On Wednesday, January 6, the Maharashtra government announced a special fiscal stimulus package for all construction projects this year.
The Uddhav Thackeray-led Cabinet announced lowering of construction premiums by 50 per cent across Maharashtra till December 31. According to the decision that will come into effect immediately, all new projects sanctioned before the December 31 cut-off can avail the benefit for all premiums and levies paid during the year.
According to sources, the Congress had opposed the proposal at a previous cabinet meeting. However, the proposal has now been approved after discussions between the three parties in the government. Moreover, real estate in Mumbai, where the average cost of a roof over one’s head is still close to ₹2.8 crores and land prices are among the steepest, will be the biggest beneficiaries of the move.
Meanwhile, an expert panel headed by HDFC Chairman Deepak Parekh had back on June 14 demanded that all premiums and levies for the construction sector be halved by 50 per cent. Therefore, as recommended by the committee, the state government has ordered to give 50 per cent rebate on all the various premiums levied by the government on construction projects till December 31, 2021, and also to give concessions in the premiums levied by all planning authorities/local administrations at their level.
Amidst the outbreak of the coronavirus, the construction industry was hit hard and the builders suffered huge losses due to which this decision has been taken to revive this sector. Moreover, the consumers will also get the direct benefit of the concession given by the state government in the premium.
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