CommonFloor Survey: Give clarity on policies for ‘Housing for all by 2022’
One of the highlights of the Union Budget 2015-16 for the real estate sector was the government’s agenda to provide ‘housing for all by 2022.’ This initiative was welcomed with loud cheer by all and sundry and was hailed as a landmark proposal. The government went one step ahead in the Union Budget by allocating Rs 4,000 crore to the National Housing Bank (NHB) to provide cheaper credit for affordable housing to the deserving.
This included the urban poor, economically weaker sections (EWS) and low-income groups (LIG). It was also proposed that residential projects that commit at least 30 per cent of the total project cost towards affordable housing would be exempted from the constraints of minimum built up area and capitalisation requirements, with the condition of a three-year lock-in period.
Consumers unaware of govt’s action plan
However, one year down the line, consumers are still unsure about the government’s action plan with regards to its proposal to provide housing for all by 2022. This was evident in a consumer survey undertaken by commonfloor to gauge the response of consumers across India.
As per the survey, a whopping 57.1 per cent of respondents said that they were unsure about the steps taken by the government towards achieving its objective of ‘Housing for all by 2022’. 14.3 per cent respondents each said that the government was either taking or not taking sufficient initiatives towards its objective of housing for all by 2022. This points to the fact that the government machinery needs to do more to propagate its activities more effectively across to the common man.
Govt initiatives Post Union Budget 2014-15
The government on its part has done sufficient to inspire confidence among the common man that it is committed to its proposal regarding housing for all. There are many initiatives that the government has taken following the Budget to drive in the point that it is committed to this initiative. One of these was to extend additional tax incentives on home loans so as to encourage buyers, especially the young, to own houses. It has also outlined other initiatives like easier flow of Foreign Direct Investment (FDI) into the real estate sector and the inclusion of slum development into the purview of Corporate Social Responsibility (CSR) that private sector companies can contribute towards.
New Schemes
Further, the Rural Housing Scheme has benefited a large section of people who have availed credit at low interest rates through the Rural Housing Scheme. As a result, the government has enhanced allocations to NHB to about Rs 8,000 crore to support rural housing. Moreover, the Sardar Patel Urban Housing Mission will ensure that about 30 million houses are constructed by 2022, primarily for the economically weaker sections. Initiatives would also be taken to replace slums with low cost housing and rehabilitate slum dwellers. This would not only ensure that they have a dwelling but also a safe and healthy environment, affordable transport and energy and clean drinking water. It was felt that an investment of about 22.5 lakh crore would be required in the coming years to fulfill the ‘Housing for All’ proposal.
