Pune International Convention Centre To Drive PCMC Real Estate

Anil-Pharande

 

 

Anil Pharande, CMD – Pharande Spaces

Historically, industrial convention centres have consistently proved to be giant economic drivers to local economies. There are significant economic benefits to the immediate and expanded communities in and around these centres. Delegates and exhibitors who vist these convention centres from out of town and other countries bring in huge amounts of revenue.

This flow of external capital into the location gives rise to a multiplier effect, because the revenue which is generated then proceeds to circulate through various other businesses in that area. An entirely new and vibrant supplier chain is established for the maintenance of hotels and facilities management companies that service these centres.

The revenue flow percolates down to the employees of these establishments, and down to local groceries and similar community-centric businesses. In other words, convention centres upgrade the entire demographic profile of the locations in which they are built.

convention-centre-300x160The Pune International Exhibition and Convention Centre (PIECC) at Moshi in the Pimpri Chinchwad Municipal Corporation will number among Asia’s biggest industrial convention centres. It will covering a total of 240 acres and is being developed by the Pimpri-Chinchwad New Town Development Authority (PCNTDA) through a special purpose vehicle (SPV). The PCNTDA has a 94% stake in this project.

The PCNTDA has an immaculate track record for timely and well-planned development in the Pimpri chinchwad Municipal Corporation. Despite,certain initial delays, the fact that the PCNTDA is a majority stakeholder in the PIECC guarantees that this project will see completion. This convention centre is going to be a game-changer not only for the industrial belt in PCMC but for Pune in general.

The automobile industry in Pune will benefit most significantly from the availability of an international convention centre. This industry has been growing in leaps and bounds, with every national and international automobile giant now having a manufacturing plants in and around Pune.

Pune is now considered as India’s foremost automobile industry nexus and numbers among the world’s leading automotive centers. In fact, the Chakan-Talegaon region has emerged as one of the most vibrant automotive clusters on the face of the planet. The list of leading automobile manufacturers with plants in this region is a veritable Who’s Who os the automobile world:

  • Tata Motors – PCMC
  • Land Rover – PCMC
  • Bajaj Auto – Akurdi and Chakan
  • Mahindra Two-Wheelers (formerly Kinectic Motors) – PCMC
  • Mercedes-Benz – PCMC
  • General Motors – Talegaon
  • Volkswagen – Chakan
  • Mahindra & Mahindra – Chakan
  • Premier Motors – PCMC
  • Fiat – Upcoming at Ranjangaon

Obviously, the venue for the Pune International Exhibition and Convention Centre was chosen for its strategic location near these automotive giants. Once this convention centre is complete, Moshi in PCMC will become the natural hub for automobile conventions. This centre will have the capability of hosting conventions on an international scale, with a total of seven massive exhibition halls and a central open exhibition ground. It will have a staggering seating capacity of 20,000. In order to provide a complete global experience to the delegates, the convention centre will also have a five-star hotel, a golf course and a retail mall adjoining it.

A significant part of the land adjacent to the Pune International Exhibition and Convention Centre will be offered to private developers to build commercial and residential projects in Moshi. It can well be imagined what an effect such an advantageous location will have on the residential property prices in Moshi, PCMC. Obviously, the convention centre will generate massive white-collar employment, and the demand for quality housing around it will rise astronomically.

This makes the area around the Pune International Exhibition and Convention Centre one of the most important property investment hot-spots ever to have surfaced in Maharashtra. The effect that it will have on property prices will be more pronounced than even that of the Hinjewadi IT park.

Township projects such as Woodsville, which is located exactly opposite to the convention centre site, obviously have an early-mover advantage. In the years to come, the investment value of a home in such strategically located township projects in Moshi will rise astronomically.

Anil Pharande is Vice President of CREDAI Pune Metro and Chairman of Pharande  Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

The Pune Township Mania

The demand trend of Pune residential property is slowly but surely changing to township properties. A growing segment of Pune property buyers now says that nothing less than the autonomy, independence and convenience of a township property will do.

