MUMBAI: Describing the RBI’s announcement of repo rate cut by 25 basis points as “an excellent move”, realtors apex body CREDAI Chairman Mr. Lalit Kumar Jain said, this should help the industry and business in general to tackle liquidity crisis.
In fact, there is further scope to ease the credit policy, said Mr. Jain, who is also the CMD of Kumar Urban development Limited (KUL).
He appealed to the RBI to note the fact that the real estate and infrastructure sectors together form the backbone of the nation’s economy and therefore they need to be allowed to adequate liquidity.
He pointed out that several projects have been delayed due to financial crunch; hence rollover / restructuring should be permitted in current scenario. It is about time that the banks opened their doors to help the key sectors tide over the crisis.
The two sectors contribute up to 11% to GDP and support over 200 hundred other industries, he said.
CREDAI has been campaigning for realty reforms, which included financial reforms to treat the sector as a priority sector and accord it the status of industry.