Reality Firms Need an Interest Rate Cut

Author: Neha Dhamija

After lowering of CRR, SLR and repo rate, it is the turn of interest rates on home loans to get trimmed. Pradeep Chopra, the Chairman of P S Group said that realty firms could escape the further crushing effect of credit crisis, if interest rates are decreased to levels that are more comfortable for the end-users. To make this possible, a presentation to the Finance Ministry, through the forum, CREDAI, is being planned.

Downturn has led to both delaying and halting of projects involving land acquisition by such companies. The reason is that each day brings with it greater uncertainty regarding the financial status of the country. So, a defined approach cannot be adopted for the plans previously prepared.
	Among the ones to echo with Chopra are the Chairmans of Ambuja and Emami group. They feel that though funds do not restrict the firms from expanding, the ‘questionable saleability’ is what hampers the spreading. This is because the credit squeeze has left the buyers empty-handed. So, a thorough study before venturing any further is seen as a solution to the current disturbance. Mani Group’s Chairman Sunjay Jhunjhunwala, however finds the return of confidence in markets more important than getting the interest rates a cut.