Jaipal for interest rate discount for housing up to Rs 30 lakh

Written by fe Bureau | New Delhi | Updated: May 30 2009, 06:20am hrs
Urban development minister Jaipal Reddy, who assumed office on Friday, said that he will impress upon the Prime Minister and finance minister to provide more concessions to the housing sector. Reddy said that he will propose to extend the interest rate discount for housing up to Rs 30 lakh. He also appealed to the developers to concentrate more on mid-income and low income housing.

Reddy said that the slowdown can be reversed if developers turn to mid-income housing from high-end construction. He said that developers should realize that there is profit at the bottom of the pyramid also. Developers are not being asked to give houses for free but for giving it out at reasonable prices.

State governments should release more land so that more construction activities can take place, he said. When asked if bidding is the right way to give out land as it escalates prices, he said, if land is awarded through any other means it could create controversies.

In a years time, Reddy wants to put in place a real estate regulator in Delhi. He wants to be careful while forming the law because the impact could be negative for the end consumer as well as the sector if the regulations are not carefully drafted. He expects the other states to follow suit after real estate legislations become effective in Delhi.

Reddy has made it clear that Commonwealth games projects will be finished on time and funding for it is not an issue. The revised budget for Commonwealth games is Rs 5,000 crore.