Union Budget 2024-2025: Hyderabad's infra projects and real estate big gainers
Hyderabad: The Union Budget 2024-2025 that was presented on Tuesday is likely to scale up the city’s infrastructure, improve connectivity to Hyderabad, increase the number of beneficiaries of houses given to the economically weaker sections for free and boost water supply. The budget allocations are also likely to have a positive impact on the real estate sector.
In a significant investment towards infrastructure, the Union government has provided Rs 11,11,111 crore for capital expenditure, which is 3.4 per cent of the country’s GDP.
The capital expenditure also takes care of infrastructure projects, including flyovers, bridges, underpasses, RoBs and RuBs.
A provision of Rs 1.5 lakh crore for long-term interest-free loans has been made this year also to help states in their respective resource allocations.
In the city, funds for most of the infrastructure projects that were executed under the Strategic Road Development Programme (SRDP), including flyovers, were raised by way of rupee term loans (RTL). However, the Congress government has decided to execute infrastructure projects, under the Hyderabad City Innovative and Transformative Infrastructure’ (HCITI).
Meanwhile, Pradhan Mantri Gram Sadak Yojana (PMGSY) connectivity will be improved to rural habitations. Similarly, funds will be provided for essential infrastructure such as water, power, railways and roads on Hyderabad-Bengaluru Industrial Corridor.
Meanwhile, in an attempt to provide houses to poor, under the PM Awas Yojana Urban 2.0, housing needs of one crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore. This will include the central assistance of Rs 2.2 lakh crore in the next five years. A provision of interest subsidy to facilitate loans at affordable rates is also envisaged.
In partnership with state governments and multilateral development banks, the union government will also promote water supply, sewage treatment and solid waste management projects and services in 100 big cities through bankable projects. The Centre has also decided to work with states, and facilitate development of cities as growth hubs, which includes orderly development of peri-urban areas utilising town planning schemes.
Similarly, rental housing with dormitory type accommodation for industrial workers and development of investment-ready “plug and play” industrial parks will also boost the real estate sector.
As regards real estate, the union government has decided to encourage states, which continue to charge high stamp duty, to moderate rates for all and also consider further lowering of duties on properties purchased by women.
“The budget is like a wholesome food for a healthy economy but it is not making everyone salivate because addressing macroeconomic goals, keeping fiscal deficit under control and making youth productive, is not an easy task,” said Karuna Gopal Vartakavi, BJP national in-charge on ‘women policies’.
She said that Nirmala Sitharaman’s focus on skilling, leading to employability, is laudable as India’s assets are people and this ‘asset class’ has been given adequate focus in the budget.
"Investments in infrastructure, urban planning and digitization of land records are crucial steps towards enhancing the real estate sector in Hyderabad. We believe that these measures will not only boost the sector's contribution to the economy but also address the housing needs of millions, driving inclusive growth and development," said V. Rajashekhar Reddy, president of Credai-Hyderabad.
