CREDAI Conclave 2013 Curtain Raiser

Confederation of Real Estate Developers' Associations of India (CREDAI) Announces CONCLAVE 2013 at New Delhi —13 — 14 December 2013

Hyderabad, December 2nd 2013: CREDAI is organizing a National Conference, titled as "CREDAI CONCLAVE", with a theme, "Housing the Game Changer — Leading to Double-Digit GDP Growth", at New Delhi on December 13- 14, 2013, against the backdrop of its continuous efforts over a period of time to persuade and influence the government to take up several reform measures and policy changes.

CREDAI, under the leadership of its National President, Sri C. Shekar Reddy, has been at the forefront in representing to and advising the government that if right policies are put in place the Housing and Real Sectors could truly be the Game-Changers in providing the necessary thrust and momentum to the economy, which has unwittingly been experiencing several vicissitudes and passing through a weak and slowing economic growth. Propelled by the rapid urbanization, the urban population is poised to grow to 590 million by 2030. McKinsey Global Institute reports that the urban India, over the next 15 years, is expected to create 70 percent of all new jobs and these new jobs are going to be twice as productive as equivalent jobs in rural sector. In other words, we will witness over the next 15 years an urban transformation the scale and speed of which has not happened anywhere in the world except in China. This expected transformation will, if handed well, provide the means to turn around the economy from slowdown to rapid growth. Given the existing housing shortage estimated at 18.78 million dwelling units (Repprt of MoHUPA) and the high multiplier-effect the Housing and Real Estate Sectors have on 300 different manufacturing industries, such as steel, cement, electrical, lifts etc. Given the high employment potential these Sectors collectively
have next only to the agriculture, the housing and real estate sectors could create a positive and widespread impact on the Indian economy. Realizing the importance of Housing and Real Estate Sectors and the imposing theme the CONCLAVE set for the policy makers to address, the eminent dignitaries, like Dr. Girija Vyas, Minister for Housing and Urban Poverty Alleviation; Mr. Akhilesh Yadav, Chief Minister, Uttar Pradesh; Mr. Bhupindir Hoods, Chief Minister, Haryana; Mr. Sukhbir Singh Badal, Deputy Chief Minister, Punjab; Sri Rajnath Singh, President, BJP; Dr Montek Singh Ahluvaila, Deputy Chairman, Planning Commission; the top guns of Banking Sector, such as Ms Arundhati Bhattachraya, Chairperson, SBI; Ms Naina Lal Kidwai, Head, Indian operations of HSBC; and Mr. Uday Kotak, Executive Vice Chairman & MD, Kotak Mahindra, and some prominent economists and many others, are going to speak on different Sessions in the CONCLAVE on subjects, such as "Road to Recovery", "Urbanization: Dream of Young India", "BUILDING A NATION - Contribution of Real Estate in National Economic Growth", "The Game Changer", and provide necessary thrust for policy change and reforms. Besides the rigidities of regulatory and administrative systems, the Housing and Real Estates Sector suffers from enervating and undeserving handicaps in accessing the necessary funds from the banking and financial institutions. The funding norms and stipulations are restrictive in their scope and are highly adversarial to the needs of this Sector. There is another factor that inhibits faster spread and reach of this sector to the needy people at affordable and lower costs. It is expected that sessions with the chair persons of banks and planning commission's deputy chairman should help effect some changes in the funding norms. There is also an issue of inordinate delays in plan approvals and permissions from various authorities. CREDAI has been impressing upon the government authorities to cut down the delays and institute "Single-window and Online Approval System". The elimination of delays in sanctioning will drastically reduce the costs of house-construction and speed up the construction activity with substantial economic benefits. This is another the CONCLAVE will address.

The CONCLAVE will thus pave the way to understand the great potential the Real Estate Sector holds for the country in catalyzing and rejuvenating the growth trajectory of the country, which has been experiencing economic slowdown, going down from a high of 10.5 percent in Q4 of FY 2006 to a low of 4.8 percent GDP growth in FY 2013. The CREDAI holds the view that this Sector, being the primary driver of the economy can fast forward the economic revival, provided the government wakes up to the unfolding potential of the Sector and takes necessary policy initiatives. The government has however initiated several policy moves in the form of Real Estate Regulatory Authority, Land Acquisition Bill, Real Estate Investment Trust, Affordable Housing policy. But these policies are not without any inadequacies in their nature and character. The CREDAI has been proposing to incorporate several changes in some of the policy initiatives of the government and plans to address them in this Conference.