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President Trump and Energy Secretary Chris Wright are working hard to keep coal alive as part of a robust grid. View More
Coal could come back. That was my insight, or more, my instinct, after interviewing Kenny Young, the CEO and seven-year veteran of Babcock & Wilcox , the 160-year-old boiler manufacturer turned engineering and construction company. Young wanted to talk about the surging demand for power spurred by the data center boom. So did I. B & W has a $2.7 billion backlog, $2.4 billion of which is a deal with Base Electron, backed by Applied Digital , a company purpose-built to design digital infrastructure for high-performance computing. I want to write about this "Mad Money" encounter for a few reasons. First, to show you that the data center story is so much bigger than we imagine. Our thinking is constrained by a particular negative bias that says it all has to end, like the dot-com crash of the early aughts. That bias has kept people from making easy money, like the money you would have made by buying Babcock & Wilcox stock, which is up 244% this year alone. This $21 stock traded below $1 one year ago. Second, I am no groundbreaker here: obviously, I'm late to the party. But that has somehow meant nothing to so many of these companies â witness Micron , Intel , Sandisk â that I must acknowledge my timing. Some of you might consider it late, late, late, as I wrote about last week . Others argue, 'So what, it's the data center.'" Third, I want to point out that the power demands are so great that the once-forsaken energy source of coal is going to come back in a big way if the utilities don't stop President Donald Trump and the Department of Energy from forcing coal-based or coal-using companies to continue using it. The dirty fuel â at least relatively if not absolutely â accounted for 50% of U.S. power in 2007 and is now down to 15-17% of the grid's energy source. Even though it is down 40% from 2010, it still powers 173-190 gigawatts (GW). We may need 90-100 GWs of new energy if the data center buildout continues at this pace, so the idea of reviving coal, or at least not letting coal plants close, is hardly fanciful. I write that because while the environmental toll of coal has been obvious for generations, the president regards coal as a major resource and domestic national security weapon. Which brings me back to Babcock & Wilcox. Last Friday, B & W placed an offering of 10.8 million shares at $18.50, mostly to shore up its balance sheet and prepare for a major expansion. The stock had gone out at $21.22 the day before and finished trading at $21.85. So you could call the deal wildly successful, even as it was handled by B. Riley, a brokerage house under investigation by the Securities and Exchange Commission. I am disclosing this relationship because Wolfpack Research, a short-selling firm, has cited it as a negative for Applied Digital and, by extension, for B & W. What's considered wrong here? Mainly, Wes Cummings, CEO of Applied Digital, also served as the president of B. Riley Asset Management until February 2024. Short sellers have claimed that the $2.4 billion contract with Applied-backed Base Electron was used to pump up B & W's stock. B. Riley holds a substantial stake in B & W, so the increase in backlog was meaningful. I don't think it could have done that secondary all the way up here without it. I go into all of this not to discredit B & W, because it clearly has the technology needed to build plants, but because I don't want anyone to think that B & W has huge multiple-power contracts. The company would most likely not have raised the money so easily without the Base Electron contract, and we have no real assurance that Applied Digital will go through with its plans. Like many companies in this arena, Applied Digital loses significant money. So does B & W. Applied Digital was worth $1.5 billion a year ago. It is now worth $12 billion. Late, late, late. Importantly, 32% of Applied Digital's outstanding shares are sold short. That could be the usual skepticism and bias against so many of these data center "stories." Or it might be the tenuous relationship with the tarnished B. Riley. Applied Digital has a relationship with CoreWeave , which accounts for the bulk of Applied Digital's $16 billion backlog. It has another 15-year lease with an unnamed hyperscaler. That's enough to make Applied Digital "real" and therefore validate B & W's stock price increase. Another positive for B & W: it has its own proprietary capability for building natural gas power plants. Right now, GE Vernova , which the trust owns, is the principal builder of natural gas-fired plants. But GE Vernova has made a point of telling me that it is sold out near term and can't add more plants than it has now. In fact, that's the principal rap against GE Vernova. It's out of capacity. That makes B & W a good secondary call on natural gas plants, and the company assured me that it is not limited and has the capacity to build more. That could be a terrific part of the B & W story. Remember, however, that I am not a groundbreaker. All that I have told you is known to both B & W aficionados and vocal short