Final

Integrated Township Planning
2011
21/03/2011
Project Report On
“INTEGRATED TOWNSHIP PLANNING”
Ammaar Shaikh
2009A63
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SYMBIOSIS CENTRE FOR MANAGEMENT & HUMAN RESOURCE

DEVELOPMENT
[Constituent of SYMBIOSIS INTERNATIONAL UNIVERSITY (SIU)]
MBA 2009-11 Batch
Sem IV Project
Project Charter
Roll Nr . Full Name
2009A63 Ammaar Shaikh
Subject/Topic for the project (2 to 4 lines):
Project Report on Integrated Township Planning
Research Objective (3 to 5 lines):
To prepare a comprehensive analysis of the different aspects involved in integrated township

planning.
Deliverables of the project (Not more than 5):
Following are the aspects that will be covered in the project
- Township Planning
- Legal aspects
- Environmental aspects
- Infrastructure Aspect
- Land acquisition for township
Remarks by Dr.Patwardhan/Prof Date:
Approved/Rework/Not approved:
Signature: Name:
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Table of Contents
Acknowledgment ...................................................................................................................4
Preface....................................................................................................................................5
Executive Summary.................................................................................................................6
Objectives of report................................................................................................................8
Part 1-External factors/issues of Integrated Township
Chapter 1-Introduction........................................................................................................9
Chapter 2-Merits/Demerits of Integrated Township..............................................................
Chapter 3-Financing Integrated township..........................................................................16
3.1-Domestic Financing options
3.2-Foreign Financing options
Chapter 4-Government Role..............................................................................................22

Chapter 5-Foreign Direct Investments(role) ......................................................................24
5.1-Eligibility Criteria for investment
5.2-FDI policy
5.3-Procedure for government approval
5.4-Conditions for IT Development
5.5-Merits/Demerits of FDI
Chapter 6-Challenges........................................................................................................35
6.1-Muncipal compliances
6.2-Legal compliances
6.3-Financial risk
Part 2-Internal factors/issues Of Integrated Township

Chapter 7-Township Planning ..........................................................................................38
7.1-Criteria
7.2-Township Planning Norms
7.3-Development procedure
Chapter 8-Legal Issues /Policies.........................................................................................44

8.1-General norms
8.2-Policies for IT
8.3-Development Concessions
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8.4-Development Control Regulations
Chapter 9-Environmental Issues.......................................................................................55

Chapter 10- Infrastructure aspect.....................................................................................58
Chapter 11-Land Acquisition.............................................................................................61
11.1- Procedure for Land Acquisition
11.2- Determination of Market Value of land
Chapter12-Case Study-Magarpatta City...................................................................69

Part 3-Conclusions
Chapter 13-Comprehensive Analysis................................................................................73
12.1-Need for Integrated Township
12.2-Current Scenario of
12.3-Trend Analysis of IT
12.4-Impact of Green Channel procedures
12.5-Issues/Changes Required In IT Development
12.6-Government Policies & Implications
12.7-FDI Impact on IT Development
12.8-Environmental Clearance conclusion
12.9-Infrastructural need
Bibliography
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Acknowledgement
Whatever we do, there is someone who helps us to achieve our goals, complete
our targets or simply inspire us. This project too has been the result of many
such inspirations, a lot of support and helps from my guides.
“THANKS” is not a word enough to express my gratitude or appreciation to
them. But still I can do without saying that word over and over again.
I take immense pleasure in completing this project and submitting the final
research report. It has been full of learning.
During the actual project work, Prof.Vivek Date & Prof .Prakash Waknis has
been the source of inspiration through their constant guidance; personal
interest; encouragement and help. I convey my sincere thanks to them. In spite
of their busy schedule they always found time to guide me through the project.
I am also grateful to them for reposing confidence in my abilities and giving me
the freedom to work on my project.
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Preface
The report provides details of different aspects involved in integrated township

planning .It provides information regarding the terms and conditions for
township developments and real estate. The special township policy provides
the policies which are necessary for township development .Financing structure
for different projects as per the requirements are mentioned Different routes of
financing like Commercial banks , PSU ,Foreign Direct investments private sector
participation etc are explained.
The report provides the FDI policy of the government in relation to

Infrastructure projects. Further it provides the procedure for obtaining
government approval and the Eligibility criteria for investment in India. The
report helps understand the role of FDI in development of integrated township,
its advantages and disadvantage.
General requirements for development of townships as well as different aspects

such as Legal policies, environmental, infrastructure are provided in detail so as
to get an understanding of different issues involved in development of
integrated township
The report also gives details of Development control regulations as well as

government role and support in relation to development of townships
Land Acquisition being an important aspect in development of integrated

township procedure for land acquisition and determination of market value of
land are well explained.
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Executive summary
The report provides a detail understanding of each dimension involved in

development of an integrated township.
Nowadays looking at the increasing pressure on urban areas in relation to

providing space for living has led to the emergence of integrated township.
There are many factors that are involved which have led to the shift in demand
for townships which is to be a self-contained town having all the modern civic
amenities required by city – dwellers like power, water, roads, garbage
management, hospital, school, parks, swimming pools, recreation centre, gym,
ground for outdoor games, restaurant, hotel, shopping mall, cinema hall,
auditorium, higher learning institute, transport facilities etc it would not
depend on the Government for amenities.
There are external factors and internal factor that play an important role in
development of Integrated Township. The major external factors are the
government role and steps taken to promote development of such townships.
Financing these projects is one of the major concerns .There are several routes
of financing such projects .In India the prime source of finance has been
Commercial Banks. Other financing mechanisms include domestic capital
market; foreign investments; bilateral and multi-lateral financial agencies; and
private sector participation. But after removal of barriers for FDI investment it
has been is one of the most desired routes for developers to raise finance for
their projects.
Foreign Direct Investment (FDI) has been recognized as one of the important
drivers of the economic growth of our country .As per the policies of the
government issued in 2005 which opened up the window for FDI investments in
development of integrated township has played an important role.
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For the developers it necessary to understand the challenges that are faced in
development of integrated township so that necessary steps can be taken to
overcome such difficulties. The major challenges are the legal /municipal
compliance planning, political support, financial risk involved etc.
The report provides a detail analysis of the internal factors involved in

development of integrated township.
Township planning involves the different criteria to be fulfilled for construction

of integrated township and the procedure followed in planning and developing
such townships. It is essential to understand the different township planning
norms.
There are legal issues/norms which are in involved in development of township

which are residential, commercial, educational, amenity Spaces, health
facilities, parks, gardens and play grounds, public utilities, transportation etc
.There are general and special concessions which the developer gets for such
projects. These concessions play an important role as they provide benefit to
the developer by reducing cost and increase profitability /feasibility of the
project.
Environmental issues nowadays play a very important role in any infrastructure

development, so it is necessary to understand and abide by the environmental
clearances for completion of the project .Many projects are stalled due to non
compliance of environmental norms
Land acquisition is a major concern in development of integrated township. It is

by itself a very vast topic but here we have tried to explain it in context of
township building. This has been explained through a case study on Magarpatta
which is an integrated township which has a used a different model for land
acquisition.
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Thus this report provides an in-depth analysis of the different facets of
Integrated Township and highlights the key issues involved.
Objectives
Primary Objective
To provide comprehensive analysis of the different aspects involved in

Integrated Township Planning.
Secondary Objective
The secondary objectives of the project is to understand
• The concept of integrated township Planning

• The Government role in development of integrated township
• FDI role and policies related to financing integrated townships
• Challenges of integrated township development
• Township planning procedures
• Legal issues /policies and its impact
• Environmental clearance and norms for development of township
• Land acquisition Procedures
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Part1-External Factors/Issues OF Integrated Township
1) Introduction
Definitions: Integrated Township means a self-contained township planned

and developed through a licensed developer / firm / company / SPV /
development Company together with work place and places of residence with
all attendant facilities and amenities in such township and in accordance with
these Rules.
An integrated township is a community living platform where the concept of

walk-to-work can be implemented, everything that families needs is in close
proximity from their homes — shopping malls, entertainment options, hotels,
hospitals, schools, offices and what have you.
Integrated townships are usually developed and sold in phases, which is why
one doesn’t need to incur all the expenditure in one go. Everything in an
integrated township needs to be self-sustainable. Many companies across India
are planning such large scale, integrated townships, using IT as their peg.
And it is not only in tier-I cities that developers are equally bullish but also on
tier-II cities, and the reason is availability of land on a larger scale and at a lower
price.
Ideal size and distance from a city

The size of integrated townships can vary from as small as only 40 acres to some
as large as 3,000 acres or more. It all depends on a developer’s ability to buy
land and the rate at which he gets it. Of course, like any other real estate
project, the model works better if land cost is rational.
Also, if the land cost is too high, there might be a situation where the cost of the
end-product might push out middle-class buyers.
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Integrated townships have essentially been housing projects offering a
combination of row houses, villas, bungalows and group housing—all with
essential urban infrastructure and amenities— at differential price points to
consumers. Today, townships have evolved to include all the ancillary facilities
like commercial premises, hotels, recreational and retail services, along with
other amenities. However, there is no standard definition of integrated
townships from a regulatory standpoint.
As per Government definition "Integrated Township includes housing,

commercial premises, hotels, resorts, city and regional level urban
infrastructure facilities such as roads and bridges and mass rapid transit
systems. Development of card and allied infrastructure forms an integrated part
of township development."
In Gurgaon (Haryana), Maharashtra and Bangalore, the minimum area for a

township project is 100 acres. Besides, there are other norms like minimum
road width, percentage of land usage, etc specified by the authorities.
Depending on size, a township project is expected to provide certain social
infrastructure and ancillary facilities as well. For example, all townships must
provide schools and basic medical care facilities, while those above 1,000 acres
in size must provide a college as well.
Most of the township developer had taken loan from certain bank within India
and foreign counties. Foreign Direct Investment (FDI) in India has registered
growth in terms of both FDI flows in India and outflow from India. The FDI
statistics and data are evident of the materialization of India as both a potential
investment market for township construction planning, residential property,
and commercial property, hotel projects, IT Park and investing country. To take
foreign loans there are certain rules and policy to be followed by the developers
through automatic route or approval route.
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India top township city:
Some of the top 10 Integrated Township destination cities in India as per

(Property Samachar- India Real Estate News) These top integrated township
destination cities of India are:
• Bangalore
• Delhi- NCR
• Mumbai
• Lucknow
• Kolkata
• Jaipur
• Chandigarh
• Chennai
• Pune
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Major Townships in Maharashtra
Maharashtra - Township Development
Project Name Project Location Status Name of Developer
Garodia Nagar Ghatkopar East Done Garodia Group
Aamby Valley City Mumbai Done Sahara Infrastructure &

