Budget 2025: Boost for real estate and energy transition, says Tata Realty CEO

Sanjay Dutt, MD & CEO of Tata Realty & Infrastructure Ltd, commenting on Union Budget 2025, has termed the Budget 2025 a 'forward-looking' blueprint. "The Union Budget 2025 underscores India’s forward-looking vision for sustainable growth, urban transformation, and infrastructural excellence. We wholeheartedly commend the government’s comprehensive approach, emphasising increasing purchasing power by increasing the tax limit to Rs 12 lakh, strengthening urban infrastructure, governance, and land-use planning, with housing continuing to be a pillar of national growth."

Dutt says the extension of tax benefits for self-occupied properties and interest subsidies further empowers homeowners, making housing more accessible and financially feasible. "The introduction of SWAMIH Investment Fund 2.0, a Rs 15,000 crore blended finance facility, will expedite the completion of over one lakh housing units, providing much-needed relief to homebuyers and stimulating the real estate sector. Notably, the annual TDS limit on rent has been raised from ₹2.40 lakh to ₹6 lakh."

The real estate sector stands to gain from measures aimed at boosting consumption. A key announcement for the sector was the ₹15,000 crore SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund 2, a blended finance initiative involving contributions from the government, banks, and private investors. Other measures, such as TDS/TCS rationalisation, the ₹1 lakh crore Urban Challenge Fund, and the new income tax exemption of up to ₹12 lakh, are also expected to provide further support to the sector’s growth.

Dutt says the rationalisation of the TDS provision for senior citizens by increasing the interest exemption limit, which has doubled from ₹50,000 to ₹1 lakh, will offer significant financial relief. "The setting up of the Urban Challenge Fund of Rs 1 lakh crore ensuring well-connected and sustainable cities is also noteworthy."

The focus on simplifying business processes is especially valuable for MSMEs and corporates across sectors, he says. "For real estate developers, these measures will significantly reduce bureaucratic delays, eliminate redundant approvals, and mitigate the pervasive “red tape” that often hinders new projects."

According to Dutt, the Union Budget 2025-26 reflects India’s commitment to a sustainable and robust energy future. "By incentivising electricity distribution reforms and allowing states additional borrowing, the government has taken a bold step towards improving the financial health of energy companies. The ambitious target of 100 GW of nuclear energy by 2047, coupled with amendments to the Atomic Energy Act to encourage private sector involvement, is a commendable move towards securing India’s energy transition."