The National Real Estate Development Council, a body of real estate developers, has called upon Central and State Governments to facilitate development of affordable housing by the organised private sector.
In a proposal submitted to the Ministry of Housing and Urban Poverty Alleviation, Naredco said it has asked the Government to incentivise affordable housing projects developed by private sector on its own land.
Naredco said the Government should sanction affordable housing projects within 30 days of application submission to a Single Window Empowered Facilitation Committee.
Among other measures to reduce the cost of affordable housing, the State Governments should exempt affordable housing units from stamp duty, external development charges and land use conversion charges.
Naredco said access to credit through formal banking and housing finance institutions is a must as nearly 50 per cent households can afford ownership housing.
“The formal banking institutions should adopt innovative practices for sanctioning loans to informal sector on the pattern of private and micro finance housing companies. In this connection separate credit appraisal norms for home buyers in informal sector are required,” Naredco said.
According to Government estimates, the urban housing shortage at the end of the 10th Five-Year Plan was estimated to be 24.71 million for 66.30 million households. During the 11th Five-Year Plan, it is estimated that the total housing requirement in Indian cities by end-2012 will be to the tune of 26.53 million.
bindu.menon@thehindu.co.in