Top DLF officials, including chairman Kushal Pal Singh and vice-chairman Rajiv Singh, on Thursday met finance ministry officials
NEW DELHI: Top DLF officials, including chairman Kushal Pal Singh and vice-chairman Rajiv Singh, on Thursday met finance ministry officials to press for a lowering of interest rates on housing loans to ease the liquidity squeeze in real estate.
A source told DNA Money, “The DLF executives were also pushing for declaring real estate an industry rather than just a sector.”
Indian real estate is the second-largest employer in the country and the downward spiral of the realty market would severely impact the Indian growth story.”
The Delhi-based developer wants the ministry to ask the Reserve Bank of India to ease norms for bank lending to real estate firms.
Most banks have stopped giving loans to developers as they consider the real estate market risky at moment. This has forced realtors to raise funds from private investors and other sources with interest rates as high as 30%, way above the 13-15% they are paying on their outstanding debt to banks.
Earlier this month, sources had said DLF is looking at offloading stake in its power venture DLF Utilities and in special purpose vehicles to private equity investors. The realtor plans to raise around $1-1.25 billion from the divestments.
The developer is also the sole bidder for the Rail Land Development Authority’s 45,371 sq m land in Bandra (east) — near the railway station and adjacent to the Western Express Highway — for development of commercial space. The reserve bid for the land price has been kept at Rs 3,960 crore. Akruti City, HDIL and Reliance Infrastructure were also eyeing the piece of land but backed out due to higher valuations.
DLF will announce its quarterly results on October 31.
vivek_s@dnaindia.net
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