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Articles: Development | Potential Hyderabad !!
- Mr. K N Simha
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HYDERABAD ~~ HIGH-ERA-BAD
Many investors are worrying and getting scared of investing in Hyderabad, because of the ripples created by the separate Telangana movement. Real Estate experts are ruling out the fears of investors to invest in Hyderabad, based on the developments happening in the next three to five years in the City.
There are different kinds of investments like Gold, Deposits, Bonds and Debentures etc. Out of all these investments it has been proved that the investments in real estate are safe, secure and profitable irrespective of the place and the governments that are ruling. Land prices are continuously growing since decades because of the growing needs of the ever increasing population for housing, industries, business establishments etc., resulting in enormous demand for land as it is a limited source.
Places like Hyderabad/Secunderabad twin cities have attracted many investors for the last 10-12 years because of their potentiality in several sectors like Information Technology, Bio-technology, Jewellery, Education, Tourism and many other industries.
Hyderabad has emerged as a premier center for information technology, education and research, and is emerging now in the field of biotechnology. Today it has the distinction of the most happening metropolis in the country. The concentration and diversification of such large specialty activities besides the normal metropolitan functions and characteristics have been continuing to attract significant migrants to the city. The growth cannot be stopped and it will be continued further by continuous efforts by the agencies like MCH, HUDA, CDA, HADA, Metro Water Board and many other agencies.
Hyderabad has got several merits as:
•It is a major IT, educational and industrial center
•It has the strategic advantage of being located near the center of India
•Hyderabad is conveniently located for an air link-up with the Far East and the Gulf.
•Hyderabad is state’s business and trade center.
•Hyderabad is becoming both software and a knowledge hub.
•The proposed international airport at Hyderabad would enhance the viability and growth of several industries like Software, Hardware, Pharmaceuticals, IT enabled services etc.
HYDERABAD ADVANTAGES:
International Airport:
The State Government has taken the strategic initiative for establishment of the Hyderabad International Airport (HIA) at Shamshabad over an extent of about 5400 acres of land. This site is located at about 21 Kilometers southwest of Hyderabad city and near the National highway No 7 to Bangalore.
The development of International Airport is envisaged in 2 phases viz., Phase-I expected to be completed by end of 2008 and Phase-II by 2010. The development comprises the main Airport Complex and the appurtenant activities like cargo complex, free trade zone, hotels and related activities.
With a view to promoting and securing planned development of the areas in and around the proposed IA at Shamshabad, the state government has constituted a statutory authority called the Hyderabad Airport Development Authority (HADA) to serve the purpose. The jurisdiction of HADA is about 458 Sq.Kms and covers 70 revenue villages and 19 hamlets all falling in Ranga Reddy District.
The total population of HADA area is about 1.54 lakhs as per the 2001 census while the population estimate for the plan period of 2021 is estimated for about 20 lakhs.
The HADA Master Plan has been prepared with emphasis on being a totally development friendly plan. The development regulations are made simple and development friendly by allowing all activities in all zones except those which are industrial and hazardous.
The HADA area and the Master Plan proposals have been planned to cater to not only the proposed IA and support activities but also to promote as a growth center of the metropolitan area with good straight and wide roads, encouraging Sector-type residential townships and allied developments through licenced developers and other technical personnel, with freedom in choice and location of activities on one hand, and responding to the sensitivity of the environmental concerns of the area on the other hand.
The areas for residential and other support socio-economic and community activities have been proposed on the Sector type development concept, which is prevalent in Chandigarh, Noida, Gurgaon, New Mumbai etc.
A total number of 273 Sectors with rectangular grid iron pattern have been proposed, with an average size of 200 acres and population ranging from 4000 to 20000. The main public amenities, social commercial and community facilities are proposed at Central squares of 25 acres each. Totally 49 central squares have been proposed each serving cluster of about 4 to 6 sectors.
Besides these, the plan gives a wide range and choice and flexibility for sector level and local level facilities.
The circulation network is well-defined as Primary roads (5 roads of existing highways and proposed outer ring road of widths ranging from60-90 Mts and secondary road network of 32 inter-sectoral roads of 36 mts width linking the various sectors and other development areas of HADA. While the arterial roads (24 mts wide) and sub-arterial roads (18 mts wide) define the various intra-sectors and facilitate definite hierarchy of movement and preserve the character of the various sectors. Proposals are given for extending the Hyderabad Rail System (Multi Modal Transport System or MMTS) within HADA area along the outer ring road from Cyberabad to Hayatnagar through the Airport and Hardware park (This is located between the Srisailam Highway and Nagarjunasagr Highway). The total major road length proposed is 709 Km.
