Housing needs a Nano

I would like to begin by expressing my appreciation for all of you who visited my blog and shared comments on last post. It was startling and exciting to know so many diverse thoughts and opinions. Some agreed, some disagreed, but one thing evident was everyone’s zeal about development in India. I believe no one would disagree with me on this.
Last week an article caught my eye. It was about affordable housing in India. http://www.business-standard.com/common/news_article.php?tab=r&autono=323039&subLeft=1&leftnm=1

Omaxe, a real state player is planning to spend 20 bn dollars on constructing 1 million low cost houses. This move should be applauded and placed in same category of low cost innovation same as No frills hotels(Ginger, Tata’s venture), No frills airlines(Kingfisher, SpiceJet, GoAir) and low cost car(Tata Nano).
Housing sector has long been ignored and underserved. An 2BHK apartment in India’s Big cities like Mumbai and Bangalore is dream for millions of people. Hardly any one in India’s big cities can think of house with front and backyard like we see here in US.
There are various reasons to this housing problem:
Lack of government support and priority for affordable housing: There is lot of financing agencies, various housing banks but reality is none of them have revolutionized housing finance sector barring few such as ICICI bank and HDFC.
Lot of Black money involved in Land transactions: People with black(unaccounted) money have been parking their money in land and real estate for long time. Since it’s unaccounted, it gives an edge to these people in buying a property. Moreover, it drives the prices upwards and makes it even more difficult for people with limited white incomes to full fill their basic need.
Arcane Laws: Because Land is a state subject and not a union or federal subject, there is no common policy framework in whole country. Laws vary from one state to other. And for bankrupt state governments, land revenue is lucrative source of earning but they treat housing and land transactions like a butcher who kills Hen that hatches golden eggs. High property taxes, corrupt Land revenue department, low IT penetration, lack of transparency hinder growth of this sector.
Lack of corporate involvement: Companies have always structured their offerings for people with high disposable incomes,NRIs etc. There have not been large scale offerings of quality and affordable housing.
But looks like exciting times have come and things are changing. While taking cue from Omaxe, Tatas could consider venturing into this untapped, high potential market with a Ginger or Nano version of housing product. Mr Tata, Are you listening?

More things change, more they remain same

It has been close to two months since I “put pen to paper”. Since I have just been to India, I think this is good time to share the observations that I made in this trip.
I went home after close to 1.5 yrs. Hence, I was anxious to go and see family and friends. I boarded from Minneapolis Airport for Chicago. Baggage check in and security check were smooth. These days, airport security staff and travelers have learnt to cooperate with each other and they are taking traveling travails in good spirit. The flight from Minneapolis boarded and arrived on time in Chicago. I had lot of time on my hand in Chicago and hence made use of time to see the airport, buy some gifts and read books and paper.
Chicago’s O’Hare International Airport is world class airport. I could see lot of shops selling promotional items for 2016 Olympic Games, planned to be organized in Chicago while in Delhi’s Indira Gandhi Intl Airport, there were hardly any signs of Commonwealth games which are just 2 years away. This clearly tells you why sports are non priority for India.
I bought and read Financial Times as I had never read this paper before. I was surprised with lot of articles on India and China in paper and felt as If I am reading some paper from subcontinent. I was also carrying a book, “Exporting America” by Lou Dobbs. Since I had seen Lou Dobbs tonight on CNN several times, and main theme of this book is on outsourcing, I was interested to read the book. I was not impressed by reasoning presented in book. It seemed to be chauvinistic and exaggerated writing with sole agenda of presenting facts in negative light. But, I was impressed with the fact that after outsourcing of Manufacturing and high paying service jobs, how the employees and future generations would be trained to something that is unthinkable currently.
My American Airlines flight to New Delhi boarded on time. I liked the cabin crew services, especially sumptuous Indian food. I felt American Airlines serves good food and has good in-flight services. I am making these comparisons with experiences that I had with NWA-KLM which I feel grossly under serves.
My India experience started as soon as I landed in GMR Delhi Intl Airport at 9pm in Night. Nobody needs to tell you that you have arrived in India. The appalling infrastructure (more so because of revamp being done at the airport) and sad faces you see at immigration present a disappointing picture. You can make world class Infrastructure but how will you change mindset of people in immigration, customs and security check? All the claims of world class airport will fall flat if we don’t make folks at airports customer friendly and service oriented.

You are ashamed at mistreatment and feel like not coming to your home country. Nevertheless, one has to come and so did I.
To be on Delhi roads with so much traffic, noise and pollution is an experience in itself. I now imagine why foreigners become scary of Indian conditions when they are not accustomed to these in their home countries. while going to my friend’s place, I zipped through Chankyapuri area where all embassies and consulates are located. It was reminiscent of days when I came to Delhi for getting Belgium Visa.
I was soon going to start early morning when I was supposed to catch a train to go home.
I reached New Delhi Railway station early morning. It was crowded as expected but signs of grand railway station were missing. As soon as I entered the station my luggage was searched by two police men. I felt happy that there are people who are keeping eyes on people in such crowded areas. But, Here is a problem, when hundreds going in and out of station are two ill-equipped policemen sufficient to carry out this job? Can’t we have some x-ray machines installed at entrances and exits of National capital’s railway station?
My train came on time. As soon as it stopped, all passengers lined up at the door not even allowing passengers to get down. This is another typical behavior that you will find on all railway stations in India. Despite knowing that train is going to stop for 20 mins still people don’t have patience to let the passengers disembark from train. Why Indians are so Impatient? Why can’t they display more civilized behavior?
I was using Railway e tickets for first time. TTE came, saw my tickets but never bothered to ask for my identity card. After a while, a retired tourist couple hailing from New Zealand boarded the train. They were heading for Rathambore to see tigers. We had good conversations. At least it helped me pass time. One thing that I heard from them was differential pricing of tickets in tourists attractions like Taj Mahal. Indian govt charges Rs 20 to Indian citizens and Rs 750 to Foreign tourists. This lopsided pricing of tickets is unjustified and leaves a bad taste among foreign nationals. I have never seen this kind of pricing in any tourists location here in US.
After some time, lunch that I ordered came. I was surprised that IRCTC has outsourced the pantry services to RKHS(RKHS also serves in Infosys canteens) . I found no difference in service or quality of food which left a dangling question in my mind that whether organizations consider “customers” in their quest for outsourcing services?
My train journey was about to end as Ratlam(You can find references about Ratlam in "India Unbound" by Gurcharan Das) station was about to come. I reached Ratlam in evening after 12 hours of train travel. I have nice memories of Ratlam as I have spent my childhood days here. Out of station, I saw same old buildings, congested roads and tempos guzzling pollutants in plenty.
Dad had come to take me to home. We started our 2.5 hours journey to my home on a bumpy ride. I felt sad with road full of pot holes and more so uncomfortable life that has been in India for centuries. I was feeling drowsy and tired after traveling for more than 40 hours. Finally, I reached home with a thought in mind that “More things change, more they remain same”. I once belonged to the place and now I don’t desire to be part of it.