BAI builds case for Cement Regulatory Authority -min
Builders’ Association of India (BAI) has appealed to the Government to set up a “Cement Regulatory Authority” to control the pricing and prevent cartelization by cement manufacturers and unfair practices. BAI feels if a regulatory mechanism is in place, the cost of house construction can be reduced to a competitive Rs 50 per sq.ft. making housing affordable for all.
The Association is of the opinion that there is an urgent need for immediate reforms and regulatory mechanism for the construction sector to ensure a streamlined growth which will result in enhanced contribution to the Indian economy in the long-term. BAI is organizing the 28th All India Builders’ Convention in Bengaluru from January 19 to 21. The Convention will be inaugurated by the Vice President M Venkaiah Naidu in the presence of the Karnataka Governor Vajubhai Rudabhai Vala and Karnataka’s Chief Minister Siddaramaiah.
The Union Government has declared Rs 65 lakh crore investment plan for development of 100 Smart Cities, new township formats like CIDCO, DDA, MHADA, Industrial Corridor, Power Projects, Dams, Bridges, Airports and Sea ports. But several issues still need to be resolved. At present, the land acquisition process has highly complex implications. BAI wants the Government to take full responsibility of land acquisition and handover the same to contractors before awarding the contracts.
According to BAI the subcontractors in the construction sector were still levied GST of 18 per cent which has to be reduced further. Also, out of 18 per cent GST charged on the real estate, 6 per cent is regarded as land value. Land valuation deduction under construction of complexes, should be based on actual cost of the land or should be based on value mentioned in the Ready Reckoner. The Association feels that the blanket deduction will result in exaggeration of the land value.