Friday, December 4, 2009
India offers to cut carbon emissions 20-25% by ’20
India offers to cut carbon emissions 20-25% by ’20
The Economic Times, December 04, 2009, Page 1
New Delhi Says Legally-Binding Target A No-No
Our Political Bureau NEW DELHI
INDIA on Thursday tabled its emission offer for the Copenhagen summit — a reduction of 20-25% in carbon intensity by 2020 from 2005 levels through policy interventions, including mandatory fuel efficiency standards for all vehicles.
This reduction in emission intensity will be voluntary. In other words, a legally binding commitment is a strict “no”.
“We are telling the world that India is voluntarily ready to reduce emission intensity by 20-25% in 15 years from 2005. The Planning Commission has, on the basis of historical experience, concluded that a 20-25% cut in emission intensity between 2005 and 2020 is possible. India will not be taking a legal undertaking and this will not be a law,” minister of state for environment and forests Jairam Ramesh told the Lok Sabha.
The non-negotiables for India included its opposition to a legally binding emission target and peaking figure. “India will not initiate an agreement that will mention a peaking year. There is no question of compromise on these two issues,” Mr Ramesh said.
The announcement comes just days before world leaders are set to gather in Denmark to discuss a new climate pact, where they will hope to reach a new agreement to curb emissions of greenhouse gases.
The Danish draft unveiled on Tuesday had put an emission peaking year for India at 2030.
The development must be comforting for the US, which has been nudging India into announcing an emission figure.
It also fits in well with Washington’s “pledge and verify” strategy.
US President Barack Obama had announced a provisional commitment last week for the United States, pledging to reduce absolute emissions in the range of 17% by 2020. China, too, pledged last week to cut its own “carbon intensity” 40-45% by 2020.
On his part, Mr Ramesh said the government is willing to travel more distance provided “our concerns are allayed and equitable agreement is reached” at Copenhagen.
For the climate change summit at Copenhagen, the announcement sends a positive signal. And the next one year of negotiations will see whether India is willing to move beyond the “pledge” to the “verification” stage.
“Today, it is non-negotiable, but it will depend on the concessions made. It could be modulated. We are ready for verification of mitigation actions undertaken with international support. But we will not allow the same kind of scrutiny to unsupported actions. But we can consider a change in this (position),” the minister said.
The government’s emission cut plan is based on the carbon intensity reduction of 17.6% achieved between 1990 and 2005. Given that no carbon profiling has been undertaken in India beyond the power sector, this figure seems to be based solely on data for emissions from fuels — oil, gas and coal. It was not clear from the minister’s response whether this figure included emission intensity in agriculture and other sectors.
India pledges 25% emission cut by 2020
India pledges 25% emission cut by 2020
The Financial Express, December 4, 2009, Page 2
Rajiv Tikoo, New Delhi
As the Copenhagen climate change talks open next week, India pledges to cut its emission intensity by 20-25% by 2020 on a baseline of 2005.
While making the announcement in the Lok Sabha on Thursday, environment and forests minister Jairam Ramesh said, “It’s a voluntary and unilateral commitment and won’t be taken on as legally binding commitment.” He was responding during a special discussion on India’s position on climate change.
“India won’t accept any legally binding emission reduction targets or peaking year for emissions,” he added.
Referring to international verification, he said that while all our mitigation actions supported by the international support can be verified, unsupported action won’t be subjected to the same type of scrutiny. He added, “At the same time, we will be flexible without compromising our national interests.”
Stating it would help India negotiate from a point of strength during the Copenhagen talks, he added, “If there is a successful and equitable climate change agreement in Copenhagen and the international community extends support to us, we will do more.”
Ramesh said in his hour-long speech that the emission reduction target was arrived at by the Planning Commission and other institutions after considering that fact that India’s emission intensity has declined by 17.6% between 1990 and 2005. India’s energy intensity has been decreasing since eighties and is already in the same range as that of the least energy intensive countries in the world.
Further emission cuts are sought to be achieved by legislating mandatory fuel efficiency standards by 2011, introducing a model building energy code, making amendments to the Environment Conservation Act to introduce energy efficiency certificates, and making sure that 50% new capacity in power plants run on clean coal. Further, the low-carbon based growth model will be integrated in the 12th Five Year Plan, starting 2012.
The initial reaction from the industry and activists was positive. Arun Bharat Ram, chairman, SRF, said, “I am sure the industry will play an important role to ensure that the government plan materialises.” Saying that India is taking its fair share of the global effort on climate action unlike many key industrialised countries, Vinuta Gopal, climate campaign manager, Greenpeace India, added in a statement, “This finally signals India’s readiness to take leadership and be part of the climate solution.”
