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Why Investment In Rudrapur
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Rudrapur Among World's Best Property Investment Opportunities
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According to recent research India is in the top three of most popular property
investment destinations. India's Rudrapur is one of the best investment opportunities on
the global market. It presents such a massively good opportunity because of the level of
new businesses and factories coming into the area.
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| Some 465 new factories will be built
and create a massive industrial estate on the outskirts of Rudrapur by Dec 2008. The
new factories are being built in the area because the government appointed the 4200
acre site a Special Economic Zone. First seen in China the SEZ program offers
companies major incentives for moving or opening their operations in the SEZ, the main
incentive being complete exemption from income tax for the first five years, and a
discount of 30% on their income tax for the next five years.
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India Inc turned the small town into a boom town when they became the first company
to set up shop in the new SEZ investing $2billion in a new factory. 465 other companies
have been allocated plots since then, 388 factories are being built and 77 have been
completed and are already manufacturing goods and boosting the economy. By the
time all factories are complete 50000 people will be employed on the site, and a further
250,000 will be indirectly employed by the new factories (area managers, sales reps,
sellers, retail outlets taking on new staff etc).
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| Some of the 50,000 employed directly,
actually in the factories will be from Rudrapur, but most of the 300,000 will come from
outside the area, and will be looking for high quality rental accommodation in Rudrapur.
So far only 10,000 new units are being built or are scheduled for Rudrapur, this will
create a supply shortage and a high level of demand for quality rented accommodation.
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| David Stanley Redfern ltd customers can buy just what these new workers will be
looking for: The Mountain View Development Rudrapur, is just a five minute drive from
the industrial estate, and is close to rail links for commuters to the new factories.
Mountain View consists of 2 en-suite bedroom apartments with balconies, for only
£29000 each. A 5% rental yield is being guaranteed by the developer for the first two
years but if you have time to manage the rental yourself the guarantee should be
avoided as there is the potential to make a lot more.
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| Enthusiastic real estate agents in Rudrapur and leading real estate developers like Omaxe Group, Sherya Developwell, Samiah International Builders, Weltech Builders and others are convinced about the spiraling prices the region will offer. Industrial houses like Tata, Bajaj, Honda, Escorts, Nestle, Britannia, Dabur, Parle, Jindals, Mahindra, Kores, Radiant, Interarch, U.S. Foods, Mahaveera Transport and others are promptly setting up facilities here. The investment outlay of these companies set for this work exceeds Rs. 7,000 crores.
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| Rudrapur Real Estate: The new boom town
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| Rudrapur, the gateway to Kumaon hills, is surrounded by Nainital in the north,
Bijnor, Moradabad and Rampur in the west, Bareilly and Pilibhit in the south, and
Champawat district in the east. It is fast emerging as one of the largest industrial
hubs in the nation, with the industrial already exceeding Rs 30,000 crore. The
town has witnessed rapid growth in real estate after 2003 when the government
proposed monetary incentives for the companies setting up their units in the IIE
(Integrated Industrial Estate), Pantnagar. Swift industrialization, corporate
arrangements and the encouraging role of government policies is extending the
strong atmosphere for industrial expansion in this area and thus offering
immense opportunity for real estate development.
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| All these alluring and beneficial openings have invites big names of the
corporate arena like Tata Motors, HCL, Lenovo, Bajaj Auto, amongst others, to set
up plants in this area.
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| The rush in real estate properties and developments in Rudrapur is
primarily the result of tax and economic incentives announced by the central and
state governments to promote industrial growth. Rudrapur has been declared as
a non-tariff area for central excise, customs and sales tax duties for a period of
ten years which span may also be extended by the central government. This has
prompted industry players to set up big plants and the subsequent settling down
of numerous corporates. Companies that begin production before a cut-off date
get a 10 year excise duty exemption, five year full income tax break and reduced
production levels for the next five years.
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| The area, as a result, is witnessing hectic
activity on the industrial front with a host of companies, from the automobile,
Pharma and FMCG sectors, setting up facilities here. Infrastructure has been a big
draw at Rudrapur: Explains Arvinder Singh, MD, Alliance Nirmaan Limited, "Unlike
most of the cities in India, infrastructure is not a bother here. There is no dearth
of electricity and water. Moreover, electricity rates are the lowest in the country
and you can get water by digging not even 5 feet." Connectivity too is good as the
town is situated on the Delhi-Nainital highway (NH-74) and the Khatema-Panipat
highway (NH-87). Four laning and widening of roads from Delhi to Rampur,
Rampur to Rudrapur and Bareilly to Moradabad is on. The Rampur to Kathgodam
rail route is proposed to be double lined. Rudrapur is conveniently connected by
air with the Pantnagar airport in the vicinity. The airport is being renovated to
enable Boeings and ATRs to land and also to have night landing facility. The
government is also working further on improving the infrastructure and
connectivity especially around the industrial belts.
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