It's raining orders for India Inc

The trickle has turned into a deluge. India Inc's order book has more than doubled to an all-time high of Rs 73,320 crore in the second quarter of the current financial year, compared to the first quarter. On a year-on-year basis, the increase is 21 per cent.

An analysis of order book announcements by 63 companies shows that capital goods, engineering and infrastructure have led the way, cornering 86 per cent (Rs 63,439 crore) of the total orders. The remaining Rs 9,881 crore went to gems & jewellery, pharmaceuticals and telecom. Larsen & Toubro (L&T) topped the list with new orders worth Rs 14,253 crore.

The order backlog is equally impressive and suggests strong revenue streams for the next few years. Electrical equipment giant Bharat Heavy Electricals Ltd [ Get Quote ] has an order backlog of over Rs 117,000 crore, which could see the company through for the next four years. Engineering major L&T has a total order book of Rs 70,000 crore, which is almost 1.75 times its annual turnover.

It's not the big boys alone who are comfortably placed. For example, BGR Energy, which has won contracts worth Rs 1,633 crore each for two power projects, has an overall order position of Rs 12,500 crore, providing a revenue stream for more than three years.

The bulk of orders has come from public sector undertakings and central and state governments. Foreign companies accounted for a quarter and the private sector for the rest.

India Inc's bosses are predictably upbeat. Pervez Umrigar, managing director of Gammon [ Get Quote ] Infrastructure Projects, said the infrastructure sector has a huge long-term potential.

"The financial position was grim last year, but now it is recovering. I hope complete recovery will take place by this year-end."

Bankers said the order book would continue to be impressive. The banking sector's exposure to the infrastructure sector went up 35 per cent year-on-year and is expected to improve further.

ICICI Bank's [ Get Quote ] Managing Director & CEO Chanda Kochhar [ Images ] said she expected the next level of credit growth to come from project finance apart from home and auto loans. For example, the government's $20 billion roads programme is well on track and a lot of orders are expected to flow into the books of Indian companies.

Source: Rediff

Sentiment turns positive in Hyderabad

The real estate scene in Hyderabad and areas around the twin cities is showing a distinct trend with the affordable segment gaining momentum and more developers looking to address this space as buyers abound.

Sentiment improves

However, an interaction with a cross-section of developers, at a recent meeting hosted by information services provider Dun & Bradstreet, reveals that this segment is also witnessing more enquires.

“The overall situation has changed for the better in the last two-three months with each month getting better. The general gloomy sentiment is behind us,” according to Mr S. Pochender, Chief Executive Officer, Lanco Hills, of the Lanco Group.

The festival season is when there is an increase in the number of enquiries. However, the business is still centered around the affordable home segment. In fact, some of the luxury apartment developers are restructuring their projects to address this segment.

In addition, buyer interest has risen with price correction touching nearly 30 per cent. This, coupled with banks lowering interest rates and gradually stepping up loan disbursals, the sentiment is much more upbeat compared to a couple of quarters back, Mr Pochender explained.

The Managing Director of Koncept Ambience, Mr M. P. Agrawall, said that the market had stagnated for nearly a year. After witnessing a fall and prices coming to realistic levels, things have begun to look up in the last couple of months.

“The prices of land have corrected up to 30 per cent, and those of finished products have come to realistic levels. We believe there is not much scope for further reduction. Even buyers realise this and have begun to enter into deals,” he explained.

Supply scene

Referring to the supply situation, Mr Agrawall said that while there is glut in the Rs 50 lakh to Rs 1crore apartment and villa segments, the supply in the affordable segment is inadequate. In the Rs 1 crore and above category too the number of builders and projects are very few, he added.

Mr Agrawall pointed out that the affordable segment needs to be studied closely. It won’t be easy for every developer to address this space. For those having large land banks, they could consider this segment along with developers who are already in this space.

However, if some of the developers who are currently catering to the above Rs 50 lakh segment want to turn to the affordable segment, it would be very tough. Eventually, many players may hastily get into this space, create an oversupply situation and be at the losing end.

