v-1015-18, final report, land of visakhapatnam port … valuer report on land valuation of... ·...

0 | P a g e

FFIINNAALL RREEPPOORRTT OONN VVAALLUUAATTIIOONN

OOFF LLAANNDD UUNNDDEERR

VVIISSAAKKHHAAPPAATTNNAAMM PPOORRTT TTRRUUSSTT,,

AATT VVIISSAAKKHHAAPPAATTNNAAMM,,

AANNDDHHRRAA PPRRAADDEESSHH,,

OWNED BY

VISAKHAPATNAM PORT TRUST

Mumbai, India,

March 2018

VALUATION OF LAND UNDER VISAKHAPATNAM PORT TRUST, VISAKHAPATNAM, ANDHRA PRADESH

1 | P a g e

V-1015-18

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 2

1.1 SCOPE OF WORK 2

1.2 OVERVIEW 2

1.3 PROCESS FLOW 2

1.4 SUBJECT ASSET 3

1.5 VALUATION APPROACH AND METHODOLOGY 4

1.6 SUMMARY 7

2. INTRODUCTION 10

2.1 INSTRUCTION 10

2.2 DATE OF INSPECTION 10

2.3 DATE OF VALUATION 10

2.4 PURPOSE OF VALUATION 10

3. VALUATION APPROACH & METHODOLOGY 11

3.1 VALUATION APPROACH 11

3.2 VALUATION METHODOLOGY 13

4. ABOUT VISAKHAPATNAM PORT TRUST 17

4.1 INTRODUCTION 17

4.2 HISTORY 18

4.3 CONSTRUCTION FEATURES OF PORT 18

4.4 LOGISTICS 18

4.5 HANDLING FACILITIES 18

4.6 HARBOUR FACILITIES 20

4.7 BERTHING FACILITY 21

4.8 SOCIAL MEASURES 22

5. SUBJECT ASSETS 23

5.1 LOCATION 23

5.2 AREA SCHEDULE 23

5.3 ZONE DESCRIPTION AND VALUATION 24

6. SUMMARY 86

ANNEXURE A – ASSUMPTIONS AND LIMITING CONDITIONS


2| Page

V-1015-18

Date: 17th March 2018

1. EXECUTIVE SUMMARY

1.1 SCOPE OF WORK

Assessment of fair market value of land situated at 12 zones of VPT falling under 28 different

villages of Visakhapatnam (Urban & Rural), Gajuwaka, Parwada and Bheemili mandals,

Visakhapatnam district of Andhra Pradesh state for the quinquennium period 2018-2023.

1.2 OVERVIEW

• Kanti Karamsey & Company, a firm of Govt. Registered Valuers; has been appointed by

Visakhapatnam Port Trust (VPT), for Assessment of fair market value of land of the fixed assets

i.e. a total of 7618 acres of land area of VPT, situated at 12 zones of VPT falling under 28

different villages of Visakhapatnam (Urban & Rural), Gajuwaka, Parwada and Bheemili

mandals, Visakhapatnam district of Andhra Pradesh state.

• It is understood that the purpose of this assignment is to aid VPT revise their Schedule of Rates

(SOR) for the quinquennium period 2018- 2023.

• In order to assess the Market Value of each of the zone, a detailed market research and

prevailing circle rates for each of the zone, the current occupants and the nature of their

business / activity, balance/ surplus land available for lease has been considered to arrive at a

Market Value for the land.

1.3 PROCESS FLOW

A. DATA COLLECTION

Following data/ information was provided by VPT

a) Final zonal plan map

b) Proposed land use plan 2020 map

c) General layout of village wise survey number

d) VPT-Schedule of rates-2013 till 2018 for 12 zones

e) Statement showing the zone-wise market values fixed per sq. yd for the V.P.T lands for

quinquennium 2018-2023 by Joint Collector, Visakhapatnam.

f) Analysis of the Highest accepted tender-cum-auction rates for each zone as provided by

VPT.

B. SITE VISIT

Conducted between 29.01.2018 to 05.02.2018 by Mr. Kunal Vikamsey (Government

Registered Valuer), Mr. Sandeep Gage (Civil Engineer) and Mr. Shem Joash Mathews (Civil

Engineer) in the presence of Mr. Subba rao (Junior Engineer, VPT), Mr. V Kondal Rao (Deputy

Surveyor, VPT) and Mr. Raju (Senior Land Guard, VPT).


3| Page

V-1015-18

C. MARKET RESEARCH AND DATA ANALYSIS

• A detailed market research in the micro market abutting each zone was undertaken to

understand the prevailing market trends and rates for land under residential, commercial

and industrial.

• Review at the office of the sub-registrar was undertaken to establish the rate of land as per

recorded transactions in each zone.

• The Development Control Regulation / Building Byelaws of VUDA were studies to establish

the permissible FAR (Floor Area Ratio) in each of the micro market abutting the respective

zone.

1.4 SUBJECT ASSET

Location

Geographically spread across 12 different zones falling in 28 villages of Visakhapatnam

(Urban), Visakhapatnam (Rural), Lankepalam village in Parwada Mandal and Mulakudu village

in Bheemli mandal in Andhra Pradesh state. Where the first 10 zones lies at a radius of 8 to 10

kms of Vishakhapatnam city and zone 10 & 11 lies in Lankepalam and Mulakudu village which

is approx. 30 km away from Visakhapatnam.

Area Schedule

Totally admeasuring 7,618 acres land which is divided into 12 different zones spread across 28

villages, Mentioned in the next slide is the zone wise division of land present in 28 villages

along with the respective mandals derived through zonal plan as provided by VPT.

Tabulated below is the list of zones with respective villages and mandal and area:

Zone Village Mandal Land Area in Acres

1A Kancharaplem VSP Urban

1370 Kancharapalem ( Ward) VSP Urban

1B Kancharapalem VSP Urban 185

2 Fort Ward VSP Urban

152 Seet Rama Swami Temple VSP Urban

3 Dolphin Nose Hill Gajuwaka

924 Malkapuram VSP Urban

4

Gullalapalem VSP Urban

2498

Malkapuram VSP Urban

Kapparada VSP Urban

Mulagada Gajuwaka

Mindi Gajuwaka

Akkireddipalem Gajuwaka

5 Buchiraju Palem VSP Urban 747


4| Page

V-1015-18

Zone Village Mandal Land Area in Acres

Kapparada VSP Urban

Mindi Gajuwaka

6

Buchiraju Palem VSP Urban

816

Gopalpatnam VSP Rural


Tungalam(Nathyyapalem) Gajuwaka

Venkatapathi Raju Peta Gajuwaka

Pullam Botla Palem VSP Rural

7 Buchiraju Palem VSP Urban

30 Maripalem VSP Urban

8

Allipuram Ext Ward VSP Urban

269 Dondaparthi Ward VSP Urban

Adavivaram VSP Rural

Kancharapalem ( Ward) VSP Urban

9 Harbour Park(Waltair Ward) VSP Urban

32 Maharanipeta Ward( Block No 4) VSP Urban

10 Mulakuddu Bhimunipatnam 307

11 Lankelapalem Parawada Mandal 288

1.5 VALUATION APPROACH AND METHODOLOGY

For the purpose of assessment of Market Value of the subject land of VPT, Market Approach as

has been adopted.

Market Approach (Direct Comparison Method):

The Direct Comparison Method involves a comparison of the subject property to same or

similar properties that have actually sold in arms–length transactions or are offered for sale.

During the course of market research following market data points have been sourced:

a) Review of the transactions registered in Sub-Registrar office.

b) Circle rate/Guideline value/Ready Reckoner rates as per Department of Stamps and

Revenue Government of Andhra Pradesh for the corresponding villages for each of the

12 zones of VPT.

c) APIIC land rates at Autonagar, Visakhapatnam for Industrial land.

Data analysis and Value working:

For arriving at the value for different zones we have considered suitable premiums and

discounts on the prevailing circle rate and rates provided by Joint Collector Visakhapatnam for

land zoned for residential and commercial. Whereas for land zoned for Industrial, the APIIC

land allotment rate at Autonagar (which is within 2 to 3 kms radius of majority of the zones of

VPT) at Visakhapatnam has been considered as a base


5| Page

V-1015-18

To these base rates following premium /discounts have been allocated for the following

factors:

a. General Factors:

• 30% discount for Large Extent of VPT land (since the land being allotted by VPT run into

multiple acres of land area as compared to the transactions/ circle rate- which is for a

per sq. yd. area)

• 25% discount for leasehold nature of VPT land (since the tenure of land being leased

by VPT is for 30 yrs. lease period, with only leasehold rights on the VPT land)

• 20% discount for present FAR of 1.00 on VPT land (since as per the Building bye laws

of Visakhapatnam Urban Development Authority – VUDA the permissible FAR ranges

between approximately 1.25 to 2.5 for residential and commercial land in

Visakhpatnam city).

b. Zone specific Factors:

• Premiums ranging between 5% to 15% towards connectivity, infrastructure, location

• Discount ranging between 5% to 10% towards height restrictions, development

restrictions due to proximity to mangroves and Meghadri Channel, undeveloped

nature of land, etc.

Reference for considering the above mentioned factors is as per Guidelines for Immovable

Properties 2009 as per Director of Income tax for valuation of land, as well as the

Internationally accepted Valuation Standards.

Further, during the course of the assignment a review of the Highest accepted tender-cum-

auction rates on the VPT land various zones were studied. It was observed that only a handful of

tenders/ auctions carried out in the last past three years are for different sizes of plots for setting

up of warehousing, garage and cold storage purposes. The rate determined through tenders is

basically depended on the factors such as availability of infrastructure such as rail and road

connectivity and those are all developed land which can be treated as premium for the plots

specifically and the prices determined through the tender mainly depends on the essential

factors like demand and supply, purpose, size of the plot.