Woodsville-layout-300x168

Who are these people? Mostly employees from Pune’s booming IT and manufacturing sectors. The highest demand is from home buyers employed in Hinjewadi, Kalyani Nagar, Viman Nagar, Hadapsar and the PCMC MIDC belt. These home buyers are fed up with the congestion or the inner city and are seeking homes in the new and established township projects that are taking Pune real estate by storm.

What is it about these Pune townships that make them so different from other property options available on the market? Many of these township projects are located in the Pimpri Chinchwad Municipal Corporation in locations such as Ravet, Moshi and Punavale. Existing residents affirm that nothing within the main city can match the bliss of living in these magically located projects.

Nature is, indeed, still master of the situation in these areas. Real estate development in the PCMC area is tightly regulated. There is abundant green cover and almost all of these projects offer unobstructed view of distant hills, while traffic is just a dim, far-off echo from the Express Highway. The environment is absolutely perfect for residential family units. Naturally, prominent developers have snapped up prime land exclusively for the building of township projects in the PCMC.

Other factors have added to the popularity of these locations. The Express Highway, of course, is a vital one. It is the umbilical cord between Pune and other major metropolises, beginning with Mumbai, and is the very lifeblood of Pune’s commercial progress. In addition, the Mumbai-Bangalore Highway (in the close neighborhood) brings in further commercial growth and intercity connectivity.

With the kind of exposure that localities lying along these two major highways get, their popularity comes as no surprise. However, it should also be remembered that it was the Expressway which brought about the existence of the Hinjewadi Infotech and Biotech Park – which is the very important economic driver for Pune City today. Professionals from the city’s IT and manufacturing sectors need homes close to their offices, and also relative privacy in their time away from work. This has been a heavy driving factor behind the demand for township properties in the Pimpri Chinchwad Municipal Corporation.

In the not-so-distant past, township properties were a residential genre reserved exclusively for the rich. This has changes drastically with their rising popularity. The fact is, owning a township property in the PCMC has now become a feasible option for the city’s middle class. High competitiveness among housing finance institutions has ensured that loans for the purchase of homes in these township properties are easily available to the middle class.

All of the above reasons have combined to make township properties the No. 1 choice for Pune property buyers, and therefore a priority for many developers. Recognizing the wave of the future, prominent builders in the PCMC have appropriated land in these high-demand localities and are developing incredibly modern township projects there. These multi-acre township projects offer within their boundary walls every convenience of modern living to the property buyers. In fact, they can justifiably be seen as lifestyle resorts in which one can actually buy units.

The inherent commercial potential of this Pune township property boom cannot be ignored. Obviously, it presents a great opportunity to builders as well as real estate investors. In fact, a huge number of outstation investors – most notably from Mumbai – have already taken note of the Pune township trend. If Bangalore has earned the label of Silicon Valley of the East, Pune is well on the way of being called India’s Township City.

Anil-Pharande

 

 

Anil Pharande is Vice President of CREDAI Pune Metro and Chairman of Pharande  Spaces, a leading construction and development firm that develops township properties in the PCMC area of Pune, India.

Pune Real Estate Market 2010 And Outlook for 2011

woodsville-300x116

2010 saw increased buoyancy on Pune’s residential market, which has been in steady recovery since 2H09. The confluence of price correction ( 10%-25% in 2009) along with rational mortgage rates offered by banks has increased affordability. Moreover, with the improving economic conditions as evident from the increased absorption of office space, there is improved employment security, creating fresh demand for housing in the year 2010. There has been spate of residential launches in the city, with a 10-12% increase in capital values witnessed across all the residential pockets of the city.

Buyers in the mid-income segment of housing (INR 3-5 million) have returned in force, as have those for premium category housing. In fact, the year 2010 saw a significant number of luxury home projects in Pune. Some of the notable ones are Marvel Aurum at Koregaon Park, Marvel Bounty and Azure on Magarpatta Road, Marvel Ganga Sangria at Undri, the recently launched Yoo Pune by Panchshil at Hadapsar and Windmere by Vascon developers at Koregaon Park.

Commercial Real Estate

The total absorption of office space in Pune, recorded at approximately 2.5 million sq ft during the first three quarters of 2010, clearly indicates the onset of a demand revival. Occupiers strongly believe that this is the right time to execute their expansion plans, since property prices were at their lowest valuations in 2010.

