Real Estate Regulation and Development Bill 2013: Positive Step says National Real Estate Developers' Council


The National Real Estate Developers' Council (NAREDCO) wants rules & regulations governing real estate industry to be rationalised. It said large portion of the inconsistencies emerge from archaic laws, guidelines that conflict with the development agenda of the economy, disparity in incentives given to larger projects as against the same given to smaller projects.



Also, the current FDI norms also make it difficult for smaller developers to access capital easily.

Navin Raheja, President, NAREDCO
Mr.Navin Raheja, President, NAREDCO said, "The Real Estate Regulation & Development BIll 2013 is a hugely positive step in this direction. But this can address the issues only in a limited way. The industry would be more than happy to coordinate with the government to iron out the inconsistencies prevalent in the system. While the industry welcomes the positive intent of the central government, we believe that the momentum gained should be utilised to iron out some of the issues. This will not only help to unlock projects worth over Rs.10,000 crore, but will also catalyse the economy with more vigour and vibrancy."


Sunil Mantri, Vice President,, NAREDCO
Mr. Sunil Mantri, Vice President,, NAREDCO said, '' Environment clearances take a long time. This escalates cost. The current regulations on foreign investment make it difficult for small developers / promoters to access low-cost capital. Now, the approvals of building plans by the planning authority or a municipal corporation result in abnormal delays. These are the issues that can be easily managed by a little more imaginative thinking by the government & policy makers. As a sector, the builders and developers/ promoters are accused of resorting to corrupt practices. As a sector, we believe that the germination of corruption occurs in prevalent systems and procedures"


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land Acquisition Bill : Anti-industry?



'Land price to go up many times, infra projects to be delayed, economy to be hit'

India Inc, already braving an uncertain economic environment & low investor confidence, gave a thumbs-down to the land acquisition Bill, cleared on recently. The second legislation in a row aimed at aam aadmi, after the food Bill on recently , prompted the corporate world to scream "anti-industry".

Firms were united in giving their verdict that the move was likely to push up land prices, thereby hitting industrial projects & the overall economy.

 Mr. S. Gopalakrishnan, President, Confederation of Indian Industry (CII) said,''The cost of land acquisition is likely to increase by three to three-and-a-half times, making industrial projects unviable & raising costs in the overall Indian economy. Industry has serious concerns on some of the provisions of the Land Acquisition Bill".

 Mr. Rahul Bajaj, Chairman, Bajaj Auto, argued that industry might look abroad for expansion now. "Hundreds of countries acquire land. But, these countries do not make it so difficult for industry to acquire land as this bill proposes to do. I fear industry may be forced to look abroad for expansion & diversification."


Mr. Rajeev Talwar, Group Executive Director, DLF Ltd said, ''The land acquisition getting difficult & time consuming, prices would shoot up. We have got huge land parcels already. But, if the new law makes land acquisition difficult &  time consuming, the value of land will go up and ultimately impact the prices"

''In the current form, it will delay the land acquisition process further. If land availability is in surplus, then one would make affordable projects but if its availability is curtailed, one would be forced to raise property prices." also said  Mr. Rajeev Talwar.

Mr. Issac George, Chief Financial Officer, GVK group said, ''The Project costs for firms would go up, and so would cost of houses for individuals. So, I have my reservations on whether it's pro-industry."

Despite the government thrust on infrastructure projects, even those would be adversely impacted, said company executives.

Mr. Rajgopal Nogja, group chief operating officer, HCC, said, ''The legislation would lead to further holding up of the infrastructure projects."

Several projects are already languishing due to the failure of authorities to acquire the necessary land for development. The linear and multiple process norms will make land acquisition difficult, Nogja said, adding companies might have to drop the idea of development in some cases.

Securing consent of 70% to 80% of landowners, a mandatory requirement in the Bill, might take three to five years, making land acquisition a herculean task, according to the HCC official.

Firms also indicated that the legislation would bring in a high risk of multiple litigations.

