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No more bandhs and agitations, says Telangana IT Minister K T Rama Rao

Source: DC June 5,2014
IT minister K.T. Rama Rao shares a light moment with lawyers who requested him to withdraw cases framed against them in connection with the Telangana agitation. (Photo: Deccan Chronicle)

Hyderabad: The IT minister of Telangana, Mr K.T. Rama Rao, says that agitations and bandhs are things of the past, and that as the party running the government, the TRS will not call any more bandhs, even over the Polavaram issue.
The minister says that  although Hyderabad has lost some of its sheen due to agitations, it will now have an enhanced cosmopolitan feel and Chandrababu Naidu will be no threat to the IT industry of Telangana.
Excerpts from the interview:
The industry has seen repeated bandhs over the Telangana issue, which has led to a sense of apprehension. What can you assure industry as well as the IT professionals from across the country and Seemandhra working here?
The agitations were for a specific purpose, which has been achieved. Therefore there is no need for any apprehensions. It is a sad thing but in this country there is no other way to register a protest. It was the leadership in Delhi that delayed the decision for so long, and sadly a decision was taken only after so many people lost their lives.
We have promised the people of Telangana that we will improve their lives, and we will now deliver on the promises.
The political issues will remain as there are no two southern states, which do not have disputes over the sharing of water. The bandh call for Polavaram was technically before the government was formed. We are serious about the two lakh tribals in the Polavaram-affected villages, and now we will fight it out in the SC. I can assure that there will be no political witch-hunt, absolutely no political vendetta.

Mr Chandrababu Naidu is expected to bring about a IT revolution in AP. How do you plan to compete?
Investors will remain in Hyderabad as long as it is profitable for them. I plan to build on and enhance the brand image of Hyderabad. No businessman will go away from Hyderabad over regional affiliations. While Hyderabad belongs to Telangana, it also belongs to the entire country, and it will retain its cosmopolitan feel, and we will enhance it further.
After the past few years of apprehensions in the IT sector, I will focus on bringing the sector back on track. Whoever has already invested in Hyderabad, we want them to stay and also expand, and we want to attract more investments. Andhra Pradesh can grow but Hyderabad will not lose its edge. The ITIR project will take Hyderabad to the next level of growth.

What challenges are you are expecting?
One of the biggest challenges will be to develop the other parts of the state and the power shortage is a big challenge. The challenge would be to concentrate on developing the remaining half of the state (apart from extended Hyderabad), which is rich in resources. We need more power to increase irrigation potential. The challenge is not only to spur the growth of different sectors in the remaining part of the state but also structure Hyderabad to have equitable growth.

What are the positives you hope to bank on?
While many have been saying that Hyderabad has low real estate rates, I see it as a huge advantage. For any company that wants to set up an office here, the low cost of real estate can be a big attraction. Also housing is cheaper here. If we take Bengaluru and Chennai,  Hyderabad has a clear advantage.
While Bengaluru has only one-third the infrastructure of Hyderabad, the real estate is three times costlier. In Chennai again, the infrastructure is again one third of Hyderabad while the real estate cost is double. In addition to this all the incentives that were available earlier will be retained by the new government.

What are your plans to expand the IT industry in Hyderabad, bringing in new companies and developing clusters across the state?
The current IT corridor, which extends from Gachibowli up to Adibatla, is where the ITIR (Information Technology Investment Region) is coming up. For developing IT our focus will be on the ITIR. ITIR will take Hyderabad to the next level of growth, and we want to expedite it. This will result in a huge jump in employment.
For the remaining five districts of the state, which are not covered by extended Hyderabad, the idea is to develop other industries that will provide employment to people there, and keep them from migrating to Hyderabad. We have to improve power supply and irrigation in other districts, and must also exploit our resources.

What new facilities are you planning?
The growth spurt that was expected from the ORR (Outer Ring Road) has unfortunately not come. Therefore we are planning Regional Ring Roads connecting the main city through radial roads across the ORR. While we have the IT corridor from Gachibowli up to Adibatla, the growth is lopsided along the ORR.
We plan to develop a Pharma Park, which will provide infrastructure for Pharmaceutical companies; an education park bringing in education and research institutions; a leisure and amusement park, and a Sports City for multiple sports academies.
Also since the entire development now is towards the west side creating new hubs along ORR will help growth.