Housing
Sahara City Wardha road, Ongoing Sahara Infrastructure &

Homes Nagpur Housing
Hiranandani Pune Done Hiranandani Developers

Palace Gardens Pvt. Ltd
Veena Samruddhi Mumbai Upcomi Veena Developers

ng
Dwarka Chakan-Talegaon Ongoing Naiknavare Developers

Road, Pune Pvt. Ltd
Yashopuram Pimpri-Chinchwad Done Yash Promoters

Link Road Builders
Yashomangal Pimpri-Chinchwad Done Yash Promoters

Link Road Builders
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2) Merits/Demerits of Integrated Township
a) Merits -A township is self sufficient, they provide good living standard

along with the facilities like shopping malls, cinema hall, schools, hospital,
good connecting roads, restaurants, recreational facilities, etc. In short we
can say you can get everything in the township and no need to travel a long
distance for daily requirements. Along with facilities it also generates jobs
within the area.
• Integrated townships provide solutions to increasing pressure on existing

urban infrastructure and rapid urbanization,
• Townships are help to end the housing shortage, and provide a better
standard of living to all sections of the society. Staying in townships gives
the residents a feeling of living in the countryside, with all the benefits of
the city.
• Advantage to developers-One of the biggest advantages of investing in

townships projects is that the cost of entry is low compared to investing
in the city. Most townships projects are coming up at a distance from the
city core and this gives the developer an advantage of lower land cost.
These are viewed as a low-risk investment due to its diversification and
low entry cost with larger upside potential.
• Townships also offer the prospect of higher appreciation, as these

projects adhere to a pre-set development plan with regard to open
spaces, communal amenities and common areas. This means the overall
value of the location does not take a hit because of unrestricted
developments that may crop up later.
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• Integrated Township has low-risk investment due to its diversification and
low entry cost with larger upside potential and a great place to stay,
excellent infrastructure, and more.
• Employment Generation –It provides a lot of employment to both

unskilled and skilled labor which help to support the economy as a whole.
• In short, Investment in townships, housing, built-up infrastructure and

construction-development projects has lead to generate economic
activity, create new employment opportunities and add to the available
housing stock and built-up infrastructure.
b) Demerits of Integrated townships

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• Securing the required multiple clearances for the project is a major hurdle
in the development of integrated townships due to which it is a major
reason for the developers not to enter into such kind of projects.
• Financing-As the finance required for such projects is very high, raising
finance is expensive due to which this cost is transferred to the customers
who have to pay higher amount for the flats.
• Entry barrier-Integrated Township Development have high entry barriers

due to which there are very few developers who control this segment
leading to monopolistic competition.
• Generally the maintenance cost of such townships is high compared to

single residential apartments which are to be paid by the residents of the
township.
• Such projects sometimes face delays in delivery because of their scale due
to which customers may not get their possession of their flats on the
stipulated time.
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3) Financing Projects
3.1) Domestic Financing Options
a) Commercial Banks, PSUs

Traditionally, in any infrastructure project, especially a large one, the
prime source of finance has been Commercial Banks. These banks finance
the project looking at the creditworthiness of the project and require a
first security over the infrastructure created or the project assets.
However, such loans are expensive and banks are fast approaching their
lending limits. The overall capitalization for public sector banks is also
acting as a constraint for the commercial banks to increase their
infrastructure financing portfolio. In India, the infrastructure focused
Public Sector Undertakings (PSUs), including Infrastructure Development
Finance Company (IDFC), Power Finance Corporation Ltd (PFC) amongst
others, have also played a pivotal role in project finance. These PSUs
could have made a significant contribution in the future as well if not for
their failure in raising resources from the market and inability to
channelize the existing resources. With the rapidly increasing demand for
investment in infrastructure, an urgent need has been long felt to develop
alternative financing mechanisms.
b) Alternative Financing Mechanisms

The primary alternative financing mechanisms include domestic capital
market; foreign investments; bilateral and multi-lateral financial
agencies; and private sector participation. Let us now analyze these
mechanisms.
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• Domestic Capital Market
The corporate bond market is of immense significance for financing
infrastructure development. In India, however, the use of domestic
market funds has been somewhat restricted due to the
underdeveloped domestic capital market. Although RBI has taken
measures over the last decade to strengthen the bond market, the
development of the corporate bond market is far from satisfactory.
The chief problem area is that, in India, corporate bonds have short
maturity period, within five years, whereas the funding requirements
for an infrastructure project is usually for a period of over ten years.
Hence, it is not ideal for funding the long-run requirements of such
projects.
• Foreign Investments
With the integration of the financial markets across the world, an
alternative avenue has opened up for financing the long-term capital
requirements of infrastructure projects. In India, initially, the flow of
foreign funds was primarily in the form of short-term portfolio
investments rather than long-term foreign direct investments. In order
to encourage the flow of foreign funds into the infrastructure sector,
the Finance Ministry has allowed the Foreign Institutional Investors
(FIIs) also to invest in unlisted companies. FIIs can now invest 100
percent of their funds in the infrastructure sector in India. This move is
aimed at helping infrastructure companies as they are not in a position
to list their shares in the initial phase. Further, in a bid to make the
core sector attractive for FDI, automatic clearance for foreign
investment (not requiring the approval of the FIPB) was first
introduced for infrastructure sectors like power and roads. Currently,
100 percent FDI is allowed under automatic route in the infrastructure,
with the only exception of telecom (49 percent).
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• Bilateral and Multilateral Financial Agencies
In the wake of the recent global financial crisis and tightening of the
credit from commercial banks and bond markets, multilateral financial
agencies are emerging as the preferred lenders for infrastructure
developers in India. Institutions such as the World Bank and the Asian
Development Bank (ADB) are protected from the global crisis to an extent
because they raise funds from their member nations and bond markets.
However, companies cannot directly borrow from most bilateral and
multilateral lenders and often have to get proposals cleared from
government departments.
• Private Sector Participation

An increased private sector participation/investment for capital
investment in the infrastructure sector is also critical. The Government
has been trying to harness the private sector's efficiencies in meeting the
infrastructure needs of the country either through fully private ventures
or through public private partnership (PPP). It involves participation of
Central and State Governments along with the private sector. For
achieving this, some regulatory aspects and transparency issues have to
be dealt with.
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3.2) Foreign Funds Financing Option
Two main instruments used to acquire foreign funds for Township

Development: Since the setting up of township in India many builders and
developers had take foreign funds for building township. Foreign funds are
gaining popularity in many of builders and developers in India. In order to get
foreign funds there are two main types of instrument which are to be followed
by builders and developers. The two main instruments are ECB and FDI:
a) ECB (External Commercial Borrowings):External Commercial Borrowings

(ECB) are defined to include commercial bank loans, buyers' credit,
suppliers' credit, securitized instruments such as Floating Rate Notes and
Fixed Rate Bonds etc., credit from official export credit agencies and
commercial borrowings availed from non-resident lenders with minimum
average maturity of 3 years.
Eligible borrowers can raise ECB from internationally recognized sources

such as (i) international banks, (ii) international capital markets, (iii)
multilateral financial institutions (such as IFC, ADB, CDC, etc.,), (iv) export
credit agencies, (v) suppliers of equipment, (vi) foreign collaborators, and
(vii) foreign equity holders (other than erstwhile Overseas Corporate
Bodies).
Indian companies registered under the Companies Act, 1956 are

permitted to raise ECBs up to US $ 500 million from reputed lenders in
any one financial year (April to March). Financial intermediaries like
banks, financial institutions, housing finance companies, NBFCs, Trusts,
Non-Profit making Organizations (NPOs), Proprietorship/Partnership
Concerns and Individuals are not eligible to raise ECBs under automatic
route.
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ECB Policy for the purpose of developing Integrated Township:
Amount and maturity: Corporate can avail of ECB of an additional amount

of USD 250 million with average maturity of more than 10 years under
the approval route, over and above the existing limit of USD 500 million
under the automatic route, during a financial year. Other ECB criteria,
such as end-use, recognized lender, etc. need to be complied with.
Prepayment and call/put options, however, would not be permissible for
such ECB up to a period of 10 years.
The ECB Policy Changes:
• RBI had withdrawn the exemption accorded to the development of

integrated township as a permissible end-use of ECB. It has been decided
to permit corporate engaged in the development of integrated township.
• The ECB Policy was modified in May 2008 to allow the infrastructure
companies to raise up to $100 million from overseas markets at
comparatively lower interest rates.
• The previous limit of USD 20 million for Rupee expenditure for

permissible end-users under the Approval route was hiked to USD 50
million.
• Considering the huge funding requirement in infrastructure sector, the

borrowers in the infrastructure sector were allowed to raise up to USD
500 million per year from previous USD 100 million, under the Approval
Route.
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• The RBI allows ECB in real estate projects involving integrated townships
of 100 acres or more. In real estate projects, a large portion of money is
required for land acquisition, which is classified as working capital. But
end-use restrictions like not allowing ECB money to be used for working
capital will take away its attractiveness.
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4) Government’s role and support.
a) External Infrastructure - Power/Roads/Water-The Government recognizes

that the provision of trunk infrastructure such as access from nearest major
road and bulk supply of drinking water and power are essential for the
facilitating township development. Under this policy, the Government will
establish mechanisms to provide trunk infrastructure in the areas to be
designated in a phased manner for township development. The provision of
infrastructure will be on a cost-plus basis with long term contracts and
minimum consumption criteria. The charges such levied will be know n as
“External Development Charge” (EDC). The maximum period within which the
trunk infrastructure is to be extended, will be determined on the basis of the
Developers’ rating system to be established under this Policy – the higher the
rating of the Developer, the shorter the period.
b) Access road-The Government will provide an access road of adequate width

and construction specifications based on the use and scale of the Township. The
feasibility of the same will be determined as part of the Preliminary Project
Approval process and the detailed proposal for the same will form part of the
Detailed Project Report to be submitted by the Developer. The cost of land
acquisition and construction will be borne by the Developer in part or full on
the basis of the sharing of benefits between the Developer and other users of
the road.
c) Bulk water supply-The Government will provide untreated drinking water of

acceptable quality and in adequate quantity based on the use and scale of the
Township. The cost of a dedicated trunk line from the nearest source/ tapping
point to the Township will be borne by the Developer. The water supplied will
be charged (EDC) on the basis of actual consumption at cost-plus rates. The
agreement for supply will have provisions for minimum and maximum off-take.
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d) Bulk power – electricity and gas-The Government will provide reliable supply
of electricity with adequate capacity for load based on the use and scale of the
Township. The cost of the dedicated electricity mains from the nearest
electricity source to the Township will be borne by the Developer. The
electricity supplied will be charged (EDC) on the basis of actual consumption at
cost-plus rates. The agreement for supply will have provisions for minimum and
maximum off-take.
The supply of gas will be based on location and availability of a gas main in the
vicinity of the Township.
e) Land Procurement Support-The primary responsibility for procurement of

land in adequate quantities corresponding to the proposed use and scale of the
Township is that of the Developer. However, the Government recognizes that
often there remain residual patches of land and offers its support in procuring
these. These may include both private land and government land.
If in the residual land, some Government land is present, the same will be sold
at market rates provided such lands form pockets within the project area, and
not continuous pieces. In the case of Private Lands such residual land will be
assembled through compulsory acquisition, or consent award or by way of
negotiated purchase.
The maximum extent of government support in procurement of land including

purchase of private land and sale of government land to the Developer will be
determined on a case to case basis on the basis of the importance of the
Township from the point of view of the Government’s public policy objectives
as well as the rating of the Developer.
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5) FDI (Foreign Direct Investment):
The simplest explanation of FDI would be a direct investment by a corporation

in a commercial venture in another country. A key to separating this action from
involvement in other ventures in a foreign country is that the business
enterprise operates completely outside the economy of the corporation’s home
country.
The definition of FDI originally meant that the investing corporation gained a
significant number of shares (10 percent or more) of the new venture. In recent
years, however, companies have been able to make a foreign direct investment
that is actually long-term management control as opposed to direct investment
in buildings and equipment.
Foreign Direct Investment (FDI) has been recognized as one of the important
drivers of the economic growth of our country. Government has, therefore,
been making all efforts to invite and facilitate FDI and investment from Non
Resident [NRIs- which also includes Persons of Indian Origin (PIO)] to
complement and supplement domestic investment.
Foreign Direct Investment in India is allowed through four basic routes namely,
a) Financial collaborations,
b) Technical collaborations
c) Joint ventures,
d) Capital markets via Euro issues, and private placements or preferential
allotments.
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5.1) Eligibility for Investment in India:
• A person resident outside India (other than a citizen of Pakistan) or an

entity incorporated outside India, (other than an entity incorporated in
Pakistan) can invest in India, subject to the FDI Policy of the Government
of India.
• A person who is a citizen of Bangladesh or an entity incorporated in

