Union Commerce and Industry Minister Piyush Goyal has pledged to support easier financing for the real estate sector, advocating with the Reserve Bank of India and local governments for faster project approvals, contingent on transparency and zero corruption. Highlighting the benefits of the Real Estate (Regulation and Development) Act (RERA), he emphasized the improved trust in the sector and banks' renewed confidence in financing. Addressing concerns raised by CREDAI President Boman Irani, Goyal committed to tackling financing challenges with the RBI and finance ministry, while calling for a pledge against shortcuts in the industry.
Union Commerce and Industry Minister Piyush Goyal assured realtors on Tuesday that he would advocate for easier financing options for the real estate sector, similar to those available to other industries, with the Reserve Bank of India. He also pledged to engage with state governments and urban local bodies to expedite approvals for real estate projects, provided builders commit to transparent business practices and zero corruption.
Speaking at a conference organized by CREDAI, the apex body for realtors, Goyal emphasized that the Real Estate (Regulation and Development) Act, or RERA, has fostered transparency and certainty within the sector. He noted that the real estate sector is doing tremendous work and making significant contributions to job creation, national needs, taxes, and GDP. Since RERA's introduction, Goyal observed that the disciplines it enforces have benefited honest developers.He stated that there is now a much more trustworthy environment in the sector, and with many unscrupulous developers eliminated, banks are gaining confidence in providing financing.
Goyal shared his personal experience regarding the uncertainties buyers faced before RERA was enacted in 2017, recalling his struggle to access his home due to the absence of an occupation certificate.He remarked that was the level of uncertainty buyers encountered, and he was pleased that RERA had transformed that situation. In response to concerns raised by CREDAI President Boman Irani about financing challenges, Goyal committed to discussing the matter with the RBI and the finance ministry.He indicated that if a stronger push was deemed necessary, the government would engage with CREDAI and its associations, and he was prepared to address any RBI issues in conjunction with the finance ministry.
The minister expressed his willingness to assist in streamlining the approval process for planning and building, contingent on the industry's commitment to honesty and transparency. He emphasized Prime Minister Narendra Modi's ethos of "Na Khaunga, Na Khane Dunga," urging the industry to pledge against shortcuts.
Earlier, Irani highlighted the industry's need for affordable land, simplified building regulations, and improved last-mile infrastructure. He pointed out that real estate developers are struggling to secure bank loans for land purchases, forcing them to rely on costly debt from non-banking financial companies (NBFCs). The Confederation of Real Estate Developers' Associations of India (CREDAI) is hosting its flagship event, CREDAI NATCON, from September 23-26, with over 1,100 builders attending out of a total of 14,000 association members.
In conclusion, Goyal's assurances aim to bolster the real estate sector by promoting transparency and addressing financing hurdles. With CREDAI's ongoing event bringing together industry leaders, the push for improved regulations and support reflects a commitment to sustainable growth, vital for enhancing job creation and economic development in India.
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