THE NIGHT THE SUN SHONE India’s Power Elite At TOI Awards Moved By Heart-Warming Stories Of Grit, Determination & Hope

 In an evening packed with lump-inthroat moments, three in particular stood out. Tamana Chona, a young school teacher who was born with cerebral palsy, had just handed over The Times of India Social Impact Award for education in the government category to the National Institute of Open Schooling, represented by its chairperson Dr S S Jena. Tamana gave him a quick hug, then marched over to the lectern and said she wanted to say a few words. It wasn't part of the programme but the host for the evening—National Awardwinning film-maker Prakash Jha, who has directed some of Indian cinema's most hard-hitting, socially relevant movies—graciously made way for her. 

    Tamana spoke haltingly but emphatically. "I have come a long way thanks to Dr Jena, who is my role model, and my mom and dad, who have helped me to shine. I want to learn more and more and I want to help street children and all the people associated with NIOS." 
She then asked the audience to join her in three cheers for NIOS. As she walked off the stage, Jha said with admiration, "What a brave girl. I'm positive she would have done a better job of hosting these awards." 
    When it was time to give the environment award in the NGO category, Sarjubai Meena strode on to the stage. Known in her village in Bhilwara as the "woman with the turban", Sarjubai launched into an impromptu speech about how the Foundation for Ecological Security—the awardee in the category—had helped transform her village. Unfortunately, few in the audience were able to understand the dialect that she spoke in. But the pride, determination and sincerity in her voice needed no translation. She received a rousing round of applause, and Jha remarked, "She has certainly earned the right to wear a turban". 
    The audience was also visibly moved when 11-year-old twins Hiranya and Thiruvara Bhargavi, who were born with cerebral palsy, were brought on to the stage—Hiranya in a wheelchair and Thiruvara in a wheeled stretcher. The twins and their mother, Apala, were there to give the award to the winner forhealth in the government category—the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities. The stoic courage and fortitude displayed by them moved many to tears. 
COUNTERING CYNICISM The second Times of India Social Impact Awards in partnership with J P Morgan made for the sort of evening that could not fail to move and inspire even the most cynical. There were sagas of lives transformed, as in the case of Kapilaben Vankar, who made half the minimum wage in a factory in Anand in 1994, but began to earn decent wages after joining women's trade union SEWA, the winning NGO in the livelihoods category. Once too shy to speak to family members, Kapilaben has risen to become national president of SEWA, travelled to Washington and met US secretary of state Hillary Clinton. 
    And there were, quite literally, life-anddeath stories like that of Rajesh Shah, a chartered accountant from Mumbai, who in June 2005 suddenly collapsed in his office in a congested bylane in central Mumbai. Within 25 minutes, Rajesh was being treated in hospital, thanks to the ambulance service run by the winning corporate in the health sector, Ziqitza Health Care. Doctors later told him that he had suffered a stroke and could have been paralysed for life had he been brought even half an hour later. 
    There were so many inspiring stories that it came as no surprise when President Pranab Mukherjee, the chief guest of the function, hailed the awardees as a remarkable group of men and women who had the vision to look beyond cynicism to a brighter horizon; the courage to brave tremendous odds and believe that they could make a difference, and the selflessness to do so quietly. A LIFETIME OF INSPIRING WORK Congratulating TOI for its efforts to honour individuals and organisations who are silently contributing and creating a society worth living in, the President said it gave him special pleasure to hand over the prize to the joint winners of the Lifetime Achievement Award—Meira Paibi and the Naga Mothers' Association. "They come from a region that tends not to get too much attention in the national media. They have served as peacemakers in a frequently conflict-ridden area. And they are living testimony to the enormous healing power that women have to offer a troubled world," he said. He concluded by telling all the awardees, "I say you have made us proud." 
    Receiving the award, Naga Mothers' Association president Abeiu Meru said the group was happy and honoured to share it with Meira Paibi and looked forward to promoting peace between the two communities and in the northeast. Thokchom Ramani Leima, 83, who received the award on behalf of Meira Paibi, said, "We are grateful to our sons and daughters at TOI for recognising the efforts of mothers. We ask you to remember us beyond today." 
    Just as he was about to leave the venue, the President turned to Times Group vice chairman Samir Jain, managing director Vineet Jain and the senior editors of TOI to say, "I was not sure what to expect when you invited me to be chief guest. But this is a wonderful idea. It was very inspiring. Thank you for inviting me. God bless, God bless." No award, but Nirbhaya was on everyone's mind T he evening concluded with a moving rendition of the National Anthem in sign language by children from the Government Secondary School for the Deaf, Kalkaji. Their performance at last year's awards had been hugely appreciated by the audience. Back on popular demand, their enthusiasm and bubbliness once again tugged at many heart-strings. 
    One person who did not receive an award (as TOI has consciously decided not to confer any posthumous awards) but was repeatedly mentioned was Nirbhaya, the 23-year-old girl whose brutal gang-rape and subsequent death led to an outpouring of public grief and anger. 
    Singer Rekha Bharadwaj dedicated one of her songs to her. Times Group managing director Vineet Jain began his speech by saying, "We emerged into the new year in a somber mood — our hearts broken by the brutal death of a 23-year-old girl right here in Delhi. But it has been inspirational to see so many young people rise up and decide that this young girl's death must never be forgotten." 
    And when Prakash Jha introduced singer-lyricist Swanand Kirkire, he did so by saying, "He wrote and sang the song he is about to perform here, in which he apologises to a little bird for the terrible things the world has done to her, and begs her to return. When we hear these words, we can't help but remember Nirbhaya, India's brave daughter." 
    Delivering the vote of thanks, Times Publishing CEO Ravi Dhariwal invoked Jawaharlal Nehru's words, "The service of India means the service of the millions who suffer...As long as there are tears and suffering, so long our work will not be over". He said, "The winners know that their work is far from over. But tomorrow, when they resume their labours, I am sure it will be with a renewed sense of purpose and determination. Like them, there are many other individuals and organizations working quietly and selflessly to change this country. We hope that tonight's ceremony will send out a powerful message to them: they are not alone. The Times of India will be with them on every step of their long, arduous journey."

