Real estate sector seeks Rs 1.25 lakh cr stress fund
Real Estate

Real estate sector seeks Rs 1.25 lakh cr stress fund

National Real Estate Development Council (NAREDCO), an industry body, is seeking an estimated Rs 125,000 crore via many Housing Finance Corporations (HFCs) and Non-Banking Financial Companies (NBFCs) who they say are ready to establish such stress funds for the ailing real estate sector. According to the body, this will allow for faster sanctions and appraisals.

Niranjan Hiranandani, National President, NAREDCO, said that the industry appreciates the establishment of the Rs 25,000 crore Single-Window for Affordable and Mid-Income Housing (SWAMIH) fund to help the real estate, but allowing more similar stress funds will facilitate last-mile funding for stressed and stalled projects.

Enhancing loan to value (LTV) ratio up to 90% across the board for home loans for affordable houses of Rs 30 lakh or less and the same facility should be extended to MIG and HIG, is another demand that industry has put forward.

Allowing interest on home loans for income tax deductions without any ceiling, current interest deduction under section 24 of IT Act 1961 on housing loans of Rs 2 lakh should be removed in order to incentivise home buyers, said NAREDCO.

For rental housing, NAREDCO seeks enhancement in House Rent Allowance (HRA) Tax Exemption for rental housing, an increased depreciation rate for the rental projects like in commercial buildings and allowing ''carry on'' of loss from rental income will make a difference.

One-time restructuring of loans, allowing external commercial borrowings (ECBs) for the real estate sector and reforms for special economic zones (SEZs), including extending notification date for IT/ Information Technology Enabled Services (ITES) SEZs and withdrawal of MAT are some other demand put forward by NAREDCO which thinks this can go a long way in ensuring green shoots in the real estate sector.

Image source


4th Indian Cement Review Conference 2021

4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


National Real Estate Development Council (NAREDCO), an industry body, is seeking an estimated Rs 125,000 crore via many Housing Finance Corporations (HFCs) and Non-Banking Financial Companies (NBFCs) who they say are ready to establish such stress funds for the ailing real estate sector. According to the body, this will allow for faster sanctions and appraisals. Niranjan Hiranandani, National President, NAREDCO, said that the industry appreciates the establishment of the Rs 25,000 crore Single-Window for Affordable and Mid-Income Housing (SWAMIH) fund to help the real estate, but allowing more similar stress funds will facilitate last-mile funding for stressed and stalled projects. Enhancing loan to value (LTV) ratio up to 90% across the board for home loans for affordable houses of Rs 30 lakh or less and the same facility should be extended to MIG and HIG, is another demand that industry has put forward. Allowing interest on home loans for income tax deductions without any ceiling, current interest deduction under section 24 of IT Act 1961 on housing loans of Rs 2 lakh should be removed in order to incentivise home buyers, said NAREDCO. For rental housing, NAREDCO seeks enhancement in House Rent Allowance (HRA) Tax Exemption for rental housing, an increased depreciation rate for the rental projects like in commercial buildings and allowing ''carry on'' of loss from rental income will make a difference. One-time restructuring of loans, allowing external commercial borrowings (ECBs) for the real estate sector and reforms for special economic zones (SEZs), including extending notification date for IT/ Information Technology Enabled Services (ITES) SEZs and withdrawal of MAT are some other demand put forward by NAREDCO which thinks this can go a long way in ensuring green shoots in the real estate sector. Image source4th Indian Cement Review Conference 20214th Indian Cement Review Conference 202117-18 March Click for event info

Next Story
Infrastructure Energy

South West Pinnacle Wins Rs 30 Cr Oman Mining Contract

South West Pinnacle Exploration Ltd has secured a Rs 30 crore contract from Minerals Development Oman (MDO) for mining exploration in concession areas 12B and 13.The two-year project will be carried out via Alara Resources LLC, a JV in Oman. MDO, backed by Oman’s investment authorities, focuses on monetising mineral wealth.The contract covers copper, gold, and chromite and highlights South West Pinnacle’s growing footprint in international exploration and mining services. ..

Next Story
Equipment

Godrej GEG Boosts Intralogistics with AI and Green Tech

Godrej Enterprises Group (GEG) is revolutionising warehouse and factory logistics through its Material Handling Equipment and Storage Solutions arms by integrating AI, IoT, and automation.With 20–25% market share and 85% local sourcing, GEG champions Atmanirbhar Bharat and sustainability. The Chennai plant, a green manufacturing leader, uses RoHS-compliant materials and has slashed energy consumption by 60%.GEG serves e-commerce, FMCG, retail, and cold chains with high-performance racking and electric forklifts. Upcoming IoT-enabled forklifts and telematics solutions aim to improve speed, sa..

Next Story
Infrastructure Urban

Amit Shah Inaugurates Key Projects Across Gujarat

Union Home Minister Amit Shah inaugurated and laid the foundation stone for various projects in Gujarat’s Panchmahal district and Ahmedabad.In Godhra, he inaugurated the Center of Excellence building, sports complex, reservoir, and Miyawaki plantation. In Ahmedabad, he unveiled a new cooperative complex in Adaroda village and a primary school in Juwal.These projects, under the Model Co-op Village scheme, aim to boost education, sustainability, and rural development across the state. ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?