Friday, Feb 22 2019 | Time 14:25 Hrs(IST)
  • 'Good beginning is half the battle' - says PM on a day UNSC condemns Pak on terror
  • Swine flu: MP CM’s call to public
  • Cong targets Modi, 'what was PM doing from 3 10- 5 10 pm the day of Pulwama attack?'
  • Modi prime-time minister, photoshoot was on even 3 hours after Pulwama: Rahul
  • AAP Govt committed to provide curative healthcare services to citizens of Delhi: LG
  • Deoband: ATS arrests 2 suspects associated with JeM
  • Rajini's meeting with Vijayakanth set political tongues wagging
  • One more dies in fire mishap, toll rises to 7
  • Chandrababu Naidu skips Prez function organised by Venkaiah family Trust
  • Projects worth Rs 5,894 cr inaugurated at Chandi Ghat in Haridwar
  • Walk-out in Assam Assembly over arrest, search powers to Assam Rifles
  • Russian Helicopter Ka-226T will be assembled at proposed HAL copter facility in Tumkur
  • Russian Helicopter Ka-226T will be assembled at proposed HAL copter facility in Tumkur
  • CM presents over Rs 1 82 lakh crore Vote-on-Account budget for FY 2019-20
  • Poeir Jets Develops India’s First Heavy-lift Hybrid Drones
Entertainment » Other Share

Housing segment to be the top runner in the next 5 years: Shriram Properties

Kolkata, Feb 28 (UNI) Managing Director of Shriram Properties M Murali today said with the
increasing demand and tremendous scope for affordable housing segment of the real estate,
this segment will be the top runner in the next five years.
“This goes along with our Honourable Prime Minister Narendra Modi ji’s vision of ‘Housing
for All by 2022’ which is a national objective where we can expect more favourable provisions
towards affordable housing and Economically Weaker Section / Lower Income Group Housing,”
he said
Mr Murali said reforms and policy initiatives of the Centre as well as some State Governments
have encouraged private developers to evince interest to launch projects in the affordable
segment in the recent times. But the participation forms a minuscule percentage.
The Pradhan Mantri Awas Yojana (PMAY) has been designed envisaging a big role for private sector, but no private sector participation has been enlisted under PMAY and private developers
remain reluctant in the scheme, he said.
“If we analyse, there are several bottle necks and reasons that restrict the private developers.
The bottlenecks are: the high gestation period of housing projects, long and not that much
transparent approval process, expensive capital, non-availability of land with infrastructure and connectivity, spiralling land and construction costs, high fees and taxes as well as unfavourable development norms - needless to say about ‘wafer thin margin’ private developers get through
this business segment,” Mr Murali said.
“Thus first and foremost is that we have to make these Housing projects attractive and a
viable proposition for private developers and to kindle their interest to take up,” he said.
Mr Murali said it must be appreciated that the private real estate sector faces considerable headwinds today. Rising cost pressures and a difficult regulatory scenario are among the
primary concern areas that hold back private developer’s participation in a big way.
Currently, it takes nearly two to three years for a developer to commence construction after
having entered into an agreement for land purchase. The real estate developers today are
required to pass the approvals through 150 tables in about 40 departments of central and state governments and municipal Corporations. Every day delay means – it is a drain on profitability
for the developers, he said
Mr Murali said there must be transparent digital online approval process taking only minimum
time for approval and putting an end to unethical practices. Digital approval mechanism, better co-ordination among the multiple authorities in dealing with various permissions/approvals will encourage private real estate developers to invest in the affordable housing segment.
States can be asked to frame by -laws in a transparent manner for every division / region of
a city and bring out checklist for approval compliance and the approval process shall be made
online thus eliminating intermediaries, avoidable unethical payments and expenditure. Stricter
penal provisions shall be clamped within a time limit of 10 years for any wrong
reporting /compliance if it comes to notice in future, he said.
The Managing Director of Shriram Properties said availability of land with infrastructure like
Road, water and sewerage is a big drag for private developers. It will be appreciated that
providing infrastructure like road water and sewerage is the obligation of the state and may
have to be met out of the Cess and tax collected from the project. If the State can take care
of this arena, there shall be more private players evincing interest to take up the projects.
“We need measures similar to one brought in 2000 by the then PM Vajpayee ji by introducing
Section 80 IB (10) of the Income Tax Act which aimed at promoting constructions of housing
projects. We can undoubtedly say that this was a break through provision introduced bringing in
a big real estate revolution particularly in augmenting the housing supply,” he said.
Mr Murali said to recall, the years 2000-2004 was the turnaround period in the real estate
sector and in housing supply - with large number of private players entering and augmenting the
housing stock/housing supply. But this good progress with increased housing supply was short
lived. The subsequent Government brought in MAT. This move by the next Government
dis-incentivized many of the players and again there was dip in housing supply.
The kind of measures that was introduced in 2000 will attract private players to participate in the national mission like PMAY in a big way, he added.
More News
'Photograph' to release on Mar 15

'Photograph' to release on Mar 15

14 Feb 2019 | 5:13 PM

New Delhi, Feb 14 (UNI) After gaining massive appreciation at the Berlin Film Festival, the makers of 'Photograph' have decided to release the film on March 15.

 Sharesee more..
Kartik Aaryan stars in new PETA India campaign 'Chicks Love a Vegetarian'

Kartik Aaryan stars in new PETA India campaign 'Chicks Love a Vegetarian'

18 Jan 2019 | 4:04 PM

New Delhi, Jan 18 (UNI) With baby chicks perched on his hand, Bollywood star and heartthrob Kartik Aaryan appears in a new campaign for People for the Ethical Treatment of Animals (PETA) India that proclaims, 'Chicks Love a Vegetarian'.

 Sharesee more..
Three day cultural fest 'Arth' to be held from Feb 8-10 in Delhi

Three day cultural fest 'Arth' to be held from Feb 8-10 in Delhi

18 Jan 2019 | 1:52 PM

New Delhi, Jan 18 (UNI) 'Arth' -a cultural quest, with an aim to understand and find meanings of the Indic civilization and discover its soul, is coming back with its second edition in Delhi from February 8-10.

 Sharesee more..
Blockbuster Hoichoi Unlimited set for world TV premiere on Jalsha Movies

Blockbuster Hoichoi Unlimited set for world TV premiere on Jalsha Movies

18 Jan 2019 | 1:49 PM

Kolkata, Jan 18 (UNI) Jalsha Movies has always taken the onus to present an array of exciting handpicked new stories for its viewers on the small screen.

 Sharesee more..
Bollywood congratulates Team India for historic win at SCG

Bollywood congratulates Team India for historic win at SCG

07 Jan 2019 | 3:03 PM

New Delhi, Jan 7 (UNI) Bollywood fraternities on Monday congratulated Indian cricket team for their historic win against Australia in Test Series at Sydney Cricket Ground (SCG).

 Sharesee more..