Integrated Township Planning 2011 21/03/2011

Project Report On

Ammaar Shaikh 2009A63


Integrated Township Planning 2011


MBA 2009-11 Batch Sem IV Project Project Charter Roll Nr . 2009A63 Full Name Ammaar Shaikh

Subject/Topic for the project (2 to 4 lines): Project Report on Integrated Township Planning Research Objective (3 to 5 lines): To prepare a comprehensive analysis of the different aspects involved in integrated township planning. Deliverables of the project (Not more than 5): Following are the aspects that will be covered in the project - Township Planning - Legal aspects - Environmental aspects - Infrastructure Aspect - Land acquisition for township

Remarks by Dr.Patwardhan/Prof Date:

Approved/Rework/Not approved: Signature:


Integrated Township Planning 2011


.....................................9 Chapter 2-Merits/Demerits of Integrated Township.............................................3-Development procedure Chapter 8-Legal Issues /Policies...........................................................................................5 Executive Summary..................4 Preface....................................................................1-Domestic Financing options 3.....................24 5.................3-Development Concessions 4 .........................................................................5-Merits/Demerits of FDI Chapter 6-Challenges..............................................................2-FDI policy 5..................3-Procedure for government approval 5.............................8 Part 1-External factors/issues of Integrated Township Chapter 1-Introduction.....44 8...................2-Policies for IT 8.................2-Foreign Financing options Chapter 4-Government Role.................1-Muncipal compliances 6..............................2-Township Planning Norms 7................16 3......................................................................................2-Legal compliances 6...............22 Chapter 5-Foreign Direct Investments(role) ............4-Conditions for IT Development 5...................................................................................1-General norms 8...................6 Objectives of report..Integrated Township Planning 2011 Table of Contents Acknowledgment ................3-Financial risk Part 2-Internal factors/issues Of Integrated Township Chapter 7-Township Planning .................................................................................................................. Chapter 3-Financing Integrated township..........................38 7....................................35 6.......................................1-Eligibility Criteria for investment 5.............................................................1-Criteria 7....................................................................................

........Procedure for Land Acquisition 11..................7-FDI Impact on IT Development 12.........Integrated Township Planning 2011 8............9-Infrastructural need Bibliography 5 .......................2-Current Scenario of 12.1...69 Part 3-Conclusions Chapter 13-Comprehensive Analysis...............................................8-Environmental Clearance conclusion 12.6-Government Policies & Implications 12...............................1-Need for Integrated Township 12.......................4-Impact of Green Channel procedures 12..........55 Chapter 10...........................................5-Issues/Changes Required In IT Development 12.....Infrastructure aspect..Determination of Market Value of land Chapter12-Case Study-Magarpatta City.........................................................61 11.................................................................3-Trend Analysis of IT 12..4-Development Control Regulations Chapter 9-Environmental Issues..........................73 12.......................2..58 Chapter 11-Land Acquisition.................

I take immense pleasure in completing this project and submitting the final research report. But still I can do without saying that word over and over again. I am also grateful to them for reposing confidence in my abilities and giving me the freedom to work on my project. a lot of support and helps from my guides. During the actual project work. Prof.Integrated Township Planning 2011 Acknowledgement Whatever we do. This project too has been the result of many such inspirations. encouragement and help. “THANKS” is not a word enough to express my gratitude or appreciation to them. complete our targets or simply inspire us. 6 . It has been full of learning. In spite of their busy schedule they always found time to guide me through the project. personal interest.Vivek Date & Prof .Prakash Waknis has been the source of inspiration through their constant guidance. I convey my sincere thanks to them. there is someone who helps us to achieve our goals.

General requirements for development of townships as well as different aspects such as Legal policies.Foreign Direct investments private sector participation etc are explained. 7 .Financing structure for different projects as per the requirements are mentioned Different routes of financing like Commercial banks . The report provides the FDI policy of the government in relation to Infrastructure projects. The special township policy provides the policies which are necessary for township development . its advantages and disadvantage.It provides information regarding the terms and conditions for township developments and real estate. PSU . Further it provides the procedure for obtaining government approval and the Eligibility criteria for investment in India. environmental. infrastructure are provided in detail so as to get an understanding of different issues involved in development of integrated township The report also gives details of Development control regulations as well as government role and support in relation to development of townships Land Acquisition being an important aspect in development of integrated township procedure for land acquisition and determination of market value of land are well explained.Integrated Township Planning 2011 Preface The report provides details of different aspects involved in integrated township planning . The report helps understand the role of FDI in development of integrated township.

bilateral and multi-lateral financial agencies.As per the policies of the government issued in 2005 which opened up the window for FDI investments in development of integrated township has played an important role. There are external factors and internal factor that play an important role in development of Integrated Township. recreation centre. transport facilities etc it would not depend on the Government for amenities. Financing these projects is one of the major concerns . The major external factors are the government role and steps taken to promote development of such townships. foreign investments. Other financing mechanisms include domestic capital market. 8 . higher learning institute. But after removal of barriers for FDI investment it has been is one of the most desired routes for developers to raise finance for their projects. water. gym. hospital.There are several routes of financing such projects . restaurant. Foreign Direct Investment (FDI) has been recognized as one of the important drivers of the economic growth of our country .In India the prime source of finance has been Commercial Banks. Nowadays looking at the increasing pressure on urban areas in relation to providing space for living has led to the emergence of integrated township. garbage management. cinema hall. swimming pools. parks.Integrated Township Planning 2011 Executive summary The report provides a detail understanding of each dimension involved in development of an integrated township. shopping mall. auditorium. ground for outdoor games. school. There are many factors that are involved which have led to the shift in demand for townships which is to be a self-contained town having all the modern civic amenities required by city – dwellers like power. and private sector participation. roads. hotel.

health facilities. financial risk involved etc.Integrated Township Planning 2011 For the developers it necessary to understand the challenges that are faced in development of integrated township so that necessary steps can be taken to overcome such difficulties. 9 . so it is necessary to understand and abide by the environmental clearances for completion of the project . These concessions play an important role as they provide benefit to the developer by reducing cost and increase profitability /feasibility of the project. political support. public utilities. The report provides a detail analysis of the internal factors involved in development of integrated township. educational. The major challenges are the legal /municipal compliance planning. parks. Environmental issues nowadays play a very important role in any infrastructure development. gardens and play grounds. It is essential to understand the different township planning norms. commercial. transportation etc . It is by itself a very vast topic but here we have tried to explain it in context of township building.Many projects are stalled due to non compliance of environmental norms Land acquisition is a major concern in development of integrated township.There are general and special concessions which the developer gets for such projects. This has been explained through a case study on Magarpatta which is an integrated township which has a used a different model for land acquisition. Township planning involves the different criteria to be fulfilled for construction of integrated township and the procedure followed in planning and developing such townships. There are legal issues/norms which are in involved in development of township which are residential. amenity Spaces.

Objectives Primary Objective To provide comprehensive analysis of the different aspects involved in Integrated Township Planning. Secondary Objective The secondary objectives of the project is to understand • • • • • • • • The concept of integrated township Planning The Government role in development of integrated township FDI role and policies related to financing integrated townships Challenges of integrated township development Township planning procedures Legal issues /policies and its impact Environmental clearance and norms for development of township Land acquisition Procedures 10 .Integrated Township Planning 2011 Thus this report provides an in-depth analysis of the different facets of Integrated Township and highlights the key issues involved.

there might be a situation where the cost of the end-product might push out middle-class buyers. if the land cost is too high. the model works better if land cost is rational. hotels. Ideal size and distance from a city The size of integrated townships can vary from as small as only 40 acres to some as large as 3. and the reason is availability of land on a larger scale and at a lower price. like any other real estate project. offices and what have you. Of course. Integrated townships are usually developed and sold in phases. hospitals. which is why one doesn’t need to incur all the expenditure in one go. using IT as their peg. Many companies across India are planning such large scale. schools.Integrated Township Planning 2011 Part1-External Factors/Issues OF Integrated Township 1) Introduction Definitions: Integrated Township means a self-contained township planned and developed through a licensed developer / firm / company / SPV / development Company together with work place and places of residence with all attendant facilities and amenities in such township and in accordance with these Rules. entertainment options. 11 . integrated townships. Also. It all depends on a developer’s ability to buy land and the rate at which he gets it. An integrated township is a community living platform where the concept of walk-to-work can be implemented. everything that families needs is in close proximity from their homes — shopping malls.000 acres or more. And it is not only in tier-I cities that developers are equally bullish but also on tier-II cities. Everything in an integrated township needs to be self-sustainable.

The FDI statistics and data are evident of the materialization of India as both a potential investment market for township construction planning. along with other amenities. there are other norms like minimum road width. resorts. Besides. commercial premises. recreational and retail services.000 acres in size must provide a college as well. Depending on size. Foreign Direct Investment (FDI) in India has registered growth in terms of both FDI flows in India and outflow from India. As per Government definition "Integrated Township includes housing. Today. Most of the township developer had taken loan from certain bank within India and foreign counties. townships have evolved to include all the ancillary facilities like commercial premises. there is no standard definition of integrated townships from a regulatory standpoint. the minimum area for a township project is 100 acres. villas. hotel projects. To take foreign loans there are certain rules and policy to be followed by the developers through automatic route or approval route. etc specified by the authorities. all townships must provide schools and basic medical care facilities.Integrated Township Planning 2011 Integrated townships have essentially been housing projects offering a combination of row houses. percentage of land usage. Development of card and allied infrastructure forms an integrated part of township development. hotels. However." In Gurgaon (Haryana). hotels. bungalows and group housing—all with essential urban infrastructure and amenities— at differential price points to consumers. IT Park and investing country. a township project is expected to provide certain social infrastructure and ancillary facilities as well. while those above 1. residential property. and commercial property. 12 . city and regional level urban infrastructure facilities such as roads and bridges and mass rapid transit systems. Maharashtra and Bangalore. For example.

NCR Mumbai Lucknow Kolkata Jaipur Chandigarh Chennai Pune 13 .India Real Estate News) These top integrated township destination cities of India are: • • • • • • • • • Bangalore Delhi.Integrated Township Planning 2011 India top township city: Some of the top 10 Integrated Township destination cities in India as per (Property Samachar.

