No affordable housing proposal from private builders
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 government 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
STATES HAVE BEEN TOLD TO SET UP A REAL ESTATE REGULATOR BY MAY 17 AFTER WHICH THERE SHALL BE NO EXTENSION
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.