NEW DELHI: The minister of state for housing and urban affairs Kaushal Kishore on Friday urged the construction and real estate sector not to underquote prices during tenders for housing and affordable housing projects.
The minister emphasized that the industry often engages in this malpractice to secure government contracts for both mega housing and affordable housing projects. However, this practice leads to problems such as incomplete projects and escalating costs towards the end. As completion nears, prices increase, leading to subcontracting issues that affect both builders and beneficiaries.
He was speaking at the 16th Naredco National Convention.
Kishore urged NAREDCO and its senior functionaries to put an end to the practice of quoting lower prices, ensuring that housing projects, especially affordable ones, are completed without delays.
He also urged the real estate industry to ensure that the surroundings of housing and affordable housing projects are made completely “dust, smoke, and intoxication” free.
Manoj Joshi, secretary, ministry of housing and urban affairs, said that the central government is encouraging all states to increase state property tax, as per the recommendation of the 15th Finance Commission. This move aims to incentivize state governments for housing and affordable housing projects. Progress in this direction is eagerly awaited, as the 16th Finance Commission will consider this factor when making necessary allocations in the future.
National Real Estate Development Council (NAREDCO) urged the union government to consider rental housing policy as well as national and state master plans for construction and real estate sector.
Niranjan Hiranandani, chairman, Naredco, said that in developed country like USA, the rental housing policy is so successful that 50 percent of its populace prefers to live in in such utilities the occupant survives and if India begins preparation to adopt such a model it would be economic as well as prudent because those that cannot afford their own housing units can sustain their livings in rented properties.
G. Hari Babu, president, Naredco, said that India critically needs the All India Master Plans and All India State Plans to develop Green Field Cities by the time it grows into 30 Trillion Dollar Economy by 2047 and even earlier as that would be the primary requirement of Indian Real Estate and Construction Industry for the growth of the country.
