RM : Gurgaon currently has more than 30 million sq. ft of commercial real estate under various stages of planning / development. The investment plans of most organizations, esp. within the IT & manufacturing domain aren’t really robust & aggressive, owing to the overall business environment.

A large part of the blame can be attributed to two factors

(a) Poor planning & execution ability with some of the developers

(b) Liquidity crunch & lack of capital for commercial real estate.

The above two lead to delays in completion of projects, thereby attracting cost overruns. The pricing strategy of commercial real estate hasn’t kept pace with the scientific methodology adopted in the residential sector.

 Q: There is a lot of oversupply of commercial office space in Gurgaon. In such a scenario how do you see the market trends. Is there any major correction in the offing?

RM : In this current market scenario, the larger players are saddled with more inventory, and they are willing to be more competitive on the pricing aspect. This puts more pressure on the smaller developers, whose offtake of inventory necessarily loses the premium.

Most commercial projects in Gurgaon have no discernible differentiator (on product design, specs & quality) with the others, with the exceptions of a few. That takes away the attraction for prospective clients & tenants.

Q: Tight money supply and slowdown in Europe and US has lead to few companies coming to set base and expansion is also low. What do you think is the likely impact.

During the pre 2008 era, organization used to identify spare capacity for forward expansion, which is a casualty in these uncertain times. Most organizations are taking up space on need basis, and aren’t reserving space for expansion, with the knowledge that the supply is adequate.

Also, the SME segment in Gurgaon hasn’t really had anything planned for them by the developers, who today aren’t expanding beyond the next three months requirement. Also, adequate inventory is avaialble in the areas like Udyog Vihar, sector 30-31-32 erc, wherein the building though shorn of the glass facades & central amentities, are adequate for one segment of clients.

The “Eurozone” crisis isnt helping the cause of Gurgaon, and then there are another 7 cities which are giving a tight competition to Gurgaon, not just with the real estate supply, but also with other soft benefits& incentives.

 Q There is also a problem of structural vacancy as many building in Gurgaon are vacant and tenants are not occupying these? What do you think is the solution.

RM :  Many of the commercial projects in Gurgaon, especially by the smaller developers, have been sold to financial investors in smaller space denominations. The developers have either sold on a rental commitment (assured returns) or have altogether washed their hands off the project, except for the maintenance. This situation does not augur well for the owner or the prospective tenant.

The rental expectations are based on the prevalent market price of the product. If the product has been sold on a higher price OR on assured returns, the current rentals don’t support the expectations of the property owner.

Either the consumers have to be offered a lower rentals, OR, the landlords would have to be more innovative by shouldering a part of the capital costs for the furnishings / Finishing by offering perceived benefits to the end user.

 Certes research reveals that 65-68% of the operating expense of a typical commercial office space occupier is towards Power, amenities & operations. The acute power deficiency, coupled with the infrastructure related costs in Gurgaon, compared to some other competing cities, isnt helping either.

 Q Which areas do you think are most promising for investors as far as commercial real estate is concerned?

RM : The Delhi master plan MPD 2021 is also likely to bring in a large supply of land for commercial development. Coupled with the fact that Delhi contributes a substantial part of the work force in Gurgaon, the Delhi challenge cannot be negated.

In the short run, the projects on the Northern periphery Road (NPR) would see an off take, subject to the operation of the road over the next three years.  Most developers who have projects farther away from Gurgaon city have to either offer very competitive pricing, Or, would have to add value to their products, to attract quality customers. The recent labour & other administrative lapses, widely reported by the media, isn’t helping the cause of Gurgaon too.

The interviewee is a director with Certes realty Ltd, a research & advisory firm on Delhi & Gurgaon master plans 2021 & 2025 respectively.

The reason to appraise the readers of the above statistics is to talk about the great potential for organized green belt development under Delhi, and the many pitfalls that are faced by the buyers.

I suffer great consternation when I am confronted with the many a half-truths and assumptions about the Green belt land, and its purported admissions, regulations & development. The basic myth or wrongful assumption being – “any Agricultural land is Green belt land”.

I thought it pertinent to bring to fore the facts, and explore jointly, the opportunities for the citizen investors, rather than the institutional & developers only.

Myth # 01 – Any Village land is green belt land

A big thumbs down to this assumption. “The MPD 2021 Plan stipulates that the land upto the depth of one peripheral village revenue boundary along the border of NCTD, wherever available, would be maintained as Green Belt”. (Ref. Clause 3.2.1 of notification of MPD). It also doesn’t mean that every last peripheral village of Delhi is classified as green. To take an objective view of the same, one has to refer to the notified zonal plans, under each zone, and further understand the location of the land on the village revenue records (shijra / Khatauni). I have come across many investors who have gone by hearsay, rather than research & expert advice, in buying land, for use as a farm house, under the green belt lands.

Myth # 02 – No permissions are required for Green belt development

Let the readers be informed that permissions are required for the development of any land parcel, for any land use, and for any category of development, from the empowered authorities. In the case of Delhi green belt lands, besides the DDA, MCD and other agencies, there are no objection certificates (NOC) too to be obtained from the local offices of the Land & revenue department. Caution be exercised while following to advice from sources with limited knowledge.

Myth # 03 – Registry & mutation would ensure that land isn’t acquired ever

Without getting into the absolute technical grounds, be informed that within Delhi, there are lands which are governed by separate set of rules, for e.g: Punjab Land act, Delhi land act, MCD act etc. etc. Though many such land parcels fall into the “Green zone” shown on the notified map/ Zoning of MPD 2021, they necessarily DON’T signify automatic qualification of the said land parcels for development of Farmhouses.

Registry & mutation, signifying ownership doesn’t mean that the said land cant be acquired for any other purpose, other than your own dwelling units. Let’s not forget that government can acquire land parcels, at any time, for any purpose as deemed fit. The demographic explosion, coupled with the development of projects in the Green belt, also requires infrastructure, be it power, sewerage, social infrastructure, water, drainage etc. If not researched, and referred to expert groups on the master planning, significant down valuation would be suffered on green belt lands purchased. EXERCISE CAUTION.

Having said the above, there rests a HUGE OPPORTUNITY for all categories of investors, developers, HNIs and retail investors. Let me state some proven facts, as experienced both during research & transactions, by yours’ truly.

a)             Land returns the highest ROI amongst realty products

b)            If bought at the right time, it rarely devalues

c)             It is an asset, which you take possession from day One.

d)            It has the most ‘flexible’ investment options

e)             Cost of managing your land Asset is negligible

f)              It is a highly liquid asset, with easy exit mechanism

g)             It privides the “right balance” in your real estate portfolio

THE GREEN BELT OPPORTUNITY IN DELHI

Now, why should the HNIs & retail investors invest into Green belt lands in Delhi? Why should they direct their investment from residential & commercial developments, into Land? What to expect from the investments int Delhi Farmlands? Some reasons herewith listed:

Pent up Demand & demographics - The foremost reason being the demand scenario in Delhi, which would possibly be the highest captive pent up demand of almost 2.3 million Dwelling units. On the farmhouse front, one particular research by Delhifarms.com pegs the forecasted demand by 2015 at 15000 new Farm houses, on a ticket size of almost a million dollars apiece. This entire demand has to be fulfilled under the Green belt of Delhi under MPD 2021.

Supply is NOT A CONSTRAINT – As per the MPD 2021 & zonal plans released in 2010, there is an imminent supply of more than 11, 000 hectares of land which is being released, under the Green belt of Delhi. These green belt lands not only act as the lung space of Delhi, but also encourage the development of low-density dwellings within the boundaries of NCT Delhi, more particularly the farm houses.

Investment Infrastructure & interest

“Dilli tho Dilli hi rahega” is the common refrain that I get to hear, while transacting land deals in the other cities of NCR. Besides Farm houses, there are a lot of commercial interest activities which would be pursued within the Green belt of Delhi.

Table 9.4 of the notified Delhi masterplan MPD 2021 document lists the following products / services / permitted activities which can be conducted within the Green belt areas of Delhi.

• Forest, Agriculture use, Vegetation belt, Dairy Farms, Piggery, Poultry farms, Farm house, Wild life sanctuary, Bird sanctuary, Biodiversity Park, Veterinary Centre, Police Post, Fire Post, Smriti Van, Plant Nursery, Orchard, Area for water-harvesting, Floriculture farm, Open Playground, Agro forestry, Amenity structures

Sports & sports related infrastructure have now been included as part of the social infrastructure, which would kick start the initiatives by the private enterprise into this domain, more specifically under the Green Belt of Delhi. Progressively, Delhi is emerging as a venue for International events, and facilities created jointly, severally or under the PPP mode would be the way forward to integrate the logistical needs for training & churning leading sportsmen.

Besides the above, Community Park Multipurpose Ground Existing village Abadis, already Regularized Unauthorized colonies and already approved Motels would be allowed to continue. That brings me to the opportunity of mini farms & serene villa & multiple dwelling units development opportunities within the Lal Dora & extended Lal Dora areas like Kanjhawala etc. Will talk about this specific opportunity some other time.

Besides the multi tiered investments by the Center, State, Municipal, Local & Private sector, Social infrastructure within the Green belt areas would be the biggest differentiator between Delhi & the other cities.

All of the above is only fraction of what Delhi Masterplan 2021 is about. It is planned to accommodate an additional population of more than 10 million, with the development of more than 2 million homes. You could well imagine the quantum of investments required, committed & the role & opportunities which the private sector would play. The same survey on Delhifarms.com also revealed that the corporate executives & businessmen community represent the aspiration segment for new farm houses, and supply being consistent & price points getting more achievable, there would be a demand pipeline for another 19,000 farms, mini farms & country homes.

Cautions & Risks

Having assessed the potential of the Green belts under Delhi, one muse exercise suitable caution while perusing investment opportunities. I still get to notice unscrupulous elements hawking off Green belt lands to gullible buyers, who do not seem to understand that some land parcels under green are earmarked for water bodes, infrastructure, reserved forests & parks etc. Please do not hesitate to seek expert guidance.

Let me tweak the famous quote by Mark Twain as follows – “Buy Delhi Farms, they don’t make them anymore”.

Whence the MPD 2021 was notified in Feb’2007, there was palpable excitement in the air about the biggest Real estate opportunity in the country. Yours’ truly also found himself busy with the business suits & private jet brigade in immersing myself into .ppt presentations on the “Oh so visible” factors like demographics, policy & regulation support, demand & supply, financing & opportunity etc.

Then came the usual ‘showstoppers’. The approach of the multiple involved  agencies (DDA, MCD, State, Center, etc.etc.)  seemed mired in petty politics & pseudo legal tangles, than achievement of the stated objective of “qualitative improvement in the quality of life” of Delhi.

The progress has been slow, albeit, assurances kept flowing in from different quarters about how “Delhi would be turned into a World class Megapolis” soon.

However, hope prevails!  2011 & onwards would see the Delhi masterplan MPD 2021 galloping back into contention, and the Policy makers, investors, developers, buyers & land selling villagers & the law of the land cannot ignore the opportunity any longer.

Let me elaborate on how each stakeholder is going to benefit out of the MPD opportunity, and what their compelling motivations would be.

Policy Makers – I would like to critically look at the three essential influencers, namely the political class, various arms of the government & civic administration.

There is a cemented realization that DDA cannot remain the monopolistic real estate developer of Delhi, esp. in the context of the complex modern & contemporary requirement of infrastructure. Also, acquiring land wholesale, and subjecting it to inaction & illegal development & occupation cannot be sustained any longer. Acquiring land for a pittance from the farmers can lead to social unrest, with the increased consciousness about the multiple scams & illegal gratification allegations surrounding government development agencies. Hence, DDA would progressively evolve into a master planner, which can monitor the private developers, who would be entrusted with a much larger role in the development of Delhi NCT.

The surrounding cities of Delhi, namely, cities of UP (NOIDA), Haryana & Rajasthan evolved a much more robust Real estate market through policy initiatives attractive to the private investors & developers. Today, a Gurgaon city might be contributing almost half of the revenue to the state of Haryana on certain categories of business. I ask these four questions in retrospect.

• Wasn’t Delhi’s inaction, which allowed these cities into the backyard?
• Lacking their own captive demand, didn’t these cities fulfill the pent up demand of Delhi?
• Can Delhi coffer afford to let go the revenues of Millions?
• Wouldn’t the demand overflow back into Delhi, if the eco system becomes conducive?

Our research reveals that almost 55% of the current urbanized areas of Delhi are haphazardly developed, either as illegal colonies, unauthorized developments or Urban slums. More than 1500 colonies & clusters do not have access to basic civic infrastructure & amenities.

Some hurting statistics – In 1972, 800 unauthorized colonies were regularized in Delhi. 567 were in 1977, about 600 regularized between 1989-2002, & 1639 unauthorized colonies identified for regularization in 2009. Is this the Culture of Urban development in Delhi?

