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Jethmalani urges NRIs to shore up housing sector

A large number of fiscal concessions have been proposed for the housing sector by the ministry of urban affairs and employment to the finance ministry for its consideration in the next budget.

These include more excise concessions on building materials and lowering the customs duty on the import of machinery for housing purposes, Urban Affairs and Employment Minister Ram Jethmalani told the two-day Global Indian Entrepreneurs Conference which concluded in New Delhi today.

The minister was delivering the special address at the concurrent session on infrastructure, housing and real estate, organised jointly by the Federation of Indian Chambers of Commerce and Industry and the India Investment Centre.

In another major announcement, Jethmalani said 100 per cent foreign direct investment will be allowed in the housing sector with a three-year lock-in period. This is to ensure that investment is not withdrawn halfway through. Jethmalani said profits can be repatriated and ''the rate of return will be higher.''

The minister was hopeful that the Urban Land Ceiling Regulation Act will be repealed shortly.

He said most political parties have agreed on repealing the Act and the hitch in the process has been overcome. The necessary legislation relating to repeal of the Act will be introduced in the next session of Parliament.

Jethmalani said that the government is seriously considering induction of newer technologies, thereby implying that the import of pre-fabricated housing technology to India. He said that many companies from Italy and France are scouting India for bringing this technology which can revolutionlise the housing concept in the country.

In an hour or so these technologies can construct four to five houses. He wanted these opportunities be given to the non-resident Indian first. ''If you have the technology and willingness to invest in your motherland come forward at the earliest, position yourself to reap the emerging opportunities in housing,'' he said.

Referring to the ever increasing demand for housing in the country, which is presently estimated at 33 million in terms of shortages which require Rs 1.5 trillion outlay, Jethmalani said that it is a mind-boggling target and requires considerable investment from the private sector. In this regard he said that 90 per cent of whatever that the government has promised to the private sector has been implemented and the rest would be taken care of very shortly.

UNI

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