Telangana Government working to improve Ease of Doing Business for Real Estate sector

Amidst the various steps taken by the Centre to improve the condition of severely hit real estate sector, the Telangana Finance Minister Harish Raothe said that the government has decided to work towards solving problems of the real estate, developer and builder community as the state sees them as partners in economic development. Harish Raothe informed the same on the occasion of the Second Edition of Create Awards 2019, organised by industry body CREDAI Telangana. 

He further said that Chief Minister K Chandrasekhar Rao and Municipal Administration Minister KT Rama Rao will take up the real estate industry’s request for extending TS-iPASS like facility for giving approvals to real estate industry.  

TSiPASS : The “Telangana State Industrial Project Approval and Self- Certification System (TS-iPASS) Act, 2014” (Act 3 of 2014) is an Act in implementation for speedy processing of applications for issue of various clearances required for setting up of industries at a single point based on the self-certificate provided by the entrepreneur, and also to create investor friendly environment in the State of Telangana.

Among the other requirements of the industry from the State Government was the charging of a nominal fee for sale agreements. Currently, 5% is collected and 2% is collected at the time of making sale deed. The insistence of 5% fee for the sale agreement is burdening buyers, it said. Along with these above requests, issues with GST in co-development projects and difficulty in claiming input tax credit were also flagged. 

Harish Raothe asked the developer community to join hands with the State Government in order to take up housing projects for low income groups and aid in creating tangible social infrastructure while developing their own layouts, which would be influential in promoting inclusive growth. 

Speaking of the economic slowdown, he said that several industry experts had earlier predicted doomsday for the real estate sector but the Government evolved policies that made the State an attractive investment destination. He mentioned that though the state has seen 7% growth this year in comparison to the 22% growth rates in the first three quarters of the previous year, but said that while this is low compared to State’s previous performance, it is still better than many States, which are exhibiting flat or negative growth under the spell of slowdown. He added that real estate sector in the State is comparatively doing better mainly due to the support of Telangana Government. Speaking of further steps undertaken, he informed that the government is now working on a plan to develop the 200 forest blocks present surrounding Hyderabad with focus on sustainability.

Earlier, Housing Minister Vemula Prashanth Reddy had said the State Government has been working to give further thrust to real estate sector. The latent demand for commercial space is about one crore sq.ft. (10 million sq.ft.) in the days to come. Speaking of the current state of Telangana, it continues to attract manpower resources from several States. Industrial approvals are being given in 15 days and it is possible to give real estate approvals in about three months as several departments are involved.

 

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