Minister 'apprehensive' over FDI in real estate

Hyderabad, Nov 17 (UNI) Kerala Housing Minister Binoy Viswam today expressed apprehension over the Centre's policy to promote Foreign Direct Investment (FDI) in a big way into integrated townships and real estate under its New Urban Housing and Habitat Policy.

Noting that several large financial firms and private equity funds had targetted the real estate sector, he feared that the Centre's decision to liberalise FDI policies might lead to exploitation by multinationals with land already becoming 'scarce.' Making it clear that the Left Democratic Front (LDF) government was not against private sector investment per se, he said sufficient safeguards should be built in to protect 'national interest.' The concerns of the poor had not been adequately addressed to in the 'era of Gloablisation,' he opined, while addressing the national Conference on Housing and Human Settlements here.

Kerala had realised the importance of Public-Private Sector Partnership (PPP) to meet the increasing demand for housing as government alone with its scarce resources was not in a position to meet it.

Informing that a high-level task force had been constituted for drafting an Integrated Habitat Housing Policy in the state, he urged the Centre to encourage PPP in housing through approporiate interventions and also by providing fiscal incentives.

Restructuring of the State Housing Board and Kerala State Nirmithi Kendra was being taken up the as in Andhra Pradesh and Karnataka, he added.

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