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Four mn jobs projected in housing sector by 2015: ASSOCHAM

Written by: Staff
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New Delhi, Apr 25 (UNI) With increasing governmental focus on the Bharat Nirman Project, an investment of 670 billion dollars and generation of more than four million new jobs are estimated by 2015, according to a survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The paper on 'Real Estate Development', to be released soon, estimates that housing and real estate have the potential to grow at 14 per cent per annum to double its contribution to the GDP from the current level of less than 1 per cent.

The study estimates that the demand for dwelling units will grow to 90 million by 2020, which would require a minimum investment of 890 billion dollars.

The study also projects that the demand for dwelling units may go up to 80 million for lower middle and low income groups.

According to official estimates, the Indian housing sector at present faces a shortage of 20 million dwelling units for its lower middle and low income groups which will witness a spurt of about 22.5 million dwelling units by the end of the 10th plan period.

''Investment required for constructing the dwelling units and related infrastructure during the projected period would be to the tune of 670 billion dollars and 890 billion dollars. This would mean an investment of 34 billion dollars to 45 billion dollars per annum during the period,'' ASSOCHAM President Anil K Agarwal said.

Emphasising that the housing and real estate sector is considered as one of the major factors to propel national growth with its current size of roughly 14 to 15 billion dollars, Mr Agarwal said, the sector is the second largest employer next only to the agriculture and textile sector.

Easy financing and growth of multinationals and Indian companies in IT, ITEs, BPO and FMCG sectors will fuel demand for housing in the next 10 to 15 years a great deal, the industry chamber said.

High salary structures and creation of new jobs in an around metro cities will enable people to pay high EMIs to have their own dwellings, he added.

The study has suggested a multi-pronged strategy to the government to ensure that the projected growth of housing and real estate in terms of dwelling units and their investments is achieved.

The strategy also called for conferment of infrastructure status on the housing sector to enable it to have easy access to low cost institutional funds and allowing this sector to tap long term funds.

Setting up of real estate mutual funds should be encouraged for the housing sector with certain tax incentives. In most of the developing economies, the suggested system is in vogue and there is no harm if India follows it, the chamber said.

A regulatory framework should also be set up for real estate development which should encourage partnership between the government and private sector for providing basic amenities such as water, sanitation, sewerage, transport and electricity.

Pointing out that the real estate developers have to obtain as many as 33 clearances before putting up a township from various agencies belonging to the centre and states, the study suggested setting up of a single window system in which monitoring should be done from representatives of state governments and nominees of the central government to ensure smooth clearances for real estate developers.

UNI CS SS GC1541

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