President Pranab Mukherjee and Times of India Group managing director Vineet Jain

Union law minister Ashwani Kumar (L) with HDFC chief Deepak Parekh and former Cabinet secretary, ambassador to the US and governor Naresh Chandra

    (L-R) Chief election commissioner V S Sampath, Prasar Bharati CEO Jawhar Sircar and foreign secretary Ranjan Mathai

BJP's L K Advani. Behind him is Pakistan High Commissioner Salman Bashir

Ambika Soni of Congress

Top Congress and BJP leaders Digvijaya Singh (L) and Yashwant Sinha laugh away their political differences

(L-R) Union minister for overseas Indian affairs Vayalar Ravi, CPI(M)'s Sitaram Yechury and Ahmed Patel, political secretary to Sonia Gandhi

    The seniormost Supreme Court judge P Sathasivam with attorney general of India Goolam Vahanvati

(L-R) UID chief Nandan Nilekani with wife Rohini, J P Morgan India CEO Kalpana Morparia and Union environment minister Jayanthi Natarajan. Behind them is Egypt's ambassador Khalid Al Bakly (in glasses)

Union housing minister Ajay Maken tweets about the Awards live

Union information and broadcasting minister Manish Tewari cheers on

(L-R) BJP's Ravi Shankar Prasad, Union railways minister Pawan Bansal and Union social justice and empowerment minister Kumari Selja. Behind them are T K A Nair, advisor to the PM, and Sanjeev Tripathy (extreme right), who's just retired as chief of RAW, India's spy agency

TOUCHING HEARTS, IMPACTING LIVES An evening to honour India’s changemakers President To Be Chief Guest At TOI Social Impact Awards

They took the path less travelled, and on Monday it will lead a group of remarkable men and women to the stage for the second Times of India Social Impact Awards in association with J P Morgan. The awards are being given to changemakers within NGOs, corporates and government who have quietly worked to transform the lives of millions of marginalized Indians.      President Pranab Mukherjee will be the chief guest at the awards function. Joining him, and a power-packed audience comprising top achievers from diverse fields, will be beneficiaries of the organisations selected for the awards.      For some beneficiaries, this visit to the capital will  mark the first time they have travelled beyond the boundaries of their district. Awards in 17 categories will be presented by the beneficiaries.      The awardees and beneficiaries collectively represent the very best of India in all its fascinating diversity. They range from nine-year-old Jyoti Prajapat from Ajmer district to 83-year-old Thokchom Ramani Leima from Imphal. Jyoti will join 10-year-old Ujala Kumari from Delhi to present the award for education in the NGO sector to Room to Read India, whose libraries gave both girls an abiding love for reading. Leima will take the stage with four other women members of Meira Paibi, the fearless group of women from Manipur who will share the Lifetime Achievement Award with the Naga Mothers Association. The two groups have battled social evils like alcoholism and drug abuse, and spearheaded the peace efforts in the insurgency-ridden region.      Among others who will present awards is Sarjubai Meena, a grandmother from Bhilwara who is known as the "woman with the turban". Sarjubai will present the award for Environment in the NGO category to the Foundation for Ecological Security, which helped her and others turn the village into a fertile, prosperous one, in which Sarjubai, a dalit woman, now feels she has earned the right to wear a turban. Hunt for real heroes began six months ago      Eleven-year-old twins Hiranya and Thiruvara Bhargavi who were born with cerebral palsy, will present the award for health in the Government category to the National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities, whose pioneering insurance scheme helped them access life-saving surgeries.      The hunt for India's real heroes began in August last year when the Times of India invited applications from NGOs, corporates and government organisations in five categories: livelihoods, advocacy and empowerment, education, health and the environment. Online applications were accepted between October 2 and 30, 2012 through a dedicated website. A National Search Panel of eight eminent persons with long experience in the development sector was also constituted in early August, which identified 126 organisations worth consideration, who were then motivated to apply.      Facebook and Twitter pages helped answer questions about application procedures and kick-start a discussion. Finally, over 1500 entries were received, spanning the length and breadth of the country. The majority of applications were from NGOs.      The eight key parameters to evaluate the entries were significance of the issue addressed, scale, replicability, sustainability, finances, people's participation, innovativeness and promotion of equity. Every claim had to be backed up with documents and financial details had to be transparent. A specialist group consisting of philanthropy specialists from Dasra, GiveIndia and GuideStar India screened the entries and 20 sector-experts then evaluated these entries to prepare a final shortlist of 41 entries. TOI reporters conducted field visits of each entry.      An eminent jury comprising Unique Identification Authority of India chairperson Nandan Nilekani; Magsaysay awardee and National Advisory Council member Aruna Roy; former Cabinet Secretary Naresh Chandra; Magsaysay awardee and former Chief Election Commissioner J M Lyngdoh; Planning Commission member Syeda Hameed; former chairperson of Thermax Limited and Rajya Sabha MP Anu Aga; Centre for Science and Education director-general Sunita Narain and HDFC Bank chairperson Deepak Parekh spent an afternoon debating and discussing, before selecting the winners. The jury also nominated a Global Contribution to India award winner and a Lifetime Achievement award winner. Library hour has returned to Byculla West Municipal School in Mumbai and many government schools in 10 states with Room to Read setting up libraries. The NGO is one of the winners in the Education category Caring for shared resources and protecting the commons is the basis of Foundation for Ecological Security's work in Amaratiya village in Rajasthan. The non-profit is a winner in the Environment category Association for Democratic Reforms works to publicize financial details and criminal records of political candidates. ADR is one of the winners in the Advocacy & Empowerment category

Is FDI in retail in India a gimmick, asks SC

New Delhi: The Supreme Court on Tuesday said it would test the constitutional validity of the government's decision to allow foreign direct investment in multi-brand retail and asked the UPA government to spell out the safeguards put in place to protect small traders from possible onslaught of multinationals in future. 

