Calls for simplified land acquisition norms.
The task force on Affordable Housing set up by the Ministry of Housing and Urban Poverty Alleviation has suggested a broader definition for “affordable housing” to cater to the housing demands of various sections of the society.
Headed by HDFC Chairman Deepak Parekh, the task force, in its report submitted to the ministry today, suggested different parameters for defining affordable housing for medium- and low-income groups. The task force called for simplified land acquisition norms and conversion of agricultural land rules for developing the affordable housing segment.
It has suggested the introduction of a 0.5 per cent levy on all central government taxes for a dedicated shelter fund. The fund, to be managed by National Housing Bank, should receive a budgetary support of equal amount so as to make a long-term impact on affordable housing, the task force noted.
A series of fiscal measures, including reduction of reduction of stamp duty rates, registration charges and income tax benefits for developers engaged in affordable housing projects have been suggested.
The task force was set up on January 15, 2008 to look into various aspects of providing affordable housing.
The central government, as part of the economic stimulus package offered to counter the slowdown in various industrial sectors — including real estate — has already announced reduced bank loan interest for affordable housing.
