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Corporates make a beeline for satellite towns 

Vandana Ramnani  
New Delhi, May 15: Once called dormitory towns, the sprawling suburbs of Noida, Gurgaon, Faridabad and Bhiwadi are today the epicentre of the country's economic modernisation with many an MNC swarming to lap the profusion of opportunities and space they offer.

So infectious has been their influence that today many a corporate well entrenched in Lutyen's Delhi has planned, or is planning to shift to the generous expanse of space and high tech facilities they offer. "Each suburb offers a plan of better life both by default and design, the National Capital Region (NCR) is emerging as the dream city of India providing corporates with world class commercial towers and employees with a home," says Confederation of Indian Industry (CII), Delhi sub-region deputy director, Gaurav Bhatia.

Exodus of corporates to these towns is also due to the cost of setting up and running office or workshop and better housing. "These towns offer large continuous area, planned services, sound infrastructure, info-tech, state of the art facilities and most important cheaper rentals," says Adity Wadhera of Ansal Properties and Industries.

"The reason why we are shifting to Gurgaon's Global Business Park is because it offers an infrastructure fit for a corporate office, good quality construction, more space at affordable prices," says Arun Sehgal, regional human resource director, Gillette India Ltd.

These suburbs offer a clean environment, new roads and bridges and good aesthetics, says Wadhera, noting with Delhi today reaching a saturation point there was bound to be an outburst towards these self contained townships.

A thrust in Non-Resident Indian (NRI) investment in real estate also gave a boost to such commercial ventures, he notes. The present trend is a manifestation of the prevailing market conditions and today the thrust or demand is on commercial property on the outskirts of Delhi.

"The demand is linked to the requirements of today's institutions, the price, the facilities a commercial complex can offer," says Wadhera.

However, what is viable today may not have been feasible 15 years ago. The trend of corporates setting up their offices started with Maruti and Tata Consultancy Services taking over large spaces in Udyog Vihar and other places developed by construction houses.

Also, the Supreme Court directive ordering relocation of industrial houses offered no choice to manufacturers than move out, says Vinayak Chatterjee, Chairman, Feedback Ventures, real estate consultancy firm.

Also, state governments have been wooing construction houses to set up commercial centres, which have led to a spurt in business offices moving to these suburbs.

"The fact is that this exodus has a multiplier effect on the economy of the state, it results in a growth in the local economy, development of shops, hotels and increased revenue from taxation besides more employment opportunities," says Bhatia.

Moreover, these sprawling suburbs use their proximity to Delhi to market themselves very well, he adds. Also, the license fees, development costs, submission fees all add to the exchequer.

States are always interested in development of infrastructure and what better way than to woo corporates and hit two birds with the same stone, says Wadhera.

It is important to note that the shift is dependent on the nature and type of the corporate, says Dr Vinod Tiwari, Director National Institute of Urban Affairs, pointing out that a Chandni Chowk trader whose dependence on the city is more than an IT company would think twice before moving out.

Interestingly, the shift of corporate houses to these suburbs has also led to a parallel development of residential zones, with many employees shifting to enjoy the sheer quality of the so far unspoilt suburbs.

In fact, the trend has given rise to what is popularly known as industrial housing catering especially to the needs of the employees.

"Many corporates buy several units of apartments for their employees, " says Om Gupta, managing director, Ashiana Construction and Housing engaged in developing the township of Bhiwadi.

In many cases corporates also provide soft loans to employees to purchase these houses, says Wadhera, pointing out that a corporate seldom buys large units as it is not a productive asset and blocks crucial funds. But are such townships catering to the varied needs of the corporates good for Delhi? They surely help in reducing congestion in the city and cost of infrastructure that would have gone in sustaining the burgeoning population, says Tiwari.

An ideal township would be one which is built at a distance of 30 to 40 km from Delhi, and that building one just across the border, would in fact, amount to extending the city. Also, a township as far as possible should be self-sufficient in terms of services, employment and optimum land use such that movement of people is reduced.

So the next time your office plans to pack its bags, don't panic as its only moving to the neighbourhood quieter and cleaner.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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