Speaking at a virtual meet organised by the Builders Association of India (BAI), Hiranandani said that unless and until the government gives direct and indirect fillip to the construction, infrastructure and real estate sectors, India will not be able to achieve its target of USD 5 trillion economy.
He said scrapping of the bids for the Asia''s largest slum redevelopment project at Dharavi will further postpone development of the project.
"The slum policy was framed some 18-20 years ago and the concept was to complete the rehabilitation in 5-10 years. However, many process came into place and intervention at grass root level and it could not succeed. We therefore need a complete revamp of the existing slum rehabilitation policy and the entire financing mechanism should be restructured," Hiranandani said.
Further, he said that under the existing market conditions, especially after the COVID-19 crisis, it is extremely difficult for any developer to take up new projects.
"We are already worried about the on going projects. In such a scenario, very small development in high price segment will come up and there will be no large development, which is the vision of the government," he said.
According to him, industry body Assocham and Naredco have made representations to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, Housing and Urban Affairs Minister Hardeep Puri and Commerce Minister Piyush Goyal to give a direct and indirect fillip to the real estate sector.
He also emphasised on government allowing creation of funds on the lines of the Swamih Investment Fund where institutional investors and foreign funds can come forward to provide last mile funding.
"Further, for India to become Aatmanirbhar and to achieve the make in India target, the government will have to focus on strengthening its labour laws," Hiranandani noted.
Speaking at the event, Anand Gupta, Chairman, Housing and RERA Committee of BAI, said the government should hand over all SRA (Slum Rehabilitation Authority) projects and dilapidated buildings to a nodal agency for redevelopment
"The BAI has urged the government to hand over all projects under SRA and dilapidated buildings to a nodal agency for redevelopment. These projects should be put on contract basis to enable them complete in a time bound manner. In Mumbai, there are thousands of dilapidated buildings that await suitable redevelopment. Also, thousands of SRA projects await completion," he said.
A large population in Mumbai stays in slum areas without proper sanitation and other facilities available.
"The government needs to make SRA provisions favourable for builders to make housing available for slum dwellers," Gupta added. PTI PSK RAM
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI