Cleaning The Mess

Starting with the Budget (July 5) for the current fiscal, last few months have seen a series of announcements by Finance Minister Nirmala Sitharaman aimed at reviving the ailing real estate sector. From tax benefits for affordable housing announced during the Budget to a special Rs20,000 Crore package in September for last mile funding of stuck housing projects, followed by the corporate tax rate cut—the government seems to be making all the right stops. The government has also announced relaxation of External Commercial Borrowing (ECB) guidelines for affordable housing to facilitate financing of homebuyers who are eligible under the Pradhan Mantri Awas Yojana. Meanwhile, the Reserve Bank of India (RBI) has complemented the government’s efforts by a series of lending rate cuts, which are expected to provide relief to homebuyers like lower home loan interest rates. The RBI...