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Govt will consider easing investment norms for foreign funds for ready houses: Hardeep Singh Puri
Real Estate

Govt will consider easing investment norms for foreign funds for ready houses: Hardeep Singh Puri

The Central Government may consider tweaking of investment norms for allowing more access to foreign funds into near completion projects, stated Hardeep Singh Puri, Union Minister for Housing & Urban Affairs.

He was interacting with real estate industry representatives and addressing a query put forth by one of the members on the new ways to boost liquidity in the sector. Puri stated that his ministry would take up the suggestion of easing investment norms for foreign funds into real estate projects which are at a near completion stage. This he said would give a huge boost to the sector by providing liquidity.

“There is certainly a political will to ease the problems faced by the industry during such challenging times,” Puri stated.

He also stated that the Urban Housing Ministry would take up the issue of a one-time debt restructuring with the finance ministry as well. “We have got a lot of suggestions from the developer community to consider for a one-time debt restructuring of all loans to reduce the incidence of NPAs,” Puri informed.

The developers also apprised the minister of the situation where the steel and cement manufacturers are planning to hike up the rates once the lockdown is lifted. “It does not make any sense to hike up the prices when the demand is down. I would assure you that the ministry would personally be speaking to the steel and cement manufacturers to ensure that the prices don’t escalate and the construction costs don’t rise,” he said.

Durga Shanker Mishra, Secretary, Housing & Urban Affairs, Government of India, on the occasion pointed out that the Aadhar verification can be used as a digital signature for the purpose of disbursement of loans.

“There are several transactions taking place where everything is sanctioned online by banks, however, it is getting stuck for want of digital signatures for disbursement of loans. In such an occasion, Aadhar verification can be done online as a solution for the situation,” he explained. They were speaking at the Housing for All 2020 knowledge series webinar organised by the real estate industry body- NAREDCO.

Dr. Niranjan Hiranandani, National President, NAREDCO, explained that thought the Central Government and the Reserve Bank of India (RBI) is coming out with several measures to provide relief to the industry , the same is not passed on by the banks.

“I find it highly shocking that almost Rs 6.9 lakh crore was lying idle with banks under the reverse repo adjustments. This money could have been given to provide relief to several sectors. There is an urgent need for an intervention at the prime ministers level to let that happen,” Dr. Hiranandani said. Speaking on the occasion, Rajan Bandelkar, President, NAREDCO-West, stated that online sales would be able to help out the real estate industry at the moment. “The Central Government and the RBI should come out with measures whereby for a limited time period, banks are able to provide home loans at just 6 per cent. This would give a tremendous boost to the real estate sector,” He added.

More than 2,500 developers participated from across India in this knowledge series event.

The Central Government may consider tweaking of investment norms for allowing more access to foreign funds into near completion projects, stated Hardeep Singh Puri, Union Minister for Housing & Urban Affairs. He was interacting with real estate industry representatives and addressing a query put forth by one of the members on the new ways to boost liquidity in the sector. Puri stated that his ministry would take up the suggestion of easing investment norms for foreign funds into real estate projects which are at a near completion stage. This he said would give a huge boost to the sector by providing liquidity. “There is certainly a political will to ease the problems faced by the industry during such challenging times,” Puri stated. He also stated that the Urban Housing Ministry would take up the issue of a one-time debt restructuring with the finance ministry as well. “We have got a lot of suggestions from the developer community to consider for a one-time debt restructuring of all loans to reduce the incidence of NPAs,” Puri informed. The developers also apprised the minister of the situation where the steel and cement manufacturers are planning to hike up the rates once the lockdown is lifted. “It does not make any sense to hike up the prices when the demand is down. I would assure you that the ministry would personally be speaking to the steel and cement manufacturers to ensure that the prices don’t escalate and the construction costs don’t rise,” he said. Durga Shanker Mishra, Secretary, Housing & Urban Affairs, Government of India, on the occasion pointed out that the Aadhar verification can be used as a digital signature for the purpose of disbursement of loans. “There are several transactions taking place where everything is sanctioned online by banks, however, it is getting stuck for want of digital signatures for disbursement of loans. In such an occasion, Aadhar verification can be done online as a solution for the situation,” he explained. They were speaking at the Housing for All 2020 knowledge series webinar organised by the real estate industry body- NAREDCO. Dr. Niranjan Hiranandani, National President, NAREDCO, explained that thought the Central Government and the Reserve Bank of India (RBI) is coming out with several measures to provide relief to the industry , the same is not passed on by the banks. “I find it highly shocking that almost Rs 6.9 lakh crore was lying idle with banks under the reverse repo adjustments. This money could have been given to provide relief to several sectors. There is an urgent need for an intervention at the prime ministers level to let that happen,” Dr. Hiranandani said. Speaking on the occasion, Rajan Bandelkar, President, NAREDCO-West, stated that online sales would be able to help out the real estate industry at the moment. “The Central Government and the RBI should come out with measures whereby for a limited time period, banks are able to provide home loans at just 6 per cent. This would give a tremendous boost to the real estate sector,” He added. More than 2,500 developers participated from across India in this knowledge series event.

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