Will Andhra’s Loss Of Telangana Be Cong’s Gain?

At 66, Mother India gets ready for her 29th baby

Hyderabad To Be Joint Capital For 10 Years

New Delhi: The Congress leadership bit the Telangana bullet on Tuesday. It decided to bifurcate Andhra Pradesh to create a separate state of Telangana—a move that will be aloss to the politically muscular state but will be a gain for the Congress as it's expected to revive the party's fortunes in the state ahead of the 2014 Lok Sabha election. 
    As reported by TOI on July 29, Hyderabad will remain the common capital of the splintered state for 10 years—a balancing act that recognizes Telangana's claim on the city but seeks to soften the blow to the opponents who were also concerned about the investments of coastal Andhra businesses in the capital. The Centre will help AP build a new capital. 
    There are indications that a mechanism will be created to vest the governor with oversight of law and order in the city: an arrangement that falls short of turning the city into a Union Territory but reassures those worried about a sudden change in its character. 
    The call on whether to include two districts of Rayalaseema region, Ananthpur and Kurnool, will be taken later. The Congress leadership favours the idea but is wary of committing itself before fully assessing the fallout. 
    The desire to do well in Telangana appears to be the main driver behind the decision. While announcing the CWC's decision, Congress general secretary Digvijay Singh triggered speculation of a merger of TRS with the Congress. Singh recalled TRS chief K Chandrashekhar Rao's declaration that he would merge his party if the latter created Telangana. 
Boost for other state demands Statehood movements across India are expectedto get a boost. In Darjeeling, Gorkhaland leaders have called for a series of agitations. The agitation for Bodoland may be revived in Assam. Demands for Bundelkhand (out of UP and MP) and Vidarbha (from Maharashtra) are also alive. P 14 Divided Andhra to lose political clout Andhra's split will cause it to lose its clout in national politics. With 42 seats in Lok Sabha, Andhra accounts for the third biggest kitty after UP (80) and Maharashtra (48). With 17 LS seats going to Telangana, Andhra will be left with 25. The number can slip to 21 if Anantapur and Kurnool is clubbed with Telangana. P 15 Rest of Andhra not to be Seemandhra The rest of Andhra Pradesh is unlikely to be named Seemandhra. Non-Telangana politicians bonded together under the Seemandhra banner giving rise to the impression that the region comprising coastal AP and Rayalseema might be renamed. But Andhra is already seen as synonymous with non-Telangana areas.WHO'S UP, WHO'S DOWN? 
CONGRESS | Will gain in Telangana, having delivered on promise. With or minus TRS, will have advantage in 17 seats in the region (4 more seats if 2 Rayalseema districts are added) 
YSR CONG | Jagan likely to emerge strong in coastal region as sole opponent to Telangana. So long he doesn't go with BJP, can support Congress directly or indirectly 
TDP | Naidu's party already in bad shape for doing 'yes-no' on Telangana. Now will be thrown off balance: strong neither in new state or coastal region 
BJP | May lose if Telangana euphoria and gratitude to Cong overwhelm its consistent support for new state. Not a big player in coastal areas WHAT NEXT1 GoM will be set up to consider issues like territorial boundaries and status of Hyderabad as joint capital 2 GoM recommendations go to cabinet in form of a bill3 After Cabinet approval, home ministry will send bill to President for consent 4President under Art 3 will seek opinion of state legislature 5 Once legislature gives its opinion, President will approve bill for introduction in Parliament 6 Parliament needs to approve the bill by simple majority 7 President then gives assent to legislation and India's 29th state will be notifi ed Cong eyes Telangana sweep of 17 seats 
    Pieces of the puzzle were fast falling in place when TRS chief Chandrashekhar Rao said that he was a man of his word. Political circles estimate that the Congress calculation is to sweep the Telangana region, which has 17 Lok Sabha seats, in alliance with the TRS. The numbers of Lok Sabha seats which the party can hope to win will swell to 21 if the districts of Ananthpur and Kurnool are clubbed with Telangana: a huge improvement for the party which had appeared to be a washout in the state. 
    Giving its nod to the division of AP after consultations with UPA partners, the CWC said that the Centre should take steps to form a separate state of Telangana. It said that the Centre should institute a mechanism "to address the concerns of Andhra and Rayalseema on sharing of river waters, power and security of citizens". The CWC also said the Polavaram Irrigation Project should be declared a national project. 
    The Congress is expected to act expeditiously in order to reap the goodwill in the Telangana region. There are indications that the Union Cabinet may decide on Thursday to request the President to ask the Andhra Pradesh legislature to adopt a resolution spelling out where it stands on the issue of bifurcation. 
    The resolution of the state assembly will not be binding. Under the Constitution, the power to create new states and alter the boundaries of existing ones rests solely with Parliament. 
    The Congress's anxiety to clinch the issue swiftly was evident from the way AICC general secretaries Digvijay Singh and Ajay Maken sought to showcase steps taken by their party for the creation of Telangana. These included, the announcement of December 9, 2009, something which the party had virtuallydumped in the face of resentment from the anti-Telangana camp. 
    Though Congress leaders concede the breakaway faction led by Jagan Mohan will remain the dominant formation in coastal and Rayalseema regions, they are banking on his desire to keep a distance from the BJP as well as legal troubles to hope that Jagan Mohan Reddy will not be averse to doing business post-poll. Anti-Telangana group's last-ditch efforts fails 
New Delhi: The 'united Andhra' camp of Union ministers and MPs made a last-ditch effort to stall the formation of Telangana, urging the leadership to debate the Srikrishna Commission report in Parliament before any announcement. Comprising ministers K S Rao, Chiranjeevi, D Purandeshwari and Panabaka Lakshmi, the group petitioned Congress general secretary in-charge of Andhra affairs Digvijaya Singh on Tuesday morning. However, Singh is reported to have said, "It is too late, this is a late reaction from your side." TNN

