Indian Finance Minister Nirmala Sitharaman recently announced the details of Atmanirbhar Bharat stimulus Package in different phases. The announcement of the first set came a day after Prime Minister Narendra Modi unveiled the Rs 20 lakh crore relief package to revive the Indian economy. A huge amount of capital would be infused among different sectors to help them cope up with loses due to covid-19 lockdown.
Various developers have welcomed the move and expressed their gratitude towards the government. Modi Builders, is one of the known builder in Hyderabad, appreciated the support of government for realty sector. They believe that the Indian realty segment will be surely boosted by this package and the facilities for labourers provided by the government. This kind of move will surely make the real estate sector stable and profitable.
This stimulus by the Government has provided a breather for real estate, believe industry experts at Modi Builders. Apart from the MSMEs and other businesses, a few deadlines have been extended for real estate projects to offer relief to the real estate sector.
• The registration and completion deadlines have been extended by six months for all RERA projects which were expiring on or after March 25 2020. If required, it will also extend this for another three months.
• The ministry of housing and urban affairs would urge all states, union territories and their real estate regulatory authorities to treat Covid-19 as an event of “force majeure.”
• Deadlines for a number of statuary compliances under RERA are also allowed to be extended.
• In order to promote and support Make in India initiative, government procurement tenders of up to Rs 200 crore will only be bid by National firms and foreign companies would be allowed. This will boost PM’s call to make India a self reliant Nation.
The government will also allocate bank guarantees to the extent of the contract completed for easing cash flows. Realty experts at Modi Builders are optimistic about the future of this segment and expressed that their employees are also hopeful after hearing about the reduction in rates of TDS/TCS by 25% that will provide more liquidity in their hands.