Look beyond sops from govt, Jaitley tells realtors

Look beyond sops from govt, Jaitley tells realtors

 Sending a strong signal to real estate players across the country who have been seeking sops from the government, finance minister Arun Jaitley said that realtors should look at ways and means beyond subsidies for survival.

“The essence of your industry cannot be that I can survive only on subsidies. You have to survive on the strength of the market economy itself and you have to survive on the strength of the banking system to finance you,” Jaitley said.

Jaitley also expressed hope that the sector will be big growth driver for the economy going forward and will have better days going forward.

“With a much more strengthened banking system, a stronger growing economy, a great aspirational desire to the people, this is a sector which we look forward to as becoming an important engine of growth. I am sure the age of slowdown in your sector in the past few years should now come to an end and should look for far better economic activity and  better housing for the people of India in the months and years to come,” Jaitley said.

Jaitley also said that they are reviewing all the taxation proposals besides looking issues concerning the power sector. “Some of the issues that you (real estate players) raised makes sense. When real estate prices have come down, the circle rates also have to be reasonable. We have constituted a committee who are reviewing each provision of the Income Tax Act,” Jaitley said.

What is most important now is to improve the health of the power sector companies the last mile of the power sector. The distribution companies in some of the states have been in distress.

This policy of not charging the consumer for the cost of power has made those discoms dependent on banks. Banks cannot indefinitely fund them in order to subsidise consumers for their political reasons and therefore not only the discoms owe money, the power producing companies also feel distress because nobody is buying their power and very soon we will be addressing issues regarding the power sector, Jaitley added.

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