NEW DELHI: The Indian government is fully committed and working in a direction to ensure that the new Real Estate (Development and Regulation) Bill protects the interests of the real estate industry and safeguards the interests of the house buyers as well, said Rajiv Ranjan Mishra, joint secretary, ministry of housing & urban poverty alleviation, speaking at the CII Realty conference 2015.
“We are in consultations with all key stakeholders like the developers, builders, retail buyers, the state governments, other related ministries, and other parties as well to work out solution on a few regulations in the bill,” Mishra said.
He pointed out that a balanced bill that protects both the buyers and the sellers would certainly act as a game changer for the real estate industry which is presently passing through a tough phase because it would reinforce the confidence of various financial institutions, banks and foreign investors in Indian realty sector
“This would help solve the big fund crunch that the sector is facing. Further it is also expected to boost the retail demand if the consumer feels more secure of the timely possession and effective delivery of other services,” he said.
On speeding up the approvals process which is one of the biggest bottlenecks in the real estate sector, he pointed out that the ministry has convened a committee with key representatives of different related ministries like the environment, forests and climate change, finance, defence, urban development, civil aviation, labour, power, cultural and consumer affairs etc to streamline the approval process.
“The members would meet regularly and next meeting is on July 30 to be chaired by Mr M Venkaiah Naidu, Housing and Urban Poverty Alleviation (HUPA) Minister. The minister would draw a roadmap with all ministries concerned to make concerted efforts to facilitate ease of doing business in Indian real estate sector by fast tracking of approval procedures especially for the affordable housing projects,” he said.
Mishra said that they have requested different ministries and states to identify and clearly notify the areas where construction or development is permissible and where it is not and hence create land banks, so that the realtors are not harassed later on to get the approvals. “It is estimated that simpler and uniform processes would lead to a 20-30% decrease in the cost per unit,” he said.
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