Observer Dawn-Eng-Sep-2018 by OBSERVER DAWN

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ŚĂŝƌŵĂŶ

&ŽƌƚƵŶĞ 'ƌŽƵƉ ŽĨ ,ŽƚĞůƐ

&ŽƌƚƵŶĞ WĂƌŬ ,ŽƚĞů & ŽƌƚƵŶĞ WĂƌŬ ,ŽƚĞů͕ ͕ /W͕ ƵďĂŝ ʹ ϰ ^ƚĂƌ W͕ ͕ ƵďĂŝ ʹ ϰ ^ƚ /W Ăƌ ƵďĂŝ 'ƌĂŶĚ ,ŽƚĞů Ǉ &ŽƌƚƵŶĞ ƵďĂŝ 'ƌ ĂŶĚ ,ŽƚĞů Ǉ &ŽƌƚƵŶĞ͕ ů YƵƐĂŝƐ͕ ƵďĂ ͕ ů YƵƐĂŝƐ͕ ƵďĂŝ ʹ ϰ ^ƚĂƌ Ăŝ ʹ ϰ ^ƚ Ăƌ &ŽƌƚƵŶĞ <ĂƌĂŵĂ ,ŽƚĞů & ŽƌƚƵŶĞ <ĂƌĂŵĂ ,ŽƚĞůů͕ ů < ͕ ů <ĂƌĂŵĂ͕ ƵďĂŝ ʹ ϯ ^ƚĂƌ ĂƌĂŵĂ͕ ƵďĂŝ ĂŵĂ͕ ƵďĂŝ ʹ ϯ ^ƚ ϯ ^ƚĂƌ Ă &ŽƌƚƵŶĞ WůĂǌĂ ,ŽƚĞů & ŽƌƚƵŶĞ WůĂǌĂ ,ŽƚĞů͕ ͕ ů YƵƐĂŝƐ͕ ƵďĂŝ ʹ ϯ ^ƚĂƌ ů YƵƐĂŝƐ͕ ƵďĂŝ ʹ ϯ ^ƚ Ăƌ &ŽƌƚƵŶĞ ,ŽƚĞů ĞŝƌĂ & ŽƌƚƵŶĞ ,ŽƚĞů ĞŝƌĂ͕ ͕ ĞŝƌĂ ƵďĂŝ ʹ ϯ ^ƚĂƌ ĞŝƌĂ ƵďĂŝ ʹ ϯ ^ƚĂƌ ͲŵĂŝů͗ ĐŽŶƚĂĐƚΛ ͲŵĂŝů͗ ĐŽŶƚĂĐƚΛĨŽƌƚƵŶĞŚŽƚĞůƐ͘ĂĞ ΛĨŽƌƚƵŶĞŚŽƚĞůƐ͘ĂĞ ǁǁǁ͘ĨŽƌƚƵŶĞŚŽƚĞůƐ͘ĂĞ ǁǁǁ͘ĨŽƌƚƵŶĞŚŽƚĞůƐ͘ĂĞ

KƵƌ ^ŝŐŶĂƚƵƌĞ &Θ ƌĂŶĚƐ KƵƌ ^ŝŐŶĂ Ő ƚƵƌƌĞ &Θ ƌĂŶĚƐ

&ŽƌƚƵŶĞ ůĂƐƐŝĐ ,ŽƚĞů ƉĂƌƚŵĞŶƚƐ & ŽƌƚƵŶĞ ůĂƐƐŝĐ ,ŽƚĞů ƉĂƌƚŵĞŶƚƐ͕ ů YƵƐĂŝƐ͕ ͕ ů YƵƐĂŝƐ͕ ƵďĂŝ ʹ ^ƚĂŶĚĂƌĚ ,ŽƚĞů ƉĂƌƚŵĞŶƚƐ ƵďĂŝ ʹ ^ƚ ĂŶĚĂƌĚ ,ŽƚĞů Ɖ ƉĂƌƚŵĞŶƚƐ &ŽƌƚƵŶĞ ZŽǇĂů ,ŽƚĞů & ŽƌƚƵŶĞ ZŽǇĂů ,ŽƚĞů͕ & ͕ &ƵũĂŝƌĂŚ ʹ ϰ ^ƚĂƌ &ƵũĂŝƌĂŚ ʹ ϰ ^ƚĂƌ

editor

Delhi Office

HARIOM TYAGI editorial Director MOHD. TARIq NAWAB

consulting editors RAKESH PuROHIT SYED ATIF RIzWAN

Joint editor DINESH GAuR

MANOJ M. CHATuRVEDI

correspondents legal editor MAKRAND PRATAP SINGH AMIT AGARWAL RAJKuMAR CHAuDHARY Senior Photographer RITESH SHARMA

Sales & Marketing ROBIN KHAN, VP DESH DEEPAK DuBEY VIKASH MISHRA

hR /Account ANJANI SHuKLA cReATiVeS

Art Director AJAY KuMAR SHARMA

Senior Graphic Designer ROBIN GuPTA

Marketing Associates

S-507A, School Block, Shakarpur New Delhi-110092, Contact No.: 011-42334982

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lucKnOw Office Mr. Desh Deepak Dubey 30, Vikas Bagh Colony, Sector-7, Vikas Nagar, Lucknow Contact-+91-9455555939

circulation

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MinTOO bOOK AGencY, MuMbAi 146, D.N. Road Fort, Mahindra Chamber,Mumbai-1 Phone: 09699774812

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OBSERVER DAWN September 2018

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Briefing 24

Cover Story India- UAE Business Relations Marked by deepening personal ties between Indian Prime Minister, Narendra Modi and Crown Prince of Abu Dhabi, H.H Sheikh Mohammed Bin Zayed Al Nahyan, the historic India- UAE relationship has entered a phase of high growth.

Investment Dubai : Hot Investment Destination Riding high on its world-class infrastructure, strategic location, great connectivity, modern and regulated financial eco-system, Dubai has evolved as a top most destination for entrepreneurs and investors.

News maker Pearl of UAE An eminent businessman and collector, H>H Suhail Al Zarooni has madeinternational headlines as a torch bearer of human rights and global peace.

Milestone Four Years of Modi Government Having completed four years in office, reform-oriented Modi government in its fifth and final year of its term, has put reformed and transformed economy on a path of sustained growth.

Wealth Report India Pips France & UK in Demi-Billionaires India has emerged as a hub of demi-billionaires and is set to beat France and United Kingdom by 2022.

42 4

OBSERVER DAWN September 2018

32 India- UAE Business Summit & Awards 2018 It is time again to celebrate success and excellence in business with a glittering awards ceremony - India - UAE Business Summit & Awards 2018, to be held at Atlantis, The Palm, Dubai on September 23, 2018.

Own your Happy Trails

apartment and live smart

2/3 Bedroom Apartments with Study

Happy Trails is delighted to announce the launch of new towers with Smart Homes features - enabling your home with ʸȫɡȂƉࡹžȂőɱɱ ɱƜžʗɡǠʀˁࡊ žȫȔǂȫɡʀࡊ ˜ƜˀǠŵǠȂǠʀˁ őȚƉ ƜȚƜɡǅˁ Ɯǂ˛žǠƜȚžˁࡑ

Apartment prices starting

INR 45 Lakhs (All inclusive*)

Central Clubhouse

Energy Management

Security Management

Central Green Landscaping

Voice Solutions

Home Automation#

High Speed Internet Services

Video Door Bell

-²¡íùãĈ-ùx²¡ x¡ aĈ íĨx¡d

12 towers amidst expansive green spaces Q 2/3 bedroom apartments with study ranging from 1165-1625 sq. ft. (108.23-150.97 sq. mtr.) Q Most of the apartments face either the club or external greens Q ߥ ɖɡƜȔǠʗȔ ʀȫʸƜɡɱ ʸǠʀǗ ȫȚȂˁ ߠ őɖőɡʀȔƜȚʀɱ ɖƜɡ ˜ȫȫɡ Q Modular kitchen with every apartment Q Club facilities include squash, multi-purpose hall, indoor gym, swimming pool, etc. Q No vehicular movement allowed on the podium level Q Located near an upcoming metro station

RERA Registration No.: UPRERAPRJ15574 The images shown are for demonstrative purpose only and are subject to change.

LOAN PARTNERS

For enquiry call +91 8151 960 000 | www.homekraft.in | sales@homekraft.in Shridhara Infratech Private Limited Site Address: Plot No-GH2A, Sector 10, Greater Noida (W) -ȫɡɖȫɡőʀƜ ²ǂ˛žƜࡉ ùí ùȫʸƜɡࡊ ÜȂȫʀ ¡ȫࡑ ߟߤࡊ íƜžʀȫɡ ߟߡߣࡊ ¡ȫǠƉőࡑ ÜǗࡑࡉ ߞߟߠߞࡹߥߟߟߟߣߞߞ ΎWƌŝĐŝŶŐ ĞǆĐůƵĚĞƐ '^d͕ ^ƚĂŵƉ ĚƵƚǇ͕ ZĞŐŝƐƚƌĂƟŽŶ ŚĂƌŐĞƐ͕ ŵŝƐĐĞůůĂŶĞŽƵƐ ĐŚĂƌŐĞƐ͕ W> ĂŶĚ ŝƐ ƐƵďũĞĐƚ ƚŽ ĐŚĂŶŐĞ ǁŝƚŚŽƵƚ ƉƌŝŽƌ ŶŽƟĐĞ͘ # ŚĂƌŐĞƐ ĂƉƉůŝĐĂďůĞ ĞǆƚƌĂ dŚĞ ŝŶĨŽƌŵĂƟŽŶ ĂǀĂŝůĂďůĞ ŝŶ ƚŚŝƐ ĂĚǀĞƌƟƐĞŵĞŶƚ ŝƐ ƐƵďũĞĐƚ ƚŽ ĐŚĂŶŐĞ ǁŝƚŚŽƵƚ ĂŶǇ ŶŽƟĐĞ͘ tŚŝůĞ ĞǀĞƌǇ ĞīŽƌƚ ŚĂƐ ďĞĞŶ ŵĂĚĞ ƚŽ ƉƌŽǀŝĚĞ ƚŚĞ ĚĞƚĂŝůƐ͕ ƉĂƌƟĐƵůĂƌƐ͕ ĐŽŶƚĞŶƚƐ ĂŶĚ ŽƚŚĞƌ ŐƌĂƉŚŝĐƐ ĂƉƉĞĂƌĂŶĐĞƐ ŝŶ ƚŚŝƐ ĂĚǀĞƌƟƐĞŵĞŶƚ ĂƐ ƵƉĚĂƚĞĚ͕ ĐŽƌƌĞĐƚ͕ ĐŽŵƉůĞƚĞ ĂŶĚ ĂĐĐƵƌĂƚĞ͕ ŶĞǀĞƌƚŚĞůĞƐƐ͕ ŝŶĂĚǀĞƌƚĞŶƚ ĞƌƌŽƌƐ ŵĂǇ ŽĐĐƵƌ ŝŶ ƚŚĞ ŝŶĨŽƌŵĂƟŽŶ͘ &ƵƌƚŚĞƌ͕ ŽƵƌ ǁĞďƐŝƚĞ;ƐͿ ĂŶĚ ŽƚŚĞƌ ĂĚǀĞƌƟƐŝŶŐ ĂŶĚ ƉƵďůŝĐŝƚǇ ŵĂƚĞƌŝĂů ŝŶĐůƵĚĞ ĂƌƟƐƚ͛Ɛ ŝŵƉƌĞƐƐŝŽŶƐ ŝŶĚŝĐĂƟŶŐ ƚŚĞ ĂŶƟĐŝƉĂƚĞĚ ŝŵƉƌĞƐƐŝŽŶƐ ŽĨ ĂƉƉĞĂƌĂŶĐĞ ŽĨ ĐŽŵƉůĞƚĞĚ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ĚŽ ŶŽƚ ĐŽŶƐƟƚƵƚĞ ĂŶ ŽīĞƌ͕ ĂŶ ŝŶǀŝƚĂƟŽŶ ƚŽ ŽīĞƌ ĂŶĚͬŽƌ ĐŽŵŵŝƚŵĞŶƚ ŽĨ ĂŶǇ ŶĂƚƵƌĞ ďĞƚǁĞĞŶ ƵƐ ĂŶĚ ƚŚĞ ƌĞĐŝƉŝĞŶƚ͘ dŚĞ ĞǀĞůŽƉĞƌ ĂŶĚ ŝƚƐ ĚŝƌĞĐƚŽƌƐ͕ ĂƵƚŚŽƌŝǌĞĚ ĂŐĞŶƚƐ ĂŶĚ ĞŵƉůŽǇĞĞƐ ŵĂŬĞƐ ŶŽ ǁĂƌƌĂŶƟĞƐ Žƌ ƌĞƉƌĞƐĞŶƚĂƟŽŶƐ ǁŚĂƚƐŽĞǀĞƌ ƌĞŐĂƌĚŝŶŐ ƚŚĞ ƋƵĂůŝƚǇ͕ ĐŽŶƚĞŶƚƐ͕ ĐŽŵƉůĞƚĞŶĞƐƐ͕ ƐƵŝƚĂďŝůŝƚǇ͕ ĂĚĞƋƵĂĐǇ͕ ƐĞƋƵĞŶĐĞ͕ ĂĐĐƵƌĂĐǇ Žƌ ƟŵĞůŝŶĞƐ ŽĨ ƚŚĞ ŝŶĨŽƌŵĂƟŽŶ ĂŶĚ ĚĂƚĂ͕ ŝŶĐůƵĚŝŶŐ Ăůů ŝŵƉůŝĞĚ ǁĂƌƌĂŶƟĞƐ ĂŶĚ ĐŽŶĚŝƟŽŶƐ ŽĨ ŵĞƌĐŚĂŶƚĂďŝůŝƚǇ͕ ĮƚŶĞƐƐ ĨŽƌ ĂŶǇ ƉĂƌƟĐƵůĂƌ ƉƵƌƉŽƐĞ͕ ƟƚůĞ ĂŶĚ ŶŽŶͲŝŶĨƌŝŶŐĞŵĞŶƚ͘ /Ŷ ŶŽ ĞǀĞŶƚ dŚĞ ĞǀĞůŽƉĞƌ ĂŶĚ ŝƚƐ ĚŝƌĞĐƚŽƌƐ͕ ĂƵƚŚŽƌŝǌĞĚ ĂŐĞŶƚƐ ĂŶĚ ĞŵƉůŽǇĞĞƐ ƐŚĂůů ďĞ ůŝĂďůĞ ĨŽƌ ĂŶǇ ĚĂŵĂŐĞ ŝŶĐůƵĚŝŶŐ͕ ǁŝƚŚŽƵƚ ůŝŵŝƚĂƟŽŶ ƚŽ͕ ĚŝƌĞĐƚ͕ ŝŶĐŝĚĞŶƚĂů Žƌ ĐŽŶƐĞƋƵĞŶƟĂů ĚĂŵĂŐĞƐ Žƌ ůŽƐƐ ĂƌŝƐŝŶŐ ŽƵƚ ŽĨ ƚŚŝƐ ĂĚǀĞƌƟƐĞŵĞŶƚ Žƌ ǁŝƚŚ ƌĞƐƉĞĐƚ ƚŽ ĂŶǇ ŵĂƚĞƌŝĂůƐ ĐŽŶƚĂŝŶĞĚ ŝŶ ƚŚŝƐ ĂĚǀĞƌƟƐĞŵĞŶƚ͘ dŚĞ ĚĞǀĞůŽƉĞƌ ŵĂŬĞƐ ŶŽ ǁĂƌƌĂŶƚǇ͕ ĞǆƉƌĞƐƐ Žƌ ŝŵƉůŝĞĚ͕ ŶŽƌ ĂƐƐƵŵĞƐ ĂŶǇ ůĞŐĂů ůŝĂďŝůŝƚǇ Žƌ ƌĞƐƉŽŶƐŝďŝůŝƚǇ ĨŽƌ ƚŚĞ ĂĐĐƵƌĂĐǇ͕ ĐŽƌƌĞĐƚŶĞƐƐ͕ ĐŽŵƉůĞƚĞŶĞƐƐ Žƌ ƵƐĞ ŽĨ ĂŶǇ ŝŶĨŽƌŵĂƟŽŶ ĐŽŶƚĂŝŶĞĚ ŚĞƌĞŝŶ͕ ŶŽƌ ƌĞƉƌĞƐĞŶƚƐ ƚŚĂƚ ŝƚƐ ƵƐĞ ǁŽƵůĚ ŶŽƚ ŝŶĨƌŝŶŐĞ ŽŶ ƉƌŝǀĂƚĞůǇ ŽǁŶĞĚ ƌŝŐŚƚƐ͘ dŚĞ ƵǇĞƌͬ ƵƐƚŽŵĞƌƐ ǁŝůů ďĞ ƌĞĐĞŝǀŝŶŐ ƚŚĞ ƉƌŽƉĞƌƚǇ ͞ĂƐ ŝƐ͕͟ ƚŚĂƚ ŝƐ͕ ǁŝƚŚ Ăůů ĚĞĨĞĐƚƐ ǁŚŝĐŚ ŵĂǇ ĞǆŝƐƚ͕ ŝĨ ĂŶǇ͕ ĞǆĐĞƉƚ ĂƐ ŽƚŚĞƌǁŝƐĞ ƉƌŽǀŝĚĞĚ ŝŶ ƚŚĞ ƌĞĂů ĞƐƚĂƚĞ WƵƌĐŚĂƐĞ ŽŶƚƌĂĐƚ͘ dŚĞ ƵǇĞƌͬ ƵƐƚŽŵĞƌƐ ĂƌĞ ƌĞƋƵŝƌĞĚ ƚŽ ŵĂŬĞ ŝŶĚĞƉĞŶĚĞŶƚ ǀĞƌŝĮĐĂƟŽŶ ƚŽ ŚŝƐͬŚĞƌ ƐĂƟƐĨĂĐƟŽŶ͘ dŚŝƐ ŝŶĨŽƌŵĂƟŽŶ ŝƐ ŝŶƚĞŶĚĞĚ ƚŽ ƉƌŽǀŝĚĞ Ă ŐĞŶĞƌĂů ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ ƚŚĞ ƐƵďũĞĐƚ ŵĂƩĞƌ ĂŶĚ ƚŽ ŚĞůƉ ǇŽƵ ĂƐƐĞƐƐ ǁŚĞƚŚĞƌ ǇŽƵ ŶĞĞĚ ŵŽƌĞ ĚĞƚĂŝůĞĚ ŝŶĨŽƌŵĂƟŽŶ͘ ĞǀĞůŽƉĞƌ ŵĂǇ ĐŚĂŶŐĞ͕ ĚĞůĞƚĞ͕ ĂĚĚ ƚŽ͕ Žƌ ŽƚŚĞƌǁŝƐĞ ĂŵĞŶĚ ŝŶĨŽƌŵĂƟŽŶ ĐŽŶƚĂŝŶĞĚ ŚĞƌĞ ĂƐ ƉĞƌ ƉƌĞǀĂŝůŝŶŐ ŐŽǀĞƌŶŵĞŶƚ ŶŽƌŵƐ ǁŝƚŚŽƵƚ ŶŽƟĐĞ͘ ηϭ ƐƋ͘ ŵƚƌ͘ с ϭϬ͘ϳϲϰ ƐƋ͘ Ō͕͘ ϭ ƐƋ͘ ŵƚƌ͘ с ϭ͘ϭϵϱϵϵ ƐƋ͘ ǇĂƌĚƐ͘͟ ƵŝůĚŝŶŐ WůĂŶ ƐĂŶĐƟŽŶĞĚ ǀŝĚĞ ůĞƩĞƌ ŶŽ͘ W>'ͬ; WͿ ϯϱϳϰͬϮϬϮϯ ĚĂƚĞĚ ϮϯͬϬϯͬϮϬϭϴ ĨƌŽŵ 'E/ ͘ KƵƌ ŽĸĐŝĂů ǁĞďƐŝƚĞ ŝƐ ǁǁǁ͘ŚŽŵĞŬƌĂŌ͘ŝŶ ĂŶĚ ĞŵĂŝů ĂĚĚƌĞƐƐ ŝƐ ƐĂůĞƐΛŚŽŵĞŬƌĂŌ͘ŝŶ͘ tĞ ĚŽ ŶŽƚ ŚŽůĚ ĂŶǇ ƌĞƐƉŽŶƐŝďŝůŝƚǇ ĨŽƌ ĂŶǇ ŝŶĨŽƌŵĂƟŽŶ ƉƌŽǀŝĚĞĚ ŽŶ ĂŶǇ ŽƚŚĞƌ ǁĞďƐŝƚĞͬĞŵĂŝů ĐŽŵŵƵŶŝĐĂƟŽŶ ĂƉĂƌƚ ĨƌŽŵ ƚŚĞ ŽĸĐŝĂů ŽŶĞ͘