Bangladesh can invest in India under the FDI Scheme, with the prior
approval of the FIPB.
• Overseas Corporate Body. OCBs have been de-recognized as a class of

investors in India with effect from September 16, 2003. Erstwhile OCBs
which are incorporated outside India and are not under adverse notice of
Reserve Bank can make fresh investments under the FDI Scheme as
incorporated non-resident entities, with the prior approval of
Government of India if the investment is through Government Route; and
with the prior approval of Reserve Bank if the investment is through
Automatic Route.
• Prohibition on investment in India: Foreign investment in any form is

prohibited in a company or a partnership firm or a proprietary concern or
any entity, whether incorporated or not (such as, Trusts) which is
engaged or proposes to engage in the following activities:
It is clarified that “real estate business” does not include development of

townships, construction of residential / commercial premises, roads or
bridges educational institutions, recreational facilities, city and regional
level infrastructure, townships. It is further clarified that partnership
firms /proprietorship concerns having investments as per FEMA
regulations are not allowed to engage in print Media sector.
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5.2) FDI Policy:
Foreign direct investment is freely allowed in all sectors including the services
sector, except a few sectors where the existing and notified sectoral policy does
not permit FDI beyond a ceiling. FDI for virtually all items/activities can be
brought in through the Automatic route under powers delegated to the Reserve
Bank of India (RBI), and for the remaining items/activities through Government
approval. Government approvals are accorded on the recommendation of the
Foreign Investment Promotion Board (FIPB).
Policy for Automatic route:
a) New Ventures-All items/activities for FDI/NRI investment up to 100%

fall under the Automatic route except the following:
• All proposals that require an Industrial License which includes: The

item requiring an Industrial License under the Industries
(Development & Regulation) Act, 1951;Foreign investment being
more than 24 per cent in the equity capital of units manufacturing
items reserved for small scale industries; and All items which
require an Industrial License in terms of the location policy notified
by Government under the New Industrial Policy of 1991.
• All proposals in which the foreign collaborator has a

previous/existing venture/tie up in India in the same or allied field.
All proposals relating to acquisition of shares in an existing Indian
company by a foreign/NRI investor. All proposals falling outside
notified sectoral policy/caps or under sectors in which FDI is not
permitted.
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• RBI has granted general permission under Foreign Exchange
Management Act (FEMA) in respect of proposals approved by the
Government. Indian companies getting foreign investment
approval through FIPB route do not require any further clearance
from RBI for the purpose of receiving inward remittance and issue
of shares to the foreign investors
• For inward remittance and issue of shares to NRI up to 100 per cent
equity also, prior permission of RBI is not required. These
companies have to file the required documents with the concerned
Regional offices of RBI within 30 days after the issue of shares to
NRIs.
b) Existing Companies
Besides new companies, automatic route for FDI/NRI investment is also
available to the existing companies proposing to induct foreign equity.
For existing companies with an expansion programme, the additional
requirements are that:
• Increase in equity level must result from the expansion of the

equity base of the existing company without the acquisition of
existing shares by NRI/foreign investors.
• Money to be remitted should be in foreign currency.
• Proposed expansion programme should be in the sector(s) under
automatic route. Otherwise, the proposal would need Government
approval through the FIPB. For this the proposal must be supported
by a Board Resolution of the existing Indian company.
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5.3) Policy for Government Approval:
All activities which are not covered under the automatic routes cited
above. Government approvals for FDI/NRI through the FIPB (Foreign
Investment Promotion Board) shall be necessary. Any change in sectoral
policy/sectoral equity cap is notified from time to time by the Secretariat
for Industrial Assistance (SIA) in the Department of Industrial Policy &
Promotion.
For greater transparency in the approval process, Government has

announced guidelines for consideration of FDI proposals by the FIPB.
a) Procedure for obtaining Government Approval:
• All proposals for foreign investment requiring Government approval are

considered for approval by the Foreign Investment Promotion Board
(FIPB). The FIPB also grants composite approvals involving foreign
investment/foreign technical collaboration.
• For seeking the approval applications in form FC-IL for FDI other than NRI
Investments and 100% EOU should be submitted to the Department of
Economic Affairs (DEA), Ministry of Finance
• FDI applications with NRI Investments and 100% EOU should be

submitted to the Entrepreneur Assistance Unit (EAU) of Secretariat of
Industrial Assistance (SIA), Department of Industrial Policy & Promotion.
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• Plain paper applications carrying all relevant details are also accepted. No
fee is payable. The following information should form part of the
proposals submitted to FIPB: -
o Whether the applicant has had or has any previous/existing
financial/technical collaboration or trade mark agreement in India
in the same or allied field for which approval has been sought; and
If so, details thereof and the justification for proposing the new
venture/technical collaboration (including trade marks).
o Applications can also be submitted with Indian Missions abroad
who will forward them to the Department of Economic Affairs for
further processing.
• Foreign investment proposals received in the DEA are placed before the
Foreign Investment Promotion Board (FIPB) within 15 days of its receipt.
The recommendations of FIPB in respect of project proposals involving a
total investment of up to Rs. 6 billion are considered and approved by the
Finance Minister. Projects with a total investment exceeding Rs. 6 billion
are submitted to the Cabinet Committee on Economic Affairs (CCEA) for
decision.
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5.4) Condition for FDI for development of Integrated Township:
• The foreign company intending to invest, shall be registered as an Indian

Company under Companies Act 1956 and will henceforth be allowed to
take up land assembly and its development as a part of Integrated
Township Development. All such cases would be processed by FIPB on
the recommendation of Ministry of Urban Development & Poverty
Alleviation and other concerned Ministries / Departments. Ministry of
Urban Development & Poverty Alleviation will develop an exclusive cell
to deal with such cases.
• The core business of the company seeking to make investment should be

integrated township development with a record of successful execution
of such projects elsewhere.
• The minimum area to be developed by such a company should be 100

acres for which norms and standards are to be followed as per local
bylaws / rules. In the absence of such bylaws / rules, a minimum of 2000
(two thousand) dwelling units for about 10000 (ten thousand) population
will need to be developed by the investor.
• The investing Foreign Company should achieve clear milestones once

their proposal has been approved.
• Conditions regarding the use of land for commercial purposes,

development charges, external development charges and other charges
as laid down in Master Plan / Bylaws, preparation of layout and building
plan, development of internal and peripheral development, development
of other infrastructure facilities including the trunk services etc., will be
the responsibility of the investor as per planning norms and standards on
similar lines as those applicable to local investors.
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• Land with assembled area for peripheral services such as police stations,
milk booths will be handed over free of cost to the Government / local
authority / agency as the case may be.
• The Developer will retain the lands for community services such as (i)
schools (ii) shopping complex (iii) community centers (iv) ration shop (v)
hospital / dispensary. These services will be developed by developer
himself and shall be made operational before the houses are occupied.
• The developer, after properly developing playgrounds, park, will make it

available to the local authorities free of cost.
• The developer will ensure the norms and standards as applicable under
local laws / rules.
• Complete at least 50% of the integrated project within five years from the
date of obtaining all clearances.
• Do not repatriate original investment before three years from completion

of minimum capitalization. Early exits require prior approval of the
Foreign Investment and Promotion Board.
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5.5) Merits/Demerits of Foreign Direct Investment:
a) Merits-Attracting foreign direct investment has become an integral part of

the economic development strategies for India. FDI ensures a huge amount
of domestic capital, production level, and employment opportunities in the
developing countries, which is a major step towards the economic growth of
the country. The effects of FDI are by and large transformative. The
incorporation of a range of well-composed and relevant policies will boost
up the profit ratio from Foreign Direct Investment higher. Some of the
biggest advantages of FDI enjoyed by India have been listed as under:
• Economic growth- This is one of the major sectors, which is enormously

benefited from foreign direct investment. A remarkable inflow of FDI in
various industrial units in India has boosted the economic life of country.
• Trade- Foreign Direct Investments have opened a wide spectrum of

opportunities in the trading of goods and services in India both in terms
of import and export production. Products of superior quality are
manufactured by various industries in India due to greater amount of FDI
inflows in the country.
• Employment and skill levels- FDI have also ensured a number of

employment opportunities by aiding the setting up of industrial units in
various corners of India.
• Technology diffusion and knowledge transfer- FDI apparently helps in the

outsourcing of knowledge from India especially in the Information
Technology sector. It helps in developing the know-how process in India
in terms of enhancing the technological advancement in India.
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• Linkages and spillover to domestic firms- Various foreign firms are now
occupying a position in the Indian market through Joint Ventures and
collaboration concerns. The maximum amount of the profits gained by
the foreign firms through these joint ventures is spent on the Indian
market.
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b) Demerits of FDI in India: FDI has been a booming factor that has bolstered
the economic life of India, but on the other hand it is also being blamed
for ousting domestic inflows. FDI is also claimed to have lowered few
regulatory standards in terms of investment patterns
• The disadvantages of foreign direct investment occur mostly in case of

matters related to operation, distribution of the profits made on the
investment and the personnel. One of the most indirect disadvantages
of foreign direct investment is that the economically backward section
of the host country is always inconvenienced when the stream of
foreign direct investment is negatively affected.
• The various disadvantages of foreign direct investment are understood

where the host country has some sort of national secret – something
that is not meant to be disclosed to the rest of the world. It has been
observed that the defense of a country has faced risks as a result of
the foreign direct investment in the country.
• At times it has been observed that certain foreign policies are adopted
that are not appreciated by the workers of the recipient country.
Foreign direct investment, at times, is also disadvantageous for the
ones who are making the investment themselves.
• Foreign direct investment may entail high travel and communications

expenses. The differences of language and culture that exist between
the country of the investor and the host country could also pose
problems in case of foreign direct investment.
• Another major disadvantage of foreign direct investment is that there

is a chance that a company may lose out on its ownership to an
overseas company. This has often caused many companies to
approach foreign direct investment with a certain amount of caution.
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6) Challenges of integrated townships
6.1) Challenges related to municipal compliances
Any township development project the municipality will usually command .The
following project inputs
• Land falling within the public environment such as road reserves, public
open spaces and allied access and services servitudes. In many cases
vacant land set aside for social infrastructure will also vest with the
municipality.
• Existing capital assets, including most elements of the engineering and

social infrastructure, such as community halls and recreation facilities.
• The finance necessary to modify, extend or install municipal

infrastructure will be sourced from (or accessed through) municipal
budgets.
• Human resources and skills to oversee design and construction,

maintenance and continuing operation of infrastructure will generally be
found in municipal departments.
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6.2) Early legal compliance planning