India’s announcement comes closely after China announced to cut its carbon intensity by 40-45% on a baseline of 2005. Though India’s per capita emission at low at 1.2 tonne compared to 21 tonne in the US and 5.5 tonne in China, India is the world’s fifth biggest greenhouse gases emitter.
Despite Dubai debacle, realty stocks outperform market
Despite Dubai debacle, realty stocks outperform market
The Financial Express, December 4, 2009, Page 4
fe Bureaus, Mumbai
Domestic realty stocks that bore the brunt of heavy selling last week following the Dubai debt crisis have, in fact, outperformed the broader market in the past one week. The BSE realty index has give a return 9.57% during the period compared to the BSE Sensex gain of just 1.96%. Even on a monthly basis, realty stocks have generated a higher return of 15.30% to Sensex gain of 11.56%.
Experts feel that the sentiment towards real estate sector has improved after lenders slashed their housing loan rates that are very positive for the industry. Further last four months of robust IIP numbers, along with better-than-expected GDP growth for the second quarter ending September 30, signifies the underlying strength in the domestic economy that augur well for the Indian real estate sector.
Shailesh Kanani, real estate analyst, Angel Stock Broking, said the main reason for realty stocks to go up is that the overall markets have gone up. "Moreover, bankers have reduced housing loan rates. HDFC has reduced housing loan rates to 8.5%, in line with SBI at 8.5%. This increases affordability and EMI goes down." The DLF stock surged 8.37% or Rs 29.65 in the past week, while the stock of Unitech gained 16.43% during the same period.
"Currently, the stock market is exuberant and the residential real estate sector has started to look up as customers have come back to the market. Realty stocks grow and dip in line with the growth and dip in economy," said Ambar Maheshwari, head, investment advisory, DTZ International Property Advisers. He said, "We are projecting the GDP to grow over 7%, which comes at a time when there is lot of disposable income in the market followed with lot of investments. As a result, people are buying more houses and corporates too are doing well. Real estate is a horizontal sector and almost all other sectors are vertical sectors. Realty stocks grow on the back of all the other sectors."
Anand Narayanan, residential director, Knight Frank India Private Ltd, said, “The growth story in real estate is that Indian housing sector is broadly 10% of the Indian population, which has access to grade A office space. Since listed real estate companies have taken equity to clean up their books, their stocks look positive. Real estate stocks are seen moving in tandem with what was observed during the 2007-08 fiscal. In terms of sales, both residential and commercial sales can be better in line with 2007-08."
The domestic equity market ended the day on a flat note following profit booking in key index heavyweights. The Sensex ended the day at 17,185.68 points, up 15.77 points or 0.09%, while the Nifty ended the day at 5,131.70 points, up 0.16% or 8.45 points.
Realtors move to metro peripheries for villa projects
Realtors move to metro peripheries for villa projects
The Financial Express, December 4, 2009, Page 4
Mona Mehta, Mumbai
With signs of economic revival clearly becoming visible, real estate developers in metros are moving away from prime locations to the peripheries for developing villa projects in the form of row-houses, bungalows and villa-type apartments. According to industry experts, this is being done to meet the growing demand for such housing.
Sushil Dungarwal, founder, Beyond Squarefeet, told FE, “So far, villa projects spread across 7 to 8 million square feet have already been developed in peripheries of metros such as Mumbai, Bangalore, Chennai, Hyderabad and Delhi along with few cities in Punjab.
“By 2010-end, 40 million square feet of villa projects is expected to come up in the peripheries of these metros, which would entail an investment of Rs 16,000 crore. Of the 40 million square feet, 60% of the villa projects are under construction, 20% in the blueprint stage and 20% projects already sold.”
In the last three years, demand for villas or single family homes have shot up due to creation of an affordable mid-category villas priced between Rs 40 lakh and Rs 50 lakh in the extreme suburbs of Mumbai like Panvel, Neral, Khopoli, among others.
North and South-based builders including DLF, Puravankara, Prestige Group, Brigade Group, Unitech have also been focusing on developing villa projects. Mahindra Lifespace Developers Ltd (MLDL) has launched Aqualily, a premium residential community with a blend of villas, twin homes and luxury apartments being developed within the Mahindra World City in Chennai.
There are builders who feel that demand for villas rise during a market boom as there is a lot of money available. Dilawar Nensey, joint managing director of Mumbai-based Royal Palms India, said, “Royal Palms has so far sold over 60 villas or bungalow plots ranging from Rs 89 lakh to Rs 5.5 crore.”
