For the first time since independence, the Central government
(over the last few years) has focused on the need to boost the
housing stock. The importance of housing and real estate along
with infrastructure cannot be over emphasized. The extension
of benefits u/s 80I to mass housing projects, abolition of permissions
under sections 37I and 230A, scrapping of Urban Land Ceiling
Act, increased rebates for housing loan and interest payments,
accelerated depreciation for employee housing, lower interest
rates, securitisation of housing loans etc. are some of the
measures adopted by the Central government. But land and revenue
being state subjects, no policy of the Centre can succeed without
the active participation and support of the state governments
and local bodies. Unfortunately, this support is woefully lacking.
Nothing less than a honest implementation of the National
Housing and Habitat Policy (N.H.H.P.) by the state governments
and the local bodies can bring about a housing revolution and
in the process also boost the overall economy. The aim of the
N.H.H.P., that of creating quality, cost effective, surplus
housing stock and removing legal, financial and administrative
barriers cannot be achieved by ad hoc approaches of different
state governments. Rajasthan's abolition of Rent Control Act
(prospectively), Maharashtra's rationalization of stamp duty
on only residential premises, Andhra Pradesh's standardization
of development control rules and such other isolated steps are
not enough to create massive housing stocks on a priority basis.
What is needed is for the states and the local bodies to accord
real estate development the highest priority and accepting their
roles as facilitators in the true sense. There is an urgent
need to remove various hurdles and bottlenecks obstructing the
growth of real estate. Laws like the urban land ceiling Act
need to be scrapped speedily processing of conversion of Agricultural
land to non Agricultural purposes on urban areas, early disposal
of revenue matters, immediate implementation of Indian Stamp
(Orissa Amendment) Act 2001, which is notified in the month
of January 2003. The registration of multi units house or unit
of apartment/flat/portion of a multistoried building or part
of such structural to which the provision of the Orissa Apartment
Ownership Act, 1982 apply under this Act is not allowed by the
Registering Authorities in spite of the fact that the Act is
implemented since last 4 months. Transparency in framing laws,
empowering Architects to sanction building plans etc. also need
the immediate attention of the state governments. The recently
created incentive fund by the Centre is a welcome step in this
direction. But just the carrot will not do; the stick must dangle
for states not willing to reform.
This is not to say that the Central government can rest on
its laurels. While pushing the state governments and local bodies
to undertake reforms, it also needs to initiate proactive steps.
These include the implementation of foreclosure laws, incentivising
purchase of houses, lowering of customs duty on import of cement
and other building materials, unlocking large government owned
urban lands for development, setting up special courts for land
related cases, encouraging use of modern technology in construction,
scrapping regressive laws like section 5OC of the income tax
act, developing a sound debt market and in general removing
& liberalizing the legal and regulatory regime to give a
boost to housing and supporting infrastructure.
Let us not forget that more than 320 million Indians live
in urban areas. India's urban population is second largest in
the world after China. In fact, India's urban population is
higher than the total urban population of all countries put
together barring China, USA, and Russia! With such an enormous
challenge, it is all the more imperative that all arms of the
governments work in unison, efficiently and effectively to bring
about the housing revolution. The states must act and now! Without
such a dedicated effort, the N.H.H.P. will remain just that;
a policy on paper....
Kantilal Patel
Secretary, REDA
