Mumbai, April 03, 2007 - Various banks including ICICI Bank, HDFC and PNB have increased their home loan rates. This follows the Reserve Bank of India's recent decision to hike the inter-bank short-term lending rate by 0.25% and the mandatory deposits banks are required to make with the RBI by 0.5%. The CRR increase will squeeze money out of the banking system by forcing banks to deposit an extra Rs 15,500 crore with RBI. Controlling inflation is the central bank’s top priority.

ICICI Bank raised home loan interest rates by 1%, its fifth increase since May last year, when home loans were going for only 8.5%. ICICI has also increased the broad floating reference rate that determines other consumer loans like car and personal loans to 12.75%. ICICI Bank's deputy managing director Chanda Kochar said, "The rate increase will definitely slow down disbursal of new loans, a trend already visible in the last six months."

India's largest mortgage firm Housing Development Finance Corp (HDFC) has raised its key lending rates by 75 basis points to 14.25 per cent. 

Punjab National Bank has hiked the spread on loans to commercial real estate and large non-deposit taking NBFCs by 50 basis points to 4 per cent over the benchmark prime lending rate (BPLR). 

The higher interest rates and EMIs are likely to hit the property market as potential buyers postpone their purchase decisions. Real estate industry observers also believe that prices could come down by 10%-15% as demand slows and speculative activity decreases due to the rate hike.
Rs 2537 crore released for urban infrastructure projects in 2006-07 | INRnews

New Delhi, India, April 12, 2007 - Rs.1353 crore have been released as the first installment of central assistance for the projects under the Jawaharlal Nehru National Urban Renewal Mission during 2006-07. Out of the approved projects, 64 are for water supply, 39 for sewerage, 39 for road and flyovers, 27 for drainage and 20 for solid waster management. 205 projects have been approved involving a total cost of Rs. 17,000 crore. These projects will get central assistance of about Rs. 8300 crore.

62 cities have prepared city development plans, 49 cities have signed Memorandum of Agreement with the Urban Development Ministry with regard to reform agenda and implementation schedule. 28 cities and Union Territories have submitted their detailed project reports with regard to submission Urban Infrastructure and Governance.

Rs. 1184 crore have been released as first installment of central assistance for projects under the Urban Infrastructure Development Scheme for Small and Medium Towns, UIDSSMT during 2006-07. 328 projects have been approved for 274 towns involving a total cost of Rs. 4204.62 crore. The Government will release 3382.36 crore as central grant for the projects during the implementation period.

Secretary, Urban Development Ministry Shri M.Ramachandran took a review meeting of the progress of the JNNURM projects with the senior officials of his Ministry. The Government is giving top priority to drinking water, sewerage, drainage and solid waste management schemes in mission cities. Shri Ramachandran convened a meeting of all States and UT secretaries of Urban Development in Kochi on 14th of April 2007. The meeting will discuss issues including capacity building at States and City levels, monitoring and implementation of JNNURM projects, urban infrastructure development schemes for small and medium towns, community participation, new technologies in sewerage and solid waste management, resource mobilization for urban local bodies, measures to improve urban governments, reduction in water wastage and initiatives to improve public transport in cities.

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