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Budget 2021 is Growth Oriented Budget: Sanjay Dutt

In Business
February 02, 2021

“The lockdown in 2020 and its subsequent continuation in 2021 has caused lot of disruption and set back to the economy as well as the real estate sector. The Government therefore had to focus on providing relief to people and the industry, said Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited on Budget 2021.

We welcome the Government’s intent to deliver a growth oriented budget. However, we had expected the government to do more for the sector because of the multiplier effect it has on the economic growth. The Government’s measures in 2020 have only provided some relief. The budget provided an opportunity to consider lowering GST on building materials, no GST on JDA and TDR, extended the tax benefit from affordable to mid housing would have made a significant impact. Additionally, allocating additional capital for distressed funds could have eased the liquidity needed for last mile funding, allowing FDI in ready to move in inventory to unlock capital and provide for liquidity to NBFC, Banks and Developers.

Acknowledging the role of NRI homebuyers and increased interest amid the pandemic, the government’s decision to reduce NRI residency limit will help. Raising customs duty on solar inverters to 20% from 5% is likely to add to the cost of the commercial and residential developments while monetization of land is likely to provide more land for development and arrest its rising cost.

For the investor community, we are pleased with the proposal to make dividend payments to REITs (Real estate investment trusts) and INVITs (Infrastructure investment trusts) exempt from TDS. The Indian real estate sector is at an interesting juncture and I strongly believe REITs will define the future as they allow investors to expand their range of properties. The Finance Minister’s plan to introduce a Bill to set up a DFI (developmental financial institution) for long-term funding infra projects with a capital of Rs 20,000 crore and lending Rs 5 lakh crore in the next 3 years is a great move for India’s sustainable infrastructure. We look forward to working with the government for these crucial infra projects by leveraging the Tata brand to contribute to India’s exciting growth story.”