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The Hindu : y>The inaugural four-day offer from Orange Properties for apartments in Devanahalli closes on December 28, says RANJANI GOVIND

PACKED WITH OFFERS: R. Vijay (centre), Founder & CEO, Orange Group, Pericho Prabhu (left), Sr. Vice-President, Orange Group, and K. Muniraju, joint venture partner, addressing a press conference for the launch of Orange Township in Devanahalli

If you are willing to go in for a villa, just consider this offer wherein you could drive home an international luxury sedan that comes for free with the booking!

At a time when real estate prices are already seeing a southward plunge, there is additional good news for possessing a plush apartment at cost price! Want to consider apartments at Orange Township in Devanahalli that cost you less than Rs. 20 lakh and villas below Rs. 70 lakh? Offering you a range — apartments, row houses and villas — is Orange Constructions and Infrastructure, a division of the Orange Properties which talks of its three decades of experience with travel, ventures, holiday, corporate management, furniture, marketing, finance etc., with Orange Woods, Orange Holidays and Orange Electronics.

The group is now venturing into real estate “even as it is observing the lukewarm market and going with the tide for striking deals at this right time.”

Expains R. Vijay, Founder and CEO, Orange Group, “It is the slowdown that prompted our venture and to fall in line with the prevailing mood we have brought in the ‘cost-price offer’ that genuinely cuts our margins appreciably.”

But if you are not convinced, hold on, for, Vijay goes on to explain how their partnership land understandings without investment and high-volume-package deals make up for the negligible margins.The project

Spread across 65 acres, and just a six-minute drive from the Bangalore International Airport, Orange Township has plots from 1200 to 3000 sq.ft., with duplex villas costing less than Rs. 70 lakh and rising higher depending on the…More

The Hindu : y>From unbridled expansion of loan portfolios to extreme caution, banks have seen it all, says K. Sukumaran

It is interesting to watch the sudden surge from almost all concerned to save the housing sector. The first push came from the Reserve Bank of India. Then came the Central Government’s stimuli package. Now, it is the turn of the banking system to come to provide low interest rates to small and affordable houses. What can be the ultimate shape of things to come? Here is an account of the past, present and possible future of housing in India.

The history of housing sector development in India makes interesting reading. The setting up of the National Building Organisation (NBO) in the year 1954 was perhaps the first governmental initiative in independent India. Till the formulation of the comprehensive National Housing Policy which was adopted by the Parliament in 1988, housing remained an individual enterprise.Houses for the poor

Once the basic needs such as food and clothing were met through the implementation of first three Five Year Plans, the attention of the Government was directed towards providing shelters to the rural masses. Loans and subsidies were made available to encourage rural housing. Budgetary provisions were made to support the sector, especially the small segment. Central and State schemes were also set in motion to encourage housing development. The seventh Five Year Plan document gave housing the ‘priority’ tag as well.Medium and large segments

Loans from banks and other financial institutions were the mainstay in the growth of the large and medium housing segment. Further, long-term loan came to be recognised as a fundamental requirement of housing development, as the investment has been found to be large. Lending institutions started considering home loans as a safe and secure portfolio, especially when the property prices went on the upward curve. In addition, when the industrial sector depended on market…More

The Hindu : S. VISHWANATH

CII-GBC award encourages industries to think innovatively and help the community

Need of the hour: A water treatment plant

The Confederation of Indian Industry-Green Business Centre organises an annual ‘national award on excellence in water management’ competition for industries. This year was the fifth edition of the awards and saw an encouraging response with tough competition.

The awards are organised into two categories: Within the fence, which looks at industries’ performance in reducing water demand, encouraging water conservation and managing waste water flows in their own campus; and Beyond the fence, which looks at what industries are doing with communities for water solutions. A seven-member jury representing experts from varied sectors evaluates the track record of participants.

There were 24 participants this year in ‘Within the fence’ and seven ‘Beyond the fence’from industries ranging from tobacco and paper to fertilizer and steel. Representing a diverse set of actors in the developing economy seriously challenged for water resources, this presents the positive face of Indian industry.Key issues

Certain key issues emerged which show the challenges to India’s economical growth potential and the solutions proffered by the best. Water can be a key resource constraint for expansion and operation of industries. Irrespective of a steel plant drawing water from a dam, another drawing water from a river or an automobile ancillary dependent on groundwater, all of them are reporting a resource crunch with the availability of water.

Even though the cost of water maybe a minuscule component of the overall cost of production, it occupies a share in management far beyond its current value. Industries have had to shut operations causing huge losses simply because of the lack of water. The response is to appoint water managers and bring in efficiency and reduction in its ‘specific consumption’ i.e. unit of water per product unit.

The best industries no longer treat wastewater as a waste but have put…More

The Hindu : y>Are the builders in Mysore offering what the buyers want? A study by R. KRISHNA KUMAR

— Photo: M.A. SriramChanging skyline: A cluster of apartment buildings in Mysore.

Is there a mismatch between what the private builders offer and what the buyers want in Mysore? The question assumes significance in the light of super luxury apartments and villas being planned by property developers in the city.

