Housing and Urban Affairs secretary has recently confirmed that government will consider the demands coming from the real estate industry like an extension of timeline for project completion by 6 to 9 months. He also talked about various initiatives taken by government in the last seven years like development of 1.12 crores houses under PMAY launch of affordable rental housing complex scheme for migrant workers. It also included infrastructure status to affordable housing, and 100 smart cities.
Mr. Mishra spoke about all this in a webinar organized by NARDECO. There NARDECo’s representatives made various demands before Mishra for the revival of both demand and supply in the sector which was badly affected by the COVID-19 Pandemic. Majorly, the association members wanted extension for project completion by 6 to 9 months under RERA, extension of all building permissions until March 2023. They also demanded for the rationalization of government taxes on real estate, and control of rising prices of steel and cement. The association also had sought reintroduction of interest subvention scheme, suspension of insolvency law for some more time, permission for input credit tax on GST in leased commercial real estate, as well as demand for an online environment clearance system.
Mishra has confirmed that he will go in detail as far as project completion timeline extension is concerned. He further added “If need be, we will take this matter to RAC (RERA Advisory Council),”. However, it has been cleared by the secretary that this relif was given last year due to the imposition of the national lockdown. On the matter of high taxes imposed by central and state government, Mishra has asked the Ministry’s senior officials to look into the matter. He also said “We will try to reduce government levies,”. As far as rise in the prices of steel and cement is concerned. Mishra has said that he had took this issue in front of the ministry’s concerned person and would discuss the issue again. He also said that “on the PMAY, 1.13 crore houses have already been sanctioned and out of that, 48 lakh have been completed and handed over to the people”. He told that India’s rank as improved to 27 from 186 in ease of doing business in construction activities.
He added that “the real estate sector contributes seven per cent to the gross domestic product (GDP). It is a USD 200-billion industry and set to become a USD 1-trillion sector with rapid urbanization”. Looking at the affordable housing situation Mishra has said that the highest housing demand is in economically weaker section (EWS) and low-income group (LIG), and observed that the millennial also wants 2BHK–3 BHK flats and not bungalows.
NAREDCO President Niranjan Hirananadani says “ the construction activities have slowed down because of the second wave, as only 50 per cent labourers are working on sites. He demanded that timeline for completion of projects should be extended as it was done last year”. NARDECO Chairman said all the permissions related to the project development should be valid till March 2023.
NARDECO is one of the vital associations for the realty sector with around 5,000 members.