Financial Package: Real Estate Industry upbeat
Chief Strategy Officer, Tata Projects, Himanshu Chaturvedi, stated that the Government's Atmanirbhar Bharat initiative has recognised “Infrastructure” as one of the five pillars. This is an acknowledgement of the sector's key role in India's development and large scale employment generation. The extension of up to six months to be given by GoI agencies is a welcome move since many projects across the nation were affected due to the sudden disruption caused by the pandemic. Director ABA Corp & President Elect CREDAI Western UP, Amit Modi, said that extension of the registration and completion date suo-moto by 6 months for all registered projects expiring on or after 25th March, 2020, will help the developers from going into default for some time, but specific steps for liquidity generation in the Real Estate Sector is the real need of the hour.
Arvind Subramanian, CEO, Mahindra Happinest, commented that good quality and affordable housing is a basic human need and a public health enabler. The government's #AtmaNirbharBharat initiative is visionary and brings to the fore the social and economic significance of India's real estate sector. The easing of RERA provisions, especially the six-month extension, will help developers plan their operations and ease the disruption caused by the pandemic. This is important since social distancing measures and the restriction of movement at construction sites is expected to impact project timelines. Bhairav Dalal, Partner and Leader Real Estate Tax, PwC India, said that the industry is clearly looking for much more, especially on the fiscal side. The current biggest challenge for the industry is liquidity and some clear measures are needed to address the same.
Pradeep Aggarwal, Founder & Chairman –Signature Global Group & Chairman - ASSOCHAM National Council on Real Estate, Housing and Urban Development, stated that the relief provided to the common man under EPF will help buyers in the affordable category. With extra disposable income, these beneficiaries of the announcement made by the FM will go for buying real estate assets. Other announcements regarding extending the timelines under RERA authority will help in providing relief as buyers will understand the reason behind delivery date extension.
Rajat Goel, JMD, MRG World, said that the announcements made by FM Nirmala Sitharaman under the Self- Reliant India Movement have eased the developments for the real estate sector. "We welcome the government's measure for understanding our position in this difficult time and helping us maintain positive relations with our customers. Post- COVID scenario has been eased out for us, and we would be looking forward to complete our projects under this new timeline, with due support from RERA and Urban Ministry authorities," he said.
Said Harvinder Singh Sikka, MD, Sikka Group, " COVID-19 has been a clarion call, globally. We are very thankful for Govt. of India's proactive support to the real estate industry. Declaration of COVID-19 as an 'act of God' under regulatory authorities, pushing the dates of registration and completion suo-moto by another 6 months for the projects expiring on and after 25th March,2020 will prevent the developers from defaulting. Even post-lockdown, the procurement of raw materials and presence of labour in full force will be some setbacks leading to delay in work at construction sites. An extended timeline will provide an opportunity for developers and contractors to plan ahead with a closer understandingof the situation."
Vijay Verma, CEO, Sunworld Group, stated that real estate sector has always been in a hustle for delivering projects within the timelines, procuring timely approvals from authorities and departments. "We are grateful for the government's intervention with reduced repo rates, resumption of construction activities, extended timelines for registered projects, and an additional extension of 3 months for projects by RERA. They will be de-stressing the developers and providing assurance to homebuyers for timely deliveries. A foresighted approach for issuing fresh 'Project Registration Certificates' automatically with revised timelines, reflects hope for a promising future."
Uddhav Poddar, MD, Bhumika Group, commented, “We welcome the announcements made by Hon'ble PM and FM, and hope for speedy implementation of all of these as the economy is already in the ICU state. Real estate is one of the largest employment generators. It welcomes the reliefs pertaining to extension of project completion deadlines, but the main concern today is of liquidity and for that there needs to be a direct push to banks and NBFCs to lend to this sector. Overall, a very positive but quick implementation would be key.”
Yash Miglani, MD, Migsun Group, stated that the sector has been requesting the government for measures to help maintain the good image of the real estate sector that has emerged more strongly after the government came with RERA. The latest 'Act of God' would have wiped out all the positive efforts made by the developers towards streamlining the sector. In this backdrop, the announcements made by the FM will help the sector save it's hard-earned image.
Amit B Wadhwani, MD, Sai Estate Consultants Chembur, said, "The announcement made by our honorable Finance Minister on extension of registration and completion date of projects registered under RERA is a positive move as it gives some relief to ensure completion of pending projects. For the revival of the sector under several restrictions and to infuse liquidity, we look forward to more such steps as the real estate sector is a significant contributor to the GDP. However, to kick-start the construction activities, we need labour support. Apart from procuring raw materials and their increased prices, labour crunch is going to be a potential crisis, and cannot be ignored by the industry or by the various sectors affected."
Published on:
14 May 2020
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