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Comprehensive approach to real estate sector
July 31, 2024The Union Budget 2024 has been announced in the hope to lay foundation for a ‘Viksit Bharat’ by 2047 under the continuing “Amrit Kaal from India at 75 to India at 100”. Some of the real estate related highlights of the Union Budget 2024 are as follows:
(i) Pradhan Mantri Awas Yojana: The Union Budget 2024 expanded the Pradhan Mantri Awas Yojana and announced that 3 (three) crore houses have been proposed to be completed for the identified beneficiaries of the PM Awas Yojana, both rural and urban. The Finance Minister also stated that under the Urban 2.0 scheme, the focus will be on fulfilling the needs of the urban poor and the middle class sector with an investment of INR 10 lakh crore including assistance of INR 2.2 lakh crores in the next 5 years from the Centre. Further, the provision of interest subsidy to facilitate housing loans at affordable rates is also under contemplation. With the inclusion of the middle-class sector under the aegis of the schemes, urban housing development has become more inclusive.
(ii) Rental housing scheme: Rental housing for industrial workers has been announced and the Government has also undertaken to establish, facilitate and develop dormitory type rental housing for industrial workers. In order to do so, Public-Private Partnership (PPP) model is proposed to be implemented. This is also expected to boost development opportunities in the rental and affordable housing section.
(iii) Focus on industrial corridors and industrial parks: The Finance Minister announced that the government will facilitate development of plug-and-play industrial parks across 100 (hundred) cities and under the National Industrial Corridor Development Program, the Government aims to grant approval for development of 12 (twelve) industrial parks. These industrial parks will be established in partnership with the States and the private sector by better deployment of the town planning schemes. Additionally, the Finance Minister has announced development of an industrial centre at Gaya in Bihar on the Amritsar-Kolkata Industrial Corridor along with development of road connectivity projects in Bihar. Further, an amount of INR 26,000 crores has been allocated for development of an additional two-lane bridge over the River Ganga. These initiatives are envisaged to catalyze industrial development of the eastern region.
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(iv) Urban development: The Government working with the States, proposes to facilitate development of peri-urban areas by way of effectively using town planning schemes and promotion of economic and transit planning in order to promote ‘Cities as Growth Hubs’. The Government also announced that it will formulate policies and frameworks for creative brownfield redevelopment of existing cities. Additionally, the Finance Minister also said that Transit Oriented Development plans will be formulated for 14 (fourteen) large cities which have a population above 30 (thirty) lakh.
(v) Moderation of stamp duty: In a bid to further strengthen the urban development schemes, the Finance Minister announced that States levying high stamp duties on property-related documents will be encouraged to moderate the stamp duties. Additionally, reduction in stamp duty for purchase of property by women, will also be considered. These measures are also set to be incorporated as essential components in the prevailing urban development schemes.
(vi) Land Related: For both urban and rural lands, the focus would be on betterment of land administration, planning and management. Specifically for rural lands, by way of the Union Budget 2024, the Finance Minister has announced that States would be encouraged to adopt a ‘Unique Land Parcel Identification Number’ or ‘Bhu Adhaar’. In order to promote the digitisation of land records, States will also be encouraged to undertake digitisation of cadastral maps, establishment of land registries and linking the landowners/farmers to the land registries. Updation of the survey maps, based on existing sub-divisions and actual ownership is also planned.
For urban lands, the focus would be on enhancement of urban planning, usage and building bye laws. The land records in urban areas will also be digitised with a GIS-based mapping system. Additionally, an IT based system for property records administration & updation and tax administration is proposed to be established. The Finance Minister opined that these steps will also help in strengthening the financial position of the urban local bodies. Additionally, such reforms, more particularly the digitisation of records, will also enhance the availability and accessibility of these records and ensure transparency in the system.
This article was originally published in Realty+ on 31 July 2024 Co-written by: Mrinal Kumar, Partner; Shrutikirti Kumar, Partner. Click here for original article
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This is intended for general information purposes only. The views and opinions expressed in this article are those of the author/authors and does not necessarily reflect the views of the firm.
Shrutikirti Kumar
Partner
