March 05, 2021

CREDAI Bengal Daily News Update | 05.03.21

Cement manufacturers hike prices to counter high input, fuel costs

With diesel prices up 34%, cement prices have been raised by up to Rs 30 a bag

With housing demand reviving and infrastructure development set to pick up pace, cement prices

are seeing an upswing.

In the past few days, prices of cement, a key raw material in the construction industry, have gone

up by Rs 20-30 per bag month-on-month in south and east India, and Rs 10-15 per bag in other

regions, note analysts tracking the sector.

In February too, cement prices were higher by about 1 per cent month-on-month and 3 per cent

year-on-year, noted other analysts.

Lower energy price had been a tailwind for the cement sector up to September last year, but is

now set to reverse as energy prices have risen substantially, said Amit Murarka, analyst at Motilal

Oswal Financial Services.

“Petcoke price is up 74 per cent year-on-year to $122 per tonne on both lower refinery runs and

higher sea freight. To mitigate the impact of higher petcoke price, cement producers have partially

shifted to imported coal. However, even this is up 24 per cent YoY,” the analyst said.

If that was not enough to drive costs higher, the price of diesel is up 34 per cent from a year ago,

on the back of a rise in crude oil price and increase in government duties, which will have an

impact on the freight cost of cement manufacturers.

“We estimate freight cost to rise by Rs 25-30 per tonne quarter-on-quarter in the fourth quarter

of FY21 and by another Rs 15-20 per tonne in the first quarter of FY22,” said Murarka of Motilal

Oswal.

Newspaper/ Online The Week (Online)

Date March 04, 2021

Link https://www.theweek.in/news/biz-tech/2021/03/04/cement-manufacturers-hike-prices-to-counter-high-input-fuel-costs.html

Cement production fell by around 6 per cent year-on-year in January, as per the core sector data

released by the union government. Cumulative production over April 2020 to January 2021 was

also down 16.6 per cent, the data showed.

However, cement demand has been picking up from February and is expected to continue till the

onset of monsoon as construction firms look to complete year-end deadlines, while the budget

allocations and funds are also likely to be passed on to the states, feels Milind Raginwar, analyst

at Centrum Broking.

Higher cement prices haven’t gone down well among developers. Real estate body CREDAI

wrote a letter to the Prime Minister earlier alleging cartelization in the prices of steel, cement and

other raw materials.

“Real estate developers are experiencing an inevitable increase in construction cost and are faced

with situation that will create a delay in delivery, stalling of projects in some cases, thereby

impacting the homebuyers at large,” it said in that letter.

However, the price hikes will help alleviate near-term margin concerns for cement manufacturers,

say analysts. Cement companies were hit hard due to COVID-19 as the pandemic put the brakes

on construction activities in 2020, in turn affecting demand for the key raw material. However,

with demand now improving, the expectation is that the price hike will be absorbed in the

industry.

“If the price hikes are accepted well this will ease the pressure on the cement industry mounted

by the increasing input cost inflation,” said Raginwar of Centrum.

A pickup in real estate activity, especially in small towns as well as affordable housing and

infrastructure projects is expected to drive cement demand this year.

“We believe rural demand will be the major driver for cement, considering the monsoon has been

favourable in most parts of the country. This could translate in an inflow of cash in the rural

economy, which could commensurate in infrastructure creation, thus augmenting cement

demand,” said Urvisha Jagasheth, research analyst, CARE Ratings.

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Housing scheme for labourers to be launched on PPP basis in

Gujarat

The announcement comes after an unprecedented migration of labourers to their home

states soon after the lockdown was announced last year. Migration of workers had crippled

production at industrial units in the state.

Waking up to the need of housing for labourers, the state government on Wednesday announced

that a scheme will be launched for providing housing to labourers near their factories.

The announcement comes after an unprecedented migration of labourers to their home states soon

after the lockdown was announced last year. Migration of workers had crippled production at

industrial units in the state.

“In order to ensure that the labourers get their dwellings nearby the factories where they work,

our government is going to launch Mukhyamantri Audyogik Shramyogi Ane Industrial Housing

Aawas (MASIHA) scheme,” Nitin Patel, deputy chief minister who also holds the finance

portfolio, said while presenting the state budget for 2021-22.

