Gu­vFavoursSin­gle-win­dow Okay for Af­ford­able Houses

Boom­ing Sec­tor

The Economic Times - - Finance & Commodities - I think, we need a time-bound, sin­gle-win­dow clear­ance of this very im­por­tant ini­tia­tive, which has the po­ten­tial for growth

Shilpy Sinha & Kailash Babar

Mumbai: Re­serve Bank of In­dia Gov­er­nor Ur­jit Pa­tel called for a separate sin­gle win­dow mech­a­nism for clear­ance of af­ford­able hous­ing projects as many of them are stuck at state gov­ern­ment bod­ies. Pa­tel said af­ford­able hous­ing needs greater fo­cus and has a strong mul­ti­plier im­pact on eco­nomic growth. Un­der the Prad­han Mantri Awas tioned that we could have stronger growth per­for­mance if some of th­ese things are taken for­ward, in par­tic­u­lar re­mov­ing in­fra bot­tle­necks, find­ing mea­sures to rein­vig­o­rate pri­vate in­vest­ment and pro­vide thrust to af­ford­able hous­ing ini­tia­tive of the gov­ern­ment, which has a po­ten­tial for strong mul­ti­plier ef­fects,” said Pa­tel at a press brief­ing af­ter the an­nounce­ment of the bi-monthly mon­e­tary pol­icy. “A fair num­ber of pieces of the jig­saw are al­ready in place.”

Af­ford­able hous­ing seg­ment is boom­ing af­ter the gov­ern­ment push. Ac­cord­ing to in­dus­try es­ti­mates, dis­bur­sals of loans be­low ₹ 10 lakh for af­ford­able hous­ing have grown 43% in the last fi­nan­cial year. Over­all hous­ing loans grew 23% while home loans above ₹ 25 lakh saw a marginalde­cli­neof 1%dur­ing the last fi­nan­cial year. “I think, we need a time -bound, sin­gle win­dow clear­ance of this very im­por­tant ini­tia­tive, which has the po­ten­tial for growth,” said Pa­tel.

Ap­proval time usu­ally rang- es from six to 12 months. The process and time re­quired for per­mis­sions is the same for all projects in­clud­ing af­ford­able, mid­dle-in­come or lux­ury.

In­dia Rat­ings said it ex­pects de­mand for 25 mil­lion homes, that is, 4x of the en­tire cur­rent hous­ing fi­nance stock, over fi­nan­cial year 2016-17 to 2021-22 in the medium in­come group and lower in­come group cat­e­gories. Af­ford­able hous­ing fi­nance largely for loan size up to ₹ 15 lakh will be­come a large seg­ment for hous­ing fi­nance com­pa­nies in the next five years, with the es­ti­mated share to in­crease to around 37%in­FY22­saidIn­di­aRat­ings andRe­search.“Town­plan­ning is in­vari­ably not very sup­port­ive of af­ford­able hous­ing.”

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