Real Estate International Development Summit 2005
November 11, 2005, New Delhi, India

Speech by Shri Bhupinder Singh Hooda, Hon'ble Chief Minister, Haryana

Kumari Selja, Union Minister for Urban Employment and Poverty Alleviation, Mr. Anil Baijal, Secretary, Ministry of Urban Employment and Poverty Alleviation, Dr. Amit Mitra, Secretary General, FICCI, other distinguished delegates, Ladies & Gentlemen !

I feel privileged to address this august gathering on the occasion of the International Real Estate Development Summit. I thank FICCI for providing us this forum to share our views on the Real Estate Development scenario in India.

Real Estate Development has emerged as a principal growth engine for economic development in this country. With the economy is on an upswing, the emphasis today is on bridging the massive backlog in infrastructure and housing sectors. This coupled with increased paying capacity, rapid urbanization and policies like FDI in urban development sector has made Real Estate Development a lucrative investment option. The Real Estate Development sector has the capacity to pay for itself without straining the limited resources of the State Govt. However, to ensure the desired development, it is necessary to have a clear view of the proposed development and a regulatory framework with legal backing in place. On this basis, Haryana has been able to invite private sector to invest in the State and we are proud to say that as of now the model followed by State Govt in this regard is being followed by other States also.

The geographical location of the Haryana is such that it encompasses Delhi-the National Capital on three sides. Its other towns in rest of the State are also well connected. Therefore, the entire State offers good investment opportunities for Real Estate Development. The results are for everyone to see at Gurgaon, Faridabad and Panchkula. Sonepat is also making progress in this direction.

Besides this, there are other factors responsible for large scale private sector investment in the State.

The Development Plans for all important towns in Haryana have been prepared for the prospective year 2021 to divide the entire urban land into various land use zones like residential, commercial, industrial etc. On the basis of this development plan, the State Govt agencies as well as private sector investors undertake development in the State. Similarly, legal framework in the form of Haryana Urban Development and Regulations of Urban Areas Act, 1975 and Rules, 1976 are applicable in the State. This Act gives the regulatory framework for private investment in the State. The framework is further supplemented by executive instructions wherever necessary .

A responsive techno-administrative set up which responds to the national and international trends in urban development is the biggest asset of the State. All investment proposals are viewed as an opportunity by the State Govt. and are treated positively keeping in view the interest of the State as well as of the entrepreneurs.

However, in order to avail such opportunities, the Government of Haryana is creating conditions that are conducive to more investment. We have a number of development plans in the pipeline at present. One such opportunity is the Development of the Global Corridor along Kundli-Manesar-Palwal (KMP) Western Expressway. In this corridor, top class infrastructure facilities that will be at par with international standards are being created. These are meant to meet not only the needs and dreams of the investors but also those who will be living there. Further, there will be a number of specialised economic activities in this corridor, making it growth centric. Each lead economic activity is envisaged to be the focus of a self sustaining specialised and independent cluster city. A number of such cluster cities integrated under one umbrella will provide the overall spatial form of the global urban corridor. In between these nodes, recreational, forest and green area will be developed .

We also have an ambitious plan of developing Rajiv Gandhi Education City at Kundli, Sonipat. We are in the process of acquiring about 1500 Acres land abutting the National Highway-1 and KMP Western Express. This knowledge city will have quality infrastructure and support services so as to invite top class educational institutes of the world to setup campus there. This unique knowledge city will have a cutting edge over others and frontier technologies devoted to research in the emerging areas of learning. Needless to say that the Government of Haryana will like to have not only the best of infrastructure here but also excellent living conditions for the inhabitants of the campuses.

In order to improve connectivity between the National Capital and adjoining areas, it is proposed to extend Metro to Gurgaon for which the State Government has given its consent. National Highway No.8 from Delhi to Gurgaon is already being converted into eight lanes expressway. In addition, we propose to introduce Rapid-Mass Transport system between Delhi-Faridabad, Delhi-Panipat, Delhi-Rohtak as well. This will open up new avenues for investment in real estate development. We are also exploring the feasibility of setting up an International Airport at Asaudha in Rohtak. If this project comes through, it will, apart from decongesting the traffic at the Indira Gandhi International Airport of Delhi, give a big boost to the development and growth of the State.

