Refrain From Malpractices To Secure Govt Contracts: MoS Kaushal Kishore To Builders

The Minister of State for Housing and Urban Affairs Kaushal Kishore recently said that builders often engage in 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 Naredco National Convention, themed "Fostering Trust with Transparency: Pathway 2047," Kishore said 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 also urged the construction and real estate sector not to underquote prices during tenders for housing and affordable housing projects.

The minister asked 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, he 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 minister said 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 5 years for the poor and downtrodden should focus on quality and sustainability, aligning with the present government's priorities. Approximately 4 crore houses in this segment have already been constructed in both urban and rural areas.

Speaking on the occasion, Secretary of the 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.

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.