Punjab announces stimulus package for real estate sector

Chandigarh (Punjab) [India], May 22 (ANI): Punjab Chief Minister Captain Amarinder Singh on Friday announced relief measures for the real estate sector amid COVID-19 pandemic including a six-month extension in the permissible period of construction of plots/projects for all allottees, whether private or allotted by the state urban authorities, either through auction or draw of lots.
The stimulus package announced by the Chief Minister, applicable to both allottees and developers, is aimed at providing them with immediate relief while arresting the slowdown in the housing sector.
The relief measures are applicable to all the Urban Development Authorities of the State and shall be restricted to the amount due from April 1 to September 30.
The package also included a 6-month extension in the construction permissible period for all allottees with a waiver of non-construction charges.
The Chief Minister pointed out that since development authorities annually receive a non-construction fee of nearly Rs 35 crore, this particular relaxation would lead to a reduction in receipt to the tune of Rs 17-18 crore for all the authorities put together.
Chief Minister Singh also announced that all the urban development authorities have also been directed not to charge non-construction charges/extension fee/license renewal fees for the period from April 1 to September 30, 2020.
An official spokesperson said, "Given the criticality and urgency of the situation, the Chief Minister, as Chairman of the Development Authorities, had decided to announce immediate relief measures for six months, thus giving time to the authorities to come out with the comprehensive long-term package."
Post-facto approval of all the decisions announced by the Chief Minister would be taken by the concerned authorities at the earliest.
"These urgent relief measures are in addition to certain incentives decided by the Housing and Urban Development Ministry, including extension by six months in the Moratorium in payment of instalments in case of auctioned properties," the spokesperson added. (ANI)