A single-window clearance system can help speed up the execution of projects
Real Estate

A single-window clearance system can help speed up the execution of projects

Across the landscape of Bengaluru, Hyderabad and five other Indian cities, the Salarpuria Sattva Group is a name that’s made its indelible mark. With the Union Budget 2020 being announced tomorrow, Bijay Agarwal, Managing Director, Salarpuria Sattva Group, shares his expectations on the Budget:

“Last year, Modi 2.0 was extremely supportive of the real estate sector and the budget was instrumental in introducing various schemes, policies and guidelines, which were beneficial for both, developers and consumers – whether it was rate cut of housing interest, NHB guidelines or affordable housing schemes. 

The primary concern that needs to be addressed is the significant funding crisis. The budget should ease norms to ensure steady flow of investments. Although benefits for affordable housing have been provided, developers are unable to receive funding from major banks and NBFCs at lower interest rates. 

As we are aware, due to the lending market being cautious, mainly NBFC sector and banks, purchase of land has become very difficult since the last one and half years. The real estate developer can still use an alternate source of acquisition of property, which is Joint Development Arrangement with the landlord, to avoid large capital commitment. But due to lack of clarity on GST, even this alternative source has been totally ineffective and causing huge delay in proper supply of land for developers to carry out the development work. Thus, the impact on other industry employment will also be required to be kept in mind. Hence, few changes in GST can provide a huge positive impact in the real estate industry for all sectors, ie, residential, commercial, retail, IT offices, affordable housing, warehousing, etc: 

a) Waiver on applicability on GST (if intended to be applicable) on Transfer Development Right (TDR) on Joint Development Arrangement.
b) Allowing of input of commercial GST during construction period against the rent receivables.  

Both of the above changes in the nature of clarification or amendment would bring huge positivity and clarity for the real estate industry and the impact can be visibly seen in a short period in the form of commencement of number of projects across the cities.

Industry status to the real estate sector will further boost the increasing of low-cost funds, cut capital costs and make land acquisition easier, passing the benefits to consumers. A single-window clearance system can help to speed up the execution of projects. We also expect the implementation of land reforms and increased liquidity to NBFCs will lead to investors. If real estate industry gets a boost, it will automatically have a positive impact and will accelerate the economic growth of the country and in turn the GDP.”

Across the landscape of Bengaluru, Hyderabad and five other Indian cities, the Salarpuria Sattva Group is a name that’s made its indelible mark. With the Union Budget 2020 being announced tomorrow, Bijay Agarwal, Managing Director, Salarpuria Sattva Group, shares his expectations on the Budget:“Last year, Modi 2.0 was extremely supportive of the real estate sector and the budget was instrumental in introducing various schemes, policies and guidelines, which were beneficial for both, developers and consumers – whether it was rate cut of housing interest, NHB guidelines or affordable housing schemes. The primary concern that needs to be addressed is the significant funding crisis. The budget should ease norms to ensure steady flow of investments. Although benefits for affordable housing have been provided, developers are unable to receive funding from major banks and NBFCs at lower interest rates. As we are aware, due to the lending market being cautious, mainly NBFC sector and banks, purchase of land has become very difficult since the last one and half years. The real estate developer can still use an alternate source of acquisition of property, which is Joint Development Arrangement with the landlord, to avoid large capital commitment. But due to lack of clarity on GST, even this alternative source has been totally ineffective and causing huge delay in proper supply of land for developers to carry out the development work. Thus, the impact on other industry employment will also be required to be kept in mind. Hence, few changes in GST can provide a huge positive impact in the real estate industry for all sectors, ie, residential, commercial, retail, IT offices, affordable housing, warehousing, etc: a) Waiver on applicability on GST (if intended to be applicable) on Transfer Development Right (TDR) on Joint Development Arrangement.b) Allowing of input of commercial GST during construction period against the rent receivables.  Both of the above changes in the nature of clarification or amendment would bring huge positivity and clarity for the real estate industry and the impact can be visibly seen in a short period in the form of commencement of number of projects across the cities.Industry status to the real estate sector will further boost the increasing of low-cost funds, cut capital costs and make land acquisition easier, passing the benefits to consumers. A single-window clearance system can help to speed up the execution of projects. We also expect the implementation of land reforms and increased liquidity to NBFCs will lead to investors. If real estate industry gets a boost, it will automatically have a positive impact and will accelerate the economic growth of the country and in turn the GDP.”

Next Story
Infrastructure Urban

Larsen & Toubro Secures Contract from Defence Ministry

The Ministry of Defence, Government of India, has awarded a significant contract to Larsen & Toubro (L&T) for supplying K9 Vajra-T Artillery Platforms to the Indian Army. As per the company's project classification, the contract is valued between Rs 50 billion and Rs 100 billion. The K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform, is an adaptation of the globally renowned South Korean K9 Thunder howitzer. It has been co-developed by L&T and Hanwha Aerospace to meet the Indian Army's specific operational needs across diverse terrains, including deserts, plains, and..

Next Story
Real Estate

Delhi-NCR Housing Market sees 25% Sales Growth

The Delhi-NCR property market has maintained its momentum during the December quarter, with housing sales and new supply estimated to grow by 25 per cent and 59 per cent, respectively, as reported by PropEquity. Data from the real estate analytics firm suggests that housing sales in Delhi-NCR are likely to rise to 12,915 units during the October-December period of this year, compared to 10,354 units in the corresponding period of the previous year. New supply in the region is expected to increase significantly, reaching 11,223 units, a 59 per cent rise from 7,072 units in the year-ago quarter..

Next Story
Infrastructure Urban

DDC Approves Five Key Projects Under Kasaragod Development Package

The District Development Committee (DDC) has approved a budget of Rs 100.08 million for five key projects under the Kasaragod Development Package. This funding is part of the Rs 700 million allocated in the State budget for the 2024-25 financial year, with administrative approval formally amended to incorporate these initiatives. The decision was made during a meeting chaired by District Collector K. Inbasekar on Saturday, December 21. The approved projects include Rs 40.99 million for constructing Udayapuram Thungal Road in Kottom Belur grama panchayat and Rs 20.56 million for setting up a ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000