The government is working on introduction of closure laws and the creation of a secondary mortgage market in real estate. The new laws will be relevant only for Delhi and other Union Territories, as land is an item in the state list.
Union minister for urban affairs and employment Ram Jethmalani said yesterday in Calcutta that these would be a part of the key reforms the Centre is planning in addition to the repeal of the Urban Land Ceiling Act (ULCA).
Jethmalani was addressing a meeting organised by the Bharat Chamber of Commerce titled "Urban development: Ideas for the new millennium".
He said the introduction of these new laws would entail amending existing statutes. He, however, did not elaborate upon the statutes that would be amended. Pointing out that the nation was short by 30 million houses, he said the government was aiming at building 2 million houses every year.
This financial year the target is to build 12.5 lakh houses in the rural sector and 7.5 lakh houses in the urban sector.
The minister also pointed out that while formulating the housing policy, the private sector must be roped in for its services, as the government will not be able to carry the burden of building houses alone.
Citing the example of China, he commended the fact that the government had thrown open the housing sector to private business, and it is the only economy that is unaffected by the current economic crisis that has engulfed Asian economies. Remarking that the government was morally and constitutionally bound to repeal the Urban Land Ceiling Act, Jethmalani pointed out that those who were trying to stymie the repeal of the Act were unwittingly helping land sharks who had bought real estate at a high price and did not want prices to stabilise.