It is extremely difficult to negotiate the complex web of requirements and
legislation. To prevent major conflicts, delays and stoppages, the following is
recommended:
• Addressing compliance issues from the very beginning of the project

development process
• Recruiting the best possible legal expertise at the beginning of the project
process.
• Doing the necessary and legal compliance planning and programming up

front, and synchronizing other components of the project with this
component.
• While much of the public-sector land, capital, human resources and

approvals required for township development projects are under
municipal authority, national and provincial government command a
number of key project inputs. These may include important public
infrastructure, such as police stations, health facilities, schools, courts,
social welfare services and home affairs facilities. In addition, national
and provincial authorities frequently control access to vacant and/or
underutilized facilities that need to be redeveloped as part of township
renewal.
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6.3) Financial Risk Challenges
Since property investments are typically based on long-term return periods and
because fixed investment cannot simply be packed up and moved elsewhere,
sound investment decisions are based on an assessment of the risks involved
and a calculation of the trade-off between risk and profitability. Pre-investment
risk assessments generally cover issues such as:
• Crime: What will the trends be? Will the authorities be able to manage it?
• Neighborhood: Will investors be able to strike up a cooperative

relationship with organizations in the neighborhood?
• Regulation and development control: Will the authorities be willing and

able to regulate illegal uses in the surrounding areas? Will the authorities
be likely to create a whole new set of rights just down the road and flood
the market?
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Chapter 2-Internal Factors /Issues Of Integrated Townships
7) Township Planning
7.1) Criteria for Township Development:
As per Town Planning Gujarat State-

The minimum area to be developed should be 100 acres subject to local rules. In
the absence of local rules and bye-laws at least 2,000 dwelling units for a
population of 10,000 needs to be built.
Criteria for Special Township Area Requirement. - Any suitable area having
sufficiently wide means of access (not less than 18 mt. wide) can be identified
for the purpose of development as “Special Township”. The area notified under
the Special Township shall be one, contiguous, unbroken and uninterrupted and
in any case shall not be less than 100 acres at one place which shall not include
the area under the following
• Forest, water bodies like river, creek canal, reservoir, lands falling within
the belt of 500 mt. from the HFL of major lakes, dams and its surrounding
restricted area, lands in the command area of irrigation projects,
• Land falling within the belt of 200 mt. from the historical monuments and
places of Archeological importance, Archeological monuments, Heritage
precincts and places, any restricted areas,
• Gaothan areas or congested areas, truck terminus specially earmarked on

Regional Plan, wildlife corridors and biosphere reserves, Eco-sensitive
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Zone/area, quarry Zone and recreational tourism zone catchment areas of
water bodies.
• Defense areas, Cantonment areas, notified area of SEZ, designated Port/

Harbor areas, designated Airport areas, quarry zone.
7.2) Town planning norms
AS per the Gujarat Town Planning Norms the following are the factors
taken into consideration.
a) Land use mix-The basic land use mix is related to the classification of
Townships by use and to the minimum criteria for eligibility, wherein a
minimum proportion of built-up area is to be allocated to the proposed
economic activity. In addition to this, land use norms will cover
compatibility of adjacent uses, integration with transportation network,
distribution of service facilities and provisions to ensure social
inclusiveness.
b) Density, height and bulk-To ensure predictable infrastructure

requirements; the overall density of the Township will be specified, both
in terms of residential population density and in terms of the density of
Built-Up-Area (expressed in FSI). To ensure harmonious built form the
developer will be required to submit an Urban Design Plan specifying the
characteristics of the building envelope such as height, ground coverage,
margins, etc for all the buildings proposed in the Township.
c) Provide On-site Physical and Social Infrastructure-A separate and specific

set of norms for provision of physical and social infrastructure will be
issued as part of this Township Policy. Conformity to these norms will
have to be established by the Developer in the Detailed Project Report to
be submitted for approval. Once the DPR is approved, there will be no
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separate procedure for development permissions. In the case of
Townships within the jurisdiction of sanctioned Development Plans of
cities, the norms prescribed by the respective Development Plans will
apply.
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• On-site Physical Infrastructure-The norms for provision of physical
infrastructure will cover the following:
o Road network and transportation-the road network must be

provided in a well defined hierarchy from arterial to collector
streets to access streets as per norms specified. Adequate
provision shall be made for public transport. Both the road
network and transport facilities should be coordinated well with
the land use distribution. The norms will also specify provisions
for pedestrian and bicycle tracks.
o Water supply-The Developer must establish a system for the

distribution of drinking water as per prescribed norms with
adequate provision for treatment, storage and distribution
network. The capacities of these facilities are to be determined
considering the resident population, workforce in the economic
activities, as well as firefighting requirements. Provision should
be made for using recycled water for requirements such as
landscaping.
o Integrated waste management-The key requirement for the

waste management system is that the Township should have
‘zero externality’. Therefore it is expected that all Developers
make suitable arrangements for Integrated Waste Management,
combining Sewerage and Solid Waste Management. The IWM
systems should recycle as much water and nutrients as possible.
The possibility of harnessing energy from waste may also be
considered
o Power distribution-The developer shall ensure reliable power

distribution within the Township area. The developer may draw
the power from existing supply system or may go in for captive
power generation.
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• On-site Social Infrastructure-The norms for provision of social

infrastructure will cover the following:
o Educational facilities-Adequate number of primary and

secondary schools should be provided as per norms, based on
the resident population.
o Health facilities-Adequate number of primary health facilities

and nursing homes/ polyclinics should be provided as per
norms, based on the resident and floating population.
7.3) Development Procedure for Special Township
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a) Location Clearance. - The proposal for development of Special Township,
along with details of ownership of land or Development rights of lands in
the proposal scheme, site plan, part plan of sanction regional plan, shall
be submitted to Government in Urban Development Department for
grant of location clearance.
Upon receipt of such proposal, depending upon the merits of the case,
location clearance may be granted by Government u/s 18/2 of MR&TP
Act.
This location clearance will be valid for one year from the date of issue
and if within such period the letter of intent and final approval is not
taken or not applied for, such clearance/approval will stand lapsed unless
it is renewed by Govt. for sufficient reasons. Application for renewal has
to be made to Govt. before expiry of one year.
b) Letter of intent-Upon receipt of location clearance from the Government,

the developer shall submit the proposal in respect of Special Township to
Collector, along with the environmental clearance as mentioned in
Regulation No. 1.4 for issue of letter of intent. The proposal shall contain
ownership rights/development rights, document in respect of at least 50
% of area under the scheme .Letter of intent shall be issued within a
period of 45 days from the date of receipt of the completed full & final
proposal. The letter of intent shall be valid for six months unless
renewed.
c) Layout and building -Layout plan showing all details of area utilized under
roads, open spaces for parks, garden and playground amenities. in
respective field and team .Detail layout plan, building plans of all
development with area headed by an Architect of all sector and individual
plots and built up area/FSI proposed should be submitted.
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d) Final Approval- The Developer shall submit the layout plan of the entire
township area, sector-wise detailed building plans and details of phasing,
for final sanction The developer shall also submit an undertaking and
execute an agreement about development and maintenance of basic
infrastructural amenities in future with bank guarantee of 15 of its
development costs.
Every application shall be accompanied by –
• Ownership Document: 7/12 extract/ Property Card, ownership right

Document in original with list of such documents.
• Extent: Village maps showing the extent of area and authenticated
measurement plan/ gut book of the land in original and list of such
documents.
• An authenticated copy of location clearance and letter of intent
environmental clearance is applicable.
e) Implementation & completion
• Development of Basic infrastructure & amenity shall be completed by

the developer as per phases of scheme. Development of the scheme
shall be completed within 10 years from the date of final sanction to
the layout plan of scheme.
• No building in the scheme is permitted to be occupied in any manner

unless occupancy certificate is issued by Collector. Final completion
certificate for the scheme is to be issued by Collector .
• Application for occupation certificate or final completion certificate

shall be submitted along with a declaration and undertaking by the
developer and his structural consultant.
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8) Legal Issues/Policies of Integrated Township
8.1) General Norms
The overall planning of the integrated township shall be such that the project
adequately meets detailed norms and specifications including the following as
per the Maharashtra Town Planning Act 1966:
• Residential
• Commercial
• Educational
• Amenity Spaces
• Health Facilities
• Parks, Gardens and Play Grounds.
• Public Utilities.
• Transportation
a) Residential. - The residential area should be well defined in clusters or

neighborhoods or in plotted development with proper road grid. Out of
the total built-up area proposed to be utilized which is permissible as
proportionate to zoning of area under such township at least 60% of the
area may be used for purely residential development and further out of
the total built-up area proposed to be utilized for residential
development, 10% of the same shall be built for residential tenements
having built-up area up to 40 sq.mt. The residential area should be well
defined in clusters or neighborhoods or in a plotted development with
proper road grid. Out of the total area of the township, not more than
25% of the area may be used for purely residential development
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b) Commercial - The commercial area shall be properly distributed in
hierarchical manner such as convenient shopping, community centre etc.
The commercial area shall be suitably distributed within the township
area, providing for ease of trade / commerce / shopping / community
utilities / centers.
c) Educational. - Comprehensive educational system providing education

from primary to secondary should be provided as per the requirement.
The area allocation should be on projected population base and as far as
possible the educational complex should not be concentrated at one
place. All such complexes should have area adequate allocation for
playground. Minimum area required for educational purpose shall be as
per prevailing planning standards. Comprehensive infrastructure to
support multi level educational systems right from pre-schooling to
higher and professional courses in diverse segments shall be planned and
provided for the township population.
d) Amenity Spaces. - The area allocation for amenity space providing for
amenities like market, essential shopping area, recreation centers, town
hall, library etc. should not be less than 5 of gross area and should be
evenly placed. The area allocation for amenity space providing for
amenities like market, essential shopping area, recreation centers,
cultural community centers, town hall, library, etc., shall be not less than
10% of gross area with even placement.
e) Health Facilities. - Adequate area allocation for health facilities for

primary health should be provided for. Minimum area required for health
facilities shall be as per prevailing planning standards.
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f) Public Utilities. - Appropriate area allocation should be provided for (a)
power receiving station/ substation, (b) water supply system, (c)
sewerage and garbage disposal system, police station Public parking, (f)
cemetery/cremation ground, (g) bus station, fire brigade station and
other public utilities as per requirements.
g) Parks, Gardens and Play grounds. - The township shall also provide
adequate area as parks/ gardens/play grounds. This should be exclusive
of the statutory open spaces to be kept in smaller layout and should be
distributed in all residential clusters. This 20% area should be developed
by the developer for such purposes and kept open to all general public. At
least 15% of the total area shall be provided for parks / gardens / play
grounds. This shall be exclusive of the statutory open spaces to be kept in
smaller internal layouts and shall be distributed evenly in all residential
clusters and the access shall be kept open to all general public.
h) Transport and Communication. - The entire area of township shall be well

knitted with proper road pattern, taking into consideration the linkages
with existing roads within the township and outside area as well. All such
roads shall be developed by the developer as per standard and road
widths shall be as given. Classified Road - as prescribed. Main road/Ring
road - 18 to 24 meter wide. Internal road - as per prevailing byelaws
applicable to Regional Plan subject to minimum road width 9 mt.
The entire area of township shall be well knitted with proper road pattern
with bus bays at appropriate places, taking into consideration the
linkages with existing roads within the Township and outside area as well.
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All such roads shall be developed by the developer as per IRC standards and
road widths as given below:
• Internal Roads - a minimum width of 12 mts.

