DDA Housing Scheme of 2008 and DDA Flats Scheme Results

DDA has announced to distribute flats on the basis of housing scheme 2008 in these areas of Delhi - Rohini, Vasant Kunj, Dwarka, Paschim Vihar and Pitam Pura Pitampura, Dwarka, Motia Khan, Paschim Vihar, Dilshad Garden, Vasant Kunj, Narela, Shalimar Bagh, Jhilmil, East of Loni Road, Nand Nagari, Peeragarhi, Sarai Khalil, Rohini, Lok Nayak Puram, Bindapur and Zafrabad.

According to the DDA housing scheme of 2008 about 5020 flats will be distributed in above mentioned areas. All the applications are for 2 or 3 bedrooms flats in various apartments. With the DDA flats scheme registration fee was of Rs. 1.5 Lakhs and about 12.64 lakh application forms were sold and downloaded but finally submitted form were 5.12 lakh finally in different banks which was announced by authorized by the DDA. I think it is the business plans like other investors of real estates.

The flats rates will be Rs 7.95 lakh to Rs 11.90 lakh. According to the DDA official announcement the rate was about 40% less from market. Axis bank, ICICI, HDFC, IDBI, SBI, Central Bank of India, and Union Bank of India were the official announced bank to submit the form of DDA housing scheme of 2008 flats.

It was the lottery for DDA flats scheme in India basically in Delhi. DDA is the official authority for Delhi Development. Who don't get lucky in the lottery of DDA housing scheme 2008 will be gait back their registration money by January, 2009. Who have applied from banks will get their money back with the deduction of 5000.

You can now imagine the housing system in Delhi or all over metropolitan of India with the December, 2008 results of DDA flats scheme. People are much agree to spend their money upto 11.90 lakh rather than 25-30 lakh flats in Delhi. This is the results of hot property in not only in Delhi but also in India.

It is the mortgage scheme of people life not DDA flats scheme. DDA was created in 1957 to promote and secure the development of Delhi under the provision of Delhi Development Act.

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The booms and the turns taking place in the real estate sector in India

The booms and the turns taking place in the real estate sector in India are an aftermath of the things which have taken place all over the world with their effects being financial in nature.


The situation was never so grim before in the world, as it has in the recent past. Many changes and mistakes were made by most of the prominent decision makers all over the world. The economic stalwarts were forced to rethink their processes due to being faced with a situation, which led to financial turmoil. USA, being the source of all this trouble and one of its major victims, is one of the major examples. The worst hit sector there was the real estate sector and the jitters were felt in many countries with a prosperous future with India being one of them.


However, the reader of this article should not be discouraged about the present situation, which has begun to show signs of being on the track of improvement. The changes which have taken place, clearly show this event taking place. The result is the improvement in most of the prevalent sectors bringing in cash to the Indian economy. The real estate sector is one of them, having seen many changes taking place due to variety of steps being taken by the Indian government.


The major entity which perhaps deserves all the credit is the Reserve Bank of India. The steps that have been taken by RBI have led to the Indian real estate sector regaining its composure amidst all this trouble. Some of the steps have been the reduction in the repo rate and a decrease being made in the CRR of Cash Reserve Ratio.


The repo rate is the rate at which banks borrow extra funds from RBI and the Cash Reserve Ratio is the total amount of money that banks have to deposit with the Reserve Bank of India. Therefore the reduction of the interest rate at which banks borrows money from RBI is quite beneficial for them.


The benefits show themselves in the real estate sector with housing loans now being more affordable. This is due to the reason of the interest rate being reduced. This is the rate at which home loans are given by banks. Since they have to pay a lower repo rate, they can afford to give housing loans at decreased interest rates.


Other factors which have taken place have also led to the overall improvement of the Indian economy. The fact cannot be ignored that India too was one of the victims of this financial mass disturbance. However, the financial system being used in India is quite a durable one and is less prone to the effects. Therefore, the recovery time for this economy has been quite short when compared to all the other economies of the world.


