Low-cost Housing: PHD Chamber Asks Govt to Allow ECB

phd-chamberIndiaCSR News Network

NEW DELHI: PHD Chamber of Commerce and Industry has asked the government to allow real estate developers to avail benefits of an External commercial borrowings window to fund their low cost housing projects till interest rates in India come down.

“Opening up of the ECB route fully for the real estate sector is another major area which needs immediate attention since FDI can provide the much required liquidity into the sector but ECB would provide for low source funding to Indian developers and ease the liquidity pressure,” said Alok B Shriram, president of PHDCCI.

In a representation submitted to the union ministry of housing and urban poverty alleviation, the chamber also urged for infrastructure status to be granted for affordable housing as it will facilitate long-term funding through various channels which include ECBs and FDI.

Also Read: Nominations Invited for Prestigious IndiaCSR Awards 2015

The chamber also sought relaxed norms for tax holidays for the sector under section 80-1A to encourage real estate development in the country, particularly for the economically weaker sections of the society.

In addition tax exemptions and reduction in developmental costs should be offered by the government to lure private developers for active participation in creation of housing stock, it said. Multiple approvals are currently needed for creation of low cost housing facilities as well as other real estate activities, the chamber said.

“This needs to be brought under a single-window mechanism so that approvals obtaining time is reduced to six months compared to the current practice of three years which increases the cost of construction”

While demand for housing has increased substantially over the years, supply of affordable housing has not kept pace. The gap between demand and supply of affordable housing can only be matched under Public Private Partnership where government draws up a mechanism to cross subsidies the land and construction costs, said the chamber. ‘The single largest driver of cost towards housing is land’

IndiaCSR is renowned and No.1 news portal in the domain of CSR, which is live since 2009. www.indiacsr.in is for you and your organization. IndiaCSR believes in uninterrupted generation and flow of information. We also believe in values and extending value based descriptions. IndiaCSR is mirroring what is happening around in the contemporary environment. We request you to support the initiative and promote it within your network. We welcome reactions to the stories, comments on issues that interest you, feedback & comments from your side to make it more purposeful and resourceful. Please send us your organization’s news, press releases, articles and contributions to editor@indiacsr.in. You can find updates at Facebook IndiaCSR News



Previous articleSEBI Restricts Goldmine Agro From Raising Money From Public
Next articleNASA Study Reveals ‘World is Running out of Water Fast’
India CSR Network
India CSR Network is India's biggest and most trusted news portal in the domain of CSR & Sustainability. India CSR welcomes stories, statements, updates, reports on issues that interest you. Feedback, comments will make it more purposeful and resourceful. It is designed and maintained by India CSR Group. Contents are non-fiction. Though all efforts have been made to verify the accuracy, the same should not be construed as a statement of law or used for any legal purposes. In case of any ambiguity or doubts, readers are advised to verify with the source(s). Statement, articles, views and contributions can be sent to editor@indiacsr.in