Case Study_Manesar_A Dataquest-Global Services Report_6May2013

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A CAse study on MAnesAr

Evaluating the prospects of

EmergingBusiness Hubs

in NCR Delhi

A Case Study on Manesar

A DAtAquESt - GlobAl SERviCES REpoRt for World trade Center, ManesarMAy 2013

With iNputS fRoM:CyberMedia research (CMr)

A brief chronicle of the vertical growth

and horizontal expansion of the india

it and iteS sector beyond the metros

Manesar

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Acknowledgements and Disclaimerthis document reflects the opinion of Dataquest, Global Services and voice&Data editors, as well as market information supplied by CyberMedia Research (CMR) analysts and other reputed market intelligence firms. it refers to and / or quotes data and information pertaining to india and the world economy, population, markets, growth rates etc. available in the public domain. All sources of data / information are duly acknowledged in the document.

the information, analyses, forecasts and opinions cited in this document are based on current industry and market hypotheses, estimates and assessments and may be subjective in nature. the publishers do not assume responsibility or liability in any manner whatsoever, for claims of damages arising out of use of data contained herein and / or claims of loss resulting from use of such data and viewpoints. CyberMedia and CyberMedia Research (CMR) may modify the numbers, forecasts and viewpoints contained herein at any time without prior notice.

editor: Easwardas 'Ed' Nair, Editor, Dataquest

reseArCh: vishaal bhatnagar, Avp, CyberMedia Research

design: Shilpi bhargava, CyberMedia Services

May 2013 © 2013. All rights reserved.

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Contentsò preface: how Global technology hubs Evolve 5 5ò urbanization, Rise of urban Centers in india 6 6

ò Emergence of Satellite Cities and towns 8 8

ò Smartly planned: A quick overview of Manesar 11ò Characterizing Manesar’s Strengths 13

á Smart location: Key Advantages

á Smart infrastructure: the Manesar fact Sheet

á Smart Connectivity: Manesar Emerging as business Gateway to the DMiC

á prospects of future Development of Manesar

ò Why Manesar is Equipped to become a Strong 19 it-iteS hub (Nasscom, hCl viewpoints)

ò Manesar: the Japanese Connection - 1 21ò Manesar: benefits for SMb Enterprises & Start-ups 22ò Manesar: SWot Analysis and Evaluation 23 on Key parameters

ò Appendices 25 á Economy: the india Story, Growth prospects

á india it-iteS industry: performance, prospects

á urbanization: JnNuRM, DMiC and the Emergence of Gurgaon-Manesar as the Commercial Capital of haryana

á Real Estate industry trends in Delhi NCR: Advantage Manesar

A Case Study on Manesar

Manesar

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PrefaceDear Industry Colleague,With the rich demographic dividend and great business opportunities around, india is catching everyone’s attention. on the contrary, business sentiment about the indian economy has been less than optimistic in the last two years. We see challenges like inflatin, increase in input cost, high profile scams, allegations of corruption, soured relations with neighbours and lack of adequate employment opportunities.

however, even the most trenchant critics of india's economic ills will agree that there exists another india beyond the inflation, scams and unemployment. this 'new' india is powered by a throbbing, pulsating, industrious and growth hungry middle class that is increasingly being joined by the teeming millions emerging from the ‘bottom of the pyramid’ in cities, towns and villages across the length and breadth of the country.

the facts also point to a bottoming out of the negative sentiment. Analysts are veering round to the opinion that the worst is behind us, the economy has bottomed out and the prospects for fy 2013-14 and beyond look promising. in fact, as per the most recent estimates published by the Reserve bank of india (Rbi), the indian economy is expected to grow at 6% in the current fiscal, as against the decadal low of 5% recorded in fy 2012-13. the iMf's Regional Economic outlook: Asia and pacific report estimates a growth of 5.7% in 2013 and 6.2% in 2014 for the indian economy. With Wpi inflation in March 2013 having hit 5.96%, the lowest in 40 months and domestic demand for goods and services expected to regain growth, the india growth story remains firmly positive for the long term. Major export markets such as the uS are on the road to recovery and Japan has announced a plan to infuse its largest ever fiscal stimulus of yen 10.3 trillion (uS$ 116 billion) to jump start growth.

According to estimates, the indian middle class is expected to grow from 160 million in early 2011 to nearly 270 million by early 2016. over the same period, the absolute number of ‘poor’ in the population is expected to reduce from over 680 million to less than 560 million. by 2030, close to 40% of india's population will be urban and 70% of the net new employment generated will be in cities. Mega infrastructure projects such as the Golden quadrilateral (Gq) and the Delhi-Mumbai industial Corridor (DMiC) are expected to impart a fillip to both domestic and overseas investments in infrastructure. these developments and sentiments will have a direct and positive ‘rub-off’ on the emergence and growth of new industry and service hubs across india.

the current case study is particularly focused on the Manesar-bawal industrial Region (MbiR) near Gurgaon, a well planned, model, business-friendly township. it is our view that india's future growth lies in the clean, organised, well-connected real estate and ecosystem that such townships provide at a range of reasonable price points. We do believe that more such hubs are the need of the day to accelerate and maintain the tempo of growth for india's emerging Services and Manufacturing sectors.

With warm wishes,

Easwardas 'Ed' Nair EditorDataquest-Global [email protected]

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UrbanizationRise of urban centers in Indiatrends in globAl And indiA Middle ClAss urbAn PoPulAtionsin 2008, according to united Nations estimates, the global urban population for the first time exceeded those living in rural areas. this trend is only expected to increase and stabilise between the years 2040-2050, as shown in figure 1 below.for india the ‘urban-rural crossover’ is expected to happen some time in the period 2035-2040. this growth in urban population will lead to growth in cities, and in turn call for:

n Well-planned infrastructure such as residential, office, commercial and public real estate and leisure facilities;n Growth in the role and importance of public utilities such as power, water, suburban transportation and telecommunications;n provision of adequate healthcare services and facilities for the young as well as aging populations;n Establishment of modern educational institutions, andn Creation of employment generation opportunities (industrial and commercial clusters) for the millions of educated youth entering the workforce.figure 2 and figure 3 below, sum up india’s growth challenges starting 2008 and to the year 2030.

Fig. 1. long terM groWth trends in World, ChinA And indiA Middle ClAss PoPulAtions 1960-2050

the Expanding World Middle Class

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4,000

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2,000

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1,000

500

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Fig. 2. groWth ForeCAst For indiA urbAn PoPulAtion, 2030

india’s urbanisation prospects

yEAR 2030

40%population will be urban

68Cities will have a

population of more than

1 million 70%of new employment

will be generated in cities

DE

Mo

GR

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source: india’s urban Awakening: building inclusive Cities, sustaining economic growth (McKinsey global institute, April 2010)

Fig. 3. urbAnizAtion in indiA: groWth oF Cities, 2008-2030

india’s future is in its Cities

source: india’s urbanization econometric Model; Census 2001, McKinsey global institute Analysis

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total urban population expected to grow by 250 million by 2030 590

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93

195

331

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52tier 1: greater than 4 million

tier 2: 1 million to 4 million

tier 3: less than 1 million

number of cities at that tier

india to have 13 cities with more than 4 million people and

6 with more than 10 million.9 13

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55 cities with more than 1 million. the united States

currently has 9.33 55

2008 2030 e

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Emergenceof satellite cities and towns

delhi-MuMbAi industriAl Corridor (dMiC) ProjeCt: A gAMe ChAnger in indiA’s drive toWArds PlAnned urbAnizAtionthe Delhi-Mumbai industrial Corridor project is a state-sponsored industrial Development project of the Government of india. it is an ambitious project aimed at developing an industrial Zone spanning across six states in india. the project will see major expansion of infrastructure and industry – including industrial clusters and rail, road, port, air connectivity – in the states along the route of the Corridor. the ambitious Delhi Mumbai industrial Corridor (DMiC) received a major boost with india and Japan inking an agreement to set up a project development fund of Rs. 1,000 crore (uS$182 million) with both the Japanese and indian governments contributing equally. on completion the DMiC project is estimated to draw in total investments of uS$ 90 billion.

Key ProjeCt detAilsthe corridor would include six mega investment regions of 200 square kilometers each and will run through six states Delhi, Western uttar pradesh, Southern haryana, Eastern Rajasthan, Eastern Gujarat, and Western Maharashtra. the corridor, spread across 2,700 km with an additional 5,000 km of feeder lines connecting Mumbai to West bengal.

length oF the dediCAted Freight Corridor And stAte-Wise distributiontotal length of western Dedicated freight Corridor (DfC): 1,535 km

Distribution of DfC across the six states is:uttar pradesh 22 km (1.4%), NCR of Delhi 115 km (7.5%), haryana 130 km (8.5%), Rajasthan 553 km (36%), Gujarat 565 km (36.8%) and Maharashtra 150 km (9.8%)

dMiC ProjeCt: FoCus on industry And eMPloyMent generAtionConceived as a global manufacturing and trading hub, the DMiC project is expected to double employment potential, triple industrial output and quadruple exports from the region in five years. the total employment to be generated from the project is 3 million, the bulk of which will be in the manufacturing / processing sectors.

the ambitious project will be funded through private-public partnership and foreign investment. Japan will be a major investor for this project.

it will include a 4,000 MW power plant, three seaports and six airports in addition to connectivity with the existing ports. the industrial corridor project will be implemented by the Delhi-Mumbai industrial Corridor Development Corporation, an autonomous body composed of government and the private sector.

it will be implemented through special purpose vehicles (Spvs). the project is expected to deliver a 2-3-4-5 benefit: to double employment (2), triple industrial output (3) and quadruple exports (4) from the region in five years (5). it will be built along a dedicated rail freight corridor, and once commissioned, will reduce the Delhi-Mumbai transit time from 60 to 36 hours.

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Fig. 4. dFC And dMiC: An overvieW Fig. 5. overvieW oF seven neW ProPosed industriAl Clusters: dMiC PhAse 1

the DfC and DMiC Corridor7 Nodes being developed in DMiC phase 1

“stop Press”: Seven New Cities on Delhi-Mumbai Industrial CorridorFebruAry 28, 2013

P lans for seven new cities along the Delhi Mumbai industrial Corridor (DMiC) have been finalised

and work on two new smart industrial cities at Dholera in Gujarat and Shendra bidkin in Maharashtra would start in the next financial year, finance Minister p. Chidambaram said recently while presenting the union budget for 2013-14 in the lok Sabha.

