The Hindu Business Line : FICCI urges Govt to promote investment in real estate sector

THE Federation of Indian Chambers of Commerce and Industry (FICCI) has recommended to the Government measures to facilitate investment in the housing and real estate sectors.

It has also sought support to specialised and organised professional bodies and funds such as Real Estate Investment Trusts and Real Estate Mutual Funds on the lines being operated in the US and other developed countries.

The chamber has pointed out that dynamic developers and foreign and domestic investors can earn handsome returns on their investment to boost real estate development and housing in terms of the National Housing and Habitat Policy, provided the Government takes earnest steps to smoothen investment flows.

Outlining some of the issues, which the chamber felt that the Government needs to address, it urged for allowing foreign companies to purchase office buildings and high-end condominium buildings for rental purposes so that the supply of these properties increases and rental values come down. FICCI also asked for the creation of a special cell to process and recommend all foreign domestic investment (FDI) cases. FICCI has pressed for allowing import of sophisticated plant, machinery and equipment for better quality and speedy construction.

Further, foreign design and consultancy companies should be encouraged to set up offices in India and FDI in group housing condominiums, shopping malls and retail business must be allowed.

The chamber also wanted the reduction in the area for integrated township development to 50 acres and the expedition of privatisation of airports and ports. Besides, there are several other issues that fall in the domain of the States and they need to be urgently addressed.

FICCI has suggested that the Union Government should prepare guidelines or a model legislation for circulation to States for their adoption with little or no variations according to the States' requirements.

It has also underlined the need for rationalising the stamp duty so that it is brought down to two to three per cent as per global practices.

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