    Parliament's approval of the policy decision was cited by attorney general G E Vahanvati to clinch the issue before a bench of Justices R M Lodha and S J Mukhopadhaya, which was hearing a PIL filed by advocate M L Sharma alleging that permitting FDI in retail was in breach of FEMA regulations. 
    The bench asked whether the government has received FDI proposals since Parliament approved the policy decision. "It is now six-seven weeks since Parliament approved the decision. Now the policy is in place. What has happened since then? Have you received some investment or was it just a political gimmick?" it said. SC: Legal validity of FDI is in question 
New Delhi: The SC on Tuesday made some terse comments about the Centre's decision to allow FDI in multibrand retail. Taken aback, attorney general G E Vahanvati said receiving FDI in retail will take some time as it was a part of series of reforms that would slowly transform the country's investment scenario to make it lucrative enough for the foreign investors. 
    More importantly, Vahanvati said, it would be beneficial for consumers and small traders. 
    Vahanvati stuck to his argument that it was a policy decision approved by Parliament after a detailed debate and hence the courts could not go into the necessity of such a move. However, the bench said, "It is a policy decision alright but its legal validity is challenged. The government must satisfy the court on this count... We want to know what steps had been taken by the government to alleviate these fears." 
    Vahanvati said these were the concerns Parliament debated before approving the decision. The bench was, however, firm on examining the decision not only from small traders' point of view but also from all angles. 
    It asked the government to file an affidavit in three weeks giving a detailed response. 
    To explain its mind, the bench gave an illustration on elimination of competition by big players. It said, "Once the big players come in, they artificially so bring down the price that the small traders fail to match the price tag and are forced to shut shop. Once the competition is eliminated in this process, the big players jack up the price leaving the consumer no option but to pay." 
    Vahanvati said there was adequate legal framework to protect small traders from unfair means meant to kill competition and pointed out the setting up of the Competition Commission. But, the bench asked, "How many small traders can move the forum?" 
    On October 16, the court had said the permission to allow FDI in multibrand retail appeared to be at variance with the FEMA regulations. Two weeks later, RBI amended the regulations and the amendments were approved by Parliame

‘My Target for INDIA is to do Away with Oil Imports by 2030’

In less than three months after he took charge as petroleum minister, Veerappa Moily has been able to resolve several controversial issues in the oil and gas sector. He has approved raising crude oil output from the Barmer oilfield and convinced private oil and gas operators to accept CAG audits of their books. Recently, he implemented decontrol of diesel pricing, a decision that was pending for more than two years. In an exclusive conversation, the minister told Nistula Hebbar and Rajeev Jayaswal of ET that he is now preparing a road map to cut India's energy imports by 50% in the next seven years and make the country self reliant by 2030. 

What are you doing to raise oil and gas production to reduce India's import dependence? 
We have conventional hydrocarbons, shale gas and coal bed methane (CBM) resources. The need is to expedite exploration and production through right policy decisions that would encourage innovation and investments. We will constitute an expert panel, which will suggest the road map. My target is to reduce oil imports by 50% by 2020, 75% by 2025 and 100% by 2030. If China and Australia can do this in six years, why can't we? We will have aggressive acquisition strategy for oil and gas assets abroad. We will set up more LNG terminals. Gail is setting up pipelines across the country. Pipelines are up to the Pakistan border. We are planning to import gas from Turkmenistan. I'm confident. 
Who will be the new petroleum secretary after GC Chaturvedi retires this month? 
It is the prerogative of the Prime Minister. I don't have any particular preference. PM will make the right choice. All I need is positive mindset. I believe that you should mine your mind-set first before you mine minefields. 
The government allowed oil firms to fix diesel prices and mandated them to sell the fuel at market rates to bulk consumers . Is duel pricing of diesel feasible? 
There is no duel pricing. Bulk users, who consume about 18% of total diesel consumption, will pay full price from now. This will reduce subsidy burden on the fuel, which is . 96,000 crore this year. This will also encourage competition in the sector, which is good for the oil sector and good for the country. 
Is government firm on its decision on diesel? Private fuel retailers are apprehensive to take bold business decisions because they are uncertain about government's fuel retail policy? 
I don't think that there will be uncertainty. The government has taken the decision to give pricing freedom to oil companies. It is similar to petrol pricing. Oil companies fix petrol rates as market fluctuates. They recently reduced petrol prices by 25 paise. 
Currently petrol and diesel are priced on the basis of trade parity pricing. Is government considering changing it to export parity pricing? 
This decision has to be taken by the finance ministry. It is their domain. The oil ministry wants to raise the price of diesel to market level. 
The petroleum ministry has taken decisions on future oil and gas contracts and prices of natural gas. But no decision has been taken on CBM pricing, why? 
The matter is still pending with the Rangarajan committee. Until it gives its recommendations, we will treat CBM at par with natural gas, because it is also gas, but from a different source. Meanwhile, with the coal ministry, we are fine-tuning the CBM policy so that blocks under Coal India can also be used for CBM production. I had a meeting with the coal minister and the coal secretary on the matter. The coal ministry is to send us its comments on the matter in 20 days.

