Us commercial real estate market

The Union Cabinet approval for metro connectivity from HUDA City Centre to Cyber City in Gurgaon will help the real estate sector in the region, industry experts said.

The central government has given approval for 28.50 km line having 27 stations on the route. The total completion cost of the project will be Rs 5,452 crore.

“This development holds tremendous potential, particularly for the real estate sector around the Dwarka Expressway and New Gurgaon, as it will receive a significant infrastructure boost. The commencement of this metro connectivity will create numerous investment opportunities and generate employment,” said Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.

The project is proposed to be completed in four years from the date of sanction of the project and is to be implemented by Harayana Mass Rapid Transport Corporation Limited (HMRTC) which will be set up as a 50:50 Special Purpose Vehicle (SPV) of the Government of India and Government of Haryana after sanction order is issued.

“Over the past few years, the Central Peripheral Road along Dwarka Expressway has witnessed remarkable growth. With the completion of Dwarka Expressway nearing its final stages and the announcement of metro connectivity, the demand for residential properties is expected to witness a further surge from both end users and investors alike,” said Mohit Jain, Managing Director, Krisumi Corporation.

Improved connectivity and seamless integration will not only benefit commuters in Gurugram and Dwarka but also give fillip to the investment opportunity in the burgeoning areas near Dwarka Expressway and is likely to increase the region’s appeal to both homebuyers and companies alike.

“These developments are likely to spur infrastructure development and unlock new avenues for real estate investment, making this an exciting time for those interested in the real estate market,” said Vivek Singhal, CEO, Smartworld Developers

“With the nearing completion of Dwarka Expressway, the added metro connectivity further positions it as the most promising micro market in Gurugram, attracting homebuyers and investors seeking a vibrant and well-connected community,” said Ravish Kapoor, Managing Director, Elan.

The metro will enhance operational functionality and minimize congestion. With 27 elevated stations, the line will bridge old and new areas, enhancing connectivity and development.

“The line’s connection to the Indian Railway network and plans of integration with the IGI airport further enhances convenience and connectivity which will ensure efficient transportation, and will boost the potential of areas like Dwarka Expressway which have a mix of residential and commercial set-ups, which will further see a high rate of appreciation because of the seamless connectivity of that area,” said Santosh Agarwal, Executive Director and CFO, Alpha Corp.

Dwarka Expressway, already has some major projects and development.

“The metro’s arrival will undeniably invigorate the entire area, propelling Gurugram to unparalleled heights of success and prosperity,” said Gaurav Bhalla, Managing Director, Vatika Group.

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Today BloombergNEF released its seventh annual Electric Vehicle Outlook . The report offers reams of new data and projections around what’s become a familiar story: EV sales are growing at double digits each year and are now the only growth area in the global passenger vehicle market. China is the largest single market for EVs, and it’s also becoming a significant exporter of them. Additional EV adoption will mean much more extraction and processing of key materials like lithium.

Bloomberg News and Hyperdrive have covered the report’s key findings. Here are four additional takeaways:

1. EV sales are up, everywhere
Sales of passenger electric vehicles increased globally by more than 60% in 2022. They also increased in every major market. In India and Southeast Asia, traditionally small markets for EVs, sales were up more than 200%. They rose by 100% in Japan, close to 100% in China, 90% in Australia, 50% in the US and 17% in Europe.

What’s more, electric car sales rose against the backdrop of an essentially flat global auto market — sales of new cars across all powertrains rose only 2% year-on-year — and a declining market for new cars with internal combustion engines. Among the wealthy auto markets, only Australia saw increasing sales of ICE cars last year, and even then they rose only 1%.

Southeast Asia and India are the only two markets where both ICE and EV sales increased year over year. It’s worth watching to see how long it takes for their triple-digit EV growth rates to reverse sales trends for ICE cars.

2. EVs as a share of autos lag solar, wind, hydro and nuclear in the power sector, but they will catch up
Thanks to decades of deployment of hydropower, nuclear power and renewables like wind and solar, a significant share of global power generation is now zero-emissions. Last year, more than 40% of global electricity was zero-carbon. Passenger vehicles? Not so much. Last year, EVs made up only 1.7% of passenger vehicle kilometers driven.

That’s a sign that EVs have a lot of catching up to do. But EVs can catch up with a following wind, so to speak. The power sector is continuing to decarbonize and by 2050, it will be more than 80% zero-carbon. EVs will account for an increasing percentage of global driving while their energy input becomes cleaner every year.

By mid-century, these two trend lines will have nearly converged. More than three-quarters of all driving in 2050 will be in EVs, and the power that tops them up will be more than four-fifths zero-emission.

3. Long range is not where you might expect it
A half-decade ago, there were only nine electric vehicle options available globally with at least 400 kilometers (249 miles) of range. Last year there were more than 200. The number of long-range EV trims (pre-packaged sets of features for a particular car model) has risen in every market, but one market dominates: China, which had only six long-range EV trims in 2018 and now has 141.

