Budget 2013: Maken for infrastructure status to affordable housing sector

MUMBAI: Union Housing Minister Ajay Maken indicated on Monday that affordable housing projects in big cities like Mumbai and Delhi may soon be given ‘infrastructure project’ status, a move that’s going to boost such initiatives as clearances from the state government will become a lot easier. Maken also suggested that the Maharashtra government should review its Floor Space Index (FSI) policy for Mumbai to encourage affordable housing, which can address the city’s housing problem to a large extent. “About 50% of Mumbai’s population lives in slums. In cities like Delhi too, a large number of people are either homeless or live in slums. If this has to change, we will have to build affordable housing even in premium locations of mega cities,” said Maken.

The minister said that the state government needs to review the FSI policy and make appropriate changes to encourage affordable housing in Mumbai “The state is the responsible authority to do so, and in our opinion, it should consider this option,” he added. Stressing the need for ‘infrastructure status’, he said, “This (affordable housing) can be treated as a sub-sector of the real estate sector and the sub-sector can be given the infrastructure status tag,” said Maken.

Earlier, inaugurating the International Conference on Governance of Mega City Regions, Adi Godrej, CII president said, “India has witnessed rapid urbanisation in the last two decades, and it is going to increase over the years. India will need $800 billion in the coming years towards urban development, out of which $350 billion will go towards building roads. Administrative, urban service delivery reforms and many more initiatives are the need of the hour and will form the core of our discussions.” In his inaugural speech, KC Sivaramkrishnan, Centre for Policy Research chairman said, “Mega cities contribute about 14-36% of the state GDP. The urban centres have also become very critical in deciding the political leadership.”