An important feature of the absorption in 2010 has been the revival of demand for SEZ spaces. The impact was clearly visible with a majority of Pune’s office space transactions (around 60%) recorded in SEZs in 2010. In 2011, demand is expected to strengthen across markets, along with an increase in SEZ absorption. The suburban micro-market, comprising primarily of the Hinjewadi region, is likely to benefit as it houses most of the upcoming SEZ supply. The secondary business district (SBD), on the other hand, currently has a significant share of the city’s ready-to-occupy as well as under-construction stock located in SEZs (EON Cluster D, Cluster B and Cluster A and Magarpatta’s Cybercity Towers VIII and IX) and various STPI units. This will also contribute significantly to the overall absorption levels in the city during the coming quarters.

Pune’s office market is expected to see a significant supply to the tune of aprroximately 14.53 million sq ft in the next two years, with most of the supply located in SBD and the suburbs. Some of the major developments in SBD amongst the IT completions would include Commerzone buildings 5, 7 and 8 at Yerwada and Weikfield IT Park’s Block B at Viman Nagar. Completions amongst SEZs would include EON clusters A and B and Magarpatta’s Cybercity buildings 8 and 9 at Hadapsar. The majority of the future supply in the suburbs would comprise of various IT SEZs by DLF, Paranjape (Blue Ridge), Embassy Group (Embassy Tech Zone) and Shapoorji Pallonji Group (SP Infocity).

Rentals are likely to remain stable across all precincts in the coming quarter, but will gradual increase towards mid-2011 and 2012.

Retail Real Estate

Pune’s organized retail landscape will undergo a significant transformation. Rentals and the commercials in retail has stabilized, and retailers are now occupying space more aggressively.

Some quality retail developments lined up for completion in 2011. The notable ones include Phoenix Market City , K Raheja’s Inorbit on Nagar Road, Amanora Market City at Hadapsar and Elbit’s PlazaCentre at Koregaon Park. Also, G Corp will become operational with approximately 0.4 million sq.ft of retail.

As a result, a number of international brands will set up shop in Pune for the first time. The notable ones will include Zara, Blue O and Spar, which will open their doors to a new line of fashion and entertainment.

Moreover, some well-known national brands will launch for the first time in Pune in 2011. Reliance Trendz, PVR, Reliance Footprint, Jack and Jones, etc. will cater to the young and the vibrant Punekar for the first time.

Future Group has added approximately 0.5 million sq.ft to their Pune portfolio. The group has recently launched their mega Pantaloon store at Senapati Bapat Road. Trent has also jumped onto the Pune retail bandwagon. The Tata Group already has one hypermarket under the name Star India Bazaar operational at Pune, and is going in for three more.

Mohammed Aslam, Head – Pune, Jones Lang LaSalle India

Used with permission from India Real Estate Compass by Jones Lang LaSalle India

Pune Real Estate: PMC Loses Out On Crores From Leased Properties

(Mid-Day, Nov 29, 2010)

emptied

Civic body kisses Rs 36 crore goodbye every year because of its policy of leasing properties for 99 years and poor recovery system

The Pune Municipal Corporation (PMC) seems to be in a benevolent mood these days. The civic body is getting only Rs 4 crore annually from leased properties, but it could earn almost Rs 40 crore per year if it follows the market value rate. This means it collects just 10 per cent of the revenue that can be collected, an annual loss of Rs 36 crore.

This is because the PMC leases properties for 99 years and does not have a proper recovery system.

Vivek Velankar, RTI activist and president of Sajag Nagrik Sangh, said that property should not be leased out for more than five years. Also, it should be let out at market rate with a 10 per cent increase in rent every year. “The PMC does not have any right to lease out properties for 99 years. Leasing of property for such longer period amounts to indirect selling and the lease becomes irrevocable and perpetual,” he said.

BJP corporator Ujjwal Keskar said the PMC was hacking its source of big income by leasing properties for 99 years at meagre rent. “It’s pathetic the PMC does not even have a proper system to recover long pending arrears of rent,” he said.