North America, which had eight long-range trims in 2018, has 56 today; Europe, which started with the same number that China did, has 61.

These long-range EVs price at a premium. BMW and Mercedes-Benz’s battery electric vehicles in Europe and the US cost 30% more than their ICE counterparts. BNEF’s advanced transport team expects automakers to roll out a number of lower-range, and lower-priced, EVs in the future as their electric sales commitments become more pressing.

3. Long range is not where you might expect it
A half-decade ago, there were only nine electric vehicle options available globally with at least 400 kilometers (249 miles) of range. Last year there were more than 200. The number of long-range EV trims (pre-packaged sets of features for a particular car model) has risen in every market, but one market dominates: China, which had only six long-range EV trims in 2018 and now has 141.

North America, which had eight long-range trims in 2018, has 56 today; Europe, which started with the same number that China did, has 61.

These long-range EVs price at a premium. BMW and Mercedes-Benz’s battery electric vehicles in Europe and the US cost 30% more than their ICE counterparts. BNEF’s advanced transport team expects automakers to roll out a number of lower-range, and lower-priced, EVs in the future as their electric sales commitments become more pressing.

4. Fuel cells, small and regional
Fuel cell electric vehicles powered by hydrogen have been on the market for years. They are also a stubbornly small market, with fewer than 16,000 sold worldwide in 2022. Not only that, but this small market is intensely regional. Korea accounted for two-thirds of last year’s passenger fuel cell market, followed by the US with 18%.

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Mahindra & Mahindra on Thursday said it has entered the dual-fuel segment in the small commercial vehicle space with the launch of Supro CNG Duo priced at Rs 6.32 lakh (ex-showroom Delhi). The model can run on both CNG and petrol.

It comes with a payload capacity of 750 kg and a range of 325 km with a CNG tank capacity of 75 litres. It also comes with a five-litre petrol tank to take care of range anxiety issues.

In an interaction with PTI, Mahindra & Mahindra VP and National Sales Head Baneswar Banerjee said the product would cater to various segments including market load operators with fixed routes.

With the range of over 325 km, the vehicle can also be used for intercity travel as well, he said.

“From the demand side, the CNG segment has grown four times in four years. That clearly establishes the need for CNG and if we look at its contribution in the less than 2 tonne category, the CNG sales now account for around 5,000 units from a total of 16,000 units per month,” Banerjee stated.

The company is confident of corning a sizable market share in the segment with Supro CNG Duo, he added.

The company is rolling out the model from its Chakan plant in Maharashtra .

Commenting on the launch, M&M President – Automotive Division Veejay Nakra said the Supro CNG Duo marks the company’s entry into the dual-fuel segment, in order to offer remarkably low operating costs to its owners and operators.

“It is engineered to deliver on the tough demands of the logistics, supply chains and e-commerce companies, while offering a vastly superior value proposition to customers,” he added.

The Supro CNG Duo comes with a 20.01 kW (27BHP) BS6 RDE compliant engine, providing 60 Nm torque and best-in-class mileage of 23.35 km/kg, the company said.

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MUMBAI: Urban cooperative banks (UCB) are getting more regulatory relaxations. The Reserve Bank of India (RBI) has extended the deadline for meeting their priority sector lending ( PSL ) norms.

Moreover, those who have already met the targets would be suitably rewarded. They will also be allowed to resolve stressed assets the same as commercial banks are allowed.

“With a view to ease the implementation challenges faced by the UCBs, it has been decided to extend the phase-in time for achievement of the targets by two years, i.e. upto March 31, 2026” Governor Shaktikanta Das said in his monetary policy statement on Thursday. “Further, suitable incentives shall be provided to UCBs that have met the prescribed targets as on March 31, 2023”.

The PSL targets for UCBs were revised in 2020 amidst the backdrop of failure of a large UCB- Punjab and Maharahtra Co-operative Bank, RBI increased their PSL targets from 40% in March 2020 to 75% by March 2024 to improve the granularity of their loan book.

In order to ensure a non-disruptive transition, a glide path was provided till March 31, 2024 to achieve the revised targets. Detailed circular on the matter will be issued separately, Das said.

“ The proposal to allow more time to meet the targets shall reduce their PSL purchases and support their profitability in the interim” said Karthik Srinivasan, senior vice president, group head – financial sector ratings, at ratings firm Icra Ltd .

Besides the relaxations on PSL targets, UCBS will also be able to do technical write-offs and execute compromise settlements with defaulting borrowers.

The banking regulator has decided to widen the scope of the framework for resolution of stressed assets, under which all the regulated entities including cooperative banks would be able to execute “compromise settlements and technical write-offs” to resolve non-performing assets.

This resolution option was available only for dud assets of commercial banks and select non-bank finance companies. It is now being extended to UCBs as well, Das said. Guidelines for same will be issued soon.

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