Real estate sector in a state of complete breakdown: Sharad Pawar writes to PM Modi

Nationalist Congress Party (NCP) chief Sharad Pawar has written to Prime Minister Narendra Modi seeking his intervention in the real estate sector which is in a state of a complete breakdown. 

Sharing the letter dated May 27 on Thursday, Pawar took to Twitter to express his concern over the current scenario of the real estate sector in India amid the lockdown due to the coronavirus pandemic. 

In his letter, the veteran leader urged Narendra Modi to personally look into the matter and initiate necessary measures for revival of “one of the most important sectors of the economy”. 

Moreover, Pawar said that the “out flux” of labour and stagnant consumer demand have taken a toll on this industry which contributes substantially to the national GDP. He acknowledged that the real estate sector was struggling amid the lockdown due to the coronavirus outbreak. 

“The Real Estate Sector is in a state of a complete breakdown. Massive out flux of laborers', halted work & sale for almost three months, stagnant consumer demand and impaired economic activities have taken a toll on this industry which contributes substantially to the national GDP (sic),” Pawar tweeted on Thursday. 

The former Union Minister further informed that the Confederation of Real Estate Developers Association of India (CREDAI) has also written an open letter regarding the same and has requested for the immediate intervention of the Prime Minister to support real estate sector.

CREDAI has made a few recommendations like the onetime restructuring of loan, additional institutional funding, waiver of penal interest and policy innovations for triggering criterion of affordability for GST applicability and operationalisation of SWAMIH fund to help the sector, he said. 

The Special Window for Completion of Construction of Affordable and Mid-Income Housing (SWAMIH) fund was created by the government with contributions from financial institutions like SBI and LIC. This was done to complete over 1,600 stalled projects with 4.5 lakh housing units. 

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