AIR CARGO:
Because of the air cargo infrastructure at the proposed international airport, there is a huge scope for industrial development in bulk drug manufacturing, hardware peripherals etc., similarly other industries like floriculture, garments, leather products and gems and Jewellery will accelerate after the new airport is built.
There are about 60 EOU’s operating in and around Hyderabad, and more are coming up due to the expected raise in the exports directly from Hyderabad to various countries.
AIRCRAFT MAINTENANCE:
Hyderabad can exploit the global move to locate aircraft maintenance centers in cheaper markets especially, since the Civil Aviation Ministry has mooted Hyderabad as the maintenance base for regional aircraft. Jet airways has short listed Hyderabad for location of its maintenance center.
An engineering and maintenance center is proposed along with the new International airport at Hyderabad. It could cater to the requirements of regional aircrafts in addition to the Boeing-737 family. It could focus on airframes, engines, cargo conversions, interiors and completions, and hush kitting/reengineering facilities.
For the above facilities, 3 hangars are required with a land requirement of 250 acres. The approximate cost of these facilities would be 50 million dollars.
AVIATION TRAINING INSTITUTE:
There is a shortage of training facilities in India, including many pilots and others to undergo training abroad, in the process wasting valuable foreign exchange. Demand for aviation academies and flight training schools has grown fast with traditional sources of professionals – the military- drying up.
Hyderabad, with its advantage of hosting a couple of air force stations (Hakimpet & Dundigal) and the A.P Flying Academy is uniquely placed to reap the benefits of the aviation training industry.
The aviation training center at Hyderabad is conceptualized to include facilities for graduation/post graduation programs, research to support management development programs and consulting services, simulator services and a crew leasing organization. Around 250 acres of land is required and the project cost is estimated at around $ 40 million.
FLIGHT CATERING:
Currently most of the meals uplift by planes passing through Hyderabad is from Mumbai. The traffic handled by the HIA is around 15000-20000 per day. Assuming that around 40 to 50% of the flights originate from Hyderabad.. there would be a catering demand for around 7500 to 10000 meals per day. The capacity of the Flight Catering Centre (FCC) could be around 25000 meals per day. The capacity could be installed in phases. In Phase-I, a modular unit of around 10000 meals per day capacity could be set up which could be increased to 25000 meals per day depending on the growth in passenger traffic.
FREE TRADE ZONE / FREE ECONOMIC ZONE:
The new international airport at Hyderabad would create an opportunity to locate a free trade zone oriented towards light engineering, food processing in the vicinity. An important part of the FTZ would be service sector oriented, especially focused on IT enabled services. Dubai intends to import software personnel to work in its FTZ.
The proposed FTZ will also aim at attracting large MNC’s in the IT hardware business. Investment for setting up an FTZ, covering land development, construction, furnishing, hardware, communication and networking equipment would be about Rs. 2000 crores. The overall land requirement for such a facility would be at least 125 acres.
FORMULA ONE RACING:
When the project was reaching the final stages of MOU, there was a change of government in the State. As the present government is not so keen in this project, set up of this project has become doubtful. Had this project come, there would have been plenty of job, business and entertainment opportunities in the city. This would also has become one of the major reasons for capital appreciation in the real estate industry.
Formula One project would have brought in lot of economic benefits and accelerate developmental activities in the area. Formula One is the second most favourite sport among the youth. A Grand Prix event requires 700 flights to bring spectators and participants. About 200 jumbo jets are required to ferry the equipment for the race.
The Formula One racetrack and allied infrastructure and facilities required 1,300 acres of land on the outskirts of Hyderabad. The cost for setting up the racetrack alone was estimated at Rs 600 crores and 400 more crores for other infrastructure facilities. The project was expected to create 20,000 jobs directly and 50,000 jobs indirectly.
This race-track has the potential to employ about 70,000 people in and around the city and needs a sustained effort. It is estimated that the spin-off effect of such a major project is immense and could lead to lots of investments and also spur the international tourist traffic since it is estimated that about 3,000 hotel rooms would be required for the organizers and participants of Formula One race and another 7,000 to 8,000 rooms to accommodate the visitors who would come to witness the race.