Therefore the rates determined for specific plot through tender don’t reflect the realistic value of

the remaining land of the zone. As the proposed rates of SOR are applicable throughout the

zone for all the of plots of different sizes, different nature of uses, developed/ undeveloped,

connectivity etc, the rates discovered through tender cum auction for these five plots cannot be

considered as these are applicable for the transactions for equal size of land parcels and


6| Page

V-1015-18

similar usage of land and their characteristics. Those 5 plots of land including their specific

characteristics are discussed below:

• In Zone 4, the Highest accepted tender-cum-auction rate per sq. yd. by M/S Srivalli Shipping

and Transport Ltd for 10.4 acres for purpose of development of Container Freight Station

and storage facility is Rs 4,390 per sq. yd. In case of Zone-5 the Highest accepted tender-

cum-auction rate per sq. yd. was quoted by M/S Rain CII Carbon (Vizag Ltd) for area of

6.72 acres for purpose of development of covered storage facility/ warehousing for

processing of cargo is Rs 3,428 per sq. yd. And in Zone-6 Highest accepted tender-cum-

auction rate per sq. yd. is quoted by M/S Gateway East India Pvt ltd for area of 4.5 acres for

purpose of development of covered storage facility/ warehousing for processing of cargo is

Rs. 4,668 per sq. yd.

• In zone-4, M/S Srivalli Shipping and Transport ltd have obtained 10.4 acres of land at Rs.

4,390 per sq. yd. which is already developed land and having rail connectivity and thus they

can offer to pay premium for the land. And this factor may not be applicable for rest of the

land in zone-4 hence this rate may not be applicable for entire zone over the prevailing

schedule of rates.

• In zone-5, M/S Rain CII Carbon (Vizag Ltd) have obtained 6.72 acres of land at Rs. 3,428 per

sq. yd. and this land is located contiguous to their existing lease hold land. This additional

land, the bidder necessarily required for their expansion project, which cannot be equated

for other pieces of land, and thus the bidder can afford to pay premium to take that

contiguous land. And this factor may not be applicable for rest of the land in zone-5 hence

this rate may not be applicable for entire zone over the prevailing schedule of rates.

• In zone-6, M/S Gateway East India Pvt ltd have obtained 4.5 acres of land at Rs. 4,668 per

sq. yd. and this land is located contiguous to their existing lease hold land. This additional

land, the bidder necessarily required for their expansion project, which cannot be equated

for other pieces of land, and thus the bidder can afford to pay premium to take that

contiguous land. And this factor may not be applicable for rest of the land in zone-6, hence

this rate may not be applicable for entire zone over the prevailing schedule of rates

As per Land Policy Guidelines for Major Ports, for establishing the land rates, factor of Highest

accepted tender cum auction rate also has to be considered. But the Highest accepted tender

cum auction rate was found to be 50% to 70% higher than the existing Schedule of Rates for

2018, for some specific reasons attached to those pieces of lands the said highest rate thus

cannot be imitated for rest of the lands of the 3 zones, viz., zone 4, 5 & 6. Moreover such


7| Page

V-1015-18

sudden increase of rate as per the Highest accepted tender cum auction rate can adversely

affect the function and operation of the already existing leaseholder of the land. Hence For

purpose of establishing fare rates for zone 4, 5 and 6 and after observing the development

potential, connectivity and location of the area, and stiff competition from neighbouring ports it

is proposed that 10% to 15 % premium on the Schedule of rates as on 31-03-2018 for the

zones 4, 5 and 6 and the highest accepted tender cum auction rate for Zone 1A can be

considered fair and reasonable.

1.6 SUMMARY

A detailed summary of the Market Value for land for residential, commercial and industrial

under each of the 12 zones of VPT is as tabulated overleaf alongwith a comparison to the

Schedule of Rates considering the escalation from 2013 to 2018 for each of the zones of VPT.


8| Page

V-1015-18

Zone Location Area in

acres

Schedule of Rates(VPT) in Rs per

Sq. Yd. for year 2013

Schedule of Rates (VPT) in Rs per Sq. Yd. after

2% YOY escalation from 2013 till 2018

Proposed value zone wise in Rs per Sq.

yd. for 2018-23

R C I R C I R C I

1A Core- Operational area 1370 5,600 10,900 3,520 6,183 12,034 3,886 6,600 12,250 4,236

1B Near Convent Junction 185 7,500 15,000 7,500 8,281 16,561 8,281 8,800 18,000 8,546

2 Fishing Harbour 152 6,800 9,000 4,000 7,508 9,937 4,416 7,700 10,500 4,511

3 Hilly Area 924 2,500 NA 1,900 2,760 NA 2,098 3,000 NA 2,137

4 Industrial area 2498 4,900 7,600 2,350 5,410 8,391 2,595 5,500 8,600 2,984

5 Near Airport area 747 4,700 11,900 2,380 5,189 13,139 2,628 5,563 15,000 3,022

6 Near National Highway 5 816 5,700 18,600 2,850 6,293 20,536 3,147 6,450 21,375 3,619

7 Near Marripalem railway yard

away from highway 30 4,100 11,900 2,600 4,527 13,139 2,871 4,650 13,800 3,086

8 Salgramapuram area 269 20,000 30,000 NA 22,082 33,122 NA 22,588 36,250 2,849

9 Harbour park area 32 36,700 41,700 NA 40,520 46,040 NA 42,000 49,350 3,324

10 Bheemuni patnam area 288 1,300 NA NA 1,435 NA NA 1,464 NA 1,199

11 Lankelapalam area 307 1,700 NA NA 1,877 NA NA 1,915 NA 803


10 | P a g e

V-1015–18

2. INTRODUCTION

2.1 Instruction

Kanti Karamsey & Company, referred as “Govt. Registered Valuers”; has been appointed by

Visakhapatnam Port Trust (VPT), for assessment of fair market value of land i.e. a total of 7618

acres of land area of VPT, situated at 12 zones of VPT falling under 28 different villages of

Visakhapatnam (Urban & Rural), Gajuwaka, Parwada and Bheemili mandals, Visakhapatnam

district of Andhra Pradesh state.

2.2 Date of Inspection

The subject land parcels have been visited between 29th January 2018 to 5th February 2018 by

a team of engineers from Kanti Karamsey & Co.as follows:

• Mr. Kunal Vikamsey (Government Registered Valuer),

• Mr. Sandeep Gage (Civil Engineer)

• Mr. Shem Joash Mathews (Civil Engineer)

in the presence of Mr. Subba rao (Junior Engineer, VPT), Mr. V Kondal Rao (Deputy Surveyor,

VPT) and Mr. Raju (Senior Land Guard, VPT).

2.3 Date of Valuation

The Market Value of the subject property is assessed as on 30th January 2018.

2.4 Purpose of Valuation

It is understood that the purpose of this assignment is to aid VPT revise their Schedule of Rates

(SOR) for the quinquennium period 2018- 2023.


11 | P a g e

V-1015–18

3. VALUATION APPROACH & METHODOLOGY

3.1 Valuation Approach

The objective of the valuation exercise being to assess the Fair Market Value of the land assets

of Visakhapatnam Port Trust, in 28 villages of Visakhapatnam, District, Andhra Pradesh

between 29th January 2018 to 5th February 2018. This would be achieved by a systematic

gathering, classification, and analysis of data, which is required in the development of the

following approaches to valuation: Cost Approach, Market Approach/Direct Comparison

Approach

♦ Cost Approach

This approach consists of estimating the replacement cost of the asset along with all

improvements therein, deducting accrued depreciation from all sources. The value

derived from this approach is a summation of the various property components

contributing to the total property value, and it is applicable when each component is

independently measurable, and when the sum of all components is believed to reflect

market value.

This approach is commonly used for assets for which appropriate comparative

benchmarks are not easily available but historic costs are available as well as

replacement / re-instatement costs are available in the open market. Primarily used for

financial reporting purposes on company balance sheets as well as for assessing the

present worth of the assets for insurance cover, price allocation for each asset, etc.

♦ Market Approach / Direct Comparison Approach

The Direct Comparison Approach involves a comparison of the subject property to

similar properties that have actually sold in arms–length transactions or are offered for

sale. This approach demonstrates what buyers have historically been willing to pay (and

Market Approach/ Direct Comparison Approach

Valuation

Approaches

Cost Approach

Income Approach


12| Page

V–1015-18

sellers willing to accept) for similar properties in an open and competitive market and is

particularly useful in estimating the value of the land and properties that are typically

traded on a unit basis.

The job involves inspection of site, collecting the necessary data from the site and then

applying suitable market rate to arrive at the market value. To derive the market rate a

general survey is carried out in nearby location to see if any comparable sales have

taken place, data collected from the Sub-Registrar’s office also aids in arriving at the

market rate of the property.

Influencing factors such as shape, size, quantum of land parcel, location, market and

development potential, etc. are some of the criteria adopted in deriving the market

value of the land parcel.

♦ Income Approach

Income Approach is based on the premise that the asset is an income-producing asset

and the value is a function of future benefits and income that could potentially be

derived from the asset. This involves determining the highest and best use for the

property, keeping in view the zoning regulations and development controls applicable to

the property in question.

The Residual Method of valuation is essentially a means of valuing land by reference to

its development potential by deducting development costs including demolition cost (if

any), foundation cost, superstructure construction cost, professional fees and finance

costs, together with developer’s profit and risk, etc. from its estimated Gross

Development Value (GDV), which is the aggregate market value of the Property

assuming the development was completed as at the date of valuation and sold at prices

around date of valuation.

The residual approach involves firstly the assessment of GDV of the property. Estimated

total cost of construction of the development including professional fees, plus an

allowance for interests and other associated expenditure including developer’s risk and

profit are deducted from the GDV. The resultant figure is the residual site value.

In this particular instance, since the purpose for assessing the Fair Market Value of the fixed

assets is for the Fair Value Measurement Market Approach has been adopted.


13| Page

V–1015-18

3.2 Valuation Methodology

For the purpose of assessment of Market Value of the subject land of VPT, Market Approach

as has been adopted.

Market Approach (Direct Comparison Method):

The Direct Comparison Method involves a comparison of the subject property to same or

similar properties that have actually sold in arms–length transactions or are offered for sale.

During the course of market research following market data points have been sourced:

d) Review of the transactions registered in Sub-Registrar office.

e) Circle rate/Guideline value/Ready Reckoner rates as per Department of Stamps and

Revenue Government of Andhra Pradesh for the corresponding villages for each of the

12 zones of VPT.

f) APIIC land rates at Autonagar, Visakhapatnam for Industrial land.

g) Statement showing the zone-wise market values fixed per sq. yd. for the V.P.T lands for

quinquennium 2018-2023 by Joint Collector Visakhapatnam.

h) Analysis of the Highest accepted tender-cum-auction rates for each zone as provided

by VPT Collector’s rate.

Data analysis and Value working:

For arriving at the value for different zones we have considered suitable premiums and

discounts on the prevailing circle rate published by Department of Stamps and Registration

Government of Andhra Pradesh while in the absence of circle rates than the rates provided by

Joint Collector Visakhapatnam for VPT land zoned for residential and commercial has been

considered. Whereas for land zoned for Industrial, the APIIC land allotment rate at Autonagar

(which is within 2 to 3 kms radius of majority of the zones of VPT) at Visakhapatnam has been

considered as a base since the collectors rate and igr rates not available for industrial lands

To these base rates following premium /discounts have been allocated for the following

factors:

a. General Factors:

• Estimated rate of discount of 25 % is applied as the nature of ownership changes in

comparison with the freehold land outside and inside VPT boundaries.


14| Page

V–1015-18

• A discount of 30% is applied to arrive at the rate for the land of VPT as the JSRO rates

are for the net plot of lands which is arrived after deduction of this common amenities

and facilities.

• Suitably adopted a premium of 40 % and 50% on the estimated rate of residential and

commercial for having superior location, and development stage for the lands situated

in Zone 8 & 9.

• Suitably adopted a premium ranging between 5 % to 15 % on the estimated Industrial

rate for zones having superior location in terms of public road connectivity and

proximity to the city as well as the national highway and a discount ranging between

5% to 15% for zones having undeveloped nature of land, development restrictions and

lack of connectivity.

• Suitably adopted a discount of 20% on the base line rate of State Govt. considering

that the existing Floor area ratio (FAR) of VPT lands in 1.00 and uniformly applied for

all Zones.

b. Zone specific Factors:

• Premiums ranging between 5% to 15% towards connectivity, infrastructure, location,

etc.

• Discount ranging between 5% to 10% towards height restrictions, development

restrictions due to proximity to mangroves and Meghadri Channel, undeveloped

nature of land, etc.

Reference for considering the above mentioned factors is as per Guidelines for Immovable

Properties 2009 as per Director of Income tax for valuation of land, as well as the

Internationally accepted Valuation Standards.

Further, during the course of the assignment a review of the Highest accepted tender-cum-

auction rates on the VPT land various zones were studied. It was observed that only a handful

of tenders/ auctions carried out in the last past three years are for different sizes of plots for

setting up of warehousing, garage and cold storage purposes. The rate determined through

tenders is basically depended on the factors such as availability of infrastructure such as rail

and road connectivity and those are all developed land which can be treated as premium for

the plots specifically and the prices determined through the tender mainly depends on the

essential factors like demand and supply, purpose, size of the plot.

Therefore the rates determined for specific plot through tender don’t reflect the realistic value

of the remaining land of the zone. As the proposed rates of SOR are applicable throughout


15| Page

V–1015-18

the zone for all the of plots of different sizes, different nature of uses, developed/

undeveloped, connectivity etc, the rates discovered through tender cum auction for these five

plots cannot be considered as these are applicable for the transactions for equal size of land

parcels and similar usage of land and their characteristics. Those 3 plots of land including

their specific characteristics are discussed below:

• In Zone 4, the Highest accepted tender-cum-auction rate per sq. yd. by M/S Srivalli

Shipping and Transport Ltd for 10.4 acres for purpose of development of Container

Freight Station and storage facility is Rs 4,390 per sq.yd. In case of Zone-5 the Highest

accepted tender-cum-auction rate per sq.yd was quoted by M/S Rain CII Carbon (Vizag

Ltd) for area of 6.72 acres for purpose of development of covered storage facility/

warehousing for processing of cargo is Rs 3,428 per sq.yd. And in Zone-6 Highest

accepted tender-cum-auction rate per sq.yd is quoted by M/S Gateway East India Pvt ltd

for area of 4.5 acres for purpose of development of covered storage facility/

warehousing for processing of cargo is Rs 4,668 per sq. yd.

• In zone-4, M/S Srivalli Shipping and Transport ltd have obtained 10.4 acres of land at

Rs 4,390 per sq.yd which is already developed land and having rail connectivity and

thus they can offer to pay premium for the land. And this factor may not be applicable

for rest of the land in zone-4 hence this rate may not be applicable for entire zone over

the prevailing schedule of rates.

• In zone-5, M/S Rain CII Carbon (Vizag Ltd) have obtained 6.72 acres of land at Rs

3,428 per sq.yd and this land is located contiguous to their existing lease hold land.

This additional land, the bidder necessarily required for their expansion project, which

cannot be equated for other pieces of land, and thus the bidder can afford to pay

premium to take that contiguous land. And this factor may not be applicable for rest of

the land in zone-5 hence this rate may not be applicable for entire zone over the

prevailing schedule of rates.

• In zone-6, M/S Gateway East India Pvt ltd have obtained 4.5 acres of land at Rs 4, 668

per sq. yd. and this land is located contiguous to their existing lease hold land. This

additional land, the bidder necessarily required for their expansion project, which

cannot be equated for other pieces of land, and thus the bidder can afford to pay

premium to take that contiguous land. And this factor may not be applicable for rest of

the land in zone-6, hence this rate may not be applicable for entire zone over the

prevailing schedule of rates


16| Page

V–1015-18

As per Land Policy Guidelines for Major Ports, for establishing the land rates, factor of Highest

accepted tender cum auction rate also has to be considered. But the Highest accepted tender

cum auction rate was found to be 50% to 70% higher than the existing Schedule of Rates for

2018, for some specific reasons attached to those pieces of lands the said highest rate thus

cannot be imitated for rest of the industrial lands of the 3 zones, viz., zone 4, 5 & 6. Moreover

such sudden increase of rate as per the Highest accepted tender cum auction rate can

adversely affect the function and operation of the already existing leaseholder of the land.

Hence for purpose of establishing fare rates for zone 4, 5 and 6 for industrial land and after

observing the development potential, connectivity and location of these zones as well as stiff

competition from neighbouring ports it is proposed that 10% to 15 % premium on the

Schedule of rates as on 31-03-2018 for industrial land in the zones 4, 5 and 6 and the

highest accepted tender cum auction rate for industrial land in Zone 1A has been considered

fair and reasonable.


17 | P a g e

V-1015–18

4. ABOUT VISAKHAPATNAM PORT TRUST

4.1 Introduction

Visakhapatnam port is one of the leading major ports of India it is situated in Visakhapatnam

city of Andhra Pradesh. The Port is located on the east coast of India. The Port has three

harbours viz., outer harbour, inner harbour and the fishing harbour. The outer harbour with a

water spread of 200 hectares has 6 berths and the inner harbour with a water spread of 100

hectares has 8 berths.


18 | P a g e

V-1015–18

4.2 History

The Port was opened to ocean traffic with the arrival of a passenger vessel on the 7th October,

1933. In the first year of operation, the Port handled traffic of 1.3 lakh tonnes.

4.3 Construction Features of Port

1. The unique feature of the harbour has been the Island Break-water, constructed by scuttling

two old ships JANUS and WELLESDON which form the skeleton around which a rubble mound

is formed

2. The location of the port is very ideal in the sense that it affords protection from cyclones which

strike the east coast regularly, by a high promontory into the sea, known as Dolphin’s Nose Hill

which is to the north of the entrance channel.

3. The harbour was constructed by dredging 281.8million cubic ft of land and soft material.

4. It consisted of: Outer channel, inner channel, island breakwater, sand trap, turning basin, quay

wall of 1600 ft (3 berths), two transit sheds, three storage sheds, open storage area four

electric quay cranes, three NG Locos, one weighbridge, railway track, 15 sq. miles of acquired

land and other facilities like, graving dock, dredgers, tugs, lighters, power house, work shop,

roads, drains, water supply, buildings etc.

5. The Port was constructed at a cost of Rs.378 lakhs.

4.4 Logistics

1. Port Railways: Railway network at Port of Visakhapatnam is the largest amongst Indian Ports

with over 200km rail length.

2. Road network: A Road running within the Port land was commonly being used historically over

a long period by the Port Cargo Traffic and the City public between Port area upto NH-5.

Realizing the need to ease congestion of the traffic and to provide alternative route including

improving the travel time, a Port Connectivity Road from Visakhapatnam Port to NH-5 with a

total length of 12.5 km comprising of 4.9 km of Flyovers and Ramps at a total project cost of

Rs. 114.00 Crores was developed.

4.5 Handling Facilities

1. Iron Ore & Pellets

Functioning of the Mechanical ore handling plant known as ore handling complex

comprises of the receiving system and the shipping system. The ore received through

wagons is tippled and conveyed to the stacker for stacking in the receiving system. The

receiving system consists of three wagons tipplers (one twin wagon tippler of 2700 TPH

cap. and another tippler of 3000 TPH capacity) to tipple the wagons. The shipping system

reclaims the cargo from the stacks and conveys through the conveyors to the shiploader for


19| Page

V–1015-18

loading into the ships’ hatches. The system consists of 3 bucket wheel reclaimers 4000

tonnes per hour capacity, a long overhead conveyor system (4.8 kms – one way), a

surgebin of 2000 tonnes capacity and a ship loader with an assigned capacity to load iron

ore at 8000 tonnes per hour. This ship loader which moves on rails can negotiate a 2100

turn and can dip deep into the hatch of a ship. The loading conveyors (7 nos.) are all

overhead conveyors running at about 10 to 12 metres above ground level. The conveyors

are supported by means of a pre-cast RCC frames founded on piles. The pre-cast frames

are spaced at about 20.0 m c/c, a walkway of 1.0 m wide is also provided alongside of

the conveyor for attending to maintenance. The conveyor is designed to run at a speed of

210 mtrs/min

2. Coking Coal facilities

A deep draft berth in outer harbour (General-cum-Bulk cargo berth) with a quay Length of

356 meters to handle vessels of draft upto 14.5 meters is avai lable for handling imported

coking coal. The berth is capable of handling 10, 000 DWT vessels. 2 floating cranes viz.,

Bulk Express (4 grabs–2 for loading and 2 for unloading; 7.4 cu.m. to 22.6 cu.m.) and

Ravi B (11.5 cu.m. grab capacity) are available at the berth.