Under the scheme, housing for labours will be constructed at concessional rate on the public-

private partnership (PPP) basis. The state budget made a total provision of Rs 1,502 crore for the

labour and employment department.

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Newspaper/ Online ET Realty (Online)

Date March 04, 2021

Link https://realty.economictimes.indiatimes.com/news/residential/housing-scheme-for-labourers-to-be-launched-on-ppp-basis-in-gujarat/81325417

Distressed realty fund approves completion of 100,000 houses

The fund is set to deliver its first batch of 17 projects, with more than 6,000 homes, by the

end of FY22

The government’s first-ever distressed real estate fund has approved around 165 projects for

completing 100,000 homes over the next few years, its investment officer Irfan Kazi said.

Of these, 55 projects have received final approvals for completing 35,000 homes, he said in an

analyst call organized by Macquarie Research.

The fund, set up under the Special Window for Affordable and Mid Income Housing (SWAMIH),

is getting ready to deliver its first batch of 17 projects consisting of more than 6,000 homes by

the end of fiscal year 2022.

It is ready to deliver two projects in Mumbai and Rewadi by April 2021.

Unlike private equity funds, Kazi said, this one considers only Rera-registered stressed and stalled

projects with a positive net worth.

The fund, after consultation with government, also brought down the internal rate of return (IRR)

from 15% to 12% after several projects could not meet the net worth criteria.

As for challenges, Kazi said that there is significant reluctance from lenders who refuse to take

second charge of the project once the fund comes in.

“According to the regulations, SWAMIH takes first charge on assets and cash flows, which means

they get paid first once the project is completed. Lenders are worried that acceding charge would

result in change in asset classification, higher provisions, etc," he said.

During FY18-20, Heranba’s revenue grew at 13.3% CAGR to Rs. 951 crore in FY20

Kazi said private sector banks have been more proactive than public sector banks about

completing stuck projects. That said, the fund looks at projects with no lenders, where the

developer was able to generate significant sales initially but which later slowed down.

In November 2019, the Centre announced the ₹25,000-crore SWAMIH Investment Fund to help

complete more than 1,500 stalled housing projects, including those that have been declared non-

performing assets (NPAs) or had been admitted for insolvency proceedings.

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Newspaper/ Online Live Mint (Online)

Date March 04, 2021

Link https://www.livemint.com/industry/infrastructure/distressed-realty-fund-approves-completion-of-100-000-houses-11614793453543.html

Industries in Karnataka wants government not to raise property

tax for two years

“At present, gram panchayats are charging tax between 0.40% and 1% of the value of land

and building which is exorbitant. GPs consider the value as per their whims and fancies as

there are no proper guidelines," according to FKCCI.

Industries in Karnataka, among other things, are expecting the government not to raise property

tax for at least two more years and introduce a special slab and are demanding that power tariff

be slashed by Rs 2 per unit, in the upcoming state budget.

In a memorandum to chief minister BS Yediyurappa, Federation of Karnataka Chamber of

Commerce and Industry (FKCCI) noted that the power tariff in Karnataka is among the highest

in India at more than Rs 8 per unit.

“What is surprising is that rates are increased by 40 to 50 paise per unit for industries every year.

At present, power is purchased at less than Rs 3 per unit and even from thermal power, the cost

is less than Rs 3. Hence, selling power at Rs 8 per unit is unfair and the government should direct

Karnataka Electricity Regulatory Commission to review the power rate. It should be brought

down to at least Rs 6 per unit,” it stated. GThe Bangalore Chamber of Industries and Commerce

(BCIC), which is in the process of preparing its memorandum, also agrees with FKCCI.

TR Parasuraman, president, Toyota Industries Engines Pvt Ltd and the Bangalore Chamber of

Industry and Commerce, said: “Power is a key factor that decides the competitiveness of

industries, especially in manufacturing. In Karnataka, power procurement has been a challenge

compared to other states, and industries want the government to reduce tariff.”

