The Minister of State for Housing and Urban Affairs, Kaushal Kishore urged the construction and real estate sector not to underquote prices during tenders for housing and affordable housing projects.
The minister emphasised that the industry often engages in this malpractice to secure government contracts for both mega-housing and affordable housing projects. However, this practice leads to problems such as incomplete projects and escalating costs towards the end.
Inaugurating the 16th Naredco National Convention, themed "Fostering Trust with Transparency: Pathway 2047," Kishore explained that builders tend to quote around 15 per cent less than the actual amount during the tender process. As completion nears, prices increase, leading to subcontracting issues that affect both builders and beneficiaries.
He urged Naredco and its senior functionaries to put an end to the practice of quoting lower prices, ensuring that housing projects, especially affordable ones, are completed without delays.
Additionally, Kishore called upon the real estate industry to ensure that the surroundings of housing and affordable housing projects are made completely "dust, smoke, and intoxication" free. This, he believes, will contribute to India's development in line with the Prime Minister's Vision for 2047, where India is projected to become a USD 30 billion economy.
Commenting on the budget proposals for 2023-24, the State Minister for Housing and Urban Affairs pointed out that providing a toxic-free environment to workers in the real estate sector is crucial. The goal of completing two crore houses in the next five years for the poor and downtrodden should focus on quality and sustainability, aligning with the present government's priorities. Approximately four crore houses in this segment have already been constructed in both urban and rural areas.
Speaking on the occasion, Secretary Ministry of Housing and Urban Affairs, Manoj Joshi, emphasised that critical reforms in urban planning are essential to achieve India's goal of becoming a USD 30 trillion economy by 2047. He urged Naredco to work closely with the government, providing critical inputs for the roadmap ahead.
Joshi suggested that, like the industry, which often seeks relaxation in corporate and capital gains tax, NAREDCO should offer pragmatic suggestions to achieve urban planning goals with a constructive approach.
Joshi also pointed out that the central government is encouraging all states to increase state property tax, as per the recommendation of the 15th Finance Commission. This move aims to incentivize state governments for housing and affordable housing projects. Progress in this direction is eagerly awaited, as the 16th Finance Commission will consider this factor when making necessary allocations in the future.