In addition, 5 multipurpose berths in inner harbour which can accommodate vessels of

11.0 m draft and 2 Multipurpose B.O.T berths operated by Vizag Seaport Pvt. Ltd.,

equipped with mechanized handling facilities are available. Other facilities include: 2Nos.

Harbour Mobile cranes at WQ berths Open area at West quay berths/East yard dumps –

1.7lakh sq.m. / 4 LT capacity Open area at GCB – 1.5 LT capacity Sidings with loading

facility into wagons and well-connected railway lines to GCB and inner harbour.

3. Alumina

A fully mechanized facility for loading Alumina is available at the dedicated berth (WQ-5)

with 241 meters length and permissible draft up to 11 meters. The facilities available at the

berth include: 3 silos of 25,000 tonnes capacity each, Mechanical wagon unloading

system (1100 TPH), Conveyor system for loading (2200 TPH)

4. POL

A deep draft Oil Tanker Terminal for berthing tankers of size up to 150,000 DWT and draft

upto 17 meters is available the facility is equipped with three unloading arms at the

terminal direct discharge from berth to the refinery tanks @ 5500 tonnes per hour through

pipe lines. Facility available for STS transhipment of crude from VLCC to smaller tankers.

An exclusive jetty with draft upto 14 meters is available to discharge LPG. A Cavern facility


20| Page

V–1015-18

for LPG first of its kind in South Asia – a mined rock Cavern at a depth of 200 mtrs below

sea level (capacity: 60,000 T) is available. Two berths in the inner harbour are available

for handling petroleum products.

5. Containers

A state of art container terminal is being operated by Visakha Container Terminal Pvt. Ltd.

The terminal is the deepest terminal of the country with a facility to accommodate main line

vessels up to 15 M draft. The terminal has a dedicated rail facility to handle full rake of 45

wagons. The terminal has a potential to handle 5 lakh TEU in future years and is ideally

situated to serve as "Container Hub Port" on the East Coast of India.

6. Cargo handling equipment

A state of art container terminal is being operated by Visakha Container Terminal Pvt. Ltd.

The terminal is the deepest terminal of the country with a facility to accommodate main line

vessels up to 15 M draft. The terminal has a dedicated rail facility to handle full rake of 45

wagons. The terminal has a potential to handle 5 lakh TEU in future years and is ideally

situated to serve as "Container Hub Port" on the East Coast of India.

Description Capacity Availability in Nos.

Electric Wharf Cranes 10T 09 Electric Wharf Cranes 15 T 10 Electric Wharf Cranes 20 T 04

Harbour Mobile Cranes (on hire) 140 T 02 Harbour Mobile Cranes (BOT operator) 104 T 03

Locos ( General Traffic) 1400 HP 08 Locos ( O H C ) 1430 HP 07

Locos (General Traffic) 3100 HP 03 Floating crane (Bheema) 140 T cap 01

Floating crane (Hanuman) 55 T cap 01

4.6 Harbour Facilities

Feature Inner Harbour Outer Harbour

Water Spread (Hectares) 100 200

Berths 18 6

Max. Draft(Mtrs.) 14.5 18.10

Max. length (Mtrs.) PANAMAX Cape Size


21| Page

V–1015-18

4.7 Berthing Facility

INNER HARBOUR NORTHERN ARM - EAST SIDE

Quay Berths Berth length (Mtrs) Permissible draft (Mtrs)

**East Quay-1 280.00 14.50 East Quay-2 - - East Quay-3 167.64 10.06 East Quay-4 231.00 10.06 East Quay-5 167.64 11.00 East Quay-6 182.90 11.00 East Quay-7 255.00 14.50

* East Quay-8 255.00 14.50 * East Quay-9 255.00 14.50

* Awarded to B.O.T. Operator M/s. Vizag Seaport Pvt. Ltd. ** Awarded to M/s Adani Vizag Coal Terminal Pvt., Ltd.,

INNER HARBOUR NORTH WESTERN ARM

Quay Berths Berth length (Mtrs) Permissible draft # (Mtrs) Fertil iser berth 173.13 10.06

Oil Refinery Berth-1@ 183.00 10.06 Oil Refinery Berth-2@ 183.00 9.75

@ Subject to a max. 195 Mts. at one of the two berths # Permissible draft of vessels is subject to availability of t ide - details given

under harbour facilit ies

INNER HARBOUR NORTHERN ARM - WEST SIDE

Quay Berths Berth length (Mtrs) Permissible draft # (Mtrs) West Quay-1 212.00 13.00 West Quay-2 226.70 13.00 West Quay-3 201.12 13.00 West Quay-4 243.00 11.00 West Quay-5 241.70 11.00

* West Quay-6 255.00 14.00 RE WQ-1 170.00 11.00

* Awarded to M/s West Quay Multi Port Pvt, Ltd., on DB FOT Basis

OUTER HARBOUR Berth Berth length (Mtrs) Permissible draft # (Mtrs)

Ore Berth-1 270.00 16.50 Ore Berth-2 270.00 16.50

*Vizag General Cargo Berth 356.00 18.10

Offshore Tanker Terminal 408.00 17.00

L.P.G. 370.92 14.00 **CONTAINER TERMINAL 451.00 14.50

* Awarded to M/s Vizag General Cargo Berth Pvt.,Ltd., ** Operated byM/s. Visakha Container Terminal Pvt. Ltd.


22| Page

V–1015-18

4.8 Social Measures

1. City’s Sewage: Major drains originating from the upper reaches of the city are discharging the

drainage water at different locations into the Port area before they finally discharge into sea.

These reaches of drains in Port area are being maintained regularly by Visakhapatnam Port to

ensure free flow of water and to keep clean environment of harbour waters. An annual

expenditure of about 70.00 Lakhs is being incurred for maintenance of drains, and culverts

etc.

2. Sports and Cultural Complex: In line with the policies of the Government of India for up-

liftment of Sports & Cultural developments and keeping in view the interest of the city public. A

large Sports complex with various facilities for Sports &Cultural activities was developed by the

Port in the early 1990s at a cost about ` 20.00 Crores. This Sports & Cultural Complex was

completed in VPT’s own lad of about 45 acres. The complex is provided with an Outdoor

Stadium of10, 000 spectators capacity and an Indoor Stadium of 3000 spectators’ capacity,

an auditorium of 1400 audience capacity for theatrical performances and Open Air Theatre

of 3500 audience capacity including ancillary facilities.


23 | P a g e

V-1015–18

5. SUBJECT ASSETS

5.1 Location

Geographically spread across 12 different zones falling in 28 villages of Visakhapatnam

(Urban), Visakhapatnam (Rural), Lankepalam village in Parwada Mandal and Mulakudu village

in Bheemli mandal in Andhra Pradesh state. Where the first 10 zones lies at a radius of 8 to 10

kms of Vishakhapatnam city and zone 10 & 11 lies in Lankepalam and Mulakudu village which

is approx. 30 km away from Visakhapatnam.

5.2 Area Schedule

Totally admeasuring 7,618 acres land which is divided into 12 different zones spread across 28

villages, Mentioned in the next slide is the zone wise division of land present in 28 villages

along with the respective mandals derived through zonal plan as provided by VPT.

Tabulated below is the list of zones with respective villages and mandal and area:

ZONE VILLAGE MANDAL LAND AREA (ACRES)

1A Kancharaplem VSP Urban

1370 Kancharapalem ( Ward) VSP Urban

1B Kancharapalem VSP Urban 185

2 Fort Ward VSP Urban

152 Seet Rama Swami Temple VSP Urban

3 Dolphin Nose Hill Gajuwaka

924 Malkapuram VSP Urban

4

Gullalapalem VSP Urban

2498

Malkapuram VSP Urban

Kapparada VSP Urban

Mulagada Gajuwaka

Mindi Gajuwaka


5


747 Kapparada VSP Urban

Mindi Gajuwaka

6


816

Gopalpatnam VSP Rural


Tungalam(Nathyyapalem) Gajuwaka

Venkatapathi Raju Peta Gajuwaka

Pullam Botla Palem VSP Rural

7 Buchiraju Palem VSP Urban

30 Maripalem VSP Urban


24| Page

V–1015-18

ZONE VILLAGE MANDAL LAND AREA (ACRES)

8

Allipuram Ext Ward VSP Urban

269 Dondaparthi Ward VSP Urban

Adavivaram VSP Rural

Kancharapalem ( Ward) VSP Urban

9 Harbour Park(Waltair Ward) VSP Urban

32 Maharanipeta Ward( Block No 4) VSP Urban

10 Mulakuddu Bhimunipatnam 307

11 Lankelapalem Parawada Mandal 288

5.3 Zone Description and Valuation

As mentioned earlier the land parcels are present in 12 different zones in 28 villages, following

are the zone wise description of the site along with surrounding development, market research,

findings ,key features and value working of different zones:

5.3.1 ZONE-1(A)

Source: Final Zonal Plan provided by client.


25 | P a g e

V-1015–18

Latitude: 17.710382, Longitude: 83.279493

Observation:

Present in the south eastern side of the city and very near to Bay of Bengal, this zone lies in

Kancharapalem village of VSP Urban mandal, Visakhapatnam district and totally admeasures

1370 acres. As witnessed during the site inspection the said land parcel is completely developed

with proper road connectivity and has railway tracks for purpose of carriage of goods and

materials, an inner harbour divides this zone into two different parts.

Mentioned below is the existing development in the zone direction wise:

a) To the North of this zone there lies major companies such as Essar Hi-Grade Pellets Ltd,

K.R Sons Pvt Ltd, Synergy Shipping Pvt Ltd, along with these, Zone 1(A) has West Quay

Multi Port Pvt Ltd’s stockyard, ONGC yard in north and in the north eastern part has a STP

plant of GVMC for sewage treatment.

b) At the centre of Zone 1(A) land is leased majorly to Essar Vizag Terminal, NALCO and

NMDC, also it was observed in the central portion of this zone there is an iron ore plot of

nearly 29 acres.

c) To the south western part of this zone which is adjacent to the inner harbour, West Ore

Berth (Coal Stack yard) is present.