Briefing 44

REFORMS gSt to Usher in long term Business gains Amidst teething troubles and glitches in the implementation framework, the landmark reform of Goods & Services Tax (gSt), ushering in a unified tax regime, has though helped in speeding up real estate recovery ...

mArKEtiNg Build & Sell model In the current real estate landscape marked by large number of stalled underconstruction housing projects , with lakhs of home buyers risking their investments, the business model of 'Build & Sell' has emerged in the new regulatory environment.

BrANdiNg Why Branding is important For Your Business Branding is the way in which your customer perceives you when they hear or think of your company name, service or product.

tEChNologY CroWdFUNdiNg to BloCK ChAiN Technology is disrupting different industries across the world, and real estate cannot be far behind.

TRENDS goWorK GoWork is Worldâ&#x20AC;&#x2122;s largest co-collaborative co-working space sprawled over 8 lakh square feet with a capacity of 12,000 seats across its two offices in Gurugram.

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OBSERVER DAWN September 2018

EvENt SEmiNAr to EdUCAtE & EmPoWEr ProPErtY CoNSUmErS

Haryana Real Estate Regulatory Authority (HRERA) Gurugram and an NGO Manav Awaaj (Peoples Voice) jointly organised an a seminar and panel discussion in Gurugram on August 27, 2018 to educate and empower property consumers.

Letter From the Editor

Celebrating Excellence

t is yet again time to celebrate excellence in business with India- UAE Business Summit & Awards 2018 - a unique platform where most significant and visionary businessmen, entrepreneurs, decision makers, politicians and professionals come together to share the limelight. To mark India- UAE Business Summit & Awards 2018, we bring to you engaging and enriching content in the form of this Special Issue. Our lead story on India- UAE business relations, traces the history of this unique relationship that has gained unprecedented momentum and grown substantially in recent years.Marked by deepening personal ties between Indian Prime Minister, Narendra Modi and Crown Prince of Abu Dhabi, H.H Sheikh Mohammed Bin Zayed Al Nahyan, India- UAE relationship is set to witness a more vibrant growth phase in the coming times. We have another major story focusing on Dubai as the hottest investment destination. We report how riding high on a world- class infrastructure, strategic geographical location, liberal foreign exchange regime and a regulated modern financial ecosystem, Dubai has evolved into one of the top most destinations for entrepreneurs an investors. In our News maker section, we feature H.H Suhail Mohammed Al Zarooni, popularly known as the 'Pearl of UAE'. An eminent Emirati businessman who has hogged global limelight as a celebrity committed to the upliftment of children, women and socially disadvantaged sections of society and as a torchbearer of world peace. In our Wealth Report, we give you an update on global demi-billionaires, revealing how India will beat France and United Kingdom in terms of number of demi- billionaires (having net assets of $500 million or more) by 2022. No less significant is our coverage of a milestone of reform- oriented Modi government putting Indian business and economy on a sustained growth path, as it marches ahead in its fifth and last year of its term. There is a lot more interesting content in the form of business and international news, trends and events etal. Happy reading !

To mark IndiaUAE Business Summit & Awards 2018, we bring to you engaging and enriching content in the form of this Special Issue.

Connect with Hariom Tyagi @harityagi2003

Hariom Tyagi

Editor, Observer Dawn

@harityagi2003 @harityagi2003 @harityagi2003 September 2018 OBSERVER DAWN

INTERNATIONAL

BIMSTEC agreements on

trade cooperation by next year

he seven-nation regional bloc Bay of Bengal Initiative for Multi-Sectoral (BIMSTEC) will finalise agreements on goods trade and customs cooperation, as part of the proposed FTA, by 2019. “India recently provided new inputs on product specific rules (PSR), paving the way to resumption of negotiations on the trade in goods, which were stalled in 2015. Also, considerable progress has been made to finalise the text of the customs cooperation agreement. I am optimistic that we will be able to sign both the agreements within 2019,” M Shahidul Islam, Secretary- General of BIMSTEC, said .. BIMSTEC includes Nepal, Bhutan, India, Bangladesh, Myanmar, Thailand and Sri Lanka. Myanmar and Thailand are members of ASEAN and the rest are part of SAARC. BIMSTEC is also negotiating agreements on dispute settlement mechanism, trade in services, investment and trade facilitation. While the negotiation for dispute settlement mechanism has reached an advanced stage, discussions on the others are in early stages. Though BIMSTEC was formed in 1997, it was dormant till 2016 when the leaders started promoting it. The initiative got a fresh boost at the Kathmandu summit in August with Prime Minister Modi making a strong pitch for the block.India is a major engine behind the resurrection of BIMSTEC, especially on connectivity issues including

OBSERVER DAWN September 2018

physical, digital and people-to-people, and is investing heavily in the area. An MoU was recently signed to link Kathmandu with Raxaul by rail. Close to nine cross border rail projects, a number of road and inland river water connectivity projects are on with

Bangladesh and construction of Trilateral Highway and Kaladan road project have been initiated in Myanmar.The BIMSTEC leaders have reiterated their resolve to ensure seamless multimodal transport and simplified transit facilities and directed the authoriti es to speed up efforts to conclude the coastal shipping and motor vehicles agreements “as early as possible”, Islam said adding the second round of discussions on both the agreements will begin soon.

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Qatar offers expats permanent residency

n a landmark development, Qatar has become the first GCC state to allow some of its long-time expatriates to become permanent residents. Amir H H Sheikh Tamim bin Hamad Al Thani issued a new law that will permit a maximum of 100 expats every year the right to obtain “Permanent Residency Permit” (PRP) of Qatar. According to the new law, the chosen band of expatriates will be entitled to several privileges that were once only reserved for Qatari citizens.The holders of PRP card would be allowed to have Free State education, healthcare and be given the right to own property and can do business, without a Qatari partner, known as a kafeel. Like other nations in the region, Qatar relies massively on foreign labor. The landmark

law also allows most foreign labors to leave the country or change jobs without an exit visa. But, for obtaining the proposed permanent resident card, expatriates who were born in Qatar must have lived in there for a minimum of at least 10 years, while the non-Qatari residents who were born abroad should have lived there 20 years, the Emir’s decree says.Also, the eligible applicant needs to have a sufficient knowledge of the Arabic language, proof of sufficient income and a clean criminal record with no previous convictions.Spouses of Qatari citizens, children of Qatari women married to nonQatari husband and non Qatari wife of a Qatari man will automatically become permanent residents.

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September 2018 OBSERVER DAWN

INTERNATIONAL

Amazon hits $1tn in market value

mazon has briefly become the second US-listed firm to have a market value of more than $1 trillion (ÂŁ779bn). Shares in the e-commerce giant rose nearly 2% to a high of $2,050.50 in morning trade before slipping back. Apple reached the same milestone in early August. Founded in 1994, Amazon is now the world's largest online retailer. Its chief executive, Jeff Bezos, is the world's richest man, with a net worth of more than $160bn. How Jeff Bezos took Amazon to the top Neil Saunders, managing director of GlobalData Retail, said: "To reach a market capitalisation of over $1tn is impressive. To do it in a little over 24 years is extraordinary. "That Amazon has achieved this demonstrates its dramatic advancement in both the retail and technology sectors, as well as the influence it now wields over large parts of the consumer landscape." Like a pesky younger sibling, Amazon might be second to the symbolic trillion-dollar milestone - but when it comes to its rivalry with Apple, it's been quicker to hit nearly every hundred-billion dollar valuation hurdle. For instance, it took Amazon just 16 days, compared to Apple's 622 days, to go from a market value of $600bn to $700bn, according to the Wall Street Journal. This acceleration makes sense in a way, because Amazon spent most of its time as a public company reporting losses or negligible profits. Founder Jeff Bezos consistently said he would rather reinvest sales revenue into the company to give it a better, more profitable future. It's a strategy that seems to have paid off: Amazon reported $2.5bn in profit last quarter, making it one of Wall Street's most profitable companies. And the future seems bright. Even more so than Apple, Amazon is in the business of how we'll live

OBSERVER DAWN September 2018

in the future. Although nearly half of every dollar spent online by an American goes to Amazon, ecommerce still makes up just 9% of total retail sales here. And Amazon has also become the market leader in cloud computing, with its Web Services business line consistently beating expectations. All of this suggests that when it comes to Amazon's

growing market value, the best word to describe it might in fact be the name Mr Bezos reportedly initially had planned for the company: relentless. Amazon reported nearly $53bn in sales in the three months ended in June, with record quarterly profit of $2.5bn. The firm is expected to account for roughly half of all online shopping sales in the US this year - and nearly 5% of the country's overall retail market, according to research firm eMarketer. It employs more than 575,000 people, a force nearly the size of Luxembourg's population. It provides logistics, storage, loans and a selling platform to hundreds of thousands of third-party merchants. Its profitable cloud computing division, which hosts huge swathes of the corporate world on its data servers, is the industry's global leader. nnn

British PM rules out

compromise on Brexit plan

ritish Prime Minister Theresa May has said she would not allow compromises to her Brexit strategy that went against the national interest, seeking to allay fears among some in her Conservative Party that she will cave in to Brussels’ demands in negotiations. With under two months before Britain and the European Union (EU) want to agree a deal to end over 40 years of union, May is struggling to sell what she calls her business-friendly Brexit to her own party and across a divided country. After an initially sceptical reaction, the EU is

formulating its response to what has become known as the Chequers plan, which is designed to protect cross-border trade. Boxed in between a those at home who would balk at further concession and an EU negotiator demanding more concession, difficult talks lie ahead, followed by a vote in parliament on whatever deal is reached.“I will not be pushed into accepting compromises on the Chequers proposals that are not in our national interest,” , according to May. Both the Britain and the EU have stepped up contingency planning in case the two sides are unable to reach a deal in time, setting financial markets on edge and weakening sterling at the prospect of economic disruption. May ruled out second referendum on Britain’s EU membership, reiterating a long-held position in an attempt to counter increasingly vocal campaigning for another public vote on the terms of the divorce. May’s plan would keep Britain in a free-trade zone with the EU for manufactured and agricultural goods. But some Brexit supporters have said that would mean parts of the British economy would still be subject to rules set in Brussels.