The municipal body does not even have an updated list of properties owned by it and the arrears are increasing every year.

However, Keskar has released a list of 201 property holders who have arrears since last 28 years.

RTI activist and president of NGO Nagri Hakka Samiti Sudhir Kaka Kulkarni said the rent arrears go up to Rs 8.5 crore every year.

Prakash Barne, who runs a canteen in the PMC main building, has arrears up to Rs 1.07 lakh accumulated over 12 years. Sai Service housed in PMC-owned complex Savarkar Bhawan is to pay Rs 10.44 lakh since last 11 years.

Kulkarni said that none of the commissioner had taken any interest in making an updated list of leased out properties. “These lands are given to rich and popular personalities without considering the proper criteria.

Many of the leased properties have been given to family members of PMC officials and elected members,” he said.

Kulkarni said there was no system to verify if the property was even being used by the same person to whom it was leased. “We want a responsible officer who can handle this efficiently and give a clear picture of these properties to the citizens,” he said.

Pune Municipal Corporation Property Lease Policy Draws Flak

Pune PropertyCivic activists on Sunday resolved to strongly oppose the proposal of the Pune Municipal Corporation (PMC) to increase the duration of lease of its properties from 30 years to 99 years, as it would result in perpetual ownership of those properties by private owners.

Sajag Nagrik Manch (SNM) had organised a meeting of activists on the issue. Cartoonist and activist Mangesh Tendulkar chaired the meeting. President of SNM, Vivek Velankar, convener Jugal Rathi and civic activists Vijay Kumbhar were present on the occasion.

Kumbhar has been following up the issue for years. He told activists that once the PMC properties are leased out for 99 years, the civic body would lose them forever. If this proposal is approved, then there would not be any public property left for the next generation.

Hence, he said, citizens in large numbers should object to the proposal. He said the last date for filing suggestions and objections to the proposal is December 2.

Velankar said civic activists should gather signatures of citizens in large numbers to express solidarity against the proposal. It is necessary for citizens to raise their voice against the proposal for the sake of the next generation.

He said activists should gather 25,000 signatures by November 30. The draft of the objection to the proposal would be available at the SNM office. The objections can also be sent by email.

Tendulkar said the common man has to face criminals who have occupied positions of power by manipulating the democratic process. Common citizens have become frustrated. It is the responsibility of the NGOs to stand firmly in such a situation.

Vice president of the city unit of the Bharatiya Janata Party, Sandip Khardekar, said activists should use all means to take the issue to its logical end.

Activist Sudhir Kulkarni said the civic body should explain the purpose behind the proposal. It should declare the list of properties it has leased out and to whom.

BOT Basis Needed For Pimpri-Chinchwad Commercial Complex: Sharma

(Times of India, Oct 21, 2010)

PUNE: The Pimpri-Chinchwad municipal commissioner Ashish Sharma will shortly send his report to the state government about the commercial complex being developed at Chinchwad on build operate transfer (BOT) basis.

The state government has sought Sharma’s comments about the commercial complex project following a letter sent by former Congress corporator Raju Golande to chief minister Ashok Chavan requesting him to direct the Pimpri-Chinchwad Municipal Corporation (PCMC) to cancel bids for the commercial complex and develop the complex on its own.

Explaining the reason for developing the commercial complex on BOT basis instead of using civic funds, Sharma said, “The Zone B office of the civic body is located in a municipal school building near Chapekar chowk and there is a need for a separate building. Initially, the PCMC had taken a decision to build the office on the open plot near the new bus terminus and the construction had begun, but we found that there were roads on three sides of the plot and the site was not ideal for an office.”

Sharma added that the civic body meanwhile got a large portion of land from Elpro company for civic amenities under the industrial to residential conversion scheme. “So, we decided to build the office there, and since the previous site was ideal for a commercial complex we decided to develop it,” he said.

Meanwhile, Golande said, “The complex is under construction for the past five years. PCMC needs to spend around Rs 20 lakh to complete the project, and it can earn Rs 20 crore from leasing shops in it. Hence, it should develop the remaining part of the project on its own.”