Ltd Veena Developers Aamby Valley City Mumbai Sahara City Homes Hiranandani Palace Gardens Wardha road.Integrated Township Planning 2011 Major Townships in Maharashtra Maharashtra . Pune Pimpri-Chinchwad Link Road Pimpri-Chinchwad Link Road Naiknavare Developers Pvt. Ltd Yash Promoters Builders Yash Promoters Builders Yashopuram Done Yashomangal Done 14 .Township Development Project Name Project Location Status Name of Developer Garodia Nagar Ghatkopar East Done Done Garodia Group Sahara Infrastructure & Housing Sahara Infrastructure & Housing Hiranandani Developers Pvt. Nagpur Pune Ongoing Done Veena Samruddhi Mumbai Upcomi ng Ongoing Dwarka Chakan-Talegaon Road.

• Townships also offer the prospect of higher appreciation. Most townships projects are coming up at a distance from the city core and this gives the developer an advantage of lower land cost. • Advantage to developers-One of the biggest advantages of investing in townships projects is that the cost of entry is low compared to investing in the city. cinema hall. they provide good living standard along with the facilities like shopping malls. recreational facilities. and provide a better standard of living to all sections of the society. • Integrated townships provide solutions to increasing pressure on existing urban infrastructure and rapid urbanization. 15 . These are viewed as a low-risk investment due to its diversification and low entry cost with larger upside potential. with all the benefits of the city. hospital. as these projects adhere to a pre-set development plan with regard to open spaces. restaurants.Integrated Township Planning 2011 2) Merits/Demerits of Integrated Township a) Merits -A township is self sufficient. communal amenities and common areas. Along with facilities it also generates jobs within the area. good connecting roads. Staying in townships gives the residents a feeling of living in the countryside. In short we can say you can get everything in the township and no need to travel a long distance for daily requirements. etc. This means the overall value of the location does not take a hit because of unrestricted developments that may crop up later. • Townships are help to end the housing shortage. schools.

housing. excellent infrastructure. • Employment Generation –It provides a lot of employment to both unskilled and skilled labor which help to support the economy as a whole. built-up infrastructure and construction-development projects has lead to generate economic activity.Integrated Township Planning 2011 • Integrated Township has low-risk investment due to its diversification and low entry cost with larger upside potential and a great place to stay. Investment in townships. create new employment opportunities and add to the available housing stock and built-up infrastructure. and more. • In short. b) Demerits of Integrated townships 16 .

Integrated Township Planning 2011 • Securing the required multiple clearances for the project is a major hurdle in the development of integrated townships due to which it is a major reason for the developers not to enter into such kind of projects. • Entry barrier-Integrated Township Development have high entry barriers due to which there are very few developers who control this segment leading to monopolistic competition. 17 . raising finance is expensive due to which this cost is transferred to the customers who have to pay higher amount for the flats. • Financing-As the finance required for such projects is very high. • Such projects sometimes face delays in delivery because of their scale due to which customers may not get their possession of their flats on the stipulated time. • Generally the maintenance cost of such townships is high compared to single residential apartments which are to be paid by the residents of the township.

the prime source of finance has been Commercial Banks. 18 . especially a large one. These PSUs could have made a significant contribution in the future as well if not for their failure in raising resources from the market and inability to channelize the existing resources. have also played a pivotal role in project finance. However. an urgent need has been long felt to develop alternative financing mechanisms. and private sector participation. the infrastructure focused Public Sector Undertakings (PSUs). bilateral and multi-lateral financial agencies.Integrated Township Planning 2011 3) Financing Projects 3. such loans are expensive and banks are fast approaching their lending limits. In India. PSUs Traditionally. including Infrastructure Development Finance Company (IDFC). foreign investments. Let us now analyze these mechanisms. b) Alternative Financing Mechanisms The primary alternative financing mechanisms include domestic capital market.1) Domestic Financing Options a) Commercial Banks. These banks finance the project looking at the creditworthiness of the project and require a first security over the infrastructure created or the project assets. The overall capitalization for public sector banks is also acting as a constraint for the commercial banks to increase their infrastructure financing portfolio. With the rapidly increasing demand for investment in infrastructure. in any infrastructure project. Power Finance Corporation Ltd (PFC) amongst others.

19 . the flow of foreign funds was primarily in the form of short-term portfolio investments rather than long-term foreign direct investments. an alternative avenue has opened up for financing the long-term capital requirements of infrastructure projects. Although RBI has taken measures over the last decade to strengthen the bond market. it is not ideal for funding the long-run requirements of such projects.Integrated Township Planning 2011 • Domestic Capital Market The corporate bond market is of immense significance for financing infrastructure development. This move is aimed at helping infrastructure companies as they are not in a position to list their shares in the initial phase. The chief problem area is that. with the only exception of telecom (49 percent). automatic clearance for foreign investment (not requiring the approval of the FIPB) was first introduced for infrastructure sectors like power and roads. whereas the funding requirements for an infrastructure project is usually for a period of over ten years. In India. the Finance Ministry has allowed the Foreign Institutional Investors (FIIs) also to invest in unlisted companies. In India. in India. the development of the corporate bond market is far from satisfactory. within five years. in a bid to make the core sector attractive for FDI. FIIs can now invest 100 percent of their funds in the infrastructure sector in India. In order to encourage the flow of foreign funds into the infrastructure sector. • Foreign Investments With the integration of the financial markets across the world. Hence. 100 percent FDI is allowed under automatic route in the infrastructure. Further. initially. however. Currently. corporate bonds have short maturity period. the use of domestic market funds has been somewhat restricted due to the underdeveloped domestic capital market.

However.Integrated Township Planning 2011 • Bilateral and Multilateral Financial Agencies In the wake of the recent global financial crisis and tightening of the credit from commercial banks and bond markets. companies cannot directly borrow from most bilateral and multilateral lenders and often have to get proposals cleared from government departments. For achieving this. Institutions such as the World Bank and the Asian Development Bank (ADB) are protected from the global crisis to an extent because they raise funds from their member nations and bond markets. multilateral financial agencies are emerging as the preferred lenders for infrastructure developers in India. • Private Sector Participation An increased private sector participation/investment for capital investment in the infrastructure sector is also critical. The Government has been trying to harness the private sector's efficiencies in meeting the infrastructure needs of the country either through fully private ventures or through public private partnership (PPP). It involves participation of Central and State Governments along with the private sector. 20 . some regulatory aspects and transparency issues have to be dealt with.

Non-Profit making Organizations (NPOs). Trusts. etc. Financial intermediaries like banks.).. In order to get foreign funds there are two main types of instrument which are to be followed by builders and developers. The two main instruments are ECB and FDI: a) ECB (External Commercial Borrowings):External Commercial Borrowings (ECB) are defined to include commercial bank loans. housing finance companies.. buyers' credit. securitized instruments such as Floating Rate Notes and Fixed Rate Bonds etc. suppliers' credit. (iii) multilateral financial institutions (such as IFC. (iv) export credit agencies. Eligible borrowers can raise ECB from internationally recognized sources such as (i) international banks. and (vii) foreign equity holders (other than erstwhile Overseas Corporate Bodies).Integrated Township Planning 2011 3. 1956 are permitted to raise ECBs up to US $ 500 million from reputed lenders in any one financial year (April to March). Foreign funds are gaining popularity in many of builders and developers in India. credit from official export credit agencies and commercial borrowings availed from non-resident lenders with minimum average maturity of 3 years. 21 . financial institutions.2) Foreign Funds Financing Option Two main instruments used to acquire foreign funds for Township Development: Since the setting up of township in India many builders and developers had take foreign funds for building township. (ii) international capital markets. (v) suppliers of equipment. NBFCs. Proprietorship/Partnership Concerns and Individuals are not eligible to raise ECBs under automatic route. CDC. Indian companies registered under the Companies Act. (vi) foreign collaborators. ADB.

Other ECB criteria. under the Approval Route. such as end-use. the borrowers in the infrastructure sector were allowed to raise up to USD 500 million per year from previous USD 100 million.Integrated Township Planning 2011 ECB Policy for the purpose of developing Integrated Township: Amount and maturity: Corporate can avail of ECB of an additional amount of USD 250 million with average maturity of more than 10 years under the approval route. would not be permissible for such ECB up to a period of 10 years. • The previous limit of USD 20 million for Rupee expenditure for permissible end-users under the Approval route was hiked to USD 50 million. etc. It has been decided to permit corporate engaged in the development of integrated township. need to be complied with. however. during a financial year. The ECB Policy Changes: • RBI had withdrawn the exemption accorded to the development of integrated township as a permissible end-use of ECB. 22 . over and above the existing limit of USD 500 million under the automatic route. • Considering the huge funding requirement in infrastructure sector. Prepayment and call/put options. recognized lender. • The ECB Policy was modified in May 2008 to allow the infrastructure companies to raise up to $100 million from overseas markets at comparatively lower interest rates.

a large portion of money is required for land acquisition. In real estate projects. which is classified as working capital. But end-use restrictions like not allowing ECB money to be used for working capital will take away its attractiveness.Integrated Township Planning 2011 • The RBI allows ECB in real estate projects involving integrated townships of 100 acres or more. 23 .

24 . the Government will establish mechanisms to provide trunk infrastructure in the areas to be designated in a phased manner for township development. The feasibility of the same will be determined as part of the Preliminary Project Approval process and the detailed proposal for the same will form part of the Detailed Project Report to be submitted by the Developer. b) Access road-The Government will provide an access road of adequate width and construction specifications based on the use and scale of the Township. The water supplied will be charged (EDC) on the basis of actual consumption at cost-plus rates. The provision of infrastructure will be on a cost-plus basis with long term contracts and minimum consumption criteria. Under this policy. The charges such levied will be know n as “External Development Charge” (EDC). will be determined on the basis of the Developers’ rating system to be established under this Policy – the higher the rating of the Developer. The maximum period within which the trunk infrastructure is to be extended. The cost of a dedicated trunk line from the nearest source/ tapping point to the Township will be borne by the Developer. a) External Infrastructure .Integrated Township Planning 2011 4) Government’s role and support. The agreement for supply will have provisions for minimum and maximum off-take. the shorter the period. c) Bulk water supply-The Government will provide untreated drinking water of acceptable quality and in adequate quantity based on the use and scale of the Township. The cost of land acquisition and construction will be borne by the Developer in part or full on the basis of the sharing of benefits between the Developer and other users of the road.Power/Roads/Water-The Government recognizes that the provision of trunk infrastructure such as access from nearest major road and bulk supply of drinking water and power are essential for the facilitating township development.

