of the lessee the same is affordable to him; irrespective of the fact that such low rent may not be able to subsume the inflation cost, cost of administration and escalation impact. That would militate against the larger public interest and of economics of sustainable regulation and control of the Government property. The High Court also made it clear in absence of legislative backing, it is not open to the State Government to impose new conditions for the first time either during subsistence of the lease or at the time of renewal of the lease conditions which may be prejudicial to the grantee and inconsistent with the tenor of the original lease in absence of law on that subject or condition incorporated in the original lease in that behalf. The renewal of the lease necessarily should be on same terms and conditions as in the earlier lease except the change or revision in respect of Annual lease rent. In case of persons whose lease deed had not be renewed due to opposition of grantee or sheer laxity to renew the lease, the High Court had asked the competent authority to verify factual matrix on case to case basis keeping in the light of this judgement. However, in cases where renewal has been delayed because of insistence by the State Government to impose new condition and opposition of the lessees to accept those conditions, those matters will have to be considered independently keeping in mind the legal position. About regularisation of violation of terms and conditions of lease-deed, the High Court made it clear that Nazul lease holders who had violated the terms and conditions of the lease would suffer the consequence of such violation if the same was not to be regularised. The violation will have to be reckoned only in those cases which expressly provide for such restriction in the Lease Deed or by virtue of some statutory provision. That is a matter to be enquired into on case to case basis by the appropriate authority and such irregularity can be rectified on payment of specified unearned amount of the market value of the land as on the date of violation of the condition. About transfers of land after the resolution was issued, the High Court held regularisation charges proposed for violation of lease conditions are fair and just.

Sukhoi unit in Nagpur

Chief Minister Vilasrao Deshmukh promised to take up the issue of setting-up of Sukhoi’s civilian aircraft manufacturing unit at Nagpur during his visit to New Delhi on October 13.

Deshmukh said that during the visit, he will meet the officials. He, however, did not had details about them and refused to comment further. Interestingly, even the Union Civil Aviation Minister Praful Patel had pleaded total ignorance about any such development during his recent visit to Nagpur. Union Minister of State for New Energy Vilas Muttemwar had declared that Sukhoi was interested in setting their plant at Nagpur to manufacture 70 to 90 seater civilian aircraft at the cost of 2 billion Euro

Renewal of leases

Inaction and apathy on the part of Nagpur Improvement Trust (NIT) to renew the lease of over 7800 plots is causing loss of crores of rupees to the state exchequer as well as to the NIT. This was revealed in a Public Interest Litigation (PIL) filed by Parivartan Bahu-uddeshiya Sanstha through its Treasurer Adv. Raju Mehadia in the Nagpur Bench of the Bombay High Court.

The petitioner, a non governmental organisation, has claimed that the lease of 8333 plots owned by NIT has expired since long but the NIT has failed to renew them thus causing loss of administrative charges, stamp duty and registration charges. The total loss to NIT on account of administrative charges alone comes to about Rs 60 lakh, alleged the petition. The state government too has lost huge revenue on account of stamp duty and registration charges, claimed the petition. The petition further states that NIT is violating the Land Disposal Rules set by Urban Development Department, Govt. Of Maharashtra. As per the rules, NIT grants lease of 30, 60 and 99 years for residential and commercial purposes. Clause 3 of the Indenture of the Lease Deed states that the lessor (NIT) covenants that after expiry of lease period, the lease would be renewed as per the prevailing rules (rules say that the lessee shall apply for renewal within time period). Any breach of the terms entails the respondent to determine the lease and take possession of trust property under clause 14 of the Land Disposal Rules, 1983. Moreover, Clause 15 of the said rule also gives power of forfeiture of lease property and of re-entry to the NIT. Inspite of such wide powers and inspite of the fact that lease of some of its plots has expired some 20 to 30 years back, NIT is sitting silently over its assets worth crores, stated the petition. Further Clause 13 of the Lease Deed states that if the lessee does not comply with any of the requirement or conditions mentioned above, the lease of the plot may be cancelled by the trust or govt., as the case may be, the same may be disposed off in such manner as the trust or govt. may deem fit at the risk and cost of the lessee. Any loss caused to the Trust or Govt. whether on account of premium or ground rent or any other account in consequence of default made by the lessee shall be made good by him and the amount deposited by him shall be liable to be forfeited or appropriated by the government or by the Trust as the case may be towards such loss. The petitioner has further charged that NIT has failed in its duty to protect the public property. It has asked for a direction to respondent no. 1 – Urban Development Department to initiate departmental inquiry against the officers who are responsible for this inaction. The petition has also charged that the NIT trustees have failed to fulfill their obligatory duties. According to the petition, Section 10 (2),(3) and (16) provides for the meeting of the trustees. The trust should sit ordinarily in every month to dispose off the requisite matter in order to achieve the object and purpose of the Act. The Act also provides for the consequences in case of default in attending the meeting by the trustees. The petition has also prayed to direct the respondent no 1. to initiate inquiry against the board of trustees or a person who would be responsible for not taking appropriate action thereby causing loss to the public exchequer and enable to protect public property.

