Mishra was speaking at a webinar organized by real estate developers' association Naredco, where representatives put forward their demands and grievances, highlighting issues that are impacting the industry
Bengaluru: The disruption in construction activity and business due to the ongoing pandemic, housing and urban affairs secretary Durga Shanker Mishra on Friday said the government will look into various demand of the real estate sector, including an extension of timeline for project completion by 6-9 months.
Mishra was speaking at a webinar organized by real estate developers' association Naredco, where representatives put forward their demands and grievances, highlighting issues that are impacting the industry.
The association not only sought extension of timeline for completion of projects under the regulatory body RERA but also extension of all building permissions till March 2023, rationalization of government taxes on real estate, and control of rising prices of cement and steel.
It asked for the return of interest subvention schemes, grant of input credit tax on Goods and Services Tax (GST) paid in leased commercial real estate, suspension of insolvency law for some more time and an online environment clearance system.
On further extension of timeline for project completion, Mishra mentioned that this was offered last year due to the national lockdown.
“If need be, we will take this matter to RAC (RERA Advisory Council)," Mishra said. However, he added that this relief was given last year because of the imposition of the national lockdown.
On high taxes levied by the central and state governments on real estate, Mishra said, “We will try to reduce government levies."
Tata Realty and Infrastructure Ltd (TRIL) MD and CEO Sanjay Dutt said cement and steel prices have abnormally risen in the past one year. He also requested for the reintroduction of interest subvention scheme, in which developers agree to pay the EMI on behalf of homebuyers for a certain period.
On steel and cement price rise, Mishra said he took up this issue with the ministry’s concerned and would discuss the issue again.
On PMAY, he said 1.13 crore houses have already been sanctioned and out of that, 48 lakh have been completed and handed over to the people. The secretary informed that India’s ranking in ease of doing business related to construction activities improved to 27 from 186.
Naredco chairman Rajeev Talwar said all permission related to the development of projects should be valid till March 2023.
The government has taken various initiatives in the past seven years including the development of 1.12 crore houses under the Prime Minister Awas Yojana (PMAY) scheme, launch of the affordable rental housing complex scheme for migrant workers, ‘infrastructure’ status to affordable housing and 100 smart cities, Mishra pointed out.
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