Initial discussions between AP government and Formula One promoter Bernie Ecclestone and other officials were held when the former chief minister Mr. Chandrababu Naidu was in Italy to witness the Grand Prix at Monza in September last year. Formula One already has 17 venues and Hyderabad if chosen by the promoters, would have been the 18th venue.
Had the Formula One project was set up, it would have generated lot of investment and would have given boost to hotel, tourism, entertainment industry and business. The government would also get more revenues and the area in and around Hyderabad would be transformed.
If the plans of our former Chief Minister Mr. Chandrababu Naidu did materialize, we could well have seen Michael Schumacher & Narayan Karthikeyan zipping past us on racing tracks in the State.
GENOME VALLEY:
On the lines of the Silicon Valley in Bangalore, in a major boost to biotechnology, the A.P state government is developing a 600 sq. km Genome Valley on the outskirts of Hyderabad.
The project, one of the biggest of its kind in India, will include a world-class biotech park at Turkapally, 30 km from Hyderabad on Karimnagar Highway. The valley will be spread over the four areas of Medchal, Shameerpet, Keesra and Uppal of Ranga Reddy district.
As Andhra Pradesh is already strong in biotechnology, around a third of the country's bulk drug production comes from Hyderabad only, and biotechnology would be able to grow rapidly in the state leveraging the strengths in the field of bulk drugs, pharmaceuticals and IT and it will be easy to develop the sector in a big way in the State.
The Genome Valley will come up close to several research and development institutions like the ICICI Knowledge Park, Biotechnology Park, several biotech companies, scientific research institutions like the Centre for Cellular and Molecular Biology (CCMB), the Indian Institute of Chemical Technology (IICT), the National Institute of Nutrition (NIN) and the Satyam Software Development Centre.
The project is one of the key features of the Biotechnology Policy 2001 announced by the Andhra Pradesh state government. As part of the new policy, biotech companies have been offered several tax incentives, including chopping down sales tax rates from eight and 16 percent to just one percent. The companies have also been offered land for biotechnological parks and bio-informatics.
If a company creates one job in the Genome Valley, it will be given a concession of Rs. 30,000. If a job is created at other locations, it will get a concession of Rs 20,000. Land will also be provided for training institutes and housing facilities in the valley.
The state government will also set up Rs. 500 million Biotechnology Development Fund and APIDC Venture Capital Ltd to facilitate funding for biotech startups.
M V Rao, a senior member of the Biotechnology Advisory Committee, said the inventory of the bio-resources in the state, conservation of biodiversity, encouragement of research and development would be major components of the biotechnology strategy.
GOLF COURSE:
Research studies have established a strong perceived need in Hyderabad for an international quality golf course, which will include facilities, which the entire family can associate with. Besides, Hyderabad receives 100,000 international travelers every year once the HIA is set up.
The Golf course could be located near to the proposed international airport. It would initially cater to foreign tourists especially the Far East Asians, and gradually entrench itself with the local community via a training academy, a 9-hole course, a putting course and a golf school.
The golf complex would require around 200 acres, and cost around Rs. 70 crores including Rs. 20 crores for cottages, chalets etc.
HARDWARE PARK:
Government of Andhra Pradesh has clearly recognized the strategic importance of Information Technology in creating a competitive economy equipped to face the challenges and exploit the opportunities of the new millennium. The state of Andhra Pradesh in general and Hyderabad in particular is a favoured destination for the Information Technology Industry. Spread over 5000 acres of land located at a distance of 14 Kms from Hyderabad and adjacent to the proposed International Airport, Hardware Park with well developed infrastructure will be an ideal location for Hardware, Software, Telecom, Financial, Insurance and Logistic Services. The park will provide one stop solution to the HITECH Companies for all their business and social needs. Andhra Pradesh Industrial Infrastructure Corporation on behalf of the Government of Andhra Pradesh is seeking investment from private sector partners to develop the Park in a joint venture.
ICICI KNOWLEDGE PARK:
Knowledge holds the key to creation of wealth. Fundamental research holds the key to new knowledge and is the crucial determinant for competitiveness. Today millions of dollars are being spent on research for inventing new products, processes and services. As the cost of research in developed countries keep on increasing, the differentiating factor for determining a research location would be quality of manpower and cost.
Indian scientists have played a key role in knowledge driven industries the world over. But this is only the tip of the iceberg. The vast potential of India's trained manpower base remains untapped. Also, the cost of doing research in India is as low as about one fifth of that in USA due to both low manpower cost and basic infrastructure. Small wonder then that companies around the world are looking to India as a preferred source for the knowledge worker.
