Realty Impact of Highway Projects’ revival in BJP-ruled states
The Narendra Modi-led NDA government has swung into action right away following their resounding victory in the Lok Sabha elections. True to his word, Modi is leaving no stone unturned to ensure that the faith that was reposed in him by the people of the BJP-ruled states would be suitably rewarded. The Modi government has already begun the process of removing impediments to investments in large projects, particularly in BJP-ruled states. This is expected to have a major impact on the realty market along areas in the vicinity of these projects.
Major projects revived
There are many highway projects in these two states that have been in the limbo for long due to not being cleared by the government. One such stalled project in Rajastan is the 555-km long stretch on NH-8 between Kishangarh-Udaipur and Ahmedabad, the construction of which was being carried out by the GMR-group at an estimated investment of Rs.7,700 crore. The company had pulled out of the project citing the lack of approvals in implementing it.
In a similar occurence, the Shivpuri-Dewas expressway in Madhya Pradesh was stalled after the GVK group pulled out of the project. The implementation of both these projects was stalled due to the lack of clearances from the Environment and Forest departments even though the liquidity crunch faced by both these companies were also responsible for these projects being stalled.
Besides these, another major stalled project that was taken up for discussion was the 225-km Delhi-Jaipur expressway on NH-8. The delay in completion of this project has hit tourist inflow to the Pink City in a major way. By reviving these mega projects, the government will ensure that sufficient funds are ploughed into these projects and they get the necessary clearances from the Planning Commission.
Impact on Real Estate
Considering that the stalled infrastructure projects that the Modi government has taken up for revival are all major projects, their impact on the Real estate sector along the project corridors could be considerable. The implementation of these long-delayed road projects would inevitably result in the development of the infrastructure along these project corridors. This will lead to many prominent residential project developers embarking on prestigious residential projects along areas in the vicinity. Based on the infrastructure facilities available, the demand for residential property could also sky-rocket, thereby resulting in considerable appreciation in property values.
With regards to the highway project between Kishangarh-Udaipur and Ahmedabad, some of the areas along this corridor which could be positively impacted by this project are Chachiyawas, Ghooghra, Ajmer, Saradhana, Jethana, Beawar, Kotra, Deogarh, Kuanthal, Amet, Rajsamand, Nathdwara, Sukher, Bhuwana, Udaipur, Kotra, Rishabhdev, Kherwara, Himatnagar, Sonasan, Prantij, Dabhoda, Valad, Sughad, Motera, Sabarmati, Usman Pura, Navrangpura and Mithakhali.
Some of the areas that could be developed as a result of the Shivpuri-Dewas expressway in Madhya Pradesh are Kolaras, Digod, Miana, Guna, Raghogarh, Kumbhraj, Biaora, Pachore, Sarangpur, Shajapur, Maksi and Jhonkar.
The prominent areas along the Delhi-Jaipur Expressway that could be impacted as a result of the completion of the project are Pataudi, Bhiwadi, Rewari, Bawal, Shahjahanpur, Behror, Kotputli, Mandha, Bairat, Shahpura, Manoharpur, Manpura and Jhotwara.
Reasons for project delays
During the UPA 2-government’s regime, several road projects across the country were stalled due to land acquisition issues as well as for want of clearances from the Central government. According to data complied by the Planning Commission, as many as 58 road projects across India are facing implementation delays due to various reasons. They include projects in states like Haryana, Punjab, Rajastan, Madhya Pradesh, Jharkand, Andhra Pradesh and many states in the North-east. In Assam and other North-eastern states as many as 18 road projects are facing the prospect of being abandoned due to inordinate delays.
Project revivals expected
Among BJP-ruled states, Modi’s bastion, Gujarat also features in a list of 13 states where a large number of infrastructure projects have been stalled for want of regulatory clearances. Other BJP-ruled states include Rajastan, Madhya Pradesh and Chattisgarh. Chattisgarh has as many as 31 stalled infrastructure projects with an estimated investment of Rs 2,00,000 crore. This is followed by Madhya Pradesh with 18, Gujarat with 14 and Rajastan with 12 projects. With road projects in Madhya Pradesh and Rajastan being taken up for implementation, it is expected that those in Gujarat and Chattisgarh would soon be send for the Prime Minister’s approval. With Assembly elections round the corner in many large states like Maharashtra, J & K and Bihar, which have send BJP representatives or its allies to Parliament, the Modi government will be hoping that the infrastructure development measures implemented in these states will turn the electorate in favour of the BJP, come the Assembly elections in these states.