How do you plan to address the mounting security concerns in the IT corridor and the rest of the city?
We are planning to enhance security in the IT corridor as well as the city. We need 3,000 cameras in Cyberabad alone while another 7,000 cameras are needed for the rest of the city. We have only 315 cameras now, and the plan is to increase their number. I want information technology companies to sponsor them as part of their CSR (Corporate Social Responsibility) so that the city’s security cover improves.
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Hyderabad, tale of a city shared by two states

IBN Live  June 2, 2014



The city of Nizams and Pearls is not a newly built city like Chandigarh, which is a joint capital for both Punjab and Haryana. It is not even located on the border of two states. Hyderabad has been the capital of Hyderabad state and an integral part of the newly created state of Telangana. Hyderabad has a history of over 500 years. It was the richest city under the Nizams.

It is quiet natural that the people Telangana demand that Hyderabad was and will remain the capital of their state and the Andhra Pradesh has no right over it.

The Telangana Bill passed by the Parliament has declared Hyderabad common capital of both the states for a period not exceeding 10 years. The Telangana people have reluctantly agreed to it.

The administrative control over Hyderabad will be with the Governor of Telangana till Andhra Pradesh government shifts to its own capital.

The Bill says, "the Governor shall have special responsibility to the security of life, liberty and property of all those who reside in the common capital of Hyderabad. The Governor's responsibility shall extend to matters such as law and order, internal security and safety of all vital installations in the discharge of these functions. This transitory provision shall cease to be have effect after such period not exceeding 10 years."

On and from the appointed day, Hyderabad in the existing State of Andhra Pradesh, shall be the common capital of the State of Telangana and the State of Andhra Pradesh for such period not exceeding ten years. Hyderabad to be common capital for States of Telangana and Andhra Pradesh.

After expiry of the period referred to in sub-section (1), Hyderabad shall be the capital of the State of Telangana and there shall be a new capital for the State of Andhra Pradesh. Explanation - In this Part, the common capital includes the existing area notified as the Greater Hyderabad Municipal Corporation under the Hyderabad Municipal Corporation Act, 1955.

Some Constitutional experts argue that it is a flawed decision by the Parliament and it can be over turned by the Supreme Court. Because, the Constitution makes it clear that a Governor can administer a city only if it is a Union Territory. Since Hyderabad is a part of Telangana and it has an elected government, the decision to entrust the administration to governor is wrong.

The matter is already being heard by the Supreme Court and the hearing will continue in August.

Anticipating this, the Union Law minister in the previous government Kapil Sibal told both Lok Sabha and Rajya Sabha that the next government can rectify it by amending the Constitution, if the need arises.

It leaves the question over the Constitutional status of Hyderabad open to judicial scrutiny.

Hyderabad had been a rich provincial city till the late 1990s. The Information Technology and bio-technology boom hit the city and it changed the face of the city. People started talking more about Cyberabad and its glitzy towers than its famous Char Minar or Hussain Sagar.

The people from all over India have migrated to Hyderabad looking for jobs and new opportunities. The contribution of the risk taking and visionary entrepreneurs from Seemandhra in building Hyderabad and its surrounding areas is also huge. But, everything they built now belongs to Telangana and AP will have to build its new capital from the scratches.

The TRS chief and the first Chief Minister of Telangana K Chandrashekhara Rao has started his administration on a conciliatory note and wants the business community to stay back in Hyderabad and rest of Telangana.

Hyderabad may witness some dull moments and a sluggish growth because some investment is likely to move to Andhra Pradesh and its to be built Capital. The real estate has already collapsed in Hyderabad. But, the IT and Bio-Technology Companies are unlikely to shift base from Hyderabad, which is has got good infrastructure.

Since Hyderabad is a very well developed city, the KCR government does not need to do anything for its development once it comes under Telangana Government's control.

Will Hyderabad continue to grow and retain its place in the future? Only the time will tell.


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First Metro Rail up for a trial run soon

The Hindu   June 2, 2014



The first metro train that was rolled out from South Korea to Hyderabad would be put on tracks for test and trials in next couple of days before it is run on the first phase of the project from Nagole to Mettuguda on March 21, 2015, according to L&T Metro Rail, Hyderabad, Chief Executive & Managing Director V.B. Gadgil on Saturday night.

Addressing Tours, Travels and Hoteliers at a SKAL International event, he said the three coach train, which reached the city last month in the third week of May, would be put to trial runs on 8 km stretch atop the viaduct.

Pointing out that the project was taken with the total outlay of Rs.20,000 crore, he said, it was the largest investment of L&T had ever made in any one single city.

The Communication Based Train Control (CBTC) to be used for the rail system will help determine accurate position of a train unlike the traditional signalling systems thereby making it efficient and safe.

“It is the next generation of signalling technology being adopted in subways and other new modes of transportation,” he explained.

