by
Mr.
Kishor Pate, CMD – Amit Enterprises Housing Ltd
In
February of this year (2013), Union Housing Minister Mr. Ajay Maken had
indicated that the Centre is considering the possibility of according
infrastructure status to affordable housing.
While we have still not been given greater
clarity on the progress of this initiative, it is certainly a great need of the
hour for India’s larger cities.
Affordable Homes Highest Demand..!
As
a real estate segment, affordable housing has been languishing for a long time,
even though it is the very segment in which the highest demand exists.
 |
| Kishor Pate, CMD, Amit Enterprises Housing Ltd |
The
constant hype about the rising fortunes of India’s fast-growing affluent class
has ignores the fact that most Indians still can not afford to buy their own
houses. This is true even for the original inhabitants of rural areas that have
been added to city limits.
So
far, infrastructure status was given only to industries and companies active in
building highways, ports, airports, Metro rail systems, etc.
Real
estate in any form has so far not been extended these benefits. When an
industry is given infrastructure status, it basically means that the Government
has recognized it as a necessary sector which caters to the general good of the
nation.
Bank
Lending Increase..!
By
virtue of this, it becomes eligible for various incentives and subsidies at the
Central and State level. When a segment of housing gets infrastructure status,
the Government provides tax benefits, and institutional lending to that segment
also eases.
Banks
are directed to increase lending to the sector, and companies engaged in the
segment can also raise bonds to generate funding for their projects.
However,
it should also be noted that companies enjoying the benefits of infrastructure
status eventually wind up paying more taxes. This is because the incentives
that make the creation of affordable housing more viable for them also lead to
higher earnings, which are naturally taxable.
Nevertheless,
the good news is that this initiative – when implemented – will boost investments
flows both from domestic and foreign investors, thereby increasing supply.
Increased supply results in higher competitiveness and helps keep prices down.
For
Media Contact:
Mr.
Jay Kalghatgi
Client
Interface - CopyConnect
Mobile:
093201 42248
No comments:
Post a Comment