NAREDCO on Amitabh Kant panel report: Agreed there’s financial stress, didn’t recommend direct support

Commenting on the report, Praveen Jain, national chairman of National Real Estate Development Council (NAREDCO), the country’s leading association for the real estate sector, told The Indian Express it was centred on safeguarding the interests of homebuyers, “the most important spoke in the wheel of real estate”.

According to Jain, who was among the stakeholders the committee met before coming up with its recommendations, giving homebuyers a clear path to possession of their homes will boost consumer confidence in the real estate sector. For real estate developers, however, apart from proposing measures to facilitate the completion of projects, the panel has not offered any direct support on “liquidity challenges”, Jain said.

“While the report addresses the overall financial viability of projects, it does not provide specific mechanisms or direct financial support to address developers’ immediate liquidity challenges, which could be a significant concern. The report provides a generalised framework, but developers might seek more tailored solutions that cater to the specific challenges they face,” Jain said.

According to Jain, the panel has proposed measures to improve the Internal Rate of Return of projects and attract funding. The panel has also recommended allowing co-developers to come in to help, which Jain said will distribute the financial burden of the stalled projects.

“While the report proposes several measures, the success of these recommendations depends on their timely implementation and effective execution. Delays in the implementation process could further exacerbate developers’ concerns,” he added.

Another industry body, Confederation of Real Estate Developers’ Association of India (CREDAI), whose representatives also met the Kant committee, welcomed the report. It’s a “step in the right direction”, said CREDAI chairman Manoj Gaur.

“Enhanced responsibility on the respective state governments to provide rehabilitation packages and other avenues of financial support, along with mandatory registration of the projects under Real Estate Regulatory Authority (which fall under a specified criteria), will not just provide an impetus towards the projects’ resumption, but also enhance the confidence of homebuyers. Keeping stalled projects running requires a combination of strategic approaches, effective communication, and proactive management,” Gaur said.

He said the stalled projects could be revived by realigning objectives, allocating resources and engaging stakeholders.

“The key to keep stalled projects running is a combination of proactive management, effective communication, and a committed team which is already there under the leadership of Amitabh Kant,” he said.