the Government recognizes that often there remain residual patches of land and offers its support in procuring these. The electricity supplied will be charged (EDC) on the basis of actual consumption at cost-plus rates. If in the residual land. In the case of Private Lands such residual land will be assembled through compulsory acquisition. The supply of gas will be based on location and availability of a gas main in the vicinity of the Township. some Government land is present.Integrated Township Planning 2011 d) Bulk power – electricity and gas-The Government will provide reliable supply of electricity with adequate capacity for load based on the use and scale of the Township. However. These may include both private land and government land. or consent award or by way of negotiated purchase. The cost of the dedicated electricity mains from the nearest electricity source to the Township will be borne by the Developer. 25 . the same will be sold at market rates provided such lands form pockets within the project area. The agreement for supply will have provisions for minimum and maximum off-take. e) Land Procurement Support-The primary responsibility for procurement of land in adequate quantities corresponding to the proposed use and scale of the Township is that of the Developer. and not continuous pieces. The maximum extent of government support in procurement of land including purchase of private land and sale of government land to the Developer will be determined on a case to case basis on the basis of the importance of the Township from the point of view of the Government’s public policy objectives as well as the rating of the Developer.

therefore. Government has. Foreign Direct Investment (FDI) has been recognized as one of the important drivers of the economic growth of our country. Foreign Direct Investment in India is allowed through four basic routes namely.which also includes Persons of Indian Origin (PIO)] to complement and supplement domestic investment. however. The definition of FDI originally meant that the investing corporation gained a significant number of shares (10 percent or more) of the new venture. and private placements or preferential allotments. been making all efforts to invite and facilitate FDI and investment from Non Resident [NRIs. a) Financial collaborations. In recent years. b) Technical collaborations c) Joint ventures. A key to separating this action from involvement in other ventures in a foreign country is that the business enterprise operates completely outside the economy of the corporation’s home country. 26 . d) Capital markets via Euro issues. companies have been able to make a foreign direct investment that is actually long-term management control as opposed to direct investment in buildings and equipment.Integrated Township Planning 2011 5) FDI (Foreign Direct Investment): The simplest explanation of FDI would be a direct investment by a corporation in a commercial venture in another country.

with the prior approval of the FIPB. and with the prior approval of Reserve Bank if the investment is through Automatic Route. It is further clarified that partnership firms /proprietorship concerns having investments as per FEMA regulations are not allowed to engage in print Media sector. OCBs have been de-recognized as a class of investors in India with effect from September 16.1) Eligibility for Investment in India: • A person resident outside India (other than a citizen of Pakistan) or an entity incorporated outside India. 2003. roads or bridges educational institutions. recreational facilities. with the prior approval of Government of India if the investment is through Government Route. (other than an entity incorporated in Pakistan) can invest in India. • A person who is a citizen of Bangladesh or an entity incorporated in Bangladesh can invest in India under the FDI Scheme. • Prohibition on investment in India: Foreign investment in any form is prohibited in a company or a partnership firm or a proprietary concern or any entity.Integrated Township Planning 2011 5. city and regional level infrastructure. townships. Erstwhile OCBs which are incorporated outside India and are not under adverse notice of Reserve Bank can make fresh investments under the FDI Scheme as incorporated non-resident entities. subject to the FDI Policy of the Government of India. 27 . construction of residential / commercial premises. • Overseas Corporate Body. Trusts) which is engaged or proposes to engage in the following activities: It is clarified that “real estate business” does not include development of townships. whether incorporated or not (such as.

FDI for virtually all items/activities can be brought in through the Automatic route under powers delegated to the Reserve Bank of India (RBI). 28 . 1951. and All items which require an Industrial License in terms of the location policy notified by Government under the New Industrial Policy of 1991. • All proposals in which the foreign collaborator has a previous/existing venture/tie up in India in the same or allied field. All proposals falling outside notified sectoral policy/caps or under sectors in which FDI is not permitted. Policy for Automatic route: a) New Ventures-All items/activities for FDI/NRI investment up to 100% fall under the Automatic route except the following: • All proposals that require an Industrial License which includes: The item requiring an Industrial License under the Industries (Development & Regulation) Act.2) FDI Policy: Foreign direct investment is freely allowed in all sectors including the services sector.Foreign investment being more than 24 per cent in the equity capital of units manufacturing items reserved for small scale industries. Government approvals are accorded on the recommendation of the Foreign Investment Promotion Board (FIPB).Integrated Township Planning 2011 5. All proposals relating to acquisition of shares in an existing Indian company by a foreign/NRI investor. and for the remaining items/activities through Government approval. except a few sectors where the existing and notified sectoral policy does not permit FDI beyond a ceiling.

• Proposed expansion programme should be in the sector(s) under automatic route. automatic route for FDI/NRI investment is also available to the existing companies proposing to induct foreign equity. Otherwise. b) Existing Companies Besides new companies.Integrated Township Planning 2011 • RBI has granted general permission under Foreign Exchange Management Act (FEMA) in respect of proposals approved by the Government. the additional requirements are that: • Increase in equity level must result from the expansion of the equity base of the existing company without the acquisition of existing shares by NRI/foreign investors. For existing companies with an expansion programme. the proposal would need Government approval through the FIPB. 29 . Indian companies getting foreign investment approval through FIPB route do not require any further clearance from RBI for the purpose of receiving inward remittance and issue of shares to the foreign investors • For inward remittance and issue of shares to NRI up to 100 per cent equity also. For this the proposal must be supported by a Board Resolution of the existing Indian company. These companies have to file the required documents with the concerned Regional offices of RBI within 30 days after the issue of shares to NRIs. • Money to be remitted should be in foreign currency. prior permission of RBI is not required.

Ministry of Finance • FDI applications with NRI Investments and 100% EOU should be submitted to the Entrepreneur Assistance Unit (EAU) of Secretariat of Industrial Assistance (SIA). Government approvals for FDI/NRI through the FIPB (Foreign Investment Promotion Board) shall be necessary. The FIPB also grants composite approvals involving foreign investment/foreign technical collaboration.Integrated Township Planning 2011 5. • For seeking the approval applications in form FC-IL for FDI other than NRI Investments and 100% EOU should be submitted to the Department of Economic Affairs (DEA). For greater transparency in the approval process. a) Procedure for obtaining Government Approval: • All proposals for foreign investment requiring Government approval are considered for approval by the Foreign Investment Promotion Board (FIPB). Government has announced guidelines for consideration of FDI proposals by the FIPB. Any change in sectoral policy/sectoral equity cap is notified from time to time by the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. Department of Industrial Policy & Promotion.3) Policy for Government Approval: All activities which are not covered under the automatic routes cited above. 30 .

Integrated Township Planning 2011 • Plain paper applications carrying all relevant details are also accepted. The recommendations of FIPB in respect of project proposals involving a total investment of up to Rs. o Applications can also be submitted with Indian Missions abroad who will forward them to the Department of Economic Affairs for further processing. 6 billion are submitted to the Cabinet Committee on Economic Affairs (CCEA) for decision. No fee is payable. details thereof and the justification for proposing the new venture/technical collaboration (including trade marks). 31 . 6 billion are considered and approved by the Finance Minister. The following information should form part of the proposals submitted to FIPB: o Whether the applicant has had or has any previous/existing financial/technical collaboration or trade mark agreement in India in the same or allied field for which approval has been sought. • Foreign investment proposals received in the DEA are placed before the Foreign Investment Promotion Board (FIPB) within 15 days of its receipt. and If so. Projects with a total investment exceeding Rs.

• The investing Foreign Company should achieve clear milestones once their proposal has been approved. development of other infrastructure facilities including the trunk services etc. development charges. • The minimum area to be developed by such a company should be 100 acres for which norms and standards are to be followed as per local bylaws / rules. 32 .Integrated Township Planning 2011 5. preparation of layout and building plan. All such cases would be processed by FIPB on the recommendation of Ministry of Urban Development & Poverty Alleviation and other concerned Ministries / Departments. In the absence of such bylaws / rules. shall be registered as an Indian Company under Companies Act 1956 and will henceforth be allowed to take up land assembly and its development as a part of Integrated Township Development.4) Condition for FDI for development of Integrated Township: • The foreign company intending to invest. • The core business of the company seeking to make investment should be integrated township development with a record of successful execution of such projects elsewhere.. a minimum of 2000 (two thousand) dwelling units for about 10000 (ten thousand) population will need to be developed by the investor. development of internal and peripheral development. • Conditions regarding the use of land for commercial purposes. Ministry of Urban Development & Poverty Alleviation will develop an exclusive cell to deal with such cases. external development charges and other charges as laid down in Master Plan / Bylaws. will be the responsibility of the investor as per planning norms and standards on similar lines as those applicable to local investors.

will make it available to the local authorities free of cost. park. after properly developing playgrounds. milk booths will be handed over free of cost to the Government / local authority / agency as the case may be. Early exits require prior approval of the Foreign Investment and Promotion Board. • The developer.Integrated Township Planning 2011 • Land with assembled area for peripheral services such as police stations. • Do not repatriate original investment before three years from completion of minimum capitalization. 33 . • The Developer will retain the lands for community services such as (i) schools (ii) shopping complex (iii) community centers (iv) ration shop (v) hospital / dispensary. • Complete at least 50% of the integrated project within five years from the date of obtaining all clearances. These services will be developed by developer himself and shall be made operational before the houses are occupied. • The developer will ensure the norms and standards as applicable under local laws / rules.

The effects of FDI are by and large transformative. It helps in developing the know-how process in India in terms of enhancing the technological advancement in India. • Technology diffusion and knowledge transfer. which is a major step towards the economic growth of the country. A remarkable inflow of FDI in various industrial units in India has boosted the economic life of country. FDI ensures a huge amount of domestic capital. Some of the biggest advantages of FDI enjoyed by India have been listed as under: • Economic growth.FDI apparently helps in the outsourcing of knowledge from India especially in the Information Technology sector. Products of superior quality are manufactured by various industries in India due to greater amount of FDI inflows in the country.This is one of the major sectors.FDI have also ensured a number of employment opportunities by aiding the setting up of industrial units in various corners of India. The incorporation of a range of well-composed and relevant policies will boost up the profit ratio from Foreign Direct Investment higher. which is enormously benefited from foreign direct investment. production level.Foreign Direct Investments have opened a wide spectrum of opportunities in the trading of goods and services in India both in terms of import and export production.5) Merits/Demerits of Foreign Direct Investment: a) Merits-Attracting foreign direct investment has become an integral part of the economic development strategies for India. 34 . and employment opportunities in the developing countries. • Trade. • Employment and skill levels.Integrated Township Planning 2011 5.