sellers. So, if you buy B & W stock, you have to do so knowing about the controversy surrounding the company, despite its ties to the totally legit but heavily indebted CoreWeave. Perhaps, given the secondary and the B. Riley overhang, the easy money has been made here. But perhaps for another reason â coal â it hasn't. Which is what got me most excited about this story: B & W's exposure to coal. While this giant Base Electron-Applied Digital contract for 1.2 gigawatts is right in the wheelhouse of the natural-gas-powering data center story, B & W is basically a coal play. B & W has a hand in building and maintaining coal plants worldwide. It's the best at what it does. Except that what it does is being phased out worldwide, especially here, where the country â including electric utilities themselves â has tried mightily to wean itself off coal. Until 2025, when President Trump came to office. Trump's a huge believer in coal. A year ago, he signed an executive order called "Reinvigorating America's Beautiful Clean Coal Industry." For one moment, forget the Orwellian nature of the order, No. 14241, and accept that we have a lot of coal plants that would otherwise be closing after several decades of executive orders and agency prosecutions against coal because of the inherent pollution it causes. It is true, though, that these plants are vital to the baseload of many utilities around the country. They are also integral to providing back-up power to the 26% of our grid that is powered by renewables. Because it is not always windy or sunny, coal is very important to these utilities. Utilities built a large number of coal plants as a result of the 1970s oil embargoes. President Jimmy Carter, stung by that generation's problems with the Gulf producers, hailed us as the Saudi Arabia of coal and pressured utilities to build coal plants, hence the 50% of the grid that was coal. But coal plants have a 40- year useful life. B & W's business includes building and servicing, but the former pretty much went out of style when the plants did, and the radical phase-out of coal as a power source crushed the company. But now the president and Energy Secretary Chris Wright are working hard to keep coal alive as part of a robust grid. Wright is using his executive authority to block the closing of coal plants. He has used his emergency power to stop the closure of coal plants in Michigan, Indiana, Colorado, and Washington. He cites demand from data centers as the chief reason. Plus, the president has repeatedly stated that he favors coal and is against renewables. He's slashed programs and loans needed to phase out coal. He's basically the anti-Biden on the issue. Coal is inefficient. It's dirty. It's thought to be the all-around worst form of energy in terms of any parameter, especially expense. But it's got powerful backing, including that of the National Coal Council, a federal advisory committee that is headed by Jim Grech, who also happens to be the CEO of Peabody Energy , the largest coal company in the U.S. Convenient. The National Coal Council, which had been abolished under President Joe Biden, advances coal's interests as a national security issue to power the data center revolution. And it obviously furthers the interests of Peabody Energy, Core Natural Resources , and Alliance Resource Partners . If Wright succeeds, I like all three of these. Why am I somewhat circumspect? Because there are court challenges to Wright's efforts. But if Wright is successful, these are all buys. Moreover, Core Natural has an export terminal in Baltimore that could ship coal to other countries hit by soaring natural gas prices. All three have things going for them. Obviously, Peabody, with the CEO serving as the head of the National Coal Council, can be a huge winner. Unlike most even peripheral data center ideas, it's down 20% for the year and is very cheap, seven times next year's earnings. Core Natural has been relatively flat and trades at 11 times next year's earnings. Alliance is up 8% for the year, but has a dividend yield of 9.5%. Not Late. Maybe even early. Now it takes a huge pill to swallow to back coal. Maybe you would rather get behind Altria or Phillip Morris International , although both have had monster moves. I went to hear a presentation from Phillip Morris, and it was a radically anti-traditional tobacco, as befitting a company that makes smoke-free products. But I digress. If you are thinking about buying a coal stock, you have to believe that coal plants will survive, that President Trump will finish his term, and Vice President JD Vance runs and wins. Maybe twice. That's because the utilities are so against coal. They have always been sensitive to sinking any more money into coal because they fear a Democrat president will thwart their plans. Remember, B & W traded at a dollar because it was pretty unthinkable that the president would be so pro-coal. But the data center, as a national security story, has resonance, so coal has relevance. Now, I want to go back to first principles. The data center story has tentacles far and wide. It has implications for many industries because the utility business is gigantic, with virtually unlimited capital and a