DELHI: The new urban development and housing minister Venkaiah Naidu is in favour of fixing “responsibility and accountability” on real estate developers.
The minister has set the target of providing pucca housing to all by 2022. Addressing a high level consultation meeting on housing on Monday, Naidu said that he wants the developers and builders to be responsible to consumers by some legal mechanism, said a government official.
UPA government could not pass the real estate regulator bill, which promised to protect interest of home buyers.
On Monday, the meeting was attended by other stake holder organizations including National Housing Bank, Indian Banker’s Association and industry bodies including CII, Ficci and Assocham besides representatives of builders’ organization.
An official release said the task of housing for all is challenging since the housing ministry has only Rs 35,000 crore to provide affordable housing and for slum development in the 12th Five Year Plan while the requirement is much larger – about Rs 22.5 lakh crore. Hence, the ministry will push for Public Private Partnership in this sector and exploring corporate social responsibility (CSR) to build such houses are required in this sector, Naidu said.
Responding to the views of private developers that they need to take clearances and approvals from 40 authorities for housing projects and that investment of nearly Rs 5 lakh crore is stuck, the minister said all issues will be taken up in the next 100 days and stakeholders’ concerns will be addressed. The developers demanded simplification of procedures, tax reforms, land reforms, administrative reforms, lending reforms as well as giving infrastructure status to the construction sector.
Housing secretary Anita Agnihotri said that infrastructure status for the affordable housing sector may be taken up with the finance ministry and a policy for rental housing may be laid out since there are over 10% houses that are lying vacant because of rental policy issues.
The shortage housing is nearly 18.78 million as per estimates of 2012 and 95% of the shortage is in low-income category.