Date : 30th June
The Confederation of Real Estate Developers' Associations of India (CREDAI) Bengal has welcomed the introduction of Goods and Service Tax (GST) as an act of a major reform since it integrates all the Central and state taxes into one comprehensive tax regime across the country.
CREDAI Bengal president Nandu Belani today said, "Now that GST has been implemented, as developers, we are looking ahead to gauge the impact of GST on our segment and whether it will finally be able to reduce complexities in procedures under a consistent one tax regime and ensure a fair playing ground for both buyers and developers.View details
13th June, 2017
Press Information Bureau
Government of India
Ministry of Urban Development
More than threefold increase in investments, Per Capita spending, Central Assistance and substantially enhanced capacities of city governments under the new urban missions launched during the last three years is driving the much needed urban transformation in the country, said Shri M.Venkaiah Naidu, Minister of Urban Development and Housing and Urban Poverty Alleviation.
Briefing media on the urban sector initiatives of the Government here today, Shri Naidu said that a rule based framework has been introduced to ensure objective selection of cities and allocation of central funds without any discretion and discrimination and the same has been followed in getting unauthorized occupants of government houses evicted.
The Minister said that a major course correction has been launched during the last three years to improve urban infrastructure and quality of life in cities in an environment of inclusive, sustainable and accelerated urban development. Giving an account of the positive outcomes of the initiatives of the Government that are driving urban transformation, Shri Naidu said:
-Per Capita Investment of Rs.15,475 has so far been approved during 2014-17 under new urban missions for a five year period which is 315% of Rs.4,918 approved for the earlier ten years. A total investment of Rs.4,13,475 cr has so far been approved for improving basic urban infrastructure which is 350% of Rs.1,18,034 approved under JNNURM;
-A total of 6,737 projects have so far been approved which is 215% of 3,138 projects cleared under JNNURM, reflecting substantially enhanced capacities of city governments for project formulation and implementation through deployment of professional staff and through intensive handholding;
-748 cities have formulated the much desired Master Plans, 172 cities have reported over 90% Property Tax Collection during the last three years;
-In an indication of the new language of governance and resource mobilization, 322 AMRUT and smart cities have acquired Credit Ratings of which 147 have got investment grade while 163 cities in 18 States and UTs have initiated measures for mobilizing resources through Value Capture Financing tools;
-For the first time in the country, 500 AMRUT cities and 60 smart cities identified so far are pursuing five year comprehensive action plans for infrastructure development as against ad hoc approval of projects in the past;
-In an illustration of area and outcome based urban development approach introduced, under Atal Mission for Rejuvenation and Urban Transformation (AMRUT), provision of water taps to 1.39 crore urban households besides expansion of sewerage networks by 31% to 62%, 111 cycling and walkway projects and development of 1,921 new parks and green spaces in mission cities is being taken up.
Shri Naidu said that with cities now moving forward on the path of well thought out course of infrastructure development, ‘City Liveability Index’ will be launched on the 23 of this month at the National Workshop on Urban Transformation in New Delhi. The next batch of smart cities also will be announced that day, he informed.
The Minister said that the Ministry of Environment, Forests and Climate Change yesterday issued a notification doing away with the need for a separate Environmental Clearence from that Ministry for construction and building projects up to 1,50,000 sq.metres in Delhi. Such approvals, will henceforth, will be issued by DDA, NDMC and the three MCDs in their jurisdiction.
Stressing on the need for inclusive and sustainable urban development to ensure access for the poor and the vulnerable to urban spaces, Shri Naidu said construction of 20,25, 573 affordable houses for urban poor has been approved in a short time as against only 12,40,904 sanctioned under JNNURM. He stated that new guidelines will soon be issued to enable private investments in affordable housing even on private lands under Affordable Housing in Partnership component of PMAY(Urban) under which only public sector partnership is allowed so far.
Shri Naidu said public transport is being promoted in a big way to address the issues of climate change and pollution and the Metro network in the country is set to double over the next two years from the present 346 kms with 353 kms of metro lines becoming operational.
Expressing concern over unauthorized occupation of government houses, Shri Naidu informed that 2,843 such houses were got vacated during these three years by acting tough as per rules including 411 higher type accommodation occupied by former MPs and Ministers. A total of 95 unauthorised occupants lost their cases in various courts reflecting on the challenging task faced in their eviction. Still, another 190 cases are pending in courts including 80 in the High Court and 110 in District Courts but the long hand of law will reach them, said Shri Naidu.
Cities with new found confidence, awareness, enthusiasm and competitive spirit are driving urban transformation with is crucial for Transformation of India, Shri Naidu said.
13th June, 2017
Press Information Bureau
Government of India
Ministry of Urban Development
The Government of India has emphasised that Goods and Services Tax (GST) is scheduled to roll-out on 1st July,.2017. The Central Board of Excise and Customs (CBEC) in coordination with the State Governments have increased their outreach programmes with regard to Goods and Services Tax (GST) so as to reach the last trader. The GST formations are being notified shortly. The window for migration to GSTN has re-opened to assist the remaining taxpayers. The preparations are in full swing for a smooth implementation of the landmark tax reform from 1st July, 2017.
