Property in India

Indian private sector encouraged to build affordable properties

A shortage of property remains a problem in India and developers have been urged by the Government to build affordable houses in order to eradicate slum living in the country.  The Union Minister for Housing and Urban Poverty Alleviation has called on private property developers to help participate in the construction of affordable houses to meet an estimated 6.5 million shortfall of homes in the country.

Government aid set to help construction of property in India

Kumara Selja, Union Minister for Housing and Urban Poverty Alleviation, said: “There is a need to encourage private sector to come forward and participate in providing affordable housing stock and help tackle the problem of slums. We have to make Mumbai and India slum free.”

IBNLive reports that the Minister was speaking after inaugurating a committee on urban poverty alleviation and Rajiv Awas Yojana (RAY).  Under the RAY, private developers and the State Government should work together to create affordable properties to tackle the problem of slum proliferation, said Ms Selja.

According to the Minister, there is a shortage of 6.53 million homes in India of which Maharashtra accounts for 3.72 million.  The problem is an important issue affecting the growth of the country.

Ms Selja continued: “Under the Rajiv Awas Yojana, the Centre will give aid up to 50 per cent of the slum redevelopment project. We want the State Governments to use these funds for leveraging their plans to create a slum free India.”

The Minister did warn the states that reforms were a crucial part of any Government aid that would be available.  "These reforms include the enactment of law and the assignment of property rights, as also reforms to housing policy."

IBNLive reports that Maharashtra Chief Minister Prithviraj Chavan, who was also present at the event, said his Government will try to get more funds from the government to build more homes in an attempt to eradicate slums in Mumbai.