By Saloni ShuklaReal Estate developers should not aim at surviving only on subsidies and interest rate subvention but should be ready to face market dynamics also, finance minister Arun Jaitley said here in Mumbai today.
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Speaking at Credai Bankcon, a housing market conference, in Mumbai, Jaitley said, “The essence of your industry can’t be that I will only survive on subsidies”.
On the distress in the banking and finance sector, the minister said, “We have tried to recapitalise banks and given a road map for three-four years”.
“Hopefully, this movement is there to stay and in the current global price structure, we’re able to keep inflation under control”, Jaitley said. Despite this real estate prices in most parts still remain in the unaffordable category.
His comments come at a time when there are hopes that the industry is in for a turnaround following the RBI’s repo rate cut in its September monetary policy.
Jaitley suggested that representatives of the real estate sector should submit their taxation-related suggestions to the panel on tax issues and assured that the government would seriously consider the committee’s final recommendations.
Stating that the real estate sector is going to be the next big mover in the economy, Jaitley said, “While we need to create more townships and smart cities, at the same time, we need to link suburban areas with good infrastructure and connectivity”.
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The Finance Minister expressed the government’s commitment to realise a dream project of Prime Minister Narendra Modi – housing for all, saying it would adopt a positive approach.