Kiran Reddy

Jagan Reddy

Chandrababu Naidu

Venkaiah Naidu

Rupee loses 107 paise on RBI’s mixed signals

Mumbai: The rupee fell by 107 paise (1.8%) to 60.49 on Tuesday, its third-lowest close ever, after RBI maintained the status quo on interest rates and failed to come up with any new measures to support the currency. 

    Contradictory signals from the central bank on the possible duration of its liquidity tightening measures announced earlier this month led to its resolve on the rupee being tested by the foreign exchange market. 
    The stock markets also gave a thumbs down to the policy with a 250-point drop in the sensex. The rupee fell soon after RBI's policy statement said that its liquidity tightening measures would be rolled back in a calibrated manner as stability is restored to the foreign exchange market. The statement surprised markets since the rupee was steadily weakening and inching toward 60 levels despite two rounds of liquidity tightening aimed at buffering the rupee. 
    The fall of rupee below the psychological mark of 60 on Tuesday, the steepest in past three weeks, erased all gains it made since the RBI first announced the measures to defend the rupee on July 15. It is now close to the all-time low of 61.21 hit early this month. 
    In what could be his last monetary policy review, RBI governor D Subbarao, also came out with a strong opposition to a sovereign bond issue and rubbished any need to approach the IMF. RBI firm on stemming rupee slide, says guv 
Mumbai: Taming the exchange rate is RBI's top priority as by its own admission a 10% weakening of the rupee adds over 1.2% to inflation due to higher cost of imports. The two rounds of measures capped bank borrowings from RBI to 0.5% of their deposits. The norms also forced banks to maintain 95% of their cash reserve requirements on a daily basis as against a quarterly average earlier. These short-term measures have pushed up short-term rates above 10% and yields on 10-year bonds have crossed 8%. If these conditions persist till Septemberend, banks stand to make big losses through provisions for depreciation on bonds. 
    Subbarao, however, denied that RBI could be seen to be vacillating on its resolve to stabilize the exchange rate. "We have not used the word temporary very advisedly because RBI does not want to get locked into a timeframe on how long these measures might be necessary. We are determined to control volatility in the exchange rate. There will be consequences for this; there will be pain in the economy. Somebody will have to bear these costs which are inevitable and unavoidable. But we will persist with these measures and implement them consistently in order to achieve the intended results," said Subbarao, whose term as governor ends on September 4, 2013. 
    "In our view the government could increase import duty on select commodities, such as electronic goods, to reduce the import bill," said Samiran Chakraborty, head of regional research, South Asia in a research report. 
    RBI left the policy repo rate at 7.25% and retained cash reserve ratio requirement at 4%. It also cut its growth forecast for the year to 5.5% from 5.7% earlier. Bankers, under pressure from the finance ministry, have committed to hold rates. However, if the rates persist for 6-8 weeks, most will be forced to review their rates.

