Government Eyes Dedicated Fund to Revive Stalled Pre-RERA Housing Projects
In a significant move aimed at addressing long-standing issues in the real estate sector, Union Minister Manohar Lal Khattar indicated on Saturday that the government is actively considering the establishment of a dedicated fund. This fund is specifically designed to revive stalled housing projects that were approved before the implementation of the Real Estate (Regulation and Development) Act (RERA). The proposal, which aligns with suggestions from the real estate industry, seeks to create a win-win settlement for both developers and homebuyers, as per an official statement.
Focus on Unfinished Projects and Affordable Housing Initiatives
The minister made these remarks during his address on the second day of the National Urban and Real Estate Development Conclave, organized by the National Real Estate Development Council (NAREDCO). Khattar emphasized the need to support affordable housing, particularly for the Low-Income Group (LIG) and Economically Weaker Sections (EWS). He proposed the creation of charitable institutions to facilitate this, noting that banking and financial institutions have not been sufficiently proactive in extending support to these vulnerable segments of society.
To mobilize resources for such initiatives, the minister suggested leveraging Corporate Social Responsibility (CSR) contributions as an alternative funding channel. This approach aims to bridge the gap in financial assistance and ensure that affordable housing projects receive the necessary backing to move forward effectively.
Slum Redevelopment Plans for National Capital Territory
In addition to the housing fund, the statement from NAREDCO highlighted Khattar's indication that approximately 700 to 750 slum settlements in and around the National Capital Territory (NCT) could be taken up for development. According to reports from news agency PTI, a comprehensive policy framework for this large-scale redevelopment is currently under high-level discussions among various government authorities and stakeholders. This initiative reflects a broader effort to improve urban living conditions and address housing shortages in densely populated areas.
Industry Calls for Enhanced Housing Sector Contribution
During the same event, NAREDCO Chairman Niranjan Hiranandani underscored the importance of further boosting the housing sector's role in the Indian economy. While acknowledging the government's significant efforts to prioritize housing, Hiranandani argued that more needs to be done. He set an ambitious target, stating that the sector's contribution should increase to 15 per cent of the economy by 2047. This call for a bigger housing push aligns with the broader goals of economic growth and social development, emphasizing the critical need for sustained investment and policy support in real estate.
The discussions at the conclave highlight a multi-faceted approach to tackling housing challenges, combining financial mechanisms, policy frameworks, and industry collaboration to drive progress in India's urban and real estate development landscape.