Measures for Housing in Union Budget 2016-17
1. 100% deduction for profits to an undertaking from a housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019, and is completed within three years of the approval. Minimum Alternate Tax will however apply to these undertakings.
2. Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax.
3. For the ‘first – home buyers’, deduction for additional interest of Rs. 50,000 per annum for loans up to Rs. 35 lakh sanctioned during the next financial year, provided the value of the house does not exceed Rs. 50 lakh.
4. Exemption from service tax on construction of affordable houses up to 60 sq. metres under any scheme of the Central or State Government including PPP Schemes.
5. Excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work at such site to Ready Mix Concrete.
6. Exemption for rent paid goes up from Rs. 24,000 to Rs. 60,000.
7. Union Budget 2016-17 adopts the course of prudence and fiscal consolidation to deal with increased risk and vitality in the global economy. In this sense, it is not a populist but a responsible budget which is fully conscious of India being the bright spot of the world economy.
8. The tax measures for affordable housing recognize the potential of the housing sector to add to growth and job creation. Given the strong backward and forward linkages of housing with the manufacturing sector, the measures would provide a fillip to the Make in India and Start Up India campaigns.
9. Business would be greatly benefited by simplification and rationalization of the tax structure and removal of irritants to the honest tax-payer.
10. CREDAI estimates that the common man would be benefitted by Rs. 50, 000 per annum or more on account of enhanced exemption for rent deduction, new home purchase and service tax exemption. As housing is the only asset for the common man, these measures render the Budget socially inclusive.
11. Priority to farm sector to lead to enhanced disposable income --> in turn to lead to rising industry growth --> demand for housing (both rural & urban)
12. Emphasis on health care and skill developmemt --> to result in higher labour productivity
13. Containment of fiscal deficit to 3.5% to result in restrained inflation --> optimised cost of production (through input pricing)
14. The provision of PPP dispute resolution mechanism --> to attract more Pvt. investment to infrastructure
15. Direct targeting of subsidies to help reduce waste of public resources
3rd Sept, 2015 : CREDAI Bengal agrees that there is a pressing need for an appropriate policy direction to revitalize the Indian real estate sector. "However, we feel that Mr Rajan has somehow not been able to comprehend the fact that a substantial reduction in prices has already happened across the country, thanks to concerted efforts taken by developers and any further decrease in sale price would be a deterrent for growth," opines Sushil Mohta, President, CREDAI Bengal and Chairman, Merlin Group. Much will depend on state governments and the Centre to rationalise taxes, streamline and simplify the approval process of building plans and other related clearances, which will bring down property prices. "It is to be understood that a processing time of a year escalates the unit cost by nearly Rs 200 - 1000 per sq ft, depending on the location of the land by way of interest. There is also a pertinent need to completely overhaul the system of obtaining an environmental clearance for real estate projects. Our experience says that this process is so slow and cumbersome and that it takes about six months to get an environmental clearance in hand," he points out. On the likely home loan rate cut, Mohta believes that "a rate cut in home loans is also need of the hour to relieve home buyers from the huge burden of mounting EMIs. The sector on its part is eager to focus on execution and supply of good quality housing stock to enable the government's ambitious 'Housing for All by 2022'. But at the same time, we seek guidance and cooperation from statutory and legislative bodies to be able to positively work towards the vision of the prime minister."
There has been significant rise in demand as richie rich buyers from the city of the ultra luxury segment is buying properties worth somewhere between INR 4 crores – 20 crores.
KOLKATA, AUGUST 25: The Bengal chapter of the Confederation of Real Estate Developers Association of India (CREDAI) has claimed that there is no further scope for a reduction in housing prices.
In fact, the developers’ association has demanded a reduction in home loan rates and providing for faster approvals.
The move comes days after the RBI Governor Raghuram Rajan advised builders stuck with unsold inventories to cut rates.
“Any further decrease in sale price would be a deterrent for the growth of the industry. To us it is now on the State Governments and the Central Government to rationalise the taxes, streamline and simplify the approval process of building plans and other related clearances which will bring down the property prices providing relief to home buyers,” Sushil Mohta, President, CREDAI – Bengal said.
According to Mohta, a process time of a year escalates the unit cost by nearly Rs. 200 - 1000 per sq. ft. depending on the location of the land by way of interest.
“We also believe that a rate cut in home loans is also the need of the hour to relive the home buyers from the huge burden of mounting EMIs,” Mohta added.
KOLKATA: The Mamata Banerjee government has drawn up a new set of rules for builders who propose to develop theme-based townships in the state.
This new policy stipulates that 25% of the land in a proposed township has to be set aside for the thematic or economic development, for which builders will be selected through e-auction. The developers will have to follow town planning norms, civic laws, environment laws and the national building code for constructions.
Also, 25% of the residential units have to be reserved for the poor. The state's urban development department will be the central agency for the six proposed theme-based townships and the West Bengal Housing and Infrastructure Development Corporation will be the state-level nodal agency to assist investors.
