Thursday, 23 January 2020

Credai suggestions for the Union Budget 2020-21

Satish Magar, President, CREDAI (National)

Over the last few years in India, the real estate sector has to cope with institutional changes including RERA, GST and IBC. The fall in the growth of GDP from trend rate of 8% to around 5% has also adversely affected the demand side in real estate. This is because homes are a part of discretional expenditure by households. Equally, decline in the rate of GDP entails downward adjustment in demand for shops and offices.

The growth seized of the need to take direct measures for the revival of real estate sector as a part of measures to boost GDP growth. The change in IBC, setting up of stressed funds are amongst the steps in the recent past intended to spur the investments in the real estate sector. The budget 20-21, therefore, would provide the government an occasion to boost the real estate demand as also continue to encourage private sector investment particularly in affordable housing, in line with the objective of ‘Housing for All by 2022’.

A. Income Tax

1. Deduction of interest on Home Loans
An individual is allowed to avail of deduction of interest on loan for acquisition of a house. However, the deduction is allowed only on loans sanctioned between 1.4.2016 and 31.3.2017 and the amount not exceeding Rs. 50,000. Following suggestions are made to boost demand for housing.
i. The timeline for the loan may be extended to March 31, 2022 in line with Housing for All by 2022.
ii. In case of individuals, 100% interest on home loan be allowed as deduction for first home.
iii. 100% interest on home loans to be allowed as deduction for 2nd and 3rd home provided that except self-occupied home, others are rented for a period of nine months during the year. The measure is being suggested to boost rental housing.

2. Section 43 CA
Section 43 CA of Income Tax Act is a barrier to natural price correction and the stalled project has a cascading effect on home buyers, banks and other stakeholders and needs to be removed or amended to exempt primary sales or at least allow sale at 30% below circle rate.
3. Section 80 IBA
i. The following portion of Section 80IBA should be deleted-
“Where the approval in respect of a housing project is obtained more than once, the project shall be deemed to have been approved on the date on which the building plan of such housing was first approved by the Competent Authority.’
There should be an exception to this clause to accommodate cases where the construction work has not started after sanction of plan and the developer opts for re-sanction to take up affordable housing.
ii. The benefit under Section 80IBA should be extended to all affordable housing projects as long as the size of the residential units satisfy the limits on carpet area of the units at thirty square meters, where the project is located within the cities of Chennai, Delhi, Kolkata or Mumbai or sixty square meters, where the project is located in any other place.

i. The benefit of ITC be restored to real estate GST by charging GST at 12 per cent with allowance for land cost at 33% on par with current rate of works contract services for government projects.
ii. Taking into account the output GST being paid on such rentals on commercial leases, the restriction from input tax credit eligibility under section 17(5) (c) and 17(5)(d) of the CGST Act, be removed.

C. Definition of Affordable Housing
 Following definition may be made universally applicable across all Government agencies-
“Affordable housing comprises units with a carpet area as defined under RERA that do not exceed sixty square metres in the metros and 90 square meters elsewhere.

D. One Time Restructuring Scheme for Real Estate Projects

Liquidity shortage continues to cause distress in real estate. Hence, a one-time restructuring scheme with moratorium on principal and interest of 2 years is immediately needed.
E. Easing Flow of Funds for Housing
Housing Loan up to Rs. 1 crore may be counted towards Priority Sector and interest rates to be below 7% effectively.

GIIS introduces Smart Sports Technology SPEDAS


PUNE: Global Indian International School, headquartered in Singapore, today launched the first-of-its-kind sports performance enhancing technology – SPEDAS in India at its SMART Campus in Balewadi, Pune.

Football legend and Indian captain Sunil Chhetri launched the Sports Performance Enhancing Data Analytics System (SPEDAS) – a concept which was first introduced in its SMART Campus in Singapore in 2018. The International School aims at introducing SPEDAS across all its Smart Campuses in India – starting with Balewadi and Hadapsar campuses in Pune.

