Venkaiah Naidu asks real estate for ‘out of box’ ideas

New Delhi, October 08, 2014 – Seeking “out of the box” ideas from the real estate sector for affordable housing, the government today said it will consider recommendations for investing insurance and pension funds in the sector.

“Real estate sector also has to work with out of box ideas to make a mark in affordable housing segment. This sector also has huge demand and opportunities,” Urban Development and Housing and Poverty Alleviation Minister Venkaiah Naidusaid.

He was speaking at a real estate conference organised by the Associated Chambers of Commerce and Industry of India.

“Recommendation pertaining to allowing insurance and pension funds to invest in real estate sector will also be taken up in due course,” Naidu said.

The NDA government has promised to provide housing for all by 2022.

Naidu said providing housing for all is a big challenge and the government needs public and private participation to meet the target. He also assured the industry that his ministry wants that affordable housing should be included in the priority sector lending by banks.

“We are pursuing with Finance Ministry regarding providing a sub-window of at least three per cent for affordable housing sector within 40 per cent priority sector lending allocation,” the minister said.

He further said the need for ‘single window clearance’ is also being explored. “We are discussing how far it is possible with other ministries and state governments and also to give infrastructure status to housing sector,” Naidu said.

Responding to grievances of those in the real estate sector over delay in getting clearances including environment, Naidu said he is hopeful of finding a solution to this.

“As far as environment clearance is concerned, which is one of the reasons for long delays, I had discussion with the Environment Ministry and we hope to find some solution to this,” he added.

“Once the Urban Development authority’s plan has been approved then there should not be any need for individuals to go for clearance for each and every project. We are considering the suggestion positively,” Naidu said. PTI