VINNIR ENTERPRISES

Most honest Industrial Real Estate Consultants

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Industrial output up 2.5% in 2nd quarter ended Sept. 2014.

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Key takeaways from RICS Real Estate Conference 2014

The Royal Institution of Chartered Surveyors South Asia chapter had organized a Real Estate conference today in Mumbai. Central theme of the conference being Trends shaping Indian Real Estate- Predictions for the future. RICS officially launched a research report, What's trending - a report on the shifting facets of Indian Real Estate. The research has an in-depth analysis of the Indian Office market. Key takeaways related to Industrial real estate:

Smart Cities can also be developed out of existing market and key enabler would be emphasis on thorough fundamental improvement & not just ICT wrap

Indian Economy is showing signs of robust development after 2-3 quarters but that may not be true for Real estate owing in parts to contradictory government policies such as high stamp duty, Land acquisition bill, FDI in retail to name a few

REITs are going to game changers but cannot solely lift the entire sector. There hasn't been a single registration of such trusts with SEBI so far. At present REITable asset value in India is$8-10 billion 

For funding agencies Partner/promoter risk weighs more than any other factors. Majority of India focused funds haven't been able to  deliver on promised rate of returns

Make In India initiative can act as critical enabler for manufacturing industry  given the fact that India still has lowest labour rates amongst BRIC nations

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Fiscal Incentives and Support Measures for Registered R&D Units

Indian Government in order to promote innovative Research and development activities in country offers Fiscal Incentives and Support measures through Department of Scientific & Industrial Research (DSIR).

DSIR is a nodal agency to grant recognition & registration to such R&D units so as to be able to benefit from Government incentives. The proforma and details of the scheme are also available at DSIR website http://www.dsir.gov.in

Some of the Incentives are:

1. 100% write off of revenue expenditure on R&D

2. 100% write off of capital expenditure on R&D in the year the expenditure is incurred

3. Customs duty exemption to in-house R&D units established by corporate companies

4. Central excise duty exemption to in-house R&D units established by corporate companies

5. Central excise duty waiver for 3 years on goods designed and developed by a wholly owned Indian company and patented in any two countries out of: India, USA, Japan and any one country of European Union.

We have uploaded a detailed document here http://bit.ly/1gjvviE

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Industrial Area Review-Patalganga MIDC

RASAYANI-PATALGANGA MIDC

MAJOR COMPANIES

Rasayani or Patalganga MIDC is one of the most sought after Industrial zone around Mumbai in todays times. Patalganga MIDC houses Reliance Polyster, Hindustan Organics, Cipla, Castrol India, Elder Pharma, Indoco, Bombay Dyeing & Manufacturing, Aditya Birla Nuvo, Wanburry, Antony Garages etc.

CONNECTIVITY

Within 10 Kms – Rasayani Railway Station, Old Mumbai-Pune Highway,   

                          Mumbai-Pune Expressway, Mohpada, Rees, Indiabulls  

                          Township etc.

Within 20 Kms – Panvel, Hiranandani Township, Marathon Group            

                          Township, Proposed Navi Mumbai Airport, Karjat

Within 30 Kms – JNPT, Kalamboli, Kamothe, Khopoli, Pen

Within 50 Kms – Lonavala, Vashi, Thane

  WATER SUPPLY

Water supply to industrial units is by state Irrigation Department from Morbe Dam, Patalganag Dam, Chavane Dam. Water Purification plant is just 2 Kms away.

ELECTRICITY

Uninterrupted power is supplied by MSEDCL besides there two captive power plants in the area. A 23 MW plant by Aditya Birla Nuvo Ltd. & 16 MW plant by Lenzing India (proposed)

CETP FACILITY

PRIA CETP (I) Ltd. was conceived as a joint efforts between Maharashtra Industrial Development Corporation, PRIA and Maharashtra Pollution Control Board. 

Treatment Capacity: 1,50,000 m3/day

Treatment Charges: Rs. 7/m3.

For more info: http://www.priacetp.com/index.htm

INDUSTRY ASSOCIATION

Patalganga Rasayani Industries Association popularly known as PRIA is a 25plus year old association registered, Registration No. Bombay 25/83 ( Raigad ) Public Trust Registration No. F 387 ( Raigad ). Besides championing Industries concerns they also run a school , a Common Affluent Treatment Plant (CETP) and a Recreation center.

