PHD Chamber calls for giving infra status to entire real estate sector

NEW DELHI: Industry body PHD Chamber of Commerce and Industry has proposed to the government to give infrastructure status to the entire real estate sector, rather than confining it to just the affordable housing segment.

Submitting its proposal to urban development minister Venkaiah Naidu post budget, the industry body urged the minister to take up this proposal to the finance ministry.

"The conferment of infrastructure status on real estate will make dwelling units competitive in cost and effective in the affordable sense and remove the prevailing ambiguities if any in this segment of Indian economy," PHD Chamber said.

This status becomes now imperative since real estate serves and handholds about 265 ancillary industries and with its consistent growth not only economic activities will widen and broad base but also additional employment be created and generated which is the need of hour, it added.

The chamber also praised the government’s budget proposals to give tax relief to the real estate developers on unsold stock as liability to pay capital gains will arise only in the year the project is completed.

Source - ET Realty