Govt to consider increasing loans value limit upto Rs 30 lakh

COIMBATORE: The finance ministry would consider the construction industry's request to increase value limit in housing loans from rs 20 lakh announced recently to Rs 30 lakh to reduce interest rates, union minister of state for finance, S S Palanimanickam said here on Friday.

However, reduction of interest rates has to be looked into by the bankers, he said responding to the request by the AEB Forum of three major professional bodies of construction industry while inaugurating 'Buildmat 2009,' an exhibition of construction materials, here.

The Centre would also look at increasing the limit of service tax exemption for dwelling beyond 12 units, he said.

On multi-point taxation, particularly on construction materials, he said his ministry would study the issue in detail.

However all these issues would be looked into after the vote-on account, in view of the Lok Sabha elections scheduled in April or May, he said.

Referring to the economic meltwown, he said the indian economy has a strong base, with adequate reserves, which would successfully take care of any crisis. "India will successfully face the challenges of the so called economic meltdown," he said.

On requests to bail out the textile industry, he said the Government had abolished CENVAT and already extended the Textile Upgradation Fund scheme, benefitting old textile mills through modernisation. Some new textile mills were yet to take the benefit and efforts would be taken to bail them out, Palanimanickam said.