Nationalist Congress Party (NCP) chief Sharad Pawar has sought Prime Minister Narendra Modi’s intervention to take immediate measures for the revival of realty sector, which is badly hit because of the pandemic.
“Amidst the unprecedented COVID-19 pandemic and consequent nationwide lockdown, the real estate sector is in a state of complete breakdown. Massive outflux of labourers, halted work and sale for almost three months, stagnant consumer demand and impaired economic activities have taken a toll on this industry, which contributes substantially to the national GDP,’’ said Pawar.
The former union minister said that the realty sector’s representative body, the Confederation of Real Estate Developers’ Association of India (CREDAI), had already submitted its representation to the Centre demanding relief. CREDAI has pressed for a one time restructuring of loan, additional institutional funding, waiver of penal interest and policy innovations to trigger consumer demand, controlling cartelisation of raw material, changing the criteria of affordability for GST applicability, and the operationalisation of SWAMIH FUND, which is a special window for the completion of construction of affordable and mid-income housing projects.
Further, CREDAI has also urged RBI to issue appropriate directions to the banks to pass on the benefits of the rate cuts to non-banking finance companies and housing finance companies to enable them to lend to the realty sector at a lower rate of interest.
“I shall be grateful if you personally look into the matter and initiate necessary measures for the revival of one of the important sectors of the economy,’’ said Pawar.
Awhad assures help to ensure redevelopment projects take off
Maharashtra Housing Minister Jitendra Awhad said, in the event of space constraints for new development in Greater Mumbai, the redevelopment of slums, Maharashtra Housing and Area Development Authority (MHADA) buildings and other cessed buildings in Dharavi, Kamathipura and Gowadi is the way forward for the realty industry. He assured the government help to ensure that redevelopment activities get off the ground. He urged the big project architects to step up with design needs.
In a web interaction organised by the BrihanMumbai Developers Association, Awhad promised that project permissions will be given in 30 days, failing which a provisional approval will be deemed to be given.
Post COVID-19, the minister hinted that the government may consider some concessions for next two years to enable the revival of the realty sector. He said the government may bring in subsidy policies and caps on original residents’ consents before moving on redevelopment proposals.