Cong clear loser, but BJP still far from victory: Poll Regional Bosses Could Emerge As Major Force

We could end up with a Lok Sabha in which, for the first time, the single largest party has less than one-fourth of the 543 seats and no front has even a third. That is what would happen if elections were held now, according to a Times Now-CVoter opinion poll. It projects that the NDA would win 156 seats with the BJP getting 131 of them, while the UPA would win 136 with the Congress pegged at 119.      The poll estimated that the 'Third Front', which includes the Left, SP, RJD, TDP, BJD and some other regional parties, would win 129 seats and the 'Fourth Front', including the BSP, Trinamool Congress and AIADMK, would win 122. In short, there could be a fairly even four-way split, though the Third and Fourth Fronts are not really firmly established, at least as of now, and others  may also morph in the coming months. Poll gives Sena-BJP 26 seats, 17 to Cong-NCP in Maharashtra      If the predictions of the Times Now-C Voter opinion poll come true, the SP, BSP, Left, AIADMK and Trinamool would each have between 22 and 33 seats, possibly giving them a crucial role in the formation of the next government in New Delhi.      With the two big national parties put together not winning even half of the seats, the regional bosses would really be able to call the shots in such a scenario.      Among the bigger states, the poll projects SP and BSP between them winning threefourths of the 80 seats in UP, with the SP picking up 33 and the BSP 27. The Congress, which won 21 seats in the state in 2009, is projected to win just five in 2014 and the BJP is estimated to gain just a couple of seats to get 12.      In Maharashtra, it's advantage NDA and bad news for Sharad Pawar's NCP, if the poll has got it right. It estimates that the Shiv Sena will win 15 seats of the state's 48 seats and the BJP 11, the same as the Congress. The NCP is projected to get just 6 seats, Raj Thackeray's MNS opening its account with 3.      In Andhra Pradesh, a state in which the Congress won 33 of the 42 seats in 2009, the CVoter poll projects it will win a mere 7. Jagan Reddy's YSR Congress, a party that didn't exist in 2009, is estimated to win 14 seats and the Telengana Rashtra Samiti 11, leaving just 7 for Chandrababu Naidu's TDP. Of course, the AP numbers could change dramatically once the formation of Telangana is announced, as expected soon.      In West Bengal, Mamata Banerjee will continue to fly high despite her alliance with the Congress having broken up since the last elections. The poll projects that the Trinamool Congress will win 22 of the state's 42 seats and the Left will win 17, a gain of two seats for each of them, while the Congress tally will drop from 6 to 2. In Bihar, the break-up between Nitish Kumar's JD (U) and the BJP seems to be hurting the former more. In fact, the poll projects that the BJP will emerge as the single largest party in the state winning 14 of the 40 seats, Lalu Prasad's RJD coming a close second with 12 and JD(U) in third place at 11.      For the full report log on to www.times of india.com

Coming up in BKC, a convention centre bigger than Nariman Pt RIL Gets State OK To Develop 82 Lakh Sq Ft

Mumbai: Plot C-64 in Bandra-Kurla Complex (BKC) may well be the city's largest construction site. The sanctioned builtup area, 82 lakh sq ft, on the 18.5-acre plot will be equivalent, or perhaps more, than that of Nariman Point, which has over 35 office towers, each with a built-up area of about 2 lakh sq ft on an average. 

