DLF seeks lower interest rates, defers projects (Second Lead)November 18th, 2008 - 7:29 pm ICT by IANS
New Delhi, Nov 18 (IANS) Hit by liquidity crunch, India’s leading real estate firm DLF Ltd has deferred some projects and urged the government to slash interest rates by three percent to stimulate growth, a top official said here Tuesday.Some projects in the residential hotel and commercial sector have been deferred due to the current situation and the company has also fired some employees, DLF Group chairman K.P. Singh told reporters here on the sidelines of the World Economic Forum-India Economic Summit.
However, he did not give any number of the job cuts.
“The demand is low because people take mortgage loans which have interest rate of 12 percent,” he said.
Singh added that the optimum interest for mortgage home loaners would be seven percent, which will provide incentive to fuel demand.
“Present interest rate has to be brought down at least by three percent. Inflation is not a factor now. You have to flush the market with more money,” he said.
Commenting on Finance Minister P. Chidambaram’s call for the industry to cut down prices, Singh said real estate prices were bound to come down and the government should play its role in the matter.
“The government has to ensure through regulatory mode and policy to facilitate larger supply of housing in the market, then the prices will come down,” he said.