Confederation of Real Estate Developers Association of India (CREDAI) State vice-president K. Subhash Chandra Bose on Saturday hoped that the new government would look into the issues of the construction industry, which has been facing multiple challenges in the last few years. He said that the revival of the construction industry was the need of the hour to create employment opportunities at the local level, as well as the generation of economic activity and tax revenue to the exchequer.
Speaking to The Hindu, he said that stamp duty needed to be reduced to 5 percent from 7.5 percent since it had become a big burden for the buyers, as they were being forced to spend nearly ₹4 lakh for the registration of flats, each worth ₹50 lakh.
He said that the builders were unable to reduce the cost of the construction as cement prices had gone up to ₹350 per bag, with cement coming under the 28 percent Goods and Services Tax (GST) slab. He said that steel was available at price close to ₹70,000 per tonne and a load of sand in lorry cost nearly ₹40,000.
According to Mr. Bose, the cost of electrical, plumbing and other materials’ had increased sharply in four years. The square feet (sq. ft) cost which was around ₹2,800 has gone up to ₹4,000 to ₹4,500 in cities such as Vizianagaram. Many builders stopped construction activity as buyers are not coming forward to purchase flats at higher rates.
“The new government which will be formed in the first week of June has to come out with a policy to revive the construction industry. Its restart is the need of the hour for the benefit of many industries which are dependent on construction activity. Generation of employment and economic activity are possible when the government considers our proposals,” said Mr. Bose, who is also the managing director of Pride Developers.
He hoped that the new Chief Minister and concerned Ministers would hold a meeting with all stakeholders and representatives of CREDAI to resolve the issues of the industry.