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September 2018 OBSERVER DAWN

INTERNATIONAL

China's Belt and Road project runs into debt jam

hina’s massive and expanding “Belt and Road” trade infrastructure project is running into speed bumps as some countries begin to grumble about being buried under Chinese debt. The initiative also known as the “new Silk Road” envisions the construction of railways, roads and ports across the globe, with Beijing providing billions of dollars in loans to many countries. China's trade with Belt and Road countries exceed $ 5 trillion, with outward direct investment surpassing $60 billion. Five years on, Xi has found himself defending his treasured idea as concerns grow that China is setting up debt traps in countries which may lack the means to pay back the Asian giant. And some are thinking if it is worth the cost.Already Malaysia’s Prime Minister Mahathir Mohamad has announced his country would shelve three China-backed projects, including a $20 billion railway.The party of Pakistan’s new prime minister, Imran Khan, has vowed more transparency amid fears about the country’s ability to repay Chinese loans related to the multi-billion-dollar China-Pakistan Economic Corridor.Meanwhile the exiled leader of the opposition in the Maldives, Mohamed Nasheed, has said China’s actions in the Indian Ocean archipelago amounted to a “land grab” and “colonialism,” with 80 per-

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cent of its debt held by Beijing. Sri Lanka has already paid a heavy price for being highly in-

debted to China.Last year, the island nation had to grant a 99-year lease on a strategic port to Beijing over its inability to repay loans for the $1.4billion project. nnn

Suzuki exits China

fter US, Suzuki is exiting Chinese market as well; transferring stake to partner The retreat from China after a quarter of a century follows an exit from the US car market in 2012 after three decades there.Suzuki Motor Corp, the Japanese manufacturer known for its mini cars, has exited China as consumers in the world’s biggest auto market shifted purchases to larger sedans and sport utility vehicles. Suzuki has agreed to transfer its 50 per cent stake in Changan Suzuki — its last remaining Chi-

nese venture — to Chongqing Changan Automobile Co. as soon as legal proceedings are completed, according to a statement . Changan will continue to make and sell Suzuki-branded cars in China under a license. The market share of economic small cars in China plunged to 6.7 per cent in 2017 from 35 per cent in 2003, with Suzuki falling along with the trend, said Cui Dongshu, secretary general of the China Passenger Car Association. A rapid increase in Chinese families’ purchasing power in the past decade has shifted demand toward larger and more spacious vehicles.

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September 2018 OBSERVER DAWN

INTERNATIONAL

Qatar Airways puts India plans on hold

atar Airways has put on hold its plans for setting up airline in India. According to Chief of Qatar Airways, Akbar Al Baker, the rule of allowing foreign entity to own up to 100 per cent stake in Indian carriers is not very clear. Qatar Airways will wait for "another 12 months" to decide on setting up an airline in India as it seeks clarity on "ambiguous" foreign ownership norms, Ali Baker said The comments come less than three months after Al Baker said that the Gulf carrier would soon be

OBSERVER DAWN September 2018

moving an application to launch a full-service airline in India for domestic operations with 100 planes. But as per Ali Baker, the rule of allowing foreign entity to own up to 100 per cent stake in Indian carriers is not very clear.The airline, according to Ali Baker, is open to partnerships, provided it gets a local partner who is credible and financially sound, irrespective of majority or minority stake. Exuding his confidence in Indian market, Ali Baker said,"India is such an important market. India is a sleeping economic giant. There is potential here that is not available in many other countries."

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US to cancel $300m military aid to Pak

he US military has announced that it is cancelling $300m (ÂŁ230m) in aid to Pakistan over what it calls Islamabad's failure to take action against militant groups.President Donald Trump has previously accused Pakistan of deceiving the US while receiving billions of dollars.Pentagon spokesman Lt Col KonĂŠ Faulkner said the US military would aim to spend the money on other "urgent priorities". The move, which needs to be approved by the US Congress, is part of a broader suspension announced in January.The US state department has criticised Pakistan, a key ally, for failing to deal with terrorist networks operating on its soil, including the Haqqani network and the Afghan Taliban."We

continue to press Pakistan to indiscriminately target all terrorist groups," Col Faulkner said in a statement , adding that the $300m aid - which had earlier been suspended - should be used elsewhere due to "a lack of Pakistani decisive actions" in tackling the issue. The announcement came just days before US Secretary of State Mike Pompeo was due to visit Pakistan to meet the country's new prime minister, Imran Khan. In January, the US government announced it was cutting almost all security aid to the country.The US and others have long complained that Pakistan provides a safe haven to militant networks, allowing them to carry out cross-border attacks in Afghanistan - something that Islamabad denies. nnn

September 2018 OBSERVER DAWN

INTERNATIONAL

India, China to update

defence MoU

ndia and China are in talks to update a 12-year-old defence agreement and establish a hotline between the two defence ministries as part of confidence building measures, according to a top PLA official . During Chinese Defence Minister General Wei Fenghe's recent meeting with Prime Minister Narendra Modi and his Indian counterpart Nirmala Sitharaman in New Delhi , the two sides had in-depth discussions on how to further implement the important consensus reached between Modi and Chinese President Xi Jinping, Chinese Defence Ministry spokesman Colonel Wu Qian said. Modi and Xi, during their firstever informal summit in Wuhan in April, reached a consensus on managing various aspects of India-China relations including the two militaries, especially in the backdrop of the Doklam standoff. The hotline between the two militaries -- Indian Army and People's Liberation Army (PLA) -was regarded as a major Confidence Building Measure as it would enable both the headquarters to intensify communication to avert tensions between border patrols and to avoid Vstandoffs like a 73- day Doklam stand off near Bhutan over Bejing's construction of a road in the area. The standoff ended after both sides

OBSERVER DAWN September 2018

agreed to disengage. In 2006, India and China signed an MoU on defence exchanges and cooperation, focussing on maintaining frequent exchanges between the

leaders and high-level functionaries of the defence ministries, annual defence dialogue and holding joint military exchanges among others. The current discussions between the two sides include a direct phone line between the two defence ministries and regional military units. So far both the militaries have not been able to operationalise efforts to establish a hotline facility between their military headquarters due to procedural issues. nnn

No guarantee of US waiver to

India on Russia arms deal

There is no guarantee for a special waiver for India from the punitive US sanctions over its weapons purchase from Russia as Washington has concerns over the nearly five billion deal, a top Pentagon official said. The Countering America's Adversaries Through Sanctions Act (CAATSA) waiver is intended at preventing US sanctions on countries like India. New Delhi is planning to buy five S-400 Triumf missile air defence systems from Russia for around US $4.5 billion.US Defence Secretary Jim Mattis has publicly been a strong proponent of granting India waivers from sanctions. "We understand historical India-Russia relationship. We want to have a conversation with India not on legacy, but on future. On CAATSA, Mattis did plea for an exception for India, but I can't guarantee a waiver will be used for future purchases," Randall Schriver, the Pentagon's assistant secretary of defence for Asian and Pacific Security Affairs, said. "There was an "impression that we are going to completely protect the India relationship, insulate India from any fallout from this legislation no matter what they do. I would say that is a bit misleading. We would still have very significant concerns if India pursued major new platforms and systems (from Russia)," he said. Germany to give 9990 crore loan for Ganga clean-up Germany to help India clean Ganga, says ‘took 30 years, 45 bn euros to clean Rhine’Germany has announced to provide a soft loan of euro 120 million to India to help clean the holy river Ganga. Jasper Wieck, the Deputy Head of the German mission in India, said that Berlin will utilise its experience to help New Delhi in strengthening sewage treatment infrastructure in an effort to clean the Ganga. We took 30 years and 45 billion euros to clean Rhine river.” . He argued that river Ganga is twice the length of river Rhine and therefore, it is a tough task for the government to clean it in a very short span of time. Wieck said that under the project, Berlin will focus on exten-

sion and replacement of sewerage system including complete house connection, construction of sewage treatment plants of around 15 million litres per day. Also, the initiative includes construction of 13 sewage pumping stations."The purpose of the project is to reduce the inflow of untreated waste water in River Ganga and, thus, to improve the water quality of the river,” Wieck said. In the year 2014, Modi government had launched ambitious “Namami Gange” project to clean the river. The government had allocated Rs 20,000 crore to be spent in the next five years. Till date, a total of 221 projects have been sanctioned for various activities at a cost of Rs 22,238 crore out of which only 58 projects

have been completed. In 2015, Germany had pledged India an interest subsidised loan of up to euro 120 million through German Development Bank KfW to finance the construction of sewerage network and treatment plants. Earlier in May, Union Minister for Water Resources, River Development and Ganga Rejuvenation , Nitin Gadkari had set March 2019 as the deadline to clean the river Ganga and ensure 70 to 80 improvement in the quality of the water.

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September 2018 OBSERVER DAWN

INTERNATIONAL

US consumer spending, inflation rise;

jobless claims hit lowest level

.S. consumer spending increased solidly in July, suggesting strong economic growth early in the third quarter, while a measure of underlying inflation hit the Federal Reserve’s 2 percent target for the third time this year. Upper St. Clair, Pennsylvania, U.S., February 15, 2018. Picture taken February 15, 2018. REUTERS/Maranie Staab Other showed an increase in new applications for unemployment benefits last week, but the underlying trend continued to point to a robust labor market. There are, however, concerns the Trump administration’s protectionist trade policy, which has led to an escalating trade war with China and tit-for-tat import tariffs with other trading partners, including the European Union, Canada and Mexico, could hurt the economy. “The trade war thunder on the horizon hasn’t moved closer to shore,” said Chris Rupkey, chief economist at MUFG in New York. “Consumers are doing their part to keep the economy’s engines running strong in the second half of the year.” The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.4 percent last month after advancing by the same margin in June. Households spent more at restaurants and on accommodation last month. There was also an increase in spending on prescription medication. Last month’s rise in consumer spending was in line with economists’ expectations. Prices continued their gradual upward trend in July. The personal consumption expenditures (PCE) price index excluding the volatile food and energy components rose 0.2 percent after edging up 0.1 percent in June. That lifted the year-on-year increase in the socalled core PCE price index to 2.0 percent from 1.9 percent in June. The core PCE index is the Fed’s preferred inflation measure. It hit the U.S. central bank’s 2 percent inflation target in March for the first time since April 2012. Minutes of the Fed’s July 31-Aug. 1 meeting published

OBSERVER DAWN September 2018

last week showed some policymakers worried that “a prolonged period in which the economy operated beyond potential could give rise to inflationary pressures.” Given strong domestic demand and a tightening labor

market, inflation could rise further, likely keeping the Fed on track to increase interest rates for a third time this year in September. Import duties, which have boosted prices for raw materials such as steel, lumber and aluminum, are seen fanning inflation. Related Coverage •Atlanta Fed lowers U.S. third-quarter GDP view to 4.1 percent “Inflation pressures should intensify in coming quarters,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “Therefore, the Fed is going to continue to raise rates once per quarter through the remainder of this year and into next.” While rising inflation is eating into consumer spending, the pace of growth in consumption is enough to continue driving the economy. Inflation-adjusted consumer spending gained 0.2 percent in July, the smallest rise in five months, after increasing 0.3 percent in June. nnn

Germany to give 9990 crore

loan for Ganga clean-up

ermany to help India clean Ganga, says ‘took 30 years, 45 bn euros to clean Rhine’Germany has announced to provide a soft loan of euro 120 million to India to help clean the holy river Ganga. Jasper Wieck, the Deputy Head of the German mission in India, said that cleaning Ganga is a tough task. Germany to help India clean Ganga. says ‘took 30 years, 45 bn euros to clean Rhine Germany has announced to provide a soft loan of euro 120 million to India to help clean the holy river Ganga. Jasper Wieck, the Deputy Head of the German mission in India, said that cleaning Ganga is a tough task. He said that Berlin will utilise its experience to help New Delhi in strengthening sewage treatment infrastructure in an effort to clean the Ganga. The official argued that river Ganga is twice the length of river Rhine and therefore, it is a tough task for the government to clean it in a very short span of time. “Length of Ganga is double its length, so this can give you an essence about problems India is facing in cleaning Ganga,” he added. Wieck said that under the project, Berlin will focus on extension and replacement of sewerage system including complete house connection, construction of sewage treatment plants of around 15 million litres per day. Also, the initiative includes construction of 13 sewage pumping stations. “The purpose of the project is to reduce the inflow of untreated waste water in River Ganga and, thus, to improve the water quality of the river,” Wieck said. Last week, an RTI reply had stated that the level of pollution in Ganga in Varanasi has increased compared to what was the level of pollution recorded before 2014 – the year Modi government had launched ambitious “Namami Gange” project to clean the river. According to the RTI reply, the government had allocated Rs 20,000 crore to be spent in

the next five years. Till date, it said that a total of 221 projects have been sanctioned for various activities at a cost of Rs 22,238 crore out of which only 58 projects have been completed. In 2015, Germany had pledged India an interest subsidised loan of up to euro 120 million through German Development Bank KfW to finance the construction of sewerage network and treatment plants. Wieck said that German development agency GIZ has prepared a ‘Ganga Box’ on the line of ‘Danube Book’. It will have all mythological, social-cultural and economic importance information related to the river. Also, it will contain suggestions

to avoid polluting the river and distributed to people to make them aware of the importance of the river. Earlier in May, Union Minister for Water Resources, River Development and Ganga Rejuvenation Nitin Gadkari had set March 2019 as the deadline to clean the river Ganga and ensure 70 to 80 improvement in the quality of the water. nnn

September 2018 OBSERVER DAWN

India faces INTERNATIONAL

diplomats shortage

ith roughly 940 foreign service officers, India has one of the most understaffed diplomatic corps of any major country — just slightly higher than New Zealand’s 885 officers, or Singapore’s 850. It’s vastly outnumbered by the Japanese and Australian services of around 6,000 people, the estimated 7,500 diplomats of rival China and the U.S. State Department’s

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service of nearly 14,000. In 2016, the ministry said it was still 140 officers short of its sanctioned strength of 912 diplomats. It also said it had failed to conduct mandated reviews of its foreign service every two years. The last review had taken place 12 years earlier in 2004. Meanwhile, Foreign Ministry has stepped up recruitment to around 35 new officers annually and is making use of defence and economic experts from other ministries on deputation. nnn

India, Nepal ink MoU for rail line

ndia and Nepal have signed an agreement to build a broad gauge railway line between Kathmandu and Biharâ&#x20AC;&#x2122;s border town of Raxaul. The agreement was signed after talks between Prime Minister Narendra Modi and his Nepalese counterpart KP Oli at the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation summit, or BIMSTEC, in Kathmandu. BIMSTEC is a regional group comprising India, Bangladesh, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal. Konkan Railway Corporation Limited will under-

take a preliminary engineering and traffic survey for the proposed railway line. The 130-km railway line will be only the second rail track in the hill nation, according to Reuters. Its construction and funding will be finalised after the Konkan Railway submits its findings.The Raxaul-Kathmandu rail line is expected to expand connectivity by enhancing people-to-people linkages between the two countries and promoting economic growth and development. The pact comes two years after China agreed to go ahead with a strategic railway link with Nepal, passing through Tibet.