Housing loans are, therefore, once again useful resources which can be used for acquiring a house. The apprehension that was present in the minds of the Indian citizens has now started to disappear. One can see this in the rising number of applications being made for taking housing loans.


The overall real estate sector has improved quite magnificently. Most of its facets have started to revel in their once frequent and habitual perfection of performance. The dent has been a hard one, but the work that has been done in order to repair this dent is quite appreciable. The Indian real estate warhorse is once again on its path to glory.

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Real Cause of Financial Problem

I am talking here global financial problem not only Indian financial problem. We know the financial problem of 1929 when the world was in defecate and company were closed tremendously. The financial problem brought 2nd world war also along with to solve financial problem.

At 1st we have to discuss about what is the financial problem. In my point of view it is actually market crisis and products selling problem in the market. Financial problem in its real meaning is not only sensex down it is consumer problem also.

Due to market problem all the things price goes down. But now, we can see there are no any products which prices are down. In the special context of India, market is very slow. The money value is much down in the context of Dollor.

In spite of the products prices are going high. Then we have to think what is the real problem now in the market.

I think the history will clear its scenario. All the things are not clear which is real that profit of company going higher and higher but all the companies announcing that they are in market problem.

What will happen if the market goes down like this?

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Economy in Crisis and RBI

Not only Indian Economy but also in all over world's economy is in crisis. People don't know real problem of economic problems that is why they are talking about population, money and other things but no one talking about capitalist systems who created the problem.

In all over world economic crisis main reason is products consumers are not in market and the product which has been produced are in crisis. It is the main reason. But people think that money is not there in economic crisis.

Recently, RBI has cut its repo rates about (repo) by 100 basis points. It was the decision after the crisis of banks. But now banks crisis is OK but economic crisis is not OK. Lets see what happened after RBI repo rate.

In a statement P. Chidambaram, Finance Minister said, “...RBI has decided to reduce the repo rate under the liquidity adjustment facility by 100 basis points to 8 per cent with immediate effect....” But how effective it is, now undecided.

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Economic Crisis and Rivals are in Debate

Not only America but also all the world are in economic crisis. You can see all the data which shows the unemployment and further will rise unemployment. These data are the indication of economic crisis of the world. In spite of job, there are crisis in all the sector which create unemployment.

What is the reality of world economic no one knows because big gigantic banks are announcing to their bankruptcy. Recently, ICICI share is unexpected down. No friends, it is the crisis of capitalist systems economy.

Among these crisis two rivals in the US election are in debate of economic crisis. About the crisis news.bbc.co.uk writes,

“...Meanwhile, the two rivals have disagreed on delaying a TV debate over the economic turmoil.

Mr McCain said he was suspending his campaign to return to Washington to help agree a deal, saying he feared the rescue package would not pass "as it currently stands".

He also called for his first presidential debate with Mr Obama on Friday to be suspended - something Mr Obama did not support.

Americans needed to "hear from the person who in approximately 40 days will be responsible for dealing with this mess", Mr Obama told journalists.

Mr McCain stressed his desire to help Congress agree a viable deal in a speech on Thursday to the Clinton Global Initiative, a conference headed by former President Bill Clinton, a Democrat.

Mr McCain insisted on clear oversight of any plan, and said no Wall Street executives should profit from the injection of public cash.

But he made no mention of Friday's planned presidential debate, instead praising Mr Obama's decision to join him in Washington to broker a deal...”

I don't think all the crisis debate will only for the election not to solve the crisis of economy. It is not only in the US but also the crisis is in the world.

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Global Crisis and US Finance Statement

About the global crisis there is much discussion and people are afraid about it. To escape the crisis there are some tips by Hindustan Times, “

Product Structures
When an economy adapts a market-led approach to financing assets, the assumption is that risks are priced, spliced, and distributed across several entities. Securitisation of home loans, the subsequent structures and swaps were based on this assumption. The crash in asset values across several balance sheets, when housing prices fell steeply, tests this assumption. Several of our local financial institutions have not even begun to experiment with new product structures. A better understanding of risk will emerge from this crisis and more choices about how we could deal with risks in product structures.

