INDIA, December 25, 2014: At the threshold of New Year 2015, realtors’ apex body CREDAI Chairman and CMD of Kumar Urban Development Pvt Ltd, Lalit Kumar Jainhas called for “political will with spine” to bring about real estate reforms and revive the crisis-ridden industry to rejuvenate the economy.
Lauding Prime Minister Narendra Modi and his Cabinet colleagues for their ideas, Mr. Jain said “we need fast implementation; else there is a risk of losing steam.”
“I see lack of energy expected in some bureaucrats which is a matter of worry. Yet, we see the glass half full and the remaining half is filled with hope”, he said.
“The continuous fall in fuel prices is not translating into price reduction of inputs like cement, steel and even transport. The Government needs to regulate steel and cement prices just as the power regulators monitor tariff,” he said in his thoughts for the New Year
“In spite of slowdown in consumption, we saw a huge rise in cement and steel prices. Domestic construction industry has been jostling with steep and steady rise in prices of cement, steel rods, bricks and other input material, which have risen by over 30% since last three years. The input cost on account of labour in the construction industry has increased as well. Besides rising prices, high lending rate by banks has hit the realty sector severely,” Mr Jain said. “With a lot of positive outlook and hopes shown by the new government, we anticipate that Land, Administrative Tax and Banking reforms will be executed without further delay.”
For a long time RBI has been giving a raw deal to the real estate industry despite the well recognized fact that the industry contributes handsomely to the country’s GDP, apart from being labour and capital intensive, he said and called for Government intervention to facilitate low cost funding for home buyers as well as developers.
Several ministers, past and present, have accepted CREDAI suggestions for Land, Administrative Tax and Banking Reforms. Yet we do not see any action, he said. Appreciating Modi Government’s policy towards “Smart City” and “Housing for all by 2022” he pointed out “Smart City requires Smart Policies”.