'Come up with solutions': Gadkari asks realtors to give plan for revival

Develop mass housing projects in tier 3 and 4 cities, minister tells industry association.

Union Roads and Highways Minister Nitin Gadkari on Tuesday asked the realty sector to submit a feasibility study proposal on a one-time restructuring package.

"Your (developers) concerns are legitimate and genuine and the issues raised need to be dealt with at various levels including the municipal bodies, state government and the Centre. To keep the sector alive, we need to collectively think about the measures to deal these issues," he told the CREDAI-MCHI, a collection of Maharashtra associations, in a video conference.

During the meeting, Credai MCHI President Nayan Shah also sought a one-time restructuring package for developers along with a stimulus package on GST as well as interest incentive for flat buyers.

"You need to give me a feasibility study proposal on how this restructuring can be done. Also, on GST, you need to come up with solutions on what can be done so that the taxes already paid can be utilised till the financial situation of developers improves," Gadkari said.

Citing MahaRera data, Shah said that out of the 10,200 registered under construction projects, nearly 40 per cent are expected to face time overruns.

The ongoing lockdown necessitated to curb the spread of COVID-19 pandemic has brought all economic activities to a sudden halt.

In Maharashtra, all the real estate related construction activities were stalled from March 21, 2020.

"If immediate measures are not taken, developers will become bankrupt," Shah added.

Gadkari said, the "development of real estate is very critical to boost the economy. We have taken a number of measures to boost the sector, however, we have not seen the results as we expected. So we will have to think about other measures. Once you submit me the report, I will take it up with the finance ministry."

He also suggested that developers need to shift their focus from key metros to tier 3 and 4 cities as well to develop mass housing projects.

"While the government is doing its bit, I feel even the developers should not restrict themselves to key metros but should develop mass housing projects in tier 3 and 4 cities as well. We are working on schemes like 'smart villages' where we can provide land to developers for free and they can build affordable homes along with commercial spaces," the minister said.