Pointing out that uninterrupted power supply is key to running machines, he said small-scale

industries are struggling to cope with the problem. “To install a 1-Mw UPS system costs

anywhere between Rs 80 lakh and Rs 1 crore, how can small industries afford this? The

government should improve efficiency by addressing transmission and distribution losses and

ensure power is affordable,” he said.

According to FKCCI, the present rate of property tax for industries is high and it has requested

the government to not raise it for at least two more years. “At present, gram panchayats are

charging tax between 0.40% and 1% of the value of land and building which is exorbitant. GPs

consider the value as per their whims and fancies as there are no proper guidelines. The property

tax may be fixed based on per acre of land owned by industries instead of value of the land and

building,” it added.

Newspaper/ Online ET Realty (Online)

Date March 04, 2021

Link https://realty.economictimes.indiatimes.com/news/industry/industries-in-karnataka-wants-government-not-to-raise-property-tax-for-two-years/81332721

Echoing these views, Parasuraman said many industries have raised the issue and said BCIC

would request the government to even reduce property tax until the economic situation improves.

“There are two categories of property tax — commercial and residential. We request the state add

an industrial category with nominal tax which is less than the residential category,” the FKCCI

memorandum said.

As reported by TOI earlier, the government is considering introducing a separate category for

industries, but there are no immediate details on whether the rates would be cheaper than the

residential category.

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Over 20,000 properties missing from Lucknow civic body's records

“These properties are located in Vikasnagar, Indiranagar, Gomtinagar and Kursi Road,

among other locations. As these properties were not in our records, we are now conducting

an assessment of pending tax on these houses,” said LMC chief tax collection officer.

More than 20,000 properties in the city are missing from the civic body’s records, a Geographic

Information System (GIS) survey commissioned by Lucknow Municipal Corporation (LMC) has

found.

“These properties are located in Vikasnagar, Indiranagar, Gomtinagar and Kursi Road, among

other locations. As these properties were not in our records, we are now conducting an assessment

of pending tax on these houses. Notices are being issued to the owners to submit details of

properties,” said LMC chief tax collection officer Ashok Singh.

According to data provided by the civic body, LMC has collected Rs 174 crore as property tax

from April to December this financial year. More than 50,000 property owners have paid their

pending dues altogether amounting to Rs 67 crore through one-time settlement scheme.

The property tax collection target for 2020-21 is Rs 300 crore. The survey was done by a private

agency hired by LMC. The exercise had started in August and has so far covered six of eight

zones of the city.

On why these properties are not in LMC records, officials said that most of the them have been

constructed in the past two years and their owners have not registered themselves with the civic

body.

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Newspaper/ Online ET Realty (Online)

Date March 04, 2021

Link https://realty.economictimes.indiatimes.com/news/industry/over-20000-properties-missing-from-lucknow-civic-bodys-records/81323759

Nashik civic body's property tax amnesty scheme gets poor

response

According to an NMC official, as many as 4,831 defaulters have cleared their dues

amounting to Rs 2.66 crore in the third phase of the amnesty scheme.

The Nashik Municipal Corporation (NMC) has received poor response to its amnesty scheme for

property tax defaulters that was in force from February 16 to 28.

According to an NMC official, as many as 4,831 defaulters have cleared their dues amounting to

Rs 2.66 crore in the third phase of the amnesty scheme. As per the scheme, the civic body had

waived 25% of the penalty amount on tax dues which is around Rs 5.75 lakh.

While the NMC has set the property tax collection target for the current financial year at Rs 150

crore, it has managed to collect only Rs 103 crore by February 28. The civic body has to collect

another Rs 47 crore by March 31 to achieve the target.

During the same period last year, the NMC had collected a property tax amounting to Rs 135

crore. The NMC introduced amnesty scheme in three phases between November 1, 2020 and

February 28, 2021 in a bid to increase the property tax collection.

A total of Rs 33.42 crore was collected from 55,209 defaulters in all the three phases with the

maximum Rs 23.34 crore being collected in the first phase. Last year too the NMC had

implemented an amnesty scheme and had collected Rs 45 crore from the property tax defaulters.

