Wednesday, July 8, 2009

Union budget ignores real estate development: CREDAI

Reacting to the union budget 2009 -10, Kumar Gera, chairman, Confederation of Real Estate Developers Association of India `s (CREDAI) said, ``CREDAI having more than 4,000 members involved in Real Estate Development across India is utterly disappointed particularly because the Budget has completely ignored the substantial contribution of housing and real estate sector to GDP and Employment of 10 million workers which is second only to the agriculture industry. ``

We are also upset on the fact that the industry which has an impact of over 200 services and industries with forward and backward linkages has been let down.

Since the Government has set a target of achieving 9% growth, we were expecting Housing and Real Estate sector to substantially contribute towards achieving the target, he added.

He mentioned that budget has failed to provide any incentive even to the purchasers of affordable homes. It was widely expected that the exemption of interest on self occupied residential house property presently restricted to Rs 1.50 lakhs per annum would be increased to Rs. 3 lakhs, but nothing has been done in this respect too.

He added that as far as increase of allocation for Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme by 87% to Rs 128.87 billion in the current budget and enhancement of allocation for housing and provision of basic amenities to urban poor to 37.93 billion is concerned, it would provide some relief through government authorities only without much participation by the private sector.

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