Confederation of Real Estate Developers Association of India (CREDAI) Srikakulam district president Harika Prasad implored the State government to come to the aid of the crisis-ridden construction industry.
Speaking to The Hindu on Thursday, Mr. Prasad, who has 26 years of experience in real estate, said many builders have shelved new projects due to the hiking of the prices of sand and other construction materials. He has said that the cost of sand was skyrocketing in Srikakulam, even though Nagavali and Vamsadhara rivers were in its vicinity.
“A tractor load of sand now costs around ₹4,000 when only a couple of years ago it was available for ₹1,500. Private companies which handle the mines are collecting unprecedentedly high charges for stone chips and other construction materials. The government should relax the norms to give the much-needed impetus to the construction industry,” he said.
‘Reduce stamp and registraton fee’
Mr. Prasad said that only 35 new apartment projects were under way in Srikakulam, and the number might go up to 80 if the government instils confidence among the small and medium-range builders who struggle to mobilise funds for new projects.
“The government should also consider reducing stamp and registration fees as it has become burdensome for buyers who are forced to shell out at least ₹1.5 lakh for the registration of even a small flat”Harika PrasadCREDAI Srikakulam district president
“The government should also consider reducing stamp and registration fees as it has become burdensome for buyers who are forced to shell out at least ₹1.5 lakh for the registration of even a small flat,” he added.
He added that many builders were hesitating to take up new projects because of the hike in land value too. “Almost every year, the government enhances land market values, although the actual values were much lower. It makes the owners sell land only for market value, putting additional burden on the builders, and it has a cascading effect on the buyers,” he added.
He urged the government to request cement and steel companies to stabilise the rates to boost the realty sector in all places.
“Currently, a cement bag is sold at ₹360, and a tonne of steel is sold for ₹60,000 per tonne. Any escalation of rates will hamper the industry growth further,” Mr. Prasad said. He added that the sector is crucial as it provides direct and indirect employment to thousands of people in Srikakulam and other parts of the State.
