“With the aim to provide half a Million Houses to Economically Weaker Sections (EWS) & Lower Income Groups (LIG), the Revised Affordable Housing in Partnership (AHP) scheme will be launched very soon to encourage state concessions and creation of affordable housing stock for construction”, shared Dr Girija Vyas, Hon’ble Union Minister of Housing and Urban Poverty Alleviation, Govt of India while addressing the REALTY 2013, Confederation of Indian Industry’s (CII’s) flagship conference on Real Estate, in New Delhi today.
“Through this scheme, the government aims to encourage partnerships between various agencies i.e. Central & state Governments /Housing Boards and Development Authorities and Urban Local Bodies (ULBs) and industry for creation of affordable housing. The scheme offers several supply side as well as demand side incentives. Some of the key incentives being concessions on development charges, service tax and direct tax exemptions, encouraging Foreign Direct Investment (FDI) in affordable housing, reduced stamp duties, increasing Floor Space Indexes (FSIs) in affordable housing projects and encouraging Transfer of Development Rights (TDRs) etc”, she added.
“Besides, Rajiv Awas Yojana (RAY), launched recently envisages a ‘Slum Free India’ with inclusive, equitable cities and where every citizen has an access to basic social and civic services, strong livelihood linkages and decent shelter. It encourages States to tackle the problem of slums holistically by bringing existing slums under the formal system, giving them access to the same level of services as available in the rest of the town and also tackle the shortage of urban land and housing that keep shelter out of reach of urban poor. We aim to support establishment of 2.5 million housing units under the 3 schemes Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana (RRY) and Affordable Housing in Partnership Scheme (AHP) clubbed together”, she further highlighted.
“She also called on the industry to support government in its aim to meet the shortfall of 18.7 million units. The industry has already made huge strides in embracing certain reforms, technological changes and modern practices - the test now is for these changes to gather momentum and redefine the tenets of the market. Industry should proactively participate through capital and technology up-gradation and creation of affordable stock and help the Government build an inclusive India”, she pointed.
On regulatory issues front, Minister said that Real estate (Regulation and Development) Bill 2013 has been approved by cabinet and will be introduced in the Parliament which will bring transparency towards contractual obligations. It will ensure consumer protection and promotion of the Real Estate sector through effective regulation and introduction of speedy mechanisms for adjudication of disputes. Dr Vyas said that Industry & government need to work together and have regular dialogues on overcoming the existing issues in the Real Estate Sector growth.
Mr Jayant Davar, Chairman, CII Northern Region said that Real estate sector has set a trend for higher growth and its contribution to GDP growth is applauding and creating huge job opportunity in country. Mr Davar said that Land acquistion bill will help provide fair compensation to people affected. Mr Davar also said that we need to draw a raodmap jointly with Government to eradicate the existing issues of this Sector.
Also present at CII realty 2013, Mr Anil Kumar Misra, Secretary, Ministry of Housing and Urban Poverty Alleviation, GoI said that India is in the process of rapid urbanisation accounting 51% urban and will continue to grow higher with high density. Mr Misra added that past 15 years has shown magnificent growth in the Real estate and Housing Sector. Mr Misra said that there is a need of legal platform that would provide transparency in the sector. To boost FDI in Real Estate Sector, Mr Misra recommended that minnimum mandatory built up should be reduced. Mr Misra higlighted the steps that Ministry has taken in laying schemes like RAY,RRY and AHP for the benefit of the urban population and real estate sector. Mr Misra also said that concession development charges, services tax and direct tax exemption is a part of this scheme benefitting real sector. He said that we have been working tirelessly for the urban poor and economically weak people by funding them through various government schemes.
Mr V P Baligar , CMD, Housing & Urban Development Corp.(HUDCO) said that Urban population has increased to 377 million in 2011 compared to 62.4 in 1951 with an increase in level of urbanisation from 17% in 1951 to 315 in 2011. “Demand for residential real estate has increased tremendously adding growth wings to ancillary industries, generating employment and also acting as an engine of economic growth. Outstanding housing loan as a percentage of GDP has risen to 9% and Mortgage to GDP ratio is projected at 20% by 2020 are issues of concern”, he added. He stressed on encouragement of private sector participation in “Affordable Housing” for urban poor.
Mr Anshuman Magazine, Conference Chairman and Chairman & Managing Director,CBRE South Asia Pvt. Ltd said that Real Estate plays a vital role in India’s GDP growth and has always been a major factor for overall growth of the economy. He opined that Retail and Housing sector can kick start economic growth and that among other things, the Land Acquisition Bill would be a major game changer for Real Estate Sector in coming days.
Mr Juno Madan, Chairman, Brahma Group said that Indian Real estate is one of the most prominent business sectors which need to redefine and work on various aspects including Government approvals and clearances, provision of Tax breaks as well as financial assistance which will help provide robust demand and attract investors from India and abroad.
Mr Zubin Irani, Deputy Chairman, CII Northern Region said that Real Estate Sector promises to grow in the coming years which will definitely contribute towards raising the growth graph of the country.