BENGALURU: Urban development, listed as one of the priorities in the Union Budget presented on Tuesday, was a mix of old and new proposals and several statements of intent.
Finance Minister Nirmala Sitharaman, arguing that the current Housing and Urban Affairs Ministry policy is seven years old, has proposed formulating “transit-oriented development” plans for 14 large cities with populations of more than 3 million, as well as water supply, sewage treatment and solid waste management projects in 100 large cities.
She reiterated Rs 1 lakh crore under PM Awas Yojana (PMAY) Urban 2.0 to cater to the housing needs of 10 million urban poor and middle-class families. She further added, “This includes an assistance of Rs 2.2 lakh crore from the Central government over the next five years. It also envisages provision of interest subsidy to promote financing at affordable rates.”
The central government will also encourage state governments to relax stamp duty rates for all and consider further reducing taxes on properties bought by women.
One of the most notable announcements was the introduction of regulations aimed at improving the transparency and availability of rental housing. As part of a policy to boost employment, a rental housing complex with dormitory facilities for industrial workers was announced, which aims to be built through a public-private partnership.
She said land records in urban areas will be digitised with GIS mapping. Every rural land will be allotted a unique land parcel identification number, i.e. Bhu-Aadhaar. Other digitisation and registration measures for both rural and urban land were also announced.
The government also envisages a scheme to support the development of 100 “haats”, or street food hubs, in selected cities every week of each year over the next five years.
Shishir Baijal, chairman and managing director, Knight Frank India, said the initiatives taken to increase rental housing stock mark the beginning of the much-needed rental housing market in India.
“The reduction in stamp duty on properties bought by women will encourage more women to invest in real estate,” said Amrita Gupta, director, Mangram Group and founder and chairperson, CREDAI Rajasthan Women’s Association.
Colliers India CEO Badal Yagnik said capital expenditure of over Rs 11 trillion on infrastructure development will also boost real estate growth in tier I and II cities.
“However, some of the key demands of the real estate sector like granting industry status, input tax credit, GST reduction and one-stop settlement have not been met in the Union Budget 2024,” said Pavitra Shankar, managing director, Brigade Enterprises.
“The government has marginally increased capital allocation for the Ministry of Road Transport and Highways (MoRTH) to Rs 2.72 trillion in the FY25 Budget estimates, up 3 per cent, from Rs 2.65 trillion in the revised FY24 estimates,” said Vinay Kumar G, vice president and division head, corporate ratings, ICRA Limited.
Union Budget 2024 Live | Nirmala Sitharaman presented a record seventh consecutive Union Budget as Finance Minister under the Modi 3.0 government on 23 July 2024. The Budget brings tax cuts for the middle class, focuses on employment through skilling and encourages employers. You can follow the latest coverage, live news, in-depth opinions and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube and Instagram.
Published on 23 July 2024 at 22:55 IST
