Satish Magar, President, Confederation of Real Estate Developers’ Associations of India (CREDAI) (National), said that the real estate sector expected more stringent measures from the RBI booster to revive the economy.
“The real estate sector can act as a catalyst in resurrecting the economy, backed by stringent fiscal and non-fiscal measures. The move of moratorium extension is a short-term piecemeal solution to a long-term problem. Interest rate should be reduced with firm liquidity measures, as this is the need of the hour, backed by one-time restructuring of loans to help the real estate sector from crumpling,” said Magar in a press statement.
He added that RBI has tried to ease the pressure on borrowers and has extended the group exposure limit for lenders to corporates from 25 per cent to 30 per cent, but this is not enough to solve the ongoing liquidity crisis.
“Government now needs to ensure that banks are forthcoming and are passing on the benefits to us. Currently, there is a dearth of income in the sector owing to the Covid-19 crisis,” said Magar.
He added that the real estate industry remains the second-largest employer after agriculture and prolonged slowdown in the sector will have a direct impact on the survival of 269 allied industries. Hence, it is critical for the government and RBI to take immediate measures to provide economic relief.