Ladies & gentlemen, I am conscious of the fact that our hinter land has also to be opened up for development. In order to achieve this objective, we propose to upgrade our State highways connecting various towns like Jhajjar, Rohtak, Jind, Kaithal, Ambala and Yamuna Nagar. This initiative will provide tremendous boost to development of these areas & provide ample opportunities to real-estate investors.

In addition, three new townships near Sampla, Badli-Jahangirpur and Ganaur-Samalkha are to be developed on the pattern of modern townships. They will not only help in decongesting the national capital but in the process, also become growth engines for development of the surrounding areas. It also need to be remembered that we intend to provide the most modern transport system to all these areas.

I would like to point out that in June this year the Government of Haryana announced its new Industrial Policy. Briefly, the objective of the policy is to generate employment, create investment and to facilitate dispersal of economic activity all over the State. To achieve the objectives of this policy, a comprehensive plan for the development of infrastructure all over the State has been drawn. Special Economic Zones are being setup to give boost to exports. Three new Industrial Model Townships (IMT), apart from the one at Manesar, are to be developed during the next five years. One of them is to be located at Faridabad. We expect public and private sector investment, exclusively or in partnership, to achieve the stated goals. The Haryana State Industrial and Infrastructure Development Corporation (HSIDC) has already envisaged one such zone over an area of 3000 acres at Garhi Harsaru, New Gurgaon. The State Government shall also be promoting public and private sector initiative for establishing SEZs on KMP Western Expressway artery, NH-10, NH-8 and NH-2. I hardly need to point out that these offer excellent opportunity for the real estate developers to make their contribution visible.

The development of Mega Petro Chemical Hub would not have escaped your notice. The Indian Oil Corporation Limited has implemented two mega projects at Panipat, utilising captive feeds stock from its refineries. In view of the availability of requisite raw material for polymer and other plastic related industry, Industrial Park in and around Panipat for the development of downstream industries is being developed. The State Government, in collaboration with the Central Government, is also setting up a Central Institute of Plastic and Engineering Technology. The opportunities that await us around the corner can be easily imagined by all of us. In addition, the State is in an advance stage of creating specialised industrial estates at strategic locations. Thus there will be a Food Park at Kundli (Sonipat), Gems and Jewelery Park at Udyog Vihar, two Apparel Parks at the SEZ at Gurgaon and Barhi in Sonipat and Foot Wear and Leather Garments Parks at Karnal and Bahadurgarh.

Let me, at this point, again emphasise that Haryana has the unique distinction of surrounding the National Capital from three sides and that forty per cent of the National Capital Region falls within Haryana. This is both a challenge as well as an opportunity. We are proud of the fact that we have converted even this challenge into an opportunity which is clearly visible in the development of Gurgaon. Infact, Gurgaon has already emerged as an outstanding example of private participation in real-estate and urban development. Today the life style offered by Gurgaon draws to it not only companies like Maruti Udyog, Hero Honda, Modi Alcatel, Whirlpool India, Bharti Telecom, Perfetti India, DCM Benetton, TDT Copper, Honda Motorcycle and Scooters but also global giants like Coke and Pepsi. Not only the Malls of Gurgaon draw the best of the clients of the capital but also the residential areas developed are a big draw with the new generation.This momentum needs to be sustained. I am aware that the pace of urban growth in Gurgaon has put the existing infrastructure under serious stress. We are already in the process of implementing projects to strengthen the infrastructure within investment of Rs. 750 crores. I need not overemphasise the fact that the development plans that I have briefly unfolded before you offer you an opportunity to contribute in the making of tomorrow.

In the present times, people aspire for quality in all spheres of life. Most of all in their housing and their leisure hours. The State Government is geared for building the infrastructure and support system for the future.

Finally, Ladies & Gentelemen, I pose before you the question whether you are also prepared to be a partner in realising the dreams of a rosy tomorrow ?

Thank you,
Jai Hind !