Can those who want to be re-elected afford to sell the same old “gasoline in new bottles?”

If your answer is the same as mine for the above queries, we seem to be cracking the puzzle together.

Law of the Land – If we jog our memory, in 2007, the MPD 2021 document was released in a hurry to ensure that the citizens were not affected by the various court rulings, sealing, demolitions etc. 2008 & 2009 also beckoned elections for the assembly & MCD. Collectively, some protection was delivered to the citizens like the special provisions act 2008 etc. Assuming that some provisions of the acts have lapsed as on 31.Dec’2010, would the citizen be free from the wrath of the authorities, and courts alike? Let us not forget that the Supreme Court, which is hearing many petitions, too would be keen that the development of Delhi be structured, organized & people friendly, in accordance with the MPD 2021 vision document. The courts & administrators would like one uniform document to govern the development, rather than a discretionary outlook on the development of the capital state of India.

Investors – Irrespective of the words in which described, all investors work through the cardinal truth of “return on Investment”. It is not rocket science to figure out that ROI is better achieved by catering to the captive demand, than creating supply first & then go looking for demand, at the end occupier level.

Delhi today has a projected captive shortfall of almost 2 million dwelling residential units, factoring in the population increase from 1.32 crores to 2.5 crores. Going by the demographic indices, almost 2-3 lakh able bodied educated youngsters would be the resource available to the industry, per annum, to be added into their work force.

Someone needs to be either blind, or irrelevant to miss this opportunity.

Developers – here are some statistics to chew on. I would present my case after you have digested these numbers.

• Real estate likely to contribute more nearly 15% of GDP soon
• RE would be the largest employer after agriculture
• The business potential of RE in India would cross US $150 Billion (compared to the much touted IT industry approx. US $65 billion)
• Delhi has more than 400 sq. Kms of Urbanised areas, which need redevelopment

The last sentence being specific is the attention grabber.  When we talk of development & developers, it is not just agricultural land which can be converted to building, but also, a Singapore like business opportunity. Old, defunct, dilapidated & unsafe buildings can be knocked down & reconstructed, to create more modern, contemporary, safe & quality buildings, both residential & commercial. If we look around our own colonies & neighborhood, we have these opportunities begging for attention.

Redevelopment besides, the MPD 2021 almost brings to fore fresh development opportunities in all spheres, including infrastructure, parking, SEZs, a fresh supply of virgin land exceeding 50,000 hectares. Also, developers please note that Delhi would at all times be more attractive to an institutional investor, compared to any other tier II, Tier III city.

Wasn’t Mr. Chairman right when he said that the “next Leader Company would arise from Delhi?”

Buyers – The master plan of Delhi talks extensively on the concept of integrated cities, wherein the ‘walk to work’ concept can truly be implemented. Assuming all goes to plan, aided by the multi level investments from the Center, State, MCD & local civic authority & the robust private sector, the developments under the new master plan would be a lot different than the surrounding cities.

Ask yourselves – “If you get to live where there is connectivity, better power supply scenario, the capital of the country, functional metro, local transportation, better policing & security & source of livelihood, and products in all price categories, would you still want to go a few score miles out?”

I rest my case, your honours !!!

Farmers & Land owners – Owing to the better social infrastructure in rural Delhi, the second generation of land owners in Delhi understand economics better, and aren’t averse to buying land farther, at cheaper prices, after getting their rightful price of land in Delhi. Also, it is almost recognized in all quarters of governance today that Delhi is no longer an agrarian state; why talk farming excepting vegetables.

For the private players, buying land cheaper than the NCR markets, within the boundaries of NCT, is not a challenge anymore. The caveat as usual remain, if they are aided by knowledge.

The creators of the Delhi master plan are not shouting from their rooftops about a fact, for reasons unknown. MPD 2021 document won the ISOCARP award 2008 for Urban planning, competing with 6 other cities of the world.

The recognition citation reads –”For the capacity to articulate a holistic planning at one of the most complex metropolitan areas of the world, and facing key changes that are in common in many other megalopolises of the planet: from shelter to trade and commerce, from industry to environment, from conservation of built heritage to urban design and from development code to  plan monitoring.”