    The BKC plot's developer, Reliance Industries Ltd (RIL), recently began work on a much-delayed exhibition-cum -convention centre, commercial complex and service apartments. The project got the state environment department's clearance last month. 
    Plans cleared include an 18-storey tower with four basements for parking, a commercial complex and a 348-room block of flats. Most of the builtup area will comprise parking, lobbies, staircases and terraces (non-FSI areas), with living space being 33.5 lakh sq ft. Rival firm dragged BKC project to court 
Mumbai: Work has commenced on plot C-64 in BKC and will tak ethree years to complete, said MMRDA commissioner UPS Madan. The authority, which controls BKC, earned a few thousand crores in a decade by selling plots on long lease. 
    An RIL spokesperson said designs were being finalized for the Rs7,566-crore project. 
    What led to the delay?RIL(its chairman is Mukesh Ambani) won the bid in January 2006 after quoting Rs 1,104 crore, a record. An RIL representative had then said Mumbai was soon to get a world-class convention-cum-exhibition centre "between Dubai and Singapore". 
    But Mukesh's brother Anil, whose Reliance Communications & Infrastructure Ltd (RCIL) was a strong contender for the plot, moved court. RCIL objected to MMRDA's grant of additional built-up area to RIL after the bidding process. RCIL questioned MMRDA's ''largesse and bonanza'' to RIL after the ''tender wasduly approved''.Describing the decision as ''totally irrational, arbitrary and capricious'', RCIL said it would have quoted higher (its bid was Rs 1,011.12 crore, Rs 93 crore less than RIL's) had it known that MMRDA would sanction additional construction rights. A source said the dispute between thebrotherswas resolved. 
    Two years ago, the Wadhwa Group was believed to be negotiating with RIL to jointly develop the plot. When bids were invited for the plot in 2004, the highestoffer wasRs75croreby a pandal decorator. It was promptly rejected: not only was it too low, but also the company wantedtodefer payment.

Cost of plot | 1,104cr Project cost | 7,566cr Completion by | 2016

Walmart’s India Woes have a Mexican Link

Collateral Damage? A slew of sackings, capped with the exit of Raj Jain, allegations of bribery and violation of forex laws… The world's largest retailer is in the eye of a storm in India

Lately, the dark joke among the Indian staff of Walmart is that people lose jobs whenever Donny Rumsby, its vicepresident of asset protection for Asia, comes calling. As they did on a sultry June morning, when Rumsby came calling, this time along with Scott Price, head of Walmart's Asia operations. 

Price called Raj Jain, the man who had helmed Walmart's India operations since its inception in 2006, to Hotel Vivanta by Taj in Gurgaon, a stone's throw away from the company's office, and told him that his services were no longer required, according to three Walmart officials familiar with the development who spoke on the condition of anonymity. 
While Jain stayed back in the hotel, Price and Rumsby drove straight to the company's office in Gurgaon's Sector 53 and immediately called a townhall. Price stunned the staff assembled in an open space on the fourth floor by announcing that Jain was "no longer" with the company and introduced an interim replacement, Ramnik Narsey. There had been a question mark over Jain's continuity given the circumstances circling Walmart India. An internal investigation was on to see if company officials had paid bribes to secure clearances and business advantage, thus violating a stern American anti-corruption law. The entire legal team that procured licences for the company had been sacked. A stop sign had been placed on new stores. 
Even so, such an exit — sudden, dramatic and unceremonious — was unexpected. As chief executive of the company that had come to symbolise everything 
good and bad about Big Retail, Jain had tackled odds and hostility to build a $500-million business and opened the way for bigger things. 
He had just returned from a Walmart shareholder meeting in Bentonville, US, and was busy preparing a presentation for his bosses on the India operation's future plans. That presentation was made irrelevant. 
Asked about the reasons for Jain's sudden departure, a Walmart spokeswoman replied in an email statement: "I am unable to share more with you regarding this change, but we wish Raj well on his future endeavours." 
But senior officials joining the dots — at Walmart India, at its Indian partner Bharti and at fellow multinationals governed by the same American anti-corruption law — paint a picture that has less to do with the affairs of the world's largest retailer in India and more to do with its affairs in Mexico.