While there is definitely a market for the luxury apartments and villas, it is not benefiting the common man desperate for a site to construct a house, given the exorbitant cost slapped by private players on such property.Purchasing power

The Mysore Urban Development Authority (MUDA) created, developed and distributed 3754 sites in two areas: Lal Bahadur Shastri Nagar which was carved out after acquiring 191 acres of land at Yandahalli; and Shantaveri Gopalagowda Nagar which came up on 192 acres around Uttanahalli village limits. Of these, only 84 applicants had given their priority to sites of 50’x80’ dimension. By MUDA accounts, 1,784 aspirants had opted for sites of 20’x30’ dimension, 1,212 applicants for 30’x40’ sites and 674 for sites of 40’x60’ dimension. This means hardly two per cent of the total beneficiaries had the purchasing power to invest in a land of larger dimension allotted at MUDA rates while less than 20 per cent of the aspirants could offer the 40’x60’ plots.Luxury homes

This is only a rough and a general indicator of the purchasing power of a larger number of aspirants who prefer affordable or low cost housing. But what is on offer and flooding the market with “ready-to-move” package is in the realm of luxury housing far beyond the reach of the salaried and the middle class.

The recent revision of housing loan interest rates, with the lowest rate of interest for loans up to Rs.5 lakh, underlines this sentiment and all the major financial institutions have…More

The Hindu :

Bank officials say that unless builders focus on budget properties, the new housing package will not have the desired impact in Tier-III cities

The decision of public sector banks to cut interest rates for fresh housing loans will benefit borrowers in Tier-III cities such as Kozhikode and their suburban areas, where borrowers can get an overall reduction in the loan amount.

Although Kozhikode has been impacted by the real estate downturn in a limited way, the housing market has slackened for the past few months. Speculators have moved away and genuine buyers have stepped in. Builders in Kozhikode look at the prospect of affordable housing. The prices of land, steel and cement are either coming down or getting corrected.

It is time developers went for affordable housing to rejuvenate the realty sector, says Nityanand Kamath, chairman, Calicut chapter, Kerala Builders Forum.

Property builders want a further cut in the interest rates — a 6 per cent rate for loans up to Rs.5 lakh and 7.5 per cent for up to Rs.20 lakh. “The housing loan ceiling should be increased to Rs.30 lakh if the new package is to be made more attractive,” Mr. Kamath says.‘Cut taxes’

The Centre has come to realise that if the realty sector takes a beating, all other sectors will collapse. Now, the State Government should take steps to reduce the excise duty on construction materials and decrease the stamp duty on registration. Already, the customer is burdened with service tax and value-added tax. The stamp duty should be reduced from 13.5 per cent to 6 per cent. Most States have complied with the directions of the Centre on this, he says.

The new loan package will be a boon for those planning to construct a house. Housing loan has become cheaper than what it was a couple of years ago. Thousands of existing borrowers who have opted for floating rates are…More

The Hindu : y>The instrument of trust should specify the nature and role of the trustees, their powers, the type of majority required to take decisions on all matters and holding of meetings from time to time

As part of a series on ownership rights under different legal relationships and entities, we have taken up the study of private trusts governed by the provisions of the Indian Trusts Act, 1882 (hereinafter referred to as the “Act”)

The author appoints a person or a group of persons as a trustee or trustees. Such trustees shall be legally competent to contract and shall not be a minor or a person of unsound mind or a person disqualified under any law from contracting.

The trustee, and if there is more than one trustee, the board of trustees, shall own and hold the trust property as a legal owner but only in a fiduciary capacity for the benefit of the beneficiaries.

The mode of functioning of the trustshall be decided by the board of trustees and the instrument of trust itself should specify the nature and role of the trustees, their powers, the type of majority required for the trustees to take decisions on all matters and holding of meetings from time to time.

The most important part of a private trust is the trust property, its control and management and the division and distribution of incomes of the trust to the beneficiaries. The trust property consists of the original sums of money or property declared as trust property under the instrument of trust and the addition and accretions to the same during the functioning of the trust.Division

The property shall be divided into two parts, one representing the “corpus” and “capital fund” of the trust and the other representing the undistributed income of the trust. The corpus and capital fund shall consist of the original sum of money or propertyand any gifts or…More

The Hindu : y>

Check electrical gadgets frequently in your office to avert a fire accident, is the latest mantra from the Andhra Pradesh Fire and Emergency Services Department following a spate of accidents in commercial buildings. Sparks from power storage batteries, computer servers, air-conditioners, switch boards and loose wire connections are the main reasons for the accidents. In some incidents, flames erupted due to smokers’ carelessness.

Almost all the buildings in which fire broke out lacked mandatory fire safety measures. Some building owners were found to have even ignored installation of simple fire-extinguishers.

Monitor

“Lack of proper mechanism for monitoring electrical appliances always leads to fire accidents,” says Hyderabad Clues Team Scientific Expert, T. Suresh.

Fire officials, however, maintain that installation of sub-standard electrical gadgets contributed to fire accidents.

“Companies invest crores of rupees to ensure better facilities, but ignore the safety aspect. We are suggesting companies to re-check electrical devices in the larger interests of the employees,” says District Fire Officer P. V. Ramana.