ZONE-1(A)


26| Page

V–1015-18

d) Towards the south eastern part of the zone major development experienced is mostly of

administrative building of Visakhapatnam Port Trust, office building of Excise and Customs,

along with these, major companies such as Adani and Vedanta has set up for loading and

unloading coal. Steel Authority of India with its stackyard and container lies in this part of

zone1(A), towards the southern end of this zone, stackyard of Adani, SEW, Vizag General

Cargo Berth Pvt Ltd was witness, Harbour police station lies in this part of Zone 1(A), at

extreme south of this zone few warehouses are present.

As per observations it can be concluded that there is negligible vacant area in this zone and

land is developed as per the usage of industries and administrative buildings hence it can be

considered this zone has industrial and official purpose usage.

Surrounding Development:

Zone 1A lies in a developed area with One town and Kurpam market is the nearest locality to

the east with proper residential and retail development in the vicinity, Gnanapuram, SS nagar

and DLS colony are the major development near to Zone 1(A). Located at a distance of 2km

from Visakhapatnam Railway station which is nearer to northern part of the zone, and zone 1(A)

is approx. 7 km from the Visakhapatnam International Airport.

Market Research:

The ready-Reckoner rates of land for residential purpose in Kancharapalem village is Rs.22,

000- per sq.yd for residential land for stamp-duty purposes effective from 01/08/2017

published by government of State of Andhra Pradesh.

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.yd

by Joint collector Visakhapatnam and Schedule of Rates for 2018.

Location

IGR Values in Rs

per Sq.Yd

Value in Rs per Sq.Yd set by

Joint Collector

Visakhapatnam for VPT

Schedule of Rates(VPT) in Rs

per Sq.Yd after 2% YOY

escalation from 2013 till

2018

R C R C I R C I

Kacharapalem 22,000 NA 22,000 35,000 NA 6,183 12,034 3,886


27| Page

V–1015-18

Value Working:

In order to arrive at an appropriate land rate for the subject property following influencing

factors as mentioned in the Valuation Methodology above have been considered to which

suitable premium / discount have been assigned.

Residential

FACTORS Premium / Discount

A Large extent of Land parcel -30%

B Limits of VPT and leasehold land -25%

C Existing FAR on VPT land(1.00) -20%

D Location is suitable as per connectivity to different parts of city 5%

E Total Adjustment (A+B+C) -70%

F Base Rate per sq. yd. 22,000

G Total adjustment(E*F) -15,400

Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G) 6,600

Commercial




C Existing FAR on VPT land(1.00) -20%

D Location suitable due to connectivity to different parts of city 10%

E Total Adjustment (A+B+C+D) -65%


G Total adjustment (E*F) -22,750



28 | P a g e

V-1015–18

Industrial


A Undeveloped land -15%

B Total Adjustment (A+B+C) -15%

C Base Rate per sq. yd. 4,748

D Total adjustment(C*B) -712

F Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 4,036

After observing the development potential, connectivity and location of these zones as well as

stiff competition from neighbouring ports it is proposed that the highest accepted tender cum

auction rate for industrial land in Zone 1A has been considered fair and reasonable which is Rs

4, 236 per sq.yd.

Summarize below are the proposed rates for the market value of land:

Proposed value zone wise in Rs

per Sq.yd for 2018-23

Schedule of Rates(VPT) in Rs per Sq.Yd after 2%

YOY escalation from 2013 till 2018

R C I R C I

6,600 12,250 4,236* 6,183 12,034 3,886


29 | P a g e

V-1015–18

Photographs- Zone-1(A)


30| Page

V–1015-18

5.3.2 Zone 1(B)


ZONE-1(B)

ZONE-1(B)


31| Page

V–1015-18

Observation:

Similar to Zone 1(B), this zone is also present in the south eastern side of the city and very near

to Bay of Bengal, this zone lies in Kancharapalem village of VSP Urban mandal,

Visakhapatnam district and totally admeasures 185 acres. Zone 1(B) shares its boundary with

Zone 1(A) and is in the eastern part of VPT.

During inspection it was witness that this zone is particularly used for stacking of coal and also

presence of conveyor belts and railway tracks for purpose of transportation of materials is

prevalent in this zone.

As per observations it can be concluded that there is negligible vacant area in this zone and

land is developed as per the usage of industries i.e. for stacking of coal in particular, hence it

can be considered this zone has industrial and commercial purpose usage.

Surrounding Development

Zone 1(B) lies very close to Dabba Gardens and Gnanapuram which is to its east and

Velamepeta and Kabarthata are the nearest residential development which is to the north of this

zone. Convent Junction is a known landmark near to this zone. Located at a distance of 1km

from Visakhapatnam Railway station which is nearer to northern part of the zone, and zone 1(B)

is approx. 7 km from the Visakhapatnam International Airport.

Market Research

Whereas the ready-Reckoner rates of land for residential purpose in Kancharapalem village is

Rs. 22, 000- per sq. yd. for residential land for stamp-duty purposes effective from 01/08/2017

published by government of State of Andhra Pradesh.



Location IGR Values in Rs

per Sq. Yd.


Joint Collector





2018

R C R C I R C I

Kacharapalem 22,000 NA 22,000 35,000 NA 8,281 16,561 8,281

Value Working:


32| Page

V–1015-18


factors have been considered to which suitable premium / discount have been assigned.

Residential


A Large extent of land parcel -30%


C Connectivity with national highway, railway and airport. 15%

D Existing FAR on VPT land(1.00) -20%





Commercial




C Connectivity with national highway and to different parts of 15%







33| Page

V–1015-18

Industrial


A Connectivity with national highway, railway and

airport 25%

B Demand is more due to location 30%

C Basic infrastructure such as railway and road

network within the area 25%

D Total Adjustment (A+B+C) 80%

E Base Rate per sq. yd. 4,748

F Total adjustment(D*E) 3,798

Adjusted land Rate for Subject Property (Rs. per

sq. yd) (E-F) 8,546


34| Page

V–1015-18

Photographs-Zone 1(B)


35| Page

V–1015-18

5.3.3 ZONE-2

Latitude: 17.710382 Longitude: 83.279493

ZONE-2

ZONE-2


36| Page

V–1015-18

Observation:

Totally admeasuring 152 acres, and nearest to Bay of Bengal, this zone is known as the ‘Fishing

Harbour’ of VPT, this zone lies in Fort ward and Seeta Rama Swami Temple village in VSP urban

mandal of Visakhapatnam district.

During inspection of this zone it is noticed, it has the largest container handling unit of VPT i.e.

Visakha Container Terminal Private Limited. Along with VCTPL, EDP (Easter Power Distribution)

has it set up in this zone. Conveyer belt runs overhead through this zone. This zone has proper

road connectivity within the zone as well to different areas of the city.

In Zone-2 there are numerous religious places such as Venkateswar temple, Catholic Church

and Dargah of Hazrat Kadak to name the few, and all these places lies in Ross hill area of

Zone-2, an inner channel divides Zone-2 from Zone 1(A) in this area of Ross hill.

As per our observations and notice it can be concluded as a zone for industrial use and

commercial use.

Surrounding Development

One town is the nearest developed locality to this zone , major landmarks such as Head post

office, Kurpam Market, DEO office , Queen Victoria Statue is present in One town, Beach road

runs in the periphery of this zone which extends till Rushikondia.

It is located at a distance of approx. 4 km from Visakhapatnam Railway station and 12 km from

the Visakhapatnam International Airport.

Market Research

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq. yd.


Location

IGR Values in Rs

per Sq.Yd

Value in Rs per Sq.Yd set

by Joint Collector





2018

R C R C I R C I

Fort

ward NA NA 22,000 35,000 NA 7,508 9,937 4,416


37| Page

V–1015-18

Value Working:



Residential




C Sea facing location can be of demand for residential development 10%






Commercial


A Basic infrastructure as road and social support prevalent 5%

B Large extent of land parcel -30%

C Limits of VPT and leasehold land -25%






Industrial


A Smaller roads for connectivity of industrial vehicle -5%

B Total Adjustment (A) -5%


D Total adjustment(C*B) -237

Adjusted land Rate for Subject Property (Rs. per sq. yd) (C-D) 4,511


38| Page

V–1015-18

Photographs-Zone 2


39| Page

V–1015-18

5.3.4 ZONE-3

ZONE-3

ZONE-3


40| Page

V–1015-18

Observation:

Zone 3 lies to the south of VPT and is 926.55 acres in total, and present in Yarada and

Malkapuram village with Gajuwaka Mandal and VSP Urban Mandal respectively, basically a hill

area with major residential development compromising of naval quarters and Hindustan

Shipyard colony. Along with residential development this zone experiences existence of

Industries as ISPRL, South Asian Liquid Petroleum Gas Company, HPCL and also has the

offshore terminal tank terminal of VPT. Zone 3 has a proper connectivity of road within the

boundary and to the city as well.

As per observation it can be concluded that this zone is a mixed development of residential and

industrial and small scale retail units exist to support the residential development prevailing in

the zone.


During the inspection it was noticed that Zone-3 exists in a surrounding of largely developed

residential units such as Gudiwada Apana colony in Malkapuram which is nearly 1.5 km from

zone-3 and residential development in Sri Hari Puram, apart from residential development this

zone lies in a vicinity of planned industrial units such as HPCL, along with Eastern Naval

Command Headquarters which is the major landmark near the zone Few major landmark in

terms of hospitals such as ESI hospital and Kalyani hospital are present at a distance of 2km

from the zone. Availability of transportation in terms of bus and autos are present in this zone.

The distance from Airport to this zone is approximately 12 km and railway station is 8 km

respectively.

Market Research

The ready-Reckoner rates of land for residential purpose in Malkapuram village is Rs.10,000/-

per sq. yd. for residential land for stamp-duty purposes effective from 01/08/2017 published by

government of State of Andhra Pradesh.



Location

IGR Values in

Rs per Sq. Yd.


Joint Collector




escalation from 2013 till 2018

R C R C I R C I

Yaradav,

Malkapuram 10,000 NA 10,000 NA NA 2,760 NA 2,098


41| Page

V–1015-18

Value Working:



Residential


A Sea facing view can be on demand 5%


C Extent of land parcel -30%






Industrial


A Unsuitable for industrial due to existing residential development

(opportunity cost of land) -25%

B High Infrastructure cost due to the hilly terrain of Land -30%

C Total Adjustment (A+B) -55%

D Base Rate per sq. yd. 4,748

E Total adjustment(C*D) -2,611

Adjusted land Rate for Subject Property (Rs. per sq. yd) (D-E) 2,137

.


