As we look at the imperative of the India growth story, the importance of sustainable urbanisation cannot be over-emphasised. In order to have planned development that is responsive and responsible, policies and programmes which enable such development are required.

The expanding industrial sector has created a surge in demand for quality parks and campuses with high-quality infrastructure and thoughtful planning. Similarly our exports require ready access to planned clusters such as SEZs, with appropriate policy support to ensure maintaining and gaining competitiveness in the global marketplace. Alongside, as India urbanises rapidly there is unbearable pressure on our cities, with the migrating population having no access to affordable housing and other basic amenities.

We believe that industrial parks, SEZs and low-cost housing are initiatives in line with our national priorities and towards the interest of general public. Development of industrial parks and SEZs bring in substantial investments, both from within and outside the country. It also helps create thousands of jobs, both direct and indirect. The economic activity in the region benefits the overall society. Development of affordable housing creates balanced, inclusive, planned and sustained urban development.

Some of our key recommendations on regulatory and tax matters are:

Reintroduction of Section 80 IA (4) of Income Tax Act for development of Industrial Park – This has been deleted in the Finance Bill 2011 and needs to be restated. The section provided for 100 per cent exemption of the profits and gains derived from business of industrial park, etc which satisfied the conditions laid down in the Industrial Park Scheme.

Reintroduction of Section 80 IA (4) of Income Tax Act for development of affordable housing — govt policies and incentives to be in line with JNNURM affordable housing parameters for EWS and LIG (i.e for unit sizes of up to 48 sqmt carpet area)

Access to preferentially-priced funds to develop affordable housing and industrial parks. Creating dedicated funds for development of the same.

Income-tax and policy benefits for SEZ unit-holders and developers should be continued; uncertainty on tax exemption and frequent changes in taxes such as MAT, DDT etc., should be addressed in DTC.

Complete clarity on DTC issues and its timelines in relation to real estate and infrastructure sector.

The above-mentioned suggestions, if incorporated in the upcoming Finance Bill, will encourage developers to make more dedicated efforts towards investing in areas that are in sync with our national priorities.

(The author is CEO, Mahindra World City, Chennai.)

Related Topics