Referring to the Rs 1 crore and above segment, Mr Agrawall said that the price correction has been significant in this area too and buyers realise that the correction phase is over. They are getting into buy mode again.

Millennium Homes, hosted by Dun & Bradstreet last week, attracted quite a few developers in the Rs 50 lakh and above category.

A database of about 25,000 people was drawn up and mailers sent to potential buyers to introduce them to some of the new projects that developers are launching.

Among those who participated in the event include L&T, SMR Vinay, Ramky and Dax Properties.

Dax Properties, promoted by a group of non-resident Indians, in partnership with developers in Hyderabad, is setting up a Rs 500 crore Golf Retreat which will have a 18-hole Golf Course, luxury apartments and plots for construction of villas, according to Mr Masood, Managing Director of Dax Properties.

The Mumbai-based Lodha Builders, which is setting up luxury apartments near the IT hub of Hyderabad, claims that of the 120 apartments planned in the first phase, it has managed to get bookings for 108 which are priced at Rs 2.5-3 crore.

Mr Ravi Sharma, Deputy General Manager, Lodha Builders, said that the company brought about some correction in prices for its luxury apartment venture of each unit of Rs 4,700 sq.ft, with one apartment on one floor.

Source: Business Line

DLF sells 1,250 flats in 2 hours

DLF, the country's largest property developer, sold all the 1,250 apartments on offer in the second phase of its Capital Greens project near the Moti Nagar area of Shivaji Marg (Najafgarh Road) in West Delhi, within two hours of launching the booking on Tuesday evening.

While the prices were lower than the market, the lowest effective price was 39 per cent higher than the lowest price it had charged during the first phase of the project this April.

At the time, DLF had sold all 1,356 apartments on offer under the first phase in a single day; a prime factor was that their lowest effective price was 32 per cent lower than the market price.

This time, claimed a company spokesman, it was more than 25 per cent lower than the market one.

Apartment prices are upwards of Rs 6,000 a sq ft in the area. In the second phase, the company charged Rs 6,750, Rs 7,500 and Rs 8,000 a sq ft, respectively, for the apartments, which ranged from 1,210 to 2,720 sq ft each.

There was a discount of Rs 500 a sq ft for timely payment and an 8.5 per cent discount on down payment. Hence, the effective selling price, which includes both discounts, is about Rs 5,677, Rs 6,363 and Rs 6,820 a sq ft, respectively.

The company additionally charged for parking and for those wanting a preferred location.

A spokesman said the increased charges were due to the better location of the second phase, with a 90 per cent view of greenery and inclusion of four-bedroom apartments, which did not exist in the first phase.

"If buyers lap up the properties with increased prices so quickly, it shows there is a still an appetite in them to absorb that franchise,'' said Anuj Puri, chairman of property consultancy Jones Lang LaSalle Meghraj.

However, Puri said if speculators had participated in the project, then it is bad for the property market, as they could go in for arbitrage later. However, the company spokesman said it had imposed a restriction of one apartment per PAN card holder and a lock-in period of one year within which the buyers cannot sell the apartments.

"We are committed to give value for money for our buyers and rates are still 25 to 30 per cent lower than the prevailing market prices,'' the spokesman said.

In a first of sorts in the Mumbai property market, Unitech, the country's second largest developer, is planning to launch a new residential project in the Worli area of south-central Mumbai, which is expected to be 35 per cent lesser than prevailing prices in the area, sources in the company said.

But the catch is that the buyer of the apartments should pay 75 per cent of the apartment cost in one go, as against the construction-linked payment plans prevailing in the real estate market, wherein the buyer pays some money as booking amount and the rest in instalments linked to each stage of completion.

''But the project is in its very initial stages and is expected to be launched in a year's time,'' sources said. The company is also expected to return buyers the entire amount with 12 per cent interest if it is unable to finish within a year from the launch.

