Date:26/12/2008 URL: http://www.thehindu.com/2008/12/26/stories/2008122660541700.htm

Business

‘Single window can hasten projects’

Special Correspondent

CREDAI seeks
uniform

charges
Focus should be
on worthwhile
projects

CHENNAI: Common laws across the country, single-window approval system and reduction in indirect costs are among the various suggestions made by the Confederation of Real Estate Developers’ Association of India (CREDAI) to facilitate affordable housing for end-users.

These suggestions come even as the Government, the Reserve Bank of India and public and private sector banks have come out with a series of fiscal and monetary measures to boost the housing sector.

T. Chitty Babu, Secretary of the Tamil Nadu unit of CREDAI, said common laws across the country would make the system transparent and encourage regional players to go national. “Uniform development charges, infrastructure and impact fee and rationalisation of stamp duty will accelerate development,” he added. This would go a long way in encouraging people to invest in any part of the country.

In an interaction with this correspondent, Mr. Babu said “the need of the hour for the Government is to introduce the concept of a single-window system on the lines created for the IT (information technology) sector so that the approvals for the projects can be obtained within a maximum timeframe of a month as against the current scenario of a year. This could easily ensure a saving of at least Rs. 300 a sq. ft,” he said.

CREDAI, he said, would like the Government to look at reducing the impact fee, infrastructure and stamp duty charges. These, he said, were adding up to the project cost significantly. “A reduction in these indirect costs will certainly bring down the cost of purchase,” Mr. Babu said.

Project costs were a function of the prevailing land price and construction costs. “In addition to these, buyers also seek features/ amenities and infrastructure that make living enjoyable,” he said. As such, he felt that the focus would continue to be on building good quality projects with emphasis on functionality and comfort. The reduction in interest rates on housing loans worth Rs. 20 lakh and below would prompt many developers to announce projects to cater to this segment too. Till the slowdown in the economy, the real estate market saw a number of customers buying homes as an investment proposition. In the short-term, this section of customers might decrease in segments above the Rs. 30 lakh bracket, Mr. Babu said.