• Main roads - a minimum width of 18 to 24 mts
• Ring Roads and major access roads - four lane with a minimum of 33 mts
& a median for road safety
• Foot Paths - Minimum of 5 mts. on either side
• Space for avenue trees - Minimum of 3 mts on either side.
8.2) Policies for Integrated Township

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Special Township Policy
Government of India has announced its policy to permit 100% Foreign Direct
Investment (FDI) for development of integrated township. In order to
encourage private investment in housing sector and to facilitate housing at
affordable prices, the following incentives will be available for projects under
Special Township Area:-
• Non-agriculture permission will be automatic.
• Exemption from Urban Land (Ceiling and Regulation) Act, 1976.
• Government Land falling under township area shall be leased out to the
developer at the current market rate.
• The condition that only agriculturist will be eligible to buy agriculture land
shall not be applicable in Special Township Area.
• There shall be no ceiling limit for holding agriculture land to be purchased

by the owner/developer for such project.
• There will be floating FSI in the township. Unused FSI of one plot can be
used anywhere in the whole township.
• The stamp duty rates applicable in the Special Township area shall be 50%
of prevailing rates.
• A Special Township Project shall be partially exempted from payment of

scrutiny fee for processing the development proposal.
• 50% concession in payment of development charge.
8.3) Concessions for Townships (Maharashtra)
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Special Concessions
• N.A. Permission. - Non-agriculture permission will be automatic. As soon

as the scheme is notified, lands notified under Special Township area as
per 1.2 will be deemed to have been converted into non-agriculture and
no separate permission is required. Non-agriculture assessment however
will commence from the date of sanction of scheme as per Regulation
No.7(c).
• Stamp Duty. - The stamp duty rates applicable in Notified Special

Township area shall be 50 of prevailing rates of the Mumbai Stamp Act.
• Grant of Government Land. - Any Government land falling under

township area shall be leased out to the developer at the prevailing
market rate on usual terms and conditions, without any subsidy.
• Relaxation from Mumbai Tenancy and Agriculture Land Act. - The

condition that only the agriculturist will be eligible to buy the agriculture
land shall not be applicable in Special Township area.
• Ceiling of agriculture land. - There shall be no ceiling limit for holding

agriculture land to be purchased by the owner/developer for such
project.
• Exemption from Urban Land - Special Township Projects will be exempted

from the purview of Urban Land (Ceiling and Regulation) Act; 1976.(g)
Scrutiny fee. - A Special Township Project shall be partially exempted
from payment of scrutiny fee being levied by the Collector/Planning
Authority for processing the development proposal on certain terms and
conditions as may be decided by the Collector/Planning Authority.
• Floating FSI. - There will be floating FSI in the township. Unused FSI of one
plot can be used anywhere in the whole township.
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• Special benefits / concessions in respect of Star Category Hotels, Hospitals

and Multiplexes /Property Tax shall be provided.
8.4) Development Control Regulations (Maharashtra)
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a) Prevailing regulations of sanctioned Zonal Plan shall be applicable, except
those expressly provided in these guidelines.
• The total built up area / FAR of entire gross area of the township, will be
determined for different zones. Inter-se flexibility will be permitted to the
developers in deployment of the overall FAR within the components of
township for commercial exploitation. Height of building shall be as
specified in Zonal Regulation
• In respect of each integrated township, the structural designer of

principal developer / subsidiary developer shall submit a declaration with
project report to the Authority about the construction of building.
• High-rise flatted residential developments would be encouraged.
• The Developer shall be responsible to ensure that the Township remains

free of slums and unauthorized developments.
• The Development Plan shall earmark adequate and appropriate land-fill

sites for disposal of solid waste including adequate land for transfer
stations both within and outside the township area.
b) Prevailing Development Control Regulations of sanctioned Regional Plan

shall be applicable, except those expressly provided in these Special
Regulations.
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• Special Township– The total built-up area/FSI of entire gross area of the
Special Township in urbanisable zone (U-2) & Green Zone (G1, G2) will be
0.5. There will be no limit of total built-up area / FSI for the development
of individual plots.
• Height of building shall be as per prevailing Byelaws as specified in

Regional Plan. However, it may be increased subject to provisions of fire
fighting arrangements with prior approval of Fire Advisor, Government of
Maharashtra.
• 50% of the gross area of the project shall be kept open while the project
of Special Township shall be executed on the remaining 50% land with
gross built-up area/ FSI of 0.50 worked out on the entire gross area of the
project.
• Further, while developing such projects, it would be obligatory on the

part of the developer to provide and develop all the infrastructure
facilities including sites required for public purposes as per the prescribed
planning norms.
• As regards 50% of land which is required to be kept open, the same shall
be made free of encumbrances and no development except town level
open amenities shall be permissible thereon.
c) Other Special Regulations.
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In every Special Township proposal the structural designer of developer
has to submit declaration with project report to Collector / Planning
Authority about the construction of building
The following shall not be included in covered area for built up area and
F.S.I. calculations:-
• Area covered by the staircase rooms for stair flights of width 0.75 m. &
above, in case of row housing & pent houses and duplexes, 1 mt. in case
of residential building, 1.2 mt. & above in case of commercial (mercantile)
buildings, 2.00 mt. & above in the case of public & semi-public building,
subject to payment of premium in consultation with Town Planning &
Valuation Department. Area covered by lift room for a building with
height up to 16 mt.
• Stilt floor space (exclusively for parking space) constructed under building
of maximum cleared height 2.4 mt. and which shall be open at least from
three sides.
• Balcony or balconies of a minimum width of one mt. may be permitted

free of F.S.I at any upper floor, subject to maximum of 1/3rd length of
perimeter of building and such balcony projection shall be subject to the
following conditions :-
o No balcony shall be allowed on ground floor.
o Balcony or balconies shall be permitted to project in the marginal
open space of not less than 3 mt. in width.
o Notwithstanding anything contained in any other laws, rules,
regulations or bye-laws in force, a balcony shall not be permitted to
be enclosed.
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• In special Township schemes at the rate of minimum 150 trees per ha.
And 400 trees per hectare .respectively shall be planted and maintained
by the developer
• Sale Permission. - It would be obligatory on the part of the developer

firstly to provide for basic infrastructure and as such no permission for
sale of plot/ flat shall be allowed unless her basic infrastructure as per
Regulation is completed by the developer to the satisfaction of the
Collector.
• In case the development is proposed in Phases & sale permission Js

expected after completion of Phase wise basic infrastructure, such
permission may be granted .
• Before granting such sale permission, Developer has to submit

undertaking about the basic infrastructure to be provided & completed
phase wise by Developer. The plots earmarked for amenities, facilities,
and utilities shall be also simultaneously developed phase-wise along
with residential/allied development.
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9) Environmental Clearances
The development contemplated in townships shall not cause damage to

ecology, no case it shall involve topographical changes, changes in alignment of
cross section of existing water course in any in the scheme area or adjacent to
scheme area. Environmental clearance shall be obtained from the Ministry of
Environment and Forest, Government of India as per directions issued by the
MOEF’s notification dated 7th July 2004. The Township shall provide at least
20% of the total area as park/garden/playground with proper landscaping and
open uses designated in the Township shall be duly developed by
owner/developer. This amenity shall be open to general public without any
restriction or discrimination.
All projects classified under two categories:
Category A: Will require clearance from MoEF based on recommendation by the

Environmental Appraisal Committee (EAC)
Category B: Will require clearance from the on the State Environmental

Appraisal Committee (SEAC)
The SEIAA will be constituted by Central Government based on nominations

from State As earlier; no site development as well as construction can begin
until EC is obtained. Steps involved in obtaining Environmental Clearance are
Application for Prior EC has to be made in form 1(and Form 1A for construction
projects) Form 1A is for Item 8 construction projects conceptual Plan to be
provided.
• Screening- Category B projects (SEAC), whether EIA is required or not,

Category B1 and B2 MOEF to issue guidelines for this. All projects under
Item 8b classified as Cat. B1 (Cat. B1 projects would require EIA so all
construction projects may not escape EIA entirely
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• Scoping – For Category A and B1 projects-TOR for EIA to be issued by
EAC/SEAC. Scoping not required for item 8 category projects Appraisal
based only on Form1& 1A.
• Public Hearing- Not applicable to all projects under Item 8 (even Cat. B1)
• Appraisal-For Item 8 Projects based on Form 1 & 1A (Cat. B2) + EIA Report
for Cat. B1.To be done by SEAC within 60 days of receipt of complete
application. To be placed before Competent Authority within next 15
days
Issue of prior environmental Clearance
• Decision to be communicated to applicant within 45 days of receipt of

recommendations from SEAC
• Total period -105 days from date of completed application (about 3.5
months
• Provision for de-facto EC has been made-but based on recommendations
of SEAC (to made public documents after expiry of stipulated period)
• Other clearances NOT required for submitting application (unless legally
or technically required)
Environmental Clearance for Construction Projects
• Validity of EC - 5 years for completion of construction (extendable by

another 5 years)
• Half-yearly compliance report (to EC conditions) to be submitted to
regulatory authority (1st June and Dec 1st)
• Compliance reports to be Public documents
• On application
• Website of regulatory authority
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• Pending cases-provisions may be relaxed by MoEF or continued up to 1
year no relaxation in list of Schedule I.
Departures from Earlier / Draft Notification
• The criteria have been changed to Built-up area instead of investment,