In summary, if you are a stakeholder of any sort in the real estate industry, here is one opportunity you can risk “Ignoring at your own peril”

Ramesh Menon is a Director with Certes realty Ltd, a domain focused advisory firm on the Delhi Masterplan 2021

What do the planners chose? Pretend unpreparedness & do an “ostrich act”? Maybe, no. Some quarters of the planners and intellectuals decide to act, and work on the Delhi Master plan MPD 2021. The MPD 2021 document was notified by the government way back on Feb. 2007 vide the S.O No. 141. The government of India gazette notification is available for the public on the official websites of DDA and other agencies. It is no longer a mystery document. The MPD details are available online too. Lo & behold, the political class did not change the stance, and continue to drag it’s feet on three critical components of management – RESEARCH, RESPOND, REFORM, REGULATE & REGISTER.

Some sense seems to be returning back. Work on the ground is visible again with multiple agencies putting together their resources to make the change, before the change becomes the mess.

Now specifically to the BRT corridors under proposal – Are they required, or aren’t they? The Delhi government think tank seems to find merit that the BRT is the way forward. If I have to add a rider, it would be a caution flag not to repeat the mistakes of the Ambedkar stretch till Moolchand, and to factor in the gargantuan nature of the problem, growing on a daily basis.

RITES carried out the need & feasibility analysis, and seems to deduce that Delhi would require another 375 kms of BRT. Holy cow !!! 375 similar to 6.5 would be suicidal. Nevertheless, as facts stand, 5.6 kms would be added to the existing BRT corridor, and 16 new corridors totaling almost 369 kms would be added over the next 11 years. No one is yet questioning on the funding mechanism for these. Remember, these are internal city roads, and not toll expressways.

Most identified stretches, per estimates, would carry a vehicular traffic of more than 5000 units per hour, in either direction.

The longest of the recommended stretches would be from Khera – Najafgarh – Ibrahimpur whereas the fastest and shortest BRT corridor would be from Rohini sector 21 to Kanjhawala. Now, that seems to be some integrated development, since the government is already planning a couple of Large Hospitals, government housing projects and other social infrastructure in Kanjhawla. Besides, kanjhawala has one of the most sought after, and neat extended abadi Lal Dora areas in Delhi. It augurs well for the region that infrastructure & housing would be developed simultaneously.

Fingers crossed, but my bet seems to be in favour of the Government. Soon, dreams might be reality.

 Many of those found uttering these through professionally worded PR jaunts weren’t actually practitioners. Many, most actually, had a strong connect with the Real estate Industry, which by design, isn’t acknowledged to be the most professionally run multi billion industry, where the demand outstrips supply.

 My questions kept getting bigger, as Mr. Modi’s grin. Of course, he made it seem as if $50 Million was the tip left on the table, post dinner. Nevertheless, factor of intrigue was the REAL estate connect of most (all??) the bidders. A few names or contenders who wanted to be part of the IPL renewed – Videocon, JayPee, Adanis, Sahara, Rendezvous, players in the earlier Pune & Ahmedabad consortiums, Kochi consortium, ICICI etc.etc. Even the Tinsel world contributions came from those who are known to use Real estate as the preferred investment product.

 Now, What is common between IPL & Real estate? Err… I mean, does IPL also have the same traits as real estate industry? Bhai, then tho it is another pakka bubble in the blowing… it would take a few down only after attaining a few billion dollar worth of valuation as well as swell the numbers first.

 Now, isn’t this the same industry which was asking for “Bailouts & Sops” a few months ago? Wasn’t this the same industry which wanted their buyers to wait patiently till their hard earned money see fruition? Wasn’t this industry wanting more money to complete projects? Wasn’t this the same industry which resisted regulation.. now.now.. I don’t want to get into the merits of the RE regulation bill.

 On a generic level, what is it that attracts the companies with a real estate connect to such events? Is it the holding pattern of most RE cos? (promoters own most shares, family run etc.) OR is it the genuine risk appetite. Is IPL planned to be run like the RE indistry, or would RE draw motivation from IPL. (slam-bang-thank-U-maam with the bechara buyer)

 Whatever so, the wait continues for the aam admi coz he has already paid half the money for the dream flat, and won’t even dare to ask questions to the Real estate developers, whether they have water harvesting or not. Sentiment and blessings always with the Real estate developers, from aam admi so that he could complete quickly and then go & play ^%$#@&*.

 Keep wondering, deciphering and finding your own truths.

