Stalled Housing Projects: Manohar Lal Proposes Dedicated Revival Fund

Union Minister Manohar Lal has proposed the establishment of a dedicated fund to revive stalled housing projects approved prior to the implementation of the Real Estate (Regulation and Development) Act (RERA). This proposal was made during the second day of the 'National Urban and Real Estate Development Conclave' organized by the National Real Estate Development Council (NAREDCO).

The minister emphasized the need to ensure a win-win settlement for both promoters and homebuyers. He highlighted that this fund could be crucial in addressing the issues faced by the real estate sector, particularly in projects that were approved before the stringent regulations of RERA came into effect.

Speaking at the event, Manohar Lal also discussed the possibility of setting up charitable institutions to fund affordable housing in the Low Income Group (LIG) and Economically Weaker Section (EWS) segments. He suggested that Corporate Social Responsibility (CSR) contributions could be a significant source of funding for these charitable institutions, as banking and financial institutions are often less proactive in supporting such initiatives.

According to the statement issued by NAREDCO, the government is actively deliberating on a policy framework to develop around 700-750 slum settlements in and around the National Capital Territory (NCT). This development is part of a broader effort to improve living conditions and provide better housing options for the underprivileged sections of society.

NAREDCO Chairman Niranjan Hiranandani spoke about the government's efforts to prioritize housing in the Indian economy. While significant progress has been made, Hiranandani emphasized that more needs to be done to increase the contribution of the housing sector to 15 percent by 2047. He noted that the current contribution is far below this target and that collaborative efforts between the government and the private sector are essential to achieve this goal.

The proposal for a dedicated fund to revive stalled housing projects is seen as a positive step towards addressing the challenges faced by the real estate sector. It aims to provide a structured and sustainable solution to the issues of incomplete projects, ensuring that homebuyers and developers are both protected and supported.

The real estate sector in India has faced numerous challenges over the years, including delays in project completions, financial constraints, and regulatory hurdles. The establishment of a dedicated fund could provide the necessary financial support to complete these projects, thereby restoring confidence in the market and ensuring that homebuyers receive their units in a timely manner.

This initiative aligns with the broader goal of the government to promote affordable housing and improve urban infrastructure. By addressing the issues of stalled projects, the government hopes to create a more stable and vibrant real estate market, contributing to economic growth and social welfare.

In conclusion, the proposal by Union Minister Manohar Lal to set up a dedicated fund for stalled housing projects is a significant step towards revitalizing the real estate sector. It not only addresses the immediate concerns of homebuyers and developers but also contributes to the long-term goal of making housing more accessible and affordable for all segments of society.