A 'neutral Budget' for real estate - Punit Beriwala, MD, Vipul Ltd
New Delhi, July 06, 2009: Commenting on the Budget announced by the Finance Ministry today, Mr Punit Beriwala, MD, Vipul Ltd, the leading real estate player, said that the budget is stable for over all economic development but does not offer much benefit to the realty sector.
"We applaud the new Government for proposing a strong mandate for overall growth. However, we feel that there are no benefits given to the realty sector. The real estate sector is already reeling under cash crunch and lower demand levels. Efforts could have been to take the corrective measures to overcome this and spur demand which was the need for hour," Mr Punit Beriwala, Managing Director, Vipul Ltd said.
Commenting on the announcements to revive the infrastructure sector, Mr Beriwala said, "We support the encouragement provided to PPP model for improvement in infrastructure and a boost to rural housing fund, as this will take the economy to a higher growth trajectory. A higher rate of allocation to highway projects and exemption from excise duty on pre-fabricated concrete slabs will help providing fillip to the infrastructure sector. In addition, the move for allocation of funds for urban poor towards providing housing and basic amenities and the increase in allocation for Jawaharlal Nehru Urban Renewal Mission by 87 per cent is indeed commendable and will help in balanced rural- urban development"
"The budget will have a neutral implication on real estate sector with no fresh life given to the real estate" Added Mr Beriwala.
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Union Budget