To ensure further safety, an empty train will be run every morning on the entire stretch to check if all the lines are intact and safe for the travel of the passengers.

The trains will also be generating 30 per cent of the power using the regenerative electric braking where the momentum is converted into electrical energy and feeding back to power supply system, while braking. It will also help reduce energy requirement from the grid, said Mr. Gadgil. When it is completed in five years span, it will register a record for the shortest construction period for 72 km stretch in just five years.

The 66 overhead stations coming up will have senior citizens and disabled friendly facilities with escalators, elevators and stairways.

Each station is designed to accommodate two train passengers i.e, 1,800 passengers at any given point of time. The three coach trains can take in a maximum of three hundred passengers and gradually the number of coaches can be increased to six during peak hours to help carry double the number of commuters.

Effectively, it means 60,000 riders can be moved in a single direction every hour, with a train every two seconds.

No impact of bifurcation

Though completely automated, there will be a ‘driver’ to ensure opening or closing of doors since the trains will not move even if there is a gap of even an inch. He will also be having an emergency button to be operated if necessary. The CEO saw no impact of State bifurcation on the project.

Welcoming the gathering, Mr. Vijay Mohan Raj, president of SKAL International No. 606, Hyderabad, informed that local chapter in Hyderabad completed the bidding process of bringing SKAL World Congress to be Hyderabad. Once the bid goes through in favour of Hyderabad in the World Congress to be held in October this year in Mexico, then SKAL local chapter will host the next World Congress in Hyderabad in 2016.

They are confident of getting the bid in our favour, informed Mr. Vijay Mohan Raj.

SKAL local chapter targets to make Hyderabad the Tourism Capital of India informed Vijay Mohan Raj.

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'Buy property in the metro rail belt'

Business Line  June1, 2014
Go for property in localities where connectivity will improve, says the Associate Director of Cushman & Wakefield
Metro rail projects in cities such as Chennai, Bangalore and Hyderabad hold the key to property price appreciation says Kalpana Murthy, Associate Director, Residential Services, Cushman & Wakefield, a global real estate advisory.

How can buyers negotiate with builders for good terms?

Two things will help you land a favourable deal. If you can make large payments upfront, developers are willing to give you discounts.
Due to the nature of the business, most of them face cash issues. Also, compared to central locations, you can get better deals in peripheral areas that are not as well established as residential localities.

Many builders are offering extras now. How can one evaluate these offers?

You have to be clear on what your priorities are. Do not compromise on vital parameters such as location, developer record, title or layout.
Beyond that, if frills are thrown in, it is good. In some cases, you will find that the extras are not adding any value. Say, if the builder is giving a wardrobe and you already have one, there is no value.

What are common mistakes home buyers make?

Home purchase decisions tend to be a lot more impulsive, rather than arrived at based on analysis. For instance, there must be clarity on whether the home is for self use or investment.
Many a time, people buy because a friend or relative, who is savvy in purchases, had bought a property.
What may be suitable for him may not apply to you; so do your own homework. And if there is one issue bothering a home buyer now, say car parking, emphasis is placed only on solving that issue.
Do not be overly focused on one aspect; evaluate all features. One more aspect that is often overlooked is the long-term maintenance plan. A well-maintained complex retains value and fetches better rents; so pay attention to this.

What extra checks should first-time home buyers do?

First, know your loan eligibility and look for projects in your budget. This will save you the agony of getting into a commitment that is too financially stressful.
Getting faster possession is important, as you can start saving on rent by moving into your home.
Check the payment terms to ensure that they are not front-heavy. The total cost of possession includes the interest you pay. Also, you need to do apples to apples comparison of price and the features you get.
For example, a property on the main road would be more expensive than one that is a little way off. There are also differences in the loading factor, which decides how much of the super built-up area is useable.
Do a side-by-side comparison of two or three properties to see if there are any hidden costs before deciding.

For someone with, say, a 10-year horizon, what would you recommend they invest in?

Personally, I buy land with a long-term view of over 20 years. The value of a flat purchased may increase, but after 15 years or so, based on how it is maintained, tends to flatten or even fall. You also have to worry about renting it and maintaining it properly, especially if the property is far away. Land does not have these issues.

What are the property investments you are optimistic about?

City localities in the metro rail belt are a good short-to-medium term bet in my opinion.
We will certainly see residential market pick up as connectivity improves. It is better to rely on metros, tier-2/3 cities, which have diversified and broad-based industries, rather than on a single sector.
I am optimistic about affordable and mid-size homes. Retirement communities, where you get service assistance, are also seeing good demand from those in the 40-50 year age group who are planning their senior life.

