Investors Eyes Big On Budget 2012-13

Union Budget is one of the exigent annual cost-effective occurrences in India

. Almost every sector and various companies are directly and indirectly depend on budget for their investment and other policy decisions. Same like every year, this year also the corporate sector expected a lot but the Budget 2012-13 illustrated independent reality.

This year budget has not taken significant implements to rise-up real estate industry. This Budget drew mixed effects where the positive announcements were made in sectors like power, infrastructure, agriculture and aviation but the hike of excise and service tax disappointed the entrepreneurs which will result in an increase in cost of construction.

Real Estate contributes huge percentage in GDP growth. Any improvement to this sector would help to boost GDP growth. But the Union Budget has done very little to strengthen real estate industry. The increased burden of 2% service tax and excise duty may decrease the demand of property.

The increase in excise and service tax disappointed the enterprisers a lot, also its consequence may raise inflation rate. The budget offered almost no relief on home loan rates, cost of construction materials, project funding and taxes except for the ECB approval for Affordable Housing.

The Government also has tried to focus on affordable housing by allowing External Commercial Borrowing (ECB) for low-cost housing and extending the interest subvention for one more year for loans up to Rs. 15 lakh on property costing up to 25 lakh.

The extension of the one percent interest subvention scheme for low cost housing is a great turn for this sector. This makes it possible for developers to get funds at a lower cost. In order to ease liquidity, the government has also reduced withholding tax on ECBs for affordable housing from 20% to 5% for 3 years.

To expand Noida, greater Noida and the Yamuna expressway the Government is bringing-up with newer projects in the shortest possible time. Also the UP state Government has approved some development plan of Noida extension and forwarded it to the NCR planning board. Corporate and industrial group is taking a huge interest to purchase land in this area. The sale of plots for industries and corporate by the Yamuna Expressway Industrial Development authority (YEIDA) is on huge success. Although the value is already much higher, it is believe that this region will soon overtake the development in other NCR area. Noida and Greater Noida have world-class infrastructure, which will help the country in attracting foreign investments. Noida real estate development has been done in a planned manner. It is believe that in the next five years, greater Noida will become a large residential center with all the facilities and good infrastructure.

The NCR planning Board granted a conditional approval for greater Noida master plan 2021. The plan is dedicated to development of township in greater Noida. The NCRPB (National Capital Region Planning Board) has recommended certain changes to be incorporated in the master plan before it could be approved by the boards technical committee. It is a positive and significant step to develop the Noida extension and the whole matter will be resolved by April. The changes proposed by the board would also be incorporated in the sub-regional plan of UP. The approval mainly pertains to change in land use of around 2500 hectares in greater Noida that the authority claims was approved by the state govt. The decision will help developers in reducing the delay in giving delivery to the buyers.

333acre

by: Neeta Israni

POST COMMENT

Hamilton Park Montessori School High Degrees Of Cholesterol Get Your Personal Injuries Compensated With Personal Injury Solicitors Manchester Care & Recommendation For Brass Door Knobs Tips To Obtain Leading Los Angeles Dui Law Firms Professional Course After 12th In Commerce How A Chiropractor Helps With A Whiplash After Your Car Accident Gay Surrogacy Best For Childless Gay Couple Affordable Prices Dc Power Socket Repair Serivces In London Payday Loan Requirements- Quick Cash Solver For Everyone How To Find The Best Special Voice Training In Kolkata Vascular Bundle Your Excellent Dentist Davie