Employees too wanted the companies to ensure necessary fire safety systems. “It will be beneficial f mock fire drills are conducted at regular intervals focusing on how to react if fire breaks out on the office premises,” says N. V. Gautam, a BPO employee.

M. Srinivas(in Hyderabad)

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The Hindu :

Stylish: Experience the Italian flavour in your house

Let the flavour of Italy rule your kitchen. And ready to help you in this venture is Gilma Spagnol Cucine, a brand that customises kitchens to the specifications of their customers.

The brand is a joint venture of Spagnol Cucine, an Italian company in the kitchen industry, and Gilma, a lifestyle appliances brand in India. Stovekraft, which is part of the Bangalore-based Vardhaman Group of Companies, has a tie-up with Gilma.

Rajendra J. Gandhi, CMD, Stovekraft Private Limited, and Silvan Spagnol of Spagnol Group of Industries, signed a Memorandum of Understanding in Bangalore recently to popularise the brand.

Certain concepts in kitchen design will be displayed in showrooms. The first showroom of Gilma Spagnol Cucine opened in Indiranagar and the second opens on Bellary Main Road on December 27. Vipul Mankad, President of SIBDI Venture Capital Limited, was present at the launch.

Gilma already includes a product range of chimneys, hobs, microwave ovens, RTA (ready-to-assemble) modular kitchens, solar water heaters, safes and more.

Gilma Spagnol Cucine is an Italian-inspired twist to a contemporary Indian working style. Company representatives said, “Gilma delivers the design and performance of Italian products, spiced up for Indian cooking needs. The brand caters to the needs of global couples.”

All concepts are customised to the client needs and the entire kitchen collection is imported from Italy with complimentary built-in refrigerator, ovens, dishwasher and more.

The price ranges from 2.5 lakh to Rs. 40 lakh.

ANISHA SHETH

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The Hindu : y>The selective nature of the home loan announcement by banks suggests that it could be a half-measure, writes K.T. Jagannathan

New thinking: Real estate developers may have to cut the size and price of flats to sustain their business

Public sector banks have recently announced a reduction in home loan rates. The reductions have been selective and they have come with riders. Not surprisingly, there has been only a half-hearted welcome to the initiative.

Following the announcement, home loans up to Rs. 5 lakh should be available at a maximum interest rate of 8.5 per cent. Loans between Rs. 5 lakh and Rs. 20 lakh could be accessed at 9.25 per cent. The public sector banks have also announced certain freebies such as waiver of processing fees and pre-payment charges for loans up to Rs. 20 lakh and provision of free insurance cover.

The SBI Chairman, O. P. Bhatt, had clarified that the interest rate under the two schemes could come down, but would not gobeyond the threshold limit of 8.5 and 9.25 per cent, respectively, for a five-year period. The offering under the packages would be made till June 30 next year. After the lock-in period of five years, the borrowers could look in for free or floating rates that could change in accordance with market conditions. The PSU banks have also eased the margin money norms for these loans.

The selective nature of the announcement itself suggests that the move could at best be termed a half-measure. Questions are now raised about the efficacy of this initiative. Theoretically speaking, the move should act as a stimulus in boosting sales at least in the entry-level housing segment. However, this may not happen.

Single window solutions

Projects currently announced or under progress have not been planned to cater to the lower valued housing segment. There are hardly any projects that offer apartments below Rs. 20 lakh.

Existing projects…More

The Hindu :

Intimate setting That appeals to all

VILLA RETREATKodaikanalUSP: A hotel with a personal touch

Two decades ago, honeymooners Abdul and Zeena fell in love with the place they were staying in. Owned by a Parsi, it was a five-room lodge on half-an-acre facing the valley at Kodai’s famous Coaker’s Walk. The newly married couple went back to Tiruchi but left their hearts behind.

A year-and-a-half later, in 1989, they returned with a six-month-old son and Rs. 25,000 in hand and boldly struck a deal — to take the place on rent and run it on an experimental basis.

A year later, impressed by the couple’s service and dedication, the owner decided to sell the century-old property to them. What was originally built as five small cottages by an American underwent a slow but steady, aestheticand thoughtful modification in the hands of Abdul and Zeena.

Named “Villa Retreat,” the original structures were retained to house the reception and lobby, dining space and two suites and five classic rooms facing the valley. “In the beginning, my wife cooked for the guests, I took care of the interiors and we hired a boy for cleaning,” recalls Abdul.

Over time, eight deluxe rooms were added. Then, they went online. “I was the first in Kodai to launch a website with online reservation and credit card payment. This paid off and foreigners became our mainstay, besides newly married Indian couples,” he says.

Some guests have stayed for years. Abdul can’t forget an Irish guest, George Naramore, who booked a cottage for two days and ended up staying for six years till his death.

They have 16 rooms now, and another 10 standard rooms are nearing completion, “We have a team now, including my son who has finished his hotel management course,” smiles Abdul.Personal touch

“Villa Retreat” is no star-hotel. “It is the personal touch that brings our guests back,” the couple…More