September 2018 OBSERVER DAWN

INTERNATIONAL

French firm : No financial deal with

Reliance Entertainment

afale issue: French production company denies having financial dealings with Reliance Entertainment French production house Rogue International has denied having any agreement with Reliance Entermainment. The production house was found by French producers Julie Guyet and Nadia Turincew rench President Francois Hollande Rogue International's co-founder Julie Gayet is also known for being partner of former French president Francois Hollande, who was in power when India and France were negotiating the aircraft deal. French production house Rogue International has denied having any agreement with Reliance EntermainmentThe production house was found by French producers Julie Guyet and Nadia TurincewJulie Guyet is known to be partner of ex-French President Francois Hollande Paris-based film production house Rogue International, which is at the centre of Rafale controversy for producing a film with Reliance entertainment has said that it never entered into any financial agreement with Anil Ambani's Reliance Entertainment. The film production house was founded by French producers Julie Gayet and Nadia Turincew. Congress president Rahul Gandhi cited media report to sharpen party's consistent attack on the IndoFrench defence deal. "Globalised corruption. This #Rafale aircraft really does fly far and fast! It's also going to drop some big bunker buster bombs in the next couple of weeks. Modi Ji please tell Anil, there is a big problem in France"Rahul Gandhi wrote on Twitter. Globalised corruption. This #Rafale aircraft really does fly far and fast! It's also going to drop some big bunker buster bombs in the next couple of weeks. Rogue International's co-founder Julie Gayet is also known for being partner of former French President Francois Hollande, who was in power when India and France were negotiating the aircraft deal. The Congress party cited media reports based on a Reliance entertainment press statement dated January 24 which said that Reliance entertainment has joined

OBSERVER DAWN September 2018

hands with Julie Gayet for production of an IndoFrench movie named 'nOmber One'. Responding to India Today's questions on this controversy, Rogue International's co-founder Nadia Turincew said, "To answer your questions about the film Tout la-haut, Reliance Entertainment's connection to

the film was made via the company My Family which is Kev Adam's production company, Kev Adams is one of the most famous French actor, with a huge boxoffice in France." In a written response sent to India Today, French filmmaker categorically denied having any financial dealings ever with Reliance entertainment, "Rouge International has no past or current relationship with Reliance Entertainment, Reliance Entertainment never invested in Rouge International, neither in the past nor in the present and there has been no dealing contacts between the two companies." Reacting to Congress party's charge on the defence deal, BJP MP Subramanian Swami said, "If Congress party has proof against the deal, they should immediately move to the court as I did in many cases". Reliance entertainment's Chief Operating Officer Shibasish Sarkar did not respond to questions. nnn

Construction of India- Bangladesh

pipeline to begin this month

ndia and Bangladesh entered into an agreement for the pipeline construction early this year. After cross-country electricity grid, it is time for cross-country oil pipeline between India and Bangladesh. The Prime Minister may flag off the construction of the 136-km pipeline to carry diesel from Siliguri in West Bengal to Parbatipur in Dinajpur district of North Bangladesh. The two countries entered into an agreement for the pipeline construction early this year.

NE refineries, NRL is also keen to leverage its locational advantage for export of petroleum products to northern parts of Myanmar, which is now catered all the way from coastal Myanmar. NRL supplied paraffin wax and diesel via land route to Myanmar for some time but the trade is now suspended by the Myanmarese partner Parami Energy due to high cost of transportation. To make the trade sustainable, NRL has to create pipeline infra up to Moreh-Tamu border in Manipur and the requisite facilities in Myanmar.

The 6-km Indian leg of the 1 million tonne capacity pipeline will be financed by the Assam-based Numaligarh Refinery, a BPCL subsidiary. The remaining 130 km of the pipeline will be in Bangladesh and is financed through Indiaâ&#x20AC;&#x2122;s ongoing development cooperation programme. The total cost of the pipeline is pegged at 360 crore. Depending on the availability of the right of way in Bangladesh, the pipeline is scheduled to be completed in 27 months. The project will replace the existing practice of sending diesel by rail, covering a distance of 510 km.

While this looks feasible, the company is hamstrung by crude shortage. North-East barely produces 1 mil-

Financing

Crude shortage

Diesel supply

India started sending Euro-III diesel produced by NRL to Bangladesh under a longterm deal in March 2016. Currently, NRL sends approximately four rake loads (10,000 to 12,000 kilo litre) of diesel every month for distribution in North Bangladeshi districts. The crossborder sales of petroleum helped Bangladesh spare the hassles of carrying imported fuel all the way from Chittagong by river and road. Also it helped free the capacities of the heavily congested Chittagong port. The deal offers synergy to NRLâ&#x20AC;&#x2122;s operation as the company sells its products mostly in North Bengal and parts of North Bihar in the absence of adequate demand in the North-Eastern States. One of the largest (3 million tonne capacity) among

lion tonne crude, which is insufficient to run three refineries. NRL is currently supplied crude from Barauni, but the pipeline capacity constraint forces it to run at 2.8 mt. For sustainability, the company wants a crude pipeline from Paradip Port that will help it expand capacities to nine million tonne, which is adequate to tap the emerging demands in Bangladesh and Myanmar.

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September 2018 OBSERVER DAWN

COVER STORY

On The Cusp Of India-UAE Business Relations

A New Era

hile warm business relations between India and the UAE go back to ages, the current momentum is simply unprecedented, scoring high on both symbolism and substance. India and United Arab Emirates (UAE) enjoy strong bonds of friendship based on age-old cultural, religious and economic ties between the two nations. Trading links between the two nations have existed since long. The relationship flourished after the accession of H.H. Sheikh Zayed Bin Sultan Al Nahyan as the Ruler of Abu Dhabi in 1966 and subsequently with the creation of the UAE Federation in 1971. Since then the traditionally close and friendly IndiaUAE relations have blossomed into an important partnership in the economic and commercial sphere. In the

Real estate and petro-chemicals are other focus areas for further investments by UAE companies. To further boost the India-UAE cooperation, the two governments have signed an MoU for cooperation in the road transport and highways sectors.

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beginning, foreign trade and oil and gas were the focal point of the India-UAE relationship. But since then, the UAE has pursued an aggressive strategy of diversifying its economy, and its relations with India have thrived, especially following the recent high-level visits of Indian and UAE leaders. In 2017, trade relations between the UAE and India reached $53 billion, of which $35 billion is non-oil trade. The UAE is India’s third largest foreign trading partner (after China and US). Similarly, India is the UAE’s primary trade partner, buying about 14.9% of the country’s total exports and about 8.7% of its re-exports.

Upswing in India-UAE business relations The growing engagements between India and the UAE have to be seen within the following broader contexts: · UAE’s policy of engaging with Asia to improve economic prospects · India’s search for foreign investments to expedite economic growth · The flux in West Asia – rise of radical and extremist forces, changes in the regional order, calling for India address the threat of extremism and terrorism. · Uncertainties over US policy under President Donald Trump’s administration · India’s growing interest in the Gulf region driven by its economic and trade ties, energy stakes, and presence of some 7 million Indians in the Gulf (and 3.3 million in UAE) Since the National Democratic Alliance (NDA) government came to power in May 2014, New Delhi has intensified efforts on attracting foreign investments and the UAE has become one of India’s leading sources of FDI. UAE is the tenth biggest contributor of FDI. UAE’s investments in India are concentrated mainly in five sectors: Services (10.33%), Construction Development (12%), Power (11%), Air Transport (9%), Hotel & Tourism (9%) and Metallurgical Industries (8%). UAE investment in India also witnessed significant growth in recent years The UAE invested over $5 billion in India through foreign direct investment stock until the end of 2017, which makes the UAE one of the top investors in India. Additionally, India is the second largest direct investor in the UAE at the end of 2016 with $6.6 billion.

Since the National Democratic Alliance (NDA) government came to power in May 2014, New Delhi has intensified efforts on attracting foreign investments and the UAE has become one of India’s leading sources of FDI.

Contribution of Indian diaspora The notable reason of strong Indo-UAE economic ties is the largest expatriate community in the UAE, comprising more than 30 per cent of UAE’s national population. The Indian community has played a major role in the economic development of the UAE. The annual remittances made by the large Indian community in UAE amount to over US$ 13.75 billion (2015). The contribution of Indian community in development and prosperity of UAE has also been acknowledged by UAE Government. The expatriate community also contributes to the growth of Indian economy. Indian businesses have established a strong footprint in the UAE. The Jebel Ali Free Zone (JAFZA) is home to more than 800 leading Indian companies. Recent momentum to India-UEA business ties India-UAE bilateral relations have received impetus from the recent high-level visits from both sides. The landmark visit of Prime

September 2018 OBSERVER DAWN

COVER STORY

Minister of India to UAE on 16-17 August 2015 marked the beginning of a new comprehensive and strategic partnership. H.H. Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, visited India from February 10 â&#x20AC;&#x201C; 12, 2016 on a State visit and had wide-ranging discussions on bilateral, regional and multilateral issues. This was followed by his another visit to India from 2426 January 2017 as chief guest for the Republic Day. Nine agreements were signed during his February 2016 visit and 14 during the 2017 visit for enhancing ties in the field of infrastructure investment, renewable energy, and other areas. On the occasion of the 6th World Government Summit in Dubai, Prime Minister Narendra Modi visited the UAE on February 10 and 11, 2018. It was his second visit after 2015. Several high-level visits between India and the UAE in around three years underline the importance that both countries attach to exploring ways to enhance business ties, increase innovation and entrepreneurship in sectors of mutual interest. Favourable factors impacting India-UAE relations The growing opportunities for jobs in India, along with booming stock market, structural reforms such as GST, ease of doing business have all helped prepare a solid foundation for blooming of India-UAE ties. More than 100 million aspirational Indians are a

India-UAE bilateral relations have received added impetus from the recent high-level visits from both sides. The landmark visit of Indian Prime Minister Narendra Modi to UAE in 2015 marked the beginning of a new comprehensive and strategic partnership

great commercial opportunity. India has now become the worldâ&#x20AC;&#x2122;s fastest growing major economy and the third largest consumer of oil. On the other hand, the UAE has sovereign funds with a corpus of over a trillion dollars. Though the two sides have shown great desire to strengthen bilateral relations and there are no apparent issues or disputes between them, there are however some challenges to be overcome in order to optimise the potential and promises of the India-UAE relations. While India needs to step up its efforts to plug the loopholes in the implementation of projects and investments funds, there is also the need to ensure the execution of the investment projects with requisite expertise. Given that the UAE side lacks the technical expertise and human resources, India needs to ensure proper returns for its investments so that the UAE stays interested in Indian market. If business regulations are eased and the time spent on obtaining clearances can be minimised in India, it can lead to major investments from Gulf and Emirati investors. The way forward

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During the visit of Prime Minister Modi in August 2015, the two sides agreed to further expand bilateral trade by 60 percent over the next

SHARED INTERESTS The UAE enjoys a broad and comprehensive economic relationship with India, fostering creativity, innovation & business excellence. Notably, UAE is the only country in the Persian Gulf with which India has a favourable trade balance despite it being a substantial source of crude oil for India. India-UAE trade basket offers a rich variety. Indiaâ&#x20AC;&#x2122;s total imports from UAE amounted to USD 17593 million and total exports to UAE amounted to USD 23347 million from January to September 2017. The current bilateral trade volume tells that this is exciting time in the history of UAE-India economic relations. Indian imports from UAE mainly include crude & petroleum products, gold & silver, pearls, precious and semiprecious stones, metal ores & metal scrap, electronics goods, minerals, chemicals, wood, wood products and transport equipment. Indiaâ&#x20AC;&#x2122;s major export items to the UAE include petroleum products, precious metals, gems & jewellery, minerals, food items (cereals, sugar, fruits, vegetables, spices, tea, meat, and seafood), textiles (garments, apparel, synthetic fibre, cotton, yarn), engineering goods, chemicals, tea, meat and its preparations, rice, textiles and apparel. In fact, India buys crude petroleum oil from UAE and at the same time, India supplies petroleum products to UAE. In 2015-16, India exported goods worth $30 billion to the UAE with heavy machinery, petroleum products, food and dairy products being the main export commodities. The UAE emerged as the major export destination of India worth over US$ 30 billion for the year 2016-17.

five years. As India and UAE look forward to enhance their bilateral relations, there are areas that provide opportunities to improve the ties: Hospitals in India have the necessary infrastructure, facilities and expertise to provide world class medical care within a fraction of the cost spent in developed countries. Hence, medical tourism is an important area that India needs to channelise to attract more and more Emiratis. India and the UAE have agreed to further strengthen their economic and commercial ties especially in the sectors of civil aviation, climate and energy. Though UAE is only the fifth largest supplier of crude oil to India, there is significant mutual synergy in utilizing the infinite possibilities offered in energy cooperation. There is further untapped potential in the arena of renewable energy. As the cost for production and transmission of solar energy in the UAE is very low, Indian companies with expertise in this area can invest in the renewable energy sector in UAE. Real estate and petro-chemicals are other focus areas for further investments by UAE companies. To give added impetus to India-UAE cooperation, the two governments have signed an MoU for cooperation in the road transport and highways sectors. The agreement will not only help increase investment in infrastructure development and enhance logistics efficiency but also help both countries in creating institutional mechanisms for cooperation in the field. Significantly, Expo-2020 is going to be held in Dubai, opening immense opportunities for Indian investors. Also, there is a scope for improving the investment climate in India to attract more UAE businesses. Automobile industry, services sector, agriculture and allied industries in India possess high growth potential. Overall, India-UAE relationship has entered a vibrant growth phase with bilateral trade expected to exceed $100 billion by 2020. nnn

September 2018 OBSERVER DAWN

Dubai INVESTMENT

Hot Investment Destination

iding on a world-class infrastructure, strategic geographical location, strong connectivity, liberal foreign exchange regime, and a regularly modernising financial and regulatory ecosystem, Dubai has evolved into one of the topmost destinations for entrepreneurs and investors. The city currently leads the global real estate sector interms of investment locations in both luxury and affordable premium housing where Indian developers are emerging as key players. United Arab Emirates (UAE) enjoys the status of being a global business hub which holds immense attraction for entrepreneurs, investors and consumers. Out of the seven emirates of the UAE, Dubai offers a wealth of enticing investment prospects. Hailed as the commercial capital of the UAE, the city-state offers easy access to the 1.5 billion consumer markets situated in Middle-East, Asia, Africa and Europe. The government of UAE has been very diligent in

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inviting businesses by introducing progressive, forward-thinking pro-investment policies such as fast incorporation, tax exemptions, low licensing and fair trade practices. Dubai offers one of the lowest corporate taxes throughout the world. Several free trade zones in the city-state attract good businesses across the globe.