India Now Becomes a Tech Hub, For Indians

Small cos bring smarter technology for local use It is unlikely that Gramener, Anaxee and Stelling are companies that most people would have even heard about, but these and others like them could represent the new frontiers of India's software industry. Over more than two decades, India earned a reputation as the global leader in software outsourcing, but product companies — perceived as the mark of a true technology powerhouse — have been few and far between. With Gramener and technology product companies of its ilk coming up in large numbers across India, that anomaly is on its way to being set right.  While India is still a long way from showcasing a Microsoft or a Google, unobtrusively, technology companies have sprung up across the country to create products and solutions that meet the demands of local businesses. Quite unlike an Infosys or a Wipro, which are the creatures of global demand, product companies are coming up with innovations made in India, by Indians and for Indians.  From helping capture fingerprint and iris data for the Aadhaar card to crunching numbers so that chicken live healthier and longer, these companies are using cuttingedge technology to provide tailormade solutions      for Indian needs. "We have reached an inflection point," said Sangeeta Gupta, senior vice-president of the National Association of Software and Services Companies (Nasscom). The ecosystem is just about right for product innovation in the country and India is about to emerge as a leader in software products, she predicted.  Small is Beautiful      Gramener  WHAT IT DOES: Unlocks hidden insights from huge chunks of data and uses visualisation to develop foresight for critical business decisions  CUSTOMERS: Airtel, Novartis, Suguna Foods, Mahindra Satyam      Anaxee Tech  SPECIALISES IN biometrics-based identity management and attendance solutions  Unique Identification Project (Aadhaar), Jabalpur Municipal Corporation, Barbeque Nation      Stelling Tech  PERSONALISED real-time information services to rail passengers  Indian Railways Selling Innovative Solutions  The company that helps enhance longevity for chickens is Gramener, founded by former executives for IBM, Deloitte and Accenture, and based in Hyderabad. It does so by analysing data provided by Suguna Foods, its client and one of the biggest in the poultry business. Gramener finds disease patterns to let Suguna know what precautions to take and even makes recommendations about how much sunlight the birds must be exposed to, the type of feed, and even the structure of the shed in which they are housed.  Suguna, whose sales top . 4,200 crore, has deployed an enterprise information technology system from one of the world's largest software makers but it turned to the two-year-old Gramener to find answers to specific problems. "Gramener's business intelligence helps us take the right decisions at right time and we also get value for money," said GB Sundararajan, the managing director of Coimbatore-based Suguna. Zinnov, a management consultancy which closely tracks the technology sector, has estimated that since 1990, fewer than 3,400 product companies were seeded in India. But between now and 2015, up to 600 will be created every year, its director Praveen Bhadada said.  "Startups are able to crack this market by selling niche innovations to solve specific problems. The global products brought in by big firms may not be relevant to the unique needs of the domestic market," he said.  Solving these specific problems is what Indore-based Anaxee Technologies is doing for the Nandan Nilekaniled unique identification project. Anaxee was founded after getting an incubation opportunity and seed funding of . 20 lakh from NirmaLabs, a technology incubator promoted by detergent maker Nirma. It recently won a contract to sell biometric systems to the Jabalpur Municipal Corporation in Madhya Pradesh for monitoring attendance of sanitation workers, a solution that has led to the discovery of many ghost employees. Zinnov estimates that more than 5,000 large enterprises and over 10 million small and medium businesses in the country are ready to adopt technology. This will mean that product companies will have a big role to play in pushing the expansion of the $30-billion (. 1.6-lakh-crore) technology market by some 18% this year.  Even the Indian Railways, which has an annual plan outlay of over . 60,100 crore, has recognised the need to embrace the innovation developed by local product firms. Noida-based Stelling Technologies has developed a technology platform — trainenquiry-.com — which provides personalised, real-time information services to passengers about their journey and the location of the train on mobile phones and the Web. Started in 2011, Stelling has developed the platform in collaboration with the Centre for Railway Information Systems.  Like Stelling, Bangalore-based Vyoma Technologies found a business opportunity in tapping the millions of people who buy tickets at railway reservation counters with advertisements for their clients. Vyoma has integrated its software with the railway booking system and installed dual display infotainment systems at reservation counters for clients such as Canara Bank, ITC and the tourism departments of Gujarat and Tamil Nadu. Founded by former tennis player Shriranga K Sudhakara and orthopaedic surgeon Madan Mohan Ballal, the company received angel funding from Indavest. Vyoma aims to install its systems across all railways stations in India and clock Rs 100 crore in revenue in the next three years.  "Working with a startup is more economical, innovative and flexible compared to multinational companies," said Anwar Hussain, a railway official based in Bangalore.  Nasscom's Gupta said an important reason for the blooming of technology product companies is that professionals with experience of working with global corporations are becoming entrepreneurs and creating intellectual property. Besides, inexpensive technology, angel investors and mentor networks are supporting entrepreneurs to build products. Even Germany's SAP, the world's largest maker of business software, believes that entrepreneurs and small- to midsized businesses make up the backbone of the economy. "They have the ability and power to drive innovation, create jobs and enhance economic stability," said Priyadarshi Mohapatra, vice-president for emerging business at SAP India. "They are helping to run lean and efficient operations."