42| Page

V–1015-18

Photographs-Zone 3:


43| Page

V–1015-18

5.3.5 ZONE-4


ZONE-4

ZONE-4


44| Page

V–1015-18

Observation:

Zone 4 lies in the centre of the city and also is the zone having maximum land parcel out of 12

zones, it totally admeasures 2,498 acres and is spread across 6 different villages which lies in 2

different mandals, where Gullalapalem, Malkapuram, Kapparada are the villages which comes

under VSP urban mandal and Mulagada, Mindi and Akkiredipalem are the villages under

Gajuwaka mandal.

As per observation it was witnessed that this zone experiences the maximum development in

terms of industries. And it lies in a developed region of the city with residential and retail

development in a radius of 3 to 4 km.

Mentioned below is the existing development in the zone direction wise:

a) To the north western part of this zone land is leased to Indian potash limited, A.P State

warehousing corporation, Krishak Bharati Cooperative Limited(KRIBHCO), Continental

Warehousing Corporation ( Nhava Seva) limited and Rain CII carbon (Vizag) limited. And

these company use the land for purpose of warehousing and godowns. This part of Zone 4

has proper connectivity in terms of road network where the service road adjacent to the

warehouses and godowns connects to NH 5 through Port road.

b) Across port road which runs through Zone 4 to the nearest south, in this part of zone land

is leased to Balmer Lawrie company which is approx. 52.025 acres as per the general plan

map share by client. Also in this part of the zone there is godown of Sravan Shipping

Company.

c) Towards east of Port road and East India petroleum road junction land is leased for

purpose of warehouses to Mahamaruti Pvt Ltd, LMJ International Limited, Belmont. Further

east towards EIP road around 50 acres of land( as per general plan map shared by client)

is leased to East India Petroleum, and also adjacent to M/S EIP, presence of mangrove

area can be seen.

d) In the central region of this zone lies Hindustan Petroleum Corporation Limited,

Coromandel International Limited, Andhra Pradesh Petro Chemicals Limited, which are the

major lessee of the zone and have tenanted nearly 50% of total area under Zone-4, apart

from major lessee VCTPL (Visakha Container Terminal Pvt Ltd) for purpose of Container

Freight Station, Bharat Petroleum Corporation Ltd. Srivalli Shipping for CFS have leased

land from VPT.

e) To the south of Zone 4, along Gajuwaka-Scindia road, land is majorly leased to HPCl for

refinery, fertilizers berth and oil warfs, along with HPCL, approx. 45 acres of land is leased

to Indian Oil Corporation, adjacent to the inner channel 110 acres approx. land is leased

to Hindustan Shipyard Limited in Zone 4.


45| Page

V–1015-18

f) Apart from Industries this zone has some residential development in terms of HPCL

quarters and Indian Coast Guard quarters, Mahalaxmi talkies, Malkapuram Police station,

BSNL office and ESI Hospital are the major landmarks situated in this zone.


During inspection it was clearly witnessed that this zone majorly has industrial development and

lies in a developed region of the city with the nearest development in terms of residential and

retail units are in localities such as Mindi, Gajuwaka, Ram Nagar, Sri Haripuram and Sri Nagar

which is nearly 2 km away from Zone-4. With availability of schools, hospitals, recreational

centres such as malls and small retails makes the surrounding is most suitable for habitats

residing in the surrounding areas of Zone 4. Few major landmark in terms of hospitals such as

ESI hospital and Kalyani hospital are present. Availability of transportation in terms of bus and

autos are present in this zone.

Market Research

During market research as per our interaction in the Sub Register Office of Gajuwaka we

attained market value certificate that mentions the guideline value for villages under Gajuwaka

Sub register for various survey numbers and there details as tabulated below:

SRO Value for Commercial

Sr. No. Survey No Village Rate (Rs. /Sq. yd.)

1 18/4 Mindi 23,000

2 18/4 Akkireddipalem 23,000

3 145/10 Malakapuram 20,000

4 143/10 Gullalapalem 20,000

SRO Value-Residential

Sr. No. Survey No Village Rate (Rs. /Sq. yd.)

1 145/10 Malakapuram 10,000

2 143/10 Gullalapalem 13,000

3 18/4 Akkiredipalem 14,000

4 296/6 Mulagada 20,000

5 269/6 Mindi 10,000

Whereas the ready-Reckoner rates of land for residential land in different villages in Gajuwaka

and VSP urban mandal for stamp-duty purposes effective from 01/08/2017 published by

government of State of Andhra Pradesh is mentioned as overleaf.


46| Page

V–1015-18

Ready Reckoner Value

Sr. No Village Rate (Rs./ Sq. yd.)

1 Coromandel Main Road, Gullapalem 15,000

2 Malkapuram 10,000

3 Kapparada 31,000

4 Mulagada 20,000

5 Mindi 12,000

6 Akkiredipalem 14,000



Location

IGR Values in Rs per

Sq.Yd

Market Value in Rs per

Sq.yd set by Joint

Collector Visakhapatnam

for VPT

Schedule of Rates(VPT) in

Rs per Sq.Yd after 2% YOY


2018

R C R C I R C I

Coromandel Main

Road, Gullapalem 15,000 20,000

10,000 20,000 NA 5,410 8,391 2,595

Malkapuram 10,000 20,000

Kapparada 31,000 NA

Mulagada 20,000 NA

Mindi 12,000 23,000

Akkiredipalem 14,000 23,000

Value Working:


factors have been considered to which suitable premium / discount have been assigned


47| Page

V–1015-18

Residential




C Well-developed social infrastructure 20%

D Good connectivity to other parts of the city 10%

E Existing FAR on VPT land(1.00) -20%

F Total Adjustment (A+B+C+D+E) -45%

G Base Rate per sq. yd. 10,000

H Total adjustment(F*G) -4,500

Adjusted land Rate for Subject Property (Rs. per sq. yd) (G-H) 5,500

Commercial


A Extent of land is very large -30%


C Presence of marshy land at north eastern region of zone -5%


E Well-developed social infrastructure 10%

F Good connectivity to other parts of the city 10%

G Total Adjustment (A+B+C+D+E+F) -60%

H Base Rate per sq. yd. 21,500

I Total adjustment(G*H) -12,900

Adjusted land Rate for Subject Property (Rs. per sq. yd) (H-I) 8,600

Industrial


A Basic infrastructure is available and suitable for industries 5%

B Total Adjustment (A) 5%


D Total adjustment(B*C) 126



48| Page

V–1015-18

Hence for purpose of establishing fare rates for zone 4, for industrial land and after observing

the development potential, connectivity and location of these zones as well as stiff competition

from neighbouring ports it is proposed that 10% to 15 % premium on the Schedule of rates as

on 31-03-2018 for industrial land in the zones 4, can be considered reasonable.


Proposed value zone wise in Rs per Sq.yd

for 2018-2023

Schedule of Rates(VPT) in Rs per Sq.Yd after 2%


R C I R C I

5,500 8,600 2,984* 5,410 8,391 2,595


49| Page

V–1015-18

Photographs-Zone 4


50| Page

V–1015-18

5.3.6 ZONE-5


ZONE-5

ZONE-5


51| Page

V–1015-18

Observation:

Zone 5 similar to Zone 4 lies in the centre of city and the nearest zone to Visakhapatnam

International airport and this zone also share its boundary with Meghadari Channel which

divides Zone 4 and Zone 5 and shares boundary with INS Dega This zone totally admeasures

746.67 acres and is spread across 3 different villages which are Buchiraju Palem and

Kapparada which comes under VSP urban mandal and Mindi which comes under Gajuwaka

mandal.

As per observation the land in zone 5 is leased to HPCL Petro Park, Vizag Sea Port Limited and

Rain Calcining Limited. Along with industries, there is a 10 MW Solar plant of VPT situated in

this zone for purpose of electricity supply to VPT.

Also it was noticed that in this zone major portion of land near to airport is vacant, and the

vacant land is not levelled and also is present below the Port road level which runs adjacent to

the vacant land connecting to the city.


As per inspection, as this zone is the nearest to International airport and due to the restrictive

covenant of height major development in terms of residential and commercial is very less. The

nearest real estate development in terms of residential and retail can be seen in Durgapuram

locality and Ashoka Park colony which is at a distance of 1.5 km and lies to the north of Zone

5. Also at a distance of 3 to 4 km lies Mindi, Akkiredipalem and Gopalapatnam rural and in

these region major residential and retail units can be seen and these region lies to the south

west of Zone 5. Availability of public transport is very scarce though there exist better

connectivity of road which connects to different part of the city.

Market Research:

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq. yd.


Location


Sq. Yd.

Market Value in Rs per Sq.

yd. set by Joint Collector



per Sq. Yd. after 2% YOY


2018

R C R C I R C I

Mindi 12,000 NA

10,000 20,000 NA 5,189 13,139 2,628 Kapparada 31,000 50,000

Buchirajupalem 25,000 50,000


52| Page

V–1015-18

Value Working:



Residential




C Height restrictions due to proximity to airport and development

restrictions due to mangroves and meghadri channel -5%

D Good connectivity in the area 5%

E Existing FAR VPT Land (1.00) -20%



H Total adjustment (F*G) -16,688


Commercial


A Height restrictions due to proximity to airport and development


B Large extent of land -30%


D Existing FAR VPT Land (1.00) -20%

E Good connectivity due to nearer to highway 10%






53| Page

V–1015-18

Industrial

FACTORS Premium /

Discount

A Developmental and environmental constraints due to proximity to

meghadri channel and mangroves -5%

B Good connectivity due to proximity to highway and airport 15%

C Total Adjustment (A+B) 10%


F Total adjustment (C*D) 252

Adjusted land Rate for Subject Property (Rs. per sq. yd.) (D-F) 2,773







yd. for 2018-23

Schedule of Rates(VPT) in Rs per Sq. Yd. after 2%


R C I R C I

6,450 21,375 3,022* 5,189 13,139 2,628


54| Page

V–1015-18

Photographs- Zone-5:


55| Page

V–1015-18

5.3.7 ZONE-6


ZONE-6

ZONE-6


56| Page

V–1015-18

Observation:

Zone 6 is present in the north western side of VPT and is located in the central region of

Visakhapatnam city. Zone 6 admeasures 816 acres and is present across 6 different villages

bearing the name Buchiraju Palem, Gopalpatnam, Pullam Botla Palem which is under VSP rural

mandal and Tungalam (Nathyyapalem), Venkatapathi Raju Peta and Akkiredipalem which

comes under Gajuwaka mandal.

