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Topic: Suggestions for greater development

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AuthorTopic:   Suggestions for greater development
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posted: 11/19/2011 at 1:36:27 AM ET
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The participation of the private sector in housing development has led to significant changes in the real estate sector. Due to the increasing demand for luxury Villas Cochinis witnessing the entry of more private parties. In order to encourage the involvement of private sector, a leading expert has suggested the following measures:

1.A firm government policy backed up by the political will and properly spelling out the modalities of involving the private sector should be evolved. The policy should not differ too much from state to state
2.Housing and urban development programmes are getting delayed because the process involved in obtaining the necessary sanction is very lengthy and cumbersome. It is high time to introduce a single window clearance concept where representatives of all the concerned departments are available to coordinate and process any development proposal.
3.The Urban Land (Ceiling and Regulation) Act has been a great deterrent and has slowed down the housing activity tremendously. This Act must be either removed from the statute book or amended substantially to permit housing and other development schemes so that they avoid concentration of large chunks of land in hands of a few individuals.
4.The Land Reforms Acts in states like Karnataka where non-agriculturists and people from other states cannot acquire lands even for urban development should be amended to facilitate involvement of the private sector. In fact, whichever legislation is an impediment to the participation of the private sector, it should be amended and more positive and forward-looking legislations should be introduced.
5.The archaic rent control laws have deterred investment in housing, especially in rental housing. It is heartening to note that many states have amended these Acts and made them more realistic. However states, which have not yet amended their rent laws, should immediately amend them so that private sector’s contribution can be made more effective.

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