The Hindu Business Line : AP to give sops for integrated townships; revive realty

Industry & Economy - Real Estate & Construction
Government - Policy
States - Andhra Pradesh
AP to give sops for integrated townships; revive realty

Our Bureau

Hyderabad, Nov. 8 The Andhra Pradesh Government will soon announce concessions for integrated township projects to revive the real estate sector, which is hit by an economic slowdown.

Speaking at the inaugural session of a seminar on ‘Housing for All’ organised the Confederation of Indian Industry here on Saturday, Mr Silpa Mohan Reddy, Minister for Housing, Government of Andhra Pradesh said the concessions would be formalised within a month.

The integrated townships could come up in plots of 100, 50, 25 and 10 acres in major cities, tier II cities, towns and mandal headquarters respectively, he said.

“If the promoters can pool in land in the required acreages, the Government will provide basic amenities like water supply besides some specific tax sops,” the Minister said.

Mr C. Shekar Reddy, President, Builders Forum of AP said the ‘revenue target-based approach’ of the Department of Revenue was also behind the unreasonable increase in the land/housing prices.

“The frequent revision of market value rates by the sub-registrar’s office is also escalating the housing prices. A least-rate system should be adopted,” he suggested.

The builders/promoters would have to get clearances/permissions from 18 departments by paying various taxes. “There is no clarity on the maximum tax payable on a single square foot area of housing. About one-third of the housing cost goes for taxation. The Government should provide for a figure for taxation at a single source,” Mr Reddy said.

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