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.

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~ by nagpurestate on June 4, 2009.

13 Responses to “Ernst and Young on TDR , Mihan < Nagpur”

  1. Hello Friends,
    I hav TDR for Nagpur B zone measuring 110000Sq.Ft.If any one interested contact me on 9326753856

  2. 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 Rs 2,000 per sq have even fetched between Rs 3,000 to 3,500 per sq. ft. The transacted value for agricultural land acquisition had varied mob:+919823075368

  3. 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 450 per sq ft by selling TDR in Nagpur city. And outside Nagpur, there is no demand for TDR.mob : +919823075368

  4. hi

    i m raju

    i want c or b zone tdr please contact me on cell no 9673337990

  5. Thanks for the TDR information, its really very useful for me.

  6. i want b zone land land in nearest mihan so please conttact on my cell no 9326489520

  7. I ravi want detail’s of tdr of which zone is available for sale and charge detail for per sq.ft contact on my site my e-mail rsmgroup_111@yahoo.co.in and my cell no-09823075368

  8. I ravi want detail’s of tdr of which zone is available for sale and charge detail for per sq.ft

  9. Dear sir/madam,
    if anybody are interested for sell complete TDR or inprocess TDR in Nagpur B Zone.

    please contact 9326417656

  10. TDR available for sell ,if any person are interested to perchase ,please contact on 9326417656
    details of TDR given below
    1) location -B zone
    2) area -1 lack sq ft
    3) Price- 1400/ sq ft

  11. we got TDR in b zone 1 lack sq ft(1,00,000sq ft) if anybody want TDR ,please contact 09326417656,Hansaraj Bhoyar

  12. we got TDR in b zone, if anybody want TDR ,please contact 09326417656,Hansaraj Bhoyar

  13. i want TDR in Zone B 100000 sq.ft in NAGPUR urgent cash down cell.nos 09766116767

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