S.B. DangayachManaging Director
Sintex Industries Limited
Magnitude of the opportunity : Near Trillion US $ Market
Multiplier Effects:
National income
Capital formation
Jobs
Human dignity
Health quality of life
Enabling Environment conducive to flow of Organized Private Sector Role
Land policy
Rent control & efficient dispute resolution
Solution centric flexibility at micro level while following National Building Code & other provisions at macro level
FSI
Construction technology PPP, consortia formation
Country
Percentage of totalHousing stock
Percentage of socialHousing stock by
SocialRental
Private Rental
Pure PublicSector
Housing Assoc.
Limited profit/Non-profit)
UK 20 10 54 46
USA 3 29 31 69
Canada 6 28 34 66
Germany 6 51 18 Some
Republic of Korea 9 35 Some ..
Land use study
Myth of land scarcity
Augmenting land supply for housing
Carrot and stick approach for land – penalty for land holding and speculation to all segments including industrial, educational, charitable etc.
Biggest obstacle to rental housing so far.
Easy to overcome constraints by simple exemptions as given by Govt. of Gujarat.
(a) Any premises constructed on or after the commencement of the Bombay Rents, Hotel and Lodging House Rents Control (Gujarat Second Amendment) Act 2001(Gujarat 27 of 2001) (Hereinafter referred to as “the amendment Act”).
(b) Any existing premises which is self-occupied by the owner or vacant on or after commencement of the amending Act, and is let after such commencement.
Easy to do away with it for all prospective transactions all over the country.
Time to unfreeze
Meeting codal provisions with engineering advancements and economic feasibilities
Learn from past practices in India (like FSI of around 4 in Mumbai or substantial freedom in Hyderabad).
Learn from best practices in other parts of the world.
Use technology for setting up E-Courts for:
Registration of contracts
Virtual hearings by way of Skype or Video Conferencing
Delivery of judgments by way of internet
Look at learnings from SARFAESI Act working effectively for housing finance sector.
House insurance
Credible players
Lawyers
Professionally qualified property agents
Professionally qualified property managers
Several options while meeting technical and economic specifications
Giving flexibility to land owners to monetize their holdings so as to balance demand and supply.
Look at different formats like:
Hostels
Service apartments
Prefab houses
Homes that can be rented by hours, days, months or years.
Flexibility in building designs and construction
Flexibility in Rent Acts to balance interest as in case of automobiles
Tax equalization on owned or rented premises
Tax free bonds like Vikas Patra
Delivery of subsidy through Aadhar in cash while keeping LIG.
Open minded and out of box approaches
Conversion of land into demand and need based housing solutions
Boldness in thinking and action