desire to expand; more ratepayers mean more money. These are publicly traded entities that thrive on growth, which is why they are incredibly strong. They have come down a lot because of the rise in interest rates, but if you want to think they can turn, then choose Sempra , Southern , or American Electric Power . I come back to the data center story again and again because there are so many variables and so many ways to make money. Coal and natural gas keep emerging as avenues to prosperity. So do Eaton , GE Vernova, Vertiv , and Caterpillar . (Late, late, late?) Maybe B & W fits your speculative parameters. Maybe you want a more assured 9.5% yield of Alliance Resources. Or maybe you just want the potentially newfound growth and inexpensive stocks of Peabody and Core Natural. Or perhaps you just stick with Nvidia and own it through this week's earnings instead of trading it. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
The president has previously threatened to strike civilian infrastructure in Iran, a potential war crime. View More
In this article@LCO.1Follow your favorite stocksCREATE FREE ACCOUNT U.S. President Donald Trump speaks to the media aboard Air Force One on May 15, 2026 as he returns to the United States. Alex Wong | Getty Images President Donald Trump on Sunday threatened Iran to "get moving," or seemingly face new consequences."For Iran, the Clock is Ticking, and they better get moving, FAST, or there won't be anything left of them," Trump said in a Truth Social post. "TIME IS OF THE ESSENCE!"Trump did not detail what exactly the consequences would be, nor what he expects Iran to do in order to avoid them. Read more CNBC politics coverageGas tax holiday as Trump promises? Not so fast, trucking, construction industries sayTrump doesn't need Congress to restart Iran strikes: HegsethAnalysis: Iran war hangs over Trump's China trip â and his presidencyCongress members push Chinese auto parts ban before Trump China trip The U.S. and Iran have been at loggerheads in negotiations to end the war since a tenuous ceasefire was reached in early April. The U.S. continues to blockade Iranian ports, while Iran has closed the Strait of Hormuz since the beginning of the conflict. But the apparent threat is not the first time Trump has menaced Tehran in stark terms on social media. Prior to the April ceasefire, he warned that a "whole civilization will die tonight, never to be brought back again," unless Iran capitulated to U.S. demands. He had previously threatened to strike civilian infrastructure, including Iran's power plants and bridges, which could constitute a war crime. The closure of the strait, a critical channel for oil, has wreaked havoc on the economy, sending oil prices soaring globally and spiking gasoline prices in the U.S. The national average price for gasoline in the U.S. was $4.51 per gallon on Sunday, according to AAA. The U.S. is demanding that Iran abandon its nuclear program and reopen the Strait of Hormuz. Iran is demanding reparations for the war's damage, an end to the blockade and an immediate end to the fighting, including in Lebanon. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Among the emerging corridors, the Kanakapura Road–Harohalli belt has witnessed the sharpest movement so far, aided by stronger residential infrastructure, metro connectivity and proximity to established catchments View More
Rising property taxes and surging homeowners insurance costs are pushing up the amount that homeowners must pay monthly alongside their mortgage. View More
Fly View Productions | E+ | Getty Images As many homebuyers discover, getting a fixed-rate mortgage doesn't necessarily mean your monthly payment will remain the same.For many homeowners, in addition to principal and interest payments each month, their mortgage payment includes amounts that go into an escrow account. That account then pays out homeowners insurance premiums and property taxes, as well as mortgage insurance if the borrower is required to carry it. This year, about 65% of escrow accounts are projected to be short because of recent jumps in those costs, according to Cotality, a property data and analytics firm. The estimated average shortage is $2,157.While it's not uncommon for escrow costs to be adjusted up or down each year, they have increased by roughly 45% since 2019, according to Cotality. In some states, it's been much higher: For example, homeowners in Florida and Colorado have seen jumps of 70% and 77%, respectively. Cumulative inflation from May 2019 to April 2025 was about 30%, based on the consumer price index. Read more CNBC personal finance coverageSocial Security 'break-even' claims get social media buzz â experts urge caution'Survivor's penalty' can affect retirees after a spouse dies. What to expectThis federal program trains older workers. The Trump administration wants to cut itTrump said $465,000 in retirement savings is 'rich.' Is it?CNBC's Financial Advisor 100: Best financial advisors, top firms ranked Homebuyers "should expect those costs to rise," said Selma Hepp, chief economist for Cotality. "But oftentimes [consumers] think of a 30-year fixed-rate mortgage and think of it as housing costs being fixed." Why your payments