UP constitutes panel to reboot real estate sector amid coronavirus crisis

At a time when the real estate sector facing stress due to the Covid-19 lockdown and flight of labour, the Uttar Pradesh government has constituted a panel to resolve the woes of builders and real estate developers.

According to UP industrial development minister Satish Mahana, the panel has been asked to analyse the ground situation of realty and submit a report within a week for possible action.

“The realty sector was already facing problems and now the lockdown has posed fresh challenges. I have asked the UP infrastructure and industrial development commissioner (IIDC) and the heads of the industrial development authorities to look into their urgent issues and submit a report,” he told Business Standard on Friday.

A large number of housing and commercial projects are lying stuck in UP. Besides, the ongoing projects are also witnessing cancellations by investors and buyers because of the dip in earnings following the shutting down of commercial and industrial activities.

Mahana observed the growth of real estate was key to the sustainability of the entire economic value chain in UP apart from generating employment and providing affordable houses to the consumers. “The state has to balance both the demand and supply sides of the real estate sector,” he said.

In this regard, Mahana had recently interacted with the members of the Confederation of Real Estate Developers’ Association of India (CREDAI) via videoconference and informed them that the state was considering the proposal of paring interest rate charged from builders.

Observing that the coronavirus pandemic had hit the realty sector hard, he assured developers that the government was taking a slew of measures to overcome the crisis and that the suggestions of real estate players would be considered for speedy implementation, if possible.

For example, the state has decided to promote the setting up of private industrial parks in smaller cities too, for which the relevant policy would be amended to incorporate the new provision. Such private industrial enclaves could be developed on 25 acres of land.

UP Real Estate Regulatory Authority (RERA) has also launched a videoconference platform ‘RERA Samvaad’ to address the grievances of homebuyers and other stakeholders, especially against the backdrop of the lockdown and resulting issues.

Meanwhile, Chief Minister Adityanath has stressed upon reviving the industrial activities and directed officials for simplifying the
sectoral policies.

He underlined the need for arranging a land bank for allowing the setting up of industries. The state revenue and industrial development departments have been asked to prepare a composite roadmap for increasing the availability of suitable land.

Against the backdrop of reports that global corporations are exploring options to move out of China, the government has stepped up efforts to woo them. The government has kick-started the process of holding discussions, over videoconference, with ambassadors of foreign countries, global business entities and representatives of companies.