Integrated Township Planning 2011 • Linkages and spillover to domestic firms.Various foreign firms are now occupying a position in the Indian market through Joint Ventures and collaboration concerns. 35 . The maximum amount of the profits gained by the foreign firms through these joint ventures is spent on the Indian market.

but on the other hand it is also being blamed for ousting domestic inflows. • At times it has been observed that certain foreign policies are adopted that are not appreciated by the workers of the recipient country.Integrated Township Planning 2011 b) Demerits of FDI in India: FDI has been a booming factor that has bolstered the economic life of India. 36 . • The various disadvantages of foreign direct investment are understood where the host country has some sort of national secret – something that is not meant to be disclosed to the rest of the world. • Another major disadvantage of foreign direct investment is that there is a chance that a company may lose out on its ownership to an overseas company. distribution of the profits made on the investment and the personnel. is also disadvantageous for the ones who are making the investment themselves. at times. • Foreign direct investment may entail high travel and communications expenses. It has been observed that the defense of a country has faced risks as a result of the foreign direct investment in the country. FDI is also claimed to have lowered few regulatory standards in terms of investment patterns • The disadvantages of foreign direct investment occur mostly in case of matters related to operation. This has often caused many companies to approach foreign direct investment with a certain amount of caution. One of the most indirect disadvantages of foreign direct investment is that the economically backward section of the host country is always inconvenienced when the stream of foreign direct investment is negatively affected. The differences of language and culture that exist between the country of the investor and the host country could also pose problems in case of foreign direct investment. Foreign direct investment.

• Human resources and skills to oversee design and construction. public open spaces and allied access and services servitudes. • Existing capital assets. maintenance and continuing operation of infrastructure will generally be found in municipal departments. • The finance necessary to modify.1) Challenges related to municipal compliances Any township development project the municipality will usually command .The following project inputs • Land falling within the public environment such as road reserves. extend or install municipal infrastructure will be sourced from (or accessed through) municipal budgets. In many cases vacant land set aside for social infrastructure will also vest with the municipality.Integrated Township Planning 2011 6) Challenges of integrated townships 6. including most elements of the engineering and social infrastructure. such as community halls and recreation facilities. 37 .

These may include important public infrastructure. capital. the following is recommended: • Addressing compliance issues from the very beginning of the project development process • Recruiting the best possible legal expertise at the beginning of the project process. and synchronizing other components of the project with this component. social welfare services and home affairs facilities. delays and stoppages. • While much of the public-sector land. courts. human resources and approvals required for township development projects are under municipal authority. such as police stations. In addition.2) Early legal compliance planning It is extremely difficult to negotiate the complex web of requirements and legislation. To prevent major conflicts.Integrated Township Planning 2011 6. • Doing the necessary and legal compliance planning and programming up front. health facilities. national and provincial government command a number of key project inputs. schools. 38 . national and provincial authorities frequently control access to vacant and/or underutilized facilities that need to be redeveloped as part of township renewal.

Integrated Township Planning 2011 6. sound investment decisions are based on an assessment of the risks involved and a calculation of the trade-off between risk and profitability.3) Financial Risk Challenges Since property investments are typically based on long-term return periods and because fixed investment cannot simply be packed up and moved elsewhere. Pre-investment risk assessments generally cover issues such as: • Crime: What will the trends be? Will the authorities be able to manage it? • Neighborhood: Will investors be able to strike up a cooperative relationship with organizations in the neighborhood? • Regulation and development control: Will the authorities be willing and able to regulate illegal uses in the surrounding areas? Will the authorities be likely to create a whole new set of rights just down the road and flood the market? 39 .

1) Criteria for Township Development: As per Town Planning Gujarat StateThe minimum area to be developed should be 100 acres subject to local rules. any restricted areas.Integrated Township Planning 2011 Chapter 2-Internal Factors /Issues Of Integrated Townships 7) Township Planning 7. from the HFL of major lakes. contiguous.Any suitable area having sufficiently wide means of access (not less than 18 mt. creek canal. truck terminus specially earmarked on Regional Plan. . • Gaothan areas or congested areas. from the historical monuments and places of Archeological importance. wildlife corridors and biosphere reserves. The area notified under the Special Township shall be one. Archeological monuments. unbroken and uninterrupted and in any case shall not be less than 100 acres at one place which shall not include the area under the following • Forest. Criteria for Special Township Area Requirement. Eco-sensitive 40 . wide) can be identified for the purpose of development as “Special Township”. reservoir. • Land falling within the belt of 200 mt. lands in the command area of irrigation projects.000 needs to be built. dams and its surrounding restricted area. Heritage precincts and places. lands falling within the belt of 500 mt. In the absence of local rules and bye-laws at least 2. water bodies like river.000 dwelling units for a population of 10.

To ensure harmonious built form the developer will be required to submit an Urban Design Plan specifying the characteristics of the building envelope such as height. both in terms of residential population density and in terms of the density of Built-Up-Area (expressed in FSI). Once the DPR is approved. ground coverage. In addition to this. designated Airport areas. Conformity to these norms will have to be established by the Developer in the Detailed Project Report to be submitted for approval. there will be no 41 . designated Port/ Harbor areas. etc for all the buildings proposed in the Township. quarry zone. height and bulk-To ensure predictable infrastructure requirements. notified area of SEZ. b) Density. land use norms will cover compatibility of adjacent uses. a) Land use mix-The basic land use mix is related to the classification of Townships by use and to the minimum criteria for eligibility. • Defense areas. quarry Zone and recreational tourism zone catchment areas of water bodies. c) Provide On-site Physical and Social Infrastructure-A separate and specific set of norms for provision of physical and social infrastructure will be issued as part of this Township Policy. Cantonment areas. integration with transportation network. wherein a minimum proportion of built-up area is to be allocated to the proposed economic activity.2) Town planning norms AS per the Gujarat Town Planning Norms the following are the factors taken into consideration. the overall density of the Township will be specified. margins. distribution of service facilities and provisions to ensure social inclusiveness.Integrated Township Planning 2011 Zone/area. 7.

the norms prescribed by the respective Development Plans will apply. In the case of Townships within the jurisdiction of sanctioned Development Plans of cities. 42 .Integrated Township Planning 2011 separate procedure for development permissions.

combining Sewerage and Solid Waste Management. o Water supply-The Developer must establish a system for the distribution of drinking water as per prescribed norms with adequate provision for treatment. o Integrated waste management-The key requirement for the waste management system is that the Township should have ‘zero externality’. The IWM systems should recycle as much water and nutrients as possible. Adequate provision shall be made for public transport. The capacities of these facilities are to be determined considering the resident population. as well as firefighting requirements. The possibility of harnessing energy from waste may also be considered o Power distribution-The developer shall ensure reliable power distribution within the Township area. workforce in the economic activities. Provision should be made for using recycled water for requirements such as landscaping.Integrated Township Planning 2011 • On-site Physical Infrastructure-The norms for provision of physical infrastructure will cover the following: o Road network and transportation-the road network must be provided in a well defined hierarchy from arterial to collector streets to access streets as per norms specified. The developer may draw the power from existing supply system or may go in for captive power generation. Both the road network and transport facilities should be coordinated well with the land use distribution. 43 . Therefore it is expected that all Developers make suitable arrangements for Integrated Waste Management. storage and distribution network. The norms will also specify provisions for pedestrian and bicycle tracks.

7. o Health facilities-Adequate number of primary health facilities and nursing homes/ polyclinics should be provided as per norms.3) Development Procedure for Special Township 44 . based on the resident population.Integrated Township Planning 2011 • On-site Social Infrastructure-The norms for provision of social infrastructure will cover the following: o Educational facilities-Adequate number of primary and secondary schools should be provided as per norms. based on the resident and floating population.

The proposal for development of Special Township.Detail layout plan. Upon receipt of such proposal. such clearance/approval will stand lapsed unless it is renewed by Govt. building plans of all development with area headed by an Architect of all sector and individual plots and built up area/FSI proposed should be submitted. b) Letter of intent-Upon receipt of location clearance from the Government. depending upon the merits of the case. part plan of sanction regional plan. The proposal shall contain ownership rights/development rights. site plan. This location clearance will be valid for one year from the date of issue and if within such period the letter of intent and final approval is not taken or not applied for. open spaces for parks. c) Layout and building -Layout plan showing all details of area utilized under roads. along with the environmental clearance as mentioned in Regulation No. document in respect of at least 50 % of area under the scheme . 1. The letter of intent shall be valid for six months unless renewed. in respective field and team . shall be submitted to Government in Urban Development Department for grant of location clearance. 45 . . Application for renewal has to be made to Govt. before expiry of one year. along with details of ownership of land or Development rights of lands in the proposal scheme. for sufficient reasons. location clearance may be granted by Government u/s 18/2 of MR&TP Act.Integrated Township Planning 2011 a) Location Clearance. the developer shall submit the proposal in respect of Special Township to Collector. garden and playground amenities.4 for issue of letter of intent.Letter of intent shall be issued within a period of 45 days from the date of receipt of the completed full & final proposal.

e) Implementation & completion • Development of Basic infrastructure & amenity shall be completed by the developer as per phases of scheme. • No building in the scheme is permitted to be occupied in any manner unless occupancy certificate is issued by Collector. • Extent: Village maps showing the extent of area and authenticated measurement plan/ gut book of the land in original and list of such documents. 46 . Final completion certificate for the scheme is to be issued by Collector . sector-wise detailed building plans and details of phasing. Development of the scheme shall be completed within 10 years from the date of final sanction to the layout plan of scheme.Integrated Township Planning 2011 d) Final Approval. ownership right Document in original with list of such documents. Every application shall be accompanied by – • Ownership Document: 7/12 extract/ Property Card. for final sanction The developer shall also submit an undertaking and execute an agreement about development and maintenance of basic infrastructural amenities in future with bank guarantee of 15 of its development costs. • Application for occupation certificate or final completion certificate shall be submitted along with a declaration and undertaking by the developer and his structural consultant. • An authenticated copy of location clearance and letter of intent environmental clearance is applicable.The Developer shall submit the layout plan of the entire township area.