can go up About 80% of mortgage borrowers have an escrow account, according to Lereta, which provides real estate tax and flood data to mortgage servicers. Those without an escrow account pay insurance and taxes directly.When mortgage servicers do an annual review of your escrow account, they evaluate what has been paid out and project what will be due over the next year. If there's a shortfall, lenders generally spread out the extra cost across 12 months, pushing your monthly payment up. For example, the average 2026 shortfall of $2,157 would mean paying $179.75 more monthly. watch nowVIDEO0:3100:31Can you afford to buy a home?Personal Finance You may be given the option to pay off the shortage upfront as a lump sum, experts say."If you have enough in your emergency fund to cover the shortfall all at once, that will be the simplest way to put it behind you," said certified financial planner Stephen Kates, a financial analyst for Bankrate. "Paying over time can leave you layering shortage payments on top of the higher ongoing monthly payments created by the [yearly] updated escrow calculation," Kates said. Homeowners insurance costs have surged The amounts that go into escrow are a growing share of homeowners' payment, Hepp said."Over the last couple of years, we've seen surges in insurance and property taxes," Hepp said.The average annual cost of homeowners insurance is projected to reach $3,057 by the end of 2026, up 4% from $2,948 in 2025, according to Insurify.com, an insurance-comparison site. Driven by severe weather and natural disasters, the average cost of homeowners insurance has risen by 46% since 2021, the report shows.To address higher insurance premiums, you can shop for lower-cost coverage, compare deductibles or coverage limits and look for available discounts, Kates said. Property taxes have climbed alongside home values Property taxes also have climbed as home values have risen. The U.S. average yearly amount paid by homeowners was $3,018 in 2024, up 27.4% from 2019, according to Cotality. During that time, home prices jumped 51.6%, the Cotality data shows.While property taxes typically have been a larger share of escrow amounts, "in some areas insurance has grown much faster and is outpacing the overall amount that you have to put in escrow for property taxes," Hepp said.It may be possible to appeal a new property tax assessment, Kates said, although you should have strong evidence that the value is too high. "Do not appeal just because the bill feels expensive, and do not do it automatically every assessment cycle," he said.Additionally, you can check with your local government to see if there are exemptions or reductions available for certain homeowners, such as for those age 65 or older. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
The company on Sunday launched the ?1,100 crore Phase-I of its “IT Park and Integrated Tech City” project in the presence of Union Home Minister Amit Shah and Gujarat Chief Minister Bhupendra Patel View More
Targets 21% growth in FY27 sales bookings to ?10,000 crore on strong project pipeline and inventory sales View More
Four SME IPOs are set to open this week across food, construction and textile sectors, aiming to raise over Rs 138 cr. While mainboard activity remains subdued, offerings like Vegorama Punjabi Angithi highlight continued traction in niche business models and sustained investor interest in smaller public issues. View More
India's primary market activity is set to remain busy this week, with four SME public offers looking to raise more than Rs 138 crore through fresh issues and offer-for-sale components across sectors including food services, construction solutions, textiles and packaged foods. However, mainboard IPO activity remains muted. The IPOs scheduled to open next week include NFP Sampoorna Foods, Teamtech Formwork Solutions, Vegorama Punjabi Angithi and Harikanta Overseas. NFP Sampoorna Foods IPO NFP Sampoorna Foods IPO will open first on May 18 and close on May 20. The NSE SME issue aims to raise around Rs 24.53 crore entirely through a fresh issue of shares. The company has fixed the price band at Rs 52-55 per share. Investors can bid for a minimum of 4,000 shares, translating into an investment of Rs 2.2 lakh at the upper end of the price band. Incorporated in 2019, NFP Sampoorna Foods operates in the dry fruits processing and distribution business, with a primary focus on cashew nuts. The company imports raw cashew material mainly from African markets and supplies processed products in India. The company plans to utilise IPO proceeds for working capital requirements and general corporate purposes. Live Events Teamtech Formwork IPO Another issue opening on May 19 is Teamtech Formwork Solutions, which plans to raise Rs 50.15 crore through a fresh issue on the NSE SME platform. Teamtech Formwork Solutions manufactures, refurbishes and rents modular formwork systems used in the construction industry. Its products are used across infrastructure and real estate projects, including walls, shafts, tanks, bridges and foundations. The company operates a manufacturing and refurbishment facility in Telangana and provides engineering, technical support and rental solutions