Ashok Kumar, managing director of Cresa Partners, a realty consultancy, said: "It will certainly put pressure in the south-central Mumbai market, where a number of new projects are coming up, resulting in oversupply.''

After a lull of almost six months, real estate developers are once again launching residential projects aggressively to cash on the Navratri festival, considered auspicious for property buying.

The festival of Navratri comes after the Shraadh period, considered inauspicious in the Hindu religious calendar, when property buyers do not book houses.

The interest from developers was so much that over a dozen residential projects by companies such as Parsvnath, BPTP and Emaar MGF were launched in the National Capital Region in the past week.

Emaar MGF, a Delhi-based developer, launched Emerald Floors Premier on Monday after it sold off Emerald Floors and Emerald Estate in the Emerald Hills integrated gated community project in Gurgaon. The same company launched plots and villa floors at Jaipur Greens on September 19, where it has sold 120 plots so far, while Parsvnath Developers also launched Parsvnath City at Saharanpur in UP last Sunday.

According to property consultants, this year the new launches were double the number of last year's Navratri launches, when the property market was in a bad shape. Home sales had fallen by over 50 per cent from the beginning of the year, and developers were offering freebies and discounts to sell their existing projects.

Though on a lower scale, Mumbai also witnessed a couple of launches of luxury projects in South Central Mumbai by companies such as Indiabulls Real Estate and Orbit Corporation last week.

"Every day, we are seeing one or two launches and every developer is launching projects. Last year, most of them were selling old products due to the downturn. This year, we have a seen a slew of new projects during Navratri," said Raminder Grover, chief executive of Homebay Residential, a unit of property consultancy Jones Lang LaSalle Meghraj.

Consultants say the increased activity in home sales is giving confidence to developers to launch new projects. Residential prices have gone up by 15 to 20 per cent in the past six months or so, as developers sold projects which were aggressively priced and marketed.

"The last few months were indeed good for the residential market. There is an increased activity due to good launches and better pricing by developers,'' says Anshuman Magazine, chairman and managing director of CB Richard Ellis, South Asia.

Grover says that unlike last Navratri, developers are not giving any freebies and discounts, as they were confident of selling their products without any added attraction. Magazine adds that developers are selling homes with better amenities and designs to prospective buyers.

"Though developers are marketing their products aggressively, buyers have a high level of awareness on the available projects. It is certainly a buyers' market now,'' said Magazine.

