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CREDAI wants loan restructuring, lower GST, dedicated fund for stalled housing projects

Press Trust of India  |  New Delhi 

Faced with liquidity crunch, realtors' apex body Thursday sought one-time restructuring of loans provided to the sector as well as a dedicated fund for the completion of stalled housing projects.

It also demanded reduction in the GST rate for under-construction homes at 8 per cent from the current 12 per cent, besides single-window clearance for projects.

These demands were made by the association at it's second edition of the New Summit in Mysore, Over 1000-member developers and experts from the sector from across the country attended the event. The summit was inaugurated by of Skill Development and Entrepreneurship Ananth Kumar Hegde.

"In view of being subject to both GST and stamp duties, there is a case that the rate of GST on real estate, which stands at 12 per cent, needs to be reduced to 8 per cent across all segments and not just for houses of up to 60 square metres," said in a statement.

The current land abatement rate of 33 per cent is also not adequate in case of metros where land costs up to 70 per cent of the total cost of the unit, it added.

pointed out that lack of implementation of single window clearance in Indian realty space is a major reason for delay in projects. The fast track approval will resolve critical operational issues in the industry and could also reduce prices substantially.

On liquidity crunch, Credai said: "Demonetisation, Real Estate Regulation Act and GST have cast the heavy burden of multiple transitions on the The NBFC crisis has resulted in a liquidity crunch for the Indian with even loans that have been sanctioned facing difficulties in disbursement."

It recommended a one-time restructuring of all to enable the sector to emerge successfully from the multiple transitions.

"Last mile funding for stalled projects through setting up of 'Stressed Assets Reconstruction Fund' for real estate has become a necessity to ensure delivery of housing units to consumers," CREDAI said.

On the growth potential of emerging cities, CREDAI said the future of the Indian lies in these emerging regions, with being a testament to this belief owing to its rapid economic growth in the past few years.

CREDAI said there is no doubt about the need for new urban centres to take the mantle for India's economic growth from the metro cities and put themselves on the map.

elect, said this year's summit in has built on the tremendous success of the inaugural event in

Established in 1999, The Confederation of Real Estate Developers' is the apex body for private in India, representing over 12,000 developers through 23 states and 204 city chapters across the country.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 18:20 IST