The Hindu Business Line : High-level task force on affordable housing set up

Housing force: The Union Minister of State for Housing and Urban Poverty Alleviation, Ms Kumari Selja, addressing a press conference, in the Capital on Monday. —

Our Bureau

New Delhi, Jan 28 On the heels of Cabinet approving the National Urban Housing and Habitat Policy, the Government has set up a high-level taskforce to look into various aspects of affordable housing, including innovative financial instruments to bring flexibility in the housing market.

The 11-member taskforce, under the chairmanship of HDFC Chairman, Mr Deepak Parekh, would also recommend measures to enhance the accessibility of Economically Weaker Sections (EWS) and Low Income Group (LIG) Groups to housing with suitable Government support.

Other members of the task force include Mr S Sridhar, Chairman and Managing Director of National Housing Bank, Mr Nasser Munjee, non-executive Chairman of Development Credit Bank, and Mr Rajiv Singh, Vice-Chairman of DLF Group, amongst others.

“The committee will submit its report within four months (May 14) suggesting various ways including public-private partnership model and other innovative schemes,” the Housing and Urban Poverty Alleviation Minister, Ms Kumari Selja, told presspersons here.

Currently there is a shortage of 24.7 million houses in the country and the number is likely to grow exponentially, according to the Ministry’s estimate.

“While a majority of the estimated housing shortage pertains to EWS and LIG, there are also people in the middle income group (MIG) who are facing the problem. I will, therefore, ask the committee to also look into the MIG demand while submitting its recommendation,” the Minister said.

Other terms

The other terms of reference of the taskforce includes examining the framework of regional planning and master planning with a view to enhance the supply of developed land; recommending measures for promotion of low cost building technologies; suggesting steps for enhancing the supply of rental housing; recommending legislative measures for accelerating the supply of housing units for the urban poor.

The committee would also examine various fiscal and special incentives for increasing the supply of houses for the economically weaker sections and low income families.

Meanwhile the Ministry is also in favour of pegging the proposed interest subsidy for LIG/EWS, at five per cent.

“The subsidy is likely to be channelised through NHB and HUDCO. The guidelines for the interest subsidy scheme are being formalised,” a senior Ministry official said.

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