THE “SHANGHAI” OF INDIA: DHOLERA S.I.R.

“Dholera SIR to be developed on Shanghai model”

- Indian PM Mr. Narendra Modi at Yangshang

Shanghai is the commercial and financial center of mainland China. In the last two decades Shanghai has been one of the fastest developing cities in the world. Since 1992 Shanghai has recorded double-digit growth almost every year except during the global recession of 2008 and 2009. It is one of the main industrial centers of China, playing a key role in China's heavy industries. It is dubbed as the best growing city of the Asian Continent with a high development rate and that to at a speed that makes it rank among the best ranking city in the world.

The dream of the then CM of Gujarat and the incumbent PM of the nation of India is to develop the city of Dholera on the lines of the city of Shanghai; He has envisioned the site as the most suitable for the overall development and in  terms of connectivity to the ambitious freight corridor. 

At Vibrant Gujarat, there was a special pavilion on Dholera Special Investment Region (DSIR), described as a new Gujarat within Gujarat. The CM spoke proudly about it, describing it as something that would surpass Shanghai. 

There’s a slight difference between a SIR and a SEZ. For a SEZ, one needs to acquire the entire contiguous land. With a SIR, even partial land acquisition works. Dholera will be Gujarat’s first SIR, also the first under Delhi-Mumbai Industrial Corridor Project (DMIC), the joint initiative with Japan.

With Gujarat there never have been much problem with the acquisition of land and the Dholera location is such that the advantages are obvious. The SIR site is identified over 903 sq km but only 550 sq kms will be developed with an economic activity area slightly less than 400. It will be a Greenfield township, within the SIR, the first, but not the only one. Others are also planned, along the coast and around DMIC.

The proposed infrastructure connectivity, with Dholera and outside it, smart city concepts and urban planning, are nothing short of overwhelming. For example, Dholera will largely run on solar power. There is already a draft development plan, in public domain. The location has been identified; work on the central spine road has started. The relevant area has been notified as DSIR. Work is almost complete at the airport. There is a master plan and there is also a project development corporation. The environmental clearances are almost over.

By 2018 or thereabouts, Dholera should be in place. Not all States can replicate everything about Gujarat, even if one accepts rationale of greenfield and charter cities. But some elements, thinking big, faster clearances, should be imbibed. That’s common to both Pudong and Dholera.

Dholera Special Investment Region

The Land Acquisition Bill – Fact Sheet , that aims at understanding the Bill in detail and in a manner that layman can understand is an initiative by the BEST COMPANY REAL ESTATE industry consists of.  In this concluding part, the Part 3 let us have a look at some more features, the criticism and most importantly the pros and cons in a nutshell.

                                                         

Dholera SIR

What is public purpose for land acquisition: Strategic use by the armed forces, paramilitary, state police; for national security; for infrastructure projects, including activities listed under the department of economic affairs (infrastructure section), excluding private hospitals, private education institutions and private hotels; projects related to industrial corridors, mining, national investment and manufacturing zone, sports, healthcare, tourism and space programmes; housing projects for income groups specified by government, projects planned for development of village sites, residential areas for lower income groups in urban areas; projects involving agro-processing, warehousing, cold storage, marketing infrastructure, dairy, fisheries and meat processing cooperatives

Pre-condition for acquiring: For a private entity or a PPP project, state has to conduct a social impact assessment (SIA) and an environmental impact assessment (EIA), to identify the families who would be affected if land was acquired.

The private entity seeking land must then get the consent of 80 per cent of the affected families before it gets the government to acquire land for it. In the case of PPPs, the entity has to secure consent of 70 per cent of affected families. The third condition for getting possession of land acquired through state intervention is payment of compensation and fulfilling of R&R requirements.

Lease option: The Bill allows industry to take land on lease, instead of buying. But the decision rests with the state rather than the landowner

Problematic clauses: No guarantee of jobs in R&R package; compensation calculated according to circle rates much less than market prices; no protection to farmland; state government to decide if unused acquired-land should be returned to the farmer or added to its land bank. This applies even if owners return the compensation

Pros:

1.      This is an improvement upon the original act, since if the majority of the landowners do not agree to the project to be established on their land, a majority of them can unite and oppose the project by not giving their consent.

