Rs 3-Lakh Financial Assistance : Big boost to building activity

Hyderabad: The KCR government's decision to launch the scheme to give Rs 3 lakh financial assistance to those who have plots and want to construct houses is likely to give a big boost to the construction activity in the state.

Sources said the fast-developing municipalities will witness huge construction activity where the middle classes are waiting to construct houses under the new Rs 3-lakh cash benefit scheme. Many people own a piece of land for housing purpose in the urban and major gram panchayats but lack funds to build a house.

Once the scheme is rolled out, they will go in for constructing their houses with the available financial resources and the Rs 3-lakh assistance from the government. Officials told Hans India that modalities will soon be finalized to execute the scheme by the Roads and Buildings department in coordination with the Municipal Administration and Urban Development and Panchayat Raj wings.

It may be mentioned here that after 2019, Telangana has witnessed growth in the realty sector as many builders from neighbouring Andhra Pradesh had come to Telangana. The growth in IT and hospitality sector also helped in the substantial increase in construction activity.

Official records state that the real estate (including ownership of dwelling and professional services) has contributed nearly 14 per cent growth in the tertiary sector. Its forms about 18 percent of the total GSDP during 2022-23. The growth in the reality sector last year was 12.8 percent.

Officials of the Directorate of Statistics and Economics said the budget allocations to the welfare and development sectors promise faster growth in the construction sector as the availability of financial resources in the open market was closely linked to the growth of construction. It would also help in better revenue generation for the government.