By Accommodation Times News Service
Credai is highly disappointed with the new policy of RBI , says Prudent RBI must look at growth as well.
· High interest regime can lead to low sales and high NPAs
· Last quarter may bring smile to developers and buyers
· Lowering sentiments can be dangerous, says Lalit Kumar Jain
Appreciating the Reserve Bank of India’s concern over inflation and prudent monetary management of RBI, developers apex body CREDAI Chairman Lalit Kumar Jain has called for concentration on growth as well, looking at a promising fourth quarter.
“It is equally important for the RBI to promote economic growth by encouraging real estate and infrastructure development even as the new Governor has inflation on his mind” said Mr. Jain, who is also the CMD of Mumbai-Pune developer Kumar Urban Development Limited (KUL).
Mr. Jain appealed to RBI to take a fresh approach towards real estate, particularly from the home buyers’ point of view. He also expressed that long pending demand to give Industry status to the sector. He said MSF reduction may cut cost of funding to Banks but raising Repo Rate will negatively impact sentiments, ultimately affecting sales. He called for growth-oriented policies and giving stimulus to vital areas like infrastructure and real estate which in turn help over 250 allied industries to recover from slowdown.
“We appeal to banks to allow debt restructuring in Commercial Real Estate sector ” he said and appealed to RBI to accord Infrastructure status, particularly to affordable housing.” Mr. Jain added. He pointed out that it will be tough for developers to work in high interest regime which can also lead to high NPAs. “CREDAI is keen to meet the RBI Governor to explain the developers’ point of view and giving importance to real estate sector,” he said. CREDAI now looks forward to the government introducing some interim measures that will bring in positive sentiments in the economy. We also expect the government to exploit resources which are untapped so far,” he added.