Why Warren Buffett Bailed on India

 India has long been viewed as a value investor's dream: rapid growth, 1.2 billion people pining for a taste of globalisation, and underdeveloped industries ripe for turnarounds. So it surprised few when the genre's guru, Warren Buffett, placed a bet on the world's ninth-biggest economy. What did come as a surprise was last week's decision by the billionaire's Berkshire Hathaway to give up on India's insurance market after just two years. Adding to the drama, the withdrawal came the same week India unveiled plans to open the economy as never before to FDI. Buffett isn't alone. Walmart, ArcelorMittal and Posco are pulling back on investments that they had announced with great fanfare. What's scaring foreigners away? A rampant political dysfunction that has stopped India's progress cold. Headwinds from New Delhi are contributing to the slowest growth rates in a decade, a record current account deficit and a 7.9% plunge in the rupee this year. Foreign-direct investment slid about 21% last fiscal. The problem is an Indian government that won't get out of its own way. The long debate over foreign-investment limits says it all. In September 2012, Manmohan Singh's governmentpassed a law allowing big retailers to open stores directly, yet no one has. Reasons are legion: too many prerequisites; constraints on whom goods can be purchased from; a raft of regulations limiting franchise models and factory construction; and the hairpulling need to negotiate separately with each of the states. 

Big Fizzle 
India has fallen into a self-destructive pattern of relenting on big issues, then killing would-be investors with the details. Take the experience of Ikea. Not content with the Swedish icon investing $2 billion, the government played hardball. It tried to bar Ikea from selling food in stores; Ikea stood its ground. But the damage was done. Executives fully expect to have to navigate India's bad infrastructure, rigid and often unskilled labour markets, red tape and official corruption. They're less keen on tripping over the fine print of vaguely written laws and local power brokers with agendas at odds with New Delhi. Headlinemaking disputes involving household names like Ikea, Walmart and Berkshire don't help India's image. Worse, the uncertainty is breeding a huge trust deficit. On July 17, India moved to open important sectors such as defence, power and telecommunications to foreign investment. It's heralded as the nation's "big bang." Big fizzle is more like it, as big inflows are likely to continue eluding India. Any major foreign investor cannot ignore the experience of Vodafone, which is still wondering if it will take a multibillion-dollar loss on a deal, thanks to tax-policy changes. It's time for the government to stop squandering India's potential. The lack of transparency and reliability makes it virtually impossible to consider long-term investments. What should India do? Pass clear and strong investment laws that will survive the change of government and offer a code of conduct for state leaders. India must strengthen the rule of law as it applies to foreigners so they'll trust their money is safe. Finally, India must think long-term. Today's motivation for inviting more foreign money is to narrow the current-account deficit. The goal should be to raise competitiveness, gain fresh knowledge and create better-paying jobs for the future. India is proving that size doesn't guarantee its inevitable rise. Only true economic reform, political openness and more proactive leadership will do that — and get the Buffetts of the world to come to India and stay. 
    Bloomberg

William Pesek

PROPERTY MANAGEMENT IN INDIA COMES OF AGE

COL ASHUTOSH BERI outlines the intricacies of the concept and highlights the benefits that societies can get from property management firms