According to Nensey, since buying a villa is a matter of taste and not a necessity, it is very cyclical in nature.
Mumbai-based Lodha Group has launched Lodha Bellezza, a villa style project in Hyderabad. Abhisheck Lodha, director, Lodha Group, told FE, “With this project, we bring to Hyderabad California-style living.” Mumbai-Pune real estate developer, Kumar Urban Development has launched Sky Villas project which will be developed near the Worli Sea Link. A 270-m high tower called Kumar Couture will have villas of 8,000 square feet carpet area each. A total of 24 villas are being accommodated in the project. Lalit Kumar Jain, its chairman and managing director said, “The height between each villa will be equivalent to four floors of normal structures. We are offering triplexes and duplexes.”
3J Cherumkal Builders and Developers has launched its luxury villa project in Ooty, spread across four acres and the company proposes to build 37 luxury villas with two-bedroom and three bedroom villas costing between Rs 40-50 lakh.
Not only builders but some top international property consultants such as CB Richard Ellis have been approached by many developers based in Bangalore, Gurgaon, Noida, Coimbatore and Pune for consultancy on developing villa projects. CB Richard Ellis chairman and managing director Anshuman Magazine said, “We have advised many developers in these cities to develop villa projects after doing a feasibility study depending on the land cost, demand for the project, capital required. Developers consider villa houses as demand-led second home preferences for end-buyers.”
Besides, allied service providers who offer interior designs, fittings, paints and Vastu, among others, have also seen a proportional growth of almost 50% in the last two quarters.
Our cities don’t reflect our growth
Our cities don’t reflect our growth
The Times of India, December 4, 2009, Page 13
Prime Minister calls for speeding up urban reforms for efficient governance.
NEW DELHI: Maintaining that Indian cities were not an acceptable face of a rapidly modernising and developing economy, Prime Minister Manmohan Singh on Thursday sought speeding up of urban reforms to provide efficient, equitable and transparent governance.
The PM said urban chaos was becoming a way of life as infrastructure struggled to keep pace with demand and called for concerted action to tackle problems that came with rapid urbanisation.
"Our cities and towns are not an acceptable face of a rapidly modernising and developing economy," Singh said at the National Conference on Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
Singh stressed that solutions to the problems of urbanisation were of critical importance to the future of the country's economy, its potential for growth and for harmonious and inclusive development of urban India.
"The programme (JNNURM) has succeeded in focussing attention of our policy makers on issues of urban renewal as never before. The problems of urban areas and their sustained development are no longer accepted stoically; they are being tackled and beginning to be tackled effectively," he said.
Ministries of urban development and housing & urban poverty alleviation had approved projects and buses for urban transport worth Rs 1,03,462 crore, for which the Centre had committed assistance of Rs 55,625 crore.
Singh said there was recognition today that JNNURM had created a paradigm shift in how the urban sector is to be viewed, both at the state and city levels. "In this sense, our government can take great pride in having launched a Mission that is a game changer for urban India," he said.
Pushing for urban reforms to ensure better governance, PM said the process of municipal reform under the Mission needed to be deepened and to be more even across cities. Urban local bodies have to develop the capacity to provide efficient, equitable and transparent governance, he said.
The PM said improving the health of municipalities was another important priority and called upon the states to fulfill their obligation to devolve both functions and finances to these bodies.
Urban development minister S Jaipal Reddy said in a lighter vein that he was afraid of going to Parliament as newly-elected members besieged him and asked for development funds but the ministry hardly had any money to spare.
"I am afraid of going to Parliament as newly-elected MPs want schemes for their cities. When urban development ministers of states want to see me, I avoid them as much as I can," he said.
Describing JNNURM as a "magnificent success", Reddy recalled that initially they were daunted by the magnitude of the project but expressed satisfaction that in four years, schemes worth more than Rs 1 lakh crore (Rs 1 trillion) had been sanctioned.
The Times of India, December 4, 2009, Page 13
Prime Minister calls for speeding up urban reforms for efficient governance.
NEW DELHI: Maintaining that Indian cities were not an acceptable face of a rapidly modernising and developing economy, Prime Minister Manmohan Singh on Thursday sought speeding up of urban reforms to provide efficient, equitable and transparent governance.
The PM said urban chaos was becoming a way of life as infrastructure struggled to keep pace with demand and called for concerted action to tackle problems that came with rapid urbanisation.
"Our cities and towns are not an acceptable face of a rapidly modernising and developing economy," Singh said at the National Conference on Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
Singh stressed that solutions to the problems of urbanisation were of critical importance to the future of the country's economy, its potential for growth and for harmonious and inclusive development of urban India.
