Real estate developers met finance minister Pranab Mukherjee on Thursday to press for incentives in the forthcoming budget to boost housing. Among their key demands was a plea to allow external commercial borrowings (ECBs) for home builders.
Rajeev Talwar, group executive director of the real estate major DLF and Pradeep Jain, president Credai (Confederation of Real Estate Developers Association of India) were among the industry leaders who met the FM.
Among the many demands realtors have asked for continuation of tax holiday under section 80IB(10) for projects approved between April and March 2008 and completed before March 31, 2012.
The industry wants a renewal of Sec 80 IB, which gives tax waivers to homes measuring less than 1,000 square feet in area. The concession was available before 2007.
Credai pressed for developers to access ECBs. At present ECBs are not allowed for housing development. “ECB in housing construction will be supplemental to the funds from banks and financial institutions and in the long term will reduce the cost of finance thereby reducing the price of houses in the country,” said the Credai’s charter of demands.