Present on the occasion to launch the SPEDAS technology in India, Captain of Indian Football team, Sunil Chhetri said, “Football is a rapidly growing sport in India. In line with the Khelo India programme, this is the perfect time for Global Indian International School (GIIS Pune Hadapsar and Balewadi campuses) to bring in this cutting-edge football data analytics across its schools in India. This will go on to create and nurture the next generation football players from schools. It is the first school in India and South East Asia to introduce such a high-end technology, which I believe would help in fulfilling the aspirations of thousands of football players who can immensely benefit from this SMART football technology. I would urge all students who aspire to take up the sport professionally, to make the most of this facility.”

Commenting on the launch of SPEDAS, 

Arjun Temurnikar, Associate Director (Technology), Global Schools Foundation said: “SPEDAS is part of our School of the Future initiative which allows students to develop 21st century skills. It is a technology which brings football data analytics to the coaches and students to help enhance player performances and better team coordination.”

“SPEDAS uses advanced sensors, which are placed on the field, on the players and in the football itself, which maps the movement of each component in the field in real time. The player’s moves and techniques are recorded statistically and can later be analysed by the coach to help improve their performance in subsequent games.”

“This advanced system tracks each player with very high accuracy and we can see the player move on field in relation to the ball and the other teams in real time. Providing crucial data to improve on-field game has been brought into schools for the first time by GIIS in the age group of 3-18 year old students. Our aim is to offer the best developmental tool and opportunities to transform development of football in India and build future national and international players.”

Such a technique will not only help improve the game for the players, it will give them a solid platform to understand the game better and excel at the sport right from school level. This first-of-its-kind initiative is also used by GIIS in other sports like basketball in its SMART Campus at Singapore.

Not only do the SMART Campuses leverage proprietary data analytics software to improve learning and teaching across the school, they will also provide Sports scholarship to deserving students.  Using its global network of schools to its advantage, GIIS encourages the use of its smart sports technology through its student exchange programmes for students across the globe and grant scholarships in sports to deserving students.

Speaking on the occasion, GIIS Deputy Chief Operating Officer Rajeev Katyal said: “GIIS believes in giving each deserving student a chance at excelling in the field of their choice. We are offering over 200 GIIS Global Sports Scholarship, to give deserving soccer players to be part of GIIS and benefit from the SPEDAS SMART Football program.”

Piaggio launches its new entire range to BSVI


PUNE: Piaggio Vehicles Pvt Ltd (PVPL), a 100 % subsidiary of the Italian Piaggio Group and India’s leading manufacturer of small commercial vehicles today showcased its entire range of BSVI products.

On this occasion, the company launched its Power Max Diesel range with an upgraded 599 CC engine and the Smart AF range with hi-tech 3 Valve 230 CC engine. The company also launched the new upgraded Cargo range with higher power, increased load carrying capability and bigger driver cabin.

Positioned as The Performance range, both diesel and alternate fuel range was on display. The diesel range boasts of a completely new power pack with a 599 CC engine pumping out 7kw power and 23.5 Nm torque. The engine along with a 5-speed gear box and new aluminium clutch considerably increasing the load carrying capability and enables faster trip times.

The upgraded Cargo range comes with a larger cabin providing better head room and space for the driver thereby increasing his productivity. The passenger range comes with new safety doors for commuters. The alternate fuel range has been fitted with one of the most refined drive-train available in the industry with a 230 CC 3-valve hi-tech engine. The customers can experience a super smooth, low-noise ride with improved driveability in urban settings.

With this showcase, Piaggio has one of the largest product range in the last mile mobility in India for both cargo and passenger carrying applications. The cargo range is available in deck lengths of 5, 5.5 and 6 feet and in Delivery van and High body options. The passenger range is available in small body, mid-body, wide body and extra-wide body configurations. The range is also fuel agnostic with products available in diesel, CNG, LPG and Petrol.

The company has also announced the prices of the BS VI products with the diesel range having an Ex-showroom price increase of Rs. 45,000 and the alternate fuel range Rs. 15,000 over equivalent BS IV products. Commenting on the development, PVPL MD & CEO Diego Graffi said, “We are delighted to be the first 3-Wheeler manufacturer in India to be completely BSVI ready with our entire range of products. We had started our preparations for BSVI norms well ahead of time and therefore today we are well placed for the transition from BSIV to BSVI.

