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The Draft Model Tenancy Act will soon be sent to the union cabinet for approval and will be circulated to the states, Durga Shankar Mishra, secretary, Ministry of Housing and Urban Affairs said, while speaking at the 15th national convention of the National Real Estate Development Council (NAREDCO). “Around 500 suggestions and feedbacks have been received on the Draft Model Tenancy Act,” he added. Mishra said that a website will be created and the Model Tenancy Act will be based on the Real Estate (Regulation and Development) Act (RERA) framework. He further said that earlier, the tenancy act was biased towards tenants but the new act will initiate a balanced relationship between landlord and tenants. Mishra reiterated that the government will soon bring amendments to the real estate law, to make it more implementable, for which regional forums will be formed to conduct consultations with stakeholders.
According to an estimate, around 11 million units in the urban areas of the country are vacant and can be rented out. The rental housing policy would also restrict the urban sprawl that otherwise happens, because of the demand for new homes and will bring mobility of employment to the young generation.
Environmental clearance for realty projects to be reduced to 60 days
Union environment minister Prakash Javadekar added, at the event that the environmental clearance for a real estate projects, will be reduced to 60 days from 108 days. The process will be streamlined further in some time from now, to avoid procedural delays and make the procedure smooth in all states. He further added that in order to become a five-trillion –dollar economy, ease of business has to be provided and that can only be done through mutual consultation.
50 smart cities to be launched by December 2019
The event was also attended by the union urban development minister Hardeep Singh Puri, who announced that 50 smart cities would be ready for launch by December 2019 and the remaining 50 would be rolled out in phases. While discussing the Housing for All mission, Puri said that it would be achieved two years in advance and that the government was holding talks with private builders, to meet its target. With respect to the demand for a stress fund, the minister said that measures would be announced soon.
Investments worth Rs 5 lakh crores riding on PMAY
“Investments worth more than Rs 5 lakh crores, is riding on the Pradhan Mantri Awas Yojana (PMAY). The cost-effective, sustainable and energy-efficient construction technologies used, have made a big contribution to its success. Around 50 lakh houses under the PMAY, are under construction currently and 26 lakh have already been delivered,” said Amrit Abhijat, IAS, joint secretary (PMAY), Union Ministry of Housing and Urban Affairs.
He also spoke about the recently launched ‘Lighthouse Project’, under which new construction technologies have to be used, to build 1,000 low-cost, sustainable and disaster-resistant houses. Abhijat invited builders to participate in the bidding process on the official website, which ends on August 30, 2019.
Private partnerships in Delhi, to achieve Housing for All
In order to fulfil the affordable housing target, private sector participation is inevitable and hence, should be allowed, said Manoj Tiwari, BJP Delhi chief. He said that the centre is determined, to provide housing for all in Delhi and the Delhi Development Authority (DDA) is working out the Land Pooling Policy, to ensure 17 lakh affordable housing units across Delhi. Meena Vidhani, deputy director (planning) of the DDA also elaborated on how private developers can contribute to the Land Pooling Policy and how landowners can make the most of it, with the help of the DDA.
Commercial development to be followed by housing demand
Pointing out that many companies were expanding their operations in India, resulting in demand for commercial spaces, Niranjan Hiranandani, president of NAREDCO and co-founder and managing director of the Hiranandani Group, said “For every 100 sq ft of jobs created, there is a 1,000 sq ft of potential future residential demand, provided it is affordable. At present, commercial developments are attracting a majority of the investments from private equities and private funds.” He further added that developers should focus on selling their inventories at economical prices and move on. In conclusion, the panelists agreed that it was high time that developers changed their working style and made home buyers the centre of their business.