MUMBAI, June 16: The real estate developer community has expressed happiness that Union Finance Minister Nirmala Sitharaman has promised to “give a fresh and open-minded look’ at the issues such as one time debt restructuring raised by the real estate industry.
This comes as a sign of hope for the cash-strapped industry which has been asking for a one-time debt restructuring, passing the repo rate cut benefits to the end user and GST benefits, said a spokesperson of Mumbai Metropolitan Region (MMR) Action Committee of developers body CREDAI MCHI which has petitioned the Prime Minister via online garnering about 36,000 signatures pan-India. The Committee also embarked on a twitterthon with #ReviveRealEstateReviveEconomy.
Earlier, leader of Opposition in Maharashtra legislative assembly and former Chief Minister Devendra Fadnavis addressed a webinar attended by over 1,000 real estate developers yesterday and assured that the realtors “logical, genuine and reasonable” demand for a one-time debt restructuring will be taken up with the Finance Minister. He concurred with the developers that this step will bring in relief to the industry facing a lot of financial stress.
Fadnavis later tweeted: “The real estate industry requires many interventions from State & Central Government. I have assured them to take their petition to Hon FM @nsitharaman ji”.
Along with other, main issues are restructuring of loans, pushing banks, HFCs & NBFCs to pass on benefits of repo rate cuts to the consumers, input tax credit to be given under GST. I assure all members that these & all issues will be taken up with the appropriate authorities.In response, Nirmala Sitharam tweeted: “Thanks Devendra ji. Will receive the petition that you shall send. Assure you that we’ll give it a fresh and open-minded look”.
The former Maharashtra Chief Minister has also expressed his shock that banks, but for SBI, have not yet passed on the benefit of the unprecedented repo rate cut to the end consumer. He agreed with CREDAI MCHI that the massive loan repayment defaults arising out of high interest rate will ultimately lead to a big jump in NPAs for the banks as well and “this will be disastrous for the economy as a whole”. The banks’ attitude does not live up to the good intentions of the Centre and RBI who are keen on increasing the liquidity, he remarked.
Fadnavis said Prime Minister Narendra Modi is very keen to support the businesses all across which is exactly why the announced the Rs 20-lakh crore relief package with predominant focus on the MSME sector.
The MMR Action Committee of CREDAI MCHI has thanked Fadnavis and pinned hopes on the Finance Minister’s assurance.