EDUCATIONAL INSTITUTES IN VICINITY

Pillai's HOC College of Engineering & Technology

Pillai HOC College of Architecture

National Institute of Securities Markets (NISM) by SEBI.(proposed)

  PROPERTY RATE (as on Nov, 2013)

Sale: Open Land : Rs. 2-3 Cr. Per Acre

                                       Constructed: Rs. 1000-1,500 per sq.ft.

Rent: Rs. 12-20 per sq.ft.

  MIDC Rate: Rs. 2660 per sq.m. (Industrial)

         Rs. 6650 per sq.m. (Commercial)

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All About MIDC Subletting

What:

For leasing of Industrial premises MIDC provides its NOC to the owners of said premises and charges subletting fees proportionate to the area being leased.

How:

Subletting permission can be obtained after submitting following documents:

1) Request from the original allottee for transfer.

2) Request from the transferee.

3) Application in the prescribed form from the transferee.

4) Project report if there is a change in the item of manufacture.

5) Time limit extension if Required.

6) No Objection Certificate from the Financial institution /Bank if the plot / shed / Gala is mortgaged with the permission of MIDC.

7) Payment of Annual Lease Rent (up-to-dated).

8) If the transferee is a close relative of the original allottee, the relationship as father, mother, brother/sister, husband/wife and children, to be specified.

9) Certified copy of deed of assignment with the proof of Registration, if the corporation has previously granted permission for transfer.

10) Xerox copy of proof of Registration of Lease.

11) In case of the death of proprietor the following documents are required. a) The copy of the death certificate b) No Objection from the legal heir/s

Sub-letting fees:

For IT/ITES: 1% x MIDC Land Rate per sq.m. x Total area being leased out (sq.m.)

For others: 3% x MIDC Land Rate per sq.m. x Total area being leased 

Note:1.  MIDC Land rates are available at following link: http://www.midcindia.org/Pages/IndustrialPage.aspx

2. Total Area= Built-up Area + Open Area

3. If the Industrial property is being leased to carry out commercial activity such as Restaurant, Showrooms etc.

4. In case the lessee will be carrying out activities different than those for which original allottee had got permission and no special incentive such as additional FSI has been used then a Permission for Change of Use is to be obtained.

Disclaimer: All the claims & facts are based on our previous experiences. MIDC Rules & Circulars keep changing for betterment of Industry so above information cannot be treated as permanent. 

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Grant of Fire Approval by MIDC

MIDC from time to time has been trying to simplify and professionalize its services for increased ease of business. Many such majors, most important being Single Window Clearance (SWC) has been well received by the Industry and simplified lot proceedings. Off late due to increased competition from neighboring states specially Gujarat, MIDC has shown more & more willingness to listen to Industrialist's grievances. This has led issuance of no. of circulars & amendments. One such amendment is a circular released on 4th April, 2013.

One of the many problems faced by entrepreneurs was difficulty in submission of Form-A for obtaining final fire approval and Form-B in a month of January & July in case of renewal of fire approval.

MIDC now has categorized units based on constructed area. So for low-hazard units built-up area less than 3000 meters & height less than 15 meters:

1] fire officer attached to local MIDC Fire Station should carry out inspection as per the check-list and ensure the availability of fire protection systems as per provisional fire approval and record the observations in writing reasons of non insisting the approved license agency and issue final fire approval or renewal, as the case may be.

2] At the time of renewal, Form-B should not be insisted.

Please refer the complete circular here:

http://www.scribd.com/doc/180216404/Simplifications-of-Process-for-grant-of-fire-approval-pdf

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Industrial Property Rates in TTC Industrial Area

After witnessing problems faced by buyers and sellers to know actual prices for resale industrial properties, we decided to take the mantle in our hand and publish information based on data available with us as well as data that's there in public domain. Please note that these prices should not be treated as benchmark and are for reference purpose only. Prices may vary depending on location, construction done on plot and most importantly owner's expectations. Nowadays owning to recession, owners in TTC area have been quoting exorbitant rates and any proposal at par with actual market rates is being rejected as such owners don't want to let buyer's consider that there is need to liquidate their properties. Whereas Buyers have been expecting for major correction to happen so are asking for drastically low rates. 