quantity of sewage discharge and number of occupants
• Construction projects not required to go to MoEF/EAC –only at SEAC
• EIA not required if categorized as B2 project
• Public Hearing not required for any construction project
• Upper limit of built-up area raised to 1, 50,000 sq. m. (from 1, 00,000 sq.
m. earlier)
• Construction projects in cities with population> 30 lakhs NOT required
now to go to MoEF
• For construction projects, appraisal can be done in the absence of other
clearances. However, EC will be given only after submitting approved
scheme/ building plans and other statutory approvals to SEAC.
Creation & Maintenance of Green cover
• The Township shall provide at least 15% of the total area as park /
garden / playground with proper landscaping. The open spaces
designated in the Township shall be duly developed and maintained by
the developer and handed over to the BMRDA/LPA free of cost after full
development of the township. This amenity shall be open to general
public without any restriction or discrimination.
• In addition, the developer shall provide a green belt of 15 meters on
either side of the main roads and of suitable width in respect of other
roads.
• In the Economic infrastructure Zone/ Residential Zone and No
Development Zone, trees at the rate of a minimum 150 Nos. and 400 Nos.
per hectare shall be planted and maintained by the developer.
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10) Infrastructure Requirements
The entire Township should be an integrated one with all facilities within the
boundaries of declared townships. All the onsite infrastructure, i.e. roads,
including R.P. roads, approach road, street lights, water supply and drainage
system shall be provided and maintained in future by the developer till urban
local body is constituted for such area and the developer shall also carry out
development of amenity or proposals, if any designated in the Regional plan, in
accordance with the prevailing regulations.
a) Water supply. - The developer shall be required to develop the source for
drinking water (excluding the groundwater source) or secure firm
commitment from any water supply authority for meeting the daily water
requirement of minimum 140 liters’ per capita per day exclusive of
requirement of water for fire fighting and gardening. The storage capacity
of the same shall be at least 1.5 times of the actual required quantity as
determined by expected population (Resident and Floating) and other
uses. The developer would be required to develop proper internal
distribution and maintenance systems and shall specially undertake rain
water harvesting, groundwater recharging and waste water recycling
projects within the Township.
b) Drainage and Garbage disposal. - The developer shall make suitable and
environment friendly arrangements for the disposal and treatment of
sewage and solid waste as per requirements of Maharashtra Pollution
Control Board. Recycling sewage for gardening shall be undertaken by the
developer.
The developer shall develop Eco-friendly garbage disposal system by
adopting the recycling and bio-degradation system in consultation with
Maharashtra Pollution Control Board.
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c) Power - The developer shall ensure continuous and good quality power
supply to township area. The developer may draw the power from
existing supply system or may go in for arrangement of captive power
generation with the approval from concerned authority. If power is
drawn from an existing supply system, the developer shall before
commencement of development, procure a firm commitment of power
for the entire township from the power supply company.
d) Social infrastructure
An integrated township always has the basic social infrastructure

essentials. They are as follows:
• School: A quality school with education up to at least 10thstandard is

setup within the township, reducing the travelling time between home
and school and in turn providing the children with more time for play
and studies.
• Medicare: A good healthcare facility with at least 50-plus beds and an

emergency care is set up within the township, thereby facilitating
residents.
• Recreation: Adequate space for basic sports such as football, cricket,

tennis and badminton, fitness facilities including a gymnasium and
swimming pools are set up within the township to enhance social
lifestyle.
• Community centre: A spacious, well-decorated community centre with

a club house and a function hall is set up within the township.
• Infrastructure and services: An integrated township needs to be self-

contained in most aspects, essentially on basic infrastructure.
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• Road network: A well-planned road network both within the township
and connecting to the nearest highway or main road is built, thereby
easing communication.
• Communication infrastructure: Good quality telecom services are also

made available within the township and nearby.
• Estate management: An integrated township should incorporate a

well-equipped estate management.
• Infrastructure maintenance: Proper and regular maintenance of roads,

pathways, parks, electrical and plumbing infrastructure, children play
areas and common areas including community centre is essential for a
well-developed integrated township.
• Security: Superior estate security and safety for all residents is a

critical element of an integrated township.
• Shopping and entertainment: An integrated township is incomplete

without shopping centers and entertainment areas.
• Entertainment: Quality cinema or multiplex, popular games and kid
entertainment facilities should be established within the township.
• Shopping: Well-stocked grocery stores as well as shopping centers

including branded garment stores, electronic goods should be
established within the township.
• Food courts: Good quality and hygienic food courts with ample menu
options should be established within the townships to cater to the
taste buds of all types of residents.
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11) Land Acquisition
Land is one of the biggest resources of any country. The Government has to
acquire land from the private individuals for setting up various infrastructure
and other public purpose projects as well as developmental activities. Whereas
the sovereign power of every State has the authority to appropriate land for the
public purpose, every subject has the right to be heard before he is deprived of
his property by the State. This is recognized as a legal right as per article 300A of
the Constitution which provides as under:
Whereas land and its management is under the State List, Acquisition and
requisitioning of property falls under the Concurrent List. To deal with the
issues related to land acquisition and determining the amount of compensation
in lieu of the land acquired by the Government, ‘The Land Acquisition Act’ was
promulgated on the first day of March, 1894. The Act has been amended in the
years 1919, 1921, 1923 and 1933 before independence and in the years 1962,
1967 and 1984 after independence.
With the enormous expansion of the State’s role in providing public welfare and
economic development since independence, acquisition of land for public
purposes has become far more important than ever before .Further, with
changing scenario of industrialization, liberalization, urbanization and new
economic policy, there is an immense pressure on land. Besides, recently the
land is being acquired for setting up of Special Economic Zones (SEZs) to
generate more employment. With the increased activity of land acquisition for
public purposes as well as for setting up industries, the issues related to land
acquisition and rehabilitation of the affected persons have been the matter of
debate recently.
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The provisions made under ‘The Land Acquisition Act, 1894’ have been found to
be inadequate in addressing certain issues related to the exercise of the
statutory powers of the State for involuntary acquisition of private land and
property as acknowledged in the Statement of Objects and Reasons of the
aforesaid Bill.
As per the Statement of Objects and Reasons of the Bill, the provisions made
under the amending legislation seek to extend the provisions of the extent
policies or statutes for rehabilitation and resettlement of those affected by the
acquisition of land under the Act.
Further the legislation seeks to provide for the following:-
• Restricting the Stat e intervention to acquire land for companies to the

extent of a limited portion of the total area of land required when the
‘person’ which includes any company or associations or body of
individuals has already purchased the rest of the land through private
negotiations;
• To provide for the alternative mechanism of civil courts for Disposal of

disputes relating to land acquisition compensation in a time bound
manner;
• To provide a fair compensation at market value commensurate with the

purpose for which the acquired land would be used;
• To ensure that physical possession of the land is taken over and the
amount of compensation is paid within a defined period from the date of
the compensation award.
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• Return of the land to the appropriate Government when any land or part
thereof, acquired under the Act remains unutilized for a defined period
from the date of taking over possession.
11.1) Procedure for the Land Acquisition
a) Investigation
When a local authority or a company requires a land, an application is
required to be made by it to the revenue authority.
The application should be accompanied with a copy of the plan showing

survey nos., purpose of acquisition and the reason for the particular site
to be chosen and the provision made for the cost of the acquisition.
After the government has been fully satisfied about the purpose, the least
area needed, and other relevant facts as provided under land acquisition
rules, it will issue a notification under Section 4 of the act that the
particular land is required for public purpose.
One of the revenue officers is appointed as the collector to hold an

inquiry under Section 5-A of the Act.
After notification the owner is prohibited from selling his property or

disposing of it and prevented from carrying out any works of
improvements for which no compensation will be paid if executed
without prior permission from the collector.
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b) Objection and Confirmation

Objections are invited from all persons interested in land within thirty
days from the date of notification.
The objections will be valid on one or more of the following grounds:
That the purpose for which the land is proposed for acquisition is not a
public purpose.
That the land is not or less suitable than another piece of land for the said
purpose. That the area under acquisition is excessive. That the acquisition
will destroy or impair historical or artistic monuments or will desecrate
religious buildings, graveyards and the like.
The collector after hearing the objections will submit his report to the
government who will finally declare the land for acquisition. After
notification the collector proceeds with the claim. He has the site marked
out, measured and a plan of the same is made.
c) Claim and Award
The collector will issue notices under Section 9 to all persons interested in
the acquisition to file their claim reports.
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The collector is not to be a party to the proceedings, is to possess an
expert knowledge on valuation, and offers a fair price to an owner and
checks that the public funds are not wasted.
The claim filed should contain the names of the claimants and co-shares if
any rents or profits for last three years and a valuation report of the land
from an architect or an engineer.
The government can abandon the acquisition proceedings by simply

canceling the notification. However, in that case compensation has to be
paid under Section 48(2).
In determining the compensation the market value of the land is

determined at the date of notification. The rise and fall in the value
during the period of transaction and notification is taken into
consideration.
d) Compensation is also payable when:
o Part of the property is proposed for acquisition in such a manner

that the remainder depreciates in value.
o When the land notified for acquisition has standing crops or trees.
o If the person interested has to change his place of residence or

business then the excess rent payable for the new premises is also
considered for compensation.
Matters which are not taken into consideration for the purpose of land
acquisition are:
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o The degree of urgency which has led to the acquisition
o Any disinclination of the person interested to part with the land.
o Any increase in the land value likely to accrue from the use to
which it will be put when acquired.
o After necessary inquiries the collector declares his award showing
true area of the land, total amount of compensation payable and
apportionment of compensation if there are more than one owners
or claimants.
o The collector has to make the award under section 11 within a
period of two years from the date of notification.
e) Reference to Court
Any person interested to whom the award is not satisfactory can submit a
written application to the court. This application should be made within
six weeks from the date of declaration of the award.
f) Apportionment
In apparent of the compensation each of the claimants are entitled to the
value of his interest, which he has lost, by compulsory acquisition. Thus it
is required to value a variety of interest, rights and claims in the land in
terms of money.
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11.2) Determination of Market Value of Land
As per the principal Act, (section 11 (1)(ii)) states that the Collector shall make
an award for the compensation which in his opinion should be allowed for
the land.46 Clause 13 of ‘The Land Acquisition (Amendment) Bill, 2007’
seeks to insert Section 11B in the Principal Act. The aforesaid clause
provides the following with regard to the determination of market value of
land:—
“11B. (1) The Collector shall adopt the following criteria in assessing and
determining the market value of the land,—
• the minimum land value, if any, specified in the Indian Stamp Act,
1899 for the registration of sale deeds in the area, where the land is
situated; or
• The average of the sale price for similar type of land situated in the
village or vicinity, ascertained from not less than fifty per cent of the
sale deeds registered during the preceding three years, where higher
price has been paid; or
• The average of the sale price, ascertained from the prices paid or
agreed to be paid for not less than fifty percent of the land already
purchased for the project where higher price has been paid, for the
purpose of item (iii) of clause (f) of section 3, whichever is higher.
Where the provisions of sub-section (1) are not applicable for the reason that:
• The land is situated in such area where the transactions in land are
Restricted by or under any other law for the time being in force in that
area;
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• the registered sale deeds for similar land as mentioned in clause (i) of
sub-section (1) are not available for the preceding three years; or the
minimum land value has not been specified under the Indian Stamp
Act, 1899 by the appropriate authority, the concerned State
Government shall specify the floor price per unit area of the said land
based on the average higher prices paid for similar type of land
situated in the adjoining areas or vicinity, ascertained from not less
than fifty per cent of the sale deeds registered during the preceding
three years where higher price has been paid, and the Collector may
calculate the value of the land accordingly.
The Collector shall, before assessing and determining the market value of the
land being acquired under this Act,—
• Ascertain the intended land use category of such land; and47 take into
account the value of the land of the intended category in the adjoining
areas or vicinity, for the purpose of determination of the market value
of the land being acquired.
• In determining the market value of the building and other immovable