2.     There is an improvement upon the original act which did not provide any kind of compensation (monetary/non-monetary) to those affected by the land acquisition process. This bill makes a start, compensating those who will be affected by land acquisition prior to the setting up of the infrastructure or development project, monetarily and in some cases, non-monetarily.

3.    Under the Land Acquisition Act (1894), again no provision was there for rehabilitating or resettlement of those who would be losing their ownership of land or livelihoods associated with the land acquired for any project. 

Cons: 

1.      If a private project developer wants to escape this clause, he/she will take land in multiple parcels instead of one-time acquisition, which helps him or her escape the application of this Act.

2.     A large amount of land is acquired even today by public sector units like NTPC, BHEL or others. Yet, no public consent is required by public sector units in acquiring land, be it for mining, for power projects, for highway building or for any other purpose. This is still a failure of this act and the demand of those protesting against the previous act has still not been met in totality. 

3.     There is no making of the provisions as mandatory, and the project developer can say that he/she is not in a position to do so with reasons, the project developer is not mandated really to provide these provisions. 

Like in everything, this also has its fair share of Pros and Cons, the application over the years and the cases that follow will judge the failure and success ratio of it. For more such useful updates on REAL ESTATE INVESTMENT PROPERTY,  keep watching this space.

 

DHOLERA SIR: THE BEST BET FOR LAND INVESTORS

DHOLERA SIR is the newest haven for the land investors in Gujarat. The ambitious project under taken by the government of Gujarat aims at fulfilling the dreams of making the state of Gujarat the most developed one in the coming decade. The said aim is planned to be fulfilled by ensuring that the Dholera SIR is developed as a global manufacturing and trading hub and hence on a long term acts as a an engine that drives to the economic resurgence of the country supported by an infrastructure that sets new international standards.

 The government aims at creating a haven backed by the plan that focuses on development and creation of environment that protects the local industries, enhances the investment climate and improves the quality of life; All this and more with an aim to attract global investment.

The project goals aim at increasing the employment potential, industrial output and exports by manifolds in the coming half-a- decade.

The PROPERTY INVESTMENT IN DHOLERA is the best bet for the investors because the 360 degree development plan of the government for the region assures an upward valuation of the property in near future. In today’s volatile market, the conventional market instruments are less reliable in terms of rate of return, in such times comes the DHOLERA SIR project that is strongly backed by the government with full emphasis on its fast track growth and development.

The PROPERTY INVESTMENT IN DHOLERA SIR not only ensures you a simple asset but an asset that will give returns by leaps and jumps every year.  A Self governed global centre of economic activities, INVESTMENT IN DHOLERA SIR, makes sure that you stay amongst the development and your growth stays in parallel to the development of the economy. 

Aamani Group Dholera Sir

To Book Plot Or Any Inquiry About Dholera SIR, Gujarat, kindly Visit Us On http://www.aamanigroup.com Or Directly Contact Us On +91-8866333000, Email: contact@aamanigroup.com

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"DHOLERA EMERGES HOT REALTY INVESTMENT DESTINATION"

Dholera, a small town in Gujarat, has gained significant prominence in the Indian realty map and has recently emerged as a hot realty destination. The main reason for this is the government’s decision to create new smart cities and Dholera is one amongst them.

The central government, in its bid to create 100 smart cities, has decided to create a few new smart cities along with developing the existing ones. Dholera is one such example of a new smart city.

The town is well connected to other cities of the state. It lies on the junction of the Bhavnagar-Pipali Highway and Dholera Road. National Highway 8 connects the Dholera Special Investment Region (SIR) to Mumbai, Bhavnagar and Ahmedabad,

There are several reasons why Dholera has been earmarked as a smart city. Proximity to Ahmedabad as well as its good connectivity due to national highways, the Delhi Mumbai Industrial Corridor (DMIC) and distance from the Dedicated Freight Corridor (DFC) in Central Gujarat provide the town a locational advantage.

Another reason for the growth is the existing Dholera SIR spanning over an area of 920 sq. km. The region is to be developed as a global manufacturing and trading hub with world-class infrastructure. The region is featured as a centre for industries, IT companies and logistics. The special investment region serves a platform for public private partnerships and provides a framework for it. There are several civic and social amenities planned here including golf courses and parks. The region is also close to GIFT city in Ahmedabad.