Government Considers Dedicated Fund to Revive Stalled Pre-RERA Housing Projects
Union Minister Manohar Lal Khattar on Saturday indicated that the government is considering the creation of a dedicated fund to revive stalled housing projects that were approved before the Real Estate (Regulation and Development) Act (RERA) came into force. The proposal, in line with suggestions from the real estate industry, aims to ensure a “win-win settlement” for both developers and homebuyers, according to a statement.
The minister was speaking on the second day of the ‘National Urban and Real Estate Development Conclave’ organized by NAREDCO. During his address, he discussed the idea of setting up charitable institutions to support affordable housing, particularly in the Low-Income Group (LIG) and Economically Weaker Sections (EWS) categories. As per news agency PTI, the minister said funds for such initiatives could be mobilized through Corporate Social Responsibility (CSR) contributions. He noted that banking and financial institutions have not been very proactive in extending support to these sections of society, making alternative funding channels necessary.
The statement issued by NAREDCO also mentioned that the minister indicated around 700 to 750 slum settlements in and around the National Capital Territory (NCT) could be taken up for development. According to PTI, a policy framework for this large-scale redevelopment is currently under discussion at a high level among various government authorities and stakeholders.
On the same occasion, NAREDCO chairman Niranjan Hiranandani said that while the government has made significant efforts to prioritize housing in the Indian economy, more needs to be done. He stated that the sector’s contribution should rise to 15 percent of the economy by 2047. This push for a stronger housing sector is seen as crucial for economic growth and social development, especially in the context of urbanization and the need for affordable housing solutions.
The government's consideration of a dedicated fund to revive stalled pre-RERA projects is a significant step towards addressing the challenges faced by the real estate sector. It not only aims to support developers who are struggling with incomplete projects but also ensures that homebuyers who have invested in these projects are not left in the lurch. This comprehensive approach is expected to boost confidence in the housing market and contribute to the overall economic well-being of the country.