Import duty up, gold, platinum now dearer

Govt Also Eases Deposit Norms To Curb Demand

New Delhi: The government on Monday sought to dampen the demand for precious metals by jacking up the import duty on gold and platinum to make them more expensive and help manage the economy better. Simultaneously, the Centre stepped in to move the yellow metal lying in lockers to revamp gold deposit schemes from banks as part of the plan to stem the demand. 
    The immediate pinch will be felt due to an increase in customs duty from 4% to 6%, although the move may spark illegal flow of the precious metals into the market. Traders said gold price, which went up by Rs 315 to Rs 31,250 per 10 grams immediately after the finance ministry announced the decision on Monday afternoon, will rise in the coming days as the market factors in the impact. 
    "The two percentage point increase will translate into a proportionate rise in the price of jewellery and bars," Jayant Manglik, president, retail distribution at Religare Broking, said. 
    Within a span of a year, gold, which attracted around 1% import duty, has seen a spike in levies as the government grapples with a widening trade and current account deficit (CAD), which is putting pressure on the rupee. CAD is the difference between exports and imports, net FDI and FII flows, remittances and overseas borrowings by local companies. While exports have shrunk, imports have been steady due to runaway appetite for gold and the steady demand for edible oil and crude petroleum. In fact, the widening trade deficit has negated the impact of higher inflows from other sources. As a result, the rupee has remained under pressure, and continues to hover around Rs 54-55 to a dollar despite the government's efforts to revive investor sentiment and attract overseas funds. 
    "It is difficult to establish the impact (of the tax) on CAD and by how much it will come down, but there will be some moderation in gold demand," economic affairs secretary Arvind Mayaram told reporters. Though import duty has risen, gold demand, after witnessing moderation, has been on a rising trajectory, creating a policy challenge as the government battles the threat of aratings downgrade. 
LOSING GLITTER 
    The hike in gold customs duty from 4% to 6% will translate into a proportionate rise in prices of jewellery and bars 
    The move may spark illegal flow of gold into the market 
    Govt trying to encourage people to earn income on idle assets lying in bank lockers 
    Revamped gold deposit scheme will see minimum quantity deposited reduced from earlier 200gm, while 
minimum tenure will be cut from 3 years to 6 months 
    But need to melt jewellery 
may dampen interest

Moody’s flags fisc deficit concerns Retains Investment-Grade Rating, Stable Outlook | Cautions On Growth

New Delhi: Retaining India's credit rating at the existing level, global agency Moody's has cautioned that a high fiscal deficit could pull down the growth in the coming years. "Large government deficits and debt ratios as well as supply constraints in the form of infrastructure, policy and administrative inefficiencies constrain the sovereign credit profile," Moody's said in India rating report. 
    On the positive side, the global rating agency reaffirmed sovereign credit rating of India at Baa3, which indicates investment grade, with a stable outlook. "Government finances are the weakest aspect of India's macroeconomic profile... We expect the government's fiscal position to remain weaker than peers over the medium term," it said, adding sustained improvement in public finances could result in rating upgrade. 
    As regards growth prospects, it said that a downturn was underway which could be exacerbated by slower global growth. However, robust domestic savings and a dynamic private sector would provide strength in the medium term, it added. Moody's expect Indian economy to grow by 5.4% in the current fiscal and 6% in 2013-14. Last fiscal, the economy grew by 6.5%. 
    It further said that while high commodity prices have raised the subsidy bill, government's measures to reduce fuel and fertilizer subsidies were too modest to compensate for high global commodity prices. The report has not taken into account the recent decision of the government to partially deregulate diesel and allow oil market companies to raise price by 45-50 paise every month, it said. 
    The government had raised the fiscal deficit target for the current fiscal to 5.3% of the GDP, from 5.1%, in view of increased subsidy outgo. 
    "Fiscal data available thus far suggest that meeting the deficit will present a challenge," Moody's said. In the near term, it said improvement in fiscal situation would depend in increasing tax revenues and expediting PSU disinvestment. 
    On the possibility of a rating upgrade, Moody's said an improvement in investment climate, project completion and reduction in infrastructure bottlenecks could lead to an upgrade. It cautioned that a continued increase in government debt ratio and worsening of the balance of payments situation could lead a ratings downgrade. 
    In the recent months, the government has taken series of reform measures to boost investor sentiment, including hiking FDI limit in retail, insurance among others besides easing overseas borrowings norms to stimulate infrastructure investment. 
    Last week it also deferred the controversial General Anti Avoidance Rules by two year to April 2016. AGENCIES 
NOT ALL HUNKY-DORY 

• Moody's warned that supply constraints in the form of infra, policy and administrative inefficiencies constrain sovereign credit profile 

• The global agency also pointed out that 'govt finances are the weakest aspect of India's macroeconomic profile' 

• On growth prospects, Moody's said the ongoing downturn could worsen if global economy slows down further 

• The report did not take into account the recent move to partially decontrol diesel prices

13 insights for India real estate in 2013

The year 2012 closed with a few notes of positivity as the inflation was below the Reserve Bank of India's (RBI's) projected levels and the Index of Industrial Production (IIP) growth increased in the last two months of the year, giving new hopes for 2013.

Overall, 2012 remained inactive, affecting all the major sectors in real estate. Office space absorption remained lower compared with 2011. Meanwhile, retail faced challenges of quality supply, affecting the overall absorption. The residential demand improved; however, developers continued to struggle with unsold inventories. With the expected moderation in inflation and strengthening policies, we have gathered few interesting insights for 2013 from real estate experts.  
 

1. Economy - As per RBI, the policies will focus towards growth in 2013, although risks of inflation will continue to remain. Interest rates are expected to witness a downward correction of 100 to 150 bps in 2013. The softening of interest rates is expected to reduce the home loan rates, in turn increasing the buying of real estate assets. Increasing urbanisation and consumption despite the slowdown in GDP growth will be the key drivers of the economy in 2013.

2. Policies - The recent policy initiatives are expected to improve the investment climate and business environment, and they are likely to benefit the real estate sector in 2013. Few policies to look at in 2013 are: the Real Estate Regulation Bill, likely to be tabled in the upcoming winter session of the parliament; the real estate investment trusts (REITs) or real estate mutual funds (REMFs), expected to get launched in 2013; and the Land Acquisition and Rehabilitation and Resettlement Bill, likely to be tabled in the upcoming budget session in 2013.