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Hyderabad Metro Rail Updates






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Seemandhra capital won't be big as Hyderabad: Venkaiah Naidu

Source: Times of India  June1, 2014

The two Naidus are speaking in different voices. While AP chief minister-elect Chandrababu Naidu's vision of constructing a new capital on the lines of Singapore appeared to have swept him into power, new Union urban development minister Venkaiah Naidu says the new capital for AP cannot be a big one like Hyderabad. 

Venkaiah Naidu said on Saturday that the new capital would be a medium-size city. "You cannot have a Hyderabad-like capital. At the same time, you also cannot build a bare administrative block and call it a capital," he said adding that the capital should have all facilities like hospitals, schools, colleges, recreation, entertainment etc to attract outsiders. 

He said he has had a preliminary discussion with Chandrababu Naidu on the capital and added that the location of the capital would be revealed by the state government. Stating that the Union urban development ministry would have a bigger say in the development of the capital, Venkaiah Naidu said the state government alone cannot build the capital. 

Singapore was the buzz word of the TDP president's election campaign. With TDP sources insisting that their chief has still not given up on the Singapore model for the new capital, Venkaiah Naidu's 'medium size model' is taking Chandrababu's approach to a conflict path. However, sources in both the parties said there will be no friction between the leaders of the two parties on development issues, including the building of a new capital. 

Speaking about the development of Hyderabad, Venkaiah Naidu said Prime Minister Narendra Modi's idea of urban development would revolve round the 'smaller towns concept'. "We have a long-term perspective. To meet the demand of the urban population in 2051, when the share of urban population in the country would be 50%, we are examining a plan to develop satellite cities around Outer Ring Road on the outskirts of Hyderabad," he added. 

To discuss urban development in the context of rapid urbanization, a national conference of municipal and urban development ministers of states has been planned after the first session of Parliament in the first week of June, he said. During the day, Naidu reviewed the progress of various development projects like the Hyderabad Metro Rail, Rajiv Awas Yojana, National Urban Renewal Mission, JNNURM etc, in which the Centre is a stakeholder. 

Earlier, Naidu addressed party workers at the state BJP office. Taking a dig at Telangana chief minister-designate K Chandrasekhar Rao's belligerent attitude toward the Centre with regard to the Polavaram project, Venkaiah Naidu said "a confrontationist attitude towards the Centre would do no good to the state. Development is possible only if the state and Centre are mutually cooperative."

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Realty set for real good times ahead

The Hindu  May 29, 2014

With the ‘T’ issue resolved and a new govt. in place, construction is expected to shrug off the inertia of the past 4 years and look to better days ahead

It is a new optimism that the real estate sector breathes. Construction activity that had taken a hit in the city and its surroundings is set to pick up and witness steady, healthy growth in the next one year. The gloom of the past four years, industry insiders say, may well have run its course.

From a boom to a nosedive, and to the subsequent piling up of unsold stocks, the construction sector underwent a roller-coaster ride in the last six years. One of the primary reasons for the fall in property interests here was attributed to the protracted separate Telangana agitation.

“We look forward to a new dawn, for stable growth and a healthy, upwardly curve,” says P. Dasharath Reddy, president of the A.P. Real Estate Developers’ Association (APREDA). After the ‘terrible’ times of the last five years, a lot now depends on the new government: its governance would propel construction activity, he feels.

Estimates put housing needs in the city and suburbs at 25,000 new units a year. Most builders say there is very little unsold stock.

“The boom had the inventory going up high and consumption failing to match it. Hence, stocks piled up for a while but it got cleared,” he claims.

Since, there were not many major project launches last year, there could be a shortage of housing units next year, say some.

“Fresh supply (of housing units) in good numbers can be expected in 2016 as we can look forward to a rush for new launches,” says Anand Reddy, executive director of PBEL Property Development. He forecasts a revival by the year-end and also a robust 2015.

“Give six months for the new government to settle down and then the positive momentum will start building up,” Mr. Reddy says.

Telangana Builders Federation president C. Prabhakara Rao rules out the possibility of capital flight from Hyderabad to the new capital to be set up for A.P.

“Speculation has already driven land prices high in cities and towns being suggested as the new capital and those from here will not be keen on investing such amounts,” he argues.

Developers see a possibility of prices rising by the year-end.

“Property prices in Hyderabad are still in the reasonable range when compared to Chennai and Bangalore. Even if there is some appreciation, it will continue to remain affordable,” reasons C. Sekhar Reddy, president of Confederation of Real Estate Developers Association of India.

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