Ramesh Menon
Credit: Delhi Consortiums
Union Finance Minister Nirmala Sitharaman is slated to present the Union Budget on February 1, Saturday
Ramesh Menon, the Founder Director of Delhi Consortiums believes the Budget, a strategic exercise to estimate the revenue and expenditure, for the next 12 months has the potential for a windfall for the real estate sector.
Menon said, "The forthcoming budget has the potential for a windfall from the capital of the country, Delhi. The trigger is the much-awaited gazette notification of the Delhi Master plan MPD 2041 and unlocking of more than 1 lakh crore of private sector investments which can become a revenue spinner for the government through incremental collections from real estate development."
The Master Plan for Delhi (MPD) is a policy document by which Delhi will proceed to sustainable and inclusive growth over the next two decades. The delay in the gazette notification of the plan has left a whole section of people in uncertainty.
"Landowners, investors, developers, and many residents have waited with bated breath for this overarching blueprint of urban development. Budget 2025 should prioritize the expedited completion of the MPD 2041 project, as it can be the biggest economic driver in Delhi/ NCR and potentially add 10% to India’s GDP," Menon added.
Delhi contributes over 50 per cent to the GDP of the National Capital Region, which is three times the national average per capita income. Menon believes that the MPD 2041 can double Delhi’s GDP every seven years as it covers 57,000 hectares of land, which would change the face of Delhi as a global services hub for over 31 million people.
However the delay in MPD 2041 is costing Delhi massive losses according to Menon.
He said, "this delay in finalizing MPD 2041 also denies revenues the government stands to gain. The topline potential to be captured from developments undertaken through MPD 2041 is expected to be $150 billion, and the government is likely to garner at least 30% of that through different levies."
"Approving MPD2041 will unlock such revenue streams for local civic authorities, catalyzing the development of Delhi as an economic and social hub. We strongly urge the government to prioritize the Delhi Master Plan 2041 (MPD 2041) in this year’s budget, approaching it with the focus and commitment it deserves," Menon said in his statement.