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Express Tribune
4 days ago
- Business
- Express Tribune
ECC okays Rs72b housing subsidy
Listen to article The government on Friday approved a Rs72 billion subsidy scheme to help low and middle-income groups build small homes and apartments. Beneficiaries can avail housing loans of up to Rs3.5 million at fixed interest rates ranging from 5% to 8%. The Economic Coordination Committee (ECC) of the Cabinet approved the markup subsidy and risk-sharing scheme. First-time homeowners will receive loans at rates cheaper than those offered in the market. The government will bear Rs62 billion in interest costs and Rs10 billion to share the default risk with banks. Finance Minister Muhammad Aurangzeb chaired the ECC meeting, which also cleared a series of agenda items concerning industrial growth, environmental policy, skill development, housing finance, and telecommunication. To ensure the scheme's success and reduce banks' reluctance, the government will enact two key laws. The foreclosure law will soon be tabled in the cabinet, granting banks the right to seize mortgaged properties and the Condominium law will address ownership issues in apartments. The Housing and Works Ministry presented the scheme based on recommendations from the task force on housing development. Under the plan, banks will carry 90% of the risk, while the federal government will assume the remaining 10%. Officials estimate that around 50,000 people will benefit during the current fiscal year, requiring Rs100 billion in loans. The Pakistan Tehreek-e-Insaf (PTI) government had earlier launched a similar scheme. It benefited 184,000 homeowners, with 62,000 units already completed. The rest are under construction. Under PTI's Naya Pakistan Housing Programme, around two million people applied for home loans, but banks only extended Rs236 billion in credit. Housing remains out of reach for most Pakistanis due to double-digit interest rates, even though inflation is around 4.5%. The Economic Policy and Business Development think tank has demanded slashing rates to 6% and ending guaranteed bank profits. To qualify, applicants must be first-time homeowners with valid identity cards and no property ownership. They can avail loans for up to 20 years. The scheme offers fixed rates of 5% for loans up to Rs2 million and 8% for loans between Rs2 million and Rs3.5 million for the first 10 years. After a decade, market rates will apply, which could reach as high as 15% based on current interest trends. The scheme supports the purchase or construction of homes up to 5 marlas or apartments up to 1,360 sq ft. Borrowers must contribute 10% of the cost upfront; the remaining 90% will be financed by banks. Commercial banks, Islamic banks, microfinance banks (MFBs), and the Housing Building Finance Corporation can participate. The State Bank of Pakistan (SBP) has endorsed the scheme's design for ensuring outreach and adherence to criteria. A full implementation mechanism for the markup subsidy and risk-sharing has also been prepared. The Pakistan Housing Authority Foundation will manage the programme. The government has decided to dissolve the Naya Pakistan Housing Authority to avoid duplication. Other decisions The ECC endorsed a report from the Ministry of Commerce on industrial competitiveness and the export-led growth of the steel sector, aligned with the National Tariff Policy 202530. The goal is to lower production costs and improve export competitiveness. The Committee approved a summary from the commerce ministry to file a Supreme Court appeal against a Lahore High Court decision granting gas/RLNG tariff concessions to M/s Ghani Glass Ltd. The ECC found the appeal tenable, given that concessionary tariffs for five export sectors have already been withdrawn. The ECC also approved Pakistan's Green Taxonomy, a proposal by the Ministry of Climate Change and Economic Coordination. The finance minister welcomed the initiative, calling it overdue and vital for enabling green project financing. To support skills development, the ECC approved a Rs1 billion government guarantee for issuing the Pakistan Skill Impact Bond (PSIB). This was moved by the Ministry of Federal Education and Professional Training. The committee encouraged the ministry to gradually adopt the public-private partnership model and finance future projects using its own balance sheet, thereby reducing dependence on sovereign guarantees. The Ministry of Industries and Production briefed the ECC on vegetable ghee and oil pricing trends. Despite adequate national stocks, the Committee expressed concern over weak transmission of limited pass-through of declining international prices to domestic consumers. It urged close monitoring to avoid price distortions or cartelisation. The ECC emphasised stronger coordination with the Competition Commission of Pakistan, National Price Monitoring Committee (NPMC), and provincial authorities through the Ministry of Industires and Production. The ECC approved a proposal by the Ministry of Information Technology and Telecommunication to revise charges for Radio-Based Services (RBS). It directed periodic revisions every 3-5 years to reflect economic and technological shifts. The Committee also endorsed a revised composition of the advisory panel overseeing the release of IMT spectrum, crucial for expanding mobile broadband in Pakistan. Finally, the ECC formally declared ship breaking and recycling as an industry, based on recommendations by the Ministry of Maritime Affairs. However, the ministry was asked to work with the Power Division to provide data on energy usage in the sector to enable accurate assessment of the implications of applying industrial power tariffs in place of the existing commercial rates.
