FICCI demands bigger package for housing, steel sectors

NEW DELHI: Unhappy over small dosages of packages doled out for housing, cement and steel sectors, industry chamber FICCI on Wednesday asked government for further rate cuts in home loans, reimposition of countervailing duty and higher import levies.

Speaking after a meeting of FICCI delegates with government officials, FICCI Senior Vice-President Harsh Pati Singhania told reporters, "We have asked the government for a larger stimulus package. We want the government to take a bigger measure so that the impact is more instead of small doses to boost sentiments."

Top brass of the industry such as SAIL Chairman S K Roongta, DLF's K P Singh, J K Paper's Singhania made representation to the government and put forth their demands.

For the housing sector the body sought to raise the upper limit of loans to Rs 50 lakh in the existing Rs 5-20 lakh slab lower rates of interest of 9.25 per cent, besides cutting the rates to 6-7 per cent from 8.5 per cent for home loans below Rs 5 lakh.
"The limit for loans at lower rates of interest should be raised to Rs 50 lakh from Rs 20 lakh. Also rate of interest should be brought down to 6 and 7 per cent," Singhania said.

He added that increased demand in housing sector will push offtakes in other related sectors like steel and cement.

The demand, coupled with other steps like easing External Commercial Borrowing and income tax norms, would provide consumers with cheaper credit to buy houses, he said.

To give a filip to the domestic steel industry, the FICCI representatives demanded restoration of countervailing duty on imported steel items along with raising import duty to 15 per cent from the existing five per cent to "prevent dumping" of cheaper products in India.