Looking for land wouldn't be a trouble for the developers as the proposed projects would be developed on identified state lands. Another advantage to be enjoyed by developers would be speedy approvals and clearances at the state level.
A total of 447 acres have been identified for the six proposed townships in Kalyani, Bolpur, Dabgram, Asansol, Dumurjala and Baruipur.
CREDAI Bengal is supporting the initiative and is confident that the move will not only generate much more urban infrastructure and housing but will also create job opportunities to thousands of workers.
"During the Bengal Global Business Summit 2015, the government mooted the idea of private townships on 50 acres of land on similar conditions that said that 25% of the area is to be utilized for economic activities, 25% to be reserved for EWS sector and balance as per the developers wish. The aforesaid idea was very much welcomed by the industry and many proposals had been submitted to the government of West Bengal and the same are under active consideration of the government. If this goes well, it will be a model ready to be replicated by other regions across the nation," said Sushil Mohta, president, CREDAI Bengal chapter.
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval for launch of “Housing for All by 2022” aimed for urban areas with following components/options to States/Union Territories and cities:-
a) Slum rehabilitation of Slum Dwellers with participation of private developers using land as a resource;
b) Promotion of affordable housing for weaker section through credit linked subsidy;
c) Affordable housing in partnership with Public & Private sectors and
d) Subsidy for beneficiary-led individual house construction or enhancement.
Central grant of Rs. One lakh per house, on an average, will be available under the slum rehabilitation programme. A State Government would have flexibility in deploying this slum rehabilitation grant to any slum rehabilitation project taken for development using land as a resource for providing houses to slum dwellers. Under the Credit Linked Interest Subsidy component, interest subsidy of 6.5 percent on housing loans availed upto a tenure of 15 years will be provided to EWS/LIG categories, wherein the subsidy pay-out on NPV basis would be about Rs.2.3 lakh per house for both the categories. Central assistance at the rate of Rs.1.5 lakh per house for EWS category will be provided under the Affordable Housing in Partnership and Beneficiary-led individual house construction or enhancement. State Government or their para statals like Housing Boards can take up project of affordable housing to avail the Central Government grant.
The scheme will be implemented as a Centrally Sponsored Scheme except the credit linked subsidy component, which will be implemented as a Central Sector Scheme. The Mission also prescribes certain mandatory reforms for easing up the urban land market for housing, to make adequate urban land available for affordable housing. Houses constructed under the mission would be allotted in the name of the female head of the households or in the joint name of the male head of the household and his wife.
The scheme will cover the entire urban area consisting of 4041 statutory towns with initial focus on 500 Class I cities and it will be implemented in three phases as follows, viz. Phase-I (April 2015 - March 2017) to cover 100 Cities to be selected from States/UTs as per their willingness; Phase - II (April 2017 - March 2019) to cover additional 200 Cities and Phase-III (April 2019 - March 2022) to cover all other remaining Cities. However, there will be flexibility in covering number of cities in various phases and inclusion of additional cities may be considered by the Ministry of Housing & Urban Poverty Alleviation in case there is demand from States and cities and have capacity to include them in earlier phases. Credit linked subsidy component of the scheme would be implemented across the country in all statutory towns from the very beginning.
Dimension of the task at present is estimated at 2 crore. Exact number of houses, though, would depend on demand survey for which all States/Cities will undertake detailed demand assessment for assessing actual demand by integrating Aadhar number, Jan Dhan Yojana account numbers or any such identification of intended beneficiaries.
A Technology Sub-mission under the Mission would be set up to facilitate adoption of modern, innovative and green technologies and building material for faster and quality construction of houses. The Technology Sub-Mission will also facilitate preparation and adoption of layout designs and building plans suitable for various geo-climatic zones. It will also assist States/Cities in deploying disaster resistant and environment friendly technologies.
The Technology Sub-Mission will coordinate with various regulatory and administrative bodies for mainstreaming and up scaling deployment of modern construction technologies and material in place of conventional construction. The Technology Sub-Mission will also coordinate with other agencies working in green and energy efficient technologies, climate change etc.
The Technology Sub-Mission will also work on the following aspects: i) Design & Planning ii) Innovative technologies & materials iii) Green buildings using natural resources and iv) Earthquake and other disaster resistant technologies and designs.
In the spirit of cooperative federalism, the Mission will provide flexibility to States for choosing best options amongst four verticals of the Mission to meet the demand of housing in their states. The process of project formulation and approval in accordance with Mission Guidelines would be left to the States, so that projects can be formulated, approved and implemented faster. The Mission will provide technical and financial support in accordance to the Guidelines to the States to meet the challenge of urban housing.
The Mission will also compile best practices in terms of affordable housing policies of the States/UTs designs and technologies adopted by States and Cities with an objective to spread best practices across States and cities and foster cross learning. The Mission will also develop a virtual platform to obtain suggestions and inputs on house design, materials, technologies and other elements of urban housing.