Time of India
20-06-2025
- Business
- Time of India
Solar Projects A Ray Of Hope To Curb Electricity Budgets
Pune: When Park Royale, a housing society with 433 flats in Wakad, first installed a solar project seven years ago, the pilot phase yielded promising results. Encouraged, they scaled up the total capacity to 172.5-kW and today, their annual electricity expenses for common amenities in the complex have dropped from Rs62 lakh to just Rs13.5 lakh — almost a fifth of costs — thanks to the switch to solar. Tired of too many ads? go ad free now This reduced expenditure even includes the Rs7 lakh used for operating their society's sewage treatment plant (STP), which now runs on a green meter (providing subsidized govt charges for power). Society chairman Manoj Shinkar told TOI, "Initially, we had installed a 30-kW solar plant in 2018, and the investment was recovered in just two years as we also received govt subsidy on it. Encouraged by the savings, we expanded the project gradually in four different phases and reached 172.5-kW by 2023." Park Royale is one of the housing societies in Pune and Pimpri Chinchwad that are choosing to significantly cut down on electricity costs by switching to solar power. By installing rooftop solar systems, many societies have managed to power all their common area facilities—lifts, water pumps, and lighting—entirely through solar energy. Members of such societies say the move has led to substantial savings, amounting to lakhs of rupees annually, allowing them to reduce monthly maintenance charges for residents. Shinkar echoed that the benefits get passed on to flat owners. "Earlier, we charged Rs3 per sqft as maintenance. This has reduced to Rs2.5 per sqft—one of the lowest maintenance charges by any housing society in Wakad and nearby areas," he said. The entire solar setup cost the society Rs95 lakh by 2023, and the agency will handle maintenance for the next five years after each installation at no extra cost as per the agreement. Tired of too many ads? go ad free now With money saved on power bills, the society has also invested in other infrastructure upgrades, including a Rs15 lakh waste composting plant. Additionally, all common areas are now equipped with energy-efficient LED lighting to further reduce power consumption. Another such example is the La Melosa Housing Society — also in Wakad — which has 234 flats. The society installed a 76-kW solar system in March this year. Society chairman Jasbir Singh said, "Over the last two months, our common electricity bill dropped from an average of Rs2-Rs2.4 lakh per month to just Rs3,500 per month. The difference is staggering." Singh said the installation agency estimated annual savings of Rs18 lakh, considering that power generation from solar systems usually reduces during the monsoon season and one may need to pay more towards electricity bills during that period."We spent Rs35 lakh on the project after receiving govt subsidy and expect to recover this cost in two years," he added. The society financed the project internally and plans to reduce the monthly maintenance fee once the investment is recovered. "For any housing society, electricity and water are the major expenses covered under maintenance. If we manage these efficiently, the overall cost for residents can be brought down significantly. That's why every society should consider installing solar systems," Singh said. Besides large complexes, many smaller residential establishments are also adopting solar energy, such as the Bhagyashree Apartments in Pune's Kothrud. The 10-flat residential building was recently recognized and felicitated by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) as the first fully solar-powered residential apartment in the entire district. The society had initially installed an 11-kW solar system two years ago to power common amenities. Encouraged by the savings and efficiency, residents decided to extend solar power usage to all individual flats. Accordingly, in Jan this year, they added another 19-kW system, including -1-kW system for four flats, 2-kW for three flats and 3-kW for the remaining three flats, making the entire building solar powered. Mandar Deshmukh, a resident here, said, "Earlier, the monthly electricity bill for my individual flat was around Rs2,000. Since switching to solar, it has dropped to zero." The building now has a total of 30-kW rooftop solar capacity, which meets the entire electricity demand of all 10 flats and common areas, making it a model for sustainable residential living. Solar agencies