Out of the total area of the township.Integrated Township Planning 2011 8) Legal Issues/Policies of Integrated Township The residential area should be well defined in clusters or neighborhoods or in a plotted development with proper road grid. Out of the total built-up area proposed to be utilized which is permissible as proportionate to zoning of area under such township at least 60% of the area may be used for purely residential development and further out of the total built-up area proposed to be utilized for residential development. 10% of the same shall be built for residential tenements having built-up area up to 40 sq.The residential area should be well defined in clusters or neighborhoods or in plotted development with proper road grid. . not more than 25% of the area may be used for purely residential development 47 . Transportation a) Residential.1) General Norms The overall planning of the integrated township shall be such that the project adequately meets detailed norms and specifications including the following as per the Maharashtra Town Planning Act 1966: • • • • • • • • Residential Commercial Educational Amenity Spaces Health Facilities Parks. Gardens and Play Grounds. Public Utilities.

recreation centers.The commercial area shall be properly distributed in hierarchical manner such as convenient shopping. town hall. library etc.Integrated Township Planning 2011 b) Commercial . essential shopping area. Minimum area required for health facilities shall be as per prevailing planning standards. The area allocation should be on projected population base and as far as possible the educational complex should not be concentrated at one place.Comprehensive educational system providing education from primary to secondary should be provided as per the requirement. e) Health Facilities. All such complexes should have area adequate allocation for playground. Minimum area required for educational purpose shall be as per prevailing planning standards.The area allocation for amenity space providing for amenities like market.Adequate area allocation for health facilities for primary health should be provided for. shall be not less than 10% of gross area with even placement. d) Amenity Spaces. . town hall. essential shopping area.. recreation centers. . Comprehensive infrastructure to support multi level educational systems right from pre-schooling to higher and professional courses in diverse segments shall be planned and provided for the township population. providing for ease of trade / commerce / shopping / community utilities / centers. c) Educational. The area allocation for amenity space providing for amenities like market. 48 . library. . should not be less than 5 of gross area and should be evenly placed. cultural community centers. etc. community centre etc. The commercial area shall be suitably distributed within the township area.

Internal road .The entire area of township shall be well knitted with proper road pattern. . (b) water supply system. (f) cemetery/cremation ground. .18 to 24 meter wide. h) Transport and Communication. This shall be exclusive of the statutory open spaces to be kept in smaller internal layouts and shall be distributed evenly in all residential clusters and the access shall be kept open to all general public. (g) bus station. taking into consideration the linkages with existing roads within the Township and outside area as well. . This should be exclusive of the statutory open spaces to be kept in smaller layout and should be distributed in all residential per prevailing byelaws applicable to Regional Plan subject to minimum road width 9 mt. Main road/Ring road . 49 . taking into consideration the linkages with existing roads within the township and outside area as well. This 20% area should be developed by the developer for such purposes and kept open to all general prescribed.Integrated Township Planning 2011 f) Public Utilities. The entire area of township shall be well knitted with proper road pattern with bus bays at appropriate places.Appropriate area allocation should be provided for (a) power receiving station/ substation. Gardens and Play grounds. All such roads shall be developed by the developer as per standard and road widths shall be as given. g) Parks. fire brigade station and other public utilities as per requirements. At least 15% of the total area shall be provided for parks / gardens / play grounds. Classified Road . police station Public parking. (c) sewerage and garbage disposal system.The township shall also provide adequate area as parks/ gardens/play grounds.

Integrated Township Planning 2011

All such roads shall be developed by the developer as per IRC standards and road widths as given below: • Internal Roads - a minimum width of 12 mts. • Main roads - a minimum width of 18 to 24 mts • Ring Roads and major access roads - four lane with a minimum of 33 mts & a median for road safety • Foot Paths - Minimum of 5 mts. on either side • Space for avenue trees - Minimum of 3 mts on either side.

8.2) Policies for Integrated Township

Integrated Township Planning 2011

Special Township Policy Government of India has announced its policy to permit 100% Foreign Direct Investment (FDI) for development of integrated township. In order to encourage private investment in housing sector and to facilitate housing at affordable prices, the following incentives will be available for projects under Special Township Area:• Non-agriculture permission will be automatic. • Exemption from Urban Land (Ceiling and Regulation) Act, 1976. • Government Land falling under township area shall be leased out to the developer at the current market rate. • The condition that only agriculturist will be eligible to buy agriculture land shall not be applicable in Special Township Area. • There shall be no ceiling limit for holding agriculture land to be purchased by the owner/developer for such project. • There will be floating FSI in the township. Unused FSI of one plot can be used anywhere in the whole township. • The stamp duty rates applicable in the Special Township area shall be 50% of prevailing rates. • A Special Township Project shall be partially exempted from payment of scrutiny fee for processing the development proposal. • 50% concession in payment of development charge.
8.3) Concessions for Townships (Maharashtra)

Integrated Township Planning 2011

Special Concessions • N.A. Permission. - Non-agriculture permission will be automatic. As soon as the scheme is notified, lands notified under Special Township area as per 1.2 will be deemed to have been converted into non-agriculture and no separate permission is required. Non-agriculture assessment however will commence from the date of sanction of scheme as per Regulation No.7(c). • Stamp Duty. - The stamp duty rates applicable in Notified Special Township area shall be 50 of prevailing rates of the Mumbai Stamp Act. • Grant of Government Land. - Any Government land falling under township area shall be leased out to the developer at the prevailing market rate on usual terms and conditions, without any subsidy. • Relaxation from Mumbai Tenancy and Agriculture Land Act. - The condition that only the agriculturist will be eligible to buy the agriculture land shall not be applicable in Special Township area. • Ceiling of agriculture land. - There shall be no ceiling limit for holding agriculture land to be purchased by the owner/developer for such project. • Exemption from Urban Land - Special Township Projects will be exempted from the purview of Urban Land (Ceiling and Regulation) Act; 1976.(g) Scrutiny fee. - A Special Township Project shall be partially exempted from payment of scrutiny fee being levied by the Collector/Planning Authority for processing the development proposal on certain terms and conditions as may be decided by the Collector/Planning Authority. • Floating FSI. - There will be floating FSI in the township. Unused FSI of one plot can be used anywhere in the whole township.

Integrated Township Planning 2011 • Special benefits / concessions in respect of Star Category Hotels.4) Development Control Regulations (Maharashtra) 53 . 8. Hospitals and Multiplexes /Property Tax shall be provided.

Integrated Township Planning 2011

a) Prevailing regulations of sanctioned Zonal Plan shall be applicable, except those expressly provided in these guidelines. • The total built up area / FAR of entire gross area of the township, will be determined for different zones. Inter-se flexibility will be permitted to the developers in deployment of the overall FAR within the components of township for commercial exploitation. Height of building shall be as specified in Zonal Regulation • In respect of each integrated township, the structural designer of principal developer / subsidiary developer shall submit a declaration with project report to the Authority about the construction of building. • High-rise flatted residential developments would be encouraged. • The Developer shall be responsible to ensure that the Township remains free of slums and unauthorized developments. • The Development Plan shall earmark adequate and appropriate land-fill sites for disposal of solid waste including adequate land for transfer stations both within and outside the township area.

b) Prevailing Development Control Regulations of sanctioned Regional Plan shall be applicable, except those expressly provided in these Special Regulations.

Integrated Township Planning 2011

• Special Township– The total built-up area/FSI of entire gross area of the Special Township in urbanisable zone (U-2) & Green Zone (G1, G2) will be 0.5. There will be no limit of total built-up area / FSI for the development of individual plots. • Height of building shall be as per prevailing Byelaws as specified in Regional Plan. However, it may be increased subject to provisions of fire fighting arrangements with prior approval of Fire Advisor, Government of Maharashtra. • 50% of the gross area of the project shall be kept open while the project of Special Township shall be executed on the remaining 50% land with gross built-up area/ FSI of 0.50 worked out on the entire gross area of the project. • Further, while developing such projects, it would be obligatory on the part of the developer to provide and develop all the infrastructure facilities including sites required for public purposes as per the prescribed planning norms. • As regards 50% of land which is required to be kept open, the same shall be made free of encumbrances and no development except town level open amenities shall be permissible thereon.

c) Other Special Regulations.


Integrated Township Planning 2011

In every Special Township proposal the structural designer of developer has to submit declaration with project report to Collector / Planning Authority about the construction of building The following shall not be included in covered area for built up area and F.S.I. calculations:• Area covered by the staircase rooms for stair flights of width 0.75 m. & above, in case of row housing & pent houses and duplexes, 1 mt. in case of residential building, 1.2 mt. & above in case of commercial (mercantile) buildings, 2.00 mt. & above in the case of public & semi-public building, subject to payment of premium in consultation with Town Planning & Valuation Department. Area covered by lift room for a building with height up to 16 mt. • Stilt floor space (exclusively for parking space) constructed under building of maximum cleared height 2.4 mt. and which shall be open at least from three sides. • Balcony or balconies of a minimum width of one mt. may be permitted free of F.S.I at any upper floor, subject to maximum of 1/3rd length of perimeter of building and such balcony projection shall be subject to the following conditions :o No balcony shall be allowed on ground floor. o Balcony or balconies shall be permitted to project in the marginal open space of not less than 3 mt. in width. o Notwithstanding anything contained in any other laws, rules, regulations or bye-laws in force, a balcony shall not be permitted to be enclosed.


facilities.It would be obligatory on the part of the developer firstly to provide for basic infrastructure and as such no permission for sale of plot/ flat shall be allowed unless her basic infrastructure as per Regulation is completed by the developer to the satisfaction of the Collector. • In case the development is proposed in Phases & sale permission Js expected after completion of Phase wise basic infrastructure. • Before granting such sale permission. . 57 . Developer has to submit undertaking about the basic infrastructure to be provided & completed phase wise by Developer. such permission may be granted . and utilities shall be also simultaneously developed phase-wise along with residential/allied development.respectively shall be planted and maintained by the developer • Sale Permission. And 400 trees per hectare . The plots earmarked for amenities.Integrated Township Planning 2011 • In special Township schemes at the rate of minimum 150 trees per ha.

Integrated Township Planning 2011 9) Environmental Clearances The development contemplated in townships shall not cause damage to ecology. whether EIA is required or not. Steps involved in obtaining Environmental Clearance are Application for Prior EC has to be made in form 1(and Form 1A for construction projects) Form 1A is for Item 8 construction projects conceptual Plan to be provided.Category B projects (SEAC). no site development as well as construction can begin until EC is obtained. This amenity shall be open to general public without any restriction or discrimination. Category B1 and B2 MOEF to issue guidelines for this. Environmental clearance shall be obtained from the Ministry of Environment and Forest. All projects under Item 8b classified as Cat. Government of India as per directions issued by the MOEF’s notification dated 7th July 2004. no case it shall involve topographical changes. B1 projects would require EIA so all construction projects may not escape EIA entirely 58 . changes in alignment of cross section of existing water course in any in the scheme area or adjacent to scheme area. B1 (Cat. • Screening. All projects classified under two categories: Category A: Will require clearance from MoEF based on recommendation by the Environmental Appraisal Committee (EAC) Category B: Will require clearance from the on the State Environmental Appraisal Committee (SEAC) The SEIAA will be constituted by Central Government based on nominations from State As earlier. The Township shall provide at least 20% of the total area as park/garden/playground with proper landscaping and open uses designated in the Township shall be duly developed by owner/developer.

