Indian construction and real estate firms want higher spending on infrastructure, lower interest rates and tax breaks on projects from the federal Budget, industry officials said.
Construction companies that saw tax rates rise after the withdrawal of income tax breaks on infrastructure contracts last year, want it back.
"The government should reduce interest rates for infrastructure projects. Concessions are available only for a few World Bank-funded projects, but this should be extended to all," said Sandeep Reddy, Managing Director of Hyderabad-based Gayatri Projects.
The industry also want a reduction in customs duties on construction equipment, and service tax exemption for construction contracts, said an official at IVRCL Infrastructures & Projects Ltd.
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Real estate firms, which have seen a slowdown in sales due to soaring prices, have asked for a lower interest rates for home loans and for housing construction projects.
They have also sought a reduction in stamp duties on the housing sector and removal of service tax on rental income to bring down costs for investors.
"One point taxation should be levied so that the heavy burden of multiplicity of taxes is reduced and automatically, the cost of construction of flats will come down drastically,” the Confederation of Real Estate Developers Association of India, said in a note to the government.
Both sectors have sought more liberal rules for bringing in foreign funding.
"Given the large amounts involved in infrastructure projects and absence of cash flows during construction phase, Indian firms need to have access to finance of all kinds," the Confederation of Indian Industry (CII) said in a pre-budget presentation.
The industry body has asked for reducing restrictions on external commercial borrowings, convertible bonds, and foreign direct investment.
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