New Delhi, Nov 11: The government on Tuesday, Nov 11 said it will not intervene in the real estate sector in near future, as the country's realtors are in direct talks with the Finance Ministry. ''The leading players are in direct talks with the Finance Ministry but there will be no direct intervention by the government in coming time,'' Secretary to the Urban Development Ministry M Ramachandran said here while talking to reporters on the sidelines of an industry event. However, the government is ready to play the role of a facilitator for creating affordable housing in a public private partnership (PPP) mode, he added. There is a huge shortage of housing units in the country, which cannot be solved unless private players come forward to build low-cost units.
''The migrant population to cities such as Delhi and Mumbai have been increasing,'' Mr Ramachandran said, adding that about 40,000 people migrate to Delhi every year whereas in Mumbai, 55 per cent of the people live in slums, he said. ''The basic question before us is to provide affordable housing to these people.'' Significantly, the government through Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has been instrumental in creating infrastructure in the cities which, in turn, would help the realty sector grow, the Secretary added.
He said a city with better drinking water facilities, solid waste management and sound urban transport could give a major boost to the real estate sector as well. ''We encouraged big cities to go for the Metro rail system and that is happening now with upcoming projects in Andhra Pradesh and Maharashtra and few other states,'' he said.
However, he reaffirmed that the recent liquidity crunch being witnessed in the market is not going to hamper projects in the urban development sector as bulk of the investment is made by the government, he said.