DLF Ltd., Indias biggest developer by market value, is spending almost a fifth of the money it raised in an initial share sale two months ago on a single property in the nations capital, New Delhi.
The company, controlled by billionaire Kushal Pal Singh, has agreed to acquire 38 acres (15.37 hectares) of land in the capital for 16.75 billion rupees ($405 million), the company said in a statement to the Bombay Stock Exchange. DLF raised $2.22 billion in the share sale in June.
New Delhi is to host the next Commonwealth Games in 2010, which has spurred demand for property as the government prepares new stadiums for the events, accommodation for the athletes and hotels for visitors. Economic growth of more than 9 percent a year is also fueling demand for offices and malls in the worlds second-fastest growing major economy.
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Simplifying the procedure for disbursement of money under the MLA development fund scheme, Delhi Cabinet on Monday approved sanction of funds directly by the Urban Development Ministry.
"This is an important decision as earlier, the procedure for disbursement of MLA development funds was lengthy and cumbersome," Urban Development Minister AK Walia told reporters after the Cabinet meeting.
He said earlier release of funds would have to be approved first by the Planning and Finance Departments, after which the MLA's proposal would come to the Urban Development Ministry.
"Now, the Urban Development Ministry can directly release funds under the scheme," Walia said.
In another important
India's move to ease rules on foreign investment in its thriving property sector has set off a flurry of activity, with mainly U.S. investors jostling to be first through the door.
Some analysts expect an inflow of up to half a billion dollars within a year of India's decision in February to cut the minimum size for foreign-financed projects and permit overseas firms to set up funds to invest in property.
Asia's fourth largest economy, fuelled by the outsourcing of work by cost-cutting Western firms, is expected to grow by about 7 percent this year, spurring demand for offices, homes
As part of United States efforts to combat transnational crime and promote the protection of intellectual property rights (IPR) worldwide, the State Department has approved eleven projects totaling $3.9 million in Fiscal Year 2009 (FY09) anticrime funds. These funds will enable U.S. law enforcement agencies and diplomatic missions to collaborate in the delivery of criminal enforcement training and technical assistance programs on IPR protection to foreign law enforcement partners.
Training and technical assistance in the investigation and prosecution of IPR crime will be provided to foreign law enforcement partners in nations across the Pacific Rim, Latin America, Eastern Europe and
The US financial crisis, which has seen some big Wall Street giants collapsing, is bound to have a cascading effect on the Indian realty market, especially on the commercial sector that has already slowed down considerably over the past one year.
According to industry sources, there could be a softening in the values of commercial property to the tune of 10% to 15% post-US meltdown. As a result, vacancy levels in commercial space across the country is expected to touch 10% by the end of this year from 6% last June.
Marketmen see prices cooling and projects being held up
Indian realty prices may show further moderation following the credit crunch in the US, according to media reports. A crash like situation is not foreseen, though analysts expect the property market to cool further due to a lack of buying from investors. Reports said that private equity players, especially the American and Western European investors are unlikely to come in and developers have to look elsewhere for funding their working capital and capex requirements. Funds to both private and public equities of developers are expected to show a decline in the short to medium term.
It was said that FIIs
