Citizens' Issues
India will need 26.53 million houses by 2012, says ministry of housing report

Various housing schemes have fallen drastically short of the targets

The housing requirement by the end of the 11th Five-Year Plan in 2012 will pile up to 26.53 million units, an increase from the 24.71 million units requirement at the end of the previous plan in 2008, according to a government report.

The report, prepared by a technical group of the Ministry of Housing and Urban Poverty Alleviation, attributed the increasing housing deficit to the failure of various schemes like the Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) which had set a target of 3.10 lakh dwelling units, but has achieved only 5,038 units so far. A total Rs1,378 crore was allocated under the 11th Plan for ISHUP, which provides interest subsidy on housing loans to weaker sections and low-income groups.

The Affordable Housing in Partnership scheme that was launched in 2009 with a target of building one million housing units has seen 14 projects comprising 19,100 dwelling units approved so far. The project cost till now is estimated at Rs792.04 crore, with Rs53.96 coming from the central government. The scheme is meant to create a land bank for affordable housing projects and provide central government support on infrastructure connectivity.

The ministry has decided to enhance the schemes that provide affordable housing to urban poor and slum redevelopment. The original allocation of Rs18,141.34 crore under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was enhanced to Rs23,184.66 crore, whereas Rs16,356.35 crore has been allocated for Basic Services to the Urban Poor (BSUP) and Rs6,828.31 crore for Integrated Housing and Slum Development (IHSDP). So far, 15.6 lakh houses have been sanctioned under the schemes with the centre contributing Rs20,787.90 crore towards these schemes.

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COMMENTS

moladi

6 years ago

The issue regarding cost is simple - The lack of skilled artisans to reduce the cost of construction. The solution is to industrialize the building process in order to deskill the industry - moladi.net

India’s inbound M&A volume touches $23 billion this year: Report

The UK has emerged as the top acquirer into India with deals worth $15 billion, much more than the corresponding period last year, when the year-to-date inbound deal volume stood at $151 million, according to global deal tracking firm Dealogic

New Delhi: India’s inbound mergers and acquisitions (M&A) volume has surged to $23.4 billion this year with the United Kingdom emerging as the top acquirer into India, reports PTI.

According to global deal tracking firm Dealogic, India’s inbound M&A volume has surged to $23.4 billion till last week, slightly behind the record volume announced in the same period of 2007.

The United Kingdom has emerged as the top acquirer into India with deals worth $15 billion, much more than the corresponding period last year, when the year-to-date inbound deal volume stood at $151 million, the report said.

BP’s $9 billion bid for 23 oil and gas blocks from Reliance Industries in February was the most significant transaction by the United Kingdom into India.

The top acquirer nations into India so far this year was the UK, which was responsible for 64% of inbound M&As, followed by the United States (17%), Germany (6%), Japan (4%), Denmark (3%).

Though year-on-year there has been an increase in inbound M&A volume so far this year, on a quarter-on-quarter basis there has been a significant decline.

India’s inflow M&A volume totalled to $3.3 billion in the second quarter of this year, down a whopping 83% from the record quarterly volume of $20.1 billion achieved in the first quarter of 2011, Dealogic said.

Meanwhile, the equity capital market (ECM) volume for India so far this year stood at $7.8 billion, almost half of the record high achieved in the same period under consideration in 2010 at ($15.4 billion).

Deal activity has also dropped to 55 deals in this year so far, a 40% decline year-on-year, Dealogic said.

The share of initial public offers in the India’s ECM volume stood at 9.8%, while follow-on offers accounted for 81.2%.

The report further noted that the Indian core investment banking revenue reached $271 million so far this year—down 24% from the year-to-date record achieved in 2010 ($368 million).

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Share prices to remain range-bound: Tuesday Closing Report

The support for the Nifty now lies at 5,418 and resistance at 5,550

The market closed with modest gains amid high volatility on the back of a sharp rise in headline inflation numbers for May and worries that the Reserve Bank of India (RBI) could toughen its stance at its monetary policy review on Thursday.

