19 May 2020, 18:00 — 6 min read
On 12th May 2020, Indian Prime Minister Narendra Modi announced INR 20 lakh crore (~270 Billion USD) economic relief package to help individuals and businesses deal with COVID-19 pandemic crisis, and to turn this crisis into an opportunity to build a Self-Reliant India “AtmaNirbhar Bharat”. Outlining his vision for a Self-Reliant India “AtmaNirbhar Bharat” that will be based on five pillars - economy, infrastructure, technology driven systems, demography and accordingly, he said the focus of the relief package will be on 4 Ls, what can be identified as factors of production i.e. land, labour, liquidity and law.
In continuation with the Prime Minister’s vision for a self-reliant India, the Finance Minister Nirmala Sitharaman, uncovered the details of INR 20 lakh crore economic relief package. She revealed these relief measures in tranches, while the first tranche focused on micro, small, and medium enterprises (MSMEs), taxpayers, non-banking financial companies (NBFCs), power distribution companies, the real estate sector, organised sector employees and contractors working with the government, the second tranche focused on migrant workers, farmers and urban poor.
The Finance Minister has announced several measures to safeguard home buyer’s interest and de-stress developers. The government has also tried to address the migrant rent issue by providing affordable rental housing schemes.
Considering the adverse impact of the Covid-19 pandemic crisis and the nationwide lockdown, real estate projects stand the risk of getting stalled and not getting completed/delivered on set timelines. The Finance Minister has announced several measures to safeguard home buyer’s interest and de-stress developers. The government has also tried to address the migrant rent issue by providing affordable rental housing schemes. The 4 key measures announced by government addressing the issues of the real estate sector are -
The measures announced by government will ease the burden on developers, enable them to complete the projects so that home buyers get the delivery of their booked houses within the revised timelines. Overall, these announcements provide the much required breather to the real estate sector that was already grappling with weak demand and liquidity crunch and provide the much needed lifelines to help it survive the COVID-19 crisis.
Also read: How is the real estate sector impacted by COVID-19
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Posted byVirendra Adhikari
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