ICICI Knowledge Park is the gateway to this vast pool of talent. It offers world-class infrastructure and support facilities for business-driven research. The Park is developing for the first time in India would enable collaboration between sci-tech academic and research institutions and the industry. This is where the finest scientific minds will come together to drive business in the knowledge driven millennium.
The Park is situated in an aesthetically landscaped lush green 200 acre campus in Turkapally, near Hyderabad. The project is being developed in phases. The first phase consists of 10 laboratory modules, each of around 3,000 sq. ft. area. Construction for phase II with 16 laboratories each of 1600 sft and expandable to 3200/5000 sft is nearing completion.
The Park offers fully air-conditioned modular laboratory units with standard facilities and services for establishing state-of-the-art research centres for conducting advanced scientific research.
While the Park encourages research and development in all Knowledge intensive fields, the current focus of the Park is in the areas of biotechnology, pharmaceuticals technology, specialty chemicals, new materials, information technology and telecommunications.
KRISHNA WATERS:
A major milestone was achieved in the supply of drinking water to the twin cities when the decades-old proposal of bringing Krishna waters to the city has appeared in reality. The 2,200 mm diameter MS pipelines from Kodandapur to link the city water supply system at Santoshnagar X Roads are being laid for a distance of about116 km in a record time of 12 months by spending about 820 crores.
The people of Hyderabad will now get an additional supply of 45 MGD (Million gallons per day) in addition to the 162 MGD being supplied to the metropolitan area from the four major reservoirs viz. Himayatsagar, Manjira, Osmansagar and Singur.
As this is a major break through in the supply of safe drinking water to the city, the metro water board is now looking forward to bring the supplies to the sub urban areas also.
If this turns in reality, there will be a major spur in the housing activities in the sub urban areas results in high capital appreciation.
MULTI MODAL TRANSPORT SYSTEM (MMTS):
Hyderabad has a new attraction for mass transportation by trains called Multi Modal Transport System (MMTS). This new transportation system is started to curb the growing traffic and pollution in the city. This system helps the people of Hyderabad to travel between the twin cities at blazing speeds in a healthy and eco friendly environment thus saving lot of time and money.
The project cost is being shared equally by the Ministry of Railways and the State Government. It involves low capital cost and is environment-friendly. It would also help integrate the rail and road networks in the suburban sections and serve the needs of people better. Under this project multiple electric trains would be introduced and a comprehensive transport plan for connecting new areas and the international airport coming up at Shamshabad was proposed through private participation.
Under this project the existing railway lines and stations would be modernised and it would give connectivity to new areas. It would also facilitate elevated rail and metro rail transport systems if necessary in future.
As this system is already put in use in the sections like Secunderabad-Lingampally, Secunderabad-Falaknuma and Secunderabad-Manoharabad many people are using this network to reach their destinations from their respective areas.
As this facility is available to many sub urban areas many people are moving to suburbs thus reducing the density of population in many areas and helping in set up of new settlements and colonies thus developing the sub urban areas.
OUTER RING ROAD:
The ever-expanding residential zones outside the city limits will soon have better road connectivity through the proposed outer ring road from Miyapur via Shamshabad, Hayatnagar and back to Miyapur.
The 152-km outer ring road taken up by the HUDA would connect Hi-Tec City, Games Village, IIIT, ISB, proposed international airport at Shamshabad, Hardware Park, Singapore Township, Bio-tech Park, Apparel Park etc., and also NH-7 and NH-9 and six State highways.
It would relieve congestion in the metro area, facilitate development of satellite townships, and provide linkage to the proposed MMTS, MRTS and bus systems.
The ring road would be taken up phase-wise. The Rs.161-crore phase-I, measuring 28 km, will criss-cross along the city peripheries from Miyapur to Shamshabad passing through Hafeezpet, Kondapur, Gachibowli, Narsingi and the A.P. Police Academy. This stretch has been designed to pass close to major activity hubs, including the Indian Institute of Information Technology (IIIT)
Hitec City and the Gachibowli Sports Complex. The salient features of the stretch include a flyover at Gachibowli and a bridge near Narsingi.
The later stages of the 300-feet-wide roads, planned with enough spaces on either side for greenery and footpaths, has been designed to cover 34 km from Shamshabad to Hayathnagar via Mankal, Tukkuguda, Nadargul and Injapur. From Hayathnagar, the 24 km third phase will pass through Marripalli, Narapalli, Chengicherla and Rampally till Nagavaram. In the final leg, work will be taken up for 23 km from Nagavaram to Suraram via Dammaiguda, Turkapally, Kompally and Dulapally.
