'Deregulate housing mkt for fast urban growth'
Deputy Governor of Reserve Bank of India Rakesh Mohan on Sunday sought deregulation of the urban land and housing market to attract investment in the urban sector.
By PTI |
NEW DELHI: Deputy Governor of Reserve Bank of India Rakesh Mohan on Sunday sought deregulation of the urban land and housing market to attract investment in the urban sector.
"The urban land and housing markets have been seriously distorted for over 30 to 40 years in India. Both are in great need for deregulation, particularly the repeal of the Urban Land Ceiling Act in the states where it still exists," he said while presenting a paper at NCEAR workshop on Sunday.
In a joint paper with Shubhagato Dasgupta, he said, with the magnitude of urbanisation expected in India in the next 30 years, with or without acceleration of the process, city managements would have to manage and cope with large financial requirements for all kinds of investment for infrastructure service provision.
"Given the overall fiscal constraints at present, resources will have to be raised increasingly at the local level," said RBI Deputy Governor adding other rigidities in the land market, related to archaic building bye-laws and taxing restrictions needed to be addressed.
Referring to UN World Urbanisation figures, he said, the population of Mumbai was projected to reach 22.6 million, followed by Delhi (20.9 million), Kolkata (16.8 million), Bangalore (8.5 million), Chennai (8.1 million) and Hyderabad (7.5 million) by 2015.
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It will pose a daunting task for urban policy makers and urban infrastructure service providers, he said adding that there would be 70 cities with more than a million population by 2030 in the country.Download
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