Expectations of Bangaloreans from the Budget

To own a dream house has remained a dream for many. It is one of such things that the consumers are looking forwards to. Several Bangalore locals are looking for a price drop down so that they can buy their own dream houses. The local crowd of the city has come together to raise a voce with interesting solutions about owning a house.

Owning a home is indeed a wonderful feeling and also the most desired one. For any working professional it is extremely important to have a house of his own. It is also a known fact about the working professionals and individual that very less people are able to pay the down payment and about 90% of the individuals depend upon the home loan with EMI’s, that is the only possible way to afford an apartment. It is also essentially advised that the finance minister should keep these thing sin while while planning the housing budget and the budget speech.

There is also a fear prevailing that the EMI’s may also raise in future post the announcement of the new budget. Giving an industry status will not only result in the shakedown but will also lead to a much practical price tag. Thus, nominating an industry status will help in bringing out more transparency in the progress in this segment. This will not only leverage the benefits of many systematic insurance, financing and other monetary incentives. This happening will substantially result in the market force overtaking and also the prices of apartments will stabilize a bit being lowered.

Bangaloreans are also looking forward for a much ensured transparency. This could only happen as soon as the Real Estate Regulatory Bill gets the approval and followed by the hopes of the buyers being benefited.

According to a senior VP in the IT sector there are still some grey areas the need to be addressed. Many of the individuals have still been cheated and mislead about the fake advertisements and sales on the bases of super build up area. It is strictly advised that the Union Government should pass regulations that are precise to the construction in the residential segment only. A formation of a dispute redress will also help a lot in such situations bringing more accountability.

All the above provided solutions have seen to be practical enough and so they have made the realtors agree to these expectations. With the raising urbanization in the metros, the realty developers have seen a major opening for the development and planning of the mixes use of gated communities, township and apartments.

It is all dependent on the Center and the State Government to bring in a strong law and order and an intention to enforce a single window clearance for the real estate projects to be developed because it is true that the actual waiting cost is always swallowed by the consumers.

The Slow Movement in Land Acquisition Delayed the Construction of New IT Hub

The sluggish movement in land acquisition worsened by increase in land costs has obstructed the Karnataka government’s plan to build a new information technology (IT) hub in the vicinity of new international airport on the periphery of Bangalore.

This plan of building new IT hub was planned by Karnataka government under the plan of central government in May 2008 to boost the Information Technology Investment Regions (ITIR) in the country. In a Global Investor Meet in 2010, the Karnataka government said that the IT hub was visualized to bring in 2 lakh crore new investments and generate around million jobs.

A government official with a adequate knowledge about land acquisition process and who wanted to remain anonymous said that the department has delayed in acquiring land and now with the increased cost of land the total projected cost of the project could twofold.

In 2010, Karnataka government permitted the ITIR to build on more than 10,000 acres of land. In regarding the same, the government said in a meet that around 55 companies including many major IT companies like Cognizant, TCS, Infosys, Wipro, and many others came forward and has shown interest.

According to another person with good understanding in the land acquisition process said that in 2010, the cost of land was somewhere around 60 lakh to 75 lakh per acre but today the cost per acre of land has increased to 2 crore. He also added that private property owners who own land nearby the international airport demand for higher cost on lands.

The Karnataka Industrial Area Development Board (KIADB), the agency in authority for land acquisition, handed out a notice to speed up the work of acquisition for ITIR. M N Vidyashankar, Additional Chief Secretary of Government of Karnataka said in an emailed statement that the amount of land elaborated is 2,074 acres.

The accumulating pressure on Bangalore's infrastructure has been a difficulty of constant distress for companies that played important role in making the city as IT destination in India and third in IT services being exported from the country.

With continental Europe coming-up with a notion to send more IT work to India, the industry is growing and with delay in building this new IT hub, Bangalore could lose companies that want to set up centers and the opportunity may be bagged by other cities like Indore where Tata Consultancy Services is setting up its center.

The Bangalore Political Action Committee supported by business many leaders like Mohandas Pai-Chairman of Manipal Global Education and Kiran Mazumdar Shaw-Chairman of Biocon saw Karnataka's Chief Minister Siddaramaiah regarding many concerns and also forced for quicker measure on infrastructure expansion.

The Karnataka Information Communication Technology Group headed by Mohandas Pai, who is also a former board member of Infosys in Bangalore, submitted a report to the government in January that made thorough endorsements on making Karnataka as a technology powerhouse and electronics manufacturing.

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Aerospace Park in Bangalore Urged Not To Be Treated As a Real Estate Project

According to the head of UTC Aerospace Systems (UTAS), in Bangalore, the aerospace industry has the prospect to gain $20 billion in revenues over the next 10 to 15 years. This is possible provided the state government can encourage an ecosystem that pulls global companies.

Bangalore is considered to be the aerospace capital of India.

According to the VP of UTAS, the government needs to draw companies to invest here. It has been noted that the state has formed a 1,000-acre aerospace park near the Kempegowda International Airport Bengaluru. However, the project isn't pulling global tier I aerospace manufacturers. It is a known fact that Bangalore has the right talent pool. This talent pool has been cherished over the years by public sector enterprises like DRDO, ISRO and HAL. The VP stated that the government surges ahead about the project (Aerospace Park) by merely selling land parcels, then they would definitely not be giving rise to an ecosystem concept. He also stated further that in order to for the tier I companies to set up shop, an aerospace SEZ must have tier III and IV suppliers along with training and academic institutions.

He also laid stress on the fact that they were insisting the government to cultivate the park as an ecosystem. They were against the park being given to a real estate developer as they believed doing so would give rise to problems. Instead, the park must be given to an ecosystem developer.

He also stated that industry should invest in people and technology and not in infrastructure and land. Currently, the aerospace industry is focused in the US and Europe. China and India seem to be gaining increased attention what with majority of companies looking forward to expand outside of the given two markets. But given the fact that China has been facing issues over intellectual property rights, hence, aerospace companies are inclined towards India. UTAS gained a position in India with its global $19 billion purchase of Goodrich two years ago. UTAS produces lighting systems, evacuation slides, seating systems, cargo systems, integrated systems, electrical power systems and sensors for Boeing aircraft and Airbus.

He further stated that on an average around 60 percent of the global production of those products were done out of Bangalore. Moreover, UTAS employs approximately 2,000 people. It has also expanded its 700,000 sq. ft. facility which is situated in the IT hub of Whitefield. Apart from this, he added that they were looking forward to reach a stage wherein they can develop, design, support and manufacture products from India. Besides, there were many areas which needed attentions such as the design side, he stated.