Source: Rediff.com

Super-luxury is back in the realty lexicon

Super-luxury is back in the realty lexicon Raghavendra Kamath & B Krishna Mohan / Mumbai/hyderabad September 22, 2009, 0:11 IST The sales brochure offers you the opportunity to own Mumbai’s first managed private residences with a “lifestyle elevated up to the sky”. At Rs 28,000 per square foot plus other charges, Indiabulls Sky is also promising a 65-storey “marvel with opulent apartments, timeless luxury and impeccable butler service”. Indiabulls Real Estate, which has sold one-third of the apartments since the Lower Parel project was launched in the last one month, now says it will be selective in selling the remaining apartments to create a “classy neighbourhood”. Apartments boasting the tags luxury and super-luxury — the two words forgotten in the real estate world in the last two years — are back with a bang over the last three months. What has brought back buyers this time is the fact that prices are much more reasonable than in 2006-07, when the same kind of apartment would have had an asking price at least 30 per cent higher. Orbit Terraces, a luxury housing project by realty developer Orbit Corporation, also in Lower Parel, saw around 300 buyers making enquiries for 75 to 80 apartments when it was launched last week. The apartments in the project, which include duplexes with attached terraces, cost Rs 3.3 crore to Rs 6.6 crore for apartments ranging from 1,500 sq ft to 3,000 sq ft. A host of other developers are also cashing in on what they call the new-found confidence among buyers. Take Mumbai-based Lodha Developers. The company, which used to sell two or three luxury apartments a month in south Mumbai till December last year, now sells 15 to 20 units a month, a top company official says. It has several projects such as Lodha Bellisimo, Lodha Primero, Chateau Paradise, among others, in South Mumbai. And despite raising prices at the Lodha Primero project in Mumbai’s Mahalaxmi area 30 per cent, the developer has been able to sell 90 per cent of the apartments in the last one month. "The luxury market was hit hard during the downturn. But sales have definitely picked up since March as the economy is on an upswing,'' says R Karthik, senior vice-president of marketing at Lodha Developers. The rush for super-luxury isn’t restricted to the country’s commercial capital. In Hyderabad, for example, at least eight builders are developing multiple projects, under which each villa or a bungalow is priced around Rs 4 crore. Sunish Tom, head of Dun and Bradstreet (D&B) Information Services India events and promotions, says there is a huge demand for exclusive, custom-built luxury houses. D&B recently conducted Millionaire Homes 2009 in Hyderabad, a platform to introduce prospective buyers to property developers. At least 2,000 people have expressed an interest in evaluating luxury properties. Similar events have already been held at Chennai and Bangalore. Ravi Sharma, deputy general manager (sales) of Lodha Group, which sold its luxury properties by invitation, says the company has identified 5,000 high net worth individuals in Hyderabad. “We do customer profiling before extending an invitation,'' he said. The group sold 108 units of the 120 built in Phase I, due delivery in July 2011. Each unit was priced between Rs 2.5 crore and Rs 3 crore. The group plans to begin its second phase in four months. “There is demand for luxury homes. Most buyers want to stay in them and not see them as mere investment channels,'' Sharma said. What defines luxury is changing rapidly. “Golf is the USP for us. There is a huge appetite for this kind of project,”' said Masood, managing director, Dax Properties, a subsidiary of Country Side. Dax is coming up with a golf-centric villa project at Shadnagar (on the Bangalore highway), about 50 km from Hyderabad, covering 300 acres. It will have villas and villa plots ranging from 5,000 sq ft to 15,000 sq ft. In all, it plans to construct 1,000 villas in three phases including 250 villas in the first phase. “The project is approved and the construction will start shortly,'' says Masood, adding that the project cost will be around Rs 500 crore. Vipul Bansal, joint managing director of Indiabulls Real Estate, says the luxury segment was largely insulated from the economic slowdown. “The main reason for buyers staying away was that there was hardly any stock of high-end products in places such as south Mumbai,'' he says. But analysts say the segment is seeing traction once again only because of aggressive pricing by developers. "Basically, it’s a question of keeping something on the table for buyers who need the comfort that they are buying a property that has scope for a 30 to 40 per cent increase after two or three years,'' says Raminder Grover, chief executive of Homebay Residential, a unit of Jones Lang LaSalle Meghraj, an international property consultant. Some developers agree. "Though sentiment and pricing have improved, if you increase prices by 10 to 15 per cent, products cannot be sold as easily as you sell them today,'' says Ramashraya Yadav, head of finance at Orbit Corp. According to Aditi Vijayakar, director of residential services at Cushman & Wakefield, a real estate consultancy firm, self employed people and businessman form the major chunk of new home buyers. That may not be surprising, since increments for salaried people are still subdued in Indian companies. Buoyed by the new-found demand, many developers are planning new luxury launches. Orbit is planning one in Lower Parel during Diwali and another one in Andheri after Diwali, while Lodha is planning two more luxury projects in Mumbai shortly. Source: http://www.business-standard.com/india/news/super-luxury-is-back-inrealty-lexicon/370858/

Builders start raising home prices again

Next

DLF, the country's largest property developer, will soon conduct a poll among property brokers to decide the pricing and number of apartments to be offered in the second phase of its Capital Greens project in West Delhi.

It's a novel experiment, but property brokers in Delhi say the company is trying to test the waters in view of the vastly changed situation in the real estate market.

Though DLF's spokesman said the company is yet to fix a final price, feedback from brokers suggests the company is exploring the option of charging around Rs 7,000 a square foot (sq ft).

