Tuesday, January 8, 2008

Real estate sector seeks special residential zones

The real estate industry on Monday sought introduction of special residential zones (on the lines of Special Economic Zones), to ensure affordable housing in the country.

“We need SRZs across India with these zones patterned on the lines of SEZ Act entailing similar approvals, the board structure, and monitoring and execution, and also similar concessions in terms of direct, indirect taxes and octroi, amongst others,” Mr Kumar Gera, Chairman of Confederation of Real Estate Developers’ Association of India (CREDAI), said at a conference here.

Mr Gera said that the experience gained from the SEZ Act could be translated to create SRZs, and pointed out that SRZs could ensure affordable housing in India. “To ensure that these SRZs do not become new slums, they need to be supported by proper infrastructure, sustainable development, and a realistic floor space index (FSI),” Mr Gera added.

Goa SEZ issue

Meanwhile, reiterating his earlier stance that SEZ policy could not be “thrust or forced”, the Union Minister of Commerce and Industry, Mr Kamal Nath, on Monday said he is awaiting a written representation from Goa Government, on the SEZ issue.

“We are waiting to hear from them, and once we get letter from the State, we will respond to it. But just now there is no letter,” Mr Nath said on the sidelines of a real estate conference organised by CREDAI here.

Mr Nath had, last week, asked the Goa Chief Minister, Mr Digambar Kamat, to give in writing the reasons for scrapping SEZs in the state.

The Commerce Minister today said that while SEZ policy was not to be thrust or forced on anyone, it was for a State to formulate its own policies.

“Some States want more, some less, some want things differently but the growth process of the State has to be determined by the State itself,” he said.

The Minister also hinted that he favoured moderation in duties and levies to stimulate growth in the real estate sector. “Real estate sector needs stimulation, and the Government has to look at it,” Mr Nath said but did not specify whether his ministry would demand tax concessions for the sector in the upcoming Budget.

Addressing a conference earlier, the Minister said, “We need low-cost houses….Real estate is growing at 13-14 per cent annually, but is still a small portion of the GDP.”

source

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