Smart Cities, AMRUT, Housing for All critical for India: Deepak Parekh

NEW DELHI: There are enough funds available in the country to finance smart cities and other urban transformation projects such as AMRUT and housing for all, Deepak Parekh, chairman of mortgage lender HDFC said on Thursday.

Besides, if needed, funds can be sourced from outside the country as well.

Prime Minister Narendra Modi on Thursday launched the Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All in urban areas.

“These are the three most critical projects for the future of India,” Parekh said.

Parekh said that housing for the low-income groups and the economically weaker section (EWS) must be given due attention, since there is a subsidy attached to the two segments.

He said that there was a dearth of affordable homes in India and that the builders needed to change their strategy and build smaller and more affordable homes.

“There is a subsidy for EWS and LIG housing; we should all concentrate on that. Housing becomes affordable with lower interest rates. Irrespective of market interest rates, there is an inherent subsidy; they’ll discuss how this subsidy is going to be paid to the banks and financial institutions,” he said.

Rueing the fact that the developers build the housing, but the municipality lags in terms of creating relevant physical infrastructure, Parekh said that infrastructure must come first.

"There is a mismatch between housing and infrastructure. Ideally, the infrastructure must come first; this will provide the habitants with essential amenities like water and sewage and enable them to live there," he said.

Real estate development bill will be discussed tomorrow (Friday) in Mumbai. The performance of builders should be judged, and erring builders should be blacklisted, Parekh said.