“the DMiC project has made rapid progress. plans for seven new cities have been finalised and work on two new smart industrial cities will start during 2013-14,” Chidambaram said. Additional funds may be provided if required, he added.

he thanked the Japanese government for supporting

the projects. “We acknowledge the support of the government of Japan.”

the finance minister further said that plans were being prepared by the Department of industrial policy and promotion (Dipp) and the Japan international Cooperation Agency (JiCA) for Chennai-bangalore industrial corridor.

“the corridor will be developed in collaboration with the governments of tamil Nadu, Andhra pradesh and Karnataka,” Chidambaram said.

preparatory work had also started on another corridor between bangalore and Mumbai, he added.

source: Ministry of urban development, govt. of india

1. DADRi- Noida Ghaziabad iR, up 2. MANESAR- bawal iR, haryana3. NEEMRANA-KhuShKhERA -bhiWADi- iR, Rajasthan4. pithAMpuR-DhAR- Mhow iR, Mp5. AhMEDAbAD- Dholera iR, Gujarat6. NASiK-SiNNAR- igatpuri iR, Maharashtra7. DiGhi poRt- iA, Maharashtra

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A CAse study on MAnesArSmartly PlannedA Quick Overview of Manesar

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Smartly PlannedA quick overview of Manesar

MANESAR, also known as industrial Model township (iMt) Manesar, is a 1,750-acre ultra modern integrated industrial park, strategically located along the National highway 8, linking Delhi and Jaipur, is just 15 kilometers from Gurgaon and 45 kilometers from New Delhi. it is increasingly gaining importance as the next business destination amongst indian as well as international MNCs. Manesar has been conceived as a futuristic “smart” city where the urban infrastructure and services would reinforce the position of the state of haryana

on the map of integrated global business hubs, not just in india but around the world.

planned as an eco-friendly city, Manesar has been modeled on the Japanese cities of yokohama and Kitakyushu. this was following a feasibility study conducted by toshiba Corporation in 2011, funded by the Ministry of Economic trade and investment (MEti) of the Government of Japan. Manesar, india’s first ‘smart community’ or ‘eco city’, has appropriately been hailed as the “New Gurgaon”. it was envisaged as a


source: hsiidC

Fig. 6. iMt MAnesAr: the “neW gurgAon”

iMt Manesar (Master plan)

schools

this is a graphical representation of the actual map and we cannot guarantee the validity of information shown here. the information on this map is for informational purposes only. please refer to actual map for accurate details before making any investment decisions.

detAils oF Plots (residentiAl)

s.no. CAtegory size

A 250 Sqm 10 x 25

b 450 Sqm 15 x 30

C 3125 Sqm 12.5 x 25

detAils oF Plots (industriAl)

s.no. CAtegory size

1 25 Acres 255 x 425

2 9 Acres 154.8 x 240

3 8 Acres 120 x 268 120 x 273

4 6 Acres 120 x 195

5 5 Acres 105 x 195

6 4 Acres 90 x 195

7 3.5 Acres 105 x 150, 105 x 135

8 3 Acres 105 x 120, 75 x 150 75 x 154

9 2 Acres 75 x 105

10 1.5 Acres 75 x 90, 60 x 103 60 x 90

11 1 Acres 45 x 90

12 1/2 Acres 30 x 60

13 1/4 Acres 30 x 45, 22.5 x 45

14 1/8 Acres 15 x 30

SECtoR-3A 500 ACRES lAND foR MARuti ENClAvE

DiSClAiMER

green

Commercial

PhAse - iii

sector-8

sector-4

sector-7

sector-5

sector-3

sector-2

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sector-8

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model township comprising residential, commercial, office, and industrial establishments, and hence rightly christened as iMt (industrial Model township).

the toshiba feasibility study of 2011 provided the basic concept, institutional framework, and business plan for the eco-friendly city pilot initiative at Manesar including areas such as water and power supply (including water recycling and solid waste management), logistics, suburban transportation / mass rapid transit systems such as metro rail and pod taxis. Manesar has been planned on the lines of the twin cities of yokohama and Kitakyushu in Japan, where high industrial production is balanced with measures to control / reduce industrial waste.

one of the key economic impacts of the movement towards becoming an eco-city is the remarkable increase in productivity across industries, and an upswing in employment creation due to introduction of new technologies and smart public facilities by corporates and public service utilities, respectively. Studies on patterns of industrial productivity across diverse geographical locations have established

the fact that the development of eco-cities aids in reducing poverty by means of job creation in environmental friendly business sectors.

the new developmental plan for the Gurgaon-Manesar urban Complex has been formulated taking into consideration the projected growth of the city up to 2025. the Gurgaon-Manesar Master plan projects a population of around 37 lakh by 2021. With planned infrastructure developments taking place at a good pace, Manesar is all set to become an ultramodern city. it is a high-potential area for actual usage and investment, as there is no authorized housing facility available to over two lakh executives at iMt Manesar. A unique feature of the project is that only 20 percent of the total area will be covered while 80 percent will comprise of a green belt.

As per a recent paper published by ASSoChAM, employment opportunities in Manesar and adjoining areas like bawal, tapukara, Neemrana, Khushkhera etc. are expected to attract nearly 16 lakh skilled and semi-skilled workers from all over the country including overseas countries and regions such as Korea and the Russian federation.

“stop Press” infrastructure: The Missing Link in the Millennium Development Goals (MDGs)World bAnK, 2013

Infrastructure – the basic framework for delivering energy, transport, water and sanitation, and information and communication technology services to people –

directly or indirectly affects people’s lives everywhere. that relationship is reflected in the MDGs. yet only two MDG targets touch on infrastructure services: water and sanitation (MDG target #7.C) and telephones and the internet (MDG target #8.f); energy and transport are missing entirely. And no single (development) goal or target addresses the comprehensive role of infrastructure in achieving the MDGs.

Although income influences performance on the MDGs, it has long been recognized that growth in productivity and incomes and improvements in health and education outcomes require investment in infrastructure. the MDGs are designed to make economic growth more inclusive. Since a large share of people live in rural areas, often far from employment opportunities, policies to reduce poverty require investment in infrastructure and transport. by improving productivity, investments in infrastructure reduce poverty. Access to clean water and sanitation reduces infant mortality. Electricity powers the hospitals and refrigerators for vaccines. Roads in rural areas boost school attendance and use of medical clinics. And information and communication technologies can improve teacher training and promote better health practices.

source: source: ibrd (World bank), 2013

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Characterizing

Manesar’s StrengthssMArt loCAtion: Key AdvAntAgesAccording to a recent estimate, more than 100,000 people go to work in Manesar from adjoining places. the Gurgaon-Manesar Master plan projects the population of 3,700,000 by 2021. it has many factories, offices, hotels and educational institutes. there are several sightseeing spots around the area, some over-lapping with Gurgaon. Manesar is 32 km from Delhi’s indira Gandhi international (iGi) Airport and has some of the best urban infrastructure in northern india. located on National highway 8 (Nh8), the area is well connected by road with Delhi, Jaipur, Ahmedabad and Mumbai, with equally good air connectivity.

proximity to the country’s political nerve center – New Delhi has also led the government to establish headquarters of some institutes of national importance here like the National Security Guards (and its training center), National bomb Data Centre and National brain Research Centre, http://www.nbrc.ac.in/.

Most importantly, with its close proximity to the Gurgaon

Fig. 7. nCr delhi: strAtegiC loCAtion oF 21st Century indiA

National Capital Region

source: nCr Planning board

and Delhi NCR it-iteS regions, Manesar is well positioned to attract investments from companies looking to expand to a less crowded, well planned location to set up SEZs (please refer Callout) or independent facilities.

indiA sPeCiAl eConoMiC zones Key beneFits suMMArybesides offering high end infrastructure and availability of a large, skilled workforce, SEZs also offer attractive incentives and advantages to firms and developers. Mentioned below are some of the benefits of india’s Special Economic Zones (SEZs):

n full income tax exemption for a period of 5 years and an extra 50% tax relief for additional two years.n Manufacturing industry is allowed an fDi influx of 100% via automatic channels, excluding a few industries on the negative list.n Services to establish off shore banking divisions in SEZs.n Service tax and Central Sales tax exemption.n External commercial lending of up to uS$ 500 million is allowed for SEZ divisions in a year, sans any maturity limitations via certified banking networks.n No import authorization obligations.n Services to sustain foreign exchange proof of payments of up to 100% in Exchange Earners’ foreign Currency Account.n SEZ franchisees are allowed 100% fDi in offering customary telephone facilities in their areas.n No limitation of foreign endowments for small scale industry reticent products.n tax relief from sectoral authorization obligations for goods reticent for SSi industry.n tax relief from custom tariff on import of merchandize, raw products, spare parts etc.n ta x r e l i e f f r om Cen t r a l E xc i se t a r i f f on acquirement of merchandize, raw products, spare parts etc. from the local market.n No regular assessments by indian Customs for export and import freight.

nh-1

nh-58

nh-24

nh-91nh-2

nh-71b

nh-71

nh-10

nh-8

nh-58

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n Capacity to comprehend and repatriate export advances within a year.n Revenues permitted to be repatriated sans any dividend assessment needs.

sMArt inFrAstruCture: the MAnesAr FACt sheetAs already stressed above, planned infrastructure is an imperative for the sustained growth and development of a region, and particularly a new urban center such as Manesar. Well-segregated residential, office, commercial and manufacturing spaces can only function efficiently and thrive if they are provided with adequate public infrastructure and efficiently run utilities. Manesar has been planned as an ‘model’ township and is blessed with all these and more:

PoWer: Availability of 220 Kv power station and 4 subordinates of 66 Kv each.

teleCoMMuniCAtions: A robust communications network and hi-tech telecom facilities, built and operated by leading national telecom operators like bSNl and bharti

Airtel amongst others has been set up across Manesar, giving business units and residents multiple options for their data and voice requirements.

WAter: the city is serviced by an independent water supply system.

roAds: Wide all weather roads span the length and breadth of Manesar. local authorities in the Gurgaon-Manesar municipal area have appointed RitES for audit nad certification of road maintenance activities.

seWAge disPosAl systeM: the sewage disposal system discharges sewage into a modern treatment plant where it is treated to public discharge standards, and the recycled water is used for horticulture and industrial purposes.

heAlthCAre: the newly inaugurated Rockland hospital, iMt Manesar is one of the largest tertiary Care healthcare facilities in Manesar and surrounding areas. the 505-bedded facility is a multidisciplinary hospital, which provides a complete range of basic and super specialty treatments, sophisticated and advanced clinical diagnostics and therapeutic services under one roof. it employs medical and surgical equipment of world class standards. the Manesar hospital has taken special care in building an ancillary building, which will house all the travel and hospitality services and has 65 rooms for international and domestic patients.

eduCAtionAl institutions: Equipping youth to become Empowered Citizens of india’s Emerging “Smart”.