This is no reflection on the credibility of those who are cash rich and buying teams. Musings only. Disclaimer is almost 150 pages, hence not posting here

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

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

I am not once confused by the British intent Vs. Desi leaders’ direction. Both desired a certain vested interest, as well as the emphasis of their leadership on the so called “aam-janta”. To say the least, both succeeded, and how. Delhi hasn’t created any marquee landmark building, and still boasts of those that the British left for us, to savour, deteriorate and exploit. I have my sense of exasperation when I read that 54% of Delhi is Urban slums and unauthorized colonies.

A spate of recent announcements in Delhi sets me thinking – “are we finally ready to shed the image of an old dilapidated city, one constructed majestically by the British, and left to rot even more majestically”. However, things seem to be changing. Delhi government agencies seem to be taking the “Builder” tag seriously. Moti Bagh, Jawaharlal Nehru Bhawan, Maulana Azad marg, Janpath, INA, Shahdra, Kidwai Nagar, Vasant Kunj, Rajouri Garden and some more areas seem to have caught the attention for rebuilding projects.

• Is that owing to the acute shortage of Ministerial houses?

 • Do our policy makers desire swankier offices?

• Do they expect mega parking & parks for their fleets?

• Is there a genuine awareness, awakening and desire to re-build Delhi.

It is heard that some areas of New Moti Bagh are shortlisted to build ministerial houses, and NBCC is the shortlisted partner who would not only build, but also fund the construction through a unique finance model wherein they would be allowed to sell 10% of the total land area for commercial purpose, in return for the ministerial housing. “The government is now open to the idea of making builders like us construct ministerial bungalows because they want the project to be delivered on time. Also, the government didn’t have funds for the project, so we came up with the idea of building them at our own cost and taking some land to build a commercial complex in return,” said Arup Roy Choudhury, chairman and managing director, NBCC. NBCC has already delivered 50 bungalows and the rest are expected to be completed in a year. Choudhury added, “Players like CPWD are quite understaffed so most of their projects suffer time overruns overtime, so the government is looking for fresh bidders who can have accountability.”

Other initiatives include 7.78 acres of land on Janpath under one of the Green building initiatives of the govt, an office complex in INA consisting of 6 blocks, one of which might house the HQ of CVC, another commercial complex in Kidwai Nagar, One residential pool accommodation project in Shahdra etc. The government is also planning a commercial complex in Kidwai Nagar, though no details are available. The cost expenditure for these projects alone would exceed about 600 crores, as per conservative estimates.

Can expect DDA to be left behind (in announcements only). They also have announced plans for housing complexes in Vasant Kunj Jasola, Dwarka, Narela, Baprola etc; a staggering 65000 residential units with an investment of almost $500 million. Parking lots in many areas like Subhash Nagar, Rajouri Garden, Hauz Khas, Gandhi Nagar, Model Town 2 and Munirka are already under construction with investments of around 200 crores . The project is worth Rs 170 crore.

Now, are these mirages or indicators?

 Both our leading ‘partees’ want to name the newly constructed 28 storey Civic headquarters in the name of some leader of their party. It could be named either “Dr.Shyama Prasad Mukherjee Civic blah blah center” or Gandhi(Sonia,Indira, Rajiv, Rahul, Rahul’s unborn son)  center for invigorating a sense of work culture in Dilli-MCD center” or even plain jane “Gandhi center for civic administration”.

 The new 28 storey building, one of the tallest structures in Delhi costed a MERE Rs. 550 crores of the Tax payers money, and it is of ‘sacramount importance’ that it be named right, for the babu inside to dispense his constitutional duty.

 The Lieutnant Governor (LG) of Delhi is a spoilsport. He just doesn’t understand the sentiments of the aam-aadmi for whom sadak-bijli-paani is a daily fight. The LG has gone ahead and suggested our LEADERS to accept the name ‘NEW TOWN HALL”. How sad. How can now the aam aadmi connect with the civic agencies when the building says “My name is Town Hall”, a la Khan.

If the entire nation was involved in “My name is khan”, do you think that the Chief secretary’s office in Delhi would not accord importance to this issue of national importance?  Sources say that considerable time, paper n think tank exposure was accorded to this ‘issue of national interest’ since two of the parties which ruled us / likely to rule us are hooting for this yeoman cause. There also was an official statement published in the print. Here goes:

 “The L-G has suggested that such an iconic building should not be named after any individual. The ultimate onus of naming the building lies with the state government,” Ranjan Mukherjee, Officer on Special Duty to the L-G, said.