Bail Outs
Proponents of capitalism swear by creative destruction. The cyclical corrections in markets are seen as the much-needed purging of excesses. The events in the US show that the choice between allowing failure as a natural consequence and bailing out a failing entity, is not a simple one to make. The modified capitalism of bail-out based on judgment is something that appeals to our psyche, but is currently applied selectively (Would the bail-out have been the same, if UTI were in the private sector, for example?). Our handling of IFCI illustrates our muddled thinking. Rather than fantasise a world without crisis, we need ability and willingness for swift action.

OTC Vs Exchange-traded
The large leveraged positions in derivatives, which lost value rapidly and triggered losses for several players, is at the centre of the current meltdown. But much of the risk came from the structure and not the product itself. The credit default swaps were not exchange-traded products, but over-the-counter (OTC). This meant that the counter-party risks were high; there was no margining based on open positions; and valuation and liquidity were questionable. India’s exchange-traded currency contract is a great first step. Introducing exchange-traded products in the interest rate and credit markets is the next crucial step for us.

Mark-to Market
The drop in value of assets in the balance sheets of investment banks, banks, investors and others, has led to the plea that ‘marking-to-market’ might not be the correct thing to do. Several are asking for assets to be shown at costs, and for a write-off of the value, after manifestation of risk, through accounting entries in the income statement. This thinking assumes that a risk, unless accounted for, does not exist. We in India subscribe to this view, allowing banks to value assets depending on how they are classified, and keeping most institutional portfolios (like provident funds) at cost. We need alignment with global standards that will emerge.

Regulation
Every crisis creates spill-over of risks from one segment to another. The defaults of global investment banks have spread into money markets. The takeover and conversion of investment banks by commercial banks, creates dual regulation by the Fed and the SEC. Back in India, we have regulators for each type of institution, with limited understanding of the commonalities in functions they perform and the markets they operate in. We need unification of regulation, as has been recommended for a very long time in financial sector reforms.

Size
We may be fooled into thinking that only large-sized entities can extend themselves. The financial sector in India is badly compartmentalised. Several companies clamour to create new banks; many small banks hope to be taken over at good value; some thousands NBFCs operate with limited supervision; existing banks are constrained from expansion; and we are loathe to allow foreign banks in. The growth of multiple small entities, working in the credit markets in their own ways, creates risks and regulatory challenges, about which we may not even know. We need to implement reforms that enable larger institutions, that are easier to supervise. Regulatory and policy resistance to such change, remains a puzzle.

Leverage
Leverage is seen as the villain of the piece. As asset sizes shrink, spreads increase and lenders shy away, the credit markets in the US will shrink. This may lead US into a recession, as much of their growth is credit-driven. Without the advantages of leverage, it is not possible to expand in size, but this lesson may be lost on several regimes like India, which traditionally discourage borrowing. In an economy that needs capital to grow to its potential, we need more long term borrowing options. If we picked up only the disadvantages of leverage, and shrunk back, we might scuttle growth

Currency
Several economies including India, have built up large reserves as a defence mechanism. They also practice various forms of currency management. They will be impacted by the global recession and dollar depreciation.

The current crisis will have its impact on the currency markets. Last time around, we were able to claim ‘insulation’ due to lack of currency convertibility. Given the size of our resources, and the depreciation of our currency, we may need to act. Our stance on global capital flows, capital controls and currency will need review.

The lessons from this crisis will flow in over the time it takes to spill over, initiate another round of regulatory reforms, and create global realignment of macro-strategies. It is up to us to use the opportunity to implement long overdue reform of our systems, structures and institutions.”

Along with about the US finance what the magazine says read from here,

"The amount of innovation taking place, the amount of investment is actually greater today than ever," Gates said.

