Builders lack income!

Unable earn even interests on investments
The same plight since last three years
Demand for regulation of FSI

The NAREDCO West Zone Builders Association in Hyderabad is mostly comprises of small and medium-sized developers. Majority of the affordable housing projects in the city, are constructed by these builders. But they are unable to earn even minimum profits for their investment over the last two or three years and struggling to pay even interests for the investments/borrowings. Yet, they continue to construct houses which in turn is catering to the needs of the middle-class as well as paying a variety of taxes, cess and other fee to the government’s treasury.

Due to Corona, sales of flats have plummeted in the last two years. Therefore, the NAREDCO West Zone Builders’ Association submitted a petition to the government seeking solutions to the problems they were facing. The Association president Subbaiah, general secretary M Prem Kumar and other office bearers, handed over a letter to the GHMC Chief City Planner to this effect. The gist of the letter is as follows.

TDR (Trasferable Development Rights) should be allowed for buildings up to a height of 21 meters, eliminating the requirement to comply with high-rise setbacks and exempting the No Objection Certificate (NOC) by the Fire department. TDRs should be allowed for buildings with stilt and more than five floors. FSI (Floor Space Index) per acre should be limited to 1.75 lakh sq.ft. Permission should be granted up to 18 storeys depending on the width of the road and TDR should be allowed for subsequent floors. Property tax should be levied six months after the issuance of the Occupancy Certificate.