By Staff Reporter
Mahindra & Mahindra (M&M) plans to set up a special economic zone (SEZ) in Maharashtra in association with the state government‘s investment arm, Maharashtra Industrial Development Corporation (MIDC), reports Business Standard.
The SEZ is the auto majors third such project in the country and first in the state will come up at Karla near Lonavala. The company and the state administration did not dislcose the details of the SEZ projects.The Centre had last week cleared investment of Rs 100,000 crore for setting up SEZs, having a total area of 40,000 hectares. The SEZs have the potential to generate 500,000 jobs. Reliance Infrastructure, Bajaj Auto, Bharat Forge, Biocon, Satyam Computer, DLF Universal, Jubilant Organosys and Adani group are some of the major companies coming up with SEZs.
The M&M group has already completed a SEZ in Chennai and is currently developing another in Jaipur. The Chennai SEZ is spread over 1,400 acres built in partnership with Tamil Nadu Industrial Development Corporation (Tidco).
As far as investors and speculations are concerned, the situation is different from 1995 boom. Actual users are having money to save under the Income Tax exemptions under Housing Finance schemes. Going in for second home instead of paying taxes is a better option. Salaries are rising and easy home loans are available hence the affordability have increased many folds since 1995. Only hitch is margin money for fill the gap between Loan to value and Actual value of the property. This also is not great hurdle since private finance and institutional finance options are available.
REITS and mutual funds will certainly fuel in the property market will hold its value for next three years when bifurcated supply comes in the real estate market. Hence she will continue to grow as of now. A small correction phase is eminent when investors roll over the settlements but it will be a minor correction.