Union Budget 2019: Since the real estate industry had its own share of turbulence in the form of the NBFC crisis and the consequent liquidity crunch faced by some of the marginal developers last year, one of the most critical steps that this budget can take is to increase the finance limits for NBFCs.
By Murali Malayappan
Budget 2019 India: The present Government at the centre has done a lot for the regulation, growth and revitalizing of the Indian real estate sector in the last four /five years. We have witnessed certain decisive landmark steps like the implementation of RERA, GST, pushing the industry to a consolidation mode. We can expect the re-elected Government, through suitable Budget supportive announcements further strengthen the Housing initiatives for the overall growth of the Indian economy, as the Government is very much appreciative of the real estate sector’s contribution for employment and growth of the economy. I am sure that mid-income housing and Housing for All initiatives will gain further momentum.
During last year, we had witnessed the NBFC crisis paralysing the liquidity in the sector. Marginal and medium-sized developers, who were largely dependent on this source of finance were worst affected. Having brought in a regulated regime with a defined timeline approach for the completion of the projects, Government shall think kindly of small and marginal developers in getting a conducive source of funding.
Long awaited industry status may be accorded to the real estate industry. While happy with the much of headway that has happened in ease of doing business in the sector, in the matter of approval process, the industry expects Single Window Clarence in the real and true sense. The implementation of the Single Window clearance mechanism,
will go a long way in minimising the turnaround time for completion and delivery of the projects, which in turn help in the reduction of the project cost – ultimately benefitting the homebuyers in terms of the price they pay.
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Rationalisation of stamp duty across the States is another area of attention. Stamp duty charges (which vary from state to State) are charged separately besides GST. In short, being appreciative of the sectoral importance, we can expect the Government to announce many positive measures for housing initiatives and infrastructure.
(The author is Chairman and Managing Director of Shriram Properties. Views expressed are personal.)