The market snapped its four-day losing streak, opening higher this morning, tracking the gains in Asian markets on the back of Chinese inflation numbers that were in line with analysts' expectations. The Sensex opened 11 points higher at 18,277 and the Nifty added three points to its Monday's close to open at 5,846. Early gains were supported by buying in oil & gas, metals and banking stocks.

The market touched its intra-day high in the first half hour with the Sensex climbing to 18,380 and the Nifty to 5,520. However, some profit-taking resulted in the indices paring some of the gains. While the market maintained its positive momentum, a rise in the monthly inflation numbers for May pushed the benchmarks southwards. The choppiness continued on concerns of higher prices of food as well as non-food items.

The indices touched the day's low in noon trade with the Sensex and the Nifty paring all their gains, almost touching their previous closing figures. The positive opening in key European markets and higher US futures lifted the domestic market in late trade. The market closed in the positive, with the Sensex adding 43 points to 18,309 and the Nifty gaining 18 points to 5,501, above the psychological 5,500 level.

The advance-decline ratio on the National Stock Exchange was a positive 777:598.

The market is expected to continue its range-bound movement over the next few days. The next support for the Nifty lies at 5,418 and resistance at 5,550.

The broader indices outperformed the Sensex, with the BSE Mid-cap index rising 0.60% and the BSE Small-cap index gaining 0.37%.

In the sectoral space, BSE Capital Goods (up 1.03%), BSE Power (up 0.96%), BSE Fast Moving Consumer Goods (up 0.86%), BSE Bankex (up 0.83%) and BSE Realty (up 0.65%) were the top gainers. BSE Consumer Durables (down 1.42%), BSE Oil & Gas (down 0.77%) and BSE Auto (down 0.19%) were the losers.

The top gainers on the Sensex were Reliance Infrastructure (up 2.35%), Bajaj Auto (up 2.26%), Jindal Steel (up 1.97%), ICICI Bank and ITC (up 1.52% each). Tata Motors (down 2.84%), Hindalco Industries (down 2%), HDFC (down 1.42%), Reliance Industries (down 1.41%) and Cipla (down 1.09%) ended at the bottom of the index.

The top gainers on the Nifty were Reliance Infra (up 2.63%), Axis Bank (up 2.38%), Bajaj Auto (up 2.30%), Jindal Steel (up 2.23%) and Reliance Capital (up 1.95%). The major losers were Tata Motors (down 2.89%), IDFC (down 2.05%), Hindalco (down 2.02%), Cipla (down 1.60%) and RIL (down 1.53%).

Citigroup today said that it has reduced its 11.4% stake in Housing Development Finance Corporation (HDFC) by 1.5% to 9.9%. The reduction in its holdings in HDFC to below 10% is a part of Citi's mitigation efforts ahead of the adoption of Basel III capital rules. The transaction resulted in a pre-tax profit of approximately $160 million, the bank said in a statement.

India's headline inflation went up to 9.06% in May on rising prices of manufactured products and petrol which is widely expected to prompt the RBI to go for another rate hike mid-quarterly review meeting this week. Inflation, as measured by the Wholesale Price Index (WPI), stood at 8.66% in April. It was 10.48% in May 2010.

Markets in Asia, with the exception of the Hang Seng and Straits Times, closed with gains, as Chinese inflation data was in line with expectations. However, the announcement of the hike in bank reserve requirements by the People's Bank of China pulled down stocks in Hong Kong. China's inflation accelerated in May to a 34-month high of 5.5% and up from 5.3% in April. Later in the day, the country's central bank announced a 50 basis point increase in reserve requirements for lenders.

This apart, the Bank of Japan kept its interest rates steady at 0%-0.1% and added 500 billion yen ($6 billion) to its 3-trillion-yen loan scheme, aimed at boosting lending to industries with growth potential.

The Shanghai Composite was up 1%, the Jakarta Composite rose 0.65%, the KLSE Composite gained 0.17%, the Nikkei 225 climbed 1.05%, the Seoul Composite advanced 1.37% and the Taiwan Weighted jumped 1.33%. On the other hand, the Hang Seng and the Straits Times lost 0.05% each.

Back home, foreign institutional investors were net sellers of equities worth Rs304.17 crore on Monday whereas domestic institutional investors were net buyers of stocks worth Rs27.34 crore.

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