Interim budget fails to cheer realty sector

February 16th, 2009 - 6:00 pm ICT by IANS  

New Delhi, Feb 16 (IANS) The Indian realty sector, which is reeling under a severe fund crunch, Monday expressed disappointment over the interim budget for 2009-10, saying the government has done nothing to provide relief to the crisis-hit industry.

“The budget has failed to meet the expectations at this time of global downturn,” said Navin M. Raheja, managing director of the Delhi-based Raheja Developers.

“The government has taken no initiatives towards reviving the sector, which is under serious recession and employs larger of the workforce,” he added.

Raheja said the industry had expected tax incentives, but the budget disappointed them.

“We had interest benefits under income tax on home loans, reduction in duties and taxes, and setting up of a special financial institution for financing real estate projects at cheaper rates,” he said.

Added Parsvnath Developers chairman Pradeep Jain: “It was completely (a) non-event. It was (more a) political statement than (an) interim budget. There was nothing for any sector, forget about real estate.”

According to Puravankara chief financial officer Ravi Ramu: “It’s an extremely dry budget.”

“The hard-hit real estate sector had been leading the call for fiscal sops for it,” he said.

Housing Development and Infrastructure Ltd (HDIL) managing director Sarang Wadhawan also shared the same view. “I personally feel it was a non-event. For HDIL, there is nothing,” he said.

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