Mr. R K Arora, Chairman, Supertech said, ''Land acquisition process would be delayed further as consent of 70% to 80% owners would be required. t will impact the overall growth in all the sectors. Home prices would definitely increase."


It is better to give back farmers some portion of developed land than outright compensation, quipped Mr. Lalit Kumar Jain, President, Confederation of Real Estate Developers Association of India (CREDAI).
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Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012


Major Things You Must Know..


*  A Land Acquisition and Rehabilitation and Resettlement Authority to be established.

* The private entity seeking land must then get the consent of 80% of the affected families before it gets the government to acquire land for it

* The definition of affected family like labourers, tenants, sharecroppers and workers in the area for 3 years prior to acquisition. The compensation would be Rs. 5 lakh or  / a job, if available, to the affected family; subsistence allowance of Rs. 3,000 a month for per  year; miscellaneous allowances of up to Rs. 1.25 lakh for each family



The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012 –
 The Bill will replace the existing Land Acquisition Act, 1894.

 The first steps towards drafting a new Bill that includes relief and rehabilitation (R & R) began under the NDA government a decade earlier. The government fell after readying the R & R policy.

The first UPA government introduced 2 proposed laws in the Lok Sabha in 2007. But , these were redrafted after Mr. Jairam Ramesh took over as minister for rural development.

The present version — The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Bill, 2012 — underlines the government's stated focus on fair compensation rather than fast acquisition

When land can be acquired..

 For private projects, public-private partnerships (PPPs) and for government projects, provided it is for a public purpose

What is public purpose for land acquisition..


Strategic use by the armed forces, paramilitary, state police; for national security; for infrastructure projects, including activities listed under

the department of economic affairs (infrastructure section),
excluding private hospitals,
private education institutions & private hotels;
projects related to industrial corridors,
mining, national investment & manufacturing zone,
sports,
healthcare,
tourism & space programmes;
housing projects for income groups specified by government,
projects planned for development of village sites,
residential areas for lower income groups in urban areas;
projects involving agro-processing,
warehousing,
cold storage,
marketing infrastructure,
dairy, fisheries and meat processing cooperatives

Pre-condition for acquiring..

For a private entity or a PPP project, state has to conduct a social impact assessment (SIA) and an environmental impact assessment (EIA), to identify the families who would be affected if land was acquired.

The private entity seeking land must then get the consent of 80 % of the affected families before it gets the government to acquire land for it. In the case of PPPs, the entity has to secure consent of 705 of affected families.


The 3rd condition for getting possession of land acquired through state intervention is payment of compensation and fulfilling of R & R requirements

Compensation package..!

 Up to four times the market value in rural areas and twice the market value in urban areas; the Bill provides compensation to those dependent on the land for livelihood; where acquired land is sold to a third party for a higher price, 40% of the appreciated land value (or/  profit) will be shared with the original owners.

 This would be exempt from tax and stamp duty

R & R package..

The definition of affected family includes farm labourers, tenants, sharecroppers and workers in the area for three (3) years prior to acquisition. The compensation would be Rs. 5 lakh or  / a job, if available, to the affected family; subsistence allowance of Rs. 3,000 a month for per  year; miscellaneous allowances of up to Rs. 1.25 lakh for each family

Dispute authority..

 A Land Acquisition and Rehabilitation and Resettlement Authority to be established

Retrospective clause..

Applicable on cases where no land acquisition award made. In cases where land was acquired five years ago but no compensation has been paid or no possession happened, the acquisition process to start again

Lease option..

The Bill allows industry to take land on lease, instead of buying. But, the decision rests with the state rather than the landowner

Multicrop farmland..

Irrigated farmland out of acquisition ambit for non-farm uses. But, state can decide to what extent farmland should be protected. The farmer does not have any say in the matter

Problematic clauses..

 No guarantee of jobs in R & R package; compensation calculated according to circle rates much less than market prices; no protection to farmland; state government to decide if unused acquired-land should be returned to the farmer or added to its land bank.

This applies even if owners return the compensation

Make the land acquisition process slower; compensation would raise costs of projects fivefold; retrospective application clause not favourable.


