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Punjab CM Announces Stimulus Package For Real Estate Sector To Cope With COVID Impact

Chandigarh, May 22: Punjab Chief Minister Captain Amarinder Singh on Friday announced a slew of relief measures for the beleaguered real estate sector amid the unprecedented Covid-19 situation.The measures include six-month extension in the permissible period of construction of plots/projects for all allottees, whether private or allotted by state urban authorities, either through auction or draw of lots.

Applicable to both allottees and developers, the stimulus package announced by the Chief Minister is aimed at providing them with immediate relief while arresting the slowdown in housing sector.

The relief measures are applicable to all the Urban Development Authorities of the state. Also the measures shall be restricted to amount due from April 1, 2020 to September 30, 2020.

Referring to the financial implications of the 6-month extension in construction period, the Chief Minister pointed out that since development authorities annually receive non-construction fee of nearly Rs 35 crore.

This particular relaxation would lead to reduction in receipt to the tune of Rs.17-18 crore for all the authorities put together.

In another key relief measure, the Chief Minister announced that all the urban development authorities have also been directed not to charge non construction charges/extension fee/license renewal fee for the period from 1st April to September 30, 2020. This would involve a financial implication of more than Rs.1 crore on the basis of the past averages. As a result of this relief, all licenses under PAPRA and permissions under policy of Mega Projects would be extended by six months without any charge.

In another incentive, the Chief Minister has allowed payment of instalments (including interest) of all auctioned properties due between 1st April, 2020 to 30th September, 2020, along with balance instalments, as equated instalments at scheme rate of interest.

No interest shall be charged on the Instalment due between 1st April 2020 and 30th September,2020, and thereafter, scheme interest will be charged on the amount due.

This particular relief can also be availed for post-dated cheques of amounts deposited against external development charges/license fee/social infrastructure fund etc, under amnesty policy of November 28, 2019 payable up to September 15, 2020 (including those which were due on March 31, 2020).

The Chief Minister also approved increase in incentive in terms of additional FAR of 5% for bronze and silver, 7.5% for gold and 10% for platinum certification by Griha and Leeds, free of charge to promote the concept of green buildings.

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, an official spokesperson said.

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