3. Infrastructure - The infrastructure sector achieved a substantial FDI of USD 2.8 billion, accounting for a notable 7.7% of the total FDI inflow in FY 2012. In the year 2013, the relaxation of FDI policies in multi-brand retail is expected to surge the investment in back-end infrastructure development such as logistics. Moreover, an FDI of up to 100% is also permitted under the automatic route in built-up infrastructure and is likely to surge the development of the city and the regional level infrastructure in 2013.

4. Office Real Estate - Office space absorption in 2013 is likely to remain equal to that in 2012. Supply correction will lead to fewer options for occupiers, and steady absorption will decrease vacancy levels. Competition for space in prime buildings in prime locations is expected to increase in 2013, and these spaces will start earning a premium. Rents are expected to increase from 2H13 onwards as fewer new projects are being launched, and vacant spaces are steadily filling up. Decisions on occupying special economic zone (SEZ) spaces will be taken by occupiers who are sure of taking a position in India as they have to go live by March 2014 to avail the benefits.
 

5. Retail Real Estate - The relaxation in FDI policies in multi-brand retail interestingly has surged aggressive growth amongst Indian retailers to take the first-mover advantage. This is expected to drive the demand in 2013. However, as supply of retail malls remains a challenge, retailers are likely to opt for built-to-suit (BTS) options or high-street properties. As most developers are focusing on residential developments, the supply of malls will reduce in the major cities over the year. In 2013, retailers will be cautious and take more time to execute agreements as they will do a detailed analysis before closing transactions. Retailers will commit to space only if they see approvals in place and the construction of the space in progress.

6. Residential Real Estate - REITs in India allowing investments in rental housing is a new trend worth watching. The framework and details of REITs, once formulated, are likely to drive the investor demand across the prime cities in India in 2013. Another interesting trend observed in the last two years was that the stock in the range of INR 2,000-3,000 per sq ft was fast sold out. In 2013, this range is likely to shift to INR 3,000-5,000 per sq ft with the increase in inflation and construction costs.

7. Industrial Real Estate - Sale-cum-leaseback of exiting industrial assets by existing companies is likely to increase in 2013. MNCs testing the waters in India are likely to focus on BTS industrial properties. Warehousing companies are now preparing for the goods and services taxes (GST) and are slowly moving from godowns to distribution centres. The growing trend in e-retailing and FDI in multi-brand retail is expected to surge the demand for warehousing spaces in 2013.

8. Education and Health Care - There are aggressive growth plans in K-12 and skill-space educational institutions in 2013, particularly in the non-metro cities of India, where there are large opportunities. In the health care segment, hospital chains, along with day care centres, are expected to expand aggressively in 2013. Both these segments are expected to attract private equity investment in 2013.
 

9. Investment Sentiments - Debt capital is likely to increase in 2013. Banks are expected to be more flexible in lending. Most of the realty funds are close to their exit periods as they were invested around 2006-2007. Therefore, the exit of real estate funds is expected to increase in 2013. Meanwhile, interest on income-producing assets by institutional investors is likely to increase over the year. However, the availability of such assets will continue to remain a challenge. Assets will witness a softening of yield rates amidst increased liquidity. 
 

10. Delhi - Most of the absorption in Delhi NCR is likely to focus around Gurgaon and Noida, with the exception of Delhi International Airport Limited (DIAL) and few select stand-alone Grade A projects of Delhi. As the demand supply gap of quality office space is expected to increase because of the supply constraints in select precincts of Delhi NCR, rents are expected to increase in certain micro-markets by 2H13. Developers will focus on delivery of the products.

11. Mumbai - Office absorption and residential demand will continue to increase in Mumbai. The trend of completion of highquality new office projects pushing up Grade A office vacancy levels and providing tenants with greater bargaining power will reduce in 2013. With banks drastically reducing lending activities over the last two years, resulting in debt remaining a constraint, not much of new  commercial supply (except spill over from 2012) is expected to be completed in 2013 and 2014. Residential launches are expected to increase; however, price drop is unlikely to happen over the year. Amidst constrained supply of quality retail malls, rental gap between Grade A malls and Grade B malls will further widen in the year.

12. Bangalore - In terms of office space, Outer Ring Road will continue to be the sought-after destination in 2013. For residential real estate, North Bangalore is expected to continue to remain as the best performing region in the city with strong infrastructure development, increased demand and price appreciation in 2013. Meanwhile, Whitefield will continue to retain its sheen for both office and residential real estate because of affordability, proximity to key work places and good social infrastructure.

13. Other Cities - Chennai, which witnessed a historical high number of residential launches in 2012, is likely to slow down in 2013. This trend is also expected in Pune. Meanwhile, Kolkata and Hyderabad are likely to witness increased launches. Prices of residential units are likely to increase in all the cities because of the increased construction costs. Ahmedabad, Bhubaneswar Kochi and Coimbatore are other cities in India that are likely to witness immense development activities in 2013.