IPTV soon reality in Nagpur

INTERNET Protocol Television (IPTV), entertainment as per your choice and at your time, is all set to invade the homes of Nagpurians, courtesy Bharat Sanchar Nigam Limited (BSNL). Said Principal General Manager (PGM), M D Bhatia, the IPTV is a Dussera gift to our valued customers. Customers having hi-speed internet connections (Broadband) can avail the services to be marketed and provided by Maharashtra Knowledge Centre Limited (MKCL).

The local media were provided a preview of the IPTV at Itwari Telephone Exchange. Area Manager (East), Namratta Tiwari, was also present. Giving the highlight of new service, PGM said, with IPTV we are entering a digital age of entertainment and right now exchanges are being configured to ready for the mega launch. He said a customer will have to purchase the Set Top Box (STB) to avail IPTV which has currently 100 digital channels. The beauty of the service is provision of Time Shift, wherein one can hold transmission of any programme for a particular period of time, and restart it after completing the important chore. The current provision on part of service provider for Time Shift is 72-hours within which a particular programme can be viewed, so no worry of having missed a popular opera. The IPTV will no way affect hi-speed internet and telephone services which will be independently controlled by respective servers. From STB, only a three-way connection is provided and all three can function simultaneously. With the server of basic phone and IPTV independent, any line disturbance will not have effect on video status. Another feature is video on demand where customer can select from rich library the movie of their choice for which rates vary. The MKCL franchisee said that there will also be a provision of SMS and chatting, provided both the interactors have IPTV connection. Besides education services, gaming will also be there for subscribers. About tariff, Bhatia said it will be competitive and right now only Pune has IPTV services in Maharashtra Circle. The STB at Pune is priced at Rs. 3,950 plus monthly subscription of Rs. 150 onwards and will depend upon the package subscribed. The STB will also be available on rent, with security deposit of Rs. 1,500. In future, with launch of 3G services even Voice Over Internet Protocol (VoIP), means making calls to overseas as well as STD will also be possible and that too at a fraction of current cost. However, till the BSNL Corporate Board decides on VoIP policy, we will have to wait and watch, he said

‘NO’ to Sale deed on Wardha Road

District Collector Pravin Darade has directed Deputy General of Registration and Stamp Controller to stop all the sale deeds pertaining to 175 hectares of land, mostly at Wardha road of Nagpur District. Sources informed that thousands of sale deeds executed or in pipe-line on the basis of disputed Non Agricultural permission will be affected by the order.

It may be mentioned that 82 Non Agriculture permissions were issued by then officiating Assistant Director of Town Planning, Archana Parlewar between February 2 and March 13, 2007. Sources informed that during her tenure, around 800 non-agriculture cases have been cleared by the Town Planning department. However, Urban Development Department (UDD) has directed to stop sale deeds in only 82 cases sanctioned by Parlewar, who was placed under suspension and now posted at Gadchiroli as Town Planner. Following the expose by The Hitavada, land dealings at Wardha Road came to a standstill and land deal worth Rs. 1000 crore were in limbo. The State Government had already constituted a high-level inquiry committee headed by Divisional Commissioner Anand Limaye to examine correctness of NA orders issued by Town Planning department since the year 2001. The land market crashed like a pack of cards and had not recovered following damning revealations. Collector directed all the Deputy Registrars of Nagpur City, Nagpur Rural, Kamptee, Umrer, Saoner, Hingana not to entertain any sale deed of these NA orders. In almost all the cases, NA permissions were given following the ‘no objection certificates’ issued by Parlewar. According to sources, in majority of cases, the power of attorney holders (mostly big land developers) obtained the NA permissions on behalf of original land owners and most of them did a roaring land business during last two years. The district administration has prepared a list of the NA permissions issued through the District Collectorate and has submitted the same to the Government as per the orders. Notably, the Chief Minister had himself directed the district administration to prepare the list of NA permissions issued through the District Collectorate, Sub Divisional Office, and Tehsil Office during Parlewar’s controversial tenure. Of these three offices, the Sub Divisional Office and Tehsil Office are yet to prepare their final list and the list of 82 permission may jump by few hundred.