HC order to hit Haryana's realty sector, investments: Assocham
Of its total investment of Rs 4.98 lakh crore as on December 2011, the real estate sector accounted for Rs 2.48 lakh crore in Haryana.
New Delhi: Industry body Assocham on Tuesday said the realty sector and investments in Haryana will be hit following the High Court order directing the state government not to issue permits for construction unless builders give in writing that ground water will not be drawn by them.
The Chamber also asked the state government to ensure availability of basic infrastructure like water in Gurgaon, which houses many multi-national companies (MNCs) and is major property market of the NCR region, as well as the country.
"It will not only give a severe jolt to the realty sector but will also hurt investment scenario in the state," the chamber said, while commenting on the order of the Punjab and Haryana High Court pronounced yesterday.
Citing findings of their study that showed as much as 50 per cent of investments in Haryana as of December 2011 were in the realty sector, Assocham Secretary General D S Rawat said: "This investment was largely driven by a construction boom in Gurgaon, which is a hub of the corporate India- both domestic and global".
With a halt to the construction sector, the investment in the state will be drastically reduced," he added.
Stating that the Indian industry is all for conservation of ground water and striking a balance between development and environment, Rawat said the responsibility for basic infrastructure like water lies with the state.
Of its total investment of Rs 4.98 lakh crore as on December 2011, the real estate sector accounted for Rs 2.48 lakh crore in Haryana, which has other towns like Faridabad, Sonepat, Ambala, Panipat and Karnal where the realty sector is growing fast, even though they are no match for Gurgaon, the statement said.
The state government, with the help of the Centre, must ensure that the basic infrastructure is provided in the state so that investment in Haryana, one of the progressive states, does not come to a halt, the chamber said.
As Gurgaon has become a hub of domestic and MNC firms, mostly in the services sector like IT business outsourcing, the study found out that "the real estate development was the focal point in Haryana as the sector attracted 49.7 per cent of the total investment in the state".