Union Commerce and Industry Minister Piyush Goyal on Tuesday assured real estate developers that he would raise the issue of easier financing for the sector with the Reserve Bank of India (RBI) and the finance ministry, comparing it to other industries.
Speaking at the Confederation of Real Estate Developers' Associations of India (CREDAI) conference, Goyal also promised to discuss faster approvals for real estate projects with state governments and urban local bodies, provided builders commit to transparency and zero corruption.
Addressing the conference organised by CREDAI, Goyal highlighted that the Real Estate (Regulation and Development) Act (RERA) has brought greater transparency and confidence to the sector.
"Clearly, your sector is doing wonderful work and contributing immensely, whether it is to job creation, building the needs of the nation, or contributing to taxes and the national GDP," he said.
He added that the introduction of RERA has benefitted honest developers. "Ever since RERA was introduced, you will appreciate that a lot of the disciplines that were brought in were good for honest and sincere developers," Goyal noted.
"We now have a much more honest regime. Thankfully, with a lot of the unscrupulous developers out of the system, bankers are also getting more confidence in financing the sector."
Responding to concerns raised by CREDAI President Boman Irani about the lack of financing for real estate, Goyal said, "If there are any RBI problems, I’m happy to discuss them and take them up both with RBI and the finance ministry, because in some sense, as Industry Minister, you belong to me also."
Goyal also expressed his willingness to help streamline the approval process for real estate projects, provided developers operate with honesty.
"What Prime Minister Narendra Modi desires is 'Na Khaunga, Na Khane Dunga' (I will not engage in corruption, nor will I allow others to). You all have to take a pledge that you will not take shortcuts. If your industry is ready to work within bylaws, then I’ll associate with you and work towards it," he said.
Earlier, CREDAI President Boman Irani emphasised the need for affordable land, simpler building regulations, and last-mile infrastructure to support the industry.
Highlighting finance challenges, Irani said, "We are not getting loans from banks to purchase land, which is the most expensive raw material for real estate projects. We should get bank finance like any other industry. We are forced to take costly debt from non-banking financial companies (NBFCs)."
The CREDAI NATCON event, being held from September 23-26, has brought together more than 1,100 builders from CREDAI's 14,000 members.
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