Dubai is investor friendly and the cost of living here is lower than in most developed cities. The Emirate attracts diverse investors because of its well-developed infrastructure, technological developments, and logistics. Dubai Financial Market (DFM) – the governmentowned stock exchange – provides investors with innovative products and services to conduct trading, clearing and settlement in an efficient, transparent and liquid environment. Additionally, the

Dubai International Financial Centre (DIFC) is a major global financial hub for the Middle East, Africa and South Asia (MEASA) markets. DIFC has its own independent, internationally regulated authority and judicial system, global financial exchange, and tax-friendly free zone regime. Dubai FDI – a division within the Dubai Economic

EXPANDING FOOTPRINTS Indian developers in Dubai’s residential space Some of the largest private sector developers in Dubai are Indians who are developing not only towers, but mixed-use, and master-planned communities too. They see an opportunity to leverage their brand name with Indian buyers in Dubai. Indians are the largest non-Arab investors in Dubai’s real estate in terms of value and volumes. Presently, almost 25% of foreign investment in Dubai real estate is contributed by Indians. Many Indians consider Dubai as their second home. Indian developers such as Sobha, , Shapoorji Pallonji, Hiranandani Group are developing prime properties in Dubai. Mumbai-based Hiranandani Developers, one of India’s largest builders, has partnered with Dubai-based ETA Star to build 23 Marina, one of the world’s largest residential towers (90-storeyed tower) in Dubai.New Delhibased Adventz Group has set up a high-profile joint venture with SJM Group for a Dh1 billion tower at the Downtown. Ansal Group is now setting up an office in Dubai to market its Indian apartment projects to NRIs there. In fact, there is strong possibility that more Indian developers could evince similar interests. Significantly, Signature Developers, a boutique builder, has recently unveiled its completed project in Downtown Dubai –The 118. The tower offers 28 apartments, with 26 residences taking up a floor each and two duplex penthouses. One of the important reasons for a huge interest among Indian developers is Dubai's strong connectivity and its liberal foreign exchange regime that allows free movement of capital and profit without any restriction. The ever improving infrastructure of the city continues to benefit the developers as well as buyers tremendously. Department (DED) dedicated to assisting inward investors – guides, advises and provides practical help to investors on all aspects of business decisions and management. One of the most progressive economies backed by consistent regulatory reforms, Dubai attracts investment in establishing enterprises, consultancy firms, software houses and purchasing properties, etc. During recent years, there has been increased investment

September 2018 OBSERVER DAWN

INVESTMENT

in the industries such as tourism, finance, media, technology as well as the real estate sector.

Real estate and its revival in Dubai

The Dubai investment market offers a plethora of opportunities for investors to benefit from unparalleled gains in the global property market. According to a recent report by Knight Frank and IREX, almost one out of four resident Indians prefer to spend more than $1 million for a house overseas. The report said residential property buyers in Dubai have benefited the highest with an overall return of 49.3 per cent followed by Australia at 38.7 per cent. Indian nationals form the largest expatriate population in the UAE and are the largest foreign owners of business establishments in the region, with nearly 25% of foreign investment in Dubai real estate contributed by Indians. The tallest building of the world Burj Khalifa is an iconic landmark of Dubai. Significantly, Indians own the most number of apartments in the building, which has more than 160 stories and a height of over 828 metres. Imposing skyscrapers, swanky malls, artificial islands and mega commercial and residential projects that dot the Emirate’s landscape offer limitless investment opportunities. According to Dubai Land Department (DLD) figures, property purchase by Indians amounted to worth more than $22.6 billion between 2013 and 2017. They

Imposing skyscrapers, swanky malls, artificial islands and mega commercial and residential projects that dot Dubai's landscape, offer limitless investment opportunities.

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Dubai has strengthened the legal and regulatory framework to ensure best practices and timely delivery of properties. RERA ensures protection to investors with definitive laws to regulate the relationship between landlord and minimise potential disputes . bought property worth $4.25 billion in 2017, $3.27 billion in 2016 and $5.44 billion in 2015 – the highest in a single year. Themost prolific non-GCC buyers of Dubai real estate, Indians are the largest foreign buyers of property in Dubai in the first half of 2018 too, with the DLD registering deals worth $1.6 billion involving Indians. The majority of properties were bought in Business Bay, followed by Dubai Marina and Al Merkadh. It makes business sense to invest in Dubai real estate for multiple reasons. Dubai epitomises bright economic future, stability, affordability, class and comfort. Indians prefer to invest their money in Dubai as property-registration is a smooth process here. Dubai is also among the most affordable property destinations. Property in Dubai is cheaper — one square foot of property in a prime location in Dubai would cost approximately Rs 25,000 which is size ably lower than what one would have to invest in Central Delhi or Mumbai. Also, apartments in Dubai are sold in terms of carpet area with free car parks. According to a research conducted by Bayut.com – a Dubai-based online property listing site – despite an overall softening of rent and sales prices, average rental return on investment (RoI) achieved on apart-

i n

ments in Dubai was seven-eight per cent, while villas accounted for five per cent, between November 2016 and November 2017. However, if one looks at some of the post hand-over payment plans where the investor/buyer pays only 50 per cent, with the rest payable in three to five years, the RoI is almost double. It is safe to invest in Dubai as over the last 10 years, Dubai has strengthened the legal and regulatory framework to ensure the best practice at all levels in order to ensure timely delivery of properties. The sound regulatory environment enforced by the Real Estate Regulatory Agency (RERA) ensures full protection to investors. It has enforced definitive laws to regulate the relationship between landlord and tenant to minimise potential disputes.The Dubai real estate market has consistently been highly transparent in all aspects, making it very attractive for Indian investors. In the recent past when many countries all over the world faced severe recession, the Dubai real estate market has remained the same or even appreciated

Indian nationals that form the largest expatriate population in the UAE , are the largest foreign owners of business establishments in the region, with nearly 25% of foreign investment in Dubai real estate contributed by Indians.

both commercial and residential segments. As the government has supported and assured the real estate marketâ&#x20AC;&#x2122;s stability, the Dubai residential sector, in particular, has considerably recovered due to the growing purchases of apartments, villas, vacation properties and condos. For the last 15 years since the announcement of freehold properties in Dubai in 2002, developers had been focusing on luxury properties so much that there came a point of saturation in luxury properties. Later on, the lack of affordable homes gradually pushed the demand for middle-income homes. Now the residential development in Dubai has increasingly started to focus on the mid-income sector in recent years. Developers have launched mid-segment residential projects and have started to offer three to five-year phased payment plans as the industry has realised the opportunity in the affordable homes segment. For those who want to invest in a permanent residency, the UAE government offers Dubai Visa - Property Investor Visa. Issued by the DLD to be renewed every two years, it gives extensive resident rights to home buyers, further driving realty sales . A buyer is entitled to a residence visa on investing Dh1 million ($270,000 or Rs 1.88 crore) in the city. Dubaiâ&#x20AC;&#x2122;s economy is growing by leaps and bounds and investing in real estate in Dubai can help investors benefit from this growth. Dubai leads the global real estate sector in terms of investment locations .And due to the ease of starting a business, dealing with permits, registration of property, etc., the demand for real estate in Dubai is growing at a steady pace.

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SPOTLIGHT

India- UAE Business Summit & Awards 2018

CELEBRATING

SUCCESS

It is time again to celebrate success and excellence in business with a glittering awards ceremony - India UAE Business Summit & Awards 2018, to be held at Atlantis, The Palm, Dubai on September 23, 2018. This spectacular event is organised by Hot Entertainment and Media Private Limited, a diversified news media, boasting of a leading business magazine- Observer Dawn and an online news channel- Hot News.

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September 2018 OBSERVER DAWN

SPOTLIGHT

upported by Observer Dawn, this prestigious event is powered by KW Group while OLX Real Estate is the online partner. Times Now Middle East and NDTV Prime are the TV partners of the event . It will have conference, awards, investor meet and study tour, besides providing reat networking opportunity. The major highlight of the event is that HH Sheikh

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Tahnoon bin Saeed bin Tahnoon Al Nahyan of Abu Dhabi will be the chief guest . The Royal Ambassador and CEO of the Royal Office HE, Zulfiquar Ghadiyali will also grace the event along with HH Sheikh, along with Sheikh's key advisers His Excellency Suhail Mohammad Al Zarooni, eminent businessman and world famous collector, will also be attending the summit and awards ceremony. It will be powered by other dignitaries like Sh Sirikonda Madhusudhana Chary, First Speaker of Telangana

Legislative Assembly, Sh K.C Tyagi, Member Parliament(Rajya Sabha) and Chief General Secretary and National Spokesperson of the Janata Dal (United)., Sh Sharad Tripathi, MP, Sh Pankaj Jain, MD, KW Group, Dr Ananta Raghuvanshi, Former Executive Director, Sales & Marketing, DLF Home Developers Ltd., Sh Anshuman Singhania, Whole time Director, J&K Tyre & Industries Limited , Sh Pankaj Yadav, Indian Film actor, Sh Amrendra Shukla, Head Sales, OLX India, Sh dhruv Kant Thakur, IG Bareilly Range, Sh Gajendra Chauhan, Ex- Chairman FTII, Sh D Murugaselvam, Chairman, YRSK Group of Companies. The event besides having a business summit, will host International Business Awards (IBA). These are independent awards aimed at recognising and rewarding business excellence across all sectorscomprising private and public sector businesses and non- profit organisations. The awards include categories including best company awards of the year across different domains, best start up company award of the year, financial institutional awards, besides awards for most innovative company, best CSR Company and fastest growing company of the year. The event will also showcase Indian Realty Awards (IRA), to be bestowed upon realty players who are significantly contributing to the growth of the real estate sector. IRA has already set a benchmark since 2012 by continuously organising award event for the last six years. There will be a variety of developer, project and professional awards. All the awards will be adjudged by a credible jury. Enjoy all this and more in this comprehensive snapshot of India- UAE Business Summit & Awards 2018.

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NEWS MAKER

THE PEARL OF UAE

e is an eminent emirati businessman and a Guinness Book of World record collector who has hogged global headlines as a great philanthropist and benevolent human being, committed to the upliftment of women, children and socially disadvantaged sections of society.

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A green warrior and a torchbearer of global peace, Suhail Al Zarooni, has deservedly earned the title of 'The Pearl of UAE'. Son of Mohammad Abdul Karim Al Zarooni and cousin of Sultan Zarawani, 50- years-old His Excellency, Suhail Al Zarooni came into spotlight for his love for cars. He twice held the Guinness Book record in 2002 and 2003 for his collection of 20000 model cars. He is the first Emirati after the Royal family of United Arab Emirates to be awarded with a Guinness World Record certificate. He is credited with the world's largest twowheeled five-story travel trailer built in nineties. Suhail Al Zarooni first shot into limelight in 2002 for largest collection of 1600 Miniature Model Cars which cost $3 million. He earned the distinction of being the first person whose picture was published in Arab dress in the Guinness Book of World Records.He acquired another 2,000 cars the next year and today his collection tops 20,000 Miniature Model Cars, earning him the title of ' King of Model Cars'. Suhail Al Zarooni is a first person in the world whose picture came in the Guinness World Record Book in Arabic dress. His Excellency Suhail Al Zarooni got Witness Letters for Guinness Book from His Highness Sheikh Nahyan Bin Mubarak Al Nahyan, His Highness Sheikh Hamad Bin Ham dan Al Nahyan, His Excellency Sheikh Khalid Bin Abdul Aziz Al Qasimi, His Excel-

lency Sheikh Suhail Bin Ali Bin Saeed Al Maktoum, Faraj Bin Butti Al Muhairbi, Abdullah Ali Al Shafar and Sultan Saqur Al Swidi. .Zarooni collects anything that sparks his interest. And now inspired by him, even his sons have turned collectors. Besides Miniature Model Cars, Suhail Al Zarooni also has collection of Wedgwood Crockery, British royal family dolls & figurines, coins, bank notes, stamps, Cartier Collection, Versace Crockery, newspapers, magazines, first day covers, Starbucks mugs, antique plates, caps and hats, he also has M&M's Figurine Collection, Mackintosh Quality Street Chocolates Tin Boxes and Lindt Chocolate Boxes, Coffee Mugs & Hershey Chocolate Bottles, Limited & Special Edition Walkers Biscuit Tin Boxes, Pringles Chips Cans & Special Items, Heinz Ketchup Bottles & Cans, Pepsi and Coca Cola, Red Bull, Yardley of London & Kit Kat Boxes, Lay's Chips Covers, Matchbox, Pens, Pencil, Hotel Room Do Not Disturb Sign, Original Movie Cells, Hollywood & Bollywood Movies in DVD, VHS & Laser disc, English & Indian Songs in CD & Cassette & many more things. The multi- faceted personality of Suhail Al Zarooni goes much beyond his interest as a collector, to espouse the cause of children, women and underprivileged. His NGO provides educationist to underprivileged women and children . He has been striving hard to establish the human rights of women and children as historically they have been legally and socially disadvantaged. On the other hand, gender-based discrimination is deeply embedded during childhood and contributes to the continuum of violence that runs through lives of many women . Zarooni always fought for women and children rights around the world. Zarooni is a first person who built robot jockeys for the Camel Races with a view to protect the human rights of small children who are used for Camel Races. In 2005, Zarooni introduced a peace campaign , 'Boundaries Do Not Bind' to bring peace in the world where there is enough distrust and ten-

sions. He started with a focus on India & Pakistan, the countries close to his heart.He is jointly associated with United Nations Office on Drugs and Crime for drug control and crime prevention all over the world. He started 'Think Green' awareness campaign to explore and preserve environment in. his idea behind 'Think Green' awareness campaign was to reduce the energy consumption by recycling and reusing what we produce, and by reducing our consumption of resources like fuel. He gave the message to people that together, we can recycle and care for what we use like plastics and glass, cut down waste, reduce consumption of water and electricity, and thereby positively impact our planet's health. More recently he is working to provide a new dimension to his 'Think Green' awareness campaign in collaboration with artists who can promote it all across the globe. Suhail Al Zarooni who has hit international headlines , has a special interest in media.He has a large collection of newspapers dating back to World War II. He has preserved the newspaper when Hitler died and also has the newspaper carrying the news about the assassination of John F. Kennedy in 1963. His other prized collections are newspapers carrying the news about Queen Elizabeth's marriage in 1947 and about the death of King George VI and Princess Diana in 1997. His collection of newspapers and magazines is a tribute to the world of print media, playing the role to record the past with an eye on the present to impact the future.In his archive of newspapers, magazines and books, the focus lies on iconic people and traces their impact on the times in which they lived. The new Al Zarooni Museum & Car Collection has dedicated an entire section to the world of media which is called 'Media Street'. This is a tribute to the world of publishing with a shining light on the journalists, writers and poets who give life to a story.

