The Confederation of Real Estate Developers Association of India (CREDAI) on Thursday slammed the government saying the delay in clearance plans for buildings is hurting real-estate industry in the country.
Addressing the CREDAI conclave, CREDAI national president Lalit Kumar Jain said it takes an average of 18-36 months for building proposals getting cleared adding that the normal time should have been 3-4 weeks.
The first ever conclave of CREDAI in Pune was aimed at finding solutions to revive the real-estate sector that contributes 6.5 per cent to the Gross Domestic Product (GDP). CREDAI presidents from 19 states and 112 cities were present at the conclave to discuss issues affecting the real estate industry.
At the end of the two-day conclave on Thursday,CREDAI members said the real estate industry has come to a virtual standstill in some states including Maharashtra owing to delays in official sanctions and rising input costs. CREDAI has been trying to sort out the issues,but unfortunately the response from the centre and the states has been abysmal, Jain said.
Jain said the government should introduce reforms in key sectors including banking with regard to disbursement to real-estate developers adding that the current taxation was too high in the country. He said the sale value of property towards different taxes is 36 per cent. If the government rationalises taxes,the growth in real-estate industry will be significant, Jain said.
Jain said the outgo by the banks to the real-estate industry is only 6 per cent,which should be increased to ensure the industry meets the demand of housing shortage in the country. He also added that there is a need for the government to introduce a single window clearance system to cut delays in the real-estate industry to make housing affordable. The issues like restrictive land use are only slowing down GDP growth.
Addressing the real-estate developers,chairman of Suzlon Group,Tulsi Tanti,said the real estate industry should focus on constructing green buildings to add a new vertical to its revenue stream.