The Hindu Business Line : India Inc pitches for `attractive' housing policy

WITH the Government proposing to review the National Housing Policy, India Inc has pitched for certain incentives that would make it more attractive for all stakeholders - public, investors, and farmers.

The Government had recently announced that a new Housing Policy - focussing on expansion of housing for weaker sections in rural areas and for expediting urban reforms process - was in the offing.

Stating that the existing policy on procurement of land is not congenial to investment of private capital in urban development, the Federation of Indian Chambers of Commerce and Industry (FICCI) has said that in the changed investment scenario it has become necessary to review the arrangement.

"This is in order to ensure that the land is procured by private developers and colonisers directly from the farmers and land owners without putting financial burden on the State and Central Governments on land acquisition for public purposes."

In a representation to the Minister for Urban Development, Mr Ghulam Nabi Azad, the Chamber has submitted that various development authorities have been acquiring land and developing infrastructure, while the role of private developers have almost been limited to building works only.

One of the factors, which may help private developers in procuring land after giving good prices to the farmers, is the incentive of the refund of stamp duty paid by them, a facility which can be given to them after the development work is complete, FICCI said.

This would not only reduce cases of evasion of stamp duty but also attract good investment in the areas, FICCI stated.

The Chamber also cautioned that the procedure of refund of stamp duty to the builders should be clearly laid down in a transparent manner so that the policy may be pragmatic and attractive.

The stamp duty rates charged by various States is `very high', FICCI said adding, that under these circumstances, development of raw land into a residential plot also becomes costly and ultimately the common man has to bear the financial burden.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page