Budget 2013: FICCI demands industry status to real estate sector

NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (FICCI) demanded industry status to be granted to real estate sector in the upcoming Budget 2013.

In a statement, FICCI said, "it is requested that real estate sector be granted industry status for easier availability of funds for purposes of availing long term and short term finances."

FICCI also demanded infrastructure status to development of integrated townships.

"An integrated township involves development of residential, institutional, educational, medical, community and commercial buildings, etc. In the process of development of an integrated township, apart from development and construction of above establishments, various facilities such as roads, water supply, sewerage system, sanitation, water treatment, electrification, landscaping, solid waste treatment, horticulture and other civic services are required to be created/provided," FICCI said.

It added that while according approval, the State Government specifically directs that development projects including all facilities/services created/provided therein will ultimately be handed over to respective State Governments/Local Bodies and shall not remain with the developer and these integrated township projects are therefore in a way at par with the BOT (Built, Operate & Transfer) projects.

"In the light of above facts and in order to motivate the genuine real estate companies to come forward and step into promotion and development of large integrated townships in line with above arrangements to mitigate the huge shortage of housing to all class of society, it is requested that integrated township development projects be brought within the definition of infrastructure," FICCI added.

Source: http://economictimes.indiatimes.com/markets/real-estate/realty-trends/budget-2013-ficci-demands-industry-status-to-real-estate-sector/articleshow/18480196.cms