The outer ring road, once in place, is expected to reduce the congestion on the city roads and also reduce the pressure on the inner ring road by catering to a considerable volume of traffic. According to an estimate, over 34,000 vehicles per day will ply on this road that facilitates an average minimum speed of 80 km per hour.
The HUDA was ready with estimates and designs while it engaged Delhi-based Feed Back Ventures for an environment impact study, not only from the point of view of pollution, but also to analyze socio-economic factors like income and employment generation and also traffic volume study. Importantly a revenue model would be developed for all the phases to get back the investment made on it, besides ensuring its maintenance.
The HUDA would auction 1,000 acres of land in Jawaharnagar, and 100 acres of prime land near Shamshabad to generate resources for the work. The road network would be developed immediately for Jawaharnagar, to be followed by auction of sites.
It is estimated that the entire road will be completed in a period of 3 years. Once the road is completed, there is enormous chance of new settlements and new housing layouts along side of the road.
SATELLITE COMMUNICATION CENTRE:
The Government of Andhra Pradesh, in collaboration with Indian Space Research Organization (ISRO), intends to create a satellite-based network infrastructure for providing connectivity throughout the State including remote areas. The satellite based communication network will be utilized in areas like Distance Education, Telemedicine, Agricultural extension, Human Resource Development, E-Governance, Awareness-building among self-help groups.
The project involves setting up of an earth station and studios, currently proposed to be established in the BR Ambedkar Open University campus, and establishment of receiving equipment at the remote ends like high schools, degree colleges, polytechnics, professional colleges, hospitals, Rythu bazaars, market committees etc. at an estimated cost of Rs. 185 crores.
The satellite based network infrastructure is proposed to be created in a phased manner. Initially a pilot project has been taken up in Ku-band through a transponder of INSAT 3B. Eventually it is proposed to launch 6 channels by completing an earth station and a studio in the premises of Dr. B.R. Ambedkar Open University, Jubilee Hills, Hyderabad. Once the earth station is established, it is possible to provide interactive communication capabilities in the implementation of the various development programmes.
The project implementation involves considerable expenditure in creating the assets as well as their maintenance. Content generation and channel management is also a highly involved exercise calling for commitment of sizeable resources on a continuing basis.
Andhra Pradesh has embarked on an ambitious plan of using Information Technology in all aspects of development and governance. The Vision 2020 envisages Andhra Pradesh to leverage Information Technology to attain a position of leadership and excellence in the Information Age and to transform itself into a knowledge society. Flowing from the vision are a set of objectives of the I.T policy, namely, economic development of the state, improving quality of life of citizens and providing good governance. The state has taken a number of initiatives to achieve the above objectives. This project is one such initiative taken by Government of Andhra Pradesh towards realizing its Vision.
The pilot project is under implementation catering to 250 sites in the State from March 2001. The Earth Station at Dr. BRAOU has been installed and commissioned under by M/s BEL under BOOT model and regular telecast is now from this Earth Station at Hyderabad daily from 08:30 to 14:40 hrs since 1st April'02. Since 1st July'02 the transmission time has been extended up to 17:30 hrs. One channel for live transmission has been tested and kept ready. Teachers training for live transmission are in progress.
FINAL WORD:
During a Survey conducted recently by the print media, many Entrepreneurs, Software professionals, Marketing personnel, Medical representatives, Self-employed professionals like Chartered Accountants, Doctors and Lawyers have expressed their strong will to settle down in Hyderabad because of its vast potential with 6 million people for their livelihood and ultimately to reach their goals in life.
Based on all these, the fears in the minds of Investors are baseless and temporary and Hyderabad always has tremendous potential for any kind of new developments as it does not have any natural boundaries like sea, hills etc. and is being developed circularly in all possible areas.
It is advised that this is the right time for real estate investment as there are no frequent revisions by the promoters and builders like earlier, in the prices of land, buildings and apartments for the last 6-9 months.
This is a small effort to clear the doubts and fears in the minds of people to invest in Hyderabad and I welcome your valuable suggestions.
For genuine investment advices, please feel free to contact me at:
narasimhamkavi@yahoo.com (or) narasimhamkavi@rediffmail.com
91-9440565665 (Mobile)
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