The historical town of Gwalior will get a facelift in five years as big real estate firms are planning investment.
A slew of companies have plans for Counter Magnet City (also known as Gwalior West), which falls under the National Capital Region (NCR). Gwalior has been 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. Gwalior city is in proximity with Delhi and has better rail connectivity, air facilities and potential for growth.
But red tape is choking investors’ interest. Inordinate procedural delay in land allotment is increasing cost pressure for investors. Applications and memorandum of understandings, which the real estate players had signed with the state authorities last year, are now gathering dust. Officials are turning the big firms down.
Conceptualised by the state government in 1989, the Counter Magnet City (CMC) of Gwalior was basically designed as an ultra modern city. Though the Special Area Development Authority (SADA) of Gwalior has neared the final stage of land allotment process for developers, a number of issues still block the development of an area of 30,000 hectares, where the CMC will take shape.
Of the 14,000 hectare is forest land and approximately 16,000 hectare is developable land. The real estate players have different plans for the CMC. Few want to plan it as a special economic zone for housing while others have plans for knowledge city, education hub, digital city with ultra modern amusement and entertainment facilities.
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Mumbai-based company Sunil Mantri Realty Ltd, which has acquired a land area of 375 acres in CMC, has planned to acquire another 2,000 acres here to cater to the housing needs of low- and middle-income groups. The company has signed a deal with the SADA Gwalior for investing in a mega investment project of Rs 2,000 crore in 7-8 years from now.
Unlike mega housing projects of local hidebound real estate players which target only big spenders, the company has plans to focus on housing for low- and middle-income groups. To reduce cost pressure it is in talks with a Singapore- and a Canada- based firms for technical tie-ups.
Sunil Mantri, chairman of the firm, says he will develop a shopping mall and two residential complexes of 1000 residential units each on 375 acres of land.
“We will create another 20,000 housing units on the demanded land of 2000 acres particularly for low income group and middle income group. The prices of our bungalows will start from Rs 5 lakh for low income group and will go up to Rs 20 lakh for middle income group,” he added.
The company is looking for some foreign tie-ups for engineering firms to cut cost. “Making house available at Rs 5 lakh after two three years from now is not an easy job. My prime focus is to reduce construction cost,” he said.
SADA, which has almost completed the task of developing a portion of outside infrastructure of the CMC has been alleged for delay in land allotments.
Chandigarh based Stellent Infrastructure Limited had signed a deal with SADA on 17 of July last year with a plan to make the CMC a digital city.
“When I came here in May-June last year I saw a great potential for modern education in this town. The city (Gwalior) has infrastructure for education but it is not linked to market. I have planned a digital university, which will train non-skilled graduate to have an access to the digital world like digital cinema, animation and gaming. I have plans to make an investment of Rs 3000 crore. I am also in talks with companies like Nokia for them to set up their research and development centre here but I am yet waiting for allotment of 1000 acres of land despite I have deposited Rs 2 crore as advance,” says Jagjit Singh Kochar, managing director of the company.
It is not the only case with Stellent, a number of companies are in fray to acquire land in the CMC but snail-pace government procedures, regional politics and red-tapism is making it difficult for industry to invest in for the last 20 years.
SADA has its own reasons; “we go by rules, there are number of real state players who come and demand land but we offer them only through bidding process. Big companies like Sahara and the Ansals have also been allotted land of 104 acres and 45 acres in the CMC through bid process,” Jai Singh Kushwaha chairman of SADA clarifies.
Further a chunk of 600 hectares of land holding is a big hurdle for development. The private developers want to involve farmers in development activities by offering them temporary jobs, dwellings or hefty compensation – 25% more than what government offers.
“I want to involve farmers by offering them a good amount of their land,” says Mantri, “since I have to launch the project in September this year.” As many as 10 private companies from knowledge-based industry have already acquired land but they have a long wait for development of outside infrastructure – roads, water and power.
The SADA has so far developed 86 Km of road, 21 million litter per day of water treatment plant and a power sub-station of 33 KV. But this process has taken almost 10 years meanwhile cost of raw material has gone up.
Gwalior has earned a bad name for dreaded dacoits and industries normally skip Gwalior due to law and order problem but during the last four years it has improved and peace has been regained. Its location is also now attracting investors.
“Gwalior may pay more return than any other town in Madhya Pradesh since it is in close proximity of Delhi,” says an industrialist who has plans to invest Rs 266 crore in a real-estate project. Companies like SKS Ispat and Power Limited also has plans to invest Rs 19000 crore in nearby Malanpur area.
“We are helpless for procedures which are in government hands otherwise Gwalior would be on world map in terms of modernization,” says Kochar.
Last month a government sponsored meet has attracted investors from all over India for making huge investment. A number of them signed deals with state government.
State chief minister ensured them that “Gwalior is now free from dacoit menace and law and order has been restored.” But he might not have answer for an industrialist who quipped, “Who will ensure law and order in the bureaucratic system?”