UP industry minister assures help for Noida’s realty sector

Mahana interacted with developers through video-conferencing to discuss issues that cropped up after construction sites were shut down due to the lockdown.

The Uttar Pradesh industry minister Satish Mahana has assured developers that the state government will address the crisis in the real estate sector in Noida, Greater Noida and Yamuna Expressway areas due to the nationwide lockdown in the wake of the Covid-19 pandemic.

Developers said that the state government should take immediate decisions if they want the sector to be revived. (Photo by Parveen Kumar/Hindustan Times)

Mahana interacted with developers through video-conferencing to discuss issues that cropped up after construction sites were shut down due to the lockdown. Several developers from the National Real Estate Development Council (NAREDCO) and the Confederation of Real Estate Developers Association of India (Credai), two builders’ associations, participated in the webinar that took place on Wednesday evening. Alok Tandon, industrial and infrastructure development commissioner, Uttar Pradesh government, also participated in the webinar that was organised to discuss various issues facing the real estate sector.

The developers’ demands include mortgaging unsold stock (ready flats), the reduction of interest on project loans, waivers of interest on land cost dues if civic amenities are delayed, a waiver on time-extension charges, financial dues de-linked from occupancy certificate issuance, the postponement of financial dues on housing projects, a waiver in stamp duty for one year, the reduction of prevailing impractical circle rates (property cost at which flats or plots are sold) to boost sales, and a waiver on electricity charges for builders during the lockdown period, among others.

Developers said that the state government should take immediate decisions if they want the sector to be revived. There are at least 600 ongoing housing projects in Noida, Greater Noida and the Yamuna Expressway areas said the UP real estate regulatory authority. And at least one lakh homebuyers’ investments in these projects are at stake. As per NAREDCO, there are at least 5 lakh skilled, semi-skilled and unskilled workers employed to work on different projects in Noida, Greater Noida and Yamuna Expressway areas. And at least 2 lakh employees have been employed by 200 developers, who are operating from Noida, Greater Noida and Yamuna Expressway areas.

“We need the state government to make quick decisions so that we can survive. If the state government accepts our demands, then it will help at least 2 lakh employees working on real estate projects and 1 lakh homebuyers earn their livelihoods without hassles. If these issues are not resolved then the sector will witness an unprecedented deadlock due to the lockdown given the Covid-19 pandemic,” RK Arora, president of the Uttar Pradesh chapter of NAREDCO, said.

Builders from across the state participated in this webinar.

“There are at least 5 lakh skilled, semi-skilled and unskilled workers employed to work on different real estate sites. If the issues of this sector are not resolved then it will worsen the economic crisis. But we hope that government will look into our demands,” Prashant Tiwari, president of the western UP chapter of Credai, said.