Chennai Economy thread

[Ramakrishnan Sitaram]

Karkal, very valid question... If idiots in Kudankulam are effectively thrashed, we should be better off in providing needed energy to remaining 80% as well.

[madrasi7777]

Our govt has a habit of capitulating to any protests.Let it be for the good or for the bad. What must be remembered it that the over all benefits must out weigh the harm.

India now needs energy which must be cheap and clean. Only nuclear or atomic energy can solve the problem as of now. Every technology has its own risks.If developed countires like the USA, Germany and France are doing it we must do it.

If the protesters cannot understand this then they must be put in there place.They cannot black mail our economy to submission.

[dkravind]

Originally Posted by madrasi7777

Our govt has a habit of capitulating to any protests.Let it be for the good or for the bad. What must be remembered it that the over all benefits must out weigh the harm.

India now needs energy which must be cheap and clean. Only nuclear or atomic energy can solve the problem as of now. Every technology has its own risks.If developed countires like the USA, Germany and France are doing it we must do it.

If the protesters cannot understand this then they must be put in there place.They cannot black mail our economy to submission.

Here is where our local politics ( jaya vs centre ) is coming in .... Despite repeated requests from the PM thru written letters asking for support from her for this Rs . 13000crore megaproject (the largest nuclear project currently on in the country) jaya has not done anything to pacify the people

[anekho]

Seiko to expand in India for growth

Chennai-based TI Cycles of India, best known for its BSA and Hercules branded bikes, is setting up a manufacturing facility in Chennai to locally manufacture and sell high-end alloy steel and carbon frame bicycles of leading foreign brands such as Cannondale, Bianchi and Schwinn. TI Cycles, which represents these foreign brands in India may look at import substitution.

Local manufacturing will help the Murugappa group company avoid payment of expensive import duties and leverage a lower cost production base thereby cutting the prices at which these bikes are sold in India.

“We’re investing in a design and manufacturing unit to tap export markets such as the US. By the middle of the next fiscal year, we should have a five lakh cycles per annum plant near Chennai operational as we have done all the pilots to scale up our steel alloy and carbon frame bikes,” said D Raghuram, president of TI Cycles. This facility will help the company tap high value exports and also boost its capability to manufacture international standard carbon frame bikes under its own Montra brand in India. “We will also supply bikes manufactured from this facility to the international brands we sell in India,” he said.

At present, the imported bikes are sold anywhere between Rs 71,000 to Rs 1,86,000 each. TI Cycles imports and sells mountain, road and hybrid bikes of international brands such as Cannondale, Bianchi and Schwinn — known for their designs, comfort and ease of riding, in addition to BMX and MTB cycles from GT and Mongoose for adventure lovers. “So far, we did not have the requisite technology for high strength, low weight alloy and carbon frames. But we have been assimilating this technology and assembling a team over the past 2.5 years to design these world class bikes,” said Raghuram.The company has also set up a network of 200 exclusive stores near residential areas to improve availability of bicycles. The new stores boast a smart look and an enhanced product range to entice customers and improve the purchase experience. BSA Hercules Exclusive Stores stock the Hercules, BSA & Montra brands.

Source

[karkal]

CHENNAI: The Corporation of Chennai failed to meet its property tax collection targets in the last two financial years and, at the rate it is going, it is likely to fall well short this year too. The shortage in tax collection has slowed down or forced the civic body to reconsider various projects.

Corporation officials admit that certain proposals, like the Rs 15-crore 15-kmlong cycle track in and around Anna Nagar, have been shelved because of a financial crunch. Among the biggest defaulters, say officials, is the state itself. It has not paid tax for the new 9.3 lakh sqft secretariat building, which the current government proposes to turn into a hospital, on the Omandurar Estate.

With just eight weeks left for the fiscal to end, corporation officials say they have only achieved 40% of the targeted property tax collection. Of the target of Rs 558 crore for the year, only Rs 227 crore had been collected till Monday. Officials said the recent local body election was one reason the tax collection had been low this year.

"Many corporation officials were involved in the local body elections and that affected tax collection," a corporation official said. Property tax is the main income of the civic body.

Corporation officials said many people were using residential properties for commercial purposes. "Many property owners are also misusing the rebate of 25% guaranteed by the Chennai City Municipal Corporation Act, 1919, for owner-occupied buildings," an official said. "Tax assessors are made to believe that the tenants are relatives and the dwelling units are not rented out."

Lack of assessors in the city municipal limits is also contributing to the problem. There are only 86 tax assessors to cover the 15 zones of the corporation.

