Real estate developers have welcomed the economic measures announced by the Union Finance Minister Nirmala Sitharaman that are aimed at reviving the economy amidst the slowdown induced by COVID-19. Announced in five tranches, the 20-lakh crore package has a series of measures for real estate, MSME, agriculture, NBFC, health, and education sectors. For real estate, the government has granted an extension of the deadline for projects registered on after 25th March 2020 to compensate for the time lost on account of a lockdown. Furthermore, the government has announced an INR 30,000 special package and INR 45,000 credit guarantee scheme to infuse liquidity into the Indian economy.
Realtors shared their views on the government's decision.
Appreciating the decisive steps taken to bolster the real estate sector amidst the COVID-19 pandemic, Ravish Kapoor, Managing Director, Elan Group said. "We welcome their decision of extending the deadline for the completion of projects, as it will be a huge breather for the sector. Also, the other announcements made to improve liquidity will ultimately support the realtors. The sector was waiting for such a package and expects it will help in putting the Indian economy on the path to recovery."
"We appreciate the central government's announcement of benefitting the real estate sector. Providing a force majeure relief to the real estate developers is a great comforting step in these grim hours. Besides, the suo moto extension of 6 months announced for all registered projects expiring on or after 25th March 2020 would enable the project completions with the revised timelines thus infusing the confidence back in the sector. We look forward to the complete guidelines to be issued by the Urban Ministry for detailed information on several statutory compliances under RERA," said Ashish Arora, Director-Distribution, Viridian RED.
"The government's decision will provide a ray of hope to the developers. The other announcements made will pump liquidity into the system, improving the overall economic environment. Its a great step in the prevailing conditions and will provide impetus across sectors," said Ashish Sarin, CEO, AlphaCorp.
"The measures will ease the problem of cash flows and will be a step forward in building a self-reliant India. The decision to extend the registration and completion date to real estate projects registered on or after March 2020 will provide relief to developers and compensate for construction activity halted due to the COVID-19 lockdown," said Sandeep Agarwal, CFO, Pioneer Urban land and Infrastructure Ltd.
Rahul Singla, Director, Mapsko Group said, "Honble PM Narendra Modi has taken a comprehensive vision for the development of every section of India through a special economic package. The sector was waiting for this package and certainly expects to get some benefit from it,"