A] Nerual, Turbhe, Khairane, Pawane, Rabale, Ghansoli: These regions are primarily engineering, chemical zones.

1} Sale : Open plots should be available from INR 30,000 per sq.m. to 36,000 per sq.m. unless the location is extremely close to Thane-Belapur highway. Price range for constructed properties is very wide from INR 40,000 per sq.m. to 50,000 per sq.m. (considering basis R.C.C. structure). Price depend upon construction area, construction quality, age, documentation, permissible activity & location.

2} Lease : Rentals can be divided into IT/ITES and Engineering  activties.  IT/ITES  Furnished 60-65 & unfurnished 30-40 Rs./Sq.ft. Engg./R&D Furnished 35-45 & unfurnished 25-35 Rs./sq.ft.

3} Warehouse : Sale -> INR 30,000-40,000 per sq.m.  Rent -> INR 22-28 per sq.ft.

B] Mahape: Its majorly an IT/ITES and electrical/electronics zone. Most of the units situated in Millennium Business Park (MBP) are being quoted at comparatively higher rates. Sale and Lease prices for IT/IES in MBP are   INR 60,000-70,000 per sq.m. and INR 70-80 per sq.f.t (Furnished). MBP offers lot of options in 3000-10000 sq.ft. area range with most of them being furnished properties. Properties in Electronics zone are demanding rates similar to engineering zones in TTC area.

We would request one & all to kindly contribute or give your feedback.

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STPI Ready Reconer 2007

We have uploaded Maharashtra Governments STPI Ready Reckoner for common public reference. Software Technology Parks of India Ready Reckoner published on 4th July 2007 contains information about STPI Scheme, IT Policy Benefits, Procedure to become STP Member, Requirements for STPI Registration etc.,

You can download the document from http://www.scribd.com/doc/179178393/STPI-Ready-Reckoner-2007

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MIDC Organization Structure

MIDC is nodal agency of Maharashtra Government, whole-of-government service providing essential information on planning, starting and growing businesses in the state. MIDC's activities can be broadly classified into 3 categories:

a] Acquisition and disposal of land

b] Provision of Infrastructure facilities

c] Providing of Services

Key Departments of MIDC are:

1. Land Department

The land for industrial areas is acquired by the Government of Maharashtra under Chapter VI of the MID Act. 1961 and handed over to the Corporation for further disposal. The Corporation plans the area and disposes the land in suitable plots by leasing out for 95 years. For this purpose the Corporation recovers the premium lease money at different rates for different industrial areas.

Services offered: 

Extension of Time Limit for obtaining BCC

Execution of Predetermined Lease

Execution of Final Lease

Permission for Mortgage

Grant of Permission for Leasing

Grant of Permission for Subletting

Grant of Permission for Sub-Leasing

Permission for Amalgamation/Waive of Marginal Distance

Permission of Sub-Division of Plot

Permission for Change in Activity

Permission for Change in Land use

Surrender of Plot & Refund

Change in Name of Company

Transfer of Plot

Property Card

2. Fire Department

MIDC provides full-fledged fire stations in all its major industrial areasIt is a part of basic infrastructure provided to that area and as per Section 21 of the "Maharashtra Fire Prevention and Life Safety Measures Act 2006" it is mandatory requirement on all Municipal Corporation, Municipal Councils & Special Planning Authorities.

Services offered:

Provisional Fire Approval

Final Fire Approval

Renewal of Final NOC

3. Engineering- Water Department

MIDC has, over the years, created a vast, robust and reliable water supply system. The system caters to the water needs of the industries within MIDC industrial areas and also those outside, in the adjoining areas.

Services offered:

Water Supply Connection

No Dues Certificate

4. Engineering - Power Department

Infrastructure like power is in place in MIDC Estates. MIDC is not into power distribution. MIDC will issue "No Objection Certificate" (NOC) required to be submitted to Power Distribution Company.  Services offered under Power Department

Grant of No Objection Certificate for power connection

5. Special Planning Authority Department

Services offered:

First/Revised Development and to Erect a Building

Building Completion Certificate (BCC) / Occupancy Certificate

Drainage Plan Approval

Drainage Connection Approval

Completion of Drainage Plan

6. Technical Advisory Department

Services offered:

Locational Clearance - NOC     

LOI for Software/IT/ITES Unit

LOI for HW Unit

Registration of Software/IT/ITES Unit

Registration of IT - HW Unit

For more reference visit 

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Circular regarding MIDC Land Allotment Wait-list

Plot Allotment wait-list will now be categorized according to proposed investment into Micro, Small, Medium, Large and Mega Industries. Earlier all applications were being treated on the same lines so many of the smaller projects used to loose the opportunity. 