for construction projects. According to its financial disclosures, the company reported a 64% increase in revenue and a 48% rise in profit after tax in FY26. IPO proceeds will primarily be used for setting up a new manufacturing unit, repayment of borrowings and meeting working capital requirements. Vegorama Punjabi Angithi IPO On May 20, Vegorama Punjabi Angithi will open its Rs 38.38 crore IPO on the BSE SME platform. The issue consists of a fresh issue worth around Rs 30.7 crore along with an offer-for-sale component of Rs 7.68 crore. The company has fixed the price band at Rs 73-77 per share. Retail investors will need to apply for a minimum of 3,200 shares, requiring an investment of Rs 2.46 lakh at the upper price band. Vegorama Punjabi Angithi operates restaurant and cloud kitchen businesses under the “Punjabi Angithi” brand, focused primarily on North Indian and Punjabi cuisine. The company currently operates 19 cloud kitchens and two fine-dining restaurants across the Delhi-NCR region and serves customers through dine-in, takeaway and online delivery channels. The company plans to use IPO proceeds for expansion of banquet facilities, setting up a centralised kitchen, launching new cloud kitchens and upgrading existing infrastructure. Harikanta Overseas IPO The fourth IPO next week is Harikanta Overseas, which will also open on May 20 and close on May 22. The BSE SME issue aims to raise Rs 25.63 crore entirely through a fresh issue of shares. The company has fixed the price band at Rs 91-96 per share, with a minimum retail investment requirement of Rs 2.3 lakh. Harikanta Overseas manufactures synthetic textile fabrics, including saree fabrics, garment fabrics, poly linen and natural fibre products. The company operates a manufacturing facility in Surat and exports products to markets including Bahrain, Singapore and Thailand. IPO proceeds will be used for factory expansion, machinery purchases and working capital requirements. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) (You can now subscribe to our ETMarkets WhatsApp channel)
The Iran war is causing global economic disruption. Inflation is rising, impacting consumers and markets worldwide. The US sees its worst inflation in years, while Europe braces for interest rate hikes. View More
(Bloomberg) --The fallout from the war in Iran continued to ripple across the global economy , complicating the outlook and fueling inflation angst. In the US, a closely watched measure of consumer prices climbed at the fastest pace since 2023, eroding incomes and straining consumers. Elevated oil prices are putting pressure on longer-dated Japanese government bond yields, and Cuba is running out of food and fuel. The European Central Bank is forecast to raise interest rates twice this year amid the renewed burst of inflation. The global energy crisis also set the backdrop for US President Donald Trump’s trip to China for a two-day summit with President Xi Jinping, marking the first time a US leader has visited the country in almost a decade. Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy, markets and geopolitics: US Bloomberg The worst US inflation in years is once again eating away at Americans’ paychecks, as rising gasoline and grocery prices threaten to undermine household spending. Data out earlier this week underscored how the Iran war is reigniting inflation, straining consumers who were already frustrated by the high cost of living. After accounting for rising prices, wages declined in April from a year earlier — the first such drop since 2023. Live Events Bloomberg The vast majority of Americans worried about high prices in 2025, and a growing share grew anxious about the job market too, according to an annual Federal Reserve survey. Amid near-zero job growth last year, 42% of adults reported that finding or keeping a job was either a minor or major concern, up from 37% in 2024. Europe Bloomberg UK government bonds tumbled after Manchester Mayor Andy Burnham secured a pathway to potentially challenge Keir Starmer as prime minister, threatening political instability that investors fear could result in more expansive fiscal policy. The yield on 30-year gilts, the most sensitive maturity to political risk, surged as much as 20 basis points to 5.86%, the highest since 1998. Bloomberg French unemployment unexpectedly rose to the highest level in five years, adding to signs the euro area’s second largest economy was already on a weak footing when the Iran war began. Bloomberg The UK kicked off the year with a burst of economic growth, with business and consumers appearing to hold up in the initial weeks of the Iran war. However, economists warned that growth is now at risk from the fallout from a Middle East conflict that shows no signs of ending and the prospect of a new prime minister. Bloomberg The European Central Bank will raise interest rates twice this year as the Iran war drives inflation higher, a Bloomberg survey showed. Economists see quarter-point hikes in both June and September, aligning more closely with market expectations for at least two moves this year, according to the May 4-7 poll. Asia Bloomberg In South Korea’s $4.6 trillion stock market, signs of euphoria are