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September 2018 OBSERVER DAWN

4 Years of MILESTONE

Modi Government

Reformed & Transformed Realty Holds Promise

Vinod Behl

he four years of Modi government, marked by landmark reforms, have seen the complete transformation of the unorganised and opaque real estate sector into a regulated , transparent, affordable and consumer- friendly asset

class. , putting home buyers at par with lenders, thereby paving a way for refund of their money. Large number of housing projects across India are stalled due to shortage of funds, especially as

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bank funding has been difficult to come. But the reformed and regulated real estate has led to inflow of huge foreign investment of $114.4 billion in 2015-

17, registering 40 percent increase in FDI recorded in 2011-12 to 2013-14. Together with FDI,another avenue of developer funding through NBFCs has come as a lifeline for stalled projects, giving new hope to homebuyers. The Real Estate Regulation & Development Act (RERA) has come as a big saviour for property consumers. With its stringent preventive andpunitive provisions, RERA has put an end to heir exploitation by unscrupulous developers by making transactions fair, transparent and secure. The reform - oriented govern-

ment gave top priority to infrastructure development by setting up 40000 crore National Investment & Infrastructure Fund.The high priority to highways, with recordconstruction of 25 km of highway per day, hasiven connectivity boost to real estate. All the reforms and enabling policies have contributed to revival of real estate, The worst hit residential realty has seen a growth of 13 percent in FY'18. The commercial real estate has already seen turnaround, with CBRE report pointing to alltime high absorption of 11msf during

September 2018 OBSERVER DAWN

MILESTONE

realty revival has also been possible due to turnaround in economy, with growth bouncing back in second half of FY'18. In the last 4 years (Fy 15-18), overall growth rate in economy showed a modest upstick to 7.3 percent compared to average growth of 7.2 percent in FY 11-14. Though the short-term adverse effects of interruption caused by

Reformed and regulated Indian real estate has led to inflow of huge foreign investment of $ 114.4 billion in 2015-17, registering 40 percent increase in FDI 2011-12 to 2013-14 period.

reforms like demonetization , RERA & GST have been largely contained and real estate is on revival path, the government needs to tackle various reform challenges to fast track this process. Notwithstanding GST contributing to ease of business and marked improvement in global Ease of Doing Business Index, there is a need to put single window mechanism in place to speed up projects. Bringing real estate under GST to derive its full benefits , bringing down transaction costs by rationalizing stamp duty and collector rates , according industry status to real estate to access cheap bank funding and effective and speedy implementation of RERA, 'Housing for All' and 'Smart Cities Mission' are other challenges on hand. Nevertheless, reforms have provided a much needed spring board to real estate to transform into an attractive asset class, having sustained growth.

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WEALTH REPORT

India to Pip France UK in Demi-Billionaires

night Frank, the leading International Property Consultants have come up with the half-year update of The Wealth Report that takes a deeper dive into the wealth distribution data from the 2018 edition of The Wealth Report, by analysing the population of global demi-billionaires .The analysis highlights that in five years’ time the number of demi-billionaires, those with $500 million or more in net assets, in Asia will overtake those in North America for the first time. Wealth data specialists Wealth-X predict that there will be almost 3,000 people based in Asia who have more than US$500 million in assets by 2022. Knight Frank cites strong global economic growth, as well as rising asset prices as key drivers behind the growth in the world’s demibillionaire population. By 2022, Wealth-X anticipates that there will be 9,570 demi-billionaires worldwide, up from 6,900 at the end of 2017. Key Takeaways – India · India had 200 demi-billionaires (those with $500 million or more in net assets) in 2017, and this number is slated to increase to 340 in 2022. In comparison, the population of demi-billionaires in France will increase from 230 in 2017

to 310 in 2022 while Russia and the UK, both of which had 220 demi-billionaires in 2017, are expected to increase their numbers by merely 50 and 40 respectively.

Mumbai displayed 0.6% change in the PIRI City Index thus implying largely stable prices during this period, a positive for the investor community. PIRI gauges the luxury prices and price performance for 20 of the world's key cities.

Knight Frank’s Prime International Residential Index (PIRI), City 20: City Singapore Madrid Tokyo² Berlin Cape Town Los Angeles¹˒³ Beijing Hong Kong ParisT Sydney

Annual % change (June 2017-18) 11.5% 10.3% 9.4% 8.5% 8.2% 7.8% 7.3% 6.4% 6.0% 5.7%

City Melbourne Shanghai Miami¹˒³ Monaco Mumbai New York Dubai³ London Istanbul Vancouver

Annual % change (June 2017-18) 5.4% 3.3%\ 3.3% 1.0% 0.6% 0.1% -0.8% -1.8% -2.4% -6.2%

Source: All data comes from Knight Frank’s global network with the exception of Tokyo (Ken Corporation); New York (StreetEasy); Los Angeles and Miami (S&P CoreLogic Case-Shiller); Berlin (ImmobilienScout 24); Vancouver (Dexter Associates Realty, Real Estate Board of Vancouver)

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tional residential markets. Singapore leads the house price rankings (+11.5%). The city has witnessed resurgent price growth due to rising foreign demand and high land bids by developers.

Key Takeaways – Global ·

The US will remain the country with the biggest overall population of demi-billionaires, expected to rise from 1,830 to nearly 2,500 over the next five years. In China, the number will grow from 490 to 990, says Wealth-X. Despite the rise in political uncertainty and unknowns surrounding the final Brexit deal, the UK saw the largest inflow of overseas deposits globally in 2017, rising to US$1.8 trillion, a currency adjusted annual net inflow of US$239 billion, according to Bank for International Settlements (BIS) data analysed in the annual Knight Frank Wealth Report. Singapore experiences resurgent price growth in Knight Frank’s analysis of 20 prime interna-

The US was the largest origin for deposit outflows, reaching US$220 billion in 2018. The most popular destinations for these funds were the UK, France and Canada.

Closer home, the report’s findings show that prime residential markets in cities such as Mumbai and Delhi have remained largely stable in the last five years, which creates a good entry opportunity for buyers. At the same time, the number of demi-billionaires has been steadily increasing in India and is poised to grow by 70% by 2022, clearly underscoring the potential for demand and price growth going forward.

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September 2018 OBSERVER DAWN

REFORMS

GST to Usher in Long Term Business Gains

midst teething troubles and glitches in the implementation framework, the landmark reform of Goods & Services Tax (GST), ushering in a unified tax regime, has though helped in speeding up real estate recovery and easing the business transactions, yet it has not lived Vinod Behl up to its promise of providing significant price relief to consumers, even one year after its implementation. Home buyers who had pinned high hopes on GST for reduction in property prices, are disappointed as overall cost of property purchase has not come down or rather in some cases it has gone up. GST which was introduced on July 1, 2017, has done away with multiple taxation of VAT, service tax, central excise duty, octroi etc. In the pre- GST regime, the average tax burden on home buyers was about 6 percent, though in some states, due to higher taxation, it was in double digit.However, in the GST regime, there is a single tax levy of 12 percent on the sale of under- construction residential property. And though real estate developers are entitled to Input Tax Credit (ITC) against construction materials purchase, yet its impact is said to be marginal in terms of tax relief. Even in affordable housing under Pradhan Mantri Awas Yojana (PMAY) where the effective tax under

OBSERVER DAWN September 2018

GST works out to be 8 percent,after taking into account one third abatement towards cost of land, there is no significant cost benefit. For states where net taxation in pre- GST regime was on higher side, there is no additional tax liability on home buyers, even if there is no cost benefit. The real problem is that the benefit of ITC is not accruing to home buyers in terms of cost reduction as it is not effectively passed on to buyers due to its complex nature and lack of clarity. There is still no clarity on abatement available for land cost for the purpose of calculating service tax on under- construction projects, thereby having major implication on the final price. According to Anuj Puri, Chairman, Anarock Property Consultants, the ITC confusion goes beyond percentage of rebate to mode and tranche of rebate due to complexity of calculating ITC. Ramesh Nair, CEO,& Country Head, JLL India, further elaborates on the complexity of ITC. " There are different tax computation methods for different projects/phases of the same project. Further, there is ineligibility of refund to developers under the inverted duty structure, considering inputs are procured at a higher rate of tax whereas output is charged at a lower tax rate ".Builders seek to simplify tedious process for filing returns and ask for more structured mechanism for legal protection against defaults. Real estate developers engaged in affordable housing are also not much happy with the benefit of price reduction through GST. Affordable housing crusaders like Pradeep Aggarwal of Signature Global call for either abolishing or at least significantly reducing

tax rate to give a push to affordable housing and realize 'Housing for All' mission. The luxury housing developers also complain that as land cost component is quite high in this segment, there is no significant corresponding benefit.There is a case for subsuming stamp duty on property transactions in GST, in order to make it much more effective in terms of price benefit. However, property buyers are reaping rich benefit of investing in ready residential properties as there is zero GST and no development risk. There is yet another glaring aspect of GST that it is restricted to only under-construction residential projects and is not applicable to ready-to-move properties or to the secondary market. This, according to Honey Katyal, CEO, Investors Clinic( leading real estate marketing company), may discourage buyers to book under-construction properties despite the fact that buying a ready property is always expensive and the relative impact of GST is almost nullified in that case. Notwithstanding these teething problems , the positive impact of GST on the real estate sector as a whole

can not be overlooked. GST has made realty sector more streamlined and transparent, with tax predictability, thereby boosting investors sentiment, leading to spurt in foreign investments. The emerging asset class within real estate - warehousing has got a major push with GST. A recent World Wealth Report by Capgemini reveals that key reforms like GST and RERA have proved to be a major driver for reviving real estate. After a gap of about 8 years, equity capital market is witnessing return of realty IPOs. And as the government sets out on refining the architecture and compliance process of GST to make it more robust, a HSBC report says that in the coming times, GST will lead to greater formalisation. The government's attempts to fine tune GST, particularly its new proposal to reduce GST on construction material from 28 percent to 18 percent, will have a major positive impact on property cost, thereby realizing long-term goal of making housing affordable.

GST has ushered in tax predictability and ease of business, thereby boosting investors' sentiment.

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September 2018 OBSERVER DAWN

MARKETING

Build & Sell Model

n the current real estate landscape marked by large number of stalled under- construction housing projects , with lakhs of home buyers risking their investments, the business model of 'Build & Sell' has emerged in the new regulatory environment, that promises to bridge the trust deficit between developers and home buyers to provide the much needed momentum to home sales. It is the real estate giant, DLF that has taken the lead in adopting 'Build & Sell' model. The company has announced that it has revisedits marketing/sales strategy and now it is focusing on selling only completed residential projects, targeting to sell ready-tomove flats worth 15000 crore over the next 3-4 years. In line with this strategy, DLF, for over a year, had stopped the sale of its residential units to create enough completed inventory and currently, 11msf of development is underway Incidentally, a North Indian real estate player- Imperial Holdings had successfully introduced this model in the first phase of its 100-acre luxury township project- Auramah Valley at Naldera, on the outskirts of Shimla. The emergence of 'Build &Sell' model has raised the questions about its need, suitability, advantage , business economics, prospects and challenges. According to DLF CEO, Rajeev Talwar, in order to avoid a situation under RERA where developer gets heavily penalised for delayed delivery and has to even refund money to buyers with interest, (even if the delay is on part of authorities) , developers have to take to selling when the project is fully constructed or in advance stage of construction.The current regulatory environment, following the implementation of RERA and GST, according to Vineet Relia , MD, SARE Homes, is favourable for 'Build & Sell' model, considering increased demand of ready-to-buy homes. The ready homes have remained a preferred choice of home buyers across the country, commanding around 3.7 percent premium over under-construction properties, as per agicbricks.com. Ramesh Nair, MD, JLL India, says that the model has positive prospects for end users as there is no risk of construction delays in completed projects and the consumer does not face any lock-in period. Coming to the business economics of 'Build & Sell'

