There is need to give a fillip to the flow of bank finance for housing for the poor in urban areas, said Union Urban Development, Housing & Urban Poverty Alleviation Minister M. Venkaiah Naidu.
“For this purpose, there is a need to create an apex bank to monitor the financing in urban areas. The matter should be taken up with the Finance Ministry to extend the jurisdiction of NABARD to the urban areas or give this responsibility to any other agency like SIDBI,” a statement from the ministry said.
The minister has directed for formulation of new schemes for slum redevelopment and affordable housing for the urban poor, the statement said.
Naidu said the schemes must be simple in conception and actively involve various stakeholders including State Governments, Urban Local-Bodies, Civil Society/NGOs as well as banks and financial institutions.
He called for involvement of private partners through a transparent and competitive process to inject more managerial and financial efficiencies in the execution of the projects.
In view of the huge shortage of urban housing, estimated at around 19 million, active participation of all the stakeholders in a synchronous fashion is necessary, the Minister said. “If we carry on with a business-as-usual approach, the housing shortage would balloon to 30 million by the year 2020.”
The Minister issued instructions for the expeditious completion of the houses, under construction, estimated to be around 3.77 lakh, as the top-most priority under the JnNURM, which is scheduled to close in March, 2015.