property or assets attached to the land or building which is to be
acquired, the Collector may use the services of a competent engineer
or any other specialist in the relevant field, as may be considered
necessary by the Collector.
• The Collector may, for the purpose of determining the value of trees
and plants, use the services of experienced persons in the field of
agriculture, forestry, horticulture, sericulture, or any other field, as
may be considered necessary by him.
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Case Study
The Magarpatta model for land acquisition
In an equitable and inclusive model that replaces coercive land acquisition and
exclusive development projects, 123 farm families in Pune pooled 400 acres of
farmland and set up a private limited company that developed a commercial-
cum residential project. These farmers own shares in the company
proportionate to the value of their land. Plus they have got plush homes, earn
dividends on the shares they hold, rent from tenants and income from
contractual work for the company Long before the nation woke up to the
violent protests against ?forced? Land acquisitions for Special Economic Zones
(SEZs), a small group of farmers on the fringes of Pune saw the writing on the
wall and decided to act before the process of globalization and development
swallowed up their ancestral farms.
The land they tilled has been under the Pune municipal jurisdiction since 1960,
though it was still an agricultural zone. But in 1982, the Pune Municipal
Corporation marked it as a future urbanisable zone. In its draft development
plan, this meant that the government could easily acquire the land under the
Urban Land Ceiling Act.
The Magar clan and their immediate neighbors, comprising 123 families that
trace their ancestry back three centuries, had through the 1960s and 1970s
clung together to oppose the municipal administrations plan to urbanize their
land. They were content with the steady income afforded by the sugarcane
harvests, though some farmers in the neighborhood, lured by the quick buck,
had sold their lands to real estate developers.
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By the late-80s, the Magars realized that the city, already bursting at the seams,
would eventually claim their land for infrastructure development. ? It finally
dawned on us that we were fighting a losing battle against rapid urbanization,
and this meant they had to act soon
The Magars decided that they would develop the land themselves. The fact that
they knew nothing about land development and had little money did not deter
them.
As the name Magarpatta Suggests, the Magar clan dominated, owning 40% of
the total land or the largest patta (land strip) located next to the Hadapsar
Industrial Estate.
A young entrepreneur Satish Magar owned around 100 acres of land. Otherwise
the average landholding per family was between 2 and 4 acres. More than 90%
of the farmers were Marathas while a few were from the Mali and Sonar
communities. Together they managed to pool together 400 acres before
requesting architect Hafeez Contractor to draft a private township plan, which
was submitted to the concerned departments of the state administration for
approval. Amid great apprehension, the families applied for conversion of the
entire stretch into a non-agricultural zone.
A new government came to power in Maharashtra in 1995, while the idea was
still at a very nascent stage. Seeking government approval proved an uphill task
as applications and files moved from one department to another at a snail’s
pace. At subsequent informal meetings, the families began expressing concern
over livelihoods as they had known only farming till then. Magarpatta was
going to be a re-enactment of Pimpri-Chinchwad, but with a focus on new age
industries like software and business process outsourcing.
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The idea was that each family got shares equal to the size of their landholding.
The company was registered as the Magarpatta Township Development and
Construction Company Limited.
Today, the project is popularly referred to as Magarpatta City. It boasts ISO

9001:2000 certification, putting it at the centre of the discourse around offering
a fair deal to landowners whose lands have been acquired or are in the process
of being acquired under various development projects.
It was after a five-year-long wait in 1998 that the development plan of

Magarpatta gathered momentum. Farmers got their land titles (non-
agricultural) cleared by 1999. By now, the 123 families had built up a consensus
on setting up a private enterprise.
However, around 65 acres of land had been sold off by some families in the
interim; this had to be reclaimed. The company was run by the managing
director and technical director in consultation with eight board members drawn
from the shareholding families. Every family was an equity shareholder of the
company. Each share was equivalent to 1 square meter of land and cost Rs 100,
in 1998. The current price per share is approximately Rs 1,000. Shares could be
sold only to member families.
The approximate price of an acre of land that was Rs 1.20 crore in 2000 rose to
Rs 1.50 crore in 2007. Thirty per cent of the total cost of each construction was
earmarked as cost of land at the current price and paid to the shareholders. The
family has the option of reinvesting the amount in the company, in the form of
a term deposit at an appropriate rate of interest (12.5% for three years, 11.5%
for one year, and 10.5% for three months).
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There were two kinds of shares initially -- a preferential share and an equity
share. The preferential share was short-term, where the rights of shareholders
in the company and over their lands were redeemed at the end of the term. The
equity share, on the other hand, endowed shareholders with permanent rights
in the company and over their lands. Later, preferential shares were abolished
and only equity shares that offer lifelong security to the families retained.
The most important feature of the model is that the land pattas (7/12
registrations) remain in the name of these families, safeguarding their
ownership over the land. Owning land is central to the Maratha tradition and
this has proved a binding force, surpassing the urge, if any, for immediate gains.
The bye-laws of the company ensure preference to family members of

shareholders in employment generated by the company. Shareholders may also
invest in the construction of commercial spaces that are rented out to
companies. Apart from these provisions, shareholders are encouraged to bid for
contracts for development work in the township, such as supplying raw
material for RCC construction, labor contracts, vending contracts (shops),
landscaping, beautification, and security and maintenance contracts. ? In a
nutshell, these farmers not only get a fair price for their lands at the current
rate, but also get dividends on the company shares they hold, lease/rent
amount from tenants, employment in the company, contractual work in the
city, and plush homes with amenities Magarpatta City.
Contracts are awarded based on an assessment of the bidders past experience,

current potential and, of course, the proposed plan and costs. The board of
directors reserve rights to withdraw contracts in case the quality of goods and
services is not of the desired quality.
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Around 300 contracts have been awarded for various kinds of work in the
township, where preference has been given to the shareholders. On average,
each shareholder holds two contracts. ? Besides, over 10,000 workers are
engaged in daily wage jobs in the township, apart from the 65,000 jobs created
in the companies operating from here
Of the total residential capacity of 6,000 dwellings, 2,500 spaces are currently
occupied. A majority of the 123 families have bought apartments or bungalows
for the specific purpose of renting them out to the IT firms that have set up
shop here.
Part 3-Conclusions&Analysis
12) Comprehensive analysis
12.1) Need of Integrated Townships
• The residential real estate has witnessed explosive growth and

supply during the past decade, primarily fuelled by the growing demand
in key metros (Mumbai, New Delhi, Chennai, Bangalore, Pune and to
some extent Kolkata) and tier I cities (Nasik, Cochin, Baroda, Ahmadabad
etc).
The limited land availability and the huge unbridgeable gap between
demand and supply for individual plots or sites have aided the demand
and growth of condominiums, apartment complexes and gated
communities. The ever increasing population in the metros has also
triggered the demand for both owned and rented accommodations.
Besides, higher disposable income, improving lifestyle, increasing
aspiration levels and expanded knowledge on global trends have made
the present new-generation property buyers more conscious about the
properties they want to invest in.
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• However, weak urban planning across most states, lack of public
transport, longer travelling time to workplace and inadequate
infrastructure have added woes to the property buyers rather than
enabling them for a better living. In most cities, new development areas
are not planned properly and therefore; do not act as satellite towns, but
merely as suburban residential areas.
• The solution to this complex issue in key metros and tier I cities lies
in integrated townships — a concept that has been adopted well and
proven in the West and even Far East, for over 3-4 decades, for mitigating
mobility issues.
12.2) Current scenario of Integrated Township
• Integrated township projects are slowly picking up as the concept of

walking to work is picking up among city dwellers. As a township
project integrates residential, commercial and retail properties, this is
the next phase of growth in the real estate industry.
• Metro cities already bustling with over-population, the focus of real

estate developers and urban planners has now shifted towards
developing the satellite towns on the periphery of bigger cities.
However the biggest bottleneck in developing demand for new
townships in the peripheral regions is the lack of proper connectivity.
As the real estate sector is finally coming on the fast track,
connectivity remains the major concern.
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• There are also many industrial hubs and small settlements along these
corridors. These could be developed into small and medium size
satellite townships with the major city acting as a hub. But for this
appropriate urban planning is required. An important aspect of urban
planning would be a well planned transport system. Mass Rapid
Transit systems and metro will perhaps lead to the decongestion of
existing towns.
• In the recent past several steps have been taken to introduce well-
planned mega infrastructure projects in different parts of the country.
Emphasis is being laid for the development of metro networks and
high capacity bus systems.
• Looking at the current scenario it is necessary to develop a self-

sustaining sub-city that has residential, commercial and institutional
functions.
• With growing urbanization it has now been established that townships

are the most suitable residential solution. The government is now
encouraging the development of such townships to reduce pressure
on urban areas and to improve infrastructure. Integrated township
projects also offer real estate developers an opportunity to cash in on
the revival in demand for residential and commercial space. These
projects are also part of an effort by these companies to reduce risk in
their business model.
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12.3) Integrated township Development Trend analysis
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• Townships development is a trend that is catching the new face of
Indian real estate like .A trend that has played an essential role in
opening the floodgates for the development of integrated townships
across the country that offers their residents the promise of a quality
lifestyle tailored to suit every budget.
Township development in India has emerged into a growing trend in

people aspiring for more homes in townships especially among the
metro cities. This has bought in the FDI’s also into the race with more
and more foreign industries investing in such projects. India is
proposing to set up separate investment regions complete with
integrated townships for the planned growth of the knowledge
industry because the booming IT sector in major cities is straining
current infrastructure and adding to inflationary pressure.
International real estate developers are here in India developing

integrated townships similar to those in their own homeland. But they
are very few as of now. Foreign direct investment in township
development in Ahmedabad, township development in Hyderabad,
township development in Chennai, township development in
Bangalore, township development in Pune, township development in
Delhi, is showing a rising trend, their numbers are only handful.
• With current market trends indicating a distinct customer preference

for affordable homes that also fulfill their aspirations for a better
lifestyle, integrated township projects offer the perfect solution to
both the customer’s requirement as well as the builder’s need for
assured demand.
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• The perception of township has recognized its existence in the trend
for staying with growing demand for luxury apartments in integrated
townships. The shifting necessities and standard of living of India’s
residential property buyers who have much more than just a simple
home on their thoughts, when they decide to buy that dream house.
After observing the trend we can come to a conclusion that townships