Land Allotment Committees will be every month according to schedule as mentioned in the document.

http://www.scribd.com/doc/178886155/Land-Allotment-wait-list-circular-2013

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Upcoming Industrial plots near Mumbai

MIDC has plans to launch auctions for Additional Ambernath MIDC Phase 3 shortly. These plots are on leveled, flat land having commendable infrastructure. Phase 3 is situated next to phase 2, along pipeline road which connects Ambernath MIDC to Shil Phata. So far this region is closest to Mumbai, for which MIDC will start plot allotments.

Ambernath MIDC has Chemical as well as Engineering zone. There is 7.6 MLD CETP opposite fire brigade office. Refer http://www.cetpambernath.in/

Rates: Existing MIDC rate for Phase 2 is Rs. 2395 per sq.m. and resale rate is anywhere between Rs. 8000-15000 per sq.m. MIDC is expected to launch these plots at Rs. 4000 per sq.m. Many brokers have been proposing to offer these plots at Rs. 6500-8000 per sq.m. with usual 50-50% payment scheme.

Infrastructure: 

Water 

The MIDC has made its own arrangements to supply filtered and disinfected water to the industrial units. Water that is lifted from rivers Ulhas and Barvi via Jack well is brought to the water treatment plant in the area. a) Source: Barvi Dam (Jambhul water works) b) Capacity: 8.0 mld. Present capacity of this scheme is 3.5 million liters of water per day.

 Roads 

MIDC has provided asphalt roads with widths varying from 3.75 to 16 m; these are mainly two lane roads with a central verge of bougainvillea and raised footpaths on either side of the roads.

 Connectivity 

Fax, telex, email and Internet facilities are available. A telephone exchange is located in the area.

 Residential Facilities 

Additional Ambernath Industrial Area is located near the Ambernath Industrial Area and two km from Ambernath city, hence residential facilities are also at hand.

 Common Effluent Disposal Facility 

MIDC has constructed a common effluent treatment plant of capacity 7.5 mld in order to treat effluent from the Knitwear and Leather zones. This conforms to standards prescribed by Maharashtra Pollution Control Board (MPCB). The treated effluent will be discharged in the Waldhuni Nallah.

 Fire Station 

A fire station was deemed necessary keeping in mind the planned development of the Additional Ambernath Industrial Area. MIDC has constructed a fire station in an area of 3,600 sq m and which has the following units. i ) Engine room with a fire station office and officers quarters. ii) Fireman quarters. iii) Smoke room tower. iv) Service pit and suction tank.

 Electricity 

The MSEB, with its capacity of 220 mva, supplies power to all industrial units in this area.

 Streetlights 

MIDC has provided street lighting facility in the area; street lights have been erected 30 m apart on the central verge. A total of 650 lights illuminates the industrial area at night.

 Common Facility Centre 

A common facility centre has been developed by MIDC near the helipad with pleasant elevation. The center is a three-storied high edifice. In the CFC building, six 75 sq m showrooms on the ground floor and 35 galas measuring 71.50 sq m are available in the first and second floor offices. Provision for a bank, with an area of 680 sq m, has been made on the ground and the first floor. Twelve hotel rooms on the third floor each measuring 86 m2 have been provided.

 Parks 

This industrial area has sport stadiums, swimming pools and theaters, branches of Rotary and Lions clubs, and also good hotels and guest houses, which offer modern accommodation facilities. There are tourist places like Barvi dam, Birla temple, Durgadi fort, etc and pilgrimage centers like Shrimalang Gadh Shiv Mandir (Ambernath).

 Bank 

There are full fledged branches of nationalized and co-operative banks in Ambernath city.

 Education 

Skilled manpower and labor are easily available. There are a number of secondary and higher secondary, technical engineering, management, and computer training institutes in Dombivli itself, which make the city self sufficient in the field of education.