Speaking on the occasion, Saju Nair, EVP and Head of CV Business, PVPL said, “The new BS VI Performance Range reinforces the company’s leadership in innovation and technology for providing superior solutions for last mile transportation.  The Power Max diesel range will enable our customers to earn more through better load carrying capability and faster turnaround time and at the same time our 42 months warranty and improved maintenance intervals significantly reduces the cost for the customer.

Similarly, the Smart AF range is a benchmark for superior pickup, NVH and urban driveability. Combined with assurance of low maintenance through 36 months warranty and the unique Super Saver free maintenance scheme, this is truly a smart choice for our customers.

Also, speaking on the occasion, Malind Kapur, SVP – Marketing, Product Marketing & Channel Management, CV Business, PVPL said “The early adoption of BSVI range will help us maintain channel stocks much better and ensure they have a smooth transition before the 01st April 2020 Deadline. In Diesel Cargo segment we have always been market leaders and I am sure that our newly launched Power-max 599 cc BSVI cargo vehicle will further strengthen our position.”

Wednesday, 22 January 2020

Bank of Maharashtra posts profit in Q3


PUNE: The Board of Directors of Bank of Maharashtra has approved the Bank’s results for the quarter and nine months ended December 31, 2019, at its meeting held at Head Office, Pune on Monday. The accounts were subject to “Limited Review” by the statutory auditors of the Bank.

Profitability (Q3 Fy 20 Vs Q3 Fy 19)

 Operating profit of the Bank grew to Rs. 842 crore showing a robust growth of 95%.
 Net profit of Bank increased to Rs. 135 crore as against loss of Rs. 3764 crores on Y-o-Y
basis supported by increase in net interest income, robust recovery and control on
 Interest income increased to Rs. 3016 crore showing a growth of 14%.
 Net Interest Income (NII) increased to Rs 1186 crore showing an increase of 36%.
 Non-interest income grew to Rs 442 crore showing an increase of 8%.
 Cost of Deposit decreased to 4.8 1% as against 5.01%.
 NIM of the Bank rose to 2.86% as compared to 2.41%.
 Cost to income ratio improved to 48 % in Q3 FY’ 20 from 66 % in Q3 FY 19.

Nine – Months Profitability (9m Fy 20 Vs 9m Fy 19)

 Operating profit of the Bank increased to Rs.2252 crore showing a healthy growth of 33%.
 Net profit of the Bank increased to Rs. 331 crore as against loss of Rs.4856 crore.
 Interest income increased to Rs. 8689 crore showing a growth of 7.61%.
 Net Interest Income (NII) grew to Rs 3256 crore showing growth of 19.12%.
 Non-interest income increased to Rs 1257 crore showing growth of 8.21%.
 Net Interest Margin increased to 2.68 % as against 2.50%.


 Total business of the Bank grew to Rs. 23 5867 crore as on 31.12.2019 showing a growth of 4.55%.
 Total deposits increased to Rs. 141 986 crore registering a growth of 4.4%.
 CASA deposits stood at Rs. 68 246 crore as on 31.12.2019, showing an increase of 7.04%.
 Share of CASA to total deposits increased to 48.07% as on 31.12.2019 as compared to
46.88% as on 31.12.2018.
 Gross Advances stood at Rs. 9 3882 crore as on 31.12.2019.
 Retail, Agriculture and MSME business increased to 57% of total advances as on
31.12.2019 from 54%.


 Gross NPA stood at Rs. 15 746 crore ( 16. 77%) as on 31.12.2019, as against Rs.15509 crore
(17.31%) as on 31.12.2018. (16.86% as on 30.09.2019)
 Net NPA stood at Rs. 4 507 crore ( 5.4 6%) as on 31.12.2019, as against Rs.4647 crore (5.91%)
as on 31.12.2018. (5.48% as on 30.09.2019)
 Bank has maintained healthy Provision Coverage Ratio of 82.63% as on 31 st Dec, 2019.


 Capital Adequacy Ratio increased to 11.21% as on 31 st Dec 2019 against 11.049% as on 31 st
Dec 2018.(11.83 % as on 30.09.2019)
 Tier I Ratio stands at 9.44% as on 31 st Dec 2019. (10.01% as on 30.09.2019)