Budget wishlist from Mr. Jitendra Jain, Neev Group of Companies

Dear Sir / Madam,

 

Please find below the 2009 budget wishlist from Mr. Jitendra Chandulal Jain, MD & CEO of Neev Group of Companies.

 

"As a real estate developer, we would like the existing government to take multidimensional steps to boost the demand of real estate as well as to facilitate the execution of projects.

 

To start off, the government should realize the full value of home loan packages for genuine home buyers. The recommended home loan interest rate can be around (7.5%-8.5%) for up to 20 lakhs.  And interest rates to be around 8%-9.5% for loans between 20 to 50 lakhs. There should be an increase in income tax rebate for interest of home loan borrower's present slab of 1.5 lakhs to 3 lakhs.

 

The recommended interest rates to be maintained constant for next 5 years, since home buyers don't avail loan at first instance for projects which is in the development process, they take loan only after   an year of their booking date. As of now all affordable housing projects are in the process of conceptualization and development process, hence the EWS and LIG  cannot  benefit from the current low home loan rates, unless and until its  stabilized for longer period of time.

 

The Government could offer concession in stamp duties / registration charges for low income group and economically weaker section. This could push the demand of real estate among the low income group and middle income group. Government can even offer some sort of subsidies to the developers acquiring and liasioning lands for setting up affordable housing projects. The government can even facilitate the Developer's process of project execution by relaxing the norms to borrow funds from foreign institutional investors so as to maintain the liquidity crunch.  

 

There needs to be policies taken to stabilize the rates of input cost like cement and steel, since they considerably affect the final cost of the project and rationalization of double taxation in the construction material. By adopting the PPP model for mass housing projects or infra projects, the government can increase the efficiency and funds for the project. "

 

Thank you,

 

Warm Regards,

Diana Mary John, Associate Consultant
Hanmer MS&L Communications Pvt. Limited | Member of PUBLICIS GROUPE
Reham mansion 1, 3rd Floor,
42 Shahid Bhagat Singh Road,
Colaba, Mumbai 400 001, India
T: +91 67524600 / 4631  
F: +91 22 66335979
M: +91 9920067176
Email: diana@hanmermsl.com ,
W : www.hanmermsl.com  | www.hanmergroup.com