Centre ready to announce relief to realtors

Housing and Urban Affairs Secretary Durga Shanker Mishra has informed that the Central government is looking into various demands of the real estate industry. The demands included an extension of timeline for the completion of projects by 6-9 months under the realty law RERA, extension of all building permissions till March 2023, rationalization of government taxes on real estate, and control of rising prices of cement and steel. It also sought reintroduction of interest subvention scheme, grant of input credit tax on GST paid in leased commercial real estate, suspension of insolvency law for some more period and an online environment clearance system. On high taxes levied by the central and state governments on real estate, the ministry's senior officials were directed to examine the matter in detail and assured to reduce government levies. Regarding a rise in prices of steel and cement, the government and ministries concerned would discuss the issue again. The secretary said the real estate sector contributes seven per cent to the gross domestic product (GDP) and is a USD 200-billion industry and set to become a USD 1-trillion sector with rapid urbanization. Emphasizing on affordable housing, Mishra said that the highest housing demand is in the economically weaker section (EWS) and low-income group (LIG), and observed that millennials also want 2-3 BHK flats and not bungalows. Talking about the Central Vista Project, the new Parliament building will be ready next year. He also rubbished criticism about this project. At the outset, NAREDCO President Niranjan Hiranandani said the construction activities have slowed down because of the second wave, as only 50 per cent labourers are working on sites. He suggested that timelines for the completion of projects should be extended like last year.