“Based on his (L-G’s) letter, we have written to the MCD commissioner to name the building New Town Hall. It is a befitting name as across the globe no corporation offices are named Town Hall,” Chief Secretary Rakesh Mehta said.

 Now, it is of no consequence that we have already missed the deadline of moving into the new civic center.(don’t blame me, it might be called the OSAMA – Obama, Sonia, Atal, MDMK,atmaram Building) Instead of April’10, the civic agencies would move in after October’10. This gives ample time to check out another submersible monsoons and powerless summer.

It is time we appreciate the stand taken by OUR LEADERS. Both parties remain committed to the aam-admi. They say this:

“The decision of the MCD House is final in this case. Our naming committee will pass a resolution under Section 42 of the DMC act. It will then be introduced in the House,” BJP leader Vijender Gupta said.

“The commitment of the Gandhi family cannot be measured in the context of India. Hence, anything new has to have the “G” word on it”, a close associate of Kaun-gress said.

Ladies & gentlemen of Dilli, take heart. We are being ably led, and civic amenities would follow.

 “Hey !!!! watch that manhole while U tread the roads”.

The master plan of Delhi, in 2007, had given three years time for the polluting industries under 99 categories to either shift, or close down their units within three years. To revisit the Delhi Master plan MPD 2021 which was released in Feb 2007, the notification issued then said – “Industries listed under prohibited category shall not be permitted to be set up in Delhi. The existing industrial units under prohibited category need to relocate themselves outside the Capital within a period of three years.”

Most of these units are located within 22 different Industrial hubs spread across Delhi.  The deadline is getting over in the matter of a few days. Would almost 5000 Industries be disallowed to operate? Shut-down?

Ruchika Bhardwaj, an analyst with the leading consulting firm Certes Realty Ltd avers that “most Industrial consumers aren’t aware of the deadline. They might fall prey to the sudden awakening of the govt. machinery after the deadline elapses”.

It is understood that the Ministry of Urban development and other agencies have had several rounds of meetings to put together a plan. The unfortunate part being “too little, too late”. “It isn’t uncommon knowledge that these polluting industries is not likely to get protection from the courts too, in view of the pollution, the recent judgements and provisions under the MPD 2021″ says Mahipal Jain, an Industrialist with a unit within Delhi.

“Delays in the implementation of the zonal plans under MPD 2021 is the only factor responsible” says Ajay Dabas of Certes. He mentioned that the government had moved the provisions to acquire almost 945 acres of land under three villages in North West Delhi, almost 5 years back. Had the Industrial area been ready, these Industries could have found solace. The MPD 2021 itself mentions that the zone ‘N’ under MPD 2021 is the most suitable for high density developments owing to the topography, as well as the cheaper availability of the lands.

Ruchika avers that “an amendment or Ordinance by the government, to amend or delay to the notification issued by the MuD could be the only factor to buy time for these Industries”. It may be recalled that the Delhi state government might not be the regulator in these matters. The DDA is the implementing agency for the decisions released by the Ministry of Urban development.

The categories of Industries which are likely to be affected by the closure orders, if and when they are released soon include gas compressors, acids, alkalis, animal and fish oils, abattoirs and animal blood processing, bitumen blowing, bone grist, bone meal stainless steel pricking, dry cell batteries, electric wires and cables, fatty acids, fungicides, cranes, hoists and lifts (excluding assembly), flexographic ink, fuel oils, illuminating oils and other oils such as synthetic oil, lubricants, foundries, glass furnace (more than 1 ton/day capacity), gases-carbon-disulphide, ultramarine blue, chlorine, hydrogen, sulphur dioxide, acetylene (other than LPG, medical, CNG and oxygen), limekilns, leather tanning and dyeing (raw hides/skins to semi finish), methanol, methylated spirit, mineral salts which involves, use of acids, manufacturing of diesel engines, generators except assembly, potteries/ refractories (using coal or furnace oil), pyridines, plasticisers manufacturing, polythene polymers including resins, phenol, rubber solution and thinner, saccharine, secondary zinc industry, smelting, sugar, khandsari and vegetable oil hydrogenated.

The moot question however remains – Why is the MuD delaying the zonal plans, and what more time would it take for Delhi to implement the provisions of the MPD 2021. Three years hence, time runneth over.

