Developers body moots housing SEZ; moots rethink on compulsory reservation for the poor

Realty Developers apex body Credai has expressed resentment at the centre's proposal for compulsory reservation of building 35 per dent of dwelling units for the economically weaker sections (EWS).

''Such a directive, without any incentives to the developer community, would only burden the open market buyers, mainly the middle income group, which will be forced to cross-subsidise the low income groups (LIG) or EWS'' said a Credai memorandum to union minister for housing and poverty alleviation, Ajay Maken.

According to the apex body president Lalit Kumar Jain the government should model the housing policy to suit the poor in such a way as to encourage developers to rush for it rather than compulsory steps that might be counterproductive and lead to a fall in the housing stock.

The demand-supply mismatch is one of the reasons for the market price movement and any further fall in the housing stock will only contribute to rise in prices, Credai claims.

"Central guidelines must have a systematic and rational approach on incentives, cross-subsidisation and be aimed at solving problems in a practical manner. For instance, reservation for EWS / LIG is not possible in every project across the board as maintenance costs will be a major issue," a Credai statement said.

It added, "High rise buildings with lifts and other amenities push up not just the cost of the project, but also the subsequent maintenance, which LIG or EWS families might not be able to bear.