Karnataka Budget 2018: State's Infra Push To Help Realty
The overall development of cities and states, schemes such as the universal health coverage, free LPG gas as well as paying an ear to the woes of dryland farmers in the state, have been the key highlights of Karnataka Budget 2018-19. The 13th state budget tabled by Chief Minister Siddaramaiah had many other grants as well. Although real estate did not receive a dedicated, water-tight funds, here is how some funds devoted to infrastructure would help work on Bengaluru's liveability quotient.
*Bengaluru's Namma Metro is on a growth path. The state government has announced that the Bengaluru Metro Phase-3 would be given due attention and that the project report for the 105.55-km line would be paid heed to. With the line from JP Nagar to KR Puram via Hebbal, Toll Gate to Kadabagere, Gottigere to Basavapura, R K Hegde Nagar to Aerospace Park, Kogilu Cross to Rajanakaunte, Bommasandra to Attibele and Ibaluru to Karmelaram -- the total coverage of the Bengaluru Metro would reach 266 km, including all phases. However, no deadline has been announced so far.
*The Bangalore Metro Rail Corporation Ltd (BMRCL) has received Rs 5,000 crore as contribution although one of the officials confirmed that they had asked for Rs 5,600 crore for the ongoing work related to Phase-II, which is the Nagawara to Gottigere and the R V Road to Bommasandra line. This would be ready by March 2021.
*Government employees would enjoy a higher take-home salary, thanks to the Sixth Pay Commission. Karnataka has about 5.93 lakh government employees and 5.73 lakh who draw a pension. With the Commission's recommendation of a 30 per cent hike in salaries, the move would cost the government Rs 10,508 crore. However, on the brighter side, it leaves so much more money in the hands of people that they can use to invest.
*To make transport as seamless as possible, a feasibility study might be undertaken soon. A roll-on, roll-off multi-modal logistic park and sea-plane services under the private-public-partnership (PPP) mode may be implemented.
*For the Comprehensive Development of Bengaluru, Rs 2,500 crore has been allocated. The main focus would be to work on the liveability determinants - road repair and improvement, lakes, drains, flooding and traffic decongestion.
*Parking infrastructure is poor and hasn't kept pace with the growing population or the number of job districts that have crept up. Gandhibazzar (near Kormangala), Jayanagar Complex, Yeshwantpur Truck terminal and MS Building near Cubbon Park might soon see multi-storied parking coming up to be built on a PPP model.
*An integral capital and rental real estate market, Whitefield micro-market has been earmarked for infrastructure upliftment. Now, 14 roads connecting Whitefield would be upgraded. The commercial real estate is banking on this given that it would shift and balance the excessive attention that the Outer Ring Road (ORR) enjoys, at the same time feels stressed under.
*Reviving the KR Puram market, development of the Ulsoor Lake and the Sankey Tank is also on the radar. Both the Centre and state government have pooled in Rs 500 crore for this mission besides the Tender SURE model under which 25 major roads would be developed.
*With the Hyderabad Karnataka Regional Development Board (HKRDB) receiving Rs 1,500 crores to work on an inclusive growth, jobs and real estate in the vicinity might receive a boost. However, for jobs to convert into housing demand may get time-taking.
*The Karnataka Budget also means to boost to logistics sector. For example, a multi-modal logistic park spread over an area of 400 acres near Bengaluru, 50 acres in Hubli is also to be developed. Not just this, 11 news industrial townships will surface within the Bengaluru Metropolitan Area which in itself is a big thrust to job creation.
*Sericulture and tourism related to it have received attention too and along with adding to the government's coffer will be a boon to hospitality, retail and other industries.
*Besides, the Goods and Services Tax (GST) might have been implemented but it was brought with confusions. The Karnataka model of the e-way bill may bring about effective changes soon.
Speedy implementation of the above would work well for real estate despite the fact that the Karnataka Budget did not provide a concrete share to real estate.