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Wednesday, March 20, 2013

Homeowners to Own & Professionals to Manage

Mr. Satish Magar on Ownership & Management of Nanded City Pune:

Mr. Satish Magar, Developer of Magarpatta City & Nanded City Pune
Mr. Satish Magar, Developer of Magarpatta City & Nanded City Pune

"Special Township is not a private kingdom of a builder. Special Township means the decentralization of urban infrastructure. Government of Maharashtra itself has given permission to a private builder to develop this infrastructure for the growing urban middle class population. Besides developing - managing this infrastructure is the responsibility of a private developer. As a developer of Nanded City Pune, my job is to mange this infrastructure more efficiently and more democratically". Mr. Satish Magar said.

After the recent 97th amendment to the Constitution of India, formation of a Co-operative Society has become a fundamental right of any Indian citizen. It means that no builder can refuse or avoid to form a co-operative housing society.

As it is, generally, good builders in Pune form a co-operative housing society, do the conveyance and get out of that project. Are the developers of special townships - Nanded City Pune, Blue Ridge, Life Republic - going to do the same? I was curious to know.

As usual, the flat agreements of these special townships have given all decision making powers - about formation of co-operative society and conveyance of ownership rights - to the developers. Now, nearly after a year, though the developers of Nanded City Pune & Blue Ridge Hinjewadi have given possession of a few thousand / hundred flats, they haven't taken a decision or any action. So, there is a confusion. Are these unit holders - 'property owners' or tenants of builder?

Besides the status of a unit holder - I was also curious about the future of these townships. So, I requested Mr. Satish Magar to share his plans about management of Nanded City Pune (www.nandedcitypune.com).

Infrastructure Management:

First, Mr. Satish Magar told me the difference between a general housing project and the special township -

When a housing project is in a municipal corporation limit, infrastructure services are owned and supplied by the local government - PMC / PCMC. So, the responsibility of a co-operative society of a housing project in municipal limits is limited - the houses, buildings, open spaces & their plot of land.

Whereas, a special township is not a housing project. A special township is an infrastructure project. The ownership & responsibility is not only limited to houses. You also own infrastructural services. You own water, power, safety - security, fire fighting, drainage - waste management systems and other essential & basic civic services like medical, education, shopping.

"So, as a developer of Nanded City Pune, my job is to see that this infrastructure is managed more efficiently and more democratically," said Mr. Satish Magar.

Infrastructure Management System:

We all know Mr. Satish Magar for 'Farmers Direct Investment - FDI'. A revolutionary concept developed by Mr. Satish Magar. Because of Mr. Satish Magar, instead of selling their land to the builders, the farmers themselves became developers & builders and Magarpatta City was born. Which became a pattern of urban development - on which Government of Maharashtra formulated 'Special Township Act'. Now, Mr. Satish Magar was telling me his ideas about the management of his special township Nanded City Pune.

"To manage infrastructure spread over 700 acre - you need a system. Proven infrastructure management system. Which I am developing and fine-tuning for the last 10 years at Magarpatta City. The same infrastructure management system will manage Nanded City Pune," pointing at his laptop Mr. Satish Magar said.

Some 2,000 people work in different divisions which look after property management, safety - security, water, power, waste management services of Magarpatta City. In 'real time' the status of these services are available to Mr. Satish Magar.

At a frequent intervals," Mr. Satish Magar said, "the meetings are held - basically to reevaluate policies, otherwise, the system runs on it's own! This infrastructure management system is my creation & asset - which will be implemented at Nanded City Pune"

Nanded City Pune will have proven infrastructure management system - plus lot more systems will be automated. For example, paid water and power meters will help Nanded City Pune to mange water & power supply more efficiently. The management will have actual data of consumption and requirement of water & power.

"To manage these infrastructure services - you need professionals. Which we are training in house - at Magarpatta. Who will manage the infrastructure of Nanded City Pune," Mr. Satish Magar said.