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Newspaper/ Online ET Realty (Online)

Date March 04, 2021

Link

https://realty.economictimes.indiatimes.com/news/industry/nashik-civic-bodys-property-tax-amnesty-scheme-gets-poor-response/81325293

Nashik division registers land records in record time

In a bid to save time, the state government has digitised the RoR and brought the process

of registration of mutations online, which is called e-mutation.

All the five districts of Nashik division occupy top positions across the state in e-mutation entries

for land records, said divisional commissioner Radhakrishna Game on Wednesday.

“Nandurbar tops the chart of e-mutation entries among the districts across Maharashtra and

Nashik division tops the chart division-wise,” he said.

Game had reviewed the progress of each district, as a result of which the work was speedily done.

Any change in the Record of Rights (RoR) of a property after transaction is registered through

the mutation entry, which is carried out by the revenue officer — talathi. In a bid to save time,

the state government has digitised the RoR and brought the process of registration of mutations

online, which is called e-mutation.

“During follow-up with the district administrations, the issues faced by people were noted and

the officials concerned were asked to address them at the earliest and ensure minimal or zero

pendency in online mutation entries against the property where transaction has been carried out,”

deputy commissioner Gorakshnath Gadilkar, said.

Nandurbar district topped the chart in the state, followed by Ahmednagar, Jalgaon, Dhule and

Nashik districts.

“We conducted meetings regularly and analysed the progress report, which further helped us get

rid of anomalies and improve the performance,” Nandurbar district collector Rajendra Bharud

said.

Additional collector Mahesh Patil and deputy collector Baban Kakde took the help of National

Informatics Centre, Pune, to resolve the issues.

It may be noted that the average performance of completing mutation entries stood at 97.7%

across Nashik division. Nandurbar district has achieved registration and certification to the extent

of 97.97%, Ahmednagar 97.81%, Jalgaon 97.79%, Dhule 97.76% and Nashik 97.59%.

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Newspaper/ Online ET Realty (Online)

Date March 04, 2021

Link https://realty.economictimes.indiatimes.com/news/regulatory/nashik-division-registers-land-records-in-record-time/81325443

IHCL to open all-women managed luxury residences in Chennai

The announcement which coincides with the upcoming International Women’s Day, is in

line with the company’s ongoing efforts in creating an equitable workplace and ecosystem,

while empowering women in the hospitality industry, IHCL said in a release.

Indian Hotels Company (IHCL) on Thursday announced what it called as India’s first all women-

managed luxury residences, christened Taj Wellington Mews, to be opened in Chennai in April

this year.

The announcement which coincides with the upcoming International Women’s Day, is in line

with the company’s ongoing efforts in creating an equitable workplace and ecosystem, while

empowering women in the hospitality industry, IHCL said in a release.

Rakhee Lalvani, VP, public relations and corporate communications, IHCL, said, “Women at

IHCL have played a very vital role in the organisation with their contribution and by pushing

boundaries. The upcoming Taj Wellington Mews, Chennai managed by an all-women team is

indeed a proud moment for all of us, and testament to the Group’s commitment towards

improving the gender balance in the organisation with a vibrant workforce and by providing equal

opportunities to women across roles and positions.”

Located in the Old Mahabalipuram-IT corridor of Chennai, Taj Wellington Mews will have 112

spaciously and luxuriously appointed residences, led by a woman general manager and a team of

over 100 women across all operations and other departments. In addition to providing growth

opportunities for women employees within the company, the property will also generate

employment locally.

The organisation has taken many strides to foster gender equality, both, within and outside the

organisation. Several progressive policies like extended maternity leave, compulsory crèche

facilities, an expense reimbursement for family expansion including IVF treatments, and skilling

Newspaper/ Online Financial Express (Online)

Date March 05, 2021

Link https://www.financialexpress.com/industry/ihcl-to-open-all-women-managed-luxury-residences-in-chennai/2206396/

women in the under-served communities and regions to improve their participation in the

workforce have been implemented successfully. These efforts have resulted in developing a talent

pool and a higher ratio of women across the company.

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