After general survey of property tax in 1993-1994, levies were fixed between 60 paise and Rs 2.40 per sqft for residential properties ranging and between Rs 4 and Rs 12for commercial properties, depending on the location. The corporation has not hiked property tax since then and many property owners take advantage of the difference in rates.

[ranga]

Property tax not revised since 93=94 that is for the past 17 years?No wonder the budgeted tax amount is so low for the size of a city like chennai and even that is not collected.What happened to the so called tamil brain,efficiency bla bla bla?

[karkal]

IT shop'la adagu vechittom.

[karkal]

Relief for ECR, OMR residents

http://www.deccanchronicle.com/chann...-residents-405

Property owners along East Coast Road (ECR) and in the IT corridor of Old Mahaba-lipuram Road (OMR), who were awaiting a revised property tax demand from Chennai Corporation after the recent city expansion, can relax for now.

The civic body, focused on improving infrastructure and sanitation in suburbs, has deferred revision of property tax by a few months.

“As many as 42 adjacent local bodies were merged into the city corporation to form Greater Chennai. When the infrastructure is provided, the corporation will think about the revenue aspect. Currently, there are no thoughts of revising taxes,” commissioner P.W.C. Davidar said.

There are several mud roads without connectivity and basic amenities and the primary focus is to improve the quality of infrastructure in these areas, the commissioner said, exuding confidence that solid waste management would improve the situation in suburbs.

Meanwhile, sources said the civic body might consider revising property tax by next year. There are arrears running into several crores and intensified tax collection would start soon. Sources also said the corporation, which is facing a financial crunch, would not have many freebie schemes.

[karkal]

Excise, sales tax doubles to Rs 12K cr

http://www.deccanchronicle.com/chann...-rs-12k-cr-396

The central excise and sales tax generated in Chennai has doubled over the past four years from about Rs 6,000 crore to Rs 12,000 crore, said Mr Naresh Penumaka, commissioner of Central Excise and Service Tax.

The commissioner, while addressing a press conference here on Thursday, also said that two officials in his commissionerate had been chosen for the prestigious President’s Award.

City-based central Excise Inspector Mr K.P. Balaji attached to the Chennai large taxpayer unit, who recently detected tax evasion to a tune of Rs 79 crore was one of the awardees and the other recipient was trade facilitation superintendent Ms N. Uma Shanthi who, through her technical knowledge, had reduced the usage of manpower, he said.

The commissioner said that after automation and implementation of exclusive audit systems by his team, the Chennai office was able to reduce the requirement for about 300 staff.

With several IT firms growing in Hyderabad and Chennai, the revenue through central excise, service tax and income tax will further enhance from next fiscal, the commissioner said.

He added that the city’s growth in automobiles and the IT sector was visible and said that with the expansion of Hyundai and Ford units in city, the department would get more revenue from auto majors and other industries.

Mr Penumaka also pointed out that the large tax unit had dispatched refunds of about `1,000 crore last year to taxpayers.

[Leo_r]

accrual to Central Govt. No use to the State. TN as a Colony pays around Rs 90.000 crores per annum (Central Excise,Customs duty ,Income Tax and Service Tax)to CG and keeps begging for doles.

Pl recall Kattabomman's dialogue.

[kongutamizhan]

true apply that logic within state context too

[vinodgopal]

inga konji vilayadum yen kula pengalukku fair and lovely kuduthaiya nu dialogue a mathi remake pannuvoma andha padatha?

[murlee]

COMMERCIAL QUOTIENT
While the city’s IT/ITES sector has taken a hit, experts have projected a retail boom. PREETI SURYA does a check on what’s in store for the city’s commercial market...

The dynamics of commercial spaces in Chennai is undergoing a change. For a city that has not seen a radical growth in terms of commercial rentals in the past five years, the shift may signify an emerging trend in the city’s real estate landscape. The volume of office space demand by IT/ITES companies may shrink in the times to come, impacting the commercial rentals in different locations of the city. Says Prakash Challa, managing director, SSPDL Group: "The absorption of office spaces by the IT sector is beginning to taper and restrict itself to SEZs. On the other hand, non-IT requirements are drastically up. The demand is coming from engineering-led companies, educational institutions, hospitals and the retail segment."

According to Cushman and Wakefield, the IT/ITES sector accounted for 67% of total absorption of office space in Chennai in 2011 and a majority of the space taken up by the sector is in the suburban markets of Perungudi, Taramani and Manpakkam. Listing out the key contributors to the demand for office spaces in the city during 2011, N Hariharan, Chennai Director, Cushman and Wakefield, says, "Several industries including IT/ITES, banking, financial service and insurance (BFSI), manufacturing and construction contributed towards the spurt in demand for commercial spaces."

