Real estate body aims for surplus housing
23 July 2012 2:39 AM GMT
The Confederation of Real Estate Developers’ Associations of India (CREDAI) has launched a mission to make India ‘Housing Surplus’ by 2020 from the current situation where there is a deficit in proper housing in the country. Real Estate supports 250 industries, generates employment and contributes 11% to GDP.
CREDAI national President Lalit Kumar Jain announced this and rolled out the roadmap at the end of the organisation’s general council meeting in Delhi on Tusday. CREDAI has set a 10-point agenda of action for taking the nation on an accelerated growth path while solving the housing problem faced by millions of people across the country. CREDAI Governing Council board has resolved to take up rain water harvesting as the prime CSR Activity.
Pointing out that the economic liberalisation initiated by Prime Minister Manmohan Singh when he was the finance Minister in 1990 have not covered the real estate sector, CREDAI called for comprehensive reforms for the sector covering land, administration, banking and tax. CREDAI reiterated its long standing demand for a single window clearance system and pointed out that McKinsey has said in its report to the Government of India that delays in approval processes alone increase sale value of houses by 40 per cent.
Delays due to multi-clearances/approvals numbering over 40 by various Agencies/Departments of the Government - the average time being 18 months – are the order of the day though most of the departments have the same series of check lists. This obviously leads to duplication of submission by architects. In fact, the number of building plans sanctioned over the past ten to fifteen months has drastically come down.
‘The only way forward for a clean and cost effective housing sector is an e-based standardisation of single window approval process. CREDAI has submitted a Single Window Act for consideration to Ministry of Housing (HUPA) and Ministry of Urban Development. However, there has been no progress at all,’ Mr Jain said.
Delving on slum rehabilitation, CREDAI pointed out as much as 15% of entire population of this country lives in slums. Few urban areas in state like Maharashtra have come up with slum rehabilitation policy. However, these policies fall short of expectations to achieve desired results, mainly because they are impractical. Also, the Rajiv Awas Yojana in its present form cannot achieve desired results. ‘What we require is slum lord free environment where all the slum-dwellers attaining majority age of 21 get their own rightful homes,’ Mr Jain said. ‘If this goes unchecked and unattended, we will have an explosive situation of hundreds of slum colonies everywhere because housing has become unaffordable,’ he added.
CREDAI said India’s urban population has grown from 290 million in 2001 to 377 million in 2011 which accounts for over 30 percent of the country’s population. The number of cities and towns has also increased from 5,161 in 2001 to 7,935 in 2011 - a 51% growth. The number of 1 million plus cities has grown from 35 in 2001 to 53 in 2011, registering a 45% growth.
CREDAI national President Lalit Kumar Jain announced this and rolled out the roadmap at the end of the organisation’s general council meeting in Delhi on Tusday. CREDAI has set a 10-point agenda of action for taking the nation on an accelerated growth path while solving the housing problem faced by millions of people across the country. CREDAI Governing Council board has resolved to take up rain water harvesting as the prime CSR Activity.
Pointing out that the economic liberalisation initiated by Prime Minister Manmohan Singh when he was the finance Minister in 1990 have not covered the real estate sector, CREDAI called for comprehensive reforms for the sector covering land, administration, banking and tax. CREDAI reiterated its long standing demand for a single window clearance system and pointed out that McKinsey has said in its report to the Government of India that delays in approval processes alone increase sale value of houses by 40 per cent.
Delays due to multi-clearances/approvals numbering over 40 by various Agencies/Departments of the Government - the average time being 18 months – are the order of the day though most of the departments have the same series of check lists. This obviously leads to duplication of submission by architects. In fact, the number of building plans sanctioned over the past ten to fifteen months has drastically come down.
‘The only way forward for a clean and cost effective housing sector is an e-based standardisation of single window approval process. CREDAI has submitted a Single Window Act for consideration to Ministry of Housing (HUPA) and Ministry of Urban Development. However, there has been no progress at all,’ Mr Jain said.
Delving on slum rehabilitation, CREDAI pointed out as much as 15% of entire population of this country lives in slums. Few urban areas in state like Maharashtra have come up with slum rehabilitation policy. However, these policies fall short of expectations to achieve desired results, mainly because they are impractical. Also, the Rajiv Awas Yojana in its present form cannot achieve desired results. ‘What we require is slum lord free environment where all the slum-dwellers attaining majority age of 21 get their own rightful homes,’ Mr Jain said. ‘If this goes unchecked and unattended, we will have an explosive situation of hundreds of slum colonies everywhere because housing has become unaffordable,’ he added.
CREDAI said India’s urban population has grown from 290 million in 2001 to 377 million in 2011 which accounts for over 30 percent of the country’s population. The number of cities and towns has also increased from 5,161 in 2001 to 7,935 in 2011 - a 51% growth. The number of 1 million plus cities has grown from 35 in 2001 to 53 in 2011, registering a 45% growth.
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