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Revised Land Acquisition Bill to Push Up Real Estate Prices and Affect Budget Homes..


The Revised land acquisition bill passed by Lok Sabha on recently is expected to push up property prices & will have adverse impact on affordable housing projects, real estate developers / promoters &  consultants told.

The Revised land acquisition bill states that affected families will get four (4) times the market value of land acquired in rural areas & two (2) time in urban areas and land losers will get compensation.

Mr. Sunil Rohokale, Managing Director, ASK Group, an asset management company, “If you pay two or / four times the market value of a property depending on where you buy, land costs will go up which will increase price of the end product”

Mr. Niranjan Hiranandani, Managing Director, Hiranandani Constructions said, "" When cost of acquisition goes up, project costs go up which lead to higher prices.”


Several are of the belief that the bill is likely to have an adverse impact on affordable homes projects in India.

“Land costs in power projects are 3% to 4% of overall costs, but in housing, it is substantial. When land costs are high, affordable homes is not possible” Mr. Niranjan Hiranandani also said.

Mr. Sanjay Dutt, Managing Director, Cushman & Wakefield, a global property consultant said: “Government does not give land to developer but expects them to do affordable homes. Does not give them approvals. But,  them expects them to pay premium on development. The  central government should have given additional development rights to developers / promoters  for paying higher land prices to farmers. If you give 4 FSI *, developers think that they are paying more for additional developable space. A lot of future affordable supply will get impacted now”

Real Estate industry has mixed views about the consent from 80 % of affected parties.

Mr. Lalit Kumar Jain, President, Confederation of Real Estate Developers Associations of India (CREDAI) , feels this clause will lead to many sorts of issues, ASK’s Rohokale said getting consent from the large majority leads to certainity in launch of projects.

Realty Industry veterans feel  the Revised land acquisition bill does not impact individual land buyers as it talks about "land acquistions" of 50 acres in cities and 100 in rural areas.

* FSI - Floor Space Index


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Revised Land Acquisition Bill: Beneficial to Land Owners..

by Mr. Mayank Saksena, Jones Lang LaSalle India

The newly revised Land Acquisition Bill is beneficial to land owners. The scope of minimum required approval has been increased to 80% of the affected families. This consent is mandatory only for private enterprises.

ISecondly, the central Government's role in land acquisition has been curtailed as far as private enterprises are concerned. These enterprises can now enter into their own negotiations and arrive at the price to be set for acquisition.



Thirdly, different techniques for arriving at the compensation to be paid have been provided. With the intention of providing land owners with compensation which is closer to the existing market rates, the Land Acquisition Bill now stipulates that local circle rates will now need to be doubled and further multiplied by a factor of two when it comes to land parcels in rural areas. This means that that the acquisition price for land in rural areas will effectively be four times that of the local circle rates. In urban areas, the circle rates will need to be doubled in order to arrive at the acquisition price.

Mr. Mayank Saksena
The new Bill also requires a Social Impact Assessment (SIA) study to be carried out.

This study will have to outline how the acquiring parties intend to use the land, and how the original inhabitants or owners will be rehabilitated. The Act now also puts very definite timelines on project completion and entire land utilization.

For developers / promoters, the cost of land is going to increase significantly, impacting their project costs and therefore margins.

Land valuations are already high and by further increasing them, land acquisition becomes even more difficult. Anyone without an existing land bank will now be looking at vastly increased entry costs.

About the author..
Mr. Mayank Saksena, Managing Director - Land Services, Jones Lang LaSalle India:


Mayank Saksena
Managing Director - Land Services
+91 124 460 5000
mayank.saksena@ap.jll.com


For Media Contact
Arun Chitnis
Head – Corporate Communications & Media Relations
Jones Lang LaSalle India
Level 6, Amar Avinash Corporate Plaza
Bund Garden Road,
Pune 411001.
Tel: (020) 30930441 Fax: (020) 40196101
Mob: +91 9657129999
Website: www.joneslanglasalle.co.in

Blog: www.joneslanglasalleblog.com/realestatecompass
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SEBI Asks Investment Advisers to get Registration Certificate by October 21, 2013

Market regulator Securities and Exchange Board of India (SEBI) on recently directed all investment advisers to get registered with itself by October 21, 2013 to continue their services.

