With sluggish home sales that are affecting liquidity of the developers, real estate’s apex body National Real Estate Development Council (NAREDCO) on Wednesday has sought single-window approval as well as tax sops for affordable homes.
Besides, restructuring of bank loans is a part of its pre-budget recommendation to the Government for revival of the sector. The NAREDCO has also demanded infrastructure status for the housing sector which would help the developers to get bank loans at less interest rate.
“We have submitted our pre-budget memorandum to the Finance Ministry and Housing and Urban Poverty Alleviation. We have demanded infrastructure status for housing and single- window approval for realty projects,” NAREDCO President Parveen Jain told reporters here.
“The single-window approval for projects would help the developers in completing the projects on time,” he added. With sluggish sales affecting liquidity of the developers, NAREDCO's Navin Raheja said the developers should be given moratorium for repaying bank loans. However, Jindal Realty Managing Director & CEO Gaurav Jain said, “Housing for all should be achieved by 2022 once the impediments from the sector are removed. There is a shortage of 60 million home across India of which 40 million in urban areas. Therefore, we need the Government's help to achieve the target.”
To boost affordable housing, the association demanded that the Sec 80 IB (10) should be reintroduced in the upcoming budget for 2016-17 fiscal. This section allowed 100 per cent exemption of income tax on housing projects with a maximum built up area of 1,000 sq ft in Delhi and Mumbai, and 1,500 sq ft in other places.
“All affordable housing projects as defined in Prime Minister Awas Yojna should be brought under 80IB (10),’ Raheja said, adding that about 2 crore homes need to be developed by 2022. He expected that the proposed real estate regulatory law would boost customers’ confidence.