Timeline extension for projects by 9 months likely

New Delhi: Housing and Urban Affairs Secretary Durga Shanker Mishra on Friday said the government will look into various demand of the real estate industry, including an extension of timeline for completion of projects by 6-9 months.

He highlighted various initiatives taken by the government in the past seven years such as development of 1.12 crore houses under the Prime Minister Awas Yojana (PMAY), launch of the Affordable Rental Housing Complex scheme for migrant workers, 'infrastructure' status to affordable housing, and 100 smart cities.Mishra was addressing a webinar organised by realtors body Naredco.

Naredco's representatives made several demands before the secretary to revive both demand and supply in the sector that has been badly affected by the Covid-19 pandemic.

The association sought extension of timeline for completion of projects by 6-9 months under the realty law RERA, extension of all building permissions till March 2023, rationalisation of government taxes on real estate, and control of rising prices of cement and steel.

It also sought reintroduction of interest subvention scheme, grant of input credit tax on GST paid in leased commercial real estate, suspension of insolvency law for some more period, and an online environment clearance system.

Responding to the demand of extension of timeline for project completion, Mishra assured that he will "go in detail" to understand the matter.

"If need be, we will take this matter to RAC (RERA Advisory Council)," he said.

However, the secretary did mention that this relief was given last year because of the imposition of the national lockdown. On high taxes levied by the central and state governments on real estate, Mishra directed the ministry''s senior officials to examine the matter in detail.

"We will try to reduce government levies," he said.

Regarding a rise in prices of steel and cement, Mishra said he took up this issue with the ministry's concerned and would discuss the issue again.

On the PMAY, he said 1.13 crore houses have already been sanctioned and out of that, 48 lakh have been completed and handed over to the people.