    When Jones Lang LaSalle India first launched property and asset management services in India in 2003, the number of residential and commercial complexes being managed by an international property consultancy was minimal. The perception back then was that such professional services are too expensive. 
    With time, this perception changed and developers began opting for such services by International Property Consultants (IPCs), learning to see them as more than just manpower vendors and accepting property management as a specialised and cost-saving service. This change in the mindset is very evident with the increasing number of housing societies that are opting for professional property management services by IPCs. 
    Today, the market for professional property management by IPCs in India, is valued at around Rs 1,000 crores and is expected to grow by at least 20 per cent annually. The maximum demand for these services is in the NCR region, which has seen a massive supply of projects and has an equally staggering number of projects in the pipeline. The second-highest demand comes from the south, primarily from Bangalore and Chennai. In Mumbai, these services are preferred more for the commercial office buildings and highend residential societies. 
MAKING A DECISIVE DIFFERENCE 
Usually, limited integrated service providers venture into management of residential condominiums and ensure that the RWA (Resident Welfare Organisation) nominates members for responsibilities of maintaining and employing security and housekeeping directly, in order to reduce the cost. This is a redundant model. 
    In other words, IPCs specialised in property management, provide a one-stop solution and additionally support in various technical aspects to professionally and cautiously manage safety, security, cleanliness, etc., and maintain a very strict adherence to statutory requirements. This ensures both, tangible and intangible benefits. 
    For residential property management to become feasible for both, the client and the agency, the total saleable area of the project would be around 3,00,000 sq ft for a mid-level housing society. 
THE GENERAL LIST OF SERVICES INCLUDES THE FOLLOWING: 

•
• Electro-mechanical (E and M) services 

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• Housekeeping services 

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• Security services 

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• Clubhouse management 

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• Promotion displays/space on hire 

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• Help-desk/concierge services 

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• Hardscape/landscape management 

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• Garbage management 

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• Events and promotions management 

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• Vendor management 

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• Annual maintenance contract 
(AMC) management 
    In the case of cities like Mumbai, there is demand for enhanced services which include additional aspects such as clubhouse management. 
RESIDENTS' RESPONSIBILITIES 
Though professional property management in residential complexes encompasses a multitude of functions and services geared towards providing a comfortable and hassle-free experience for tenants, there is a certain onus of responsibility on the tenants as well. Without such cooperation, the smooth functioning of the project is bound to be compromised sooner or later. 
    To encourage this participation, two sets of guidelines are handed over to tenants. The first is the fit-out guidelines list, which highlights the dos and don'ts that residents need to adhere to, while undertaking fit-outs in their apartments. The basis of these guidelines is to avoid structural damage to the building. These guidelines also include a set of instructions pertaining to how to bring materials into their flats without causing disturbance to other residents. 
    The other set of guidelines is an occupants handbook. This highlights the list of dos and don'ts to be followed during occupancy. This handbook is typically modified, depending on the requirements of the developer and the society. 
THE NUTS AND BOLTS 
The deployment of property management manpower in a housing complex is based on the total saleable area of the project. In general, it consists of five security guards, four house-boys and two personnel from the technical team for every 1 lakh sq ft. The structure of the management team varies with the property and the scope. 
    For managing any housing complex, a team which consists of a property manager, a housekeeping executive, a security officer, a technical manager and helpdesk executives, forms the core management team. This team is based onsite and further manages a team of houseboys, security guards and technical support personnel, all of which are also stationed onsite. 
    There are schedules made for carrying out preventive maintenance and maintenance contracts are issued for key plants and equipment. The onsite team's role is to coordinate with the vendors servicing these contracts and to ensure that all activities are carried out in a timely manner. 
COST TO THE DEVELOPER OR SOCIETY 
The average cost of professional residential property management is Rs 2-3.5 per sq ft for normal projects and between Rs 5-7 per sq ft for premium housing projects. In the case of housing societies, maintenance charges or common area maintenance charges (CAM) are worked out to include all expenses required for operating and maintaining the society. Besides day-to-day expenses, these also include AMCs, insurance and sinking fund. The developer may typically add overhead expenses for infrastructure and resources provided by them to maintain the society. CAM charges are generally kept fixed for a period of one year and any upward or downward revision of the same may be done in subsequent years annually, with the surplus or deficit being credited or debited to align CAM as per expenses. 
SAVINGS AND OTHER BENEFITS 
Significantly, the increase in interest in buying into or tenanting residential buildings that feature professional property management services - as opposed to buildings that do not, is between 30-40 per cent. The cost savings to developers/project owners who opt for professional property management services rather than relying on their own capabilities, depend on the type and age of the building. However, a saving of at least 5-7 per cent is generally achievable in the initial stage. This figure cumulatively increases as the various processes being implemented edge out redundancies and increase efficiency. 
PERSONNEL TRAINING 
A specially-trained workforce is a critical aspect of professional property management and this cannot be compromised on. Though most employed personnel come with prior experience, the landscape of this service vertical itself, is changing constantly. Buildings are being designed or re-designed to comply with emerging technologies, safety parameters and sustainability standards, and upgrades to overall operational efficiency are a constant process. The specifications of buildings and the facilities and functions that need to be maintained tend to differ from project to project. For this reason, property management employees at all levels need to constantly upgrade their knowledge and hands-on skills. 
    In the case of professional property management services by IPCs, such training is provided on a daily basis to the basic level staff, which includes the houseboys and security guards. This training is usually imparted when the shifts change to ensure maximum attendance. The duration varies from 15-30 minutes. Advanced training is imparted to onsite managers and executives. These training sessions are given by regional experts and can last between one to two hours. A happy byproduct of this training regimen is that property management employees at all levels, are enabled to advance their careers within the firm by proving themselves fit for more challenging roles. 
    (The writer is managing directorproperty and asset management, 
    Jones Lang LaSalle India)

