Pune businessmen react to Union Finance Minister’s announcements

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Pune, May 14, 2020: Announcing the 2nd Tranche of measures to ameliorate the hardships faced specifically by migrant labours, street vendors, migrant urban poor, small traders self-employed people, small farmers and housing, Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman today in her press conference detailed the short term and long-term measures for supporting the poor, including migrants, farmers, tiny businesses and street vendors. Many Pune-based businessmen reacted to her announcements.


Suhas Merchant, President, CREDAI Pune Metro, said, “I am disappointed today also, nothing significant for the real estate sector so far. Now hoping for something in tomorrow’s announcements by the FM. Affordable rental housing scheme for migrant workers or urban poor is a welcome step. if implemented properly it can bring lot of organised housing and cleanness to the cities in India. Credit linked subsidy scheme for affordable housing has been extended by almost a year, expecting that about 2.5 Lac new beneficiaries could be created. In the last 3 years when this scheme was operational about 3.3 Lac citizens were benefited. So, how it will now benefit 2.5 Lac people is a big question mark. Especially, in current situation where supply of building material is yet to get streamlined and availability of labour is a big issue. Can this be called as stimulus to ailing real estate sector which is one of the highest job creator?”


Vinit Deo, CA said, “Government has decided to pursue 4 schemes for promoting affordable housing. First it will launch a scheme to convert government funded housing in the cities into Affordable Rental Housing Complexes (ARHC) under PPP mode. Second, incentives will be given to manufacturing units, industries, institutions, associations to develop Affordable Rental Housing Complexes (ARHC) on their private land and operate the same. Third, giving incentive to State Government Agencies / Central Government Organizations on the to develop Affordable Rental Housing Complexes (ARHC) and operate the same. Fourth, the subsidy on housing loans for buying houses will be extended till 31st March 2021 which will give a boost to mid-income housing as the income limit for subsidy has been set at Rs 6 – 18 lacs. This will open up new land areas for creating affordable housing complexes and also help developer to create housing projects in or near cities.”

H. P. Srivastava, Vice Chairman of Deccan Chambers of Commerce, Industries and Agriculture (DCCIA) added, “Various welfare measures announced by Hon Finance Minister as part of second tranche of package will hopefully provide relief to migrant labourers, street vendors and farmers. Extension of credit linked subsidy scheme for affordable housing for middle income group for another year should help in generating demand in real estate sector.”

Sachin Kulkarni, MD, Vastushodh Projects said, “It was to be extended in March. So its not a big bang announcement. It is MIG 1 & 2. Subsidy for higher income buyers. Has failed to excite consumers earlier as well. Nothing new for Real Estate. We need liquidity support and its not seen yet.”