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

Next Story
Infrastructure Urban

Six Bidders Vie for Rs 572 Bn Jaiprakash Associates

The scramble to rescue Jaiprakash Associates Ltd (JAL), the flagship of the debt-laden Jaypee Group, reached a decisive stage on Tuesday as the window for resolution plans shut with at least six suitors in the fray. Industry sources say Adani Enterprises, Vedanta Group, Dalmia Bharat, Jaypee Infratech (backed by the Suraksha Group), Jindal Power and PNC Infratech have all lodged bids. Jaypee Infratech confirmed its submission but declined to reveal details.Lenders will open and assess the offers at a Committee of Creditors meeting today. Although bid values remain under wraps, the National Ass..

Next Story
Infrastructure Urban

Delhi Orders Urgent MAMC Hostel Repair and Safety Upgrade

Delhi Chief Minister Rekha Gupta has instructed multiple departments to overhaul hostel infrastructure and enhance student safety at Maulana Azad Medical College (MAMC). Chairing a high-level meeting at the Delhi Secretariat with Public Works Department, Health officials and student representatives, the Chief Minister demanded immediate repairs to ageing hostel blocks, new high-intensity LED lighting, round-the-clock CCTV coverage and a larger security presence.She also ordered a special drive to clear illegal encroachments around the campus and fast-track plans for an additional hostel, delay..

Next Story
Infrastructure Transport

Vikaspuri Road Upgrade, Tree Drive to Boost Delhi Constituency

Delhi’s Health and Transport Minister Pankaj Kumar Singh has broken ground on the long-awaited Baprola Village–Harphool Vihar road while leading a record plantation of 501 saplings under the “Ek Ped Maa Ke Naam” campaign. He said the two initiatives reflect the capital’s “people-centric governance”, promising safer, faster and more dignified daily life for residents.The rebuilt thoroughfare will ease commutes for Baprola Village, G-2 Jai Vihar, Prashant Enclave, Bajrang Chowk and Harphool Vihar, directly benefiting an estimated three thousand to three thousand five hundred school..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?