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J40
The Business Standard, Mumbai, 30 Nov 2007

Maharashtra repeals land ceiling

Act, finally
BS REPORTER
Mumbai, November 29
GROWTH IMPULSES
The Maharashtra government (How key realty stocks performed today)
today repealed the three- Share Price In Rs Nov 29 %chg*
decade-old Urban Land Ceiling Lok Housing 212.15 6.10
and Regulation Act (ULCRA) at
its Assembly session in Nagpur. Orbit Corporation 749.80 5.88
The repeal, done after HDIL 796.75 5.08
months of delay and debate, Akruti City 1155.20 5.02
could free up as much as 500
hectares (1,234 acres) of land Unitech 372.45 3.56
available for development, Chief Peninsula Land 130.O5 2.89
Minister Vilasrao Deshmukh Phoenix Mills 2273.05 2,23
said today.
While the state is expected DLF 881.85 0.27
to get nearly Rs 11,000 crore Sobha Developers 860.00 0.12
from the Centre under the Jawa- Omaxe 409.70 -0.38
harlal Nehru National Urban
Renewal Mission after the re- Parsvnath Developers 346.40 -0.47
peal of the Act, today's move Indiabulls Real Estate 607.04 -0.82
is expected to boost middle- and
low-income housing in the east-
ern suburbs of the city and cool
prices in these areas over the prices in Mumbai's suburbs such "We will see at least ten times
next three to five years. as Vikhroli, Mulund, Kanjur- more mass housing projects
The ULCRA was applicable marg, Thane and others. in some of the Mumbai suburbs,
in eight cities if the state—Mum- Though industry-watchers Kalyan, Pune, Nasik, Sangli and
bai, Thane, Pune, Nasik, Nag- believe that the ULCRA repeal Kolhapur in the next three years,"
pur, Sangli, Solapur and Kol- will not see prices fall imme- said Anuj Puri, chairman of
hapur—and stipulated that an diately, the new supply will en- property consultant Jones Lang
individual cannot hold more sure that prices stabilise. LaSalle Meghraj.
than 500 square metres of va- "In areas such as Mulund Developers also feel they can
cant land in Mumbai and 1,000 where prices have gone up from save significantly on the mon-
sq metres in other cities such as Rs 2,500 to Rs 9,000, prices will ey spent on getting permission
Nagpur. The state government stabilise," said Ramashraya Ya- under ULCRA for land devel-
would take over the remain- dav, head of finance, Orbit Cor- opment.
ing land and use it for mass hous- poration, a Mumbai-based de- "Most developers spend Rs
ing. However, the state govern- veloper. 100 per square foot on getting
ment could acquire only 1,000 Prices in prime areas such permission from the ULC de-
acres of land under the Act. as Nariman Point or Bandra will partment. Now we can save that
Deshmukh said the new sup- not be impacted but the ULCRA cost and pass on the benefit to
ply of land is expected to have repeal will see a housing revo- consumers," a Mumbai-based
a sobering effect on property lution in the state. developer said.

<title>Maharashtra repeals land ceiling Act, finally</title>

<keywords>TS1-H</keywords>
<publication>The Business Standard</publication>
<pubDate>30/11/2007</pubDate>
<description>The Maharashtra government today repealed the three-decade-old Urban Land Ceiling and Regulation Act
(ULCRA) at its Assembly session in Nagpur. The repeal, done after months of delay and debate, could free up as much as
500 hectares (1,234 acres) of land available for development, Chief Minister Vilasrao Deshmukh said today. While the state
is expected to get nearly Rs 11,000 crore from the Centre under the Jawaharlal Nehru National Urban Renewal Mission after
the repeal of the Act, today's moveis expected to boost middle- and low-income housing in the eastern suburbs of the city and
cool prices in these areas over the next three to five years. The ULCRA was applicable in eight cities if the state-Mumbai,
Thane, Pune, Nasik, Nagpur, Sangli, Solapur and Kolhapur-and stipulated that an individual cannot hold more than 500
square metres of vacant land in Mumbai and 1,000sq metres in other cities such as Nagpur.</description>
<classif>J40</classif>
<entrydt>05/12/2007</entrydt>
<sd>VD</sd>