An optimistic future

Developers across the city are expecting favourable policies and industry status in the New Year, says NISHA SWAMI     While the end of 2012 witnessed the initiation of a few regulations by the government benefitting the realty industry, 2013 can be considered as the starting point for these policies to be executed. Several experts feel that 2013 would witness the much needed steps to be formulated for the realty sector.     Sukhraj Nahar, CMD, Nahar Group says, "The real estate industry is currently passing through a transformation. All of its participants have made serious efforts to bring transparency in 2012. Going forward, we feel this will help both industry players and stakeholders. The industry is still unorganised and its efforts with the government for awarding them industry status are in progress." Nahar also has a lot of expectations from the government in terms of various positive initiatives like priority lending from banks, immediate rate cut by RBI and single window clearance for project approvals.      The economy had its share of ups and downs during the last year, but it picked up in the end because of a few government initiatives. Samujjwal Ghosh, Head of Marketing, Lodha Group says, "The Indian economy slowed down between mid 2011 and mid 2012, but then bottomed out and started rebounding. This was partly because interest rates started falling and partly because the government started taking proactive measures to push up the economy in the last few months. Also, last year many developers adopted a wait and watch attitude due to changes in FSI norms and approvals, which will now change as the sector will be buoyant this year. This is good news for the industry as well as for customers being a win-win situation for both."      Lodha plans on continuing with the development of their city centre project New Cuffe Parade. Ghosh lists Wadala as a prime destination to invest in property in 2013 as it has proximity to the premium business districts of Bandra Kurla Complex and is the only confluence of the Monorail, Metro and Eastern Freeway.      Joint government efforts can help revive the real estate sector and take it to new heights. Lalit Kumar Jain, CMD, Kumar Urban Development Ltd and President National - CREDAI, believes that if the government shows concern towards the industry, they expect a lot from the government like the Finance Ministry and RBI working together to strengthen demand and supply by a special housing development policy. He says, "We also expect the Housing Ministry to work with the Finance Ministry and work out affordable housing through various measures in the Finance Bill."      Several essential issues in the real estate industry need to be addressed immediately. Approval of single window clearance, stamp duty and VAT, among many others, is important for the sector to grow. Dhaval Ajmera, Director, Ajmera Realty & Infra India Ltd says, "2013 is expected to be vibrant for the realty industry. The need of the hour is quintessential reforms to be passed along with the approval of single window clearance to ensure speedy approval. Matters which urgently need to be addressed include stamp duty, VAT, service tax and labour tax."      The year 2012 has seen maximum number of steps taken by the government to boost the realty sector. As a result developers believe that 2013 would be a positive year for the sector. A Kalpataru spokesperson says, "We are expecting 2013 to be more robust compared to the past few years based on the government's impetus on the infrastructure development including the Mumbai Metropolitan Region; coupled with positive steps taken by the Centre to find concrete solutions for issues in the industry." The Kalpataru spokesperson also feels that the Finance Ministry's motivation through softening of interest rates and lending more to the real estate sector will have a positive impact on both developers and consumers.  The real estate market could start to perform better as the easing of FDI norms will begin to show results during the second half of the year, believes Jain. He says, "The economy will also recover in 2013 which in turn will perk up the real estate sector in India. With the government trying to introduce developer and buyer friendly policies, the outlook for real estate in 2013 does look promising." QUICK  BYTES      THE SECTOR IS STILL UNORGANISED AND EFFORTS WITH THE GOVERNMENT FOR AWARDING INDUSTRY STATUS ARE IN PROGRESS      THE FINANCE MINISTRY'S MOTIVATION THROUGH SOFTENING OF INTEREST RATES WILL HAVE A POSITIVE IMPACT ON DEVELOPERS AND CONSUMERS

HDFC Bank Likely to Buy Office Space in Lower Parel for 220 cr

Lender is close to acquiring 1.3-l sq ft of commercial space in Peninsula Biz Park

KAILASH BABAR MUMBAI 

In one of the largest outright office space deals, HDFC Bank is close to buying nearly 1.3 lakh square feet of commercial space spread over four floors in Peninsula Business Park at Lower Parel in central Mumbai, according to persons who are involved with the transaction. 
The bank is paying around . 17,000 per square foot totalling nearly. 220 crore for acquiring the office space in Peninsula Business Park's 20-storey tower-B owned by Alok Realtors, the real estate arm of Alok Industries. 
Emails sent by ET to both HDFC Bank and Alok Industries went unanswered. 
HDFC Bank is expected to pay the nearly . 220 crore in two instalments. The bank will use the office space to expand its operations and will also shift some of its current operations from other offices, said one of the persons. Along with the commercial space, that can accommodate over 1,500 employees, it will also get parking slots for nearly 150 cars under this deal. 
The deal is part of Alok Industries' larger plan to exit the real estate business. The company, through its realty arm Alok Realtors, had acquired this commercial building, part of the complex Peninsula Business Park, from developer Peninsula Land for . 1,075 crore in 2007. 
Amid the property boom, it was counted among the most expensive deals. The real estate market, however, has been on the decline since then, with a short recovery that lasted for just 10 months in 2009-10. 
The Alok group has already announced its decision to exit the real estate business completely. Eighty per cent of the building's total space of 641,000 sq ft is marked out for use by information technology (IT) and IT-enabled services (ITeS), while the rest is meant for commercial use. HDFC Bank is buying the space that has been marked for IT and ITeS operations. 
Central Mumbai, including Lower Parel, Worli, Dadar, and Prabhadevi with total available commercial space supply of nearly 9 million sq ft, has seen some key deals happening in the last three quarters. The vacancy level, that was around 24% here a few months ago, is expected to fall owing to these large deals, said a property consultant. The last major office space deal in Mumbai was also concluded in Lower Parel. 
Pharmaceutical major Cipla bought office space in Peninsula Business Park in a deal worth over . 270 crore to shift its existing 70-year-old headquarter at Bellasis Road in south Mumbai. 
On Monday, shares of Alok Industries closed at . 11.41 on the Bombay Stock Exchange (BSE), down 0.6% from Wednesday's close. Shares of HDFC Bank closed at . 682, down 0.7% over its previous close. 
kailash.babar@timesgroup.com 

Investment hotspot

Pune's proximity to the financial capital of India gave it an edge yet the Peshwa City somehow stayed in the shadows of Mumbai. Today, development of IT, ITES and automobile sectors has blazed a trail of growth quickly picked up and accelerated by others