To be placed before Competent Authority within next 15 days Issue of prior environmental Clearance • Decision to be communicated to applicant within 45 days of receipt of recommendations from SEAC • Total period -105 days from date of completed application (about 3.5 years for completion of construction (extendable by another 5 years) • Half-yearly compliance report (to EC conditions) to be submitted to regulatory authority (1st June and Dec 1st) • Compliance reports to be Public documents • On application • Website of regulatory authority 59 . • Public Hearing. Scoping not required for item 8 category projects Appraisal based only on Form1& 1A. B2) + EIA Report for Cat. B1.5 months • Provision for de-facto EC has been made-but based on recommendations of SEAC (to made public documents after expiry of stipulated period) • Other clearances NOT required for submitting application (unless legally or technically required) Environmental Clearance for Construction Projects • Validity of EC . B1) • Appraisal-For Item 8 Projects based on Form 1 & 1A (Cat.Not applicable to all projects under Item 8 (even Cat.To be done by SEAC within 60 days of receipt of complete application.Integrated Township Planning 2011 • Scoping – For Category A and B1 projects-TOR for EIA to be issued by EAC/SEAC.

60 . EC will be given only after submitting approved scheme/ building plans and other statutory approvals to SEAC. Creation & Maintenance of Green cover • The Township shall provide at least 15% of the total area as park / garden / playground with proper landscaping. quantity of sewage discharge and number of occupants • Construction projects not required to go to MoEF/EAC –only at SEAC • EIA not required if categorized as B2 project • Public Hearing not required for any construction project • Upper limit of built-up area raised to 1. m.000 sq. appraisal can be done in the absence of other clearances. earlier) • Construction projects in cities with population> 30 lakhs NOT required now to go to MoEF • For construction projects. 50. Departures from Earlier / Draft Notification • The criteria have been changed to Built-up area instead of investment. • In addition. trees at the rate of a minimum 150 Nos. However.Integrated Township Planning 2011 • Pending cases-provisions may be relaxed by MoEF or continued up to 1 year no relaxation in list of Schedule I. • In the Economic infrastructure Zone/ Residential Zone and No Development Zone. 00. m. the developer shall provide a green belt of 15 meters on either side of the main roads and of suitable width in respect of other roads. This amenity shall be open to general public without any restriction or discrimination. and 400 Nos. The open spaces designated in the Township shall be duly developed and maintained by the developer and handed over to the BMRDA/LPA free of cost after full development of the township. per hectare shall be planted and maintained by the developer.000 sq. (from 1.

in accordance with the prevailing regulations. Recycling sewage for gardening shall be undertaken by the developer. approach road. The developer shall develop Eco-friendly garbage disposal system by adopting the recycling and bio-degradation system in consultation with Maharashtra Pollution Control Board. i. b) Drainage and Garbage disposal. roads.P. All the onsite infrastructure. roads. The storage capacity of the same shall be at least 1. . groundwater recharging and waste water recycling projects within the Township.The developer shall make suitable and environment friendly arrangements for the disposal and treatment of sewage and solid waste as per requirements of Maharashtra Pollution Control Board. street lights.Integrated Township Planning 2011 10) Infrastructure Requirements The entire Township should be an integrated one with all facilities within the boundaries of declared townships. . The developer would be required to develop proper internal distribution and maintenance systems and shall specially undertake rain water harvesting.e.5 times of the actual required quantity as determined by expected population (Resident and Floating) and other uses. including R. 61 . a) Water supply. water supply and drainage system shall be provided and maintained in future by the developer till urban local body is constituted for such area and the developer shall also carry out development of amenity or proposals.The developer shall be required to develop the source for drinking water (excluding the groundwater source) or secure firm commitment from any water supply authority for meeting the daily water requirement of minimum 140 liters’ per capita per day exclusive of requirement of water for fire fighting and gardening. if any designated in the Regional plan.

• Medicare: A good healthcare facility with at least 50-plus beds and an emergency care is set up within the township. They are as follows: • School: A quality school with education up to at least 10thstandard is setup within the township. thereby facilitating residents. cricket.Integrated Township Planning 2011 c) Power . • Infrastructure and services: An integrated township needs to be selfcontained in most aspects.The developer shall ensure continuous and good quality power supply to township area. If power is drawn from an existing supply system. fitness facilities including a gymnasium and swimming pools are set up within the township to enhance social lifestyle. • Recreation: Adequate space for basic sports such as football. reducing the travelling time between home and school and in turn providing the children with more time for play and studies. tennis and badminton. • Community centre: A spacious. The developer may draw the power from existing supply system or may go in for arrangement of captive power generation with the approval from concerned authority. procure a firm commitment of power for the entire township from the power supply company. d) Social infrastructure An integrated township always has the basic social infrastructure essentials. 62 . essentially on basic infrastructure. the developer shall before commencement of development. well-decorated community centre with a club house and a function hall is set up within the township.

63 . • Shopping and entertainment: An integrated township is incomplete without shopping centers and entertainment areas. children play areas and common areas including community centre is essential for a well-developed integrated township. parks. • Shopping: Well-stocked grocery stores as well as shopping centers including branded garment stores. • Infrastructure maintenance: Proper and regular maintenance of roads. pathways. • Estate management: An integrated township should incorporate a well-equipped estate management. electrical and plumbing infrastructure. popular games and kid entertainment facilities should be established within the township. • Communication infrastructure: Good quality telecom services are also made available within the township and nearby. thereby easing communication. • Entertainment: Quality cinema or multiplex. • Food courts: Good quality and hygienic food courts with ample menu options should be established within the townships to cater to the taste buds of all types of residents. • Security: Superior estate security and safety for all residents is a critical element of an integrated township. electronic goods should be established within the township.Integrated Township Planning 2011 • Road network: A well-planned road network both within the township and connecting to the nearest highway or main road is built.

‘The Land Acquisition Act’ was promulgated on the first day of March. 1894. 64 . acquisition of land for public purposes has become far more important than ever before .Integrated Township Planning 2011 11) Land Acquisition Land is one of the biggest resources of any country. 1921. liberalization.Further. 1923 and 1933 before independence and in the years 1962. urbanization and new economic policy. there is an immense pressure on land. Whereas the sovereign power of every State has the authority to appropriate land for the public purpose. 1967 and 1984 after independence. Acquisition and requisitioning of property falls under the Concurrent List. recently the land is being acquired for setting up of Special Economic Zones (SEZs) to generate more employment. The Government has to acquire land from the private individuals for setting up various infrastructure and other public purpose projects as well as developmental activities. the issues related to land acquisition and rehabilitation of the affected persons have been the matter of debate recently. With the increased activity of land acquisition for public purposes as well as for setting up industries. with changing scenario of industrialization. every subject has the right to be heard before he is deprived of his property by the State. The Act has been amended in the years 1919. Besides. To deal with the issues related to land acquisition and determining the amount of compensation in lieu of the land acquired by the Government. This is recognized as a legal right as per article 300A of the Constitution which provides as under: Whereas land and its management is under the State List. With the enormous expansion of the State’s role in providing public welfare and economic development since independence.

65 . • To ensure that physical possession of the land is taken over and the amount of compensation is paid within a defined period from the date of the compensation award. 1894’ have been found to be inadequate in addressing certain issues related to the exercise of the statutory powers of the State for involuntary acquisition of private land and property as acknowledged in the Statement of Objects and Reasons of the aforesaid Bill. • To provide a fair compensation at market value commensurate with the purpose for which the acquired land would be used. the provisions made under the amending legislation seek to extend the provisions of the extent policies or statutes for rehabilitation and resettlement of those affected by the acquisition of land under the Act.Integrated Township Planning 2011 The provisions made under ‘The Land Acquisition Act. • To provide for the alternative mechanism of civil courts for Disposal of disputes relating to land acquisition compensation in a time bound manner. As per the Statement of Objects and Reasons of the Bill. Further the legislation seeks to provide for the following:• Restricting the Stat e intervention to acquire land for companies to the extent of a limited portion of the total area of land required when the ‘person’ which includes any company or associations or body of individuals has already purchased the rest of the land through private negotiations.

the least area needed. After notification the owner is prohibited from selling his property or disposing of it and prevented from carrying out any works of improvements for which no compensation will be paid if executed without prior permission from the collector. The application should be accompanied with a copy of the plan showing survey nos.Integrated Township Planning 2011 • Return of the land to the appropriate Government when any land or part thereof. 11. and other relevant facts as provided under land acquisition rules. One of the revenue officers is appointed as the collector to hold an inquiry under Section 5-A of the Act. an application is required to be made by it to the revenue authority.. it will issue a notification under Section 4 of the act that the particular land is required for public purpose. 66 .1) Procedure for the Land Acquisition a) Investigation When a local authority or a company requires a land. acquired under the Act remains unutilized for a defined period from the date of taking over possession. purpose of acquisition and the reason for the particular site to be chosen and the provision made for the cost of the acquisition. After the government has been fully satisfied about the purpose.

measured and a plan of the same is made. graveyards and the like. After notification the collector proceeds with the claim. 67 . That the acquisition will destroy or impair historical or artistic monuments or will desecrate religious buildings.Integrated Township Planning 2011 b) Objection and Confirmation Objections are invited from all persons interested in land within thirty days from the date of notification. That the land is not or less suitable than another piece of land for the said purpose. The objections will be valid on one or more of the following grounds: That the purpose for which the land is proposed for acquisition is not a public purpose. He has the site marked out. That the area under acquisition is excessive. The collector after hearing the objections will submit his report to the government who will finally declare the land for acquisition. c) Claim and Award The collector will issue notices under Section 9 to all persons interested in the acquisition to file their claim reports.

