Minister of Housing and Urban Poverty Alleviation, Mr. Venkaiah Naidu on Tuesday directed Secretary of his Ministry to immediately convene “A Roundtable” with all developers, banks and housing finance companies to deliberate in detail as to why no private sector participation has been enlisted under Pradhan Mantri Aavas Yojana and found out reasons for their reluctance in the scheme.
While addressing a conference on “Real Estate Sector Post Remonetisation & RERA” under aegis of PHD Chamber of Commerce and Industry here today, Mr. Naidu said that until yesterday, the government approved Rs.90,000 crores of investments in affordable housing with none in it representing the private sector.
“On this occasion, Dr. Nandita Chatterjee, Secretary (HUPA) to immediately convene a Round Table with all developers bodies, banks and Housing Finance companies and others concerned to deliberate in detail why there has been no private sector participation under PMAY (urban) so far and the road ahead in the new eco-system of opportunities. This round table also need to discuss ways and means, if need be, of improving various components of PMAY (urban) to encourage private sector participation”, said the Minister adding “I would expect this Round Table to come out with appropriate business models so that the goal of ensuring Housing for All by 2022 is met”.
“Under PMAY (urban), the government has so far approved construction of over 16 lakh affordable houses with an investment of about Rs.90,000 crores for which central assistance of about Rs.25,000 crore also has been approved”, explained the Minister, expressing his surprise saying “I am rather disappointed that not a single proposal has come from private builders so far even though (PMAY) urban has been designed envisaging a big role for private sector”.
He asked industry concluding his remarks, “Isn’t this a huge opportunity for developers at the ‘bottom and middle of the pyramid? In my view, it certainly is. Then what are you waiting for?”
Dr. Chatterjee in her remarks explained merits of Real Estate (Regulation and Development) Act, 2016 saying that its stipulations are equally rewarding for developers and buyers of dwelling units and any compromise on them are subject to legal scrutiny.
In his welcome observations, President, PHD Chamber, Mr. Gopal Jiwarajka hoped that with re-monetization picking up its space, the real estate sector would witness corrections and supplies would match the demand.
Vice President of the Chamber Mr. Rajeev Talwar in his brief utterances requested the minister that private sector participation in affordable housing would become a reality with slight tweak in PMAY and congratulated the minister for his proactive approach towards the real estate.
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