OBSERVER DAWN September 2018

model, DLF authorities say that the working capital available for construction is available at attractive rates and the new business model will help the company achieve higher realization as price of completed project has higher valuation than the price at the project launch time. Investment expert, Harsh Roongta is also of the opinion that though in the current model of financing through customer advances/EMIs, builder gets finance at the rate of around 8.5 percent , institutional financing/overseas funding is available under the new model, though at a little higher rate. However, under the new model, the turnaround will be faster and builder will be saved from interest cost especially delays due to bureaucratic hurdles. But there are many who talk about the challenges, especially financialones, confronting this new model of real estate marketing. Vineet Relia of SARE Homes says that the biggest challenge is to fund land which is the major cost of the project as there is no bank funding available for this. Vivek Dahiya, MD, North, Cushman & Wakefield says that though the business economics are yet to be evolved, this model will require higher equity or strong institutional support during construction period and unless the capital market evolves, very few developers will be able to manage this model .Moreover, there is risk of buyers' interest dwindling and market softening after the project gets ready. Ramesh Nair of JLL adds that there is risk to builder on sale price as over a period of time, on account of

market dynamics, the sale price may not be as per projected profits. Also to ensure that there is limited period between sale and repayment of debt, the company has the challenge to offload inventory within a stipulated time. And if the developer fails to do that, his cash flows will be impacted. Niranjan Hiranandani, Founder & CMD, Hiranandani Communities & President (Nation) Naredco says that you don't expect home buyers to buy out ready stock within a year of completion as different market scenarios impact take off of apartments. And after a year, unsold stock will invite additional levy of taxes. Its biggest impact will be that developers may not commence work on a tower unless they have confirmation about guaranteed sales. Or they will complete the tower but won't apply for occupation certificate unless they have confirmed sales. As such, creating more housing stock, will not make good business sense and this in turn, will limit the choices for home buyers. Sushil Mittal, Founder VP NAR India & Chairman, ACRI is of the opinion that the 'Build & Sell' model will suit deeppocketed developers, especially those having regular income from rent- yielding assets and realty funds will invest in developers with good track record. Relia endorses , saying that the new model suits credible developers with good track record, irrespective of whether they are engaged in affordable or luxury housing. Manav Singh , MD, Imperial Holding believes that though it is more feasible to fund the projects through construction- linked payments, yet if the market sentiment is low and one is confident of his project, it is worth taking the risk of building first and selling later. Godrej Properties sees both pros and cons in the new model. Says Pirosha Godrej, Chairman, Godrej Properties, "Funding development from one's balance sheet /own resources is advantageous to the point that margins will be better. But then, ability to grow will be limited. So, each company will have its own strategy". Having said that, Pirojsha, however adds that 'Build & Sell' is not their model as they believe in fund-

ing the project from sales to customers. In this scenario, Vivek Dahiya of C& W, talks of hybrid model. " To tackle the financial challenge,developers may well go in for hybrid model. They may go for project launch when all civil works are complete and finishing work is about to begin. This way they can get customer funding for finishing". Considering the enormity of financial challenges before 'Build & Sell' model, a fear is being expressed that this model may favour big developers and discriminate against small and medium play rs. Ramesh Nair expresses this fear saying that the model will be to the advantage of big players and small and medium players will be inconvenienced unless they are in high demand market and have smaller projects with faster turnaround time. Manav Singh, however dispels this fear , saying that one doesn't have to build the entire development ; one just needs to be ahead of the sales curve. Vivek Dahiya says that there is challenge for both big and small players." Smaller developers will struggle unless they professionalize their systems and processes and are able to secure institutrional support. Even the big players who don't have basics in place, i.e professional management, strong back end support systems , will find going tough". The jury is also divided on whether the new model suits affordable housing or luxury housing. Ramesh Nair says that the model is more suited to luxury housing than affordable housing. " The new model may well suit luxury housing better from the point of profile of buyers who are not price sensitive. Besides, there is greater amount of customisation of products in luxury segment.In the affordable housing segment, since the buyers are price- sensitive, they may like to go for under construction property, to take advantage of entering at lower price point".Sushil Mittal discounts requirement of the model for affordable housing , considering low holding cost due to low share of land cost and tax benefits for affordable housing. Vivek Dahiya however, talks about the suitability of the model for affordable housing. "As upfront capex is comparatively lower in affordablehousing, so subject to institutional investor support, many developers of affordable housing, would want to evaluate this model. All said and done , the industry stakeholders are quite optimistic about the adaptability of 'Build & Sell' model , especially as developers will continue to face pressure to deliver and cut high inventory amidst persisting trust deficit of buyers and ongoing risks pertaining to delays in securing government approvals for projects. n

Vinod Behl

September 2018 OBSERVER DAWN

TECHNOLOGY

Crowdfunding to Block chain

echnology is disruptwith the available options ing different industries Tracking data on projects' construcacross the world, and tion progress and regulatory complireal estate cannot be ances in real time as and sales figures far behind. Already, information If we look at the larger real estate consultants picture of technology use in the real have moved beyond the traditional estate business, various new avenues ways of prospecting, with the Interand means of doing business are net opening up the market in ungoing to open up. Let us, for example, precedented ways and taking a lot of take crowdfunding. the footwork out of finding property Crowdfunding options. As much as 70% of modern real es- Anuj Puri, Chairman Crowdfunding could emerge as a new way for real estate consultancies to tate consultancies' prospects are ANAROCK Property add value both to developers and today acquired through digitally-obConsultants their customers. For instance, one tained leads. As big data and analytcould use the crowdfunding platform ics become more integrated with the property brokerage industry, such consultancies are to raise small amounts of money online from several now 'cracking the code' by in many innovative ways, donors in order to finance a developer’s project or venture. including: Obtaining and feeding deal and bid information into Aggrieved buyers wanting to get their ‘stuck’ project their company’s central repository at the tap of a few completed may also take the consultancy's help with buttons Instantly matching customers' requirements setting up an escrow account where the crowdfunded

OBSERVER DAWN September 2018

money gets deposited. When the project is completed and a cooperative housing society is formed, it could sell out some of the extra units in the project and share the profits with all such investors. Such advances in financial technology can and will revolutionize almost all aspects of the real estate business in the future. In particular, they speed up the entire transaction lifecycle of the residential real estate business. Another area where technology comes into the picture in the real estate business is blockchain

Blockchain

Blockchain has all the hallmarks of a real estate revolution in its own right. The underlying principle of blockchain technology is the distribution of digital information in a secure and efficient manner – information which can be accessed, albeit with some restriction, but not copied. This technology will usher in greater transparency, efficiency and accuracy in the Indian real estate sector which involves multiple parties, detailed due diligence and numerous transactions. Given the rise of online portals, buyers have easy access to search real estate properties ‘online.’ However, the subsequent stages of documentation, past records, due diligence, registration and final closure, pose a real challenge - and blockchain technology the next wave of digitization - will make this process simpler. Simply put, after identifying a property, a buyer can access title records, encumbrances, property taxes, etc. from Government records. Further, using a passcode/private security key of the seller, a buyer (or his representative) will be able to access all previous

property records such as maintenance payments, ownership, etc. Once the property is finalized, the buyer can share these records with the bankers and mortgage can be arranged to post a digital due diligence. In addition, with digital signatures, payments can be transferred to the seller and the property can be registered in the name of the buyer. All-in-all, with blockchain technology, a property transaction can be concluded faster, seamlessly and with limited manual intervention – enhancing the overall efficiency of the system. Other major benefits will include: Title fraud elimination Minimal involvement of intermediaries like lawyers and brokers, thereby lowering transaction costs. Elimination of government-level corruption A boost to tax revenue collections Elimination of the need for storing physical property papers - thereby doing away with the potential pitfalls of lost or stolen property papers. Significant reduction of property disputes Digitization of records, implementation of RERA and GST are the building blocks for Indian real estate sector to emerge as a transparent and buyer-friendly one. Alongside, the implementation of blockchain technology - which is essentially a dynamic database of records offering ‘viewing’ rights to all but ‘editing’ rights only to the owner - will be a big leap forward in the ease of doing business in the real estate sector. Considering that the world is still experimenting with this technology, it will take a few more years before we see block chain technology being used to its utmost potential in the Indian real estate industry. However, it is definitely an integral part of the future of real estate. nnn

September 2018 OBSERVER DAWN

BRANDING

Why Branding Is

Important For Your Business

randing is the way in which your customer perceives you when they hear or think of your company name, service or product. This includes everything they think they know about your brand, including factual information, such as your bright yellow packaging, but also emotive elements, like for example that it’s luxurious. So what is a brand? In simple words, it is a title or image that will represent the uniqueness, quality, value and professionalism of your organization and what it is promising to offer. So why is branding so important? Take a look at our top 5 reasons why you should take your time developing your brand…

Branding Promotes Recognition

Effective branding can promote recognition for your business. If your brand is consistent and easy to recognise, it can help people feel more at east purchasing from you. People adhere to familiarity and if you’re remembered as a quality provider, then you will encourage repeat business as they are more likely to choose your product or service again.

Your Brand Sets You Apart From The Competition

In a highly competitive global market, it is crucial to stand out from the crowd. Remember that you are no longer competing on a local stage, you’re now competing in the global economy. Your brand will therefore help you stand out from the thousands or millions of similar organisations around the world.

Strong Branding Generates Referrals

A strong brand can create referrals or viral traffic because people love to tell others about the brands they like. People eat, listen and wear brands, and they’re constantly telling others about the ones they love. In fact, 84% of consumers have said that they ‘always or sometimes’ take action based on personal recommendations. Imagine falling in love with a brand but when you go to recommend it to a friend, you can’t remember it- this is why strong branding is so important; you can’t tell someone about a brand you can’t remember.

Poonam Mahajan

Founder, Apexx Media (Brand Creators)

OBSERVER DAWN September 2018

Branding Sets Expectations

A strong, consistent brand will allow the customer to

know exactly what to expect each time they encounter your business. A professional appearance will build creditability and trust, which bodes well as people are more likely to purchase from a business that appears legitimate. Your brand represents your promise to the customer- like an unspoken contract so to speak.

A Strong Brand Adds Value

A strong and successful brand will add value to your business, well beyond physical assets. Consider companies such as Apple, Facebook and Coca-Cola; they are worth much more than their premises, equipment and/or products. It has been their brand thatâ&#x20AC;&#x2122;s increased the companyâ&#x20AC;&#x2122;s value, far exceeding their physical value. The strong brands always include following points in their brand communication: v v v v v

Explain what you do to your target customers

Design the brand image/logo: Get a help of professional with this. The brand image should be communicating what you want to deliver to your customers. As brand become the base for connecting with consumer building strong brand is an important task in marketing your business

protect your brand: Once the process of the logo, creation is completed protect it by trade marketing.

Give tagline to your brand: Images are powerful medium to communicate with the customers, but adding tagline ensures that your clients understand what you want to communicate through your brand logo. Write a tag line that captures the essence of your organization's value proposition. The tagline should capture the mission statement of your organization

Promote your brand: Once you have completed the process of brand building, promote it considering your target customers and the medium through which your target customer can be approached. The more people will see your brand the more powerful your brand will become.

Attract the right customers Differentiate you from the competitors Represent the quality and value of organization's mission Convey the reliability and trustworthiness you want to deliver

v Provide information on expectations your clients could seek from you

Simple guide for creating your brand 1)

Start with the mission statement: What exactly your company seeks to deliver to your customers. The mission should be kept short and should not contain too many details about the organization.

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September 2018 OBSERVER DAWN

EVENT

Seminar to Educate & Empower

Property Consumers

aryana Real Estate Regulatory Authority (HRERA) Gurugram and an NGO Manav Awaaj (Peoples Voice) jointly organised an a seminar and panel discussion in Gurugram on August 27, 2018 to educate and empower property consumers. The seminar was graced by Dr. K. K. Khandelwal, Chairman, HRERA, Gurugram as Chief Guest and Parveen Jain, Vice Chairman, NAREDCO, Dilbagh Singh, Joint Commissioner, GST, Haryana and Samir Kumar and Subhash Chander Kush, Members HRERA, Gurugram as Guests of Honour. Founder Editor of Realty Plus magazine, Vinod Behl was the Knowledge Partner of the seminar and he moderated the panel discussion in which Dr. K. K. Khandelwal, . Dilbagh Singh, Parveen Jain, . Rishabh Sawansukla (GST Expert), . R.S. Rathi, Chairman, Gurugram Citizens Council and Senior Advocate . Sanjeev Sharma took part. On this occasion a simple, easy-to-understand booklet on RERA, prepared by Vinod Behl and Sanjeev Sharma was also released During the seminar, Chairman HRERA, Dr. K.K. Khandelwal made it clear that in case of projects where 40% or more of construction work hasbeen carried out, refund is not being allowed as a matter of policy as the priority of Authority is to ensure that home buyers get possession of their homes. If refund is allowed indiscriminately, it willjeopardize the interests of large number of home buyers who have invested in the project, which may not see light of the day. Therefore, a balanced and growth- friendly approach has been adopted to ensure that projects get completed. Refund is however, allowed in rarest of rare cases. The Central Real Estate Regulatory Act has a provision for a websiteof the State Real Estate Regulatory Authority, making it mandatory for developers to give all the necessary details of their projects in thewebsite for the benefit of home buyers. In the sem-

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inar, aggrieved home buyers raised the issue of partially operational HARERA, Gurugram website carrying incomplete data. Some aggrieved home buyers who had filed cases with HRERA, Gurugram, raised the issue that their complaints were not being addressed within 60 days from the time of receiving the application. In response to this, Dr. K. K. Khandelwal, Chairman, HRERA, Gurugram, informed thatthe Authority is

complainant friendly and in the next 3-4 months somemechanism will be developed to dispose off cases within 60 days. The seminar saw Dr. K. K. Khandelwal debunking the charge of some homebuyers that provisions of HRERA Gurugram were diluted. On the otherhand, he removed misgivings about the applicability of the Act, especially about those projects where Occupation Certificate/Completion Certificate has been issued before RERA came into force. He clarified that such projects (not more than three

years old) are exempted from RERA registration but not exempted from the ambit of the Act. And the promoter is expected to comply with RERA provisions even after the expiry of project registration following the issuing of completion certificate. And in the event of non-compliance buyer has a right to file complaint with HRERA. Allaying the fears of home buyers, Dr. K. K. Khandelwal made it clear that even after the expiry of registration, developer is bound to be liable for any structural or workmanship defect and deficiencies in land title, common facilities, common areas. Regarding the fate of incomplete / stalled projects, Dr. K. K. Khandelwal said that HRERA Gurugram was evolving a mechanism under which Real Estate developers and industry bodies like NAREDCO and CREDAI could be roped in to complete unfinished

real estate projects. In the seminar, the issue of some developers fraudulently taking Occupation Certificates of their projects also cropped up. Dr. K. K. Khandelwal assured the seminar participants that such fraudulent OCs will be withdrawn and action will be taken against errant officials. The issue of unreasonably high property transaction cost comprising of 12 per cent GST for under construction homes plus 7 per cent stamp duty was raised by aggrieved home buyers and by the GST expert on the discussion panel.