At this level, the price is 56 per cent more than Rs 4,500 a sq ft it charged in the first phase of Capital Greens, when DLF had sold 1,356 apartments in a single day in April this year.

Developers such as DLF, Unitech, Omaxe, Parsvnath and HDIL were among those that cut property prices or forayed into mid-income housing, which were 25 to 30 per cent lower than prevailing prices, in the last quarters of 2008-09, as the economic slowdown and fears of job losses impacted home sales.

Property sales fell 50 per cent from their peak in 2007-08 (when prices had more than doubled froom 2004-05) as buyers stayed away.

Those days are rapidly becoming a distant memory, with many developers increasing prices 15 to 30 per cent the moment they became sure of demand returning.

Take Mumbai-based Lodha Developers. The developer has increased prices 30 per cent in its premium housing project, Lodha Primero in South Mumbai, since its launch about four months ago. It has already sold 90 per cent of the apartments. For its mid-income projects, Lodha has increased prices 12 to 14 per cent.

Neptune Group, another Mumbai-based property developer, has increased prices in its Neptune Flying Kite project in Bhandup 26 per cent, from Rs 4,691 a sq ft a couple of months ago to Rs 5,900 a sq ft.

The national capital region (NCR) is not far behind with housing prices in Gurgaon having moved up to Rs 3,200 a sq ft from Rs 2,800 a sq ft six months back, brokers in the locality say.

Unitech, the country's second largest developer, which is mostly focusing on mid-income housing projects under the Unihomes brand, is also considering a minor price rise in its home prices, a company official says.

"Markets are looking up and this is prompting developers to come up with increased prices for their Navratra launches. Prices are up by 15 to 20 per cent in the secondary market," says Anil Singhal, a property consultant based in Connaught Place, Delhi.

Navratra, a Hindu festival, is considered auspicious for property buys and developers generally launch new projects in the 10-day period

Developers say the move to increase prices is in tune with rising demand from home buyers.

"We are not hoarding our property. When the market was down, we were quoting low prices. Since it has moved up, we have increased prices. We sell according to the forces of demand and supply," says Nayan Bheda, chairman and managing director of Neptune Group.

Adds R Karthik, senior vice president of marketing at Lodha Developers: "It is a standard way of operating projects. It is a strategic as well as tactical move so as to offer value for those who have bought properties.

However, the move to raise housing prices has had its fair share of criticism. Analysts warn that property sales may fall again if developers increase prices sharply since the economic recovery is hardly complete.

"Demand is coming back with much difficulty. It does not make sense to increase prices now. They have to hold prices steady till demand comes back fully," says Anuj Puri, chairman of Jones Lang LaSalle Meghraj (JLLM), an international property consultant.

According to a recent CII study, the Indian real estate market is expected to recover only in 2010-11.

However, the government growing fiscal deficit is expected to impact the sector negatively with increases in the cost of funding and falling return on investments through exchange rate variations.

Some have been once-bitten-twice-shy and have avoided raising prices. Parsvnath Developers Chairman Pradeep Jain says he doesn't see any scope to increase prices for the next couple of months.

"We have to concentrate on selling properties and generating internal accruals first. We are planning to sell properties with attractive discounts in the festive season," says Jain who is also president of NCR chapter of the Confederation of Real Estate Developer's Associations of India (Credai).

Going by the trend in property prices in recent weeks, few of his counterparts in other real estate companies agree with Jain.

Business Interests Lobbying for Jagan

The attempt to orchestrate support for YS Jaganmohan Reddy as Andhra Pradesh (AP) chief minister soon after his father, YS Rajasekhara Reddy, was killed in a helicopter crash is as much the result of business pressures as political expediency.

Despite being a grassroots politician, YSR had close links with many businessmen and realtors, and these interests are concerned about the fate of their projects now that the strongman is no longer around. They see Jaganmohan as an insurance against changes in the state's stance on their projects.

