Sydney. Union Commerce and Industry Minister Piyush Goyal on Tuesday assured real estate businessmen that he will take up the issue of providing easy financing to the real estate sector like other industries with the Reserve Bank of India (RBI). The minister also assured that he will talk to state governments and urban local bodies for speedy approvals for real estate projects, provided the builders promise to do business in a corruption-free and transparent manner. Addressing a program organised here by CREDAI, the apex body of the real estate sector, Goyal said that the Real Estate Related Act RERA has brought transparency and certainty in the real estate sector.
He said, “Clearly your (real estate) sector is doing a great job and contributing immensely… whether it is job creation, meeting the needs of the nation… contributing to taxes and national GDP.” The minister said that since RERA has been implemented, “you will appreciate that the discipline that has been brought in through it is good for honest and sincere developers…” He said, “Now we have a more honest system. Thankfully, now many unscrupulous developers have been out of the system and now bankers are also showing more confidence in financing this sector.”
On the question of CREDAI President Boman Irani that real estate is not getting finance like other industries, Goyal said that he will raise this issue with RBI and Finance Ministry. He said, “If you feel that more emphasis is needed on this, then the government will be happy to work with CREDAI and your various organizations.” Goyal said, “If there is any problem with RBI, then I am ready to discuss it and raise it with the central bank and the Finance Ministry, because as the Industry Minister, you people are associated with me.”
The minister also said, “Prime Minister Narendra Modi says that ‘I will not eat, nor will I let others eat’ and all of you also have to take a pledge that you will not try to take easy ways (shortcuts). If your industry is ready to work under the rules, then I will come with you and work in this direction.”
Earlier, CREDAI President Irani said the industry needed land at affordable rates, simple building bye-laws and last-mile infrastructure. On financial problems, Irani said real estate developers were not getting loans from banks to buy land. “We should get finance from banks like any other industry. We are forced to take expensive loans from non-banking financial companies (NBFCs),” he said. The Confederation of Real Estate Developers Association of India (CREDAI) has around 14,000 real estate developer members across the country. CREDAI is organising its flagship conference CREDAI Natcon here from September 23 to 26. More than 1,100 representatives from the real estate sector are participating in it.