Cities: Manesar boasts of a well developed education infrastructure including a 150 acre campus of Amity university, as well as respected public and international K12 schools like the Army public School, bal bharti School, Kendriya vidyalaya, Chail Military School, Starex international School and Adamas international School in the vicinity.

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s MArt Con n eCtivity: MAn e sAr e M e rg e s As business gAteWAy to the dMiCSuccess of any modern, industrial township hinges very critically on an efficient infrastructure, allowing smooth physical connectivity with key business districts – Manesar has that in plenty.

1. delhi Mumbai industrial Corridor (dMiC) to enable local commerce, foreign investmentsthe government is establishing a Dedicated freight Corridor (DfC) between Delhi and Mumbai, with terminals at Dadri in the NCR region of Delhi and Jawaharlal Nehru port near Mumbai, covering a length of over 1,500 kilometers. A band of 150 to 200 kilometers on both sides of the DfC is being developed as the Delhi-Mumbai industrial Corridor (DMiC)

in order to tap the immense opportunities likely to be thrown open by the corridor. the DMiC spans the states of uttar pradesh, haryana, Rajasthan, Madhya pradesh, Gujarat, and Maharashtra.

one of the largest infrastructure projects in the country, DMiC, worth uS$ 90 billion is being built through financial and technical aids from Japan, with the DfC (Dedicated freight Corridor) covering a length of 1,483 kilometers between the political capital and the business capital of india, i.e. Delhi and Mumbai. the vision for the DMiC project is to create a strong economic base in this band, building a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investments, real-estate investments and attain sustainable development.

Manesar-bawal industrial Region (MbiR) is one of the key investment regions selected for development in the first phase of the DfC-DMiC project. the ‘Growth Centre’ bawal has evolved as a mega industrial hub and large numbers of multinational companies have selected bawal to set up their manufacturing facilities.

besides Japan, india has invited participation from Russia in the DMiC project. once this comes through, it can have far reaching impact on the business hubs such as Manesar. Speaking at a joint indo-Russian media interaction in 2012, then External Affairs Minister of india, Mr. S M Krishna stated, “our growing economy and major initiatives in terms of the national manufacturing policy (NMp) and infrastructure development projects such as the DMiC offer good prospects for Russian investors and businesses.”

the way Manesar is increasingly being hailed as the new business destination; the city would be a forerunner in attracting investments not just from Japan and Russia, but from other east Asian economies such as Korea and taiwan, as well.

2. Kundli-Manesar-Palwal (KMP) expressway Apart from DMiC, there are other major expressways or growth corridors surrounding Delhi NCR passing through Manesar. Such progress would definitely increase the employee catchment for Manesar as an it-iteS destination.

Smart ConnectivityManesar emerges as business gateway to the DMIC

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these are KMp (Kundli-Manesar-palwal) expressway and KGp (Kundli-Ghaziabad-palwal) expressway, each 135 kilometers. While these greenfield expressways were planned to reduce congestion on Delhi roads, these two road networks are emerging as catalysts in spawning new residential and commercial developments.

infrastructure improvements in terms of the under-construction 135.6 kilometre Kundli-Manesar-palwal (KMp) Expressway and the upcoming Dwarka Expressway are expected to make Manesar more investment friendly. it will act as a Delhi bypass or “Suez Canal” for traffic coming from the north of Delhi on Nh 1 (Amritsar-Delhi highway) and going to the south of Delhi on Nh 2 (Delhi-Agra highway) or to the west of Delhi on Nh 8 (Delhi-Jaipur highway).

With the KMp Expressway serving as the route for heavy vehicles passing through NCR, Manesar is likely to witness significant investments in terms of developing it into a warehousing and logistics hub. Captive and speculative warehousing activity is poised to see more private players getting active in the area. product and commodities sourcing firms too can aim to set up their supply chain nerve centres in this region.

According to industry estimates, as of 2011-12, Manesar produces two thirds of passenger cars and 60 percent of motor cycles manufactured in the country. one out of every four bicycles is manufactured here. With major auto conglomerates such as Maruti Suzuki, honda Motocorp, oMRoN, Delphi Automobiles, Mitsubishi Electric, toyota and lumax amongst others, Manesar is the automotive and ancillary manufacturing hub of the country.

3. northern Peripheral roadthe Northern peripheral Road is being developed under the public private partnership (ppp) model. this stretch will connect Dwarka with National highway 8 at Kherki Daula and will pass pataudi Road. the NpR stretch has been planned as an alternate link road between Delhi and Gurgaon, and is expected to ease the traffic situation on the Delhi-Gurgaon Expressway. the road will also provide connectivity to the much-touted Reliance-hSiiDC SEZ, besides the Garhi harsaru dry depot.

Much like Delhi, Gurgaon district (of which Manesar is a part) too will have a bRt corridor to decongest traffic via the Northern peripheral Road (NpR). in several sections, the NpR will have provisions for a bus Rapid transit (bRt) corridor to ensure smooth flow of commuter and inter-state traffic.

4. Metro railSustained demand from the it-iteS sector has resulted in Sector 8 of iMt, Manesar emerging as the “Next Generation it-iteS Destination” of Gurgaon district. there has been considerable infrastructure improvement in Manesar. the Delhi-Jaipur highway has reduced the travel time from Delhi to Manesar from 90 minutes to 30 minutes. to improve public transport further, plans are underway to extend the Delhi Metro to Manesar.

the government proposes to set up its own Metro Corporation to extend the metro-rail facility to areas in the National Capital Region (NCR) falling in haryana state.

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Prospects of Future development of Manesar

With the development and the process of land acquisition starting in 2002, today Manesar is a largely urbanized town and is currently the last urbanized destination on Nh8 south of Gurgaon, and up to Jaipur.

Key FACtors driving the groWth oF MAnesArn A fast growing industrial town in Gurgaon district of haryana.n the push from Delhi and pull from southern haryana and adjoining Rajasthan created Gurgaon, the “Millennium City”.n With Gurgaon heading towards saturation, a need for further growth was foreseen.n this need for expansion was v isual ized as early as 2002 by the Govt. of haryana, and the development of Manesar started much before Gurgaon actually became saturated; so, when urbanization in Gurgaon reached a peak, Manesar was already in place as a ‘plug–n–play’ destination.n other adjoining destinations like tauru, bilaspur, Dharuhera, bhiwadi and bawal are now witnessing similar growth, and the belt is now referred to as “MbiR” or the Manesar-bawal investment Region. it has attracted investments from both the public and private sectors.n thus, in the past 10 years, the sleepy town of Manesar has seen unprecedented growth, being surrounded by expressways from all directions. n part of both, NCR and Mb i R, Manesar is

among 17 listed new locations in india as potential investment destinations and among the 6 best business Destinations of india (Source: industry Journals).n home of the indian automotive industry with players like Maruti Suzuki, honda Motorcycles and Scooters india, hero Motocorp, Munjal Kiriu, Munjal Showa and many others. n Major investments from global giants include Maruti Suzuki’s investment of Rs. 2,500 crore in its second automotive plant, Samsung Electronics’ investment of Rs. 850 crore in its mobile handsets business, investment of more than Rs. 300 crore by honda Motorcycles to increase capacity at its existing plant and so on.n being part of both, the National Capital Region (NCR) and the Manesar-bawal investment Region (MbiR), Manesar enjoys the twin advantage of being both the outpost of the NCR where everyone wants to move to, as well as the “gateway” to the upcoming business destinations of MbiR.

AdvAntAges oF being A PArt oF nCrn the only satellite town of NCR that is scientifically conceptualized and planned as an integrated, self-sufficient urban centre.n on the intersection of the Nh8, KMp Expressway and NpR, and a mere 20-minute drive from Delhi’s indira Gandhi international (iGi) airport.

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n An integrated city, bui l t on the concept of “walk to work” and having addressed all the inherent problems of Gurgaon such as: npower availability nWater supply nSewage and Garbage disposal nAll-weather metal roads nNo problem of traffic congestionn Eas i ly approachable (no t ra f f ic jams) and hence home to a very large number of Multi-National Companies (MNCs).n presence of a large number of reputed schools, colleges, hospitals and hotels in the vicinity.n A potent and upcoming Manufactur ing and Services hub with increasing presence of it-iteS companies.

AdvAntAges oF being A PArt oF the Mbirn in order to promote industrial growth, trade and business activity, the Govt. of india and governments of the sates of haryana and Rajasthan are investing large sums of capital to help create a world class business destination.n Master planned by Jurong-Singapore, KpMG, DtZ and ESRin Key projects in the MbiR nECo-city project in iMt Manesar nKMp Expressway

nEducation-cum-healthcare hub n MRtS: Mass Rapid transit System between Gurgaon-Manesar-bawal nAffordable low Cost housing ntransport oriented development (toD) alongside the MRtS nindia’s biggest Expo & Convention Center

it is Worth noting thAt MAnesAr hAs MAny ‘Firsts’ to its Credit:n the Fi rst industr ia l Model township of india made according to international standards of town planning.n the First eco-City of india; currently being developed by toshiba Corporation as a ‘Smart Community’. n home to north india ’s First operat ional World trade Center; in the process of developing a themed city along the KMp Expressway, dedicated to harnessing the opportunities from this important, new highway.n First ‘green’ technology hub in india: A dedicated technology hub of 150 acres comprising roughly 5 million square feet of Green office development that gives a unique advantage of running large scale operations as well as small scale niche businesses.

Why Manesar is equipped to become a strong IT-ITeS hub: Industry viewpointsWhile MAnesAr is an established auto manufacturing hub, it is really its character as an integrated business township that will see growth coming to the city via new facilities and back-office set-ups by the bfSi, Retail and the services sector in general, and particularly by it-iteS service providers. the eco-friendly, smart city has everything to help corporates set up and start business operations quickly. the robust public and private infrastructure is key to providing a good quality of life to its residents. this phenomenon, if implemented holistically and inclusively, at both city level and company level, will result in two important benefits – happy and satisfied employees and companies realizing substantial productivity improvements.

Due to its low rents, the Manesar sub-region of Delhi

NCR comes up as a viable destination for setting up Disaster Recovery or Work Area Recovery sites by large corporates and it-iteS players. this field alone has the promise to open up a totally new avenue for it activity in this area. Currently, corporates such as hCl, Agilent technologies and bharti Airtel have campuses in iMt. the other ongoing developments include it parks by Anant Raj, Shapoorji pallonji, Aarone Group, vigneshwara Developers and Spire World World trade Center amongst others.