popping up everywhere. Enthralled by a 200% surge over the past year that has far outpaced every other market on earth, locals are borrowing record sums to amplify their bets on stocks. Bloomberg Japan’s 20-year government bond yield climbed, as elevated energy prices add to inflation pressure. Upward pressure on Japanese government bond yields is building as oil prices remain elevated after the US and Iran rejected each other’s proposals to end the conflict, dimming prospects for a near-term resolution. Bloomberg China’s factory prices grew at the fastest pace since the pandemic four years ago as the fallout from the Iran war sharply raises costs and leaves profits under pressure. Though food prices slumped, consumer inflation unexpectedly climbed to 1.2% from a year earlier, surprising analysts who expected a slight slowdown. Bloomberg India raised import tariffs on gold and silver in an attempt to defend its currency, as the country races to shore up foreign-exchange reserves and limit the damage from the war in the Middle East. Emerging Markets Bloomberg To Fidel Castro and Cuba’s communist elite, private businesses were totems of capitalist evil. Now, with the country running out of food and fuel, the regime on the brink and anger spreading in the streets, it’s those private businesses — run by once-persecuted, small-scale capitalists — that hold the key to salvaging what’s left of Cuba’s economy. Bloomberg Russia’s economy contracted in the first quarter for the first time since the start of 2023, a setback for President Vladimir Putin’s demand for continued growth as he pursues the war in Ukraine. Gross domestic product shrank 0.2% in the first three months of the year from the same period a year earlier, according to Federal Statistics Service data. World Bloomberg The impact of the energy crisis on the global economy in recent months is showing up in gauges of supply-chain stress that flashed red during the pandemic, adding to reasons for central banks to be on guard for a recurrence of high inflation. Bloomberg Zambia and Angola lowered interest rates, while Uganda, Peru and Romania left borrowing costs unchanged. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now!
Under the policy, planned, high-density and mixed-use development will be promoted within a 500-metre radius around Metro and RRTS corridors, covering an area of around 207 square kilometres. View More
New Delhi: The National Real Estate Development Council ( Naredco ), has proposed changes to the Delhi Development Authority 's newly introduced Transit-Oriented Development (TOD) policy, arguing that relaxing restrictions on apartment size, pricing, parking and mandatory commercial space would help spur residential and commercial development in the national capital. Under the policy, planned, high-density and mixed-use development will be promoted within a 500-metre radius around Metro and RRTS corridors, covering an area of around 207 square kilometres. The real estate body suggested that the policy should also include national highways and expressways. "While the policy was long awaited and will give a much-needed boost to Delhi's real estate sector, we recently met Union Minister for Housing and Urban Affairs Manohar Lal and requested some minor changes," said Harsh Vardhan Bansal, president, Naredco Delhi. "The restriction on the size of the unit should be as per the definition of Rera carpet area, and there should not be any price cap; otherwise, developers will be hesitant to undertake projects." The policy enables the development of smaller plots of 2,000 square meters under the TOD provisions. Live Events A maximum floor area ratio (FAR) of up to 500 is permitted in TOD zones on plots measuring 2,000 sq. m. and above, with an 18-metre road. Of this, 65% of the total permissible FAR has been mandatorily earmarked for residential use, with units having a built-up area of 100 square metres, thereby providing for affordable housing along the Metro corridor. "TOD cannot succeed through proximity alone," said Dikshu C. Kukreja, managing principal at C.P. Kukreja Architects. "It must be supported by a rich mix of uses and a spatial structure that encourages constant activity. The future of Indian cities lies not in endless expansion, but in intelligent consolidation, where infrastructure, architecture and public life are seamlessly aligned." The current policy has a corridor-based approach and opens up an area of 207 sq. km. (500 metres on either side of Metro corridors and within a 500-metre radius of RRTS and railway stations), primarily for the provision of affordable housing through planned development and redevelopment. Of this 207 sq. km., about 80 sq. km. of land under land pooling, low-density residential areas and unauthorised colonies, excluded under the earlier TOD policy, have been brought under the purview of the new policy. "Transit-Oriented Development is not only about increasing density around transit corridors," said Anand Kumar, chairperson of Delhi RERA. "It is about creating more efficient, accessible and future-ready urban ecosystems where planning, infrastructure and housing evolve together..." .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)