have become the most required and desired place now days even
though they cost much higher than individual buildings. Complexes
built in large area of lands with all facilities including schools,
hospitals, shopping malls, gymnasium, health spa provide the unique
living experience that people demand these days.
Townships are the next big thing in the Indian real estate
development industry; it seems, with a quiet growth in the number
of township development projects that merge in a lot of things to
make grand realty projects successful and sustainable. As land prices
peak in key cities and basic infrastructure lagging to balance with
increasing populace, real estate property developers are building cities
away from the city to facilitate better quality lifestyles.
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12.4) Impact of Green channel procedures on Township
• The Government recognizes that normal procedures for various statutory

clearances are time consuming and constitute a substantial cost overhead
for Developers. Under the Township Policy, the Government will establish
a Green Channel for ensuring fast clearances. At present the following
initiatives are proposed in the Market Based Supervision/Verification
Government will establish a market friendly and market based system for
operational zing the procedures under this policy including scrutiny and
approval of DPRs as well as monitoring and supervision during
implementation and operation of the Township. For this purpose, third
party verification/ supervision by competent professional agencies will be
the principal method. Single point nodal agency for ‘Environmental
Clearance’ Government will facilitate statutory environmental clearances
through a single point nodal agency, to be notified separately Implement
town planning norms.
• A separate and specific set of town planning norms will be issued as part
of this Township Policy. Conformity to these norms will have to be
established by the Developer in the Detailed Project Report to be
submitted for approval. Once the DPR is approved, there will be no
separate procedure for development permissions. In the case of
Townships within the jurisdiction of sanctioned Development Plans of
cities, the norms prescribed by the respective Development Plans will
apply.
• All these steps taken will lead to faster completion of projects and will
increase the efficiency of work. The system established wherein there will
be no separate procedure for development permissions will help the
developer by reducing the number of procedures.
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12.5) Issues /Changes Required in Township Development
• The issue with township is that unless and until infrastructure is

developed buyers are not going to come these townships .For this private
developer will have to develop its own infrastructure.
• I feel that it is necessary to have a regulator for the real estate sector, so
as to have control over the fluctuation of prices and reduce exploitation
of developers. The regulator is required to develop laws related to re-
development, land acquisition, price determination and many other
issues.
• There are changes required in the laws related to development

provisions. There should be special provisions for SEZs, predetermined
processes to get plans sectioned and clear acts and by-laws to provide a
boost to the real estate sector. There should be national mapping of the
land records.
• The people who are approving are not town planners; they are the junior
engineers or the assistant engineers who have no idea about the planned
these things have not changed. There should be a single window
clearance for land, transportation, police, municipality and other
departments.
• I fell that townships should be generally be located on less agriculturally

productive land and should be on a reasonable distance from existing
medium and large towns. Also it is important to develop mass rapid
transport corridors between the existing and the new townships so that
relationship between industry and commerce develops. Affordable
housing has been a concern for both state and private sector
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• Availability of adequate funds for real estate projects is crucial for
development. I feel that financing options are not sufficient when it
comes to large scale projects. Too much of funds coming in without
considering the rigidity of supply may lead to inflation in the real estate
prices. Thus a bridge between demand and supply is needed to ensure
affordable housing.
• Looking at the current scenario I feel there is need to develop affordable

housing which will be the future of this industry and this can be done
collective efforts of public-private partnership which can fulfill the
growing demand of commercial and residential space for the future India.
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12.6) Government policies and its implications
• The government plays a very important role in the development of

integrated townships.
• Government has decided to extend the External Commercial Borrowings

(ECB) facility for integrated townships, as per certain news reports the
ECB norms for integrated township has been granted by the government
to promote development of integrated townships which has lead to a
boost in financing of such projects.
• The government’s policy that allows foreign direct investment (FDI) in

township development in Chennai, township development in Bangalore,
township development in Pune, township development in Delhi has
induced all major property developers to invest in such ventures leading
to an up rise in development of such large scale projects in different
major cities.
• As we know that land procurement and inordinate delays in securing the

required multiple clearances still pose a major hurdle in the development
of such projects, government initiatives like the opening up of FDI and
ECB windows for local developers are expected to provide a much-needed
boost for township development projects.
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• In context where the rupee-dollar parity is favorable, the government’s
decision to open up external commercial borrowings for integrated
township developers will counter some of the ill effects of the credit
crunch and facilitate access to funds for the housing sector in general
The move to relax ECB norms for integrated townships, in principal, will
help in improving sentiments, accessing cheaper funding for township
projects, easing the liquidity scenario to some extent and assist in the
decongestion of cities because township development requires
substantial land which is available in the periphery only.
12.7) FDI impact on development
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• Changes in the FDI policy for township development have already
attracted foreign players to invest in public-private partnerships with
state governments and joint ventures with domestic developers
• Allowing FDI in the real estate sector will result in the following
advantages:
(i) It will provide the much-needed investment for the funds-starved
sector;
(ii) It will bring in professional players equipped with expertise in real
estate development;
(iii) The introduction of new technology and quality real estate assets will
have a demonstration effect on the local developers;
(iv) It will lower real estate costs in the long run;
(v) It will generate employment and revenue; and
(vi) It will improve the quality of related infrastructure.
• I feel that along with the benefits FDI inflows can lead to distribution of
all the profits outside the country. To guard against this, a minimum lock-
in period of three years must be fixed on investments and care should be
taken to ensure that no long-term investment is funded by short-term
capital.
• Looking at the policies for FDI laid down by the government I feel that FDI
inflows are expected to rise in the coming future in development of
integrated townships and the real estate sector as a whole. But there are
also certain barriers for entry for FDI such land acquisition Legal
problems, small individual land holdings, untraceable records and
unavailability of organized finance.
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12.8) Major conclusions-Environmental
Major Finding from the Environmental clearance norms in development

of projects are as follows
• Environmental Clearance not required for less than 20000 sq. m. of

built up area
• All Environmental Clearances for construction projects from SEAC
(State level)
• Category B1- (Townships and Area development – Item 8b) will require
EIA study. All other projects will require only Form 1 and Form 1A.
• Public hearing not required for any construction project (Item 8)
• Form 1A is a detailed questionnaire, almost a mini-EIA based on
secondary environmental data along with a detailed Environment
Management plan and environment monitoring plan and also a
disaster management plan
• May not circumvent the need for professional and expert guidance in
filling up the application.
The environmental clearance form is not complicated and is easy to

understand .As there is only 1 form it is not mundane time consuming.
These regulations help protect the environmental conditions of the

surroundings along with the development of such projects.
Nowadays environment has been a major concern in development of

such projects, hence I feel it is necessary to understand clearly and abide
by the clearance norms because many projects have been stopped due to
lack of fulfillment of environmental conditions.
12.9) Infrastructural Development Need

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Due to rapid population growth and urbanization due to the migration of
people from different parts of the country, there are gaps in the demand
for supply of housing, services and infrastructural facilities such as water,
electricity, drainage, road and other utilities.
Development plots are very expensive and not available at affordable

prices and people are forced to buy agricultural land cheaply without the
provision of basic infrastructure and services (road, water, drainage etc).
And they start demand for the provision of infrastructure after the
construction of houses.
One of the examples of unplanned settlement is the growth of squatter

settlements and slums in the urban area and substandard housing in the
fringe of cities. Lack of natural light and ventilation, inadequate water
supply and sanitation, improper access and dilapidated road condition
are indicators of substandard housing.
Large area of precious urban land is being converted in to roads and

parking areas. Conflicting land uses, unplanned and haphazard
construction, inadequate road network and inefficient transport
management are creating traffic congestion. Due to the lack of proper
road network connecting city center and semi-urban areas, public
transport cannot operate effectively in semi urban settlement.
This has lead to the emergence of Integrated Township which is a solution

to these problems and helps reduce the pressure on urban areas.
Bibliography
89
2011
Web sites
www.regionalplan-mmrda.org
www.dipp.nic.in
www.RealEstateIndiaOnline.com.
www.infochangeindia.org
www.economictimes .com
www.indianrealestateboard.com
www.gicl.in
Documents
Environmental Clearance for Construction Projects
Maharashtra Regional Town Planning Act 1966
FDI& Real Estate Sector In India
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2011
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Integrated Township Planning

SYMBIOSIS CENTRE FOR MANAGEMENT & HUMAN RESOURCE

Roll Nr . Full Name

2009A63 Ammaar Shaikh

Subject/Topic for the project (2 to 4 lines):

Project Report on Integrated Township Planning

Research Objective (3 to 5 lines):

To prepare a comprehensive analysis of the different aspects involved in integrated township

Deliverables of the project (Not more than 5):

Following are the aspects that will be covered in the project

Remarks by Dr.Patwardhan/Prof Date:

Chapter 4-Government Role..............................................................................................22

Part 2-Internal factors/issues Of Integrated Township

Chapter 8-Legal Issues /Policies.........................................................................................44

Chapter 9-Environmental Issues.......................................................................................55

Chapter12-Case Study-Magarpatta City...................................................................69

The report provides details of different aspects involved in integrated township

The report provides the FDI policy of the government in relation to

General requirements for development of townships as well as different aspects

The report also gives details of Development control regulations as well as

Land Acquisition being an important aspect in development of integrated

The report provides a detail understanding of each dimension involved in

Nowadays looking at the increasing pressure on urban areas in relation to

The report provides a detail analysis of the internal factors involved in

Township planning involves the different criteria to be fulfilled for construction

There are legal issues/norms which are in involved in development of township

Environmental issues nowadays play a very important role in any infrastructure

Land acquisition is a major concern in development of integrated township. It is

To provide comprehensive analysis of the different aspects involved in

The secondary objectives of the project is to understand

• The concept of integrated township Planning

Definitions: Integrated Township means a self-contained township planned

An integrated township is a community living platform where the concept of

Ideal size and distance from a city

As per Government definition "Integrated Township includes housing,

In Gurgaon (Haryana), Maharashtra and Bangalore, the minimum area for a

Some of the top 10 Integrated Township destination cities in India as per

Maharashtra - Township Development

Project Name Project Location Status Name of Developer

Garodia Nagar Ghatkopar East Done Garodia Group

Aamby Valley City Mumbai Done Sahara Infrastructure &

Sahara City Wardha road, Ongoing Sahara Infrastructure &

Hiranandani Pune Done Hiranandani Developers

Veena Samruddhi Mumbai Upcomi Veena Developers

Dwarka Chakan-Talegaon Ongoing Naiknavare Developers

Yashopuram Pimpri-Chinchwad Done Yash Promoters

Yashomangal Pimpri-Chinchwad Done Yash Promoters

a) Merits -A township is self sufficient, they provide good living standard

• Integrated townships provide solutions to increasing pressure on existing

• Advantage to developers-One of the biggest advantages of investing in

• Townships also offer the prospect of higher appreciation, as these

• Employment Generation –It provides a lot of employment to both

• In short, Investment in townships, housing, built-up infrastructure and

b) Demerits of Integrated townships

• Entry barrier-Integrated Township Development have high entry barriers

• Generally the maintenance cost of such townships is high compared to

3.1) Domestic Financing Options

a) Commercial Banks, PSUs

b) Alternative Financing Mechanisms

• Private Sector Participation

Two main instruments used to acquire foreign funds for Township

a) ECB (External Commercial Borrowings):External Commercial Borrowings