"Every major business house in the country, from the Ambanis (who have gas and pipeline interests in the Krishna-Godavari basin) down to medium and large realtors, has committed itself to invest in the state following YSR's re-election in May, 2009. Several thousands of crores have gone into some of these projects. Any major change in the state's power structure could hurt them. Though we can't talk about favours to politicians by these businessmen, we can definitely say the stakes are extremely high and one has to protect them," said a realtor.

Real estate and infrastructure have been key areas where political support is vital in AP. The Satyam scandal, for example, had a strong real estate and infrastructure connection, both areas in which state governments play a large role.

"There are definitely big bets as far as the industry is concerned. YSR's son Jagan knew of many commitments made by YSR to industry in AP. So, it is natural that industry expects Jagan to take over as chief minister," a senior industrialist with interests in power and mining told DNA.

Businessmen are reposing faith in YSR's son as they saw his father protecting their interests even when faced with strong political opposition. Obulapuram Mining Company, owned by Gali Janardhan Reddy of Bellary, is being cited as the best example by several industrialists. His company had asked for about 10,000 acres for mining on the AP-Karnataka border and he was given about 10,700 acres. In addition, YSR had written to the Centre for facilitating the sanction of Rs1,000 crore as loan to Janardhan Reddy.

Many opposition parties, including the N Chandrababu Naidu-led Telugu Desam, had criticised the chief minister for using his office for the benefit of a businessman. But YSR did not yield to the criticism.

Similarly, a major port project taken up by N Prasad, founder of pharma company Matrix, was protected by YSR. Prasad's Vadarevu and Nizampatnam Port Infrastructure Company was given a mandate to develop the two ports on the Andhra coast. While the original land requirement was stated to be 9,700 acres, the plan was revised to allot 28,000 acres. The project is in a nascent stage and needs backing. Prasad is also a major investor in Sakshi, a Telugu news daily set up by YSR's son.

Similarly, a cement major, with significant clout at the Centre, is said to be a keen backer of Jagan. A pharma company, which is setting up a special economic zone (SEZ) on the outskirts of Hyderabad, is doing its bit to lobby for him.

The SEZ lobby, primarily driven by pro-Congress businessmen, is worried about the future of its projects. AP has the highest number of approved SEZs in the country, with most being promoted by businessmen with realty backgrounds. While land acquisition was facilitated by the YSR government, the promoters were promised help to divert potential investors to their SEZs.

Many construction companies, from Gammon to the homegrown Nagarjuna Construction Company, have huge stakes in the Jalayagnam irrigation project of YSR. Projects under Jalayagnam have been taken up with a budget of about Rs1,30,000 crore. Though most construction companies have been given work on a contract basis (EPC), there was never a major delay in clearing bills.

"Unless we get a successor with the same commitment to completing the projects by getting clearances from the Centre, it will be very difficult for us to get our bills cleared. Going to courts for this is the last thing we can think of. If the successor is committed to the irrigation projects, we don't have to depend on lobbying," a major irrigation contractor said.

A tribute to Y.S.R

Y.S. Rajasekhara Reddy combined in himself confidence, assertiveness, clarity of thought and a commitment to serve the poor.

MOHD. ARIF

RAJASEKHARA REDDY ADDRESSING an election rally in the Ramayampet Assembly constituency in Medak district.

A STAUNCH believer in establishing direct contact with the people, Chief Minister Y.S. Rajasekhara Reddy always looked forward to his interactions with the masses. He would never take the word of bureaucrats or Congress functionaries at face value; he believed in forming his own impressions.

On September 2, he set out to launch a mass contact programme at Annepalle in Chittoor district, a day after the Legislative Assembly and Council were adjourned sine die. That contact could not be established, but the spontaneous outpouring of grief witnessed across Andhra Pradesh over his unfortunate death reflected the enduring affection he had won for himself through his pro-poor and pro-farmer policies.

THE HINDU PHOTO LIBRARY

THE PADAYATRA IN 2003, which brought him to power the following year.