SEBI in a notification in January, 2013 had made it compulsory for investment advisers to first obtain a certificate of registration for the same in a move to weed out unauthorised entities giving advice to investors.

“All the persons acting as an investment adviser before the commencement of Investment Advisers Regulations are advised to make their application for grant of registration before October 21, 2013 to continue to do so,” SEBI said in a statement.

It also said that the advisors “shall comply with the requirement of obtaining a certificate of registration for acting as investment adviser under the IA regulations”.

As a part of its efforts to make it convenient for genuine entities to get the registration, Sebi has allowed filing applications with its regional and local offices across India

The regulator SEBI said the applicant seeking to act as an investment adviser should make an application to SEBI in a prescribed format along with the necessary supporting documents sucha as details of the investment advice provided.

As per the regulation, SEBI made it mandatory for investment advisers to register with the capital markets regulator & also require them to disclose all issues that could result in conflict of interests, among others.

“…no person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board or he is specifically exempt,” SEBI noted.

“Provided that a person acting as an investment adviser immediately before the commencement of these regulations may continue to do so for a period of six (6) months from such commencement or / , if it has made an application for a certificate within the said period of six (6) months, till the disposal of such application” it added.

To ensure more transparency, the new regulations require investment advisers - banks, non-banking financial companies (NBFCs) and corporates - would have to segregate their investment advisory services from other activities.

Investment advisers also have to disclose the fee received for their advice on a particular financial product.

SEBI said all entities engaged in advising on financial products would need to get registered with it. Besides, the investment advisers need to separate this activity from all other activities such as distribution.

To be an investment adviser, corporate bodies need to have a minimum worth of Rs. 25 lakh while the threshold level would be Rs. 1 lakh for individuals.



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IIFL Mutual Fund launches IIFL Short Term Income Fund - NFO Opens on August 30, 2013; Closes on September 11, 2013


  IIFL Mutual Fund announces its new offering of an open-ended Income Scheme—IIFL  Short Term Income Fund (‘Scheme’), with an objective to seek to generate income and capital appreciation through investment in debt instruments and money market instruments and to achieve stable returns over shorterterm investment horizons. 
The asset allocation will be in Debt  Instruments and/or Money Market Instruments to the extent of80%- 100% with residual maturity less than 3 years and 0%-20% in Debt instruments with residual maturity less than 5 years. The scheme would invest in securities with average maturity up to 3 years.


Mr. Gopinath Natarajan, CEO, IIFL AMC, said, “Recent RBI measures to stabilize currency has led to short term interest rates spike to near peak levels in last five years along with inversion of yield curve. In this background, we are pleased to offer an investment opportunity to investors in the form of IIFL Short Term Income Fund. The  Scheme will seek to achieve stable returns with focus on higher accrual income at the short end of the yield curve.”

There are three options offered under this scheme – Growth, Dividend and Bonus —and a special facility of Systematic Investment Plan (SIP).

There is no entry load, while an exit load of 0.50% will be charged for exit on before 3 months from the date of allotment. The units of the scheme are available in the dematerialized mode also.

Mr. Rahul Aggarwal, Fund Manager of the Scheme is a PGDM from IIM Calcutta, B.E. (Computer Science) and Certified FRM  (Financial Risk Manager). He has over 8 years of experience including experience in capital markets, especially on fixed income, credit risk, trading and portfolio management. Prior to joining IIFL Mutual Fund, he was associated with L&T Mutual Fund.

Mutual Fund Investments are subject to market risks,

read all scheme related documents carefully.


This product is suitable for investors who are seeking*

•  Income over short to medium term

•  Investments primarily in money market and short term debt instruments.

•  Low Risk                 (Blue);


*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.