WHO PACKS YOUR PARACHUTE?    

Charles Plumb was a US Navy jet pilot in Vietnam After 75 combat missions, his plane was destroyed by a surface-to-air missile. Plumb ejected and parachuted into enemy hands. He was captured and spent 6 years in a communist Vietnamese prison. He survived the ordeal and now lectures on lessons learned from that experience!

One day, when Plumb and his wife were sitting in a restaurant, a man at another table came up and said, ‘You’re Plumb! You flew jet fighters in Vietnam from the aircraft carrier Kitty Hawk ….You were shot down!’
‘How in the world did you know that?’ asked Plumb..
‘I packed your parachute,’ the man replied. Plumb gasped in surprise and gratitude. The man pumped his hand and said, ‘I guess it worked!’

Plumb assured him, ‘It sure did. If your chute hadn’t worked, I wouldn’t be here today.’

Plumb couldn’t sleep that night, thinking about that man. Plumb says, ‘I kept wondering what he had looked like in a Navy uniform: a white hat; a bib in the back; and bell-bottom trousers. I wonder how many times I might have seen him and not even said ‘Good morning, how are you?’ or anything because, you see, I was a fighter pilot and he was just a sailor.’ Plumb thought of the many hours the sailor had spent at a long wooden table in the bowels of the ship, carefully weaving the shrouds and folding the silks of each chute, holding in his hands each time the fate of someone he didn’t know.

Now, Plumb asks his audience, ‘Who’s packing your parachute?’ Everyone has someone who provides what they need to make it through the day. He also points out that he needed many kinds of parachutes when his plane was shot down over enemy territory — he needed his physical parachute, his mental parachute, his emotional parachute, and his spiritual parachute. He called on all these supports before reaching safety.

Sometimes in the daily challenges that life gives us, we miss what is really important. We may fail to say hello, please, or thank you, congratulate someone on something wonderful that has happened to them, give a compliment, or just do something nice for no reason. As you go through this week, this month, this year, recognize people who pack your parachutes.

I am sending you this as my way of thanking YOU for your part in packing MY parachute.

DONT SCREW AROUND !!    

Once upon a time, a young lad was born without a belly button. In its place, was a silver screw. All the doctors told his mother that there was nothing they could do. Like it or not, he was stuck with it….. he was screwed.

All the years of growing up was real tough on him, as all who saw the screw made fun of him. He avoided ever leaving his house…. and thus, never made any friends.

One day, a mysterious stranger saw his belly and told him of a swami in Tibet who could get rid of the screw for him. He was thrilled. The next day, he took all of his life’s savings and bought a ticket to Nepal.

After several days of climbing up steep cliffs, he came upon a giant monastery. The swami knew exactly why he had come. The screwy guy was told to sleep in the highest tower of the monastery…. and the following day when he awoke, the screw would have been removed.
The man immediately went to the room and fell asleep. During the night while he slept, a purple fog floated in an open window, bearing in its mist, a solid silver screwdriver. In just moments, the screwdriver removed the screw and disappeared out the window.

The next morning when the man awoke, he saw the silver screw laying on the pillow next to him. Reaching down, he felt his navel, and there was no screw there!

Jubilant, he leaped out of bed…… and his butt fell off.

The moral to this story is: ‘Don’t screw around with things you don’t understand…….. you could lose your behind.’

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

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

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

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

 Critics, players of the Industry and part of the political class argue that the appointment of a regulator is not the solution. Per them, the diversity of the country, the fragmented polity, the governance of different states by different political parties etc. demands a much more localised governance and that one unifying body would be akin to creating a ‘toothless’ tiger. But sir(s), can we create a single starting point? Can we have one direction wherein we can all head to? Can we adapt to tried, tested, best practices already enforced elsewhere in the world? Can the same India be any different in the realty industry compared to the IT, Telecom, services industry? Can we have a level playing field for all existing as well as intending players? Can we try and

 Possibly, vested interest and the lack of a coercive will is the biggest reason. The Mango people (aam-aadmi) deserves to remain a fruit to be milked of their juices, in the eyes of the policy maker. How come that we have certain norms in “A” industry, and can’t be enforced in the Real estate Industry? A clear indication that the Industry is not unified, and that the policy makers have a “VALID” reason not to enforce a singular norm across the country / Industry.

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

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

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

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

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

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