No af­ford­able hous­ing pro­posal from pvt builders

Hindustan Times (Chandigarh) - Estates - - HtEstates - Union Min­is­ter of ur­ban de­vel­op­ment, hous­ing and ur­ban poverty al­le­vi­a­tion M Venka­iah Naidu ad­dress­ing a con­fer­ence. HT Es­tates Cor­re­spon­dent ht­es­tates@hin­dus­tan­times.com

Ex­press­ing dis­ap­point­ment over the lack of in­ter­est from pri­vate de­vel­op­ers in the af­ford­able hous­ing scheme, union min­is­ter of ur­ban de­vel­op­ment, hous­ing and ur­ban poverty al­le­vi­a­tion M Venka­iah Naidu re­cently re­vealed that pri­vate de­vel­op­ers had failed to put up a sin­gle pro­posal for the scheme till date. This was hap­pen­ing de­spite the gov­ern­ment grant­ing in­fras­truc­ture sta­tus to the seg­ment in Bud­get 2017.

Builders should not make any “more ex­cuses” as the gover nment has met their long-stand­ing de­mand of giv­ing in­fras­truc­ture sta­tus to af­ford­able hous­ing in Bud­get 2017, Naidu said ad­dress­ing a con­fer­ence on Real Es­tate Sec­tor Post Re­mon­eti­sa­tion and RERA un­der the aegis of PHD Cham­ber of Com­merce and In­dus­try in the Cap­i­tal.

The am­bit of the scheme has now been ex­tended and cov­ers peo­ple with in­comes of up to 18 lakh per year. “So, the op­por­tu­nity is knock­ing at the door. Now, it is for de­vel­op­ers to rise to the oc­ca­sion af­ter the in­fras­truc­ture sta­tus has been given to af­ford­able hous­ing, Real Es­tate Act (RERA) and re­mon­eti­sa­tion. No more ex­cuses,” he said.

“Isn’t this a huge op­por­tu­nity for de­vel­op­ers at the ‘bot­tom and mid­dle of the pyra­mid? In my view, it cer­tainly is. Then what are you wait­ing for?”

Naidu also pointed out that the gov­ern­ment had so far ap­proved con­struc­tion of over 16 lakh af­ford­able houses with an in­vest­ment of about 90,000 crore for which Cen­tral as­sis­tance of about 25,000 crore also has been ap­proved un­der the Prad­han Mantri Awas Yo­jana (PMAY). “I am rather dis­ap­pointed that not a sin­gle pro­posal has come from pri­vate builders so far even though (PMAY) ur­ban has been de­signed en­vis­ag­ing a big role for the pri­vate sec­tor,” he said.

Naidu said that the Real Es­tate Act and re­mon­eti­sa­tion will give a big push to the hous­ing sec­tor pro­vided the de­vel­op­ers “change their out­look and mind­set” and come out with new busi­ness mod­els.It is a fact that this crit­i­cal sec­tor over the years has ac­quired a cer­tain de­gree of taint for sev­eral rea­sons that we are all aware of. There is a se­ri­ous cri­sis of char­ac­ter,” he said, adding that the new realty law aims to bring about trans­parency.

“The Be­nami Trans­ac­tions (Pre­ven­tion) Act would fur­ther com­ple­ment in this re­gard. RERA has boosted the en­tire in­dus­try and is def­i­nitely prov­ing to be a game changer for the real es­tate sec­tor,” he said.

He asked Nan­dita Chat­ter­jee, sec­re­tary, HUPA, to con­vene a roundtable with all de­vel­op­ers, banks and hous­ing fi­nance com­pa­nies to de­lib­er­ate on the rea­sons why no pri­vate sec­tor par­tic­i­pa­tion has been en­listed un­der PMAY and delve on rea­sons for their re­luc­tance to come for­ward.

STATES HAVE BEEN TOLD TO SET UP A REAL ES­TATE REG­U­LA­TOR BY MAY 17 AF­TER WHICH THERE SHALL BE NO EX­TEN­SION

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