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27/11/2014
ROT News - 138Views - 42

Author - Sumita Roy

The central government is planning to introduce subsidized interest rates on home loans taken by people of low income group. It thinks that this steprnwill not only boost the real estate demand in India but also encourage LIG people on buyingrnhomes.rn

Venkaiah Naidu, Minister of Housing and Urban PropertyrnAlleviation, addressing the CREDAI conclave, said that Real Estate Developmentrnand Regulation Bill is about to come up in the Cabinet for its approval. And Naidurnhopes that by the next budget session the proposed law gets implemented,rnpractically.

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He said on the sideline of the event, "We are coming out with an interest subventionrnscheme for the housing sector for the economically weaker section (EWS) andrnlower income group ( LIG) people and also partly to lower middle class people.”

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Naidu further explained that though reduction of interest raternis difficult to manage right now, however, the government is inkling towardsrngetting the same done. About the timeline, he said that whenever the nextrnhousing policy gets launched, the interest subvention scheme will be introducedrnalong with it.

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As per the government’s estimation, the shortage of homes inrn2012 was 18.78 million of which almost 95 percent belonged to the EWS/ LIGrncategory. The real estate industry is presently facing a slowdown due tornescalated interest rates and skyrocketing property prices.

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On the context of single window approval, Naidu said that measuresrnare being taken to get the procedure of approvals- especially in the environmentrnand aviation clearances- fast tracked and simplified.

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The real estate regulatory is in the ‘final stage ofrnconsultation’. He said, "I have gone through it personally.rnWe have taken the views of various stakeholders including real estate sector.rnThen we will go to the Cabinet shortly. Once the cabinet approves, I am hopingrnwe will get early clearance, and then we will go to the Parliament…. If notrnthis session, at least by the budget session the Real Estate Development andrnRegulation Bill will be a reality.”

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Naidu said that once the Act is passed by the Parliament,rnstate government will have the independence to frame rules under it. He added, "Therernwill be no strangulation, only regulation. It will be a people friendly andrnconstruction sector friendly bill. In a democracy, regulation is required.”

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The real estate Regulatory Bill was introduced in the RajyarnSabha on August 2013. It was a proposal to protect home buyers from thernunscrupulous processes of the developers. In February 2014, the StandingrnCommittee has submitted its report.

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Under this bill, registration of all projects will becomernmandatory- accompanied with disclosure all relevant information such as detailsrnof layout plan, promoters, schedule of execution, land status, carpet area andrnstatus of various approvals.

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The bill intends to enforce a contract between the homernbuyers and developers which will ensure fast remedial measures in case ofrndisputes.

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Naidu further added that the center will promote publicrn–private partnership to achieve the real estate dream of ‘housing for all byrn2022’. It will also be investing a whopping Rs. 14 Lakh Crore annually tornachieve the same.

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While focusing on the real estate sector’s necessity forrngrowth, he said, "My government is open. We want to encouragernmanufacturing sector. We want to encourage business community so that theyrncreate wealth and then we can prosper, we can distribute and we can reach tornthe bottom and let upliftment of the masses. This is the belief of myrngovernment…. There are people who do business with businessmen in the night andrnthen condemn them in the day. We don't do it. I have no problem, I will sayrnthis in Parliament also that you are our partners.”

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The Minister for Housing and Urban Poverty Alleviation saidrnthat the real estate industry contributes as much as 6 percent of the totalrnIndian GDP, but it has the potential to grow up to 12 percent by 2022. Whilernseeking support for the bill he said that people in India want development,rngovernance and stability.

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He added that infrastructure development is not possiblernwithout investments, "I hope that thernopposition will also realize that the need is to get maximum investment andrnsupport us whether regards to the insurance bill or with regards to investmentrnin the various sector.”

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Foreign investors are currently looking in India to dornbusiness. The Indian situation has changed. The government is acting as fast asrnpossible and is gaining confidence and trust of the people in doing so. 

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