Real estate developers met finance minister Pranab Mukherjee recently to press for incentives in the forthcoming budget to boost housing. Among their key demands was a plea to allow external commercial borrowings (ECBs) for home builders.

CREDAI(Confederation of Real Estate Developers Association of India), on its part, has asked for bankers’ support for completion of ongoing projects. It further pressed for allowing developers to avail overseas funds through external commercial borrowings (ECB). At present, ECB is prohibited for housing development. ECB in housing construction will be supplemental to the funds from banks and financial institutions and in the long term will reduce the cost of finance, thereby reducing the price of houses in the country, according to CREDAI’s pre-budget memorandum to FM.

CREDAI has continued to advocate the major issues which would influence the development of the sector as well as the national economy as a whole. In its pre-budget memorandum to the Govt of India, CREDAI had strongly recommended for Fiscal incentives for encouraging ‘Affordable Mass Housing’ in the country, Exemption of direct and indirect taxes to boost ‘Slum Redevelopment’ initiative, Increasing deduction on interest paid on Self Occupied Residential House Property and Incentives to senior citizens on purchase of housing.

Rajeev Talwar, group executive director of the real estate major DLF and Pradeep Jain, president Credai were among the industry leaders who met the FM.

Among the many demands realtors have asked for continuation of tax holiday under section 80IB(10) for projects approved between April and March 2008 and completed before March 31, 2012. The concession was initially available before 2007.

Amit Jain