Real estate industry should come forward to build houses for urban poor: Prof. Saugata Roy
New Delhi, May 20th
2012: To upscale its real estate, India needs to add more cities, while
strengthening existing ones, with an effective urban planning strategy which is
sympathetic to regional needs and considerations, said Prof. Saugata Roy,
Minister of State – Urban Development, Government of India at India Realty 2012
organised by EPC World Media Group.
"The massive urbanisation in
the past few decades has led to severe housing shortage for the urban poor...
providing affordable housing is one of the most formidable challenges that our
country faces today," Roy added.
Raising his concern over the lack
of participation from real estate developers on houses for urban poor, Roy
said, “The government has sought to create an enabling and supportive
environment for expanding credit flow to the housing sector and increasing home
ownership in the country.”
Several policies and initiatives
like fiscal incentives have been taken to facilitate private sector
participation in supply of affordable housing, he added.
While delivering his welcome
address, Tejasvi Sharma – Editor-in-Chief & Director, The EPC World Media Group
said, “At present, the country have shortages of around 26.7 million units,
which is a matter of concern. As the economy shows signs of decreasing GDP
growth rate, the Indian real estate industry faces its own share of concerns –
rising raw material prices, fluctuating interest rates, inflation, weak
governance etc.”
The Realty India 2012 is at right
place and at right time, he added. Realty India 2012 held in Delhi and aptly
themed ‘Emerging business opportunities & changing trends in the Indian
realty market’ aimed at gaining perspectives on factors that could turn India
into a global real estate powerhouse in the next few years.
Addressing the inaugural session,
Dr Sudhir Krishna, Secretary, Ministry of Urban Development, Government of
India, said, “It is necessary to provide better living conditions for people in
urban areas whether they are rich class, middle class or poor. And this can be
done through only real estate industry as they are facilitator for us.”
"We are looking forward to
reciprocate the initiative from the private sector to supply these housing
units," he added.
Giving an overview of 12th
Five Year Plan, Dr PR Swarup, Director General, Construction Industry
Development Council (CIDC), said, “India requires around Rs55 lakh crore of
investment in the next five years to uplift the urban infrastructure, but, at
the same time there is a great need for skilled and trained labour. I urge government
to take some constructive steps in developing modules and institutions for
untrained manpower of India.”
Echoing the same was Ranjeet
More, Vice President–BAI (West) & MD, Universal Construction Machinery
& Equipment. While delivering his keynote address, More said, “India needs
to mechanize the entire process of construction to match the speed and quality
of developed countries but for that we should be able to produce skilled labour
to deliver the massive infrastructure of the country.”
According to HS Pasricha,
Chairman – Delhi Centre, Builders’ Association of India & MD, Winner
Constructions Pvt. Ltd, affordable housing is a real problem in India, and the
world is well aware of it. “The income pyramid in India is heavy at the bottom,
with over 60% of the households earning averagely less than Rs80,000 per year.
Nearly 19% of the households can’t afford any type of housing through their
income. Another 44.6% of the households in the Lower Middle Income Group can’t
afford a house in Tier I or II cities. Builders, architects and government have
to plan real estate development which conforms to the needs of the income
pyramid of India.”
Housing is a basic need and
measures like increasing density by hiking the floor-area ratio and encouraging
public-private partnership should be considered in fulfilling the housing need
of the country, opines SK Chaudhary, Sr. Executive Director-Projects, HUDCO.
He said availability of land at
cheap rates is the greatest challenge in providing affordable housing in the
country.
However, Prof Roy, in the second
phase of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) targets to
build around 15 lakhs homes for urban poor. “JNNURM is a reform driven
programme and in the next phase of JNNURM, we will build around 15 lakhs of
homes for urban poor.”
He also added that under JNNURM,
it has sanctioned around 40 solid waste management projects under public
private partnership model.
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