Rajasekhara Reddy was the only Congress Chief Minister in the State to have not only completed a full five-year term but established himself firmly in the saddle for a second consecutive term. He proved himself to be the undisputed leader of the party who gave no room for dissidence and a person of remarkable political and administrative acumen. Such was his determination to realise his vision of making the State self-sufficient in every sector – agriculture, industry, information technology and infrastructure – that he began working out strategies for winning the 2014 elections within three months after being re-elected. And people believed that with him at the helm this vision would materialise. Rajasekhara Reddy was a rare politician who combined in himself confidence, assertiveness, clarity of thought, compassion, commitment and dedication to serve the poor, in the right proportion. His style was typical of the politics of Rayalaseema, the region he hailed from.

His impressive first term was marked by the launching of ambitious initiatives such as Jalayagnam, a scheme to irrigate four million hectares of land through 81 irrigation projects by 2014; Arogyasri, a health insurance scheme for the economically backward sections, which earned him the tag of messiah of the poor; Indiramma, a housing scheme to provide pucca houses to every family living below the poverty line; free power to farmers to give a fillip to the agricultural sector which was neglected during the nine-year rule of the Telugu Desam Party (TDP); revival of the Rs.2-a-kg-rice scheme for white ration card holders; and Pavala Vaddi (loans at 3 per cent interest) to women’s self-help groups. Passionate about the Pavala Vaddi scheme meant to empower women, he took time to explain to the beneficiaries how the concept would change their lives, without leaving the job to government officials.

C.V. SUBRAHMANYAM

TALKING TO Dalit women at Bangarimetta in Visakhapatnam district.

These initiatives were showcased to buttress the party’s claim to good governance in the run-up to the elections this May. It was his record of keeping the promises made before the 2004 elections that saw the Congress win a second consecutive term. He proved that people would not be swayed by the glamour of film stars (actor Chiranjeevi’s Praja Rajyam fielded candidates in all the Assembly constituencies) or inducements such as the cash transfer scheme promised by the TDP.

P.V. SIVAKUMAR

WITH BEEDI workers from Karimnagar district on November 29, 2006, when they called on him in Hyderabad.

He had the uncanny ability to read the pulse of the people. He did not make any fresh promises in 2009; he rather assured the voters that he would continue all the development and welfare schemes that were under implementation, and improve their delivery. The people trusted his word and elected 33 Congress representatives to the Lok Sabha, the party’s largest contingent from any Congress-ruled State in the country, thereby strengthening the United Progressive Alliance’s (UPA) position at the Centre. This feat further enhanced his position vis-a-vis the party high command. In her message of condolence, Congress president Sonia Gandhi described Rajasekhara Reddy as one of the party’s best Chief Ministers.

THE HINDU PHOTO LIBRARY

With Prime Minister Indira Gandhi and K. Rosaiah, now caretaker Chief Minister.

When the Congress won a simple majority with 156 seats in the 294-member State Assembly, a much smaller number than the 200-plus seats it had expected, Rajasekhara Reddy realised the need to fine-tune the delivery mechanism of the welfare schemes so that they reached every eligible beneficiary irrespective of caste, creed or political affiliation.

BY SPECIAL ARRANGEMENT

With Rajiv Gandhi, who made him APCC president.

It was this determination that led him to formulate yet another innovative scheme, Rachchabanda (village square), a mass contact programme to enable him to meet residents of villages and get directly from them their feedback on the implementation of welfare schemes and also to learn about their problems.

As several districts in the State were facing a drought-like situation in view of an unfavourable monsoon, he was doubly keen to see the implementation of the Centrally sponsored National Rural Employment Guarantee Scheme (a scheme close to his heart) meant to arrest the labour migration.

K. RAMESH BABU

With Congress president Sonia Gandhi in Hyderabad in 2005.

