The NDA Government is planning to introduce a comprehensive Real Estate Regulation Bill to protect the interests of the buyers as well as to regulate the industry, according to the Union Minister for Urban Development, M Venkaiah Naidu.
He was speaking at the silver jubilee function of the Visakhapatnam chapter of the Confederation of Real Estate Developers' Associations of India (Credai) here on Thursday evening.
He said, however, the industry need not be worried over the move, as "the Government is only contemplating regulation, not strangulation, of the industry. In fact, it is best if the industry regulates itself through organisations like Credai by adhering to a self-imposed code of conduct. It will obviate the need for Government intervention."
He said he was surprised to note that builders in Andhra Pradesh were still facing some problems on account of the Urban Land Ceiling Act and promised them that he would take up the issue with the Chief Minister.
Single window system
Venkaiah Naidu said that the Government would also make it easier for builders by introducing the single window system. He admitted that some of the procedures were cumbersome and they needed to be done away with.
"We are streamlining the whole process in consultation with the States. Some of the issues such as sand scarcity in AP are in the domain of the State Government, but we will do our best to address the issues," he said.
Interest subvention
He said that the Union Government was also contemplating interest subvention to give a boost to the housing activity in the country.
"At present, the interest on housing loans ranging between 10 to 11 per cent is a bit too high and therefore the Government is planning a subvention scheme to bring it down to a manageable 7-8 per cent. The commercial banks will lend at the rate of 10-11 per cent, but the rest will be borne by the Government," he explained.
He said Visakhapatnam would be developed as a smart city with the technical assistance of the US, as promised by the Prime Minister, and a seminar would be held in January or February on the issue in which he would participate.
Later, prominent builders of the city were felicitated on the occasion by the Union Minister.