Commissioner Sharma, however, rejected the demand saying that PCMC would need to spend about Rs 2 crore to complete the project and there was nothing wrong in developing the complex on BOT basis.

Pune Real Estate On A High Trajectory

(TOI, Oct 13, 2010)

PUNE: Prices of the city’s residential property are witnessing a rise, if market observations of leading realty research firms are an indication. Rentals of commercial space are also witnessing an upward movement, though the market cannot yet be called a heated one, the firms have said.

Rates in different parts of the city have recorded anything between 15 to 25 per cent rise in the past one year or so, rising customer interest being one of the factors, the observers added.

“As far residential properties are concerned, the sector is moving again for the last six months or so. Previously, we had thought the returning demand will fizzle out by April, but that has not been the case. The impression one gets is that Pune’s home buyers are once again convinced of the long-term potential of their investments,” Mohammed Aslam, Pune head for real estate advisory Jones Lang LaSalle India told TOI.

“I won’t say that the market is back with all guns blazing, but matters have improved considerably. Residential sales and retail lease figures for the month of July 2010 look astonishingly different than from this time last year, Aslam of JLL said.

For mid-income homes, the hottest-selling locations are now in western Pune, he observes. Buyers have the widest choice there because of the large number of projects popping up all over Hinjewadi, Wakad, Pimple Nilakh, Pimple Saudagar, Aundh and Balewadi. Secondly, this influx of projects is serving to keep prices affordable. In western Pune, average residential property rates start at around Rs. 3,200 per sq.ft. and hover around Rs 4,000 per sq.ft. The most popular price tags for homes in these areas are between Rs. 30 to 40 lakh.

Manish Aggarwal, executive director, investment services, Cushman & Wakefield India (C&W), said, “With India’s economic environment showing signs of stability and buoyant growth, coupled with improvement in affordability and access to finance, housing demand in the country is expected to witness a revival in the near future.”

According to the C&W report, Pune is expected to witness the highest demand in residential sector after National Capital Region (NCR) and Mumbai. Pune is estimated to witness a demand of 2,70,000 housing units by 2014, the report says. “The growth in demand for residential units in Pune can be attributed to rapidly growing city population (both migratory & local), coupled with improvement in economic environment with stimulate growth of both IT and manufacturing sectors in this city,” the report adds.

Real estate advisor Ravi Verma, a former official of the National Association of Realtors, said, “The residential market is moving briskly and both high-end and economy segments within the residential sector are doing well. There is however a warning here, that the prices are rising slowly but definitely.”

Offices segment, on the other hand, has yet to pick up speed, as there is a sizeable overhang of stock created or planned prior to the economic slowdown of 2008-09. Verma said the information technology sector which drove most of the deals in the early part of the decade is still slow in absorption of space and so are the retail and commercial spaces.

Aggarwal said, “The overall demand for commercial office space is subdued in comparison to the supply which is estimated to be approximately 400 million sq.ft during 2010 to 2014, implying caution and the need for quality supply at the right prices.” According to him, the demand for retail space across the country is estimated to be 55 million sq.ft; of which the top seven cities will witness approximately 53 per cent.

The total mall supply expected between the period under review is approximately 93 million sq.ft. NCR, followed by Pune, is likely to witness the highest demand-supply gap over the next five years, with supply overshooting demand.

PMPML Goes In For An Image Makeover

PUNE: The Pimpri Chinchwad Municipal Corporation’s decision to allow commercial use of land owned by the Pune Mahanagar Parivahan Mahamandal Limited (PMPML) has pepped up the transport body chief Dilip Band, who has said that Pune’s bus transport is in the process of transforming into an efficient public transport organisation with quality buses and up-to-date commuter facilities.

Launching the Pune bus guide, developed jointly by the PMPML and Janwani, an initiative of the MCCIA, Band said, “Our prime focus is to encourage college-goers and those in IT services to travel by city buses so that the number of private vehicles on roads will reduce.”

Band said that the delivery of 500 new buses, being procured under Jawaharlal Nehru National Urban Renewal Mission ( JNNURM), will begin from October. “The buses will have an unique colour combination and doors on both sides,” he said.

