Eco booster continues: Package for realty soon

September 24, 2012

P-Chidambaram

New Delhi, September 24: The government is readying a package to boost real estate activity by easing lending and provisioning norms for banks as part of a strategy to prop up the sector that provides significant employment in the country after developers expressed their inability to cut prices to increase demand.

The steps follow an interaction that finance minister P Chidambaram had with public sector bank chiefs last month, where he also asked the Indian Banks' Association (IBA) to prepare a simplified education loan scheme, backed by a credit guarantee fund.

While a new education loan code is a work in progress, bankers said a funding boost for real estate was discussed by financial services secretary D K Mittal with bankers and industry representatives in Mumbai last week and the government will seek simplification in norms by the Reserve Bank of India (RBI).

On education loans, while IBA is still working out the norms, a bank chief said the FM's suggestion to provide loans to students getting admission under the management quota was virtually accepted. Similarly, banks will change the service area approach for these loans and students will be able to avail of the facility from any branch.

At the meeting, Chidambaram sought feedback from banks on various sectors and has already taken up the issue of clearing infrastructure projects that are held up in the absence of land, fuel or environment clearances. Besides, he has asked state-run banks to devise schemes to push consumer durables sales, which was seen as a message to cut rates on auto loans.

Chidambaram said there were nearly five lakh apartments lying vacant in Mumbai alone and asked IBA to look at ways to prop up demand, get builders to complete projects and sell unoccupied dwellings.

A banker said developers had argued that it was tough to cut prices given the high labour and land cost as well as inputs such as cement and steel. Besides, they said the profit margin was not very significant to justify a reduction in prices. As a result, the government is now looking at ways to help the sector that can have a rub-off effect on sectors such as cement and steel besides creating jobs.

At the meeting, lenders demanded a change in approach by real estate developers, asking them to move to a project-specific borrowing model, which will make it easier for lenders to track funding. "We do not lend to a corporate house which is in the cement or power sector. We lend to a project that is being developed, which also provides us comfort," said a public sector bank chief.

Another bank chief said that for these projects, an escrow amount will be opened, where buyers would deposit their money and lenders would be able to take charge of those funds. "But when it comes to builders, it is easier said than done," the chairman added.

A key area where lenders are seeking a change in norms is to get the regulator to simplify norms so that the loans extended for residential projects to the builders are not treated at par with those for commercial real estate. Currently, all exposure to developers requires higher charge on capital, which means banks have to set aside more funds if they lend to companies.

RBI has traditionally been wary of bank lending to real estate and even has a cap of 5% on loans to the sector. Although home loans are treated separately, the regulator has often discouraged banks from lending to individuals as well.

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News Network
July 22,2020

New Delhi, Jul 22: Rajya Sabha Chairman M Venkaiah Naidu on Wednesday urged the newly elected members of the House to uphold rules and procedures of the House while discharging their duties as the lawmakers for the country.

"In his remarks at the end of the administration of oath/affirmation to the new members of Rajya Sabha in the Chamber of the House today, Shri Naidu urged them to hold themselves to account with regard to their conduct both within and outside the House, so as to enhance the standing of the institution in the eyes of the people," read a press note.

The note further read that Naidu suggested the members to "question themselves if they had acted to enhance the dignity of the institution or to the contrary at the end of each day during the session and if their conduct was ethical during the inter-session period".

He said, "Answers to these simple questions would guide you on the right path."

He further stressed, "Ensuring rule of law is the spirit of our law of the land (Constitution). It shall begin with your compliance with the rules and procedures of this House."

Of the 61 members elected to Rajya Sabha from 20 States in the recent biennial and bye-polls, 45 made oath/affirmation today including 36 who have been elected for the first time. 12 sitting members have been re-elected which include Sharad Pawar, Digvijaya Singh, Bhubaneswar Kalita, Prem Chand Gupta, Harivansh and Ramdas Athawale, who took oath today.

Those elected for the first time to Rajya Sabha include Mallikarjun Kharge, Jyotiraditya M Scindia and KC Venugopal who have vast legislative experience and taken oath today. Those members who could not make oath/affirmation will do so during the ensuing Monsoon Session.