With the establishment of it-iteS Network operations Centers and global service delivery centers in Gurgaon-Manesar, the influx of skilled professionals, who prefer to live close to their workplace, is gathering pace.

19


20


“stop Press”: Pointers from an address by Mr. Som Mittal, President, NASSCOM at an ET NOW eventdeCeMber 2012

I t is an established fact that the it / bpo industry has been a big catalyst for the country’s economic growth. the industry has generated revenues to the tune of

uSD 75 billion, which was uSD 2 billion a decade back, indeed a phenomenal growth for any industry. there are 2.7 million people directly employed in it and for every one job, there are three jobs created downstream; 85 percent of this work is delivered out of six cities in the country. it contributes six percent to the country’s gross domestic product (GDp). in these six cities, 14 percent of their GDp is contributed by it, which is more than twice the national average.

it went to these cities which have good colleges and when it penetrated there, more colleges opened. So this strengthened the education system in turn. it is noteworthy that it/ bpo industry in those cities have 100 percent more broadband penetration and 50 percent higher tele-density than any other state. the industry aims to further increase revenues from uSD 75 billion currently to uSD 225 billion by 2020 and from 2.7 million it expects to employ 10 million people. So it is imperative that it diversifies and goes to other cities. hence, if Manesar is being identified as an upcoming it nerve centre, it holds a lot of promise for the state (of haryana) and speaks volumes for the implicit trust that the industry has in Manesar that it would be able to provide the industry that kind of infrastructure to prosper.

Mr. Mittal stressed, “the need of the hour is to create more integrated townships as people should live where they work.” he explained how cities near San francisco and boston developed because people wanted to live where they worked. “for that to happen, it is very critical that education, social infrastructure, security, public transport and connectivity are in place.” And Manesar holds a lot of promise to deliver this. he urged that what is required is to make Manesar the role model of a satellite township that other cities across other indian states can emulate. “it (Manesar) has all the ingredients of emerging as an it nerve centre in the future”, Mr. Mittal concluded.

21


ManesarThe Japanese connection

strong e r ti e s b etWe e n i n diA An d jAPAn = “AdvAntAge MAnesAr”Manesar has been a breeding ground for Japanese firms for a while now. Almost 70 percent of Japanese investment in india is in haryana, especially in automobiles such as Maruti Suzuki (Rs. 7,000 crore in two plants) and honda (Rs. 1,500 crore in two plants, with another Rs. 300 crore planned), toyota (Rs. 100 crore) and also in electronics like panasonic, ASti etc.

the service-oriented and process-driven approach exhibited by Japanese business philosophy is very encouraging. the focus on seeking superior quality products benefits both indian and Japanese businesses. this long term relationship-based business approach is quite similar between the two business cultures, and hence it is a mutually beneficial for both sides.

the reasons for Japanese firms’ interest in india are plenty. n Currently, the Japanese share of automobile market in india is already above 50 percent, and Japanese tier 2 and tier 3 auto component manufacturers are expected to enter india shortly.n Japanese firms recognize the fact that there is a growing market in india, and the entry into a new country offers diversification.n the infrastructure investments in india by Japan are expected to be about a trillion uSD in the next 5 years including public private partnerships.n Japanese companies are also looking to balance their investments in india vis-à-vis China and other Asian countries. As Japanese companies seek to de-risk

their investments, the governments of the two countries look to forge a stronger, strategic partnership; hence, deeper business ties are inevitable.n the Comprehensive Economic partnership Agreement (CEpA) signed between india and Japan in 2011, aims to strengthen bilateral relations between the two countries. the pact seeks to abolish import duties on most products, increase access for indian professionals and contractual service suppliers to the Japanese market and liberalize investment rules. this indicates that Japan- india business partnerships are slated to enjoy a long innings.n business ties continue to grow stronger even as the two countries celebrated 60 years of diplomatic ties between the two countries in 2012.n there are many sectors in india which have benefited and continue to do so from the expertise of Japanese firms – manufacturing, automotive, machinery, electronics, infrastructure, smart city solutions, integrated city development, high speed rail transportation (bullet trains), power generation, transmission and distribution, water purification, renewable energy, logistics etc.n Some of the existing Japanese firms operating out of Manesar and adjoining Jhajjar district are: Denso haryana, honda Motorcycles and Scooters india, Maruti Suzuki, Nagata india, Nippon Auto, Nippon leakless, oMRoN, oSG india, panasonic, yushiro india, Suzuki powertrain, toyota and panasonic.

22


Manesar Benefits for SMB enterprises and start-ups

small and medium business (sMb) enterprises are an important driving force of the indian economy. this sector constitutes over 90 percent of total business enterprises in the country, and over 40 percent of the total exports of the country, employing more than six (6) crore workers. operating across every Manufacturing and Services sector, these low investment enterprises generate the highest employment in the country, second only to agriculture. According to a recent fiCCi report, the Govt. of india has laid down a goal that 27 percent of the country’s GDp should be accrued from Manufacturing, of which 45 percent should come from MSMEs (micro, small and medium enterprises). Micro and small enterprises typically tap the local labour pool, extending

them gainful employment. thus, the large corporates based in Manesar have created opportunities for ancillary and other small enterprises.

Automotive is one of the key industry segments that comprises of a large number of MSMEs. these MSMEs manufacture engine parts, body and chassis parts, suspension and braking parts, and drive transmission and steering parts. Manesar, with its large automobile manufacturing base becomes the obvious choice for MSMEs to set up base here.

for MSMEs to flourish, it is imperative that it get the right impetus from the government. it is notable that hSiiDC has made measures to ensure that this significant sector gets its due. it is primarily keeping this in mind that hiSiDC has allotted plots, not only as big as 600 acres for large conglomerates such as Maruti Suzuki, but as small as 450 sq meters for small players. there are a large number of plots of 450 to 1000 sq meters category in the area. this corroborates the fact that Manesar is truly an integrated township, where the micro and small enterprises too are given equal opportunity to carry out their businesses, opening up employment opportunities for local youth and skilled workers from all round the globe.

APeX industry bodies hAil MAnesAr’s PotentiAlindustry stalwarts opine that Manesar is transforming into an industrial and commercial hub owing to the effectiveness of fundamental facilities such as health facilities, schools, post office, banks, warehouses, and cargo. As a result, the city is witnessing a massive influx of corporate traders, realty players, manufacturers, industrialists, and also MNCs.

AssoChAM recently released a study titled ‘MAnesAr: golden City oF hAryAnA’. interesting facts emerged from the report: n A large number of Japanese small scale industrial units (SSis) are likely to shift their manufacturing base to Manesar.n Already, leading global brands like toyota, Mitsubishi, honda, Suzuki, etc, are making large investments in Manesar real estate. the proposal to build an expressway to Jaipur is adding value to Manesar’s real estate. Most of the top-notch builders in india such as Reliance, Dlf, unitech, Raheja, vatika, orris infrastructure,

23


Amrapali, Antriksh, etc, have already bought land banks on this stretch to develop townships.n the government has acquired 2,000 acres for the education city and is all set to make Manesar a dream destination for education. According to Mr. Sunil Dahiya, Co-chairman, ASSoChAM’s National Council on Real Estate, “the unique aspect of Manesar is the simultaneous development of residential complexes for both executive and non-executive staff. the hSiiDC acquired 250 acres across the national highway and has allotted it to various units for building staff quarters there.” this will stimulate movement to the city. n Manesar is well positioned to emerge as a Mecca for

both international and india MNCs and other industrial units – specific infrastructure, service ancillaries, commercial services, and an array of other essential services. the developing area is a perfect setting for trade towers, corporate offices, industrial units, and shopping malls. A flyover on Nh-8, which links the residential zone with the industrial zone, has helped to make the city more alluring to end users.

the report further revealed that the real estate market in Manesar has been growing at a very fast pace ever since some leading MNCs moved to Manesar. the rates of commercial properties in Manesar are estimated to have increased by 40-45 percent in the last few months.

Manesar SWOT analysis and evaluation on key parametersthe key indicators that point to positive long term growth prospects for a new urban agglomeration / smart city such as Manesar can be summed up as follows:

1.ConneCtivity: to local, regional, national and international business destinations. Manesar is well connected via road, rail and air to all major cities such as Delhi, Jaipur, Mumbai, bangalore, Chennai and international business hubs such as Singapore, hong Kong, Shanghai, tokyo, Sydney, Dubai, london, paris, frankfurt, New york, Chicago and beyond.

2.inFrAstruCture And PubliC serviCes: Avai labi l i ty and qual i ty of roads, power, water, telecommunications etc. for residential, commercial and industrial purposes. iMt Manesar is planned to provide best-in-class access and services via public as well as private infrastructure.

3.huMAn resourCes: Availability of quality, skilled human resources from diverse technical, scientific

a n d m a n a g e m e n t backgrounds.

A recent count showed that nearly 70 public and private diploma colleges, degree colleges, universities and / or autonomous institutions are already operating in and around the Gurgaon-Manesar area, turning out a steady stream of skilled resources. this includes names like Amity university Manesar, Apeejay Stya university Gurgaon, MDi Gurgaon, National brain Research Centre Manesar, Sushant School of Architecture Gurgaon and others.

in addition, the very large number of graduate and post-graduate students joining the workforce from institutes, colleges and universities located in Delhi NCR including Rohtak, Jaipur, Alwar and Neemrana, provide a steady stream of well qualified resources, available for both manufacturing and service industries to tap into.

4.eMPloyMent oPPortunities: Choice of attractive options to attract a critical mass of skilled and

24


experienced professionals to live and work in the city / region.the Gurgaon-Manesar-bawal-bhiwadi belt is home to a

very large number of industries and reputed corporate houses that reads like the who’s-who of the fortune 500. A brief list is provided in a later section of this chapter.

5. seCurity And stAbility: physical security, good law and order conditions and political stability of the city / region / state.

Gurgaon-Manesar district has seen strong focus of the local administration to increase police manpower and upgrade their mobility and visibility through acquisition and deployment of highway patrol vehicles and so on. Similarly, with the increase in the number of industrial and high-rise establishments in the region, the fire brigade services are also undergoing an overhaul.

6. Cost oF living: Reasonable and affordable cost of living for citizens and residents from different SECs (socio-economic categories).

both the Govt. of haryana (through huDA – haryana urban Development Authority) and private builders are constructing and leasing out / selling small urban dwelling units for middle class and economically weaker section (EWS) residents. this movement received a major impetus with the announcement of the Rajiv Gandhi urban Development Mission (RGuDM) under the JnNuRM program.

in addition to the investment to the investment to be made

by private developers, the Govt. of haryana has earmarked an allocation of Rs. 2,500 crore under RGuDMh to be spent over a period of five years with a yearly breakup of Rs. 500 crore. the state government further aims to play a facilitative role to encourage participation of private sector for integrated development of the cities in haryana, particularly for providing affordable housing.

7. WeAther And CliMAte, entertAinMent Avenues: While a mild climate of a city / region tends to attract businesses and executives, the availability of good public infrastructure in the city / region can help to offset the vagaries of extreme hot or cold weather conditions (for instance, Dubai uAE or Dublin ireland).

Manesar residents have easy and comfortable access to the rich and diverse places of tourist interest in the Delhi-Agra-Jaipur tourism Golden triangle, including World heritage Sites such as the qutab Minar Delhi and taj Mahal Agra. Additionally, weekend getaways at a short distance such as the famed hill stations of himachal pradesh and uttarakhand and the forts and palaces of Jaipur and Rajasthan provide a range of options to the weary business executive and his / her family.

Gurgaon-Manesar are also home to some of the best shopping destinations, and a short drive away from the popular downtown shopping and business areas of Delhi and New Delhi.

APPendiCesn Economy: the india Story, Growth prospectsn india it-iteS industry: performance, prospectsn urbanization: JnNuRM, DMiC and the Emergence of Gurgaon-Manesar as the Commercial Capital of haryanan Real Estate industry trends in Delhi NCR: Advantage Manesar

25

A CAse study on MAnesAr EconomyThe India Story, Growth Prospects

26


bACKg rou n d: t Wo deCAde s oF eC onoM iC liberAlizAtionthe economy of india is the tenth-largest in the world in terms of nominal GDp and the third largest in terms of purchasing power parity (ppp). the country is one of the G-20 major economies and a member of the bRiCS grouping. According to the iMf, on a per capita income basis, india ranked 140th by nominal GDp and 129th by GDp (ppp) in 2011. india is the nineteenth largest exporter and tenth largest importer in the world. Economic growth rate slowed to around 5% for the 2012-13 fiscal year.

the post independence-era indian economy (1947 to 1991) was based on a mixed economy combining features of capitalism and socialism, resulting in an inward-looking, restricted market access and import-substituting economy that failed to take advantage of the post World War ii expansion of global trade. this model contributed to widespread inefficiencies and corruption, and the failings of this system were largely on account of poor implementation of government policies and programs.

in 1991, india adopted liberal and free-market oriented principles and liberalized its economy to international trade under the guidance of Dr. Manmohan Singh, who then was the finance Minister of india under the leadership of p. v. Narasimha Rao, the then prime Minister. the trust of the first generation of reforms was elimination of license Raj a pre- and post-british Era mechanism of strict government control on setting up new

industry. following these strong economic reforms, and a strong focus on developing national infrastructure such as the Golden quadrilateral project by Atal bihari vajpayee, prime Minister from 1999-2004, the country's economic growth progressed at a rapid pace with very high rates of growth and large increases in the incomes of people.

Since 1991, continuing economic liberalization has moved the country towards a market-based economy. by 2008, india had established itself as one of the world's fastest growing economies. Growth slowed to 6.8% in 2008-09 on account of the impact of the world-wide financial meltdown, but subsequently recovered to 7.4% in 2009-10, while the fiscal deficit rose from 5.9% to a high of 6.5% during the same period. As of 2011, india's public debt stood at 68.05% of GDp, which is highest among the emerging economies. however, inflation remained stubbornly high with 7.55% in August 2012, the highest among its bRiCS counterparts.

india's large service industry accounts for 57.2% of the country's GDp while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively. Agriculture is the predominant occupation in Rural india, accounting for about 52% of employment. the service sector makes up a further 34% and industrial sector around 14%. however, statistics from a 2009–10 government survey, which used a smaller sample size than earlier surveys, suggested that the share of agriculture in employment had dropped to 45.5%.

Major industries include telecommunications, information

Economy The India story, Growth prospects

27


technology, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, software and pharmaceuticals. the labour force totals 500 million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats, poultry and fish.

in 2011-12, india's top five trading partners are China, united Arab Emirates, united States, Saudi Arabia and Switzerland.

previously a closed economy, india's trade and business sector has grown fast. india currently accounts for 1.5% of world trade as of 2007 according to the World trade Statistics of the Wto in 2006, which valued india's total merchandise trade (counting exports and imports) at uS$ 294 billion and india's services trade at uS$ 143 billion. thus, india's global economic engagement in 2006 covering both merchandise and services trade was of the order of uS$ 437 billion, up by a record 72% from a level of uS$ 253 billion in 2004. india's total trade in goods and services has reached a share of 43% of GDp in 2005-06, up from 16% in 1990-91.in the year 2010-11 india's total merchandise trade (counting exports and imports) stands at uS$ 606.7 billion and is currently the 9th largest in the world. During 2011-12, india's foreign trade grew by an impressive 30.6% to reach uS$ 792.3 billion (Exports: 38.33%, imports: 61.67%).

th e F utu r e: P os it ive long te r M g roW th ProsPeCtsthe first two decades of economic liberalization, post 1991 saw much needed reforms in governance being implemented

Chapter 1

Fig. 8. indiAn eConoMy Post eConoMiC liberAlizAtion: reAl gdP groWth yeAr-on-yeAr (%), Fy 1991 to Fy 2008

10

8

6

4

2

091 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08

5.3

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4.8

6.56.0

4.4

5.8

3.8

8.57.5

9.4 9.69.0

yEAR

GDp Growth (%yoy)

source: dalal street journal

Fig. 9A. indiA gdP (%) groWth estiMAtes Fy 2012-13

7.0

6.5

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5.5

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Plan

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5.4

5.7 to

5.9

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by successive governments. Even though 2012-13 is forecast to witness the slowest economic growth at about 5%, the slowest in the last ten years (please see figure 2 below), the long term growth prospects of the indian economy remain positive (please refer figure 3). the need of the hour is for political consensus across the spectrum to continue with the second generation of market-enabling reforms.

source: industry studies; un-esCAP; Adb; Planning Commission and Ministry of Commerce, govt. of india

FEB2012

Feb 2013

MAy

AP

r

MA

r

Figure 9b. indiA’s Foreign trAde groWth trendsFy2009 to Fy 2013

2008-09

export

import

trade deficit

2009-10

2010-11

2012-132011-12}e

XP

or

t

2011-12

APRIL- FEBRuARy

(in uS $ billion)india’s Foreign trade

Feb 2013

118.4 109.6 118.7 184.9

18

5.3

178.8

251.1

303.7

303.7

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36

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25.0725.68

28.70

25.19

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38.0037.90

35.3737.90

14.9 13.9 13.4 16.2 10.3 15.5 15.7 18.1 21.0 19.3 17.7 19.9 14.92

trade deficit

Fig. 10. ProjeCted gdP groWth For usA, ChinA And indiA in us$ trillion, 2005-2030

50

40

30

20

10

02005 2010 2015 2020 2025 2030

yeAr

$(trillions)

Projected

GDp at market exchange rates

us

China

india

PrediCted eConoMiC groWth in ChinA, indiA And us

80

70

60

50

40

30

20

10

02005 2010 2015 2020 2025 2030

yeAr

$(trillions)

Projected

GDp adjusted for purchasing power

us

China

india

source: economist intelligence unit

“stop Press”: India Second Most Economically Confident Country in 2013 after Saudi ArabiaFebruAry 27, 2013

A declining inflation rate for the fourth consecutive month (September-December

2012) has boosted india's economic confidence. besides the decline in inflation rate, which stood at 6.62% in January, positive investor confidence was another factor that stoked the country's economic confidence, according to a report by global research firm ipsos.

According to the "ipsos economic pulse of the world" survey, india's economic confidence shot up by 8 points to 68% in the month of January 2013 compared to the month of December 2012, making it the second most economically confident country in the world after Saudi Arabia.

"Shedding its 9-month long hawkish monetary policy stance, the Reserve bank of india slashed its key interest rates by 0.25% taking cognizance of the moderation in demand side pressures to inflation and greater than anticipated slowdown in growth. Easing of policy rates will bring in additional liquidity into the system to perk up growth through reduced cost of borrowing," said Mick Gordon, CEo of ipsos in india.

"the year 2013 is likely to see revival in the industrial activity and modest recovery in the services sector which would support recovery in growth levels. the pace of economic reforms that has been initiated must continue uninhibited and it needs to be effectively implemented so that it translates into tangible investment decisions," said Gordon.

As per the study, 45% of indian citizens believe their local economy which impacts their personal finance is good, a marginal rise of 1 point and an optimistic 53% people expect that the economy in their local area will be stronger in next six months.

the online ipsos economic pulse of the world survey was conducted in December 2012 among 18,008 people in 24 countries. ipsos is an independent market research company controlled and managed by research professionals. 28

inForMAtion teChnology industrythe india information technology (it) and information technology-enabled Services (iteS) industries have not only transformed india's image across the globe, but also fuelled economic growth by energizing the higher education sector (especially in engineering and computer science). the industry is estimated to employ a direct workforce of nearly 3 million and generate indirect / related employment of another 9 million. the india it-iteS sector has helped project india as a global technology "superpower" and contributed in large measure to social transformation within the country.

furthermore, indian companies, across all other industry verticals, depend to a large extent on it and iteS service providers to make their business processes efficient and streamlined. the india manufacturing sector has the highest it spending followed by automotive, chemicals and consumer products industries.

industry body National Association of Software and

Services Companies (NASSCoM) predicts that the iteS industry will bring in around uS$ 225 billion by 2020, wherein 80 per cent of the growth would come from the presently untapped sectors and regions.

MArKet sizethe indian it and iteS industry has continued to perform its role as the most consistent growth driver for the economy. Services, software exports and business process outsourcing (bpo) remain the mainstays of the sector. over the last five years, the it and iteS industry has grown at a remarkable pace. A majority of the fortune 500 and Global 2000 corporations sourcing it-iteS services from india, and the country is the premier destination for the outsourcing of it-iteS services, accounting for 55 per cent of the global market in offshore it services and garnering 35 per cent of the iteS-bpo market.

india's it and bpo sector exports are expected to grow by 12-14 per cent in fy 2014 to touch between uS$ 84-87

India IT-ITeS IndustryPerformance, Prospects

29

billion, according to NASSCoM.india's internet industry is expected to contribute uS$ 100

billion to the country's gross domestic product (GDp) and generate about 22 million jobs by 2015, as per a recent report titled 'online and upcoming: the internet's impact on india', released by McKinsey and Co.

Domestic it spending in india is projected to reach uS$ 71.5 billion in 2013, an increase of 7.7 per cent as compared to uS$ 66.4 billion projected for 2012, as per a report by leading global analyst firm Gartner.

investMentsindian it's core competencies and strengths have placed it on the international canvas, attracting investments from major countries.

between April 2000 and December 2012, the computer software and hardware sector attracted cumulative foreign direct investment (fDi) of Rs. 52,377.08 crore (uS$ 9.63 billion), according to the Department of industrial policy and promotion (Dipp), Government of india.

in recent quarters, online retailing, e-commerce, collaborative applications, cloud computing and mobility have emerged as major driving forces behind the rapidly increasing growth of the domestic it industry.

governMent initiAtivesthe union Cabinet recently approved the National policy on information technology 2012. the policy aims to increase

source: CyberMedia research (CMr)

Fig. 11. indiA doMestiC it sPending, 2003-2013: soMe Key trends

india Domestic it-iteS Market Size & Growth Rate trends, 2003-2013

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Growth phase 2.0CAGR 14.5%

Growth phase 1.0CAGR 24.0%

infrastructure build-up

infrastructure Consolidation

infrastructure leverage

30


31


revenues of the india it and iteS industry from uS$ 100 billion to uS$ 300 billion by 2020 and expand exports from uS$ 69 billion to uS$ 200 billion by 2020.

As a part of the National policy on Electronics (NpE), the Government of india is planning to set-up 15 new laboratories under public-private-partnership (ppp) model for hardware and software testing. the labs, for which the locations are yet to be decided, will facilitate registration and testing of it products before they are launched in the market.

the Ministry of finance has issued a circular to chairmen of public sector banks and regional rural banks that all payments to customers, staff, vendors and suppliers as well as disbursement of loans and payments towards investments should be made only through the electronic mode.

the roAd AheAd For the indiA iCt seCtorindian corporates, across industry verticals, are installing and using it products and services to improve their business operations and render better customer service, as is evident from figure 12, below.it spending by key industry verticals is expected to gather pace as the economy revives and gathers steam in 2013. for instance, according to advisory firm Zinnov, it spending by the india bfSi sector is expected to reach uS$ 3.5 billion by 2014. Similarly, iDC Manufacturing insights predicts that it spending by the india Manufacturing segment would grow at an average rate of 14.5 per cent between 2012 and 2016 to reach uS$ 8.78 billion, or double the it expenditure in 2011.

Similarly, growth of the india telecoms sector (please refer

Fig. 13. indiA Mobile telePhony subsCribers, 2003-2013: sustAined groWth

india mobile market subscribers and growth rates (2003-2013)

total Subscribers (‘000)

600,000

500,000

400,000

300,000

200,000

100,000

0

120%

100%

70%

60%

40%

20%

0%2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GR

oW

th R

AtE

Su

bS

CR

ibE

R b

AS

E (

‘00

0)

notes: All figures are rounded; the base year is 2007. Mobile subscriber CAGR (2007 - 2013): 18.3%source: Frost & sullivan

Fig. 12. indiA teleCoMMuniCAtions industry groWth Fy 2008 to Fy 2012 (us$ b)

india telecommunications Sector Growth in the face of Diversity

2007-08 2008-09 2009-10 2010-11 2011-12

350

300

250

200

150

100

50

0

131

95

158

115

145

120

171

114

182

113

Equipment Services

figure 13, below) has good long term prospects, in spite of the controversy surrounding spectrum auctions in the last few years.

further, in a highly visible and almost ubiquitous phenomenon, indians have taken to mobile telephony as a way of life and this trend continues unabated, as shown in figure 14 below.

various studies in the last few years have shown the positive correlation between adoption mobile telephony and the economic and social well-being of individuals and communities across the world.

32


i n diA it An d ite s s eCtor g roWth story to Continue: A FeW PointersCyberMedia Research (CMR) estimates that spends on it services and it-enabled services in the country will grow to over Rs. 98,000 crore by 2014 across industry verticals, while spends on it products (both hardware and software) will touch nearly Rs. 2,34,000 crore.According to CyberMedia Research (CMR), the combined telecom Services and products markets will touch Rs. 2,88,832 crore in 2012. this sector will grow at a CAGR of 15.8% over five year period 2010-2014 leading up to a total domestic telecoms market opportunity of Rs 3,77,685 crore by 2014.

the telecoms growth story will be a function of the enhanced demand for high speed broadband and data services from both enterprises and consumers, as 3G and bWA / WiMax services are rolled out by various operators to cover an increasing number of cities and towns.

the growth in the india domestic mobile device market will be fuelled by a more than 150% increment in the value of featurephones and smartphones shipped, from Rs 50,714 Crore in 2010 to Rs 1,28,729 Crore in 2014.

ACCording to CyberMediA reseArCh (CMr):1) domestic it services and it-enabled services markets to grow at a CAgr of 21.1% to touch rs 98,188 Crore

by 2014.of the Rs 98,188 Crore domestic it Services and iteS

market in 2014, it Services alone will grow at 16.7% CAGR over 2010-2014, while domestic iteS spending will grow at a CAGR of 30.2% over the same period.

Managed Services will emerge as a strong growth driver with demand for increasingly sophisticated services engagements from the india enterprise segment. 2) growth of the Cloud Computing paradigm: the india public Cloud Computing market is expected to grow at a 53% CAGR over the five-year period 2010-2014 to touch Rs. 2,434 Crore by 2014.3) it Product segments like software (20.1%), PCs (12.9%), servers (13.3%) and networking equipment (15.5%) will all record 'above average' CAgr for the 2010-2014, driven by new deployments plus productivity enhancement initiatives in the business enterprise segment, and continued strong consumer demand for clients, particularly for notebook PCs.4) enterprise it infrastructure spending will be strategically driven towards 'resource optimization' and 'business productivity boosting' technologies such as storage solutions, data center consolidation and virtualization, and unified communications plus collaborative applications.

high growth areas in enterprise it infrastructure spending in 2013 and beyond will include:

CAtegories 2010 2011 2012 2013 2014 CAgr 2010 - 2014

it Services + it-enabled Services 45,672 55,235 67,102 81,710 98,188 21.1%

it products (Software + hardware) 77,686 90,933 104,595 119,312 135,742 15.0%

total Domestic it + iteS Market (Rs. Crore) 123,358 146,168 171,698 201,022 233,930 17.3%

telecom Services 159,519 184,207 205,454 226,741 248,956 11.8%

Mobile Devices 50,714 64,077 83,377 105,625 128,729 26.2%

total Domestic telecoms Market (Rs. Crore) 210,233 248,284 288,832 332,366 377,685 15.8%

total india it, iteS, and telecoms Market (Rs. Crore)

333,591 394,452 460,529 533,389 611,615 16.4%

tAble 1. indiA doMestiC it ProduCts And serviCes And teleCoM ProduCts And serviCes industry, 2010 -2014


notes: l hardware includes pCs, Servers, printers & MfDs, Storage, Networking Equipment, Consumables and Accessories.l Networking Equipment includes Switches, Routers, ipt and WlAN equipment, SCS, RAS, Modems, vSAt, Softswitches and Media Gateways.l Mobile telecommunication Services include voice telephony services, data services and vAS.l fixed-line telecommunication Services include pStN, leased line, ip-vpN, Wll, xDSl and other services.l Mobile phones include featurephones and smartphones.l Spends on telecoms Network infrastructure and tablets not included.

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Fig. 14. indiA lAPtoP PC And tAblet groWth ForeCAst (unit shiPMents): 2013 versus 2012

india Mobile Computing Market: laptops vs tablets, Cy 2012 vis-a- vis 2013*

2012 2013

uN

itS

: Mil

lio

N

laptops: 5.2

laptops: 25% yoy

tablets: 100% yoy

laptops: 6.5tablets: 6


n Storage resource management / optimization, data de-duplication and automated tiering solutionsn Data Center consolidation, virtualization and 'Green it' initiatives will focus on reducing overall cost of business operations and maximizing availability and utilization of resourcesn unified Communications (uC), collaborative applications plus other 'cost saving' solutions.

other emerging verticals, which are expected to be future drivers of growth for the india domestic it-iteS sector are Smart infrastructure (intelligent transportation), and Energy

& power utilities sectors. All of these sectors are witnessing deployment of innovative it-iteS and telecoms applications.

it applications such as Automatic fare Collection (AfC) Systems for Rail, Road and Multimodal transport (like Metro Rail, Monorail, and bus Rapid transit (bRt)); intelligent transport System (including urban traffic Management System, highway traffic Management System, public transportation System, traveler information System, toll Collection System) for toll plazas, national highways and city transport infrastructure; Airport information Management Systems (AiMS) for new airport terminals as well as greenfield airports are being extensively deployed. Around Rs 206 Crore was spent during 2010 to deploy these 'intelligent' it applications and nearly Rs 4,000 Crore is the expected value of it spending on these deployments in the 4 years from 2011 to 2014.

the Restructured Accelerated power Development and Reforms programme or R-ApDRp Scheme of the Ministry of power, Government of india plans to use it-iteS for making power transmission and distribution infrastructure in india 'intelligent'. it applications like Energy Accounting & Auditing, Supervisory Control and Data Acquisition (SCADA) systems, MiS, integrated Meter Reading (billing & Collection), Automatic Data logging System, GiS mapping, Automatic Meter Reading and prepaid electricity are being enabled across most of the distribution companies (power utilities or Discoms) across india. pilots of Smart Grid deployment have also been initiated by a few discoms.

to sum up, the combined india it Services, iteS and it products, and telecom Services and Mobile phones markets, estimated to have crossed Rs. 4,60,000 crore in 2012, will continue to grow at a CAGR of 16.4 percent between 2010 to 2014 to aggregate revenues of Rs. 6,11,615 crore by 2014.

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Urbanization Role of JnNURM across India & Haryana

jnnurM: PlAnned urbAnizAtion ACross indiA to sPur eConoMiC groWthJawaharlal Nehru National urban Renewal Mission (JnNuRM) is a massive city-modernization scheme launched by the Government of india under Ministry of urban Development. it envisages a total investment of over uS$ 20 billion over seven years. Named after Jawaharlal Nehru, the first prime Minister of india, the scheme was officially inaugurated by prime Minister Manmohan Singh on 3rd December 2005 as a program meant to improve the quality of life and infrastructure in the cities.

JnNuRM is a mega mission, which focuses primarily on the orderly growth and development of urban agglomerations in and around indian cities. JnNuRM aims at creating ‘economically productive, efficient, equitable and responsive cities’ by a strategy of upgrading the social and economic infrastructure in cities, provision of basic Services to the urban poor (bSup) and wide-ranging urban sector reforms to strengthen municipal governance in accordance with the 74th Constitutional Amendment Act, 1992.

JnNuRM is a unique project dedicated to the redevelopment of india’s cities, as india has traditionally primarily focused on the development of rural areas, especially its underdeveloped villages.

As per the 2011 census, india is home to about 1.21

billion people, making it one of the most densely populated areas of the world. it was also estimated that 68.9% of india’s population lives in rural areas. however, urban india is growing fast but sometimes in unplanned ways. india is benchmarked to be the next global technology "superpower". the indian economy even held a steady growth rate during the recent global financial meltdown and economic recession. however, unplanned growth has taken a toll on urban india, especially due to problems in reforming the agricultural sector in rural india. hence, the rising population due to migration from rural to urban cities as well as other factors have contributed to the increase of slums in the cities and degradation of cities due to lack of planning has also taken place.

inadequate infrastructure, rising population rates as well as rising urban poverty are also major causes to the degradation of the cities. hence the Government of india has taken up the initiative to redevelop towns and cities by developing infrastructure, municipal reforms and providing aid to the State Governments and the urban local bodies (ulbs), in order to develop urban india. As per the JnNuRM mission brochure, cities and towns account for 30 percent of the country’s population, contributing 50-55 percent of the Gross Domestic product (GDp). the fast degrading conditions of the cities forced the Government to rethink their strategies in order to adhere to the socio-economic objectives of the country.

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urbAn develoPMent

urban poor

struCture oF the jnnurM ProgrAMsub-missionsJnNuRM essentially incorporates two sub-missions into its program:n Sub-mission for urban infrastructure and Governance administered by the Ministry of urban Development, with a focus on water supply and sanitation, solid waste management, road network, urban transport and redevelopment of old city areas;n Sub-mission for basic Services to the urban poor (bSup) administered by the Ministry of housing and urban poverty Alleviation with a focus on integrated development of slums.

in addition to this, it also has two further components:n Sub-mission for urban infrastructure Development of Small & Medium towns (uiDSSMt) administered by the Ministry of urban Development (MouD), with a focus on subsuming the schemes of integrated Development of Small and Medium towns (iDSMt) and Accelerated urban Water Supply program (AuWSp) which are already in existence and which aim at planned urban infrastructure improvements in towns and cities under its purview;n Sub-mission for integrated housing and Slum Development programme (ihSDp) administered by Ministry of housing and urban poverty Alleviation (MhupA) was envisaged and brought into effect in 1993-94 in accordance with providing the entire population with safe and adequate water supply facilities. program mainly implemented in towns having population less than 20,000 as per 1991 Census.

Mission objeCtivesn focused attention relating to infrastructure services in the context of integrated development to be covered under the Mission.n Make efficient and increase self-sustaining capabilities of cities; provision infrastructure services by securing linkages between asset creation and asset management.n Ensure adequate investment of funds to fulfill deficiencies in urban infrastructure services.nplanned development of identified cities including peri-urban areas, out-growths, urban corridors, so that urbanization takes place in a dispersed manner.nScale up delivery of civic amenities and provision of utilities with emphasis on universal access to urban poor.ntake up urban renewal program, i.e., re-development of

inner (old) city areas to reduce congestion.

durAtion oF the Missionthe duration of the Mission is of a period of seven

years until beginning from December 2012. An evaluation of the experience of implementation

of the Mission was to be undertaken before the end of the 11th five year plan in 2012.

iMPleMentAtion MeChAnisMfunds for the JnNuRM are channeled through state-level agencies, where grants from the Central and State governments are pooled and passed on as grants or soft loans to cities provided

that they have prepared city development strategies and that the investments identified fit within these strategies.

it supports public-private partnerships and cost recovery to make service providers financially self-sustaining. the share of grant funding by the central government can vary from 35% in the largest cities to up to 90% in cities located in the Northeast. Most cities receive grants covering 50% or 80% of costs depending on the size of the city. Capacity building is also included in the mission to assist urban local bodies to prepare strategies and projects.

Mission CoverAgeAs per the JnNuRM guidelines, only select cities/urban Agglomerations (uAs) as per 2001 Census have been chosen for the implementation of the programme as per norms/criteria mentioned below:n A: Cities / uAs with 4 million plus population as per 2001 census = 7 citiesn b: Cities / uAs with 1 million plus but less than 4 million population as per 2001 Census = 28 citiesn C: Selected Cities / uAs (State Capitals and other cities/uAs of religious/historic and touristic importance) = 28 cities

eligibility CriteriA For seleCtion oF CitiesA total of 67 cities are eligible, provided that they have elected bodies in position. thirteen specific reforms were made mandatory for states and municipalities before they could access funds from the JnNuRM program. At the state level, these include decentralization of urban planning as well as water supply and sanitation from the states to cities, as well as the enactment of laws for community participation and

36


public disclosure. At the municipal level, the reforms include adoption of modern accounting systems, e-government, improvements in property tax collection, better cost recovery for water supply, sanitation and solid waste management, as well as targeting of investments to the poor.

ground rePortstate level reforms. As of 2012 Gujarat led the tally for the state level reforms, being the only state to have achieved all ten reforms required by the mission. five states have achieved 9 out of 10 reforms: Andhra pradesh, Maharashtra, Madhya pradesh, orissa and uttar pradesh. public disclosure and community participation laws have initially progressed slowly, with only five states managing to enact them as part of the reform agenda as of 2009. however, as of 2012 community participation laws have been enacted by 22 out of 31 states, and public disclosure laws were enacted by 27 states.

City level reforms. As of 2012, visakhapatnam, Surat and pune had the distinction of having accomplished all eight city level reforms. Chennai, Greater Mumbai and hyderabad had achieved 7 out of 8 reforms. out of 67 cities, 30 had achieved the 90% target for property tax collection, 20 had achieved full operation and maintenance cost recovery for water supply and sanitation, but only 8 had achieved cost recovery for solid waste.

sanctioned projects. As of August 2012, a total of 552 projects requiring an investment of Rs. 17,984 crore (about uS$ 3.5 billion) had been approved under the uiG (urban infrastructure and Governance) module by the Ministry of urban Development across 31 states and union territories. Among the states, Maharashtra has been sanctioned the maximum number of projects under the mission, while among cities, bangalore has had the highest number of approved projects.

stAte/ distriCt/uA/ City/

toWn

CiviC stAtus oF the City/ toWn

PoPulAtion Child PoPulAtion in the Age grouP 0-6

literAtes seX rAtio

Child seX rAtio 0-6

literACy rAte

Persons MAles* FeMAles Persons MAles* FeMAles Persons MAles* FeMAles Person MAle FeMAle

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

panchkula MCl 210175 111622 98553 22111 12024 10087 165235 90938 74297 883 839 87.86 91.31 83.98

Ambala Sadar MCl 104268 54241 50027 9646 5239 4407 83236 43444 39792 922 841 87.97 88.66 87.22

Ambala MCl 196216 103533 92683 19645 10713 8932 155780 85004 70776 895 834 88.23 91.58 84.51

yamunanagar MCl 216628 115404 101224 22905 12556 10349 166419 92164 74255 877 824 85.91 89.61 81.71

Jagadhri MCl 124915 67752 57163 13635 7484 6151 95469 53660 41809 844 822 85.79 89.04 81.96

thanesar MCl 154962 83655 71307 15594 8401 7193 119482 67646 51836 852 856 85.73 89.89 80.85

Kaithal MCl 144633 76657 67976 16690 9156 7534 103329 59162 44167 887 823 80.76 87.65 73.07

Karnal MCl 286974 151668 135306 31291 17319 13972 220711 121652 99059 892 807 86.32 90.55 81.64

panipat MCl 294150 157302 136848 35477 19246 16231 218023 122629 95394 870 843 84.29 88.83 79.09

Sonipat MCl 277053 147933 129120 30809 17232 13577 215609 121821 93788 873 788 87.56 93.21 81.17

Jind MCl 166225 88561 77664 18825 10280 8545 123267 71129 52138 877 831 83.63 90.86 75.43

Sirsa MCl 183282 96806 86476 20161 11161 9000 135435 75796 59639 893 806 83.03 88.50 76.98

hisar MCl 301249 163338 137911 33514 18015 15499 216978 125172 91806 844 860 81.04 86.13 75.00

bhiwani MCl 197662 105372 92290 22507 12444 10063 147807 84028 63779 876 809 84.39 90.42 77.56

Rohtak MCl 373133 197754 175379 40715 22711 18004 279509 155679 123830 887 793 84.08 88.94 78.68

bahadurgarh MCl 170426 91736 78690 20374 11420 8954 132108 75714 56394 858 784 88.04 94.27 80.87

Rewari MCl 140864 74689 66175 15986 8958 7028 110205 61933 48272 886 785 88.25 94.22 81.61

Gurgaon M.CoRp 876824 475612 401212 108623 58842 49781 662969 373164 289805 844 846 86.30 89.54 82.46

faridabad M.CoRp 1404653 750446 654207 176773 95808 80965 1042168 592024 450144 872 845 84.88 90.44 78.53

palwal MCl 127931 67887 60044 15662 8614 7048 90937 52028 38909 884 818 81.00 87.78 73.42

tAble 2. hAryAnA PoPulAtion And literACy stAtus

population, child population in the age-group 0-6 and literates by residence & Sex-State, District, uA/City/town, 2011

source: Census of india, 2011

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Emergence of

Gurgaon-Manesar as the commercial capital of HaryanaM A n e s A r : s t r At e g i C "b u s i n e s s g At e WAy" strAddling delhi nCr And dMiCDue to the combined efforts of the Government of india and the coordinated efforts of the state governments of Delhi, haryana, Rajasthan and uttar pradesh, Delhi NCR is known to be one of the most well-planned regions of the country. Development of Delhi NCR has happened on a typical hub-&-Spoke model, as shown in figure 16 below.it may be observed that two of the three Growth Corridors originating from Delhi are part of the ‘Golden quadrilateral of india’ (Gqi) and are attracting the maximum amount of business, industrial and real estate development; these are:

n g. t. Karnal road – leading to punjab via Ambala, Kundli and other parts of haryanan yamuna expressway – leading to Kolkata via Agra, Kanpur and other cities of uttar pradesh (part of Gqi)n nh8 – Now known as the Delhi-Mumbai industrial Corridor (DMiC); leading to Mumbai via the states of haryana, Rajasthan and Gujarat (part of Gqi)Nh8 and yamuna Expressway now present independent nodes of development. While development on yamuna Expressway is still very nascent and is largely of affordable housing, the areas on the Nh8 are considered to be a more

Fig. 15. delhi nCr's hub-And-sPoKe Model: booM in reAl estAte oPPortunities

land value Mapping

source: industry

trends are analysed by identifying local focii of high value that extend to influence zones

3,001 to 6,000up to 3,000

land values(Rs/sq.ft.)

7,501 to 15,0006,001 to 7,500

Above 15,001

38


mature market and comprise of both luxury and affordable projects in all spheres; be it industrial, residential, commercial, retail, it parks, hotels etc.

reAl estAte industry trends in delhi nCr: AdvAntAge MAnesArManesar’s location confers distinct advantages. proximity to Delhi's iGi Airport and Nh 8 connecting Delhi – Jaipur. the biggest boon is that the Nh-8, connecting with both Delhi and Jaipur, is being widened to an 8-lane expressway between Gurgaon and New Delhi, with several flyovers, eliminating all red lights on the way, so that iMt has a rapid access to Delhi and reducing the drive to minutes! this makes Manesar home to some of the best urban infrastructure that can be found in northern india with many factories, offices, hotels and educational institutes situated there.

projects in Manesar hold the advantage of proximity to the city centre, coupled with facilities like health clubs, restaurants, hospitals, schools, shopping malls, etc, in the vicinity. Manesar is a budding city that is presently under development and is already a growing industrial hub. With the increasing competition in the real estate sector, the competition to turn Manesar into a swanky city is heating up.

Manesar is an integrated and independent industrial town having all the basic infrastructure to facilitate industrialisation of the area.

Manesar has been developed in four phases – hSiDC has developed 1,750 acres (7.1 km2) of land in phase i, while work is in progress in phase ii (180 acres) and phase iv (650 acres). hSiDC has allotted phase iii (600 acres) to Maruti udyog limited for their expansion project.

A lilliput in size but a giant in attainment, with just 1.37

Fig. 16. groWth oF reAl estAte in delhi nCr

NCR's urban Growth

source: industry

Kundli

KMp Corridor

Manesar

yamuna Expressw

ay

0 20 40 80

KM

39


percent of the country's geographical area and 1.97 percent of the country's total population, haryana is proud of being one of the first few states with the highest per capita income in the country.

Manesar is a part of NCR and fast emerging city of the state and is acquiring an identity as the "New Gurgaon".

the following table is a 'ready-reckoner' for the motorable distance of Manesar from various important locations in Delhi NCR:

Airport (iGi) 32 Km

New Delhi Railway Station 55 Km

iffco Chowk 14 Km

huda City Centre Metro 20 Km

Sohna Road 21 Km

Neemrana 72 Km

other distances (in "drive time"):n proposed iSbt – 5 minutes driven proposed Metro Station – 1 minute drive

A brieF on the eXPressWAys linKing MAnesAr to delhi nCr And dMiCAs highlighted above; Manesar is the only satellite town of the NCR that is surrounded by five expressways and each expressway brings in a unique set of advantages to this town. these expressways and their unique benefits may be summed up as follows:

1. PAtAudi roAdConnects Manesar to the interior sectors of Gurgaon, hence providing quick access to all important locations while by-passing the Manesar toll. A new link road has been made by huDA connecting Manesar with patuadi Road near Wazirpur village. the length of the road is 3.5 km.

2. dWArKA eXPressWAythis 18 Km long expressway is stated to become the next lifeline of housing sector of Gurgaon. Already home to some of the most promising real estate projects by the most well recognized developers; Dwarka Expressway is already a

Fig. 17. gurgAon-MAnesAr MAsterPlAn 2021: "MillenniuM City"

source: huda

40


well accepted investment destination of NCR. Gradually, the Dwarka Sub City is mushrooming as the hub of residential and commercial properties, and is deemed as the residential and commercial hub for the property buyers and purchasers. otherwise usually this route gets chocked due to the over burden of the travelers moving towards the Gurgaon city and the Manesar highway.

this incredible and long developed Dwarka Gurgaon Expressway is being developed by the haryana urban Development Authority (huDA) at a cost of Rs 120 crore as it's included in the Gurgaon-Manesar Master plan 2021 (urban Complex plan), which will further connect Dwarka to the Nh 8 including the 30 meters of green belt on the both sides.

Myriad private builders has acquired licenses from the haryana state governments to build the township in and across the Dwarka Gurgaon expressway, surrounding which there are multiple new projects in Gurgaon. All the new projects in Gurgaon are intended to give peaceful residential and commercial spaces to the population and the upcoming projects in around the Dwarka Gurgaon expressway are also giving the similar indication to the property investors, buyers, purchasers and renters

thus far, the biggies of the real estate industry has already targeted this area (Dwarka Gurgaon Expressway), where the residential projects have already been started, out of which, few are already on the verge of completion. the main connectivity being formed by this Dwarka Gurgaon

Expressway is the sole reason why real estate developers are inclined towards this area, and considering this fact popular builders like Ramaprastha (the Edge towers, the Atrium, the view, Skyz, at sector 37D), Raheja (the vedas (Sector 108) and Shilas/Srishti/Atharva (Sector 109)), Mahindra life Space (Aura at sector 110A), Earth infrastructures (Earth town-2 Sector 112) and Ansal Siddhartha (Estella at sector 103) have already started their respective projects, which are mentioned in the brackets along with their names.

At present, the property investors are in the quest of original bookings coming from the new builder projects, which are the Residency by landMark, Clarion by Satya, Estella by Ansal and Siddhartha, Centrum and Enigma by india bulls, Srishti by Raheja, Skyz by Ramaprastha, Earth town 2 by Earth infrastructure, land Mark by Era Group, Capital Gateway by tashee, Spire Central by Spire World, Spacio park Serene & Amstoria by bptp, and lumbini terrace homes by brisk. 3. golF Course eXtension roAdGolf Course Extension Road starts from Sectors 55-56, was constructed in 2009; it connects Golf Course Road to Gurgaon-Sohna Road and thereafter reaches the Nh8.

Most of the development took place on this stretch in the very recent past. the Golf Course Extension Road includes new Sectors like 61, 62, 65, 66, 67, etc. the road is being developed in line with the concept of walk-to-work with a 200-metre commercial belt running parallel to it across three new sectors under development.

Fig. 18. MAnesAr reAl estAte: strAtegiC loCAtion AdvAntAge

gurgaon expressway

dwarka expresswayPataudi road

toll

golf Course extension

iMt Manesar

spire edge

KMP

source: google Maps

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the road is 90 metres wide with six lanes and the construction is nearly complete. Green belts are being developed in the middle and along the road flanks making it an eco-friendly project.

4. Kundli-MAnesAr-PAlWAl eXPressWAy the twin expressways Kundli-Manesar-palwal and Kundli-Ghaziabad-palwal each 135km, coming up around Delhi. KMp Expressway Kundli-Manesar-palwal expressway is set to prove the single major catalyst of both residential and commercial development in haryana. Also known as Western peripheral Expressway (WpE), it is already under construction. With new-theme industrial townships planned along this 135-km stretch, indicators are clear that the corridor will see major residential development in the next few years. Already, major developers like tDi, parsvnath, Ansals, omaxe have started coming up with mega-residential and commercial projects close to the expressway to cater to future needs. haryana government officials maintain they have planned a cluster of 13 theme-cities along the expressway, and the number will increase with growth in demand. these proposed theme cities include:n New Cyber city n bio-Science city n Medical cityn fashion city n Entertainment city, and

n leisure cities.the alignment of the expressway takes off fromn National highway-1 near Kundli, n crosses Nh-10 at West bahadurgarh, n crosses Nh-8 near Manesar, and n finally joins Nh-2 near palwaln it passes through Gurgaon, Mewat, Rohtak, Jhajjar and faridabad, which are the fastest growing urban centres in NCR.

For gurgaon district, the state has proposed five theme cities:

1. Fashion city: will be developed on 220 hectare. the fashion city will be equipped with technology and vocational centres, besides having institutions for apparel manufacturing, fabric design, R&D institutions, jewellery and gems workshop.

2. entertainment city will be developed on 140 hectares.

3. World trade Center City: will be developed on 260 hectare. the World trade Center city will have a financial hub with soft trading facilities and will be networked with it facilities. An entire city that is being developed for harnessing the growth to be brought by the WoRlD tRADE CENtER, MANESAR.

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4. leisure city: will be developed on 750 hectare. the entertainment city would have hotels, motels, restaurants, shopping malls and multiplexes, facilities for concerts and musical programmes and nightclubs.

5. leather City: will be developed on 280 hectare. the leather city is proposed to come up near Nuh in Mewat district on the Gurgaon-Alwar roadSimilarly, Sonepat district will get specialized facilities like:n Rajeev Gandhi Education City n Sonepat-Kundli multifunctional-urban complex n A dry port city, slated to come up at palwal

State government officials have stated that the development of these theme cities is a part of the plan to develop the area along KMp Expressway as a global corridor. All these towns are expected to come up when the expressway becomes functional. officials said the spatial plan of the corridor will be developed around a number of specialized economic activities and each activity is envisaged to be the focus of a self-sustaining cluster city. Sources said that the threshold population required for sustaining physical and social infrastructure would govern the development of

cluster cities. Along the expressway corridor, infrastructure facilities on a par with international standards will be created, officials said. this will not only boost investor confidence but also provide world-class living experience. to boost industrial development along the corridor, specialized industrial estates have been planned at strategic locations, including a food park at Kundli in Sonipat, gems and jewellery park at udyog vihar in Gurgaon, and two apparel parks, one in Gurgaon and another at barhi in Sonipat, besides footwear and leather-garments parks at bahadurgarh. this industrial development will also boost residential demand in the region.

the country's biggest exhibition-cum-exposition ground is also slated to come up along the KMp Expressway and is likely to be almost double the size of pragati Maidan, New Delhi. the complex, planned over 200 acres, will be located at pachgaon Chowk, close to the industrial township of Manesar in Gurgaon.

5. nh8 or the delhi MuMbAi industriAl Corridor please refer details in the chapter "Emergence of Satellite Cities and towns".

Case Study_Manesar_A Dataquest-Global Services Report_6May2013

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