The Federation of Indian Chambers of Commerce and Industry (Ficci) has welcomed the Maharashtra Government’s move to reduce premiums charged by the civic authorities.
This is expected to give a fillip to the real estate activities in the state, it said. While on the one hand it will reduce the stamp duty burden for the buyers, on the other it will support the developers in building new projects at a reduced input cost thus effectively lowering the price for new projects in the long run, a Ficci press release said.
Sanjay Dutt, Joint Chairman, Ficci Real Estate Committee & MD & CEO, Tata Realty & Infrastructure, said the Maharashtra Government has been proactively listening to the challenges faced by the real estate sector, which is of the biggest employers and contributor to the economy.
“Despite stamp duty-reduction showing an increase in revenue for the state, the state Government realised that given the current low residential demand and reduction in prices many projects were not viable. This move will ensure that projects stuck for last-mile funding, or that have no takers of unviable projects, are considered”, said Dutt. .
He added that the reduction in premiums will serve as role model for other state governments to revive the real estate sector and bring back much-needed employment and overall reduce the pain of the pandemic.
Welcoming the announcement, Raj Menda, Joint Chairman, Ficci Real Estate Committee & Corporate Chairman, RMZ Corp, said, “This is a good move by the Government in being proactive to revive the real estate industry. We hope that other states take similar initiatives.”
Getamber Anand, Co Chairman, Ficci Real Estate Committee & Chairman & Managing Director, ATS Infrastructure, said, “It is an absolutely practical step in the right direction that will help our sector to stand up and create jobs for the unskilled and the semiskilled population of our country.”