confirmed that they are getting increased inquiries from housing societies — but added that many hesitate to install it due to shortage of funds. On average, it costs around Rs25 lakh to install a 50-kW solar project. "However, housing societies can also opt for OPEX (operating expense model), under which the third-party vendor owns, installs, operates and maintains the solar system, and the housing society only pays for their consumption, with fixed and reduced rates compared to normal electricity charges charged by MSEDCL," a solar agency operator said, adding that the vendor and societies make an agreement for a fixed period after which the complete set-up is given to the housing society for free. The operator said, "If societies want to fund the project on their own, agencies also help them get a subsidy of Rs18,000 per kW from state govt." There has been a surge in demand from residential properties for solar system installation in the last one-and-a-half years, particularly after govt launched the 'PM Surya Ghar-Muft Bijli Yojana', said SunGet Solar Infra owner Dipak Kotkar. Under this scheme, consumers with individual flats or houses are provided financial assistance of Rs30,000 per kW project (which for society complexes is Rs18,000 per kW). "We had to increase our manpower after this scheme was launched as it has received a very good response. There is a need to simplify the process so that more people can apply for it," Kotkar told TOI. "For instance, the govt online portal keeps getting upgraded, so data of earlier applications is lost and needs to be constantly refilled. Further, there are no dedicated offline govt centres for troubleshooting glitches, only call centres," he elaborated. Confirming the reaction to the scheme, Sunil Kakde, chief engineer of MSEDCL Pune zone, said, "There has been a good response to the PM Surya Ghar-Muft Bijli Yojana from housing societies as well as individual households. Residents are widely utilizing the scheme mainly to power common facilities, such as water pumps and lifts, using solar energy. Govt provides 18,000 per kW subsidy to projects at housing societies up to 500-kW capacity. "
Time of India
02-06-2025
- Business
- Time of India
Centre, state approved 23 clusters in Pune region in 2024-25, granted Rs62 crore
1 2 3 Pune: Central and state govts gave approvals for 23 clusters in the last financial year — 12 proposed by former and 11 by latter — aimed at supporting micro and small enterprises in Pune region. Of the total granted funds of Rs62 crore, Centure contributed Rs44 crore while state's share was Rs18.7 crore, Shailesh Rajput, joint director of industries of the region, said. Some of these clusters, covering sectors such as farm processing, automobile, printing, garment and engineering, are crucial for smaller manufacturing units as they do not have the resources individually to maximise their production. Hence, govt provides financial assistance that would help these industries set up necessary infrastructure for their growth. Cluster projects are executed through special purpose vehicles, which comprise the actual or potential entrepreneurs. These entities are organised under legally recognised structures such as cooperative societies, registered societies, trusts and companies. State and Central govts fund the projects under their respective schemes. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Maharashtra govt implements Centre's Micro Small Enterprises Cluster Development Programme and its own Maharashtra State Industrial Cluster Development Programme. Both schemes aim to set up infrastructure and common facility centres for micro and small units by providing 70%-90% funds for projects costing up to Rs10 crore. Under state govt's scheme, 16 clusters have already been set up, eight are in various stages of development, while diagnostic study reports for 13 clusters have been approved, taking the tally to 37. The cumulative cost is Rs271 crore, which is expected to benefit close to 4,000 micro and small units. State govt is also taking into account 'one district, one product' and geographical indicators for their development. Miraj cluster for musical instruments, turmeric cluster in Sangli, rice cluster in Pune, and garment cluster in Solapur are some under process. Under the Central scheme, 30 clusters have been approved so far, while eight are functioning within the region that includes Pune, Sangli, Kolhapur and Solapur districts. The total project cost is Rs600 crore, which will likely benefit around 5,200 production units.
