Real estate  prices in India are plunging, projects are failing to take off and the industry is reeling under a severe liquidity crunch.”Transactions are down 80 percent, prices are on downward trend everywhere, new projects are not starting, current projects may stall all over the country,” the National Real Estate Development Council (NAREDCO) said in a presentation to Planning Commission Deputy Chairman Montek Singh Ahluwalia.

“Banks are not lending, (there is a) severe liquidity crunch … slowdowm is real,” the council told Ahluwalia in a meeting attended by top officials of DLF, Parsvnath Developers and Omaxe.

“Different departments of government will see what can be done,” Ahluwalia said after the meeting, without elaborating.

The government has cut interest rates, launched a $4 billion spending package and cut a tax on manufactured goods to boost flagging demand in Asia’s third-largest economy.

Last week, Trade Minister Kamal Nath said the government would consider a second stimulus package for industry.

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