Finance Minister Sitharaman meets real estate delegation: Revival plans discussed
Representatives of the real estate sector met the Minister of Finance, Nirmala Sitharaman on Sunday seeking a special package for the revival of the industry and to discuss the matter of urgency.
The meeting was attended by the minister of state for finance and related government officials. The industry delegation included Confederation of Real Estate Association of India (Credai) The National Real Estate Development Council (Naredco) and Forum for People’s Collective Efforts (FPCE).
The delegation discussed issues ranging from stalled projects and last-mile funding, NBFC crisis, taxes. The minister is said to have given a patient hearing on the matters discussed by the delegation.
Naredco president Niranjan Hiranandani said that infrastructure and real estate have proven to be the catalyst in economic growth and job creation not only in India but across the world.
He said that “Liquidity crisis and the need for tax rationalization are two major challenges facing India’s real estate and infrastructure industry, and quick resolution of the same would go a long way in enabling Indian real estate and infrastructure to play its role in enhancing GDP growth, as also creating jobs”.
While Credai asked for higher power to the Real Estate Regulatory Authority so that it could resolve the several issues. It also advocated for bringing in institutional investor under the regulatory authority.
“The meeting, being held on a Sunday morning, indicates the sense of earnestness and urgency. Immediate and positive steps from the government will enable developers to contribute…to achieving PM’s vision of ‘Housing for All by 2022’,” said the chairman of Credai, Jaxay Shah.
The delegation also pleaded for the creation of a Rs 10,000 crore ‘Stress Fund’ to complete halted real estate projects across the country. The also requested to increase in the affordable housing limit to Rs 1 crore in metro cities from Rs 45 lakh and to restore 8% GST so that the burden on consumers could be reduced.
After the IL&FS crisis, last year created the NBFC fund lending crunch. This has hit real estate’s recovery and has pressurised the property prices. There are at least 17,000 stalled homes in top 7 cities across India.