Realty sector seeks affordability from the government.

Real estate businesses have much expectation from the forthcoming Union Budget 2012 that it will contain some pragmatic provisions that will lower effective price barriers for home-seekers.

Vice-president of Credai (Confederation of Real Estate Developers Associations of India) Pune Metro, Anil Pharande, said that on a macro level, a higher allocation of infrastructure funds for housing can be a favourable approach. “The government can set clear guidelines on timely commencement and completion of projects and link disbursement of these funds with adherence to these guidelines.”

Pharande also added that removal of the 10 per cent service tax on residential real estate construction, that increases the cost of new homes by as much as 3 per cent, is critical for a cost-sensitive market like Pune, which has mainly lower mid-income segment.

Real estate developers says, that broader incentives for development of affordable housing are needed, to encourage more developers to become active in this important sector and increase the supply of budget homes in the city as the city continues to face problems including high lending rates and construction costs, insufficient infrastructure and lack of affordable housing.

Even the 1 per cent interest rate subsidy on home loans can also work as a good measure to bring affordability. Also the present eligibility limit of loan amount of Rs 20 lakh should be raised to Rs 30 lakh which will help people think about buying apartments of decent sizes. Reducing taxes such as excise VAT and stamp duty on real estate will also make home purchase attractive, Pharande said.

DLF’s tribute to Government Staff Services to the Nation

In a recent press release, a special scheme for government and defence staff has been announced by DLF for purchasing residential units in its projects.

Recently, Mr Mohit Gujral, Vice-Chairman and Managing Director, DLF India Ltd, said, “This special rebate for the people in the service of the nation is DLF’s tribute to their services. The scheme aims at encouraging end-users to be a part of these on going developments.”

The scheme is applicable on the projects mentioned as: DLF valley, Panchkula; Hyde Park Estate, New Chandigarh; Park Place, Jalandhar; Samatara, Shimla; Commanders Court, Chennai; Gardencity, Chennai; Maiden Heights, Bangalore; Riverside, Kochi; New Town Heights, Kochi.

The discounts to be given will range from 3 to 5 per cent that is it varies from Rs 1 lakh to Rs 20 lakh as per case-to-case basis on residential developments in Jalandhar, Panchkula, New Chandigarh, Bangalore, Chennai, Shimla and Kochi. This offer is valid only on direct bookings from January 21 to March 15, 2012.

Wake Up Call against Illegal Construction

Pimpri Chinchwad New Township Development Authority (PCNTDA) proposes to regularise several hundred unauthorised constructions in its area by imposing fines and development charges on the house-owners

In order to check the illegal constructions across the capital, especially on the land for agriculture, the concerned departments are ordered by the Delhi Government to come up with strict actions against such activities.

As per the instructions of Mr.Raj Kumar Chouhan, the Revenue Minister, any illegal construction will not be tolerated and along with the guilty, the government officials will also be punished if they fail to control such activities.

He added that if anyone is found who is carrying out any construction activities in 1,639 unauthorized colonies, which are being considered for regularization by the government will also be considered guilty and will be punished as well.

Finally, he also said that government would not stand aside but will take action against developers and land mafia if they are found guilty.

Maharatna status for PSUs

Industry
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Government is considering giving ‘maharatna’ status to big PSUs to provide them greater freedom to take strategic decisions in key areas of investment and mergers and acquisitions.

The plan to create the ‘maharatna’ group among the so-called ‘navaratna’ companies is part of the 100-day agenda of the ministry of heavy industries and public enterprise.

Currently 18 ‘navratna’ companies have financial autonomy to invest up to one thousand crore rupees in setting up joint ventures or subsidiaries abroad and freedom to decide on merger and acquisitions without the government permission.