During inspection it was noticed that in this zone major portion of land ie approx. 97.8 acres

along NH 6 and near to International airport is leased to Concor, the said leased land is

developed by Concor and is used as per its usage for stacking yard of containers and railway

tracks are there for transportation of goods and materials. Apart from Concor, few land portion

of this zone is leased to Gas authority of India and East India Gateway Ltd.

Major portion of land near to airport in this zone is vacant and is proposed for special

commercial use as per information of the client.


This zone experiences better connectivity in terms of road network with the city and lies in the

vicinity of 1 to 2 km to developed area such as Sheela Nagar, Kakani Nagar and

Yellapuvanipalem. Development of residential, commercial and retail units can be seen near to

Zone 6. Ayyapa Temple, STBL complex, Icon krishi hospital are few major landmarks near to

the zone.

Availability of public transport, schools and recreation centres are there near to this zone.

Market Research:



Location

IGR Values in Rs

per Sq.Yd


Sq.yd set by Joint

Collector Visakhapatnam

for VPT


per Sq. Yd. after 2% YOY


2018

R C R C I R C I

Buchirajupalem NA 50,000

15,000 NA NA 6,293 20,536 3,147

Gopalpatnam 25,000 45,000

Akkiredipalem 14,000 NA

Tungalam 10,000 NA

Venkatapathi Raju 8,000 NA


57| Page

V–1015-18

Peta

Pullam Botla

Palem 4,000 NA

Value Working:



Residential


A Availability of social support 10%

B Large extent of land parcel -30%



E Good connectivity due to highway 10%





Commercial




C Location is very near to highway and airport 10%


E Presence of social support and basic infrastructure 10%



G Total adjustment (E*F) -26,125

Adjusted land Rate for Subject Property (Rs. per sq. yd) (F-G 21,375


58| Page

V–1015-18

Industrial


A Undeveloped land -15%

B Height restrictions due to proximity to airport and development




E Total adjustment (C*D) -1,424








yd. for 2018-23

Schedule of Rates(VPT) in Rs per Sq. yd. after 2%


R C I R C I

6,450 21,375 3,619* 6,293 20,536 3,147


59| Page

V–1015-18

Photographs-Zone-6


60| Page

V–1015-18


61| Page

V–1015-18

5.3.8 ZONE-7

Latitude: 17.737289, Longitude 83.238481

ZONE-7

ZONE-7


62| Page

V–1015-18

Observation:

Having an area of total 30 acres. Zone 7 lies in Maripalem village of VSP urban mandal and

Buchiraju palem village of VSP urban mandal. During inspection it was noticed that the land in

Zone 7 is primarily vacant and is also undeveloped, level of land is also low to the level of road

nearby. There is no proper access to this zone and is facing land locked issues.


Zone 7 lies in a developed area of the city and is very near to airport and adjacent to NH 16

(Vizag Srikakulam Highway). Nearest development in terms of residential is in Kakani Nagar,

NAD colony and Gowri Nagar. Availability of retail units and commercial units is there in the

vicinity of 1 to 2 km of Zone-7, Maripalem railway yard, Kendriya Vidyalaya NAD colony and

NAD post office are the few major landmark near to the zone. Availability of public transport is

present near to zone.

Market Research:



Location


Sq.Yd


Sq.yd set by Joint Collector





2018

R C R C I R C I

Buchirajupalem NA 50,000 8,000 8,000 NA 4,527 13,139 2,871

Marripalem 31,000 42,000

Value Working:




63| Page

V–1015-18

Residential


A Limits of VPT and leasehold land -25%

B Existing FAR on VPT land (1.00) -20%

C Land locked(Access) -20%

D Surrounding development -20%





Commercial


A Lack of proper access( Land Locked) -20%


C Existing FAR of VPT land (1.00) -20%

D Surrounding development -5%



G Total adjustment (F*E) -32,200


Industrial


A Lack of proper access( land locked) -20%

B Development restrictions due to proximity to defence land and

airport -5%

C Undeveloped land -10%

D Total Adjustment (A+B+C) -35%


F Total adjustment (D*E) -1,662

Adjusted land Rate for Subject Property (Rs. per sq. yd) (E-F) 3,086


64| Page

V–1015-18

Photographs-Zone-7


65| Page

V–1015-18

5.3.9 ZONE-8


ZONE-8

ZONE-8


66| Page

V–1015-18

Observation:

Situated in the north of VPT in a developed area of the city, Zone 8 totally admeasures 251.47

acres. It is spread across 4 different villages bearing name Allipuram extension ward,

Dondaparthi ward, and Kancharapalem (ward) all these villages comes under VSP urban

mandal and Adivaviram comes under VSP rural mandal.

During inspection it was witness that this zone basically has following list of development:

a) Residential buildings such as VPT Employee quarters, CISF staff quarters, NMDD staff

quarters.

b) Government Buildings such as post office, BSNL wireless station.

c) VPT School, VPT Community hall, Port trust Diamond Jubilee stadium, Golden Jubilee

hospital.

As noticed in Doctors colony present in this zone which is currently in the process of demolition

and as per information of client it is proposed for reconstruction of new residential buildings.

Also as per the information of client public road running through zone 8 is leased to GVMC for

51 years which serves this zone in terms of connectivity. Zone-8 has 23 acres of land in hill

which is vacant and undeveloped.


Kailashpuram, Akkayepalem , Seethamadhara are the nearest locality to Zone 8 and all these

areas experiences proper development of mixed class locality in terms of residential and retail.

Recreational centres, hospitals, schools and daily market are is very close proximity to Zone-8,

Availability of public transport is there in this zone. Distance from zone-8 to Visakhapatnam

International Airport and Railway station is 11 km and 4 km respectively.

Market Research:




67| Page

V–1015-18

Location


Sq. Yd.

Rates as per

market research

in Rs per Sq. yd.

Market Value in Rs

per Sq. yd. set by

Joint Collector

Visakhapatnam for

VPT

Schedule of Rates(VPT)

in Rs per Sq. Yd. after

2% escalation YOY

from 2013 till 2018

R C R C R C I R C I

Alipuram

Extension ward 50,000 60,000

16,355 40,706 15,000 NA NA 22,082 33,122 NA

Dondaparthi

Ward 37,000 85,000

Adavivaram 30,000 NA

Kancharapalem

Ward 22,000 NA

Value Working:



Residential


A Fully developed residential area 15%

B Potential of land in terms of residential is high 15%


D Large extent of land -30%

E Availability of social infrastructure 10%

F Existing FAR for VPT land(1.00) -20%

G Total Adjustment (A+B+C+D+E) -35%

H Base Rate per sq. yd. 34,750

I Total adjustment (G*H) -12,163

Adjusted land Rate for Subject Property (Rs. per sq. yd) (H-I) 22,588


68| Page

V–1015-18

Commercial


A Developed land has potential for commercial use 10%

B Large extent of land -30%


D Availability of social infrastructure 15%

E Existing FAR for VPT land(1.00) -20%



H Total adjustment(F*G) -36,250


Industrial


A Location of land is in foothills so not suitable for industrial -20%

B Present usage is commercial and residential minimum

possibility of Industrial development -20%



E Total adjustment (C*D) -1,899



69| Page

V–1015-18

Photographs-Zone-8


70| Page

V–1015-18

5.3.10 ZONE-9

Latitude: 17°43'05.7 Longitude: 83°19'14.6

ZONE-9

ZONE-9


71| Page

V–1015-18

Observation:

Located in the north eastern part of the city and near to RK beach, zone 9 is in high class

residential locality with high end retail to support the residential development. Zone-9 is 32.04

acres and situated in Harbour Park and Maharani Peta ward of VSP urban mandal.

As per our observation it was witnessed that the harbour park area in this zone is majorly used

for residential purpose such as bungalows and quarters for port authorities. The entire

residential development supported with recreational centres such as club houses, Children

Park. Shuttle Courts along with lawns and vegetation plantation area, this zone is completely

bounded by compound wall with three gates for entry and exit. Harbour Park is under

surveillance of CISF and has got security check post at different region within the zone. This

zone also has some portion of land left vacant for green belt. And towards south small portion

of the land is leased to Mercantile Marine Department.

Also it was witness that the area in Maharani Peta layout is used for residential purpose and

along with residential quarters for VPT officials, Office of the Assistant labour commissioner

(Central) is situated in this zone as well.


Situated in a posh locality of Pandurangapuram, Daspalla hills and in the nearest vicinity of

RK beach, the surrounding development of zone-9 is rich with high end retails, banks and

commercial units, also it was witness that high class residential development exists in a radius

of 4 to 5 km of Zone-9. Availability of public transport is present and also the connectivity in

terms of road network is of superior quality in the surrounding. Schools, hospitals and daily

markets are there in the vicinity of 1 to 2 kms of the zone. The distance between Zone-9 and

Visakhapatnam international airport and railway station is 12 km and 5 km respectively.

Market Research:

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per

sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018


72| Page

V–1015-18

Location

IGR Values in

Rs per Sq.Yd





per Sq.Yd after 2% escalation

YOY from 2013 till 2018

R C R C I R C I

Harbour Park,

Maharani Peta NA NA 40,000 47,000 NA 40,520 46,040 NA

Value Working:

In order to arrive at an appropriate land rate for the subject property, following influencing


Residential


A Premium location for residential 15%

B Well-developed social infrastructure with good connectivity to

other parts of the city 20%


D Occupiers profile 15%


F Total Adjustment (A+B+C+D+E) 5%


H Total adjustment (F*G) 2,000



73| Page

V–1015-18

Commercial




C Well-developed social infrastructure with good connectivity to other

parts of the city 15%

D Premium location 20%


F Total Adjustment (A+B+C+D+E) 5%


H Total adjustment (F*G) 2,350


Industrial


A Present usage is commercial and residential minimum

possibility of Industrial development -30%

B Total Adjustment (A) -30%


D Total adjustment (B*C) -1,424



74| Page

V–1015-18

VUDA PARK AREA

Situated off Beach road and adjacent to VUDA park, Visakhapatnam, this area forms a part of

zone-9 and is nearly 0.78 acres .It is presently vacant and compounded by wall in three side

and faces sea at one side. During inspection it was noticed that the land is levelled and as per

information by the representative of the client land was previously used for purpose of light

house. It is adjacent to Hotel Park and Vuda Park.


