E-ways to allow Delhi to breathe easy
Fast-tracking the KMP and KGP projects will ease Delhi’s traffic problems and boost budget housing in Sonipat LENGTH 136 km 135 km 70 km COST 4,115 crore 7,558 crore 2,129 crore THE KMP BOTTLENECKS
Some i mportant environment concer ns will be addressed through three projects worth ₹ 13,802 crore launched in Sonipat this week. In what can perhaps provide a major relief to the National Green Tribunal, Prime Minister Narendra Modi gave the green signal to the construction of the 341-km KundliManesar-Palwal expressway, the eastern peripheral, the KundliGhaziabad-Palwal expressway and the 12-laning of the NH1, the lifeline of north India. To curb pollution in the national Capital, the green tribunal had recently directed all commercial vehicles entering Delhi to pay environmental compensation charge in addition to the toll tax. It has ordered that the compensation would be payable at the rates of ₹ 700 for two-axle vehicles, ₹ 1,000 for three-axle and ₹ 500 for four-axle and above. Nearly 66,000 heavy commercial vehicles enter Delhi daily.
Once the 271-km ring around NCR ( that includes the western peripheral and the eastern peripheral expressways) are ready, these vehicles would start using the high-speed link to transport goods and not enter the Capital at all, reducing pollution and decongesting the National Capital Territory of Delhi.
Currently, at least two lakh trucks bound for Manesar warehousing facilities pass through the Capital, taking the NH8 before reaching their destination. Similarly, trucks transporting goods from Mumbai and Gujarat ports and even from south of India are forced to pass through Delhi before hitting the NH1 in Sonipat district. While the trucks bound for Manesar This project will now be 6 lane instead of 4 lane From Mukarba Chowk (Delhi) to Panipat hamper the smooth flow of traffic (mostly tourists and other travellers) to and from Jaipur, heavy vehicles from Gujarat, Mumbai and south India cause major traffic problems in the Capital. That is one of the reasons why the much-delayed KMP and KGP projects have been fast tracked to meet their respective timelines.
Besides reducing pollution levels, the expressways will also play an important role in accelerating economic activities, developing warehousing facilities and giving a boost to real estate development in the states they pass through.
According to Jasmine Singh, senior director – industrial and logistics, CBRE South Asia Pvt Ltd, the KMP will not only decongest NCR but also reduce pollution in Delhi. It will also lead to development of new logistics micro markets and relocation of the current assets, thereby easing the congestion on NH8.
Once completed, areas around the KMP interchanges will see development of large logistics parks as well as other commercial development because of availability of large tracts of land at reasonable value and faster access t o t he entire NCR market. Approximately 5 million sq ft of logistics assets are likely to be added in this corridor by 2020.
To cite an example, land along NH8 is currently available for ₹ 4 crore per acre and on NH1 at around ₹ 2.5 crore an acre. At the nodal points between KMP and KGP, large tracts of land can easily be bought for anything between ₹ 90 lakh and ₹ 1.25 crore, say experts.
These infrastructure projects have been pending for long but will now definitely get completed. The area will then develop quickly as a transportation, warehousing and an education hub. This will lead to job creation, especially in fields such as cold storage, specific warehousing opportunities etc. Chances of India’s entire e-commerce warehousing shifting to this belt, too, look bright now. All these opportunities will also make the area an affordable housing hub and not the investors’ destination it’s known as, says Pankaj Goel, CMD, Express Approval of the KundliGhaziabad-Palwal (KGP) Expressway and the green signal to resume construction on the much delayed 136km-long KundliManesar-Palwal (KMP) Expressway will accelerate the economic activities and provide tremendous opportunity for real estate development in Haryana, UP and Rajasthan
The original deadline for the KMP Expressway was July 2009 but the project was delayed due to litigation. The Manesar-Palwal section of the expressway is likely to be completed by January 2016 while the Kundli-Manesar section is likely to be completed by August 2018. M/s Essel Infraprojects Limited will now be constructing the Kundli-Manesar section
Builders Ltd. Big-ticket purchases in the range of ₹ 2,500 per sq ft can definitely be easily made in this region.
So, will the announcements by the PM have an immediate impact on realty prices? Not really, says Anckur Srivasttava of GenReal Advisers. A few years ago there was enthusiasm here because investors hoped that the KMP would be completed and logistics parks would come up alongside the expressway. It was expected that improvement in infrastructure would lead to improved real estate valuations. The subsequent delays have made investors cautious. Having said that, prices may start improving once there is actual work on the ground and timelines are met, he adds.
Timely completion of the KMP expressway is expected to accelerate economic growth and give a boost to the real estate market in Sonipat