"Members including three women made oath/affirmation in 10 languages viz., Telugu, Bodo, Kannada, Manipuri, Marathi, Oriya, Tamil, Bengali, Hindi and English," the note read further.

"Today's oath-taking has been organized to enable the newly elected members to participate in the committee meetings which are underway at once and in the monsoon session which is to follow. I hope to nominate all of you on different committees in a day or two. #RajyaSabha," the Vice President's official handle tweeted earlier on Wednesday.

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Agencies
June 30,2020

Seventy-seven per cent children below five years of age in Jammu and Kashmir were not able to access basic healthcare services like immunisation during the lockdown imposed to curb the spread of COVID-19, CRY said on Monday citing a study.

The 'Rapid Online Perception Study about the Effects of COVID-19 on Children' was conducted during the first and second phases of the lockdown based on responses of parents and primary caregivers from all across the country, including Jammu and Kashmir, the NGO said in a statement.

It said a total of 387 respondents from Jammu and Kashmir participated in the study.

"Seventy-seven per cent children of age 0-5 years were not able to access basic healthcare services such as immunisation during lockdown - necessarily imposed to curb the spread of COVID-19 pandemic in Jammu and Kashmir," Child Rights and You (CRY) said.

It said as immunisation programmes witnessed a major setback during the lockdown across the country, the results of the survey across 23 states and Union Territories found nearly 50 per cent of parents with children below five years of age unable to access immunisation services.

"Worryingly, the figure was considerably high in Jammu and Kashmir with 77.14 per cent children below five years unable to get immunisation services," it added.

According to the study, in Jammu and Kashmir, nearly 35 per cent of the respondents said their children did not receive medical help during the lockdown, resulting in difficulties to cope with their children's illnesses and health hazards.

The study also talks about more systemic arrangements and logistical preparedness to ensure that children with no or compromised digital reach are not deprived from their Right to Education.

With online classes introduced as a substitute of schools during the lockdown, access to education for children remained a major issue of concern, as many of them, especially the ones from marginalised and financially poorer backgrounds found it difficult without smartphones and internet access.

The survey's findings revealed that nationally only 41 per cent households with children of school-going age could access online classes on a regular basis.

"Almost 90 per cent parents and primary caregivers reported that the lockdown has increased the screen time of their child to great or some extent. About half of the households recorded an increase of children's exposure to online activities during lockdown," it said.

The NGO said around 76 per cent parents agreed that they could keep a watch of their children's online activity to some extent.

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News Network
June 6,2020

United Nations, Jun 6: The COVID-19 pandemic, which has presented challenges for several nations, could be an “opportunity” for India to speed up the health insurance scheme Ayushman Bharat, especially with a focus on primary healthcare, WHO chief Tedros Adhanom Ghebreyesus has said.

WHO Director-General Ghebreyesus was responding to a question on the COVID-19 situation in India, where the number of coronavirus cases are increasing rapidly. India went past Italy on Friday to become the sixth worst-hit nation by the COVID-19 pandemic.

India saw a record single-day jump of 9,887 coronavirus cases and 294 deaths on Saturday, pushing the nationwide infection tally to 2,36,657 and the death toll to 6,642, according to the health ministry.

"Of course COVID is very unfortunate and it's challenging for many nations but we need to look for opportunities too. For instance for India, this could be an opportunity to speed up Ayushman Bharat, especially with a focus on primary health care. I know there is a very strong commitment from the government to speed up the implementation of Ayushman Bharat and with primary healthcare and community engagement, I think we can really turn the tide,” Ghebreyesus said during a press briefing in Geneva on Friday.

Ayushman Bharat is the world’s largest health insurance scheme and was launched by the Narendra Modi government in 2018. Last month, Modi had said that the number of people who have benefited from the scheme crossed the one crore-mark.

The scheme aims to cover more than 500 million beneficiaries and provide coverage of Rs 500,000 per family per year.

Referring to the Ayushman Bharat scheme, Ghebreyesus added that “using and speeding up what has started could actually help in India and that's what WHO was very appreciative by the way when Ayushman Bharat started. And this could be a very good opportunity actually to test that and speed up and use it to really fight this pandemic.”

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