PC tampering loans will have adverse impact on housing : BJP

New Delhi, Apr 20 (UNI) Finance Minister P Chidambaram's attempt to tampering the credit growth in the country is bound to have adverse impact on the Housing sector which had witnessed a boom during the NDA regime, the BJP has apprehended.

BJP Spokesman Prakash Javadekar said the UPA had already doubled the rate of interest on housing from six to 12 per cent resulting in a slump in the loan offtake making it beyond the reach of the common man.

The FM's call for keeping the interest rates low for the loans upto Rs 10 lakhs was hollow if the rates for provisioning were not reduced. The sector, an engine of employment and wealth generation besides offering roof to the millions was already in a crisis and Mr Chidambaram's new dictat will only worsen things for the common man, he said.

Turning to Foreign Trade Policy, he said the latest document offered nothing new as a dollar was worth Rs 41.70 will hurt Indian as the exports will become costly and unremunerative. The high interest regime would adversely affect the profitablity of manufacturers and exporters. The new policy document does not address the concerns of the sector and the small and medium exporters. BJP demands that the government should provide hedging support to this sector.

UNI