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CREDAI demands infrastructure status for real estate sector
In view of a massive investment requirement, the apex body of real estate developers said this would enable banks to finance housing projects for economically weaker sections at low interest rates.
In view of a massive investments required for housing and urban development, the apex body of developers on Monday asked Government to accord infrastructure status to the real estate sector which would enable banks to finance housing projects for economically weaker sections at low interest rates.
Citing that Rs 1,51,000 crore and Rs 2,50,000 crore were required for housing and urban infrastructure, Confederation of Real Estate Developers' Association (CREDAI) demanded that employers, providing housing facility to the low income group employees, be given tax incentives.
Granting infrastructure status to real estate development would induce banks to finance viable projects for low income group at a competitive rate of interest, CREDAI said in its pre-Budget memorandum.
The interest rate subsidy for low-income housing schemes and liberal criteria should be applied before treating a loan under such category as NPA, it added.
Seeking exemption of stamp duties on low-income housing projects, it said "stamp duty be exempted for registration of houses for such projects".
It advocated hassle-free, lower interest and low margin money loans for economically weaker sections with monthly income of below Rs 2,500 and low income group in the income bracket of Rs 6,000-7,000.
Provision should also be made for banks to provide construction advance or working capital to developers on the lines of institutional loans, it said.
The apex body sought sops for setting up multiplexes in order to boost the ailing entertainment industry as well as the sluggish construction industry.
On FDI norms, the real estate developers' body asked for relaxing the existing stipulation of 100 acre for FDI inflow in integrated township projects to 20 acre with three years lock-in period.
