Industry seeks more reforms
Industry players have said the Finance Minister Nirmala Sitharaman’s announcement is much in line with the government’s aim to spur economic growth and build a ‘self-reliant’ India. In the first of the series of announcements the FM will make over the next few days, the real estate sector, NBFCS/HFCs and MSMEs got a major boost on day one. However, they look forward to more reforms coupled with the four L comprising liquidity, labour, land and law.
Industry players said they also hope the government works out to iron out issues with regard to restarting construction in non-containment zones with necessary precaution and supply chain.
FICCI President Dr Sangita Reddy said the greatest take away from today’s announcement was the clear focus on getting liquidity flowing into the system. ‘’However, besides, liquidity we need to give equal focus on generating consumption demand and propping up investments. We hope that in the next set of announcements, these areas will be taken up in a comprehensive manner as well,’’ she noted.
ANAROCK Property Consultants Chairman Anuj Puri said the government has extended the timeline for project completions and registration by six months.’’This is a big move that will destress developers significantly, since construction activity had been halted all across the country. Homebuyers’ wait for their homes will get extended by this move, but this was in any case inevitable. The announcement of Rs 30,000 crore special liquidity scheme for NBFCs/HFCs and MFIs will ease liquidity woes of stressed players. This will benefit the real estate sector significantly, given that NBFCs and HFCs are major lenders to it” he viewed.
ASSOCHAM President Niranjan Hiranandani observed that the liquidity measures like the Rs 30,000 crore special liquidity scheme made in both primary and secondary market transactions in investment grade debt papers of NBFCs/HFCs/MFIs will help in providing funding to the real estate sector. “Also the six month extension for RERA registered projects expiring on or after 25th March, 2020 will also benefit several developers in a scenario where construction work has come to a complete stand still. This would also prevent them from defaulting on their timelines,” he pointed out.
Further, Nahar Group vice chairperson Manju Yagnik said 25% reduction in TDS on rent till March 2021 and extension of assessment getting barred from March 2021 to September 2021 would leave more time for homebuyers to plan better financially. ‘’Also change in classification period in NPAs from 90 days to 180 days would prove beneficial for the developer and homebuyers in the current scenario,’’ she opined.