Page 18 - CONSTRUCTION VISION July August 2017 issue

MALAYSIA'S FIRST MAJOR standards by building new platforms, and Services Tax (GST).
providing lifts and and other passenger
FDI BOOST IN INDIAN RAIL “GST plus Real Estate (Regulation &
amenities and also maintaining the premises.
SECTOR Development) Act (RERA) will definitely bring
In lieu of this, the railways will allow them to big relief to house owners.
Indian Railways had held a road show in build hotels, malls, cinema halls and shops
There is no scope for evading anything in the
Malaysia in March this year to showcase within the station complex.
GST. Input credit will also be transferred,” he
Investment opportunities in India's rail sector.
In his letter to the Railway Board, CIDB said at the Aaj Tak-GST conclave.
Malaysia's state-owned Construction
chairman said Malaysian companies that are
Industry Development Board (CIDB) in The RERA regulations, came into force in
interested have already identified PPP
potentially the first major FDI in operation
synergies via their successful transformation May this year are framed such that there is
side of railways will participate in the auction
of world class transit-oriented development no way to escape, he added.
for redevelopment of Udaipur, Howrah,
projects in Malaysia.
Indore, Secunderabad, Pune and Faridabad “As a Urban Development and Housing
railway stations. Karim has also sought an extension in time Minister, I am the happiest man that with the
to submit their initial proposal to the rail GST, prices of houses will definitely come
CIDB Holding Malaysia has written to the
board. ET has reviewed a copy of the letter. down,” Naidu added.
Railway Board, stating that it would
participate in the ongoing Swiss challenge CIDB was formed by the act of Parliament in “If anybody is opposing the GST, it is habitual
bidding process of these shortlisted stations Malaysia to promote infrastructure and tax evaders. Larger builders community is
on behalf of Malaysian companies. construction activities. happy, except fly—by— night operators,” he
said.
The estimated cost of redevelopment of Railways has prepared a Rs 8 lakh-crore
these stations would be Rs 5,000 crore, a capacity expansion plan for the next five The minister emphasised that the Centre and
top rail ministry official said. years. Almost half of it is expected to come states need to implement the new real estate
from the private sector. law in an effective manner.
The Malaysian board had earlier sought
station redevelopment contracts through The plan includes electrification of all major “Land and housing are state subjects. States
nomination route, but the railways asked it to routes, increasing the capacity of almost are implementing agency,” he said, but
participate in the Swiss challenge auction to 10,000 km of congested routes, bringing in quickly added that he was not shying away
win contracts as India does not allow new signalling system, building safer from his responsibilities.
nomination route, said the official cited coaches, modernising goods yards, making
earlier. the dedicated freight corridors operational The minister was responding to a query
and introducing high speed trains, besides about significant delays in housing projects
Malaysian investment in station
modernization of 400 stations. in the national capital region, causing
redevelopment could mark the first major
distress to home buyers and investors.
foreign investment in the operations side of
railways. The railway official said that various Naidu said he will discuss the issue with the
HOUSING PRICES TO
Japanese and South Korean investors have Uttar Pradesh government.
DECLINE AFTER GST
also expressed interest in station
ROLLOUT: NAIDU Yesterday, the government hiked the GST
redevelopment projects.
rate for the construction sector to 18 per cent
Indian Railways has lined up 400 stations for from 12 per cent but removed land value
redevelopment. In the first phase of auction, Housing prices will come down after the GST from computation of tax liability.
23 of them will be awarded under the Swiss rollout, Union Minister M Venkaiah Naidu has
The GST Council had in May decided to levy
challenge method wherein proposals are said, while expressing confidence that the
invited online and rivals can offer 12 per cent GST on construction of a
landmark tax regime along with property law
counterbids. complex, building, civil structure or intended
will bring relief to home buyers.
for sale to a buyer, wholly or partly.
The builders will get commercial exploitation
Naidu, the minister for Urban Development
rights for railway land for 45 years in lieu of The value of land was to be included in the
and Housing & Urban Poverty Alleviation,
redeveloping and modernising the existing amount on which tax was to be calculated.
said only fly—by—night operators and
stations. The successful bidders will be
habitual tax evaders are opposing the Goods
required to raise the stations to world
JULY-AUGUST 2017
16 CONSTRUCTION VISION