Market observers feel that the rentals for IT-driven office spaces grew by 5% to 8% in the last financial year. Rentals around OMR and Guindy remained stable at 50-55 sq ft per month. The areas to have posted a marginal growth in commercial rentals are stretches along Ambattur.

"The situation is bad in OMR. There are not many takers for office spaces except in the earlier part of OMR. Ascendas is commanding premium over Tidel Park," explains Ajit Chordia, CEO, Khivraj Tech Park, reiterating that IT-led demand for office space is on the ebb.

FUTURE HOTSPOTS

IT/ITES related trend, however, is not indicative of the overall market sentiment. Corporate entities posting even marginal growth are looking at expansion but supply crunch within the city restricts their choices. The micromarket from Tidel Park to toll gate continues to attract occupants. Office spaces in MRC Nagar, Guindy Industrial Estate, 100 ft road, stretches along Raj Bhavan, Velachery and Greams Road are in demand. "CBD leads the tally of hot office destinations, followed by OMR and GST SEZ corridor," says Challa, adding that there is lack of A Grade space within the city. CBD posted a maximum of 10% growth in rentals and is currently drawing 80 per sq ft per month.

Connectivity and availability of parking space are the two deciding factors when it comes to rental values of office spaces. "The later parts of OMR and Ambattur have a long way to go. Infrastructure makes or mars the prospects of the office space. MRTS connect to Ambattur is missing. This impacts the rental values in the area," explains Chordia.

According to Cushman and Wakefield, office spaces in CBD and off-CBD locations have registered the maximum growth in rental values during 2011 followed by the suburban Guindy market. "The appreciation in CBD and off-CBD rentals can be attributed to the limited availability of Grade A space," says Hariharan, adding that the two office markets are likely to remain most expensive office destinations in Chennai. Going forward, however, suburban markets of Taramani, Perungudi and Guindy will command higher rentals in the next five years.

BOOM OR NO BOOM

The other significant component of commercial space dynamics is mall/retail space. Chennai currently has around 2.89 million square feet (msf) of operational mall space. Fresh supply of around 0.49 msf of mall space was registered in 2011 taking overall vacancy in mall space during the fourth quarter of 2011 to 6.60%. According to Cushman and Wakefield, the mall rentals during the year were impacted by subdued market sentiments. When compared to NCR and Bangalore, the mall penetration index (number of malls per million populations) is lowest in Chennai. While NCR scores with 2.08, Bangalore is slightly better at 2.76 on the scale. As against this, Chennai has 0.54 mall penetration.

Spelling out the intricacies of mall space rentals, Hariharan says, "The success of a mall is primarily determined by zoning and pricing strategies. Malls in CBD locations have consistently witnessed low vacancy levels and are successfully drawing footfalls. However, it might be too early to determine the success of the malls in suburban locations, with several malls in these markets yet to become operational."

Says Chordia: "The city has a huge requirement for retail spaces. Even if it doubles or triples the retail space, the supply lag might still be visible. Except for the upcoming Phoenix mall, nothing much is in the offing in the near future."

Malls in CBD locations are quoting maximum rental values of 265 per sq ft per month, followed by those in western suburbs that fetch 230 per sq ft per month. Malls in peripheral Chennai (South) have the least rental value at 200 sq per ft per month.
Says Oscar Braganza, ED, Marg ProperTies: "The old model of citycentric malls is losing its sheen as the working population is moving to suburbs of the city. Junction Mall located on OMR Road is positioned well to leverage both working and residential pockets." Braganza feels Khader Nawaz Khan Road and T Nagar will continue to be the most expensive retail space destinations in Chennai.

Meanwhile, the leasing strategies for retail spaces have evolved due to supply crunch clubbed with the impact of 2008-09 recession. The retail space rentals are now a function of the revenue generated by the retail outlet instead of flat rates. Zoning, traffic management, parking, customer flow or footfalls are some factors that determine retail space rentals. With projects such as Forum Mall in the pipeline, is Chennai poised for retail space boom? Only time will tell.

http://epaper.timesofindia.com/Defau...&ViewMode=HTML

[karkal]

One way to calculate GDP.

http://www.youtube.com/watch?feature...&v=Rgr1vRjxzFg

Example :

http://www.youtube.com/watch?feature...&v=BMNj7-Okclk

Source : Khan Academy

[karkal]

Japanese firms see new sunrise in India

http://www.thehindubusinessline.com/...ue&ref=wl_home

Of late, there has been a massive surge of Japanese business interest in India. Around 200-300 firms from the island nation, including multi-million dollar companies Hitachi Medical and Asahi Beer, are actively looking to set up base in this country.

