Realtors, industrialists bank on upcoming budget for relief

City-based industries and businesses that are still reeling under the after-effects of the Covid-19-induced lockdown last year are expecting the Haryana government to announce relief measures in the upcoming state budget

City-based industries and businesses that are still reeling under the after-effects of the Covid-19-induced lockdown last year are expecting the Haryana government to announce relief measures in the upcoming state budget. Representatives of various organisations are hopeful of some relief to stakeholders as well as a boost to consumer sentiments.

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While the real estate industry, which is trying to make a comeback, wants tax cuts and stamp duty reduction, factory owners are seeking a package for small and medium industry to overcome the impact of the lockdown.

The first budget since the lockdown will be presented by chief minister Manohar Lal Khattar on Friday. Khattar had met industry leaders in Gurugram and Manesar on February 13 and 14, and taken feedback from the stakeholders over their expectations for the forthcoming budget. He had subsequently announced that the feedback would be taken into consideration while formulating the budget.

Prashant Solomon, the spokesperson for the Confederation of Real Estate Developers’ Associations of India (CREDAI), NCR, said that the government should try to cut stamp duty and taxes, which constitute almost 25% of a real estate cost and also create a mechanism to ease terms for finance to execute projects. “Neighbouring states have reduced taxes but Haryana has a higher rate, which makes housing expensive. Also, there is a need to create investment options like Reits (real estate investment trust) so that retail investors can put money in residential realty,” he said.

Developers and industry leaders also want the Haryana government to review the local job quota introduced recently. “Entire labour force in the construction industry and allied works comes from outside. This move will greatly impact real estate and other industries and must be reviewed. The recent move to increase the tax on property registration in municipal areas is also a regressive move,” said Praveen Jain, vice-chairman, National Real Estate Development Council.

Owners of factories engaged in manufacturing processes based in Udyog Vihar and Manesar want the government to provide easy funds for upgrading technology and machinery, measures to reduce pollution in industrial areas and also financial support to switch to green technologies. Associations have also sought that the government regularise non-conforming industrial areas as promised in 2017 and improve infrastructure in the industrial estates.

JN Mangla, president, Gurgaon Industrial Association, said that industrial zones in non-conforming areas should be regularised and infrastructure in industrial estates and Industrial Development Centre, Gurugram, should be upgraded on priority. “Conversion charges for converting from industrial to commercial plots is very high at present and needs to be reduced. The augmentation charges for use of increased FAR should also be reduced. A relief package for the industry is the need of the hour,” he said.

Deepak Maini, general secretary, Federation of Indian Industry, Haryana chapter, said that there is a need for budgetary support to upgrade machinery, allocate for pollution control and infrastructure augmentation in non-conforming industrial zones. “The government needs to take steps to ensure manufacturing remains competitive and sustainable if it wants the state to prosper, and see job growth. Special measures will have to be taken so that pollution is curtailed and industry can switch to green fuels,” he said.

Many city-based factory owners also want the government to announce welfare measures for workers who are staying in unauthorised colonies and rented accommodation in villages. “There is a need to announce some monetary benefits for workers by the government, apart from what the industry is contributing to insurance and provident fund. There is a need to announce measures for promoting industrial and rental housing on a large scale,” said Pawan Yadav, president, IMT Industrial Association.