A CREDAI
delegation comprising Lalit K. Jain, Chairman, C Shekar Reddy,
President, Sanjeev Srivastva, and Jaxay Shah both Vice Presidents met
with M. Venkaiah Naidu and presented CREDAI’s recommendations on the
theme of ‘Housing for All by 2022.
Confederation of Real Estate Developers’ Associations of India (CREDAI)
which is the apex body representing 9000 housing providers spread across
150 cities and 22 states views the emphasis on housing by the new
Government as a lifeline for the Indian economy owing to the strong
correlation of housing measured at 0.78 with the national GDP. It is
noteworthy that the BJP in its manifesto has promised to roll out a
massive low cost housing programme to ensure that by the time the nation
completes 75 years of its Independence, every family will have a pucca
house of its own.
A CREDAI delegation comprising Lalit K. Jain, Chairman, C Shekar Reddy,
President, Sanjeev Srivastva, and Jaxay Shah both Vice Presidents met
with M. Venkaiah Naidu and presented CREDAI’s recommendations on the
theme of ‘Housing for All by 2022. These recommendations have been drawn
up on the basis of nationwide consultations that CREDAI had among its
members.
Lalit K. Jain, Chairman, CREDAI welcomed the bringing together of
Departments of Housing and Urban Poverty Alleviation and Urban
Development within the same Ministry hoping that it would enable an
integrated view on urban development and housing to emerge. He urged the
Government to implement the reports of the two Task Forces on
Affordable Housing,and Rental Housing and theCommittee to Streamline
Approval Procedures for Real Estate Projects (SAPREP) which is the low
hanging fruit in his opinion. CREDAI in its recommendations has also
sought to reduce the cost of borrowing for the housing sector. This can
be achieved by a mix of interest subvention for the low income borrowers
on the one hand and increasing the access to finance by developers. To
augment the finance for the housing sector, CREDAI has sought the
removal of minimum requirement of 50,000 square meters and capital
requirement of USD 5 million for FDI in case of affordable housing,
automatic ECB and higher refinance from NHB to Housing Finance
Companies.
It is well recognized in a series of judgements that housing is not a
polluting activity. Given this background, CREDAI believes that the
application of environment regulations to housing is a case of overreach
which needs to be immediately done away with. This by itself is
expected to unlock investments of Rs. 5 lakh crore in housing which are stuck for want of environment clearances.
Housing also faces a disproportionate incidence of taxes amounting to
more than 35% of the cost of a completed unit. This can be partially
alleviated by giving the tax treatment of SEZs to affordable housing
projects and providing benefits under Section 35 AD to the real estate
sector. Increasing threshold limits of deduction on interest to Rs. 5
lakh on housing would provide incentive to the home owners. A
dispensation is required to ensure that the subsidies provided to the
North East reach the ultimate beneficiaries. CREDAI believes that by
accelerating investments and increasing employment, the higher growth in
GDP would mean that these measures would enhance the tax base of the
economy and be revenue positive even in the short run .
Jaxay Shah, Vice President CREDAI stated that inspired by the promise of
housing for all, CREDAI would take the message of the Government right
down to the states and the cities by making housing a movement. CREDAI
would be organizing conferences and conclaves involving all stakeholders
based on the theme of housing for all throughout the year.
|
No comments:
Post a Comment