With an aging population at home and a contracting market, after China, India is seen as the next logical growth area for the Japanese industry, say industry observers.

“Most of the Japanese companies are now interested in the Indian market, because it is a big country and they see a huge potential for the future. Previously, the investment climate was not as good, but now, the Indian Government is trying to relax some policies,” Mr Masaki Ida, Chief Director-General, Japan External Trade Organisation (JETRO), New Delhi, told Business Line.

As of October last year, 812 Japanese firms were in India, with 1,422 separate investments, such as branches, warehouses and factories.
Preference for India

Though most Japanese companies already have Chinese operations, the poor intellectual property protection regime and mandatory joint venture rules make it hard to conduct business there, an industry expert added. Hence the growing preference for India, with which Japan has historically shared close cultural and business relations.

The Indo-Japan Free Trade Agreement that came into effect last August also holds promise. It aims to eliminate import duties on 94 per cent of the trade items in 10 years, giving a boost to bilateral trade which is expected to touch $25 billion by 2015 (from about $12 billion in 2010).

Mr Ravi Avalur, Partner and Vice-President, Tecnova India, said that 2-3 years ago, around 600 Japanese companies had an India operation, which has now more than doubled.
New sectors

Tecnova specialises in India market entry strategy for multinationals and is working with a variety of Japanese firms in this regard.

“There is a sense of renewed business interest from Japan. Till now, sectors such as auto and electronics had Japanese presence, but now, breweries and chemical companies are also looking to set up base. Japanese companies move slow, but come in groups,” he said.

Meanwhile, Japanese funding support for ongoing domestic infrastructure projects such as the Dedicated Freight Corridor (DFC) and $90 billion Delhi-Mumbai Industrial Corridor (DMIC) is viewed as an ideal collaborative opportunity. While Japan's expertise in Railway systems is expected to be utilised in the DFC, firms from the country are also reportedly looking to set up manufacturing facilities in the DMIC.

[kongutamizhan]

Originally Posted by karkal

One way to calculate GDP.

http://www.youtube.com/watch?feature...&v=Rgr1vRjxzFg

Example :

http://www.youtube.com/watch?feature...&v=BMNj7-Okclk

Source : Khan Academy

Khan Academy is an excellent source for math, accounting, and stats. I have repeatedly used / continue to use for academic purpose.

[Indian Sun]

Originally Posted by kongutamizhan

Khan Academy is an excellent source for math, accounting, and stats. I have repeatedly used / continue to use for academic purpose.

+1

[kannan infratech]

Originally Posted by kongutamizhan

Khan Academy is an excellent source for math, accounting, and stats. I have repeatedly used / continue to use for academic purpose.

Very nice initiative and using simple & uncomplicated terms.

wiki & khanacademy are my main sources to clear doubts & understand new ones.

[murlee]

Soon, GIS-based survey of property

With a view to streamline its property tax assessment and collection system, the Chennai Corporation will soon launch a comprehensive field survey of properties in the Adyar Zone using GIS-based property tax information system.

According to sources, the civic body will soon call for tenders to conduct the comprehensive field survey of properties in the Adyar Zone, comprising 13 wards (from 170 to 182) to implement the technology-enabled system.

The work covering about one lakh property tax assessees in the zone would be completed in three months, sources said. Adyar Zone has been identified for the pilot project as it has the largest number of property tax assessees among the civic body’s 15 zones. After completion of the survey work in this residential zone, the civic body will implement the system in all 15 zones, in a phased manner.

As part of the project, officials of the civic body studied similar GIS-based systems adopted in 15 different corporations in the country to identify the different types of technical problems faced by such civic bodies during implementation.

The data collected by digital mapping from the National Remote Sensing Centre, an important segment of ISRO, would be used for the implementation of the system. Data pertaining to property tax number, patta, power and water supply about the assesse would also be included in the system.

Once the system is implemented in the entire Corporation limits, all new applications seeking building approvals would be registered with the system and cases under assessment of property would be detected easily, sources said.

http://ibnlive.in.com/news/soon-gisb...71-60-120.html

[murlee]

Crossposting from Kolkata Economy and Real Estate Thread

Chennai on the other hand a good year for Office Spaces rentals with most of its location recording growth in rental values ranging between 7% - 9% over the previous year. This was on account of the market seeing some robust activities in the first half of 2011. Chennai provides for a distinct advantage as against others of having quality supply whist remaining cost effective.

http://www.moneycontrol.com/news/rea...cw_671569.html