Credai conclave stresses on ease of doing business in realty sector

The Confederation of Real Estate Developers’ Associations of India (Credai), flagged off its annual summit themed ‘Clean India-Skilled India-Strong India’ at Hotel Taj Palace, in New Delhi on Wednesday.

The Credai Conclave 2015 witnessed the participation of Gujarat Chief Minister Anandiben Patel, Minister for Skill Development and Entrepreneurship Rajiv Pratap Rudy and Minister for Labour and Employment Bandaru Dattatreya.

A letter on behalf of Uttar Pradesh Chief Minister Akhilesh Yadav to Prime Minister Narendra Modi was presented at the conclave. The letter stated the UP Government’s intent to develop international airports in Jewar, Greater Noida and Hiran village in Firozabad to promote tourism in Agra. The CM requested the Prime Minister to provide quick clearances for land acquisition in Jewarand Firozabad.

In her address, the Gujarat CM appreciated Credai’s role in organising the conclave which brought the Government and real estate sector together. Credai’s concern on the need for not implementing RERA on ongoing projects was acknowledged and agreed upon by her.

Keeping in view the shortage of skilled manpower in the construction sector, Credai has started skilling of construction workers under the Pradhan Mantri Kaushal Vikas Yojana  in partnership with the Construction Skill Development Council of India (CSDCI). Under the scheme, Credai aims to train over 2,000 construction workers by the next quarter. As a logical next step in this partnership, Credai will ensure that at least 20 per cent of the labour is employed in various construction projects by each of its members.

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An MoU to this effect was signed between Credai President Getamber Anand and Col. Ashwani Kumar Joshi, CEO, CSDCI.

Speaking at the conclave, Anand said, “A single-window clearance system is required to reduce the time and cost involved in navigating the complex web of permissions between various departments. This accounts for 25 per cent of the cost paid by the buyers. Duplication of taxes levied through ESI and BOCW should also be removed. We request both the Central and state governments to ensure that judgments by any High Court should be considered valid across the country. This will not only save time and effort for the developers but will also benefit the end consumer.”

Rohit Raj Modi, Vice-President, Credai National, said, “Regulatory environment needs to be altered to promote real estate in the country. Ease of Doing Business is an index coming out of the World Bank. India stands at 186 in the ranking of 189 economies on the Ease of Doing Business. Under construction sector we have moved up only one position since the 35 per cent of the weighted average on which EODB index is calculated, is construction permissions. If fringe expenses are cut down for developers the sector will get a boost as benefits will be passed onto the customer”.

The new Real Estate (Regulation and Development) Bill, 2015, and its implications were also discussed at length at the conclave. The consensus was that ongoing projects should be kept out of the purview of the new Bill as the registration of such projects would delay their completion. Credai made a submission to the Government to keep commercial real estate out of the influence of the regulator.

The first edition of Credai CSR Awards across 12 categories was also held at the conclave to honour the efforts of real estate sector towards social causes. Credai also announced the formation of a Credai Education Scholarshio Fund (CESF) which has been seeded by initial contribution of Rs25 crore by developers all over the country.

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Sanjaya Gupta, MD of Punjab National Bank Housing Finance Ltd. was felicitated by Skill Development Minister Rudyin recognition of his company’s contribution to CSR activities. Rana Kapoor, Founder, MD & CEO of YES Bank was also felicitated for his contribution to Infrastructure, smart urbanisation and affordable housing.

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