There should be single window and online clearances and automatic environment clearance. The projects may be given online approvals and licenses within the prescribed acts and bylaws as long as they qualify all the laid down parameters instead of present slow and bureaucratic process full of red-tapism. This will considerably cut down the cost thus making housing affordable.

Rohtas Goel, CMD, Omaxe:

Developers are facing acute liquidity crunch and finding difficulties in servicing debts. Restructuring allowed up to June 2009 has provided immense relief. As the recovery is likely to take more time, further restructuring should be allowed, wherever required.

Section 80 IA of IT Act exempts 100 per cent income from infrastructure projects from income tax for ten consecutive assessment years. Group housing and integrated township development should be brought with in the definition of infrastructure and added in explanation under sub section 4. The sector should be granted status of industry for all concessions, rebates and easy finances for giving proper boost to a very important sector of economy.

As per the Section 24 of IT Act, deduction on account of interest payment on housing loans is 100 per cent for rented dwelling units and Rs 1.5 lac for owner occupied houses.

There should be Dedicated Affordable Housing Fund like the Infrastructure Fund for EWS/LIG housing and lend to developers at cheap rate.

The risk weight on housing loans upto Rs 30 lakh with LTV upto 75 per cent is 50 per cent and above Rs 30 lac it is. 75 per cent both for banks and HFCs but Capital adequacy requirement (CAR) for HFCs is 12 per cent against 9 per cent for banks.

... contd.