"The programme (JNNURM) has succeeded in focussing attention of our policy makers on issues of urban renewal as never before. The problems of urban areas and their sustained development are no longer accepted stoically; they are being tackled and beginning to be tackled effectively," he said.
Ministries of urban development and housing & urban poverty alleviation had approved projects and buses for urban transport worth Rs 1,03,462 crore, for which the Centre had committed assistance of Rs 55,625 crore.
Singh said there was recognition today that JNNURM had created a paradigm shift in how the urban sector is to be viewed, both at the state and city levels. "In this sense, our government can take great pride in having launched a Mission that is a game changer for urban India," he said.
Pushing for urban reforms to ensure better governance, PM said the process of municipal reform under the Mission needed to be deepened and to be more even across cities. Urban local bodies have to develop the capacity to provide efficient, equitable and transparent governance, he said.
The PM said improving the health of municipalities was another important priority and called upon the states to fulfill their obligation to devolve both functions and finances to these bodies.
Urban development minister S Jaipal Reddy said in a lighter vein that he was afraid of going to Parliament as newly-elected members besieged him and asked for development funds but the ministry hardly had any money to spare.
"I am afraid of going to Parliament as newly-elected MPs want schemes for their cities. When urban development ministers of states want to see me, I avoid them as much as I can," he said.
Describing JNNURM as a "magnificent success", Reddy recalled that initially they were daunted by the magnitude of the project but expressed satisfaction that in four years, schemes worth more than Rs 1 lakh crore (Rs 1 trillion) had been sanctioned.
Gurgoan metro misses financial closure deadline
Gurgoan metro misses financial closure deadline
The Financial Express, December 4, 2009, Page 12
Kakoly Chatterjee, New Delhi
Rapid MetroRail Gurgaon Ltd, the joint venture between the largest real estate company DLF and Infrastructure Leasing & Financial Services Ltd (IL&FS) failed to achieve financial closure for its Gurgaon metro rail link project by November 30 deadline. The metro project is currently a 26:74 partnership between DLF and IL&FS.
“We will need some more time to achieve financial closure. It will probably be done by March next year,” a senior official of Rapid MetroRail Gurgaon Ltd said.
However, financial closure is not the only stumbling block for this project, which is awaiting approval from the Centre for a detailed project report analysis. Sources in the urban development ministry said the Haryana government has already signed the concession agreement.
“Funding is not an issue for us. The Haryana government has already given its approval. We are awaiting Central government’s nod. Once we get it we will start the project,” a spokesperson of the company said.
Meanwhile, the urban development ministry is consulting with the law ministry on a couple of issues before it signs the concession agreement. The metro project which will cost Rs 900 crore will have 5 km of operative area and cover 6 stations.
In 2007, DLF had submitted the proposal of the metro link to the Haryana government to construct the metro link on its own. However, after the financial meltdown when the realty sector was hit hard, the largest listed company decided to become a minority partner in the joint venture with IL&FS. The idea germinated mainly because DLF wanted to increase connectivity in Guragaon as it was developing a lot of residential and commercial space in the area.
Stalled plan
* The metro project is currently a 26:74 partnership between DLF and IL&FS
* The plan is awaiting nod from the Centre for a detailed project report analysis
* The project will cost Rs 900 cr, will have 5 km of operative area & cover 6 stations
The Financial Express, December 4, 2009, Page 12
Kakoly Chatterjee, New Delhi
Rapid MetroRail Gurgaon Ltd, the joint venture between the largest real estate company DLF and Infrastructure Leasing & Financial Services Ltd (IL&FS) failed to achieve financial closure for its Gurgaon metro rail link project by November 30 deadline. The metro project is currently a 26:74 partnership between DLF and IL&FS.
“We will need some more time to achieve financial closure. It will probably be done by March next year,” a senior official of Rapid MetroRail Gurgaon Ltd said.
However, financial closure is not the only stumbling block for this project, which is awaiting approval from the Centre for a detailed project report analysis. Sources in the urban development ministry said the Haryana government has already signed the concession agreement.
“Funding is not an issue for us. The Haryana government has already given its approval. We are awaiting Central government’s nod. Once we get it we will start the project,” a spokesperson of the company said.
Meanwhile, the urban development ministry is consulting with the law ministry on a couple of issues before it signs the concession agreement. The metro project which will cost Rs 900 crore will have 5 km of operative area and cover 6 stations.
