Budget 2013: NAREDCO asks for infrastructure status to housing sector

NEW DELHI: The National Real Estate Development Council ( NAREDCO) has suggested that the government should confer infrastructure status to the housing sector in the Budget 2013.

NAREDCO said that housing development companies are engaged in undertaking large scale urban development projects including purchasing raw land and developing it for the purpose of construction of houses, multi-storied buildings, creation of infrastructure and social facilities such as laying of roads, systems for water supply, water treatment, sanitation and sewerage, solid waste treatment and also to create educational, medical and recreational facilities as an integral part of development of satellite townships, in accordance with the elaborate rules and regulations and with the specific approval from the State Governments, and such projects tend to reduce the pressure on existing cities by providing low priced alternatives and value for money to the customers.

NAREDCO further said that while according approval, the state governments specifically direct that these infrastructure facilities shall ultimately be handed over and shall not remain with the developer.

"After purchasing agricultural land, these companies provide and create most of the infrastructure facilities mentioned in the Explanation. It is only by creating all these infrastructure facilities that the raw land gets converted into developed land, fit for construction of houses and multi-storeyed buildings for residential and commercial purposes, thus augmenting the housing stock of the nation. It is presumed that the activities of these companies are already covered by the definition of 'infrastructure facility' but the position has become debatable as such activities are not covered by a specific clause," NAREDCO added.

NAREDCO therefore suggested including Housing Sector in the Infrastructure sector. It suggested that in the definition of 'infrastructure facility' the following clause may also be added:

"An integrated township and group housing development on area more than 10 acres involving provision of residential, educational, medical, community, commercial or institutional buildings and creation of required facilities including roads, water supply, water treatment, sanitation and sewerage systems and solid waste treatment and management systems".

NAREDCO was of the view that this will meet the long outstanding demand of housing to be treated as Infrastructure.