News & Views on Indian Real Estate

Thursday, August 28, 2008

Official hurdles hamper Gwalior's Urban Plan

Big real estate firms are planning to invest in Gwalior which will give the historical town a facelift in five years. Many companies have plans for Counter Magnet City, which falls under the National Capital Region. Gwalior was designated as Counter Magnet City in the NCR plan, 1989. It is one of the five Counter Magnet Cities that are to play a role in reducing population pressure on the growth of the capital region and Delhi. But red tape is choking investors’ interest. Inordinate procedural delay in land allotment is increasing cost pressure for investors. The officials are now declining big firms' proposals. Though the Special Area Development Authority (SADA) of Gwalior is close to the final stage of land allotment process for developers, there are still a number of issues that still block the development of an area of 30, 000 hectares, where CMC will take shape. The SADA has been accused of delaying land allotments. "We go by rules, there are real estate players who want land but we offer them only through bidding. Big companies like Sahara and the Ansals have allotted land through bidding," said Mr. Jai Singh Kushwala, Chairman of the SADA.