In 2007, DLF had submitted the proposal of the metro link to the Haryana government to construct the metro link on its own. However, after the financial meltdown when the realty sector was hit hard, the largest listed company decided to become a minority partner in the joint venture with IL&FS. The idea germinated mainly because DLF wanted to increase connectivity in Guragaon as it was developing a lot of residential and commercial space in the area.
Stalled plan
* The metro project is currently a 26:74 partnership between DLF and IL&FS
* The plan is awaiting nod from the Centre for a detailed project report analysis
* The project will cost Rs 900 cr, will have 5 km of operative area & cover 6 stations
Now, home loans from SKS Microfinance
Now, home loans from SKS Microfinance
The Economic Times, December 4, 2009, Page 8
Our Bureau HYDERABAD
EVEN as realty markets are trying to shake off the downturn impact, SKS Microfinance, the largest microfinance company in terms of assets, is set to offer its customers loans for their housing needs. The company on Thursday said it has joined hands with the Housing Development Finance Corporation (HDFC) in its attempt to bridge the critical gap in the housing finance needs of the poor.
The pilot project will be conducted in Andhra Pradesh among credit members who have been with SKS for at least three years. These loans will be towards extension and improvement of dwelling units which double as income-generating units like eateries, kirana shops, papad and agarbathi-making units, among others.
Most microfinance clients belong to the low-income category and do not have any documented source of income.
HDFC will provide technology support and the first tranche of funding worth Rs 10 crore. This loan to SKS would help fund about 1,250 members, considering an average ticket size of Rs 80,000. “While SKS will borrow at variable rates, we are lending at fixed rates of interest for a five-year period,” said Suresh Gurumani, CEO, SKS.
SKS member clients can avail loans ranging from Rs 50,000-1.5 lakh, with tenure between three and five years, which will be delivered at their doorstep. However, unlike other products of SKS, the liability would not be at the group level and it would be offered as individual mortgage-backed loans.
“The launch of our housing microfinance initiative follows massive demand from our members who have no access to formal institutional funding. The interest rates charged are risk-adjusted rates that compare well with industry rates for urban self-employed and non-formal sector clients,” said Mr Gurumani.
According to him, the operational costs and risks are much higher as borrowers of these loans do not have any income papers or bank accounts and all transactions are in cash. Also, while we borrow at variable rates, we are lending at fixed rates of interest for a five-year period,” he added.
“This association helps HDFC to contribute to the financial inclusion story of India by reaching services to the grassroot levels. We hope that similar efforts of other MFIs would facilitate in shaping the housing microfinance sector,” Renu Karnad, joint managing director, HDFC, said. Other MFIs including Basix and Spandana had offered similar products earlier.
The Economic Times, December 4, 2009, Page 8
Our Bureau HYDERABAD
EVEN as realty markets are trying to shake off the downturn impact, SKS Microfinance, the largest microfinance company in terms of assets, is set to offer its customers loans for their housing needs. The company on Thursday said it has joined hands with the Housing Development Finance Corporation (HDFC) in its attempt to bridge the critical gap in the housing finance needs of the poor.
The pilot project will be conducted in Andhra Pradesh among credit members who have been with SKS for at least three years. These loans will be towards extension and improvement of dwelling units which double as income-generating units like eateries, kirana shops, papad and agarbathi-making units, among others.
Most microfinance clients belong to the low-income category and do not have any documented source of income.
HDFC will provide technology support and the first tranche of funding worth Rs 10 crore. This loan to SKS would help fund about 1,250 members, considering an average ticket size of Rs 80,000. “While SKS will borrow at variable rates, we are lending at fixed rates of interest for a five-year period,” said Suresh Gurumani, CEO, SKS.
SKS member clients can avail loans ranging from Rs 50,000-1.5 lakh, with tenure between three and five years, which will be delivered at their doorstep. However, unlike other products of SKS, the liability would not be at the group level and it would be offered as individual mortgage-backed loans.
“The launch of our housing microfinance initiative follows massive demand from our members who have no access to formal institutional funding. The interest rates charged are risk-adjusted rates that compare well with industry rates for urban self-employed and non-formal sector clients,” said Mr Gurumani.
According to him, the operational costs and risks are much higher as borrowers of these loans do not have any income papers or bank accounts and all transactions are in cash. Also, while we borrow at variable rates, we are lending at fixed rates of interest for a five-year period,” he added.
“This association helps HDFC to contribute to the financial inclusion story of India by reaching services to the grassroot levels. We hope that similar efforts of other MFIs would facilitate in shaping the housing microfinance sector,” Renu Karnad, joint managing director, HDFC, said. Other MFIs including Basix and Spandana had offered similar products earlier.
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