Need Of The Hour Economic Respite
Ashok Mohanani, Chairman, EKTA World & VP NAREDCO, Maharashtra.
“Given the distressed economic environment triggered by the health crisis and the resultant dent in the sentiments of the consumers as well as stakeholders of the sector, the announcement today was the need of the hour and has bought some respite. The 30,000 crore special liquidity scheme for NBFCs/HFCs/MFIs will bring in cash flows thereby keeping the business cycle running and bring in some confidence in the consumer in the gloomy market. In another announcement FM suggested a suo moto relief to the developers for the registration and completion date should be extended by 6 months for all registered projects expiring on or after 25th March, 2020 without any individual applications of real estate projects under RERA in all states with an additional window of 3 months with the permission of individual state authorities. This move will ensure the sector gets operational relief. It’s a welcome move and a breather for those who are struggling to pull through the crisis. However, there is still the need to address the larger liquidity and cash flows related challenges faced by the developers. The government has stood by the expectation of the sector to treat the pandemic as a ‘force majeure’ event.
Furthermore, it’s important for the FM to grant a waiver or reduction in the interest on terms loans and consider the one time roll over of loans such that developers can focus and utilise the funds for completion of projects and repayments can be made back ended.”