Infrastructure Management Company:

"Professional management performs well in the corporate culture. So, I am going to form a company to look after the management of infrastructure of Nanded City Pune!," said Mr. Satish Magar.

"Company Raj!," words came out my mouth.

"Yes! To manage infrastructure of this size - you need impersonal - professional corporate management. Which will assure that the township will run well for the next 100 years. Even if Satish Magar is not there. My job is to establish an efficient management system which will offer good quality of life not only to the present residents but also to their next generations," said Mr. Satish Magar.

"Management is fine - but what about the ownership of township? This is not an animal farm!," I said.

"Of course, the residents will own this company! The professional management will be answerable to the owners - the residents of Nanded City Pune. It will be governed as per company law. Each unit holder - flat owner - will get one share in this company. This is the best way to manage infrastructure of this size democratically and efficiently," said Mr. Satish Magar.

"You also need funds to manage the infrastructure of this size. What will be source of funds? Only one time maintenance given by the property buyers?," I asked.

"No. One time maintenance is not enough. I call it cross subsidy - besides one time maintenance - the company will get revenue from commercial lease rentals. As I do at Magarpatta," said Mr. Satish Magar.

"You mean to say that like Magarpatta - the company will be the owner of residential as well as commercial part of the township?," I asked.

"You can't divide a special township into two pieces - commercial & residential. It's one - integrated - infrastructure project. So, this company will develop it's own streams of revenue. Developing streams - sources - of revenue is very essential for the survival - sustainability - of the township. Because supplying water, power and other essential services can't be your source of income. If you sell these services at profit - homeowners can't afford to live in your township. So - 'Revenue Generation Engine' is essential to run this train," said Mr. Satish Magar.

"I know a couple of trains - but I don't know anything about their 'revenue generation engine' or about their 'engine driver'! Some times, I fear what will happen if any train is derailed?," I said.

"Don't worry. Every builder who ventures into this kind of development must have some business model which will help the township to sustain and prosper. If any township fails - don't worry - state government will take over the management of this infrastructure - because special township is just 'decentralization' of urban infrastructure - it's not a private kingdom!," said Mr. Satish Magar.

What say you?
Do you know anything about ownership, management and sustainability of your special township - Blue Ridge - Life Republic - KUL Ecoloch - KUL Nation - Xrbia?
Please, share your information in the comments.

View Amanora, Nanded City Pune, Blue Ridge & Life Republic, integrated townships near Pune Municipal Corporation (PMC) & Pimpri Chinchwad Municipal Corporation (PCMC) in a larger map

Related Stories:

1) Owner or Tenant?

2) Forming Co Operative society now fundamental right With status of local self Government, under ambit of RTI act

3) Sir, Mein chota sa, pyara sa, nanha sa, baccha hoon!

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  1. nice one.just ask mr magar what he is planning about CAR PARKING for those owners who had no parking for sale available.township act says every flat owner should get PARKING for free.what to do.....

    1. Agree with Prashant. If Mr Satish Magar has done so much planning they how he can forget about basic things like PArking. What people will do if they were not given parking.

  2. Nanded City is one of the popular residential developments in Sinhagad Road, neighborhood of Pune. It is among the ongoing projects of Magarpatta City. It has lavish yet thoughtfully designed 9 Blocks and 1000 residences.

    I enjoy your site theme....Pancheel Villas

  3. SOngbird Project are charging 4 rs/sq.ft of total salable area as an monthly maintenance.
    i.e min 4000 to 5000 Rs per month from owner of 2 BHK.

    So, be it any township source of income for Professional Maintenance will be taken from owner of flat.

  4. When i heard about the Nanded City i was willing to visit that place and one day i went there and i was surprised to see their plan for the future , and it realy very good project and if the people are planning to invest money in property ,you can think about the project for one time and its not risky, you can involve your money there its safe.

    Find Property

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