    Pune - a city with a pleasant climate, peaceful atmosphere, quality education, plenty of career openings and great accessibility to businesses communities worldwide - is fast emerging as one of the most desired youth destinations. 
    The last two decades have seen 'Oxford of the East' grow at an astonishing pace. Pune's proximity to the financial capital of India always gave it an edge, but this city somehow stayed in the shadows of Mumbai. Today, development of the IT, ITES and automobile sectors has blazed a trail of growth quickly picked up and accelerated by others. 
    Pune has always been a city of the youth, thanks to its reputed educational institutes. This youth has now become a talent base for the service sector pulling them to Pune and retaining its young students as young employees! 
    Naturally, Pune has seen an exponential growth in its real estate segment. It has spread its wings to incorporate the huge demand for homes of every type for everyone. 'The city of Wadas' has turned into a city of newly minted housing societies and townships. This has brought another growing industry actively to Pune, construction industry which has been developing high quality, unique and highly creative real estate solutions for its new and dynamic clientele. 
    However, an analysis shows that though the increase in construction has been massive, there is scope for more. The city has in the last two decades spread out and occupied much of the surrounding unoccupied land, but the demand is for more. This massive construction growth and a steady demand fuelling it are a call for speedy and wellplanned civic infrastructure development. The last two decades have seen a growing and increasingly severe strain on the city's roads, electricity grid, public transport, drainage system and water supply among other things. 
    Need for redevelopment 
    Pune, cultural capital of Maharashtra, was a city of joint and extended families and old structures; mainly large houses or Wadas made of mud and wood, concentrated in the Peth areas. With emergent trends and the precarious condition of the older dwellings 
they are either vacant or not safe for occupation. 
    One of the main problems of old houses in the Peth areas is their precarious condition. These buildings have fallen into disrepair owing to various factors. Many of them have started collapsing and are one of the biggest dangers in monsoons. Large residences are not much in demand with the family size shrinking and the cost of their maintenance escalating. Not just the wadas but almost all the building, of various sizes and built mostly of wood, around that time have become too dangerous for habitation. Again, many of these houses lack basic modern amenities like lifts, security arrangements, modular kitchens, dedicated parking and so forth. 
    Peth areas were designed before the era of the automobile. This has resulted in lack of parking space in these areas as also traffic bottlenecks. Such issues have made redevelopment not only essential but also popular in older parts of the city. 
    Gajendra Pawar, CMD, Pinnacle Group says, "Sadashiv Peth is located in the heart of the city. Out here, one gets to see the cultural heritage the city 
has to offer. While investing in a property, the parking space is the main thought that lingers on in an investor's mind. With redevelopment, such issues can be handled. Public transportation is available 24X7 in this area. The residents of the area also have easy accessibility to restaurants, offices, shopping destinations, renowned educational institutes and so forth." 
CLUSTER HOUSING REDEVELOPMENT: NEED OF TIME 
    Fast growing and globally relevant Pune, though bright and new, is still at heart a traditional and culturally wellrooted city. This is the reason development and multidimensional growth have not been able to tarnish the popularity of the Peshwai Capital's central areas. The citizens are still attached to the main city, especially Peth areas. Highly prosperous under the Peshwa regime, these peth and gaothan areas are now seen redefining their identities without losing their cultural ethos. 
    A major problem, as discussed, in these areas is the lack of parking facilities. Almost all major roads are like small lanes. Since none of the old buildings and 'Waadas' have enough space for parking, thinking of buying fourwheelers has become more of a space restraint than an affordability issue. When they are bought, they just eat up space on an already congested and narrow road. Due to P1 and P2 policies, citizens have to change the parking side on every alternate day. Needless to mention there is hardly any scope for guest's vehicles. Besides disturbing peace of mind, this issue has invited complications right from traffic chaos, accidents, damage to vehicle and property to civic administration. A solution recently implemented in Mumbai where the government grants additional FSI to the developer against the parking spaceavailed may be most beneficial for Pune. Punekars will be the most relieved if this policy could be adopted under our current redevelopment process. 
    The Pune city, mainly the peths and gaothan areas, now need to grow vertically in term of availing enough space for parking. If the government comes up with a policy of approving 50 meters height instead of existing 21 meters, not only the parking space could be maximised but major roads and lanes could be cleared up leading to improved traffic conditions. Almost all developed cities in the world have adopted vertical growth pattern in construction. This is now the ideal time to revisit the existing policy and make amendments for the better. Especially, cluster housing redevelopment projects should be encouraged wherein maximum solutions could be found for developing and implementing smart and futuristic planning. Owners and tenants of old structures and Wadas can collectively come forward to establish an excellent model of housing redevelopment. Doing so, these people can avail better, bigger and smarter, modern and low maintenance living spaces in addition to enjoying ample parking facilities. 
    Other than basic safety of dwelling and safe parking, the new generation of Wada and old buildings residents of the Peth and Gaothan areas are expecting stylish and modern homes suitable and comfortable for their new lifestyle. These areas are in prime locations hence redevelopment will provide the young generation with new stylish and modern homes. Everyone is attached emotionally to these houses as they are homes of their childhood, hence redevelopment will provide them with the benefit of staying at the same place but in a new stylish home with modern facilities, spaciousness and the most of all parking space. 
    Rohan Pawar, executive director, Pinnacle Group, says, "Pune has been growing horizontally and not vertically. On the outskirts, there is a constraint to construction with regards amenities being provided to the investors like parks and so on. It is the need of the hour to develop core parts of Pune, such as Peth areas so that the residents could enjoy all the amenities at their doorstep or at least in their vicinity. Cluster housing will help develop the area and one can enjoy the peace and tranquility the area has to offer. Redevelopment also helps a city or a town to prosper, he concludes" 
    (Compiled by Sonia Rodrigues)