The buses and bus-shelters will have public announcement systems, and LED displays. The PMPML, he said, will also be allotting work for intelligent traffic system by which it would be possible to track the movement of buses in an efficient manner. The buses will also have entertainment facilities for commuters.

In addition to the 650 buses already sanctioned by the Union urban development department, the government has in principle sanctioned 200 more buses, Band said. He added that a proposal is in the offing to run air-conditioned buses under public-private partnership basis.

Band said that the design of the new bus-shelters has been finalised and both Pune and Pimpri-Chinchwad Municipal Corporations (PMC and PCMC) will be taking up the work to install them.

PCMC will complete the installation of bus-shelters by November-December, while PMC will soon be inviting tenders for the work.

The Union government, he said, has sanctioned 2.5 Floor Space Index (FSI) for bus depots by which, PMPML will be able to redevelop the existing depots with parking facilities for buses and commuters. Some portions of the building will also be used for commercial purposes.

“PMPML is going to benefit financially in a big way by redevelopment of the bus depots,” he said. PMPML will be able to provide “park and ride” facility by redeveloping the depots.

While PCMC has already sanctioned 2.5 FSI for bus depots in Pimpri-Chinchwad, PMC will be discussing the proposal soon, he said. The bus depots will be redeveloped within a period of one year, he added.

Justifying the e-ticketing system which has been adopted by PMPML despite opposition from certain sections of people, Band said that recently the transport organisation has recently awarded an advertisement contract which will fetch Rs 24 crore for the next three years.

“This is almost double the earlier advertisement contract which fetched Rs 18 crore for the last five years,” he said. Band said that now there would be more transparency in the functioning of the PMPML.

PMPML’s joint managing director Satish Kulkarni said there would be qualitative and quantitative improvements in PMPML as only better mobility of people would help in the health and environment related problems facing the city.

PMPML, at present is transporting just 20 to 22 per cent of people. This number has to increase, he said. Responding to a suggestion by MCCIA president Mukesh Malhotra that all buses should be clean, Kulkarni said that cleanliness of buses will be the top priority for the PMPML.

PUNE: The Pimpri Chinchwad Municipal Corporation’s decision to allow commercial use of land owned by the Pune Mahanagar Parivahan Mahamandal Limited (PMPML) has pepped up the transport body chief Dilip Band, who has said that Pune’s bus transport is in the process of transforming into an efficient public transport organisation with quality buses and up-to-date commuter facilities.

Launching the Pune bus guide, developed jointly by the PMPML and Janwani, an initiative of the MCCIA, Band said, “Our prime focus is to encourage college-goers and those in IT services to travel by city buses so that the number of private vehicles on roads will reduce.”

Band said that the delivery of 500 new buses, being procured under Jawaharlal Nehru National Urban Renewal Mission ( JNNURM), will begin from October. “The buses will have an unique colour combination and doors on both sides,” he said.

The buses and bus-shelters will have public announcement systems, and LED displays. The PMPML, he said, will also be allotting work for intelligent traffic system by which it would be possible to track the movement of buses in an efficient manner. The buses will also have entertainment facilities for commuters.

In addition to the 650 buses already sanctioned by the Union urban development department, the government has in principle sanctioned 200 more buses, Band said. He added that a proposal is in the offing to run air-conditioned buses under public-private partnership basis.

Band said that the design of the new bus-shelters has been finalised and both Pune and Pimpri-Chinchwad Municipal Corporations (PMC and PCMC) will be taking up the work to install them.

PCMC will complete the installation of bus-shelters by November-December, while PMC will soon be inviting tenders for the work.

The Union government, he said, has sanctioned 2.5 Floor Space Index (FSI) for bus depots by which, PMPML will be able to redevelop the existing depots with parking facilities for buses and commuters. Some portions of the building will also be used for commercial purposes.

“PMPML is going to benefit financially in a big way by redevelopment of the bus depots,” he said. PMPML will be able to provide “park and ride” facility by redeveloping the depots.

While PCMC has already sanctioned 2.5 FSI for bus depots in Pimpri-Chinchwad, PMC will be discussing the proposal soon, he said. The bus depots will be redeveloped within a period of one year, he added.