Time of India
30-04-2025
- Business
- Time of India
No response to NMC redevelopment projects, Gadkari urges NIT to take over
Nagpur: In a blow to its asset monetisation plans, the Nagpur Municipal Corporation (NMC) failed to attract even a single bidder for the redevelopment of two prime properties — Sokhta Bhavan and Cotton Market fire station — despite repeated tendering efforts. Now, city MP and Union minister Nitin Gadkari has recommended that the Nagpur Improvement Trust (NIT) takes over the Cotton Market project to fast-track its revival. In a bid to salvage the situation, NMC slashed the base price of Sokhta Bhavan project by 11% (from Rs144 crore to Rs128 crore), and is preparing to float fresh tenders to revive developer interest. Despite invitations issued on November 27, 2024, and again on January 10, 2025, the project — located on a sprawling 28,922sqm plot at Gandhibagh — received no response from developers. The plan envisions a G+14 multi-level commercial complex with a total built-up area of 3,48,617sqm. Consequently, NMC's high-level policy committee intervened and approved an 11% reduction in the base value to make the project more financially appealing. A fresh tender is now being readied by the project department. The Sokhta Bhavan setback underlines the wider challenges NMC faces in its attempts to generate revenue through the redevelopment of old properties in high-value areas. Officials admitted developers found the project's earlier valuation unattractive, given the massive upfront investment, construction complexities, and the ongoing real estate sector slowdown. The repeated failures raised serious concerns about the civic body's dependency on private players to infuse new life into ageing city properties. NMC faced a similar situation in its Cotton Market fire station (Ganeshpeth) redevelopment project — pitched as the city's first integrated fire station-commercial complex. The Rs62 crore plan, spread over 2,589.7sqm, proposes a ground-floor fire station, administrative offices on the first floor, and a commercial complex across six upper floors to rehabilitate 30 displaced shopkeepers. Yet, here too, no bids were received. On April 19, Gadkari stepped in, suggesting the NMC hand over such critical redevelopment projects to NIT, hinting at the civic body's struggle to deliver. Both projects were structured under the design, build, finance, operate, and sale (DBFOS) model, with a commercial rate of Rs14,051 per sqm. While the Sokhta Bhavan proposal included two basement levels for parking to ease congestion in Gandhibagh, concerns surfaced about the reduced space for fire tenders — from four bays to just three — leading to a review by the NMC fire department.
Time of India
26-04-2025
- Time of India
RPF detains vendors selling stale food on trains
Nagpur: In a crackdown on the sale of stale food in trains, the Railway Police Force (RPF) of Central Railways launched a drive on Thursday. The operation took place onboard three trains: 12151 (Samarsata Superfast Express from Lokmanya Tilak Terminus, Mumbai, to Shalimar Station, Howrah), 12809 (CSMT Mumbai to Howrah Junction), and 12834 (Ahmedabad Superfast Express from Ahmedabad to Howrah). The inspection focused on unauthorised vendors and substandard food being served, which is particularly hazardous during high temperatures. A total of 81 cases were registered during the operation, resulting in earnings of Rs62,950 in fines. The drive was carried out by a team comprising 12 commercial staff and 5 personnel from the RPF. Notably, two unauthorised vendors were apprehended and handed over to RPF units at Gondia and Durg (DGG).