However. o If the person interested has to change his place of residence or business then the excess rent payable for the new premises is also considered for compensation. o When the land notified for acquisition has standing crops or trees. is to possess an expert knowledge on valuation.Integrated Township Planning 2011 The collector is not to be a party to the proceedings. In determining the compensation the market value of the land is determined at the date of notification. Matters which are not taken into consideration for the purpose of land acquisition are: 68 . The rise and fall in the value during the period of transaction and notification is taken into consideration. The government can abandon the acquisition proceedings by simply canceling the notification. and offers a fair price to an owner and checks that the public funds are not wasted. The claim filed should contain the names of the claimants and co-shares if any rents or profits for last three years and a valuation report of the land from an architect or an engineer. d) Compensation is also payable when: o Part of the property is proposed for acquisition in such a manner that the remainder depreciates in value. in that case compensation has to be paid under Section 48(2).

o The collector has to make the award under section 11 within a period of two years from the date of notification. by compulsory acquisition. Thus it is required to value a variety of interest. e) Reference to Court Any person interested to whom the award is not satisfactory can submit a written application to the court. 69 .Integrated Township Planning 2011 o The degree of urgency which has led to the acquisition o Any disinclination of the person interested to part with the land. which he has lost. o Any increase in the land value likely to accrue from the use to which it will be put when acquired. This application should be made within six weeks from the date of declaration of the award. o After necessary inquiries the collector declares his award showing true area of the land. f) Apportionment In apparent of the compensation each of the claimants are entitled to the value of his interest. rights and claims in the land in terms of money. total amount of compensation payable and apportionment of compensation if there are more than one owners or claimants.

or • The average of the sale price.2) Determination of Market Value of Land As per the principal Act.46 Clause 13 of ‘The Land Acquisition (Amendment) Bill. where higher price has been paid. The aforesaid clause provides the following with regard to the determination of market value of land:— “11B. Where the provisions of sub-section (1) are not applicable for the reason that: • The land is situated in such area where the transactions in land are Restricted by or under any other law for the time being in force in that area. where the land is situated. specified in the Indian Stamp Act. if any. whichever is higher. for the purpose of item (iii) of clause (f) of section 3. 2007’ seeks to insert Section 11B in the Principal Act.Integrated Township Planning 2011 11. ascertained from not less than fifty per cent of the sale deeds registered during the preceding three years.— • the minimum land value. 1899 for the registration of sale deeds in the area. or • The average of the sale price for similar type of land situated in the village or vicinity. (section 11 (1)(ii)) states that the Collector shall make an award for the compensation which in his opinion should be allowed for the land. ascertained from the prices paid or agreed to be paid for not less than fifty percent of the land already purchased for the project where higher price has been paid. (1) The Collector shall adopt the following criteria in assessing and determining the market value of the land. 70 .

for the purpose of determination of the market value of the land being acquired. and47 take into account the value of the land of the intended category in the adjoining areas or vicinity. The Collector shall. or the minimum land value has not been specified under the Indian Stamp Act. sericulture. as may be considered necessary by the Collector. horticulture. • In determining the market value of the building and other immovable property or assets attached to the land or building which is to be acquired. use the services of experienced persons in the field of agriculture. the concerned State Government shall specify the floor price per unit area of the said land based on the average higher prices paid for similar type of land situated in the adjoining areas or vicinity. or any other field. and the Collector may calculate the value of the land accordingly. • The Collector may. for the purpose of determining the value of trees and plants.— • Ascertain the intended land use category of such land. ascertained from not less than fifty per cent of the sale deeds registered during the preceding three years where higher price has been paid.Integrated Township Planning 2011 • the registered sale deeds for similar land as mentioned in clause (i) of sub-section (1) are not available for the preceding three years. forestry. before assessing and determining the market value of the land being acquired under this Act. 71 . the Collector may use the services of a competent engineer or any other specialist in the relevant field. as may be considered necessary by him. 1899 by the appropriate authority.

had sold their lands to real estate developers. The land they tilled has been under the Pune municipal jurisdiction since 1960.Integrated Township Planning 2011 Case Study The Magarpatta model for land acquisition In an equitable and inclusive model that replaces coercive land acquisition and exclusive development projects. In its draft development plan. earn dividends on the shares they hold. Plus they have got plush homes. 72 . a small group of farmers on the fringes of Pune saw the writing on the wall and decided to act before the process of globalization and development swallowed up their ancestral farms. These farmers own shares in the company proportionate to the value of their land. had through the 1960s and 1970s clung together to oppose the municipal administrations plan to urbanize their land. comprising 123 families that trace their ancestry back three centuries. lured by the quick buck. the Pune Municipal Corporation marked it as a future urbanisable zone. rent from tenants and income from contractual work for the company Long before the nation woke up to the violent protests against ?forced? Land acquisitions for Special Economic Zones (SEZs). though some farmers in the neighborhood. The Magar clan and their immediate neighbors. though it was still an agricultural zone. 123 farm families in Pune pooled 400 acres of farmland and set up a private limited company that developed a commercialcum residential project. But in 1982. They were content with the steady income afforded by the sugarcane harvests. this meant that the government could easily acquire the land under the Urban Land Ceiling Act.

the Magars realized that the city. At subsequent informal meetings.Integrated Township Planning 2011 By the late-80s. Otherwise the average landholding per family was between 2 and 4 acres. More than 90% of the farmers were Marathas while a few were from the Mali and Sonar communities. Magarpatta was going to be a re-enactment of Pimpri-Chinchwad. Together they managed to pool together 400 acres before requesting architect Hafeez Contractor to draft a private township plan. A young entrepreneur Satish Magar owned around 100 acres of land. the Magar clan dominated. ? It finally dawned on us that we were fighting a losing battle against rapid urbanization. already bursting at the seams. 73 . owning 40% of the total land or the largest patta (land strip) located next to the Hadapsar Industrial Estate. which was submitted to the concerned departments of the state administration for approval. while the idea was still at a very nascent stage. Seeking government approval proved an uphill task as applications and files moved from one department to another at a snail’s pace. and this meant they had to act soon The Magars decided that they would develop the land themselves. As the name Magarpatta Suggests. Amid great apprehension. the families applied for conversion of the entire stretch into a non-agricultural zone. the families began expressing concern over livelihoods as they had known only farming till then. The fact that they knew nothing about land development and had little money did not deter them. would eventually claim their land for infrastructure development. A new government came to power in Maharashtra in 1995. but with a focus on new age industries like software and business process outsourcing.

20 crore in 2000 rose to Rs 1. Thirty per cent of the total cost of each construction was earmarked as cost of land at the current price and paid to the shareholders. By now. and 10.Integrated Township Planning 2011 The idea was that each family got shares equal to the size of their landholding. this had to be reclaimed. 11. It was after a five-year-long wait in 1998 that the development plan of Magarpatta gathered momentum. Today. putting it at the centre of the discourse around offering a fair deal to landowners whose lands have been acquired or are in the process of being acquired under various development projects.5% for three years.5% for three months). Shares could be sold only to member families.50 crore in 2007. Each share was equivalent to 1 square meter of land and cost Rs 100. Every family was an equity shareholder of the company. in the form of a term deposit at an appropriate rate of interest (12. in 1998. The family has the option of reinvesting the amount in the company. 74 . The company was registered as the Magarpatta Township Development and Construction Company Limited. the 123 families had built up a consensus on setting up a private enterprise. around 65 acres of land had been sold off by some families in the interim.5% for one year. The company was run by the managing director and technical director in consultation with eight board members drawn from the shareholding families. The approximate price of an acre of land that was Rs 1. Farmers got their land titles (nonagricultural) cleared by 1999. However. It boasts ISO 9001:2000 certification. the project is popularly referred to as Magarpatta City. The current price per share is approximately Rs 1.000.

Integrated Township Planning 2011 There were two kinds of shares initially -. The most important feature of the model is that the land pattas (7/12 registrations) remain in the name of these families. Later. The preferential share was short-term. endowed shareholders with permanent rights in the company and over their lands. labor contracts. and plush homes with amenities Magarpatta City. The bye-laws of the company ensure preference to family members of shareholders in employment generated by the company. for immediate gains.a preferential share and an equity share. surpassing the urge. lease/rent amount from tenants. Shareholders may also invest in the construction of commercial spaces that are rented out to companies. on the other hand. ? In a nutshell. but also get dividends on the company shares they hold. safeguarding their ownership over the land. the proposed plan and costs. vending contracts (shops). these farmers not only get a fair price for their lands at the current rate. Apart from these provisions. Contracts are awarded based on an assessment of the bidders past experience. preferential shares were abolished and only equity shares that offer lifelong security to the families retained. beautification. employment in the company. of course. such as supplying raw material for RCC construction. current potential and. shareholders are encouraged to bid for contracts for development work in the township. where the rights of shareholders in the company and over their lands were redeemed at the end of the term. The board of directors reserve rights to withdraw contracts in case the quality of goods and services is not of the desired quality. 75 . Owning land is central to the Maratha tradition and this has proved a binding force. landscaping. The equity share. and security and maintenance contracts. if any. contractual work in the city.

Integrated Township Planning 2011 Around 300 contracts have been awarded for various kinds of work in the township. each shareholder holds two contracts. Besides. Bangalore. improving lifestyle. Cochin. The limited land availability and the huge unbridgeable gap between demand and supply for individual plots or sites have aided the demand and growth of condominiums. Baroda. over 10. 2. On average. 76 . A majority of the 123 families have bought apartments or bungalows for the specific purpose of renting them out to the IT firms that have set up shop here. New Delhi.000 dwellings.1) Need of Integrated Townships • The residential real estate has witnessed explosive growth and supply during the past decade. Chennai. Pune and to some extent Kolkata) and tier I cities (Nasik.000 jobs created in the companies operating from here Of the total residential capacity of 6. ? Besides. apart from the 65. primarily fuelled by the growing demand in key metros (Mumbai.500 spaces are currently occupied. The ever increasing population in the metros has also triggered the demand for both owned and rented accommodations. increasing aspiration levels and expanded knowledge on global trends have made the present new-generation property buyers more conscious about the properties they want to invest in.000 workers are engaged in daily wage jobs in the township. apartment complexes and gated communities. Ahmadabad etc). where preference has been given to the shareholders. higher disposable income. Part 3-Conclusions&Analysis 12) Comprehensive analysis 12.