Justifying the e-ticketing system which has been adopted by PMPML despite opposition from certain sections of people, Band said that recently the transport organisation has recently awarded an advertisement contract which will fetch Rs 24 crore for the next three years.

“This is almost double the earlier advertisement contract which fetched Rs 18 crore for the last five years,” he said. Band said that now there would be more transparency in the functioning of the PMPML.

PMPML’s joint managing director Satish Kulkarni said there would be qualitative and quantitative improvements in PMPML as only better mobility of people would help in the health and environment related problems facing the city.

PMPML, at present is transporting just 20 to 22 per cent of people. This number has to increase, he said. Responding to a suggestion by MCCIA president Mukesh Malhotra that all buses should be clean, Kulkarni said that cleanliness of buses will be the top priority for the PMPML.

PMPML Plots In PCMC To Open For Commercial Property Use

PUNE: The general body of the Pimpri-Chinchwad Municipal Corporation (PCMC) has cleared the decks for commercial utilisation of land reserved for the Pune Mahanagar Parivahan Mahamandal Limited (PMPML) depots and termini.

The GB has approved a resolution initiating changes in the development control (DC) rules, which is necessary to allow 2.5 floor space index (FSI) on these prime plots.

As per the resolution, only the Pune Mahanagar Parivahan Mahamandal ltd (PMPML) and the PCMC will be able to develop the plots, said Pimpri-Chinchwad mayor Yogesh Behl.

A short-notice proposal was tabled at the general body on Monday following a letter sent by Dilip Band, divisional commissioner and president and managing director of PMPML. Band said in the letter that the transport body was suffering huge losses and there was a need to increase its income from sources other than buses.

The letter further said that the bus depots in Pune and Pimpri Chinchwad are located in prime locations. If 2.5 FSI is granted, depots can be developed on the ground floor while the three to four floors above can be used for parking; the portion above that will be developed on a build operate transfer (BOT) basis for commercial purpose.

“If 2.5 FSI is approved then funds can be generated to help the PMPML cover its losses. It would also mean better public transport in Pune and Pimpri-Chinchwad,” the proposal stated.

To get the FSI approved, changes will have to be made in the DC rules of the PCMC under provisions of section 37 of MRTP Act 1966. In case a site is situated in the bus rapid transit system (BRTS) zone then the premium and other rules which are applicable for the BRTS zone shall not be applicable for the bus stand/terminus/depot.

Satish Kulkarni, joint managing director of the PMPML, confirmed that the transport body has sought permission to commercially exploit all the plots reserved for bus termini/ depots and other purposes for the transport body within the PCMC limits.

A PMPML official said that all the properties and plots that were reserved for the erstwhile Pimpri Chinchwad municipal transport (PCMT) were owned by the PCMC. The PMPML has received possession of only three depots, namely Nigdi, Nehrunagar and Bhosari and one central workshop at Nigdi.

The PMPML had earlier sought possession of six plots in various parts of the municipal limits from the PCMC but the general body has kept the proposal pending.

Finolex Industries Selling Pune Land To Raise 4 Billion Rupees

Finolex Industries Ltd., India’s biggest maker of pipes made of polyvinyl chloride, surged to its highest in almost three years after the company said it expects to raise about 4 billion rupees ($86 million) selling land.

The company revived its plan to sell 78 acres (31 hectares) of industrial land after an increase in real estate prices, said P. Subramaniam, chief financial officer, said in an interview. Finolex had in 2008 proposed selling the property, he said.

The land sale will help Finolex improve its cash flow, said Tejas Doshi, vice president of equity research at Sushil Financial Services Pvt. The company, which reported a 67 percent drop in profit in the three months through June, also plans to spend 800 million rupees to build a new factory, Subramaniam said by phone today.

The land sale will help “improve the balance sheet,” Mumbai-based Doshi said. “It will also help their expansion plans.”

Finolex will raise 500 million rupees by selling non- convertible bonds to build the plant and will fund the balance from its profit, Subramaniam said. The company hasn’t “finalized” the land sale yet, he said.

Source