No tax cuts, FSI sops for eco-friendly bldgs Govt To Soon Release Code For Green Structures

Mumbai: After dangling a carrot in front of developers and citizens to promote environment-friendly buildings, the state government seems to have yanked it away for now.      For the last few years, the state had been hinting at providing water and property rebates and providing FSI incentives. But now these sops find no mention in the first-of-its kind "green building code" being readied by the government, said sources.      The new code, which will include mandatory and voluntary reforms, are in the final stages of preparation and will be soon announced, said a senior state official.      Last week, state chief secretary Jayant Kumar Banthia convened a high-level meeting to discuss these reforms.      Sources revealed that the financial implications of offering rebates in property and water taxes could have scuttled these incentives with the state finance department reportedly wary of the option. There was also no consensus and clarity on the FSI incentive plan, an official revealed. Finally, it was decided that the mandatory reforms in the new code must be pushed through without any incentive, the official added.      The government has, however, decided to continue with its initiative of granting priority for environmental clearance procedures to green buildings. Last year, the government introduced a scheme where buildings with green certification were given priority for environmental clearance; it was a tangible benefit as the environment clearances usually take over a-year-and-a-half. This initiative has been gaining popularity with developers.      The state has decided to first enforce the new code for government and semi-government owned and aided buildings; private buildings will be granted a "window period" of three years to comply with the mandatory reforms.      A few of the mandatory reforms include implementing rainwater harvesting for both roof and non-roof areas, planting trees on at least 15% of net plot area, using colour coded bins for waste segregation and reusing 50% of the construction waste. The state has included transplantation of 75% of uprooted trees as a voluntary measure, but made plantation of five saplings of every uprooted tree mandatory.      "Green buildings can reduce the footprint of greenhouse gas emissions by 20%," said Valsa Nair-Singh, secretary, environment department, adding that the government plans to take up promotion of green buildings as a mission. Chief minister Prithviraj Chavan has been pushing the administration to evolve a uniform code for green buildings. SOME OF THE MANDATORY REFORMS  Implement rainwater harvesting  Use minimum 50% of non-roof areas for parking, walkways, podiums with open grid/grass pavement  Plant native species of trees in at least 15% of the net plot area; plant five saplings for every tree uprooted  Place colour coded bins for segregation of waste in the building compound      Place solar light panels in common open areas, passages, gardens and internal roads; instal solar water heating system to take care of at least 75% of hot water requirement      Instal dual flush cisterns (capacity of 3-6 litres) in water closets      Limit maximum flow of water to 10 litres per minute; instal low flow urinals (2litre/flush)      Source at least 10% of construction material locally to reduce emissions due to transportation      Reuse 50% of the construction waste material within or outside the site, or donate it or sell it for recycling or reuse