• Metro cities already bustling with over-population. However the biggest bottleneck in developing demand for new townships in the peripheral regions is the lack of proper connectivity. for over 3-4 decades. As the real estate sector is finally coming on the fast track. this is the next phase of growth in the real estate industry. new development areas are not planned properly and therefore. In most cities. weak urban planning across most states. connectivity remains the major concern. for mitigating mobility issues. • The solution to this complex issue in key metros and tier I cities lies in integrated townships — a concept that has been adopted well and proven in the West and even Far East. longer travelling time to workplace and inadequate infrastructure have added woes to the property buyers rather than enabling them for a better living. As a township project integrates residential. 77 .2) Current scenario of Integrated Township • Integrated township projects are slowly picking up as the concept of walking to work is picking up among city dwellers. do not act as satellite towns. lack of public transport.Integrated Township Planning 2011 • However. commercial and retail properties. the focus of real estate developers and urban planners has now shifted towards developing the satellite towns on the periphery of bigger cities. but merely as suburban residential areas. 12.

commercial and institutional functions. These could be developed into small and medium size satellite townships with the major city acting as a hub. These projects are also part of an effort by these companies to reduce risk in their business model. 78 . • In the recent past several steps have been taken to introduce wellplanned mega infrastructure projects in different parts of the country. The government is now encouraging the development of such townships to reduce pressure on urban areas and to improve infrastructure.Integrated Township Planning 2011 • There are also many industrial hubs and small settlements along these corridors. Mass Rapid Transit systems and metro will perhaps lead to the decongestion of existing towns. Integrated township projects also offer real estate developers an opportunity to cash in on the revival in demand for residential and commercial space. An important aspect of urban planning would be a well planned transport system. • Looking at the current scenario it is necessary to develop a selfsustaining sub-city that has residential. • With growing urbanization it has now been established that townships are the most suitable residential solution. But for this appropriate urban planning is required. Emphasis is being laid for the development of metro networks and high capacity bus systems.

Integrated Township Planning 2011 12.3) Integrated township Development Trend analysis 79 .

Integrated Township Planning 2011 • Townships development is a trend that is catching the new face of Indian real estate like .A trend that has played an essential role in opening the floodgates for the development of integrated townships across the country that offers their residents the promise of a quality lifestyle tailored to suit every budget. township development in Chennai. township development in Delhi. India is proposing to set up separate investment regions complete with integrated townships for the planned growth of the knowledge industry because the booming IT sector in major cities is straining current infrastructure and adding to inflationary pressure. Township development in India has emerged into a growing trend in people aspiring for more homes in townships especially among the metro cities. township development in Bangalore. Foreign direct investment in township development in Ahmedabad. • With current market trends indicating a distinct customer preference for affordable homes that also fulfill their aspirations for a better lifestyle. integrated township projects offer the perfect solution to both the customer’s requirement as well as the builder’s need for assured demand. 80 . township development in Pune. This has bought in the FDI’s also into the race with more and more foreign industries investing in such projects. township development in Hyderabad. International real estate developers are here in India developing integrated townships similar to those in their own homeland. But they are very few as of now. is showing a rising trend. their numbers are only handful.

hospitals. when they decide to buy that dream house. shopping malls. After observing the trend we can come to a conclusion that townships have become the most required and desired place now days even though they cost much higher than individual buildings. Townships are the next big thing in the Indian real estate development industry. it seems. The shifting necessities and standard of living of India’s residential property buyers who have much more than just a simple home on their thoughts. Complexes built in large area of lands with all facilities including schools. 81 . As land prices peak in key cities and basic infrastructure lagging to balance with increasing populace. health spa provide the unique living experience that people demand these days.Integrated Township Planning 2011 • The perception of township has recognized its existence in the trend for staying with growing demand for luxury apartments in integrated townships. real estate property developers are building cities away from the city to facilitate better quality lifestyles. with a quiet growth in the number of township development projects that merge in a lot of things to make grand realty projects successful and sustainable. gymnasium.

In the case of Townships within the jurisdiction of sanctioned Development Plans of cities. the Government will establish a Green Channel for ensuring fast clearances.Integrated Township Planning 2011 12. Single point nodal agency for ‘Environmental Clearance’ Government will facilitate statutory environmental clearances through a single point nodal agency. to be notified separately Implement town planning norms. the norms prescribed by the respective Development Plans will apply.4) Impact of Green channel procedures on Township • The Government recognizes that normal procedures for various statutory clearances are time consuming and constitute a substantial cost overhead for Developers. • A separate and specific set of town planning norms will be issued as part of this Township Policy. third party verification/ supervision by competent professional agencies will be the principal method. At present the following initiatives are proposed in the Market Based Supervision/Verification Government will establish a market friendly and market based system for operational zing the procedures under this policy including scrutiny and approval of DPRs as well as monitoring and supervision during implementation and operation of the Township. • All these steps taken will lead to faster completion of projects and will increase the efficiency of work. Once the DPR is approved. For this purpose. Under the Township Policy. The system established wherein there will be no separate procedure for development permissions will help the developer by reducing the number of procedures. 82 . there will be no separate procedure for development permissions. Conformity to these norms will have to be established by the Developer in the Detailed Project Report to be submitted for approval.

5) Issues /Changes Required in Township Development • The issue with township is that unless and until infrastructure is developed buyers are not going to come these townships .Integrated Township Planning 2011 12. There should be special provisions for SEZs. The regulator is required to develop laws related to redevelopment.For this private developer will have to develop its own infrastructure. municipality and other departments. • I feel that it is necessary to have a regulator for the real estate sector. • The people who are approving are not town planners. Affordable housing has been a concern for both state and private sector 83 . There should be a single window clearance for land. • There are changes required in the laws related to development provisions. they are the junior engineers or the assistant engineers who have no idea about the planned these things have not changed. so as to have control over the fluctuation of prices and reduce exploitation of developers. transportation. police. • I fell that townships should be generally be located on less agriculturally productive land and should be on a reasonable distance from existing medium and large towns. land acquisition. predetermined processes to get plans sectioned and clear acts and by-laws to provide a boost to the real estate sector. price determination and many other issues. There should be national mapping of the land records. Also it is important to develop mass rapid transport corridors between the existing and the new townships so that relationship between industry and commerce develops.

Integrated Township Planning 2011 • Availability of adequate funds for real estate projects is crucial for development. I feel that financing options are not sufficient when it comes to large scale projects. 84 . • Looking at the current scenario I feel there is need to develop affordable housing which will be the future of this industry and this can be done collective efforts of public-private partnership which can fulfill the growing demand of commercial and residential space for the future India. Thus a bridge between demand and supply is needed to ensure affordable housing. Too much of funds coming in without considering the rigidity of supply may lead to inflation in the real estate prices.

Integrated Township Planning 2011 12. • Government has decided to extend the External Commercial Borrowings (ECB) facility for integrated townships. government initiatives like the opening up of FDI and ECB windows for local developers are expected to provide a much-needed boost for township development projects. township development in Delhi has induced all major property developers to invest in such ventures leading to an up rise in development of such large scale projects in different major cities. • The government’s policy that allows foreign direct investment (FDI) in township development in Chennai. 85 . township development in Bangalore.6) Government policies and its implications • The government plays a very important role in the development of integrated townships. • As we know that land procurement and inordinate delays in securing the required multiple clearances still pose a major hurdle in the development of such projects. township development in Pune. as per certain news reports the ECB norms for integrated township has been granted by the government to promote development of integrated townships which has lead to a boost in financing of such projects.

Integrated Township Planning 2011 • In context where the rupee-dollar parity is favorable. accessing cheaper funding for township projects.7) FDI impact on development 86 . in principal. will help in improving sentiments. the government’s decision to open up external commercial borrowings for integrated township developers will counter some of the ill effects of the credit crunch and facilitate access to funds for the housing sector in general The move to relax ECB norms for integrated townships. 12. easing the liquidity scenario to some extent and assist in the decongestion of cities because township development requires substantial land which is available in the periphery only.

(iv) It will lower real estate costs in the long run. (ii) It will bring in professional players equipped with expertise in real estate development. (v) It will generate employment and revenue. a minimum lockin period of three years must be fixed on investments and care should be taken to ensure that no long-term investment is funded by short-term capital. 87 . But there are also certain barriers for entry for FDI such land acquisition Legal problems. • I feel that along with the benefits FDI inflows can lead to distribution of all the profits outside the country. small individual land holdings. (iii) The introduction of new technology and quality real estate assets will have a demonstration effect on the local developers. • Looking at the policies for FDI laid down by the government I feel that FDI inflows are expected to rise in the coming future in development of integrated townships and the real estate sector as a whole.Integrated Township Planning 2011 • Changes in the FDI policy for township development have already attracted foreign players to invest in public-private partnerships with state governments and joint ventures with domestic developers • Allowing FDI in the real estate sector will result in the following advantages: (i) It will provide the much-needed investment for the funds-starved sector. To guard against this. and (vi) It will improve the quality of related infrastructure. untraceable records and unavailability of organized finance.

The environmental clearance form is not complicated and is easy to understand .8) Major conclusions-Environmental Major Finding from the Environmental clearance norms in development of projects are as follows • Environmental Clearance not required for less than 20000 sq. of built up area • All Environmental Clearances for construction projects from SEAC (State level) • Category B1. 12.9) Infrastructural Development Need 88 . • Public hearing not required for any construction project (Item 8) • Form 1A is a detailed questionnaire.(Townships and Area development – Item 8b) will require EIA study. All other projects will require only Form 1 and Form 1A.As there is only 1 form it is not mundane time consuming. almost a mini-EIA based on secondary environmental data along with a detailed Environment Management plan and environment monitoring plan and also a disaster management plan • May not circumvent the need for professional and expert guidance in filling up the application. These regulations help protect the environmental conditions of the surroundings along with the development of such projects. Nowadays environment has been a major concern in development of such projects. hence I feel it is necessary to understand clearly and abide by the clearance norms because many projects have been stopped due to lack of fulfillment of environmental conditions. m.Integrated Township Planning 2011 12.

there are gaps in the demand for supply of housing. This has lead to the emergence of Integrated Township which is a solution to these problems and helps reduce the pressure on urban areas. drainage etc). electricity. Large area of precious urban land is being converted in to roads and parking areas. improper access and dilapidated road condition are indicators of substandard housing. drainage. inadequate water supply and sanitation.Integrated Township Planning 2011 Due to rapid population growth and urbanization due to the migration of people from different parts of the country. Conflicting land uses. public transport cannot operate effectively in semi urban settlement. One of the examples of unplanned settlement is the growth of squatter settlements and slums in the urban area and substandard housing in the fringe of cities. Due to the lack of proper road network connecting city center and semi-urban areas. Lack of natural light and ventilation. Bibliography 89 . inadequate road network and inefficient transport management are creating traffic congestion. Development plots are very expensive and not available at affordable prices and people are forced to buy agricultural land cheaply without the provision of basic infrastructure and services (road. unplanned and haphazard construction. water. services and infrastructural facilities such as water. road and other utilities. And they start demand for the provision of infrastructure after the construction of houses.

com www.economictimes www. Documents Environmental Clearance for Construction Projects Maharashtra Regional Town Planning Act 1966 FDI& Real Estate Sector In India 90 .org www.dipp.Integrated Township Planning 2011 Web sites www.

Integrated Township Planning 2011 91 .

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