Yeduguri Sandinti Rajasekhara Reddy was born on July 8, 1949, at Pulivendula of Kadapa district in the Rayalaseema region, characterised by blood feuds. He hailed from a family that had for generations, daring the wrath of the feudal lords, championed the cause of the downtrodden. He inherited his dare-devil temperament from his father Y.S. Raja Reddy, a leader who was feared by his adversaries and loved by his loyalists. Rajasekhara Reddy considered him his role model. His father’s brutal killing in a bomb attack in 1998 pained him deeply, his close associates say.

At the launch of the Badibata programme for underprivileged children in Hyderabad on June 12.

Rajasekhara Reddy took his MBBS from M.R. Medical College, Gulbarga, Karnataka. After serving briefly as medical officer at the Jammalamadugu Mission Hospital, and establishing many charitable institutions, he plunged into active politics in 1978. He earned a reputation for displaying an independent spirit, sometimes even in defiance of the State leadership. He courted several controversies during his 31-year-long political career.

NAGARA GOPAL

With Assembly Speaker K. Suresh Reddy in Hyderabad in November 2008 as a participant in a half marathon.

He led various agitations to highlight the problems of the Rayalaseema region. It was the 1,500-kilometre padayatra he launched in 2003 in the scorching summer, when the State was reeling under successive years of drought, that changed the tide in favour of the Congress and ended the TDP rule in 2004. It was also this extensive campaign by foot, his interaction with people in the rural areas, and his understanding of the ground realities that helped him gain valuable insights and later chalk out his priorities and programmes to give a boost to the rural economy, initiate irrigation projects and strengthen the farming community.

Rajasekhara Reddy never lost an election. He was elected to the Assembly and the Lok Sabha four times each. He headed the Andhra Pradesh Congress Committee twice. He was Minister between 1980 and 1983. It was Prime Minister Rajiv Gandhi who spotted the leadership qualities in him and made him APCC president.

SRINIVAS KOMMURI

On the flooded Chirala-Karamchedu road.

It was his role as the Leader of the Opposition in the 11th Legislative Assembly, when N. Chandrababu Naidu was heading the TDP government, that brought out the political strategist in him and his ability to lead from the front. His trenchant criticism of his political opponents, biting sarcasm, ready wit, ability to drive home his point convincingly in the Assembly and at public meetings, and oratorical skills contributed to his rise in the State Congress.

Although Rajasekhara Reddy successfully implemented his promise of free power supply to farmers, revived the Rs.2-a-kilo-rice scheme, which had been scrapped by his predecessor, and liberally sanctioned loans, pensions and scholarships and reimbursement of fee to all poor students irrespective of their caste and community, he did not neglect industry, infrastructure and the IT sector. He consolidated the foundation for wealth creation programmes pioneered by Chandrababu Naidu.

BY SPECIAL ARRANGEMENT

RAJASEKHARA REDDY with TDP leader N. Chandrababu Naidu (he was in the Congress then), Ghulam Nabi Azad and K.E. Krishnamurthy, in the mid-1970s at Tirupati.

Rajasekhara Reddy who was often clad in white dhoti and shirt, the traditional attire of Telugus, was equally at home in formal suit during his visits abroad or when the occasion demanded it. He was known for his genial smile, brevity of speech, physical fitness and discipline. He sent out a clear message to his Cabinet colleagues and party cadre that he would only reward efficiency.

RAJASEKHARA REDDY (extreme left) with his friends in college.

The sea of humanity that thronged to pay homage to him at Hyderabad and Idupulapaya in Kadapa was a testimony to the enormous goodwill of the public Rajasekhara Reddy had earned. For a political leader who started as a rebel without a cause, his transformation as a mature politician determined to improve the lot of the poor and the underprivileged was tremendous. He has left a high stamp of credibility on the office of Chief Minister, making the going difficult for his successors.

G. KRISHNASWAMY

WITH WIFE Vijayalakshmi, whom he married in 1971.

“I am planning surprise visits to villages to check on the implementation of drought relief measures,” were the last words he uttered to mediapersons before he embarked on his last journey. Although all the welfare measures may run as he planned, the personal touch that Rajasekhara Reddy gave them will be missing.