"Because you not only have more American companies with more scientists and engineers and innovators, but now you have ... people from all over, including lots of people in India and China, now contributing to new drug design, new software design, new energy generation design."

It was the word of Bill Gates about the US finance.

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Indian Inflation and Retailers

Indian Inflation is up to 12.14 per cent till September what will happen next it is undecided because there are still 4 months in this year. It is higher inflation rate in Indian economy. About it HT writes,

“Inflation for the week ended July 12 was revised up to 12.13 per cent from 11.89 per cent.

The annual inflation rate was 3.46 per cent during the corresponding week of the previous year.”

Along with this inflation retailers has some new mantra or tips to sell their products. With the HT in other news you can read also it,

“Driving more consumption in each store and bringing up innovative, profitable formats are the two priorities for Indian retailers today,” said Ireena Vittal, partner, McKinsey & Company.”

It means I have already wrote about industrial growth of India. And now here after all the inflation we are seeing growth in retails market. Then question is why inflation is growing and money where is going?

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Industrial Growth in July

The last July was for Indian industrial growth. It was up to 7.1% however it is lower than last year because in the last year it was about 8.3%. The growth is a breath for Indian government because inflation was tension for the government.

About its growth Hindustan Times writes, “While the manufacturing, which contributes about 80 per cent to IIP, grew by 7.5 per cent in July, compared with 8.8 per cent a year ago, electricity generation was up by 4.5 per cent, against 7.5 per cent.” Hindustan Times is an online and off line daily news paper. Further it writes, “As such, industrial growth turned out to be 5.7 per cent in the first four months of this fiscal, against 9.7 per cent a year ago.”

This analysis can be accurate but what is the cause of industrial growth however inflation was high for the Indian state. It is recent update for last July. In my analysis it is the cause of Bihar flood and nothing else.

Before it there was no scene to invest and growth. All the economy was in inflation and Sensex was down. There was no need of production but now its need has developed because Bihar flood has destroy about 5 lack people home and economy.

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Car Market

In the car market all the big companies are ready to launch their brand after TATA's Nano. Economy is slowdown and car market is also bearish but all the company creating market for car, why? I don't think the economy will cover its inflations after a year but what about car industries.

TATA, Hayndai, Bajaj, Honda, or BMW now all are targeting for Indian market to invest. They are thinking India is in growing market and here small car has more demand but they don't think that after inflations and economical problem what customer are thinking.

I think all the market are in slow down along with car market. A news announced that rather than new car used car on more sell. “In this fiscal so far, we have sold almost 44,000 used cars at a growth of 31 per cent,” said Ravi Bhatia who is the General Manager of Maruti Suzuki India Ltd.

According to review about 78% people are using 1st time buying car while 1.15% is increasement in the used car and expecting it will be about 2.6% by the 2010.

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What is statement regarding the inflation

In the business market and in economy both have inflation. Money inflation of India is in highest position. Government has not idea what have to do because they can’t do anything if they have.

I have already mentioned about government policy and its step to stop the inflation all is useless. Governments don’t want to cut capitalist profit because the government is for capitalists.

Now, to increase six pay scale of government employee it thinks that all the inflation will be solve. They don’t think how many people is government employee. Even they don’t think that how much they have given their incremental.

If government doesn’t stop capitalist profit they can’t stop inflation. In spite of it will be temporary solutions.

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Investment of Tatas

Tata is one of the biggest firms of India. We know, it has Steel manufacturing and other plants in North India. Before some days there was news that Tata will not hike steel prices or you can say that was for all manufacturers that they will not increase steel prices now.

But that was not profit or lost story because I have already mentioned in my previous post that all the company and manufacturers are getting more revenue however Indian economy is in inflation. In spite of this is another matter I am not talking on that and not also about market. I am talking about now Tatas investment.

In recent news Tatas is going to invest about $2 billion in telecom Industry. It is good or bad I don’t know because already in telecom industry there are many big brothers who are taking over each other like – Vodafone, Virgin, Bharti etc.

