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Repeal ULCRA, demands BJP's economic panel

The Bharatiya Janata Party's economic affairs committee has recommended the repeal of the Urban Land (Ceiling and Regulation) Act by an ordinance, according to Urban Affairs and Employment Minister Ram Jethmalani.

Addressing a meeting of the Parliamentary Consultative Committee for his ministry in New Delhi on Tuesday, he said the Act had failed to achieve its desired objectives. Unless the law was repealed, the private sector would not be able to participate in building houses for economically weaker sections and lower income groups, he added.

Jethmalani said that except Bihar, all other states were supportive of the proposal to repeal the Act.

He also sought the co-operation of members of Parliament in allowing foreign direct investment in the housing sector apart from their approval of the new housing policy.

Jethmalani told the members that the foreign builders were ready to come to India and build houses from locally generated materials like flyash.

The committee also unanimously recommended repealing of the said Act, which is pending before the Standing Committee.

Explaining the salient features of the new housing and habitat policy 1998, Jethmalani said it provided for active private partnership with public and housing financial institutions in which the role of the government would be that of a facilitator.

With no budgetary provision for housing in the currency year's Budget, the government would provide land to private housing industry to build houses including commercial complexes in 50 per cent of such land and plough back parts of their earnings in building free of cost house for the poor, he explained.

The minister informed the members that laws were being changed to give impetus to housing industry in a big way. In this connection, he said that with the fiscal concessions provided to housing industry in the last Budget and bringing it on par with infrastructure, about 85 per cent of the demands of housing industry were conceded.

The members were appreciative of the policy of the government and hoped that it would succeed in the mission to provide two million houses for the poor over and above the houses being built by various public and private agencies annually.

UNI