Relax Norms by UP Govt
Realty Companies May Gain From UP Govt's Relax Norms On Payment Period For Land Acquisitions The country's fund-starved real estate developers are likely to benefit from a recent move by the Uttar Pradesh government to relax norms on payment period for land acquisitions, experts say. The Mayawati-led Uttar Pradesh government had said it is planning to come out with a relief package for acquisition of land to develop integrated townships, and metro cities in the state. The government plans to extend the payment period for acquisition of the land to 10 years as against the prescribed norm of five-seven years. The relaxation, if approved by the cabinet, will give a breather to cash-strapped developers who are in negotiations with banks and mutual funds to defer repayments and restructure loans. Several of them have also deferred projects following a slump in demand. Land accounts for more than 50 per of the cost of a project. "By extending the installment duration, the govern