The Hindu Business Line : Cabinet to take up urban renewal mission this week

DEVELOPMENT MEETING: The Delhi Chief Minister, Ms Sheila Dikshit, flanked by the Sr Vice-President of FICCI, Mr Saroj Kumar Poddar, and the Union Minister of State for Urban Development, Ms Kumari Selja, at a meet on `Housing and urban development opportunities in the North Indian States' in New Delhi on Tuesday. — R.V. Moorthy

New Delhi , Oct.. 4

THE National Urban Renewal Mission (NURM) for integrated development of cities and towns would be taken up by the Cabinet this week, the Minister of State for Urban Employment and Poverty Alleviation, Ms Kumari Selja, said on Tuesday.

While addressing a FICCI conference on `Housing and urban development opportunities in North Indian States', the Minister said NURM would provide for Rs 5,500 crore in the first year alone to States to meet the gaps in housing and urban infrastructure. This is likely to be stepped up to over Rs 10,000 crore a year later.

The mission seeks to provide reform-linked Central assistance to select cities for infrastructure development and provision of basic services to the urban poor. It would focus on integrated development of basic services to the urban poor, including provision of security of tenure, housing, water and sanitation and convergence of schemes of healthcare, education and social security with emphasis on universal accessibility.

The Minister said the proposed National Habitat and Housing Policy, incorporating changes in the National Housing Policy, 1998, and inputs from all stakeholders would be ready by November-end. The Government is giving final touches to the policy framework and it would be presented at the Chief Ministers' conference next month.

Ms Selja said that in order to boost the housing stock, the State Governments need to adopt a proactive reform-based agenda including repeal of the Urban Land Ceiling and Regulation Act (ULCRA), amendments to the Rent Control Act to rationalise owner-tenet relationship, reduction in stamp duty, a computerised system of registration and simplification of procedures for granting building permissions and land use conversions.

She said development authorities must take steps to increase the supply of land so that no artificial speculation takes place. "They also need to reserve 20-25 per cent of the land at affordable prices for the economically weaker sections. The cross-subsidisation EWS/LIG flats with the MIG/HIG by the development authorities should be enforced through suitable by-laws," the Minister said, adding that possibilities of using land as a resource in mega and metro cities with relaxation of Floor Area Ratio for subsidising houses for the poor need to be explored.

Speaking on the occasion, the Delhi Chief Minister, Ms Sheila Dikshit, said the supply of land was the greatest constraint in the development of infrastructure facilities for the Commonwealth Games. This would require moving out to Noida and Gurgaon in the NCR region where infrastructure for the games, tourists and business would have to be matched by housing especially for the industrial and construction workers to prevent the formation and development of slums, she said.

Mr Saroj Kumar Poddar, Senior Vice-President, FICCI, suggested measures to remove the impediments that constrain the growth of the real estate sector in the northern Sates. These included speeding up land transactions, time-bound development of master plans, computerisation of land records, efficient and liquid markets for land and reduction in stamp duty rates among others.

Mr Sushil Ansal, Chairman, FICCI Housing & Public Works Committee, called for consistency of policy irrespective of the party in power, speedy sanctions of building plans and enlargement of the Urban Renewal Incentive Fund.

The biggest hurdle, he said, was the stipulation of getting the environmental clearance before the approval of plans. "This responsibility must rest with the States as also that of approvals from the state pollution control boards," he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page