About the news HT writes, “Tata Teleservices plans to invest $2 billion in rolling out GSM-based mobile phone services and expand its current network of CDMA phone services — a move that would give consumers more options and could help bring phone rates further down.”

I think it is not the 1st investment for Tatas. The company is famous for SEZ also. On the SEZ matter in Bengal there was a great struggle against Tata. Now, it has decided to invest their money in telecom industry.

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Dollar is rising

In the business and market we can't remain without talking about dollar. There is always demand of dollar because all the market of world has been captured by dollor. Some months before Indian rupees were going to strong but soon and dollor was down in India. That time dollor was about 38 rupees of $1. Now it is increased and it is about 42.38 rupees of $1.

Now, in the competition of Euro dollor is also going to rising. Some months before Euro was going to stronger. But now the dollor is back. About it HT writes, “The dollar rose to a one-month high against the euro as the pace of job erosion in the US slowed while a decline in German retail sales indicated economic weakness is spreading to other developed countries.” further it writes, “The dollar appreciated 1 per cent this week to $1.5564 per euro, from $1.5709 on July 25. It touched $1.5515, the strongest since July 24. The dollar dropped 0.1 per cent to 107.71 yen, from 107.84. Japan's currency gained 1 per cent to 167.55 per euro, for the biggest weekly gain since early May. It touched 166.99 on Friday, the highest level since July 17.”

It is clear about dollor now that it is rising. On the other hand Pound is going to weaker. Pound is fell upto $1.9727. Its all showing the market expand of dollor, nothing else.

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Why Inflations Pressure is continue?

Today's news shows Indian inflations is continue. It is now on 11.89%. It has broken all the previous records and all the consumer product is going to dearer. About it Hindustan Times writes, “Inflation is hovering around a 13-year high of 11.89 per cent for the week ended July 12. RBI said that pressures from international food and energy prices have amplified inflationary expectations in India.” It is not only in India but also it is in all over world.

On the one hand inflations is growing and consumer goods are going to be dearer. On the other hand P. Chidambaram has no idea to control this inflations. He is saying to pay all the bills to decrease inflations rate.

An Another story is going with it. All the companies are getting their net profit in this quarter about more than 50% average. What is the cause that consumer goods are going to be dearer, inflations is going higher day by day and on the other hand companies getting profit always. What is the cause behind this?

In this quarter Tata Steel has get about upto 21% net profit, Hidustan Media is on 10% and GAIL is on 31% of rise. What is the cause of its?

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Story of Share Market

When we talk about market or business we can not escape with Share Market. We know, nowadays share market is the process of money and same for being a poor man. The market is much flexible. However, people wants to invest their money in share market. They think it is the fast way to grow money and became a rich person.

So, in Indian context there are a story of Share Market. We know, the year of 2007 was boom for Indian share market. It was just double in its growth. It was broke its record of about 20 years. And in some months it grew as a tremendous and exiting progress.

I am talking about that share market growth which was on boom on 2007. Indian business man was crazy and investment in share was like blowing wind. This is the time when rupees gain and dolor loose. In this respect Indian outsourcing companies was down and employer of that company were fired.

Now, the situations again is same. Now, the share market gain is down and dolor going up. I time was the growing of dolor when Iraq war was in process and America dominance was on Oil of Iraq. Rupees up cause was Indian growing economy by the expert of share markets. But I think it was not real. The real cause was loans. Loans was provided by the bank that is why the market liquidated and growth of share market gone in boom.

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Business Reviews Introductions

Every day you can notice about market and business. Business is in our life to growth of our life. If we want to grow very fast, should be business and market knowledge to invest somewhere and to earn from somewhere. Business news on blogs or magazine today's common because everyone want an update news or reviews about business.

That is why I have created this blog to share business news, reviews, updates, share market, market analysis all the aspect I will cover by this blog. In day to day life we commonly talk about business and business news but we are not much able to understand that.

There is need to understand about investing, earning, and share market.

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