The extensive seminar deliberations among different stakeholders of the real estate sector, has thrown up a number of suggestions for the Haryana government to follow, in order to ensure the effective implementation of the Real Estate Regulation Act. These suggestions include Plugging loopholes in issuing Occupation Certificates, to check any malpractice in future. The department of Urban Local Bodies should probe all Occupation Certificates, issued between January 1, 2017 and January 1, 2018 to find out all the cases where Occupation Certificates were issued in fraudulent manner. Steps should be taken to strictly enforce RERA provisions to ensure that property is sold only on carpet area basis, maintaining transparency and fairplay in transactions. Sympathetic consideration should be given to those cases of refund where home buyer is not in a position to give further EMIs. Haryana Real Estate Authority, Gurugram should meet the 60-day timeline in resolving cases, as prescribed under RERA. And if need be, it should hear cases for four days in a week (on the lines of Noida RERA) against the present practice of hearing cases for 3 days in a week. Adjudicating Officer should be appointed in HRERA, Gurugram at the earliest to dispose off cases for compensation.Real Estate Appellate Tribunal should be set up in HRERA , Gurugram to take up appeals against the decision of Authority. With regard to completion of stalled housing projects, the development agencies of Haryana like HUDA, HSIIDC, Housing Board should be involved, besides roping in financially sound developers and industry bodies. HRERA, Gurugram should devise an effective monitoring mechanism regarding cases of structural defects and poor workmanship of delivered projects. The State Government (Haryana GST Authority) should take up the issue of rationalizing high GST rate (12 percent for standard housing and 8 percent for affordable housing) with the Central GST Authority to bring down the exceptionally high transaction cost that includes about 7 percent of stamp duty. This is crucial to provide boost to Haryana Government’s Affordable Housing and to realize Prime Minister Shri Narendra Modi’s flagship mission of ‘Housing for All by 2022’.

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September 2018 OBSERVER DAWN

OUTLOOK

Road Ahead For Real Estate Reforms

hough landmark regulatory reforms of RERA, GST and Demonetization have brought in much needed transparency and fair play in transactions, contributing to the freedom of real estate from frauds, malpractices and other serious problems, faced earlier by property consumers and investors, yet, the sector needs more reform measures to break it free from various ills that still plague it, in order to realize its full potential as a major contributor to country's GDP. The reform - oriented Modi government, which is fine tuning and reinforcing the reforms undertaken by it to increase their on- ground efficacy, besides planning new reforms, has a cut out task to free real estate from high transaction costs, especially to achieve the success of its flagship mission of 'Housing for All'. Though the interest subsidy scheme (CLSS) under Pradhan Mantri Awas Yojana (PMAY) has proved to be a big booster for first time home buyers in the EWS, LIG and MIG category, yet high transaction cost is a deterrent to home ownership. Currently, apart from GST, stamp duty and registration costs act as a dampener. There is average stamp duty of 6 percent and it is not uniform and in some states it is much higher. Further, in many cities, there is anomaly of collector rates of property being higher than the market rates. And as such, home buyers end up paying more stamp duty and registration fee. The home buyers need to be given freedom from high transaction cost to boost home sales and revive residential real estate, facing slowdown for long. And this can be achieved by either rationalizing stamp duty or simply subsuming stamp duty in GST. Similarly, while GST has furthered ease of doing business by doing away with multiple taxation, yet, there is a need to lower 12 per-

OBSERVER DAWN September 2018

cent rate of GST, which is almost double than the VAT and Service tax prevalent in pre- GST era, especially when Input Tax Credit provided by the government is not having desired effect. Further, high GST on cement should be brought down like in the case of paints, to ring down the cost of homes . Home buyers also need freedom from the double burden of rent and EMI, particularly as hundreds of thousands of housing projects across the country are facing long delays. Earlier, the home buyers would get possession of their homes in 3-4 years but now in many cases, it has almost doubled, causing great hardships to home buyers in terms of dual burden of rent and EMI. Some developers are helping home buyers tide over this problem by offering schemes to pay EMI only after possession. But ready homes is a sound solution to this problem as they do not have any development risk and moreover home buyers save on 12 percent GST. That's why ready-to-occupy homes are being lapped up by home buyers. Here, the concept of 'Build & sell', can

provide a longterm solution. Under RERA, a developer can not start his project without land and all mandatory permissions in place. Also, there is not only a ban on funding project through customer advances by way of pre- launching of projects but also there is a strict check on (mis)utilising funds collected from customers through the implementation of escrow account mechanism. As such, it makes sense for developers to adopt the model of 'build and sell' which is common in advanced countries.Leading developer DLF has already announced to adopt this model. And if the government organises cheap bank funding at least for developers of affordable housing, many developers will take to 'build and sell',

There is an urgent need to set up Land Titling Authority in states to prepare and maintain digitized registry of all immovable properties to check frauds.

much to the advantage of propert consumers. Redtapism is also proving to be a big bane of real estate as unduly long time taken by authorities in giving construction permits and other multiple sanctions, adds up developers' debt, in turn increasing home cost. And since the sanctioning authorities do not come under the purview of RERA, there is no check on project delays due to unduly long time taken in according project sanctions and giving completion certificates. The ideal solution to this problem is a single window mechanism for project sanctions/clearances. and since this is not happening, the government should fast track the process of online permissions/sanctions and make it time bound. And last but not the least, there should be freedom from defective and fraudulent land/property titles to make property transactions easier and safer. In this regard, there is an urgent need to set up Land Titling Authority in states to prepare and maintain digitized registry of all immovable properties. This, together with introduction of Title Insurance for providing protection against any financial loss due to title deficiencies, will considerably help in enforcement of contracts and prevent property deals from falling through, thereby effectively checking high litigation due to property ownership disputes. The transparency brought in by this will further boost the confidence of foreign investors, thereby helping in putting foreign investment in Indian real estate on fast track. n

Vinod Behl

September 2018 OBSERVER DAWN

GUEST ARTICLE

Future of Work Strategist Gig Economy Professionals- A New Breed of Associates For Organizational Effectiveness

he Gig Economy, an economic envi- developers, and computer programmers), Construcronment in which temporary position and extraction (Carpenters, painters, and other tions are common and organizations construction workers) Media and communications contract with independent workers (technical writers, interpreters and translators, phofor short-term engagements. Workers tographers) Transportation and material moving get access to individual â&#x20AC;&#x2DC;gigsâ&#x20AC;&#x2122; tempo- (Ridesharing, delivery drivers). rary work contracts using a website or mobile app Gig Economy is not just a fad, it is going to remain that helps to match them with customersâ&#x20AC;&#x2122; require- in the system for long. With the increase in opportunities, many profesments. sionals especially those Freelance workers who can work remotely can select from and are in the areas among temporary which a company rejobs and projects quires on a regular basis around the world, but not as frequent to while employers make it a full-time posican select the best tion. individuals for speGig economy profescific projects from a sionals who are taking larger pool than the plunge into the freethat available in any lance domain may be given area. Some doing out of their will gigs may be very but many may be doing brief, such as anit because they need swering a 5-minute extra bucks or they are survey, while others in transition. can be over a year, However, if someone like an 18-month wants to make a career database managein the Gig Economy ment project. space, they need to unGig economy can Ajay Sharma derstand some basics of improve work-life Future of Work Strategist, Founder this on-demand econbalance over what is omy concept before possible in most jobs. The model is powered by independent workers jumping into this. Five Ways to know your readiselecting jobs that they're interested in, rather than ness for being Gig Economy Professional one in which workers are forced into taking up as- 1. What is your career orientation: Are you intersignments. The most popular jobs in the gig econested in more degree of freedom or you like a omy are: Arts and design (musicians, graphic structured approach to doing work under the designers, and craft and fine artists) Computer and pre-initiated instructions. many professionals information technology (Web developers, software like to work with higher freedom and want to

OBSERVER DAWN September 2018

maintain good work-life balance or rather keeping control over their amount of work and managing other parts of their life. 2. Locus of Control: Who controls you? Are you a self-disciplined person or you need external factors/persons to manage you. Being Gig Economy Professional you need to have a high degree of "Self Discipline" as you are now your own Boss. 3. Multi-tasking: Being a solopreneur, you need to be "Jack of All Trades". You may not have support from other team members, so you need to do many things together. 4. A higher level of Tenacity: All the days will not be the same, sometimes it may be a windfall, but there will be rainy days. Are you a person who can withstand the pressure when work is not coming in an adequate manner? Do you have the patience to wait for some good clients, in-

stead of jumping here & there to get a job? Do you have "Never say die" attitude? If you are like this then you can opt for this as a career. 5. An Open Mind: Customer is a king and any feedback coming from them needs to be taken in a constructive manner. It may not be always positive feedback but having an open mind to evaluate feedback and working on them so that you don't repeat them will help you become successful Gig Economy Professional. If you need help to understand how to be in the race of Gig Economy for long, you can approach FlexiOrg to get professional mentorship. FlexiOrg also has a complete ecosystem for supporting Gig Economy Professional/Freelancers for their sustenance and growth. To know more Visit www. flexiorg.com/ talent and enjoy a successful career in gig economy

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September 2018 OBSERVER DAWN

TRENDS

GOWORK

WORLD’S LARGEST CO-COLLABORATIVE CO-WORKING CAMPUS

oWork is World’s largest co-collaborative co-working space sprawled over 8 lakh square feet with a capacity of 12,000 seats across its two offices in Gurugram. Founded in June, 2017, GoWork is the vision evangelized by Sudeep Singh (Chief Evangelist and Cofounder. GoWork has raised first round of funding from a family fund Nimitaya Group as a part of its initial

OBSERVER DAWN September 2018

funding. GoWork’s campuses have been built with an investment of INR 800 Crores. The campus, apart from being the first-of-its-kind Technology Oriented Largest Collaborative Campus in partnership with Spectra, it is also a LEED Certified Platinum rated Green Building Campus. Its interiors are aesthetically designed and decorated, keeping in mind mobility as well as efficiency. It also aims to meet the social and familial needs of its employees and plans to provide a crèche facility soon to encourage female entrepre-

neurs. Its current clientele includes companies like Zomato, Paytm, FlyingFur, Impactify, Lifelong, Fixoo, etc. GoWork has several packages for its members like Day Tripper (at Rs. 350 per day), Tourist (at Rs. 3,750 for ten days), Resident (at Rs. 6,500 for a month), Citizen (an exclusive membership, at a price of Rs. 8,250), Minister (one’s personal space at a price of Rs. 10,000) and Virtual Office (at Rs. 2,500). From dedicated 1000 seater collaborative work environs for quick and optimized teamwork to ‘meditation’ and’ frustration’ zones for those office blues, GoWork ensures that it gives significant focus to the individuals as well as the work. Other features of GoWork’s spaces are:• Asia’s first Collaborative campus to have internet speeds up to 1 GHZ in partnership with Spectra • GoWork is a pet friendly campus and offers pet care facility for all its clients • Event area for more than 5000 people • Campus to include Café, Gym, Spa, Food Court, Frustration Zone, Brewery, Crèche, Urban sleeping pods with TVs, Gaming Zone, Basket Ball and Badminton Courts, • VC / Investor zone-• Shuttle service to last mile metro station • 10 Minutes from the International Airport

• Car Parking for over 500 cars at each facility • Enabled with productivity tools like interactive touch screens, Facebook pass, travel-desk, concierge etc. • Multiple ‘breakout zones’ for better productivity GoWork’s efficient services have allowed businesses to maximize productivity while increasing operational efficiency, collaborations and impromptu networking sessions for collaborative development and reduction of capital expenditure of 10-15% by businesses. Furthermore, its frequent start-up mentoring events and sessions in the campus with global business thought leaders and mentors allow the entrepreneurs and various other stakeholders to truly develop a global perspective while retaining a uniquely Indian style of working, a rare combination that is the need of the hour for Indian start-ups to rule the global business ecosphere. GoWork’s first facility located at 183 which is also incidentally the largest co-working space in the world with an area of 4.5 lakh square feet and a capacity to seat 7000 people. Located just a 100 meters away from it is GoWork’s second unit located at 108; with a seating capacity of 5000 people and an area of 3.5 lakh square feet, the campus is the second largest co-working space in the world. Website: http://www.goworkindia.com/ nnn

September 2018 OBSERVER DAWN

BOOK LAUNCH

Union Minister Hardeep Puri launches book on WTO

nion Minister of State for Housing and Urban Affairs, Hardeep Singh Puri, launched a book titled “Negotiation Dynamics of the WTO, An Insider’s Account” (published by Palgrave Macmillan), written by Dr Mohan Kumar, Professor and Vice Dean of the Jindal School of International Affairs, O.P. Jindal Global University (JGU) at India International Centre in New Delhi. On this occasion, Puri pointed out that trade strategies of countries evolve as their economic structures change. He gave the example of an earlier era when the USA was pressing to include services trade in the WTO agenda while India negotiated along with Brazil, South Africa and others to dilute it. But the situation today is entirely different. “India is a $2.7 trillion economy. At least 50 per cent of our GDP is in the external sector and that includes the value of goods and services. 57 percent of our GDP now is contributed by services. So, we have an interest in taking service sector trade reforms forward today”, he stated. Puri, a former IFS officer, added: “Dr Mohan Kumar’ book should be read by both trade negotiators and those who have the desire to understand the multilateral trade system anchored in the WTO, its history, how GATT evolved into the WTO, and also by those who have an interest to know why the WTO is stalemated”. He further stated that the book clearly carries a viewpoint of a developing country negotiator. “This book helps to trace the history of our WTO negotiations. This is an extraordinary book and has the technical expertise and the view of an insider (Dr Mohan

Kumar) who participated in the WTO negotiations. The book contains a great deal of learning for diplomats and trade policy officials of developing countries”, concluded. Dr Mohan Kumar explained that his book has three central takeaways. “It was a great privilege to witness three conferences of WTO where things happened. I have tried to be a WTO historian, you can’t change facts,’ he stated. Professor (Dr) C. Raj Kumar, Founding Vice-Chancellor, JGU, said that his University is privileged to have three former diplomats, including Dr Kumar, as Professors. The book launch event also featured a panel discussion moderated by Dr. Sreeram Chaulia, Dean, Jindal School of International Affairs. Panelists included Mr Rajeev Kher, former Commerce Secretary, Mr Jayant Dasgupta, former Indian Ambassador to WTO, Dr. Abhijit Das, Head of the Centre for WTO Studies at IIFT, and Professor Jayati Ghosh, Jawaharlal Nehru University. The panel debated issues like power play and conflicts between major powers and developing countries in the WTO, India’s role as a spokesperson of poorer nations in trade negotiations, and the threats of protectionism and mercantilism coming from the US and other rich countries which are weakening the multilateral trading system and perpetuating unfair outcomes. The book aims at informing and educating the public at large about the intricacies of the negotiations dynamics at the WTO. It traces the period from the launch of the Uruguay Round in 1986 to its conclusion at Marrakesh (Morocco) in 1994 and the subsequent entry into force of the WTO on January 1, 1995. The book demonstrates how WTO Ministerial Conference in Seattle (U.S) was doomed to fail and its failure led to trust deficit between the developed countries and certain key developing and least developed countries. The book throws light on India’s domestic decision making structure as well as some of the factors driving India’s negotiating stance at the WTO. It also describes the current impasse at the WTO and offers some ideas to revive an institution that is so crucial for the smooth functioning of the multilateral trading system.

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OBSERVER DAWN September 2018

RNI Reg. No. DELENG/2013/50357