Risk is represented in following colours:


(BLUE) investors understand that their principal will be at low risk
           
(YELLOW) investors understand that their principal will be at medium risk
           

(BROWN) investors understand that their principal will be at high risk


For further details contact:

Mr. Nikhil Mansukhani, Adfactors PR, Tel: 9833552171 / 9820531932


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Marutham Prestige: Flats at West Tambaram

 Name of the Promoter: MaruthamGroup

Name of the Project: Marutham Prestige

Type: Residential Flats



Location:  Near Krishna Nagar,Tambaram West,Chennai

Marutham  Prestige  project  located at  West Tambaram  .

The exact location and details of the project are as follow:

Marutham Prestige
Bharathidasan Nagar
 Near Krishna Nagar,
Tambaram West,
 Chennai-600 045
 

Total No of flats      -   165
  Booked No of Flats   -   44
 Rate Per Square feet Rs. 4,200 (Excluding other charges)

Marutham Prestige Project High lights :
Distance from Major Spot
**  Tambaram Railway Station / Bus stop         - 3 km
** Airport                                                            -13 km
** MEPZ                                                               - 4.5 kms
* *OMR                                                                 - 16kms
** Mahindra  world city                                   -15 kms
** Oragadam Sipcot                                          - 15 kms
** Sriperumbudur sipcot                                   - 20 kms

 
Highlights :
* The Lord International school
* Good Earth Matriculation Hr.sec.School
* Sunadaravalli Mat /CBSE  Hr .Sec School
* Padmavathy public School(CBSE)
* Ramakrishna Mat Hr.Sec. School
* Jain Vidhyala Matriculation Hr.sec. school
* Zion Matriculation Hr. sec. School
* Christ king Matriculation Hr. sec.School
* Sri Sankara Vidhyala CBSE / Matriculation Hr Sec School
 * Madras Christian college
* SRM University & Hospital
* Sairam Eng College
* Dhanalakshmi Eng College
* TMG Arts & Science college
* Balaji Medical college  & Hospital
* Hindu Mission Hospital
* Vandalur new bus Terminus (Proposed)
* Vandalur  Zoo
* Crescent  Eng college 
* GKM Eng College

For Marutham Group
Mr. B.Ramesh
Asst-Sales Marketing
Mobil: 93616 65041


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SILVER LINE BUILDERS : Residential project at Tambaram - Mudichur - Manimangalam Road, Near Chennai.

Name of the Promoter: SILVER LINE BUILDERS

Name of the Project: Anushu's Enclave

Type: Residential

Location: Tambaram - Mudichur - Manimangalam Road, Near Chennai

For Booking Contact
G. Murali, Manager - Marketing
Silver Line Builders
98401 97530

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TIME GREEN FOUNDATIONS: Housing township - PLOTS, VILLAS, ROW HOUSE at Acharapakkam ON G.S.T. ROAD


Name of the promoter:  TIME GREEN FOUNDATIONS

Name of the project: GOLDEN PARADISE

Types : PLOTS, VILLAS, ROW HOUSE

Location: Acharapakkam  ON G.S.T. ROAD NH-45.
 



TIME GREEN FOUNDATIONS presents  GOLDEN PARADISE  a  New Housing township       
PLOTS
VILLAS
ROW HOUSE
at Acharapakkam  ON G.S.T. ROAD NH-45.
 
AMENITIES INCLUDED:

* * ON ROAD G.S.T,  Near TOLL PLAZA.

* * Black Top Road,

* * Well laid 30 feet & 23 feet road,

* * Street lights, Water tank,

* * Gated fencing with 24  hrs security service,

* * Near by residential area, Engg. Colleges, School,.MNC Company's etc.
 
* * Kids play area, Park, Swimming pool, Joking track and Landscape Garden.

* * Restaurant, Indoor Games, Outdoor Games, Conference Hall & Party Room.

