Govt to look into housing industry’s demand to support realty sector
Real Estate

Govt to look into housing industry’s demand to support realty sector

On Friday, Durga Shanker Mishra, Housing and Urban Affairs Secretary, told the media that the government would consider various demands made by the real estate industry, including timeline extension for completing real estate projects by six to nine months.

He highlighted several initiatives exercised by the government in the last seven years, such as the advancement of 1.12 crore houses under Pradhan Mantri Awas Yojana (PMAY), 'infrastructure' status to affordable housing, the start of the Affordable Rental Housing Complex plan for migrant workers, and 100 smart cities.

Mishra was addressing a webinar designed by realtors organisation—NAREDCO.

NAREDCO's representatives made various demands before the secretary to improve both demand and supply in the realty sector, which has been adversely impacted by the Covid-19 pandemic.

The organisation asked for an extension of the timeline for project completion by 6-9 months following the realty law RERA, an extension of all raising permissions till March 2023, rationalisation of government taxes on real estate, and control of increasing rates of steel and cement.

It also asked for the reintroduction of interest subvention scheme, grant of input credit tax on GST paid in rented commercial real estate, halt of insolvency law for some more time, and an online environment clearance system.

Replying to the demand for an extension of the timeline for project completion, the housing secretary ensured that he would "go in detail" to understand the situation.

Mishra said that if need be, they will take this issue to RERA Advisory Council (RAC). However, he did state that this relief was given in the past year due to the national lockdown imposed.

On high taxes imposed by the central and state governments on real estate, Mishra advised the ministry's senior officials to investigate the issue in detail. He said that they would try to decrease government taxes.

Citing the rise in prices of steel and cement, Mishra said that he considered this issue with the ministry's interest, and would discuss the matter again.

About PMAY, he stated that 1.13 crore houses have already been approved and out of that, 48 lakh have been developed and delivered to the people.

The secretary notified that India's ranking in the efficiency of doing business associated with construction activities jumped to 27 from 186.

Highlighting affordable housing, Mishra said that the highest housing demand is in the economically weaker section (EWS) and low-income group (LIG), and witnessed that the millennial also wants 2-3 BHK flats and not bungalows.

Niranjan Hiranandani, President of NAREDCO, stated that the construction activities have decreased due to the second wave, as only 50% of labourers are working on sites. He directed that the timeline for the completion of projects should be stretched just like last year.

Neel Raheja of K Raheja group put forth demand linked to commercial real estate and asked for input tax credit benefit.

Rajan Bandelkar from NAREDCO Maharashtra stated that the second wave has a larger influence on the sector than last year's first wave. He demanded an expansion of timeline for project completion by 6-9 months as well as a stop of insolvency laws for some time.

Image Source


Also read: Home sales plunge in April-May due to second wave of Covid-19

Also read: Maharashtra to extend deadline for property registrations soon

On Friday, Durga Shanker Mishra, Housing and Urban Affairs Secretary, told the media that the government would consider various demands made by the real estate industry, including timeline extension for completing real estate projects by six to nine months. He highlighted several initiatives exercised by the government in the last seven years, such as the advancement of 1.12 crore houses under Pradhan Mantri Awas Yojana (PMAY), 'infrastructure' status to affordable housing, the start of the Affordable Rental Housing Complex plan for migrant workers, and 100 smart cities. Mishra was addressing a webinar designed by realtors organisation—NAREDCO. NAREDCO's representatives made various demands before the secretary to improve both demand and supply in the realty sector, which has been adversely impacted by the Covid-19 pandemic. The organisation asked for an extension of the timeline for project completion by 6-9 months following the realty law RERA, an extension of all raising permissions till March 2023, rationalisation of government taxes on real estate, and control of increasing rates of steel and cement. It also asked for the reintroduction of interest subvention scheme, grant of input credit tax on GST paid in rented commercial real estate, halt of insolvency law for some more time, and an online environment clearance system. Replying to the demand for an extension of the timeline for project completion, the housing secretary ensured that he would go in detail to understand the situation. Mishra said that if need be, they will take this issue to RERA Advisory Council (RAC). However, he did state that this relief was given in the past year due to the national lockdown imposed. On high taxes imposed by the central and state governments on real estate, Mishra advised the ministry's senior officials to investigate the issue in detail. He said that they would try to decrease government taxes. Citing the rise in prices of steel and cement, Mishra said that he considered this issue with the ministry's interest, and would discuss the matter again. About PMAY, he stated that 1.13 crore houses have already been approved and out of that, 48 lakh have been developed and delivered to the people. The secretary notified that India's ranking in the efficiency of doing business associated with construction activities jumped to 27 from 186. Highlighting affordable housing, Mishra said that the highest housing demand is in the economically weaker section (EWS) and low-income group (LIG), and witnessed that the millennial also wants 2-3 BHK flats and not bungalows. Niranjan Hiranandani, President of NAREDCO, stated that the construction activities have decreased due to the second wave, as only 50% of labourers are working on sites. He directed that the timeline for the completion of projects should be stretched just like last year. Neel Raheja of K Raheja group put forth demand linked to commercial real estate and asked for input tax credit benefit. Rajan Bandelkar from NAREDCO Maharashtra stated that the second wave has a larger influence on the sector than last year's first wave. He demanded an expansion of timeline for project completion by 6-9 months as well as a stop of insolvency laws for some time. Image Source Also read: Home sales plunge in April-May due to second wave of Covid-19 Also read: Maharashtra to extend deadline for property registrations soon

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