CREDAI Conclave 2013, New Delhi :Delays in Project Plan approvals, which translate into a cost escalation of 40% in the construction costs..

Confederation of Real Estate Developers’ Associations of India (CREDAI) organized the  “CREDAI CONCLAVE”, with a theme, “Housing the Game Changer – Leading to Double-Digit GDP Growth”, at New Delhi, against the backdrop of its continuous efforts over a period of time to persuade and influence the government to take up several reform measures and policy changes.

Delivering the key note address at the conclave Mr. C. Shekar Reddy, President, CREDAI National said  “The main concerns of the real estate developers in  India are - The rising price of Land, labour & inputs, High burden of taxation, High cost of funding due to lopsided funding by banks, stunted cash flows, delays in NOC and other clearances and approvals besides the outdated  Floor Space Index  (FSI) Norms . He emphasised on a need to restructure the approach to help the sector contribute more significantly to the Indian Economy.”

Single-window and Online Approval System..

According to Mr Reddy the key to this change should be by adoption of ‘Single-window and Online Approval System’ to facilitate this growth. The approving authorities will have to do away with their processes which are sluggish and cause inordinate delays in project plans approval etc which translate into a cost escalation of 35% to 40% in the construction costs. The customers can also benefit with a saving of 15% to 25% merely by cutting down the delays in the approval processes, and make the cost of purchasing a house much more affordable. He emphasized on the need to ensure that the delays do not take place at the approval stage and advised the governments to institute the ‘Single Window – Online Approval Mechanism’ as a mandatory  reform   in the proposal for Rajiv Awas Yojna instead of an optional reform and get it implemented at the earliest.”

He urged the government to do away with the Floor Space Index (FSI) concept, take the approval process online & reduce tax burden on the industry. He reiterated that the real estate industry has a tax burden of 30% to 40%. This has to come down to less than 15%. The industry is paralysed by multiple taxation resulting in cost escalation and misery for the sector.

CREDAI - National Secretariat
703, Ansal Bhawan, 16, Kasturba Gandhi Marg,
New Delhi-110 001.
Tel:(011) 43126262 , 43126200
Fax:+91 11 43126211
Email: info@credai.org

For more information please contact

Mr. Nishanth M: 98840 70861

Konnections

Web Site: www.konnections.co.in

E mail: nishanth@konnections.co.in

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