 * * Proposed Villas, Row Houses, Duplex & Feature Breathing Greenery

* * Frequent Transportation & Train Facility,

*  Five Years maintenance,
 
Plot rate is Rs. 450 per Square feet including registration , Book now get Cox & kings international

For Booking Contact

Mr. Dinesh G.M
General Manager

Time Green Foundations
# 55, Hig gst road
M. M Nagar Township
Maraimalai Nagar - 603209
Hand Phone ; +91-9841-777-077,+91-9941-777-077

web site: www.timegreen.in
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Time Green Foundations - Maraimalai Nagar, Near Chennai - Contact Details


Time Green Foundations

No. 55, G.S,T, Road,
M. M. Nagar Township
Maraimalai Nagar, Near Chennai - 603 209


Mr. Dinesh G.M
General Manager

Hand Phone : + 91 -  98417 77077
                       + 91  99417 77077




Email: navin@timegreen.in

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Terminology Finance : Tax Definition


A fee charged (levied) by a government on a product, income, or / activity. 

If tax is levied directly on personal or / corporate income, then it is a direct tax.  If tax is levied on the price of a good or / service, then it is called an indirect tax.

The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods & services, like street lighting & street cleaning.

Since public goods & services do not allow a non-payer to be excluded, or / allow exclusion by a consumer, there can not be a market in the good or service, and so they need to be provided by the government or / a quasi-government agency, which tend to finance themselves largely through taxes.


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Ponzi Companies to Face Fines up to 3 Times of Profits


Operators of illegal money-pooling schemes will soon face penalties of up to 3 times the profit made by them, against the current provision of a meagre fine of Rs. 1 crore.

Capital markets regulator SEBI (Securities and Exchange Board of India) has decided to increase the monetary penalty for those running unauthorised collective investment schemes (CIS), as the existing mechanism have not proved to be sufficient to deter such illegal mobilisation of money.


A proposal to this effect has been approved by SEBI and the same would be notified soon, an official said.
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Construction Material Price

Construction Material Price - Chennai

Builders' Association of India, Southern Centre,
"Casa Blanca", 2nd Floor, 
11, Casa Major Road, 
Egmore, Chennai - 600 008. 
Phone : 28192006 
Telefax : 28191874 
E-mail : baisouthern@yahoo.com


Material Name
Specification
Last Week
Current
CEMENT
PER 50 KG BAG (BULK 300 BAGS)
Rs.275/-
Rs.275/-
CEMENT
PER 50 KG BAG (RETAIL)
Rs.285/-
RS.285/-
STEEL
Non ISI 6MM
Rs.43,700/-
Rs.43,700/-
STEEL
TMT 8MM DIA
Rs. 44,800/-
RS.44,500/-
STEEL
10-25 MM DIA
Rs.43,300/-
Rs.43,000/-
STEEL
RMS
Rs.47,500/-
Rs.47,000/-
STEEL
STIRRUPS
Rs.48,500/-
Rs.48,000/-
STEEL
VSP/SAIL 10mm dia
Rs.45,500/-
Rs.45,400/-
BRICKS
3000 Nos
Rs.19,000/-
Rs.19,000/-
RIVER SAND
-
Rs.38/- to Rs.43/-
Rs.38/- to Rs.43/-
BLUE METAL
12MM
Rs.20/- to Rs.22/-
Rs.20/- to Rs.22/-
BLUE METAL
20MM
Rs.28/- to Rs.30/-
Rs.28/- to Rs.30/-
BLUE METAL
40MM
RS.24/- to Rs.26/-
Rs.24/- to Rs.26/-
BITUMEN AT I.O.C.
GRADE 80/100
Rs.44,125/-
Rs.44,125/-
BITUMEN AT I.O.C.
GRADE 60/7O
Rs.45,100/-
Rs.45,100/-
MASON
Per day
Rs.500/- to Rs.550/-
RS.500/-to Rs.550/-
MEN
Per day
Rs.350/- to Rs.400/-
Rs.350/- to Rs.400/-
WOMEN
per day
Rs.250/- to Rs.300/-
Rs.250/- to Rs.300/-
PAINTER/PLUMBER
per day
Rs.450/- to Rs.500/-
Rs.450/- to Rs.500/-
CARPENTER
Per day
Rs.500/- to Rs.550/-
Rs.500/- to Rs.550/-

http://www.baisoutherncentre.com/market-info.aspx
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