+
Budget expectations 2021: NAREDCO
ECONOMY & POLICY

Budget expectations 2021: NAREDCO

In our CW Budget 2021 series, we cover expectations from associations that represent our industries. Here is a list of expectations from Budget 2021 from National Real Estate Development Council (NAREDCO), the autonomous self-regulatory body set up in 1998 under the Ministry of Housing and Urban Affairs, Government of India.

NAREDCO believes that rental housing will play a vital role in achieving the target of ‘Housing for All’ by 2022. Some of the salient points in NAREDCO’s recommendations resonate with that projection. They are as follows:

  • Grant tax incentives to boost the segment.
  • More measures to ease the liquidity situation in the long-subdued real estate segment, including the one-time roll-over of loans given to developers.
  • No rent to be taxed for the period up to five years from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority.
  • Restructuring of loans or one time roll-over in case of the stressed assets at the options of banks. In such cases, the borrower will retain the asset classification of the restructured standard accounts as standard and the same will not be treated as NPA.
  • Interest rates on home loans should be below 7% per annum.
  • Stamp duty rates to be reduced by 50 per cent for all the real estate transactions entered and agreements registered on or before 31 March 2020.
  • Relaxation to be sought in the definition of affordable housing. The Rs 45 lakh price cap for the classification of a property as affordable housing to be done away with as it keeps most of the projects in the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) out of the ambit of “affordable housing”.

In our CW Budget 2021 series, we cover expectations from associations that represent our industries. Here is a list of expectations from Budget 2021 from National Real Estate Development Council (NAREDCO), the autonomous self-regulatory body set up in 1998 under the Ministry of Housing and Urban Affairs, Government of India. NAREDCO believes that rental housing will play a vital role in achieving the target of ‘Housing for All’ by 2022. Some of the salient points in NAREDCO’s recommendations resonate with that projection. They are as follows: Grant tax incentives to boost the segment.More measures to ease the liquidity situation in the long-subdued real estate segment, including the one-time roll-over of loans given to developers. No rent to be taxed for the period up to five years from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority.Restructuring of loans or one time roll-over in case of the stressed assets at the options of banks. In such cases, the borrower will retain the asset classification of the restructured standard accounts as standard and the same will not be treated as NPA.Interest rates on home loans should be below 7% per annum.Stamp duty rates to be reduced by 50 per cent for all the real estate transactions entered and agreements registered on or before 31 March 2020. Relaxation to be sought in the definition of affordable housing. The Rs 45 lakh price cap for the classification of a property as affordable housing to be done away with as it keeps most of the projects in the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) out of the ambit of “affordable housing”.

Next Story
Infrastructure Energy

UERC Rejects Pleas Over Cancelled 200 MW Solar Awards

The Uttarakhand Electricity Regulatory Commission (UERC) has rejected review petitions filed by 12 solar developers against the cancellation of Letters of Award (LoAs) issued under the state’s 200 MW Solar Programme.The scheme, launched by the Uttarakhand Renewable Energy Development Agency (UREDA) under the 2013 solar policy, aimed to help Uttarakhand Power Corporation Ltd (UPCL) meet its renewable purchase obligations through tariff-based competitive bidding.The projects—classified under the Type I category—had original commissioning deadlines in 2019–2020, later extended multiple ti..

Next Story
Infrastructure Energy

Solarium Wins Rs 266 Million Rooftop Solar Orders

Solarium Green Energy has secured two significant work orders valued at a combined Rs 266 million for rooftop solar projects across various locations in the Northeastern States, under the Ministry of Home Affairs.The first order, worth approximately Rs 129.8 million, was awarded by NTPC Vidyut Vyapar Nigam Limited (NVVN) for the development of a 3,319 kW rooftop solar photovoltaic (PV) project. This was tendered under the NVVN’s “Selection and Discovery of L1 Rates for Rate Contract for EPC of Grid Connected Rooftop Solar PV Projects (51–200 kW) across India”. The project is scheduled ..

Next Story
Real Estate

Omaxe Secures Rs 5 Billion From Oaktree For Expansion

Omaxe Group has raised Rs 5 billion in funding from Oaktree Capital Management LP, a global investment firm specialising in alternative investments, to fuel the development of ongoing projects and support future growth plans.In a regulatory filing dated 28 July, the company confirmed that the funds will support construction and infrastructure development across key markets, including New Chandigarh, Lucknow, Ludhiana, and Faridabad. The capital will also be directed towards flagship projects such as Omaxe State in Dwarka, an upcoming integrated township in Amritsar, and a new township in Indor..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?