Situated in a posh locality of Pandurangapuram, Daspalla hills and in the nearest vicinity of

RK beach, the surrounding development of zone-9 is rich with high end retails, banks and

commercial units, also it was witness that high class residential development exists in a radius

of 4 to 5 km of Zone-9. Availability of public transport is present and also the connectivity in

terms of road network is of superior quality in the surrounding. Schools, hospitals and daily

markets are there in the vicinity of 1 to 2 kms of the zone. The distance between Zone-9 and

Visakhapatnam international airport and railway station is 12 km and 5 km respectively.

Value Working:

In order to arrive at an appropriate land rate for the subject property considering the

proposed value for zone-9 as a base rate and following influencing factors have been

considered to which suitable premium / discount have been assigned.

Residential


A Premium location for residential 20%

B Well-developed social infrastructure with good connectivity to



D Sea view 10%

E Total Adjustment (A+B+C+D+D) 20%


G Total adjustment (E*F) 8,000



75| Page

V–1015-18

Commercial




C Well-developed social infrastructure with good connectivity to


D Premium location 10%

E Total Adjustment (A+B+C+D) 20%


G Total adjustment (E*F) 9,400


Industrial


A Usage can be commercial and residential minimum possibility

of Industrial development -30%

B Total Adjustment (A+B) -30%


D Total adjustment (B*C) -1,424



76| Page

V–1015-18

Photographs-Zone-9


77| Page

V–1015-18

Photographs-Zone-9(VUDA PARK)


78| Page

V–1015-18

5.3.11 Zone-10

Latitude: 17°919462 Longitude: 83°4427

Observation:

Situated off road NH16 connecting Chennai to Kolkata and nearly at a distance of 4km from

National highway, Zone 10 lies in the village Mulakuddu of Bhimunipatnam mandal and

totally admeasures 228.12 acres. Zone 10 is located near river bed of Gostani river and

adjacent to 15 ft road which connects NH 16 and Bheemunipatnam which is nearly 2km from

the subject property.

As per our observation the subject land is undeveloped, vacant and majorly around 60 % of

land parcel is in river bed , and due to nearest vicinity to sea and also due to river passing

through the zone, this zone has water logging issues and major portion of land is marshy.

High tension wire passes through this zone and level of land is 3 to 4 metre below ground

level. Towards south of the zone some portion of land is encroached and construction of

temple was noticed.


79| Page

V–1015-18


Zone 10 is approximately 40 km away from Visakhapatnam. Thangapura Valsa GVC and

Bheemunipatnam are the nearest developed places to zone 10 which are a distance of 3 to 4

km from subject property. During inspection few plotted development layouts were seen near

to the subject property. At a radius of 1 km major development in terms of residential or

commercial is very scare. Availabilty of schools, colleges, hospitals, recreational centres such

as malls, shopping complexes and basic infrastructure is lacking in this zone.

Market Research

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per sq.

yd. by Joint collector Visakhapatnam and Schedule of Rates for 2018.

Location

IGR Values in Rs

per Sq. Yd.

Market Value in Rs per Sq.

yd. set by Joint Collector


Schedule of Rates(VPT) in

Rs per Sq.Yd after 2%

YOY escalation from

2013 till 2018

R C R C I R C I

Bheemunipatnam 35,00 NA 1,300 NA NA 1,435 NA NA

Value Working:



Residential


A Escalation of 2% on SOR 2018 2%

B Total Adjustment (A+B+C+D) 2%


D Total adjustment (B*C) 29



80| Page

V–1015-18

Industrial


A Undeveloped Raw land situated majorly in river bed and faces

water logging issues -15%

B Location of land is far from developed areas nearby -15%

C Large extent of land -25%

D Total Adjustment (A+B+C) -55%


F Total adjustment (D*E) -1,466

Adjusted land Rate for Subject Property (Rs. per sq. yd) (E-F) 1,199


81| Page

V–1015-18

Photographs: Zone-10


82| Page

V–1015-18

5.3.12 Zone-11

Latitude: 17.700392, Longtitude 83.059623

ZONE-11

ZONE-11


83| Page

V–1015-18

Observation: Zone 11 is spread across 5 different villages namely Lankelapalam, Peda mushridivada,

Mantripalem Kannuru and E-Marripalem and all these villages’ lies in Parawada mandal.

Zone 11 totally admeasures 306.86 acres. This zone lies off road NH 16 which connects

Chennai to Visakahapatnam

As per observation it was noticed that zone 11 is basically a hill having an elevation of around

1000 metres and the land is undeveloped and raw. High tension wire is running beside the

zone. The north end of the hill has some portion as illegal quarry. As per information by the

candidate of client, this land is obtained through exchanged with State government. There is

no proposal in place for the development of the zone.


Situated in an area where basic infrastructure such as schools, colleges, hospitals, shopping

complexes are lacking. Neighbourhood profile is low class in this zone and many EWS layout

could be seen in the locality, basic occupation of the inhabitants nearby seemed to be farming

and agriculture. Nearby to the subject property Syam way pharmacity colony is present. At a

distance of 8 km from the subject property few major landmarks such as Visakhapatnam SEZ

and Vignan institute of technology are situated and JN Pharma city is nearly 6 km from the

property. The distance between Visakhapatnam city and the subject property is approx. 20 km.

Market Research

Tabulated below are the details of rates as per IGR value/ ready reckoner rates, Rate per

sq.yd by Joint collector Visakhapatnam and Schedule of Rates for 2018

Location

IGR Values in Rs

per Sq.Yd




Schedule of Rates(VPT)

in Rs per Sq.Yd after 2%

YOY escalation from

2013 till 2018

R C R C I R C I

Lankelapalem 5,500 NA

1,700 NA NA 1,700 NA NA

E-Marripalem 2,000 NA

Peda

mushidivada 2,400 NA

Manthripalem 2,500 NA

Kannuru 1,300 NA


84| Page

V–1015-18

Value Working



Residential


A Escalation of 2% on SOR 2018 2%

B Total Adjustment (A+B+C+D+E) 2%


D Total adjustment (B*C) 38


Industrial


A Extent of land -25%

B Land is undeveloped, raw and in hilly terrain and development

cost will be high to establish industry -25%



E Total adjustment(C*D) -803

Adjusted land Rate for Subject Property (Rs. per sq. yd) (D-E) 803

.


85| Page

V–1015-18

Photographs- Zone-11


86| Page

V–1015-18

6. SUMMARY

A detailed summary of the Market Value for land for residential, commercial and industrial under each of the 12 zones of VPT is as tabulated overleaf

alongwith a comparison to the Schedule of Rates considering the escalation from 2013 to 2018 for each of the zones of VPT.

Zone Location

Area

in

acres


per Sq. Yd. for year 2013

Schedule of Rates (VPT) in Rs per Sq. Yd. after

2% YOY escalation from 2013 till 2018


yd. for 2018-23

R C I R C I R C I

1A Core- Operational area 1370 5,600 10,900 3,520 6,183 12,034 3,886 6,600 12,250 4,236

1B Near Convent Junction 185 7,500 15,000 7,500 8,281 16,561 8,281 8,800 18,000 8,546

2 Fishing Harbour 152 6,800 9,000 4,000 7,508 9,937 4,416 7,700 10,500 4,511

3 Hilly Area 924 2,500 NA 1,900 2,760 NA 2,098 3,000 NA 2,137

4 Industrial area 2498 4,900 7,600 2,350 5,410 8,391 2,595 5,500 8,600 2,984

5 Near Airport area 747 4,700 11,900 2,380 5,189 13,139 2,628 5,563 15,000 3,022

6 Near National Highway 5 816 5,700 18,600 2,850 6,293 20,536 3,147 6,450 21,375 3,619

7 Near Marripalem railway yard

away from highway 30 4,100 11,900 2,600 4,527 13,139 2,871 4,650 13,800 3,086

8 Salgramapuram area 269 20,000 30,000 NA 22,082 33,122 NA 22,588 36,250 2,849

9 Harbour park area 32 36,700 41,700 NA 40,520 46,040 NA 42,000 49,350 3,324

10 Bheemuni patnam area 288 1,300 NA NA 1,435 NA NA 1,464 NA 1,199

11 Lankelapalam area 307 1,700 NA NA 1,877 NA NA 1,915 NA 803


88| Page

V–1015-18

ANNEXURE A – ASSUMPTIONS AND LIMITING CONDITIONS

1. Assumptions are made to the best of our knowledge and belief. Reliance is based on the

information furnished to us by the identifier and the client.

2. The property is valued on the assumption that it is free and clear of all mortgages

encumbrances and other outstanding premiums and charges.

3. No legal verification of the title of the property has been undertaken and the valuer shall not

be responsible for any matter of legal nature that affects the value and the opinion

expressed by us.

4. Where it is stated that the client has supplied information to the valuer, this information is

believed to be reliable, but the valuer can accept no responsibility if this should prove not to

be so. Where information is given without being attributed directly to another party, this

information has been obtained from our market research.

5. In no event shall the valuer be held responsible or liable for special, direct, indirect or

consequential damages as the assignment has been completed on best efforts, available

knowledge and in good intentions of persons concerned and belief.

6. If our appearance is required, we will be pleased to appear and give the necessary

clarifications, provided the fees for each appearance (including out of pocket expenses) are

pre-determined.

7. The report is for the sole use to the client, it has been addressed to; neither the whole nor any

part of this valuation report and any reference there to may be utilized without the prior

written approval of M/s. Kanti Karamsey & Co.

8. The valuer’s responsibility in connection with this valuation report is limited to the client to

whom it is addressed and to that client only. The valuer disclaims all responsibility and will

accept no liability to any other party.

9. Validity of this report is as on date of valuation report only.

v-1015-18, final report, land of visakhapatnam port … valuer report on land valuation of... ·...

Documents