RBI has allowed companies to raise up to $1 bn but hedging of costs could make this unattractive for borrowers

Though the Reserve Bank of India has allowed real estate developers and housing finance companies to raise up to $1 billion (Rs 5,400 crore) via external commercial borrowing (ECB), hedging of costs could make this unattractive for borrowers. "It looks very difficult to raise funds through this new window. Monitoring use of funds is going to be a challenge. Also, there is a question mark over preparation and ability for managing currency risks even through hedging," said S Srinivasaraghavan, head, treasury, Dhanlaxmi Bank.

The government is considering a proposal to allow debt restructuring for real estate projects that face delays due to sovereign clearances. It is also considering creating a sub-category of commercial real estate-housing to allow an extended repayment period to developers.

As per the current policy, any loan given to developers for non-infrastructure sectors turns into a non-performing asset (NPA) when the project gets delayed by more than six months after the date of commencement of commercial operations (DCCO) without any payment made to the lenders. The DCCO dates means the time when the developer actually commences construction after getting the necessary approvals. After this period, banks usually declare the loan as an NPA if repayments are not made for a period of 90 days.

PANJIM: While maintaining that the Goa Khazan Land Development Board Bill, 2012, has been drafted to benefit land sharks for real estate, Pilerne Citizens Forum (PCF) has threatened to come on streets if government goes ahead with the proposed bill without taking local bodies into confidence.

The Forum has also warned Manohar Parrikar-led government not to play with the emotions of the people, recalling that these are the same Goans who brought political change by giving a drubbing to erstwhile Congress government’s corrupt regime.

The Comptroller and Auditor General has rapped the B S Yedyyurappa and H D Kumaraswamy governments for “rampant” illegal denotification of land benefiting builders and companies during the 2007-11 period.

“During 2007-11, the government denotified 123 acres and 15.5 guntas (one gunta is about 1,086 sq ft) after taking possession and another 89 acres and 23.5 guntas of land after notifying the fact of taking possession,” the CAG report said.

Amid speculation that Larsen and Toubro Ltd (L&T) is planning to sell its stake in Dhamra Port Co Ltd (DPCL), an equal joint venture between the engineering giant and Tata Steel Ltd, the Odisha government has ruled out immediate allotment of land for the port's second phase expansion.

"Allotment of additional land to DPCL for the second phase development at this stage does not appear tenable. Further claim of additional land by DPCL shall be considered by the state government on the basis of a norm (thumb rule) being formulated,” G Mathi Vathanan, secretary (commerce and transport), Odisha, stated in a letter to Santosh K Mohapatra, chief executive officer (CEO) of DPCL.

The Confederation of Real Estate Developers’ Associations of India (CREDAI) Chennai, on Tuesday, hailed the government’s approval for multi-level parking in apartments in the city as a decision that would relieve parking space pressure and enhance the architectural aesthetic in the city by “tucking parking space into the structure”.

Addressing a press conference, CREDAI president Sandeep Mehta said it was important that this permission was in the same building (stilt+2) and not a separate block, as this essentially meant that construction of parking space would no longer be restricted to the stilt floor and was exempt from Floor Space Index norms.

Allotment only if port achieves 70% cap utilisation, gets environmental nod from MoEF, Green Tribunal

Amid speculation of stake sale by L&T, one of the promoters of Dhamara Port Company Ltd (DPCL), Odisha government has ruled out immediate allotment of land for the port's second phase expansion. Dhamara Port Company is an equal joint venture between the engineering giant and Tata Steel. "Allotment of additional land to DPCL for second phase development at this stage does not appear tenable. Further claim of additional land by DPCL shall be considered by the state government on the basis of a norm (thumb rule) being formulated”, G Mathi Vathanan, secretary (commerce & transport) - Odisha stated in a letter to Santosh K Mohapatra, chief executive officer (DPCL) of DPCL.

Since 2004, licences have been given to develop as much land in the area as in the entire state during the earlier 25-odd yrs

In a three-part series, Business Standard has explored how agricultural land has been commercially tapped and exploited over the years by developers, often with ample help from the government, and its impact on the stakeholders. The series begins with the Gurgaon-Manesar region, next to Delhi. In the next two parts, we will look at Rajarhat on the fringes of Kolkata and the Mumbai-Pune and Mumbai-Nashik belt.

The Ministry of Environmental Protection has urged local authorities to be more transparent when providing information related to the environment, especially data regarding potentially hazardous co