Rupee’s tumble hits leisure travel

Mumbai: The rupee's depreciation is costing Indian travellers a pretty penny. Not only are air fares costlier, but also overhead travel costs, including hotel tariffs, and sight-seeing and shopping expenses have also increased.      A 14-day budget holiday to the US for one person would have cost around Rs 1.25 lakh in January 2012. With the  rupee dropping from Rs 45 against the dollar in 2011-end to Rs 60 now, the same package costs Rs 1.8 lakh. Other popular destinations like Canada, Singapore and Dubai have also become more expensive as their currencies have gained against the rupee. As a result, leisure travel to the West and Southeast Asia will suffer considerably, say experts and travel agents.      The rupee's tumble started in 2011-end. "That was the first blow, making many alter travel plans. Costs spiralled above budgets," said a Fortbased travel agent. "With the rupee's latest fall around two weeks ago, bookings for American holidays for the next three or four months are at least 30% less than usual."      Against the Canadian dollar, the rupee has fallen from Rs 51 last year to Rs 57—a 12% fall. Travel costs have risen accordingly. The Singapore dollar cost Rs 38 in 2011; today it is Rs 45—an 18% rise in two years. The value of the Australian dollar has risen by 22% in two years—from Rs 45 in mid-2011 to Rs 55 today. Against the euro and the pound, the rupee has fallen 22-25% over two years. "Air tickets to London are 20% more expensive now," said a travel agent. The overall cost of a holiday in Britain is about 30% more today, which is comparable to the increase in the cost of an American holiday.  20% fall in forex travel card biz seen      When the Indian rupee weakens, the forex travel card market shivers. A forex card is a prepaid card on which foreign currency is loaded and can be only used while travelling overseas. "The retail business would see a dip of 20% if the rupee continues to fall," a top player said. Already, forex card sellers, largely banks, are seeing the impact on the amount of currency loaded. The forex travel card market, estimated at $1.9 billion in India, has grown at 15-18% in the last two years, primarily driven by the retail segment comprising leisure, medical and student travellers. P 15 Travel spots in West out of bounds  Mumbai:Had the rupee not lost so much ground against the pound, recent tourism promotions by Britain would have attracted better response.      "A holiday in continental Europe, too, is becoming out of bounds. Indian travellers need to increase their budgets by almost 40% to afford a European holiday," said an Andheri-based tour operator. "Greece has become quite popularamong Indians because of a short travel duration, but the rupee's depreciation will affect travel to that country."      A five-day trip to Singapore in 2011 used to cost about Rs 50,000 for one person. "Today it would be Rs 75,000," said Rajesh Rateria of Cirrus Travels. "The budget traveller has shifted to cheaper holiday options or shortened trip durations. Since US packages aren't shorter than 10 days, those who had planned a holiday there have changed plans and opted for destinations within India."      Relatively, Dubai used to be much cheaper than western destinations, but it too is more expensive for Indians than two years ago, said Pradip Lulla of Cupid Travels. The reason is the dirham has gained 36% against the rupee in the last two years.      "Only travel related to business and education will stay steady. Indians will continue to travel, but budget travellers will look for alternatives," said Lulla.