Page 32 - Digital October2022.indb

TICKER TAPE
CONSTRUCTION The Uttar Pradesh government’s approval of the Transit Oriented Despite being in close proximity to Delhi, Ghaziabad and satellite
UP GOVERNMENT’S TOD POLICY TO BOOST REAL ESTATE
ON RAPID RAIL ROUTE
areas such as Modinagar, Muradnagar and Meerut could not
attract buyer interest the way Gurgaon and Manesar did.
With the TOD policy approval, the under-construction Delhi-
Development (TOD) policy earlier this week, along the 1.5 km radius
of the upcoming Delhi-Ghaziabad-Meerut regional rapid transit
Ghaziabad-Meerut RRTS corridor will change the real estate
landscape of these satellite towns, said experts.
system (RRTS) corridor, will help the residential and commercial
The Delhi-Ghaziabad-Meerut RRTS corridor has already led to
real estate development in the area, said experts. Land use in
and around the RRTS corridor at Muradnagar, Modinagar, Guldhar
Meerut and nearby areas. We have seen an 8–10% increase in the
and Duhai is primarily agricultural, but the TOD policy will allow for
residential, commercial and mixed-use development, creating positive disruptions in the real estate markets of Ghaziabad,
real estate prices in these areas owing to the development of RRTS.
opportunities for real estate developers. The construction of the 82-km-long, India’s first, RRTS corridor is
A project of this size always impacts the real estate of the nearby progressing at a rapid pace. It will have 25 stations, including two
region in a positive manner. The RRTS corridor will not only facilitate depot stations, and local transit services will be provided on the
high-speed, safe and comfortable travel but also open up new RRTS network in Meerut, with 13 stations in a 21-km stretch for the
investment opportunities in its influence zones, which will benefit local transit needs.
local residents. Experts said the upcoming network of rapid rail will RRTS being the modern public transport mode in the region will
revive the real estate markets of Ghaziabad, Meerut and other also contribute to the high appreciation of prices in the real estate
areas along the corridor, including Modinagar and Muradnagar. sector of Meerut. The NCRTC aims to start operations on the 17-km
The TOD policy is aimed at providing access to all residential and priority section between Sahibabad and Duhai by early next year
commercial facilities within a walkable area so that people don’t and will commission the entire corridor by 2025.
need to commute long distances in private vehicles. The corridor will reduce the travel time between Delhi and Meerut
In the trans-Hindon areas of Ghaziabad, which are already to just 55 minutes, as compared to 2–2.5 hours by road.
packed with high rises, the policy will carve out the TOD “influence The NCRTC will develop stations as retail hubs. The corporation
zone” where vertical development will be encouraged. has separate development plans for different stations as it aims to
This will lead to densification around the transit stations and generate non-fare revenue from the `30,000 crore project, which
corridors and eventually turn into developments of new areas, has funding from the Asian Development Bank, New Development
increasing the value of properties. Bank and Asian Infrastructure Investment Bank.

TATA STEEL, PUNJAB GOVT INK PACT TO SET UP STEEL Zero carbon emissions by 2045. The cutting-edge EAF-based steel
SCRAP BASED ELECTRIC ARC FURNACE STEEL PLANT factory would manufacture construction-grade steel rebar under
Tata Steel Limited signed a Memorandum of Understanding (MoU) the Company’s main retail brand ‘Tata Tiscon,’ allowing Tata Steel
with the Government of Punjab to establish a 0.75 MnTPA long to expand its market position in the construction segment.
products steel mill using a scrap-based electric arc furnace (EAF). Tata Steel commissioned its first Steel Recycling Plant with a
The Memorandum of Understanding was signed in the presence capacity of 0.5 MnTPA at Rohtak, Haryana, in August of last year.
of Bhagwant Mann, Hon’ble Chief Minister of Punjab. It is the country’s first cutting-edge scrap processing facility.
The greenfield project in Kadiana Khurd, Hitech Valley, Ludhiana In pursuit of its net zero aim and leadership in sustainability, Tata
in Punjab is part of Tata Steel’s aim to invest in a circular economy Steel has implemented targeted interventions across the value
and transition to low-carbon steelmaking via steel recycling. chain and is committed to decreasing its carbon footprint in
It is an important step toward the Company’s aim of reaching Net production and throughout the product’s life cycle.

STEEL MANUFACTURERS’ MARGIN WILL IMPROVE IN THE demand, raising it by over 25%, according to the research.
SECOND HALF OF THE YEAR As a result, the operating margin for the entire year will be a healthy
According to a forecast by CRISIL, steel producers will experience 22–24%, which is higher than the pre-pandemic average of 20%
better times starting in the second half of the current fiscal year logged between fiscal years 2017 and 2020 but still 700–800 bps
as lower input costs and strong domestic demand would lessen lower than last year. It should be noted that due to increased
margin pressure and raise operating margins to over 25%. supply from Australian mines and declining demand from
According to CRISIL’s research, the industry was negatively international steel producers, the price of coking coal, a crucial
impacted by high input costs in the first quarter and is continuing raw material that accounts for 40% of production costs and is
under pressure in the current second quarter. typically imported by domestic steel manufacturers, has dropped
Due to high input costs, lower realizations, and the imposition from a historical high of $600 per tonne in March 2022 to $250 in
of export duty on finished steel products, among other factors, August. Decreasing pricing for raw materials, namely domestic
primary steelmakers’ operating margins are likely to decline to iron ore and worldwide coking coal, could reduce manufacturing
14–16% in the first half of this fiscal, drastically down from 30% last costs by 30% in the second half of this fiscal year.
fiscal, which was a decadal best, Crisil added. Due to the relaxation of COVID limitations in China and increased
However, the margin pressure is anticipated to lessen in the second anticipation of fewer production curbs to achieve decarbonization
half due to lower production costs caused by falling raw material objectives in the second half, global prices are anticipated to stay
